Case Study Analysis of Nike and Google
Question no 1: What are the pros. Cons and risk associated with Nike`s core marketing strategy? Answer:
Nike’s Core Marketing Strategy:
Nike's excellence marketing strategies are their energy to achieve their market goals. Nike believes the "pyramid influence" that the preferences of a small
percentage of top athletes influence the product and brand choice. So Nike contracted with many athletes' spokesperson, professional teams and college athletic
teams to advertise and promote their products to customers. One renowned example of Nike marketing strategy is during 2008 Summer Olympics in Beijing.
Nike received special permission from the International Olympic Committee to run Nike ads featuring Olympic athletes during the games. In addition, Nike
sponsored several teams and athletes, including most of the Chinese teams’ and11 of 12 high profile members on the US men’s basketball teams. Nike seriously
pays attention on the technology producing, design and selling such as e-commerce, high-tech running shoes, Nike+ with Apple, etc. Nike outsourcing their
products most of the factories are located in Asia such as China, Indonesia and India. Pros and Cons of Nike Core Marketing Strategy:
Pros:
Nike put heavily proportion in their marketing strategies and products deign. In order to sustain their dominance in the industry and retain their competitive
advantages, Nike actively responds to the market trends and changes in consumer preference by adjusting their marketing strategies, the mix of existing product
offerings, developing new products, styles and categories, and influencing sports and fitness preferences through various marketing strategies. Now we discuss
the pros of Nike's core marketing strategies and related them to the relevant marketing theories help us to depth understanding. Nike is very much efficient in its
distribution of products. More efficient distribution means more sales. By delivering right thing at a right time to customer, Nike is building beneficial customer
relationship and gaining customer satisfaction and loyalty. Nike distributes its products on different level basis. The high premium products are given to a
certain distributors while leaving the low priced to be sold at highly discounted price at the retail stores such as Wal-Mart.
The e-commerce program of Nike is the first time a company has offered mass footwear through the Internet and provides competitive advantages to Nike. Nike
website is very well designed and it is very easy and comfortable for a customer to look for the desired footwear. As stated earlier that Nike made contracts with
world’s most renowned Sports celebrities like Tiger Woods etc. this creates high level of awareness among customers and people about what Nike is all about.
Their aggressive advertising campaigns, celebrity endorsements and quality products all enhance their brand and image. Nike targets on the consumers who
care more about the utility and quality of the products rather than the price. That is why Nike sets higher price of its shoes than its competitor like Adidas.
The customers who consider a product to be high quality are likely to pay the high price more often and consistently. Once the consumers develop the product
intimacy, they come to associate their person with the products and will pay whatever price quoted on the products. Most of the consumer of Nike's products is
mainly athletic. Nike is the master of segmentation, their segmenting market typically target's athletes, both women and men from the age 15 to 35. Nike's
targeting market is active people who enjoy high quality sporting goods, especially footwear.
Nike focuses on creating premium consumer experiences on product innovation, brand leadership and elevated retail presence. Nike targets on these customers
by agreements between Nike and athletic teams, college's athletic teams for products sponsorship and eventual promotion to the members of these teams. Even
though others are likely to buy the products, Nike focuses on the athlete more than any group of individuals even though it also target on the youth. This
strategy is especially successful because of its ability to reach a large number of athletes.
Cons:
However, unlike many companies, Nike does not promote its efforts. One brand consultant says that, “Nike has always been about winning. How is
sustainability relevant to its brand?” Nike executives agree that promoting an eco-friendly message would distract from its slick high-tech image, so like
recycling old shoes into new shoes are kept quiet. One other con of the Nike brand is that the price of Nike products are quiet expensive as compare to other
global competitors. So, instead of buying such expensive product customers go for other competitive brands like Adidas. One of the Nike's core marketing
strategies is depend on a group of athletes to promote its products.
Nike prefers to have high profile athletes as its endorsers, like Runner Steve Prefontaine, Michael Jordan, and LeBron James. The athletes had positive and
negative influence on changing consumer preferences, changes in consumer tastes and priorities, and also consumers' buying decisions. The action and attitude
of Nike's chosen spokespersons could bring the impacts on its promotional strategies. For instance, it will attract the athlete's idolater to purchase the products if
Nike using a popular athlete as endorser. On the other hand, if the athlete were caught in drug addicted or any immoral attitude, it will affect the customers not
to buy Nike's products, thus will affect Nike's sales, revenue and profit.
Risks:
The major risk associated with Nike at present is of competitors. The competitors are increasing day by day and yet more development is needed in its product
line.
Question no 2: if you were Adidas, how would you compete with Nike? Answer:
The very first thing I would do would be reducing the prices of the products without compromising on the quality. Increasing the advertisement and promotion
would be my next strategy. The promotion would be globally. Overpay what Nike is paying the best athletes in the world to endorse their shoes. The product
would be advertised by the national sports heroes. There would be selling promotions. Product line depth would be more. I would check the availability of my
products in each outlet. Huge variety of ladies sports items would be included. Next, I would target the school educational attending pupils as well. The
development of a product line of smart shoes will build on this reputation and show buyers that Adidas is humorless about innovation and using technology to
advance athletic accomplishment.
The line of smart shoes combines a microprocessor or implanted controller, sensors, and tiny motors along with memory and battery. The sensors work to
steadily monitor, measure, and supply data looking at the landscape, impact of each step, athlete's body temperature, environment temperature, and athlete's
heart rate. This data can steadily be fed to a microprocessor which agent motors to adjust padding and airflow within the shoe. Wireless GPS system is another
feature on the small computer production line that enables runners to decide their accurate location, distance traveled, and speed from the shoe's GPS by
wearing a small wireless GPS wrist strap.
The shoes implanted memory can keep data about workouts such as average heart rate, body temperature, calories burnt and force of each step. For situation, in
basketball the micro can watch how high the athlete jumps and how hard of a landing they make. As many athletes demand goods created that can deliver both
watching and accomplishment bettering capabilities, they will find Adidas the solution thus leading to much higher revenue, profit, and market share in sports
that Adidas already leads and in sports where Adidas lags in revenue, profit, and market share.
* Aim high; think BIG, take risks * A healthy disregard for the impossible
Question no 2: What next for Google? …….? Answer: Google goal is to reach as many people as possible on the web, the more advertising the Google can sell.
Google new products also accomplish this goal and make a web more personalized experience. Google has not spent a lot of money on traditional
advertisements. Recent efforts have targeted Microsoft consumers’ with appeals to use Google’s ” Cloud Computing” applications instead of MS Office or
Windows. “Going Google”, a user can access all of the documents and applications via a web browser instead of any software. It is a good initative.