...Strategic Marketing Assignment Topic You have been provided with a case study of NIKE (see Appendix 1). In your case report, identify three or four Marketing Challenges covered in this subject and address how those challenges can be met using the principles developed in this subject. Please ensure to use academic in-text references adequately to support your suggestions. Report writing format should be used. Word count: 2582 Executive Summary In this report, Nike’s case will be studied with reference to the marketing challenges the company has faced. The methods regarding overcoming those challenges will also be studied in this case. Nike has grown from selling shoes from a car boot in 1964 to one of the world’s bestselling sports shoe brands by 1974. Once the brand was established as bestselling, there were marketing challenges to overcome. Some of those marketing challenges faced by the company will be discussed in this report. The first challenge is the perceptions of people that Nike shoes are produced by low paid labor that have to work in poor conditions to get paid. The second marketing challenge faced by Nike is that initially the celebrity endorsement worked wonders for Nike, but since the 1990s, star selection has been less than perfect. Another marketing challenge faced by Nike is that with the change in generation, the company was not able to carry forward its image of best sports shoes brand. The issue at hand is that the company must find ways to overcome these...
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...Nike Case Questions 1. In the United States, what is Nike’s: a) Brand image, and b) sources of brand equity? a) In the United States, Nike’s brand image is built on being a high-performance, innovative and aggressive brand. The company associates the brand with top athletes through sponsorships. Since inception, Nike has placed performance as a top priority for the brand. Through designing high performance shoes and apparel, as well as sponsoring high-profile athletes and teams the brand has developed a reputation as being high-quality. Nike’s high tech products have allowed the brand to be perceived as innovative in the minds of consumers. Nike is continually introducing new products to the sports market as a way to improve performance. Through high performance and innovation, Nike has been branded as arrogant as the company has a high regard for the spirit of competition and portraying a rebellious spirit. b) Source of Brand Equity Description Logo Nike’s logo is a check mark. It is commonly referred to as the “swoosh.” As of 2000, 97 percent of American citizens recognize the brand logo. Nike has been seen as aggressive in the overabundance use of the “swoosh” with the symbol being placed on shoes, jerseys, hats, billboards and soccer balls across the globe. This ubiquity has been criticized as diluted the “swoosh”. Advertising Advertising has allowed Nike to portray its rebellious spirit and “nasty boy” image. However, this approach in advertisement has...
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...any number of actions which a company might take that would be perceived as socially irresponsible, and more and more companies are finding that if this does occur and is found out, the company and its shareholders suffer. A controversy involving the Nike Corporation shows how a company can be affected by situations they may not be able to fully control. The athletic apparel industry in which Nike is involved is a major money maker in the United States, but the fact that none of the factories are located in North America has brought some heat to the company. “Nike controls more than 40 percent of the U.S. market for sports related goods, but doesn’t have a single sneaker factory in this country” (Miller, 1995). Nike continues to make millions of dollars yet exploits workers overseas by paying them very little, while requiring long hours without overtime pay in factories that are not up to American standard. “Nike subcontractors employ nearly 500,000 workers in plants in Indonesia, China and Vietnam” (Saporito, 1998). The exploitation of workers in Third World countries, where the majority of Nike’s labor is done sparks a controversial issue. People question why Nike continues these practices. According to “Just do it, Nike,” Nike seems especially fond of doing business in...
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...CASE STUDIES NIKE MAYO CLINIC CASE STUDY: NIKE Q1. Nike would like to increase its share of the athletic shoe market. Define the management decision problem. Ans 1. The management decision problems are: What should Nike do to increase its share of the athletic shoe market? Q2. Define an appropriate marketing research problem corresponding to the management decision problem you have identified. Ans 2. Market Research Problems are: 1. Which market to focus more (soccer, golf or any other) 2. How to maintain its brand equity 3. How to change the perception among the consumer about its image of being a smaller innovative company. 4. What demographic, psychographic, and product usage characteristics differentiate Nike loyalists from consumers loyal to other brands Q3. Develop a graphical model explaining consumers’ selection of a brand of athletic shoes. Ans 3. 1. Deciding kind of athletic shoe. 2. Compare different brands for comfort, design and price. Choose the best brand according to above criteria. Q4. How can qualitative research be used to strengthen Nike’s image? Which qualitative research technique(s) should be used and why? Ans 4: Focus groups with consumers in the target market would be very helpful to identify the salient image characteristics and the general perceptions of Nike’s image. Depth interviews with top athletes would be useful to identify how athletes define performance in sport shoes and what emotions...
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...Murad Tahirov Marketing Spotlight-Nike The Nike story begins with its founder, running enthusiast Phil Knight. In 1962, Knight started Blue Ribbon Sports, the precursor to Nike. At the time, the athletic shoe industry was dominated by two German companies, Adidas and Puma. Knight recognized a neglected segment of serious athletes whose specialized needs were not being addressed. The concept was simple: Provide high-quality running shoes designed especially for athletes by athletes. Knight believed that "high-tech" shoes for runners could be manufactured at competitive prices if imported from abroad. Without much cash to do any advertising for his products, Knight crafted his "grass roots" philosophy of selling athletic shoes: Speaking to athletes in their language and on their level; sharing their true passion for running; and listening to their feedback about his products and the sport. Each weekend Knight would travel from track meet to track meet – both high school and collegiate competitions--talking with athletes and selling Tiger shoes from the trunk of his green Plymouth Valiant. The company's commitment to designing innovative footwear for serious athletes helped it build a cult following that rapidly reached the American consumer. By 1980, after just under two decades in the business, Nike had become the number one athletic shoe company in the United States. Unfortunately for the company, this wave of success was soon to crest as rival companies...
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...University of Halmstad School of Business and Engineering “Master of Science in International Marketing” Master’s degree level Dissertation Assessing Youth’s Buying Behaviour towards Sports Shoes (A Case Study of Nike) Dissertation in “International Marketing”, 20 Swedish credits (30 ECTS) Author: Srungaram Narsimha Vamshi Krishna Supervisor: Venilton Reinert Professor: Svante Andersson S.S.No. 810609-3035 Contents Pg No. 0 Acknowledgement Abstract 1. Introduction and background 2. Purpose of the study 3. Literature review a. Types of consumer’s buying decision behavior b. Complex buying behavior c. Dissonance d. Variety 4. The buying decision process a. Introduction of buying decision process b. The buying decision process c. Evaluation of alternative d. Purchase decision e. Post purchase behavior 5. Theoretical frame work a. Consumer involvement theory 6. Consumer behavior models a. Introduction and Intergradations of three models b. Hierarchy needs of consumer behavior model c. Consumer behavior model d. Lens model 8. Nike’s Introduction (Nike’s Case Studies) a. Financial performance b. Employees c. Contract factories d. Nike branding 9. Methodology of the Study a. Introduction b. Method c. Types of research d. Research approach e. Population and sample f. Instrument to collect the data g. Research validity and reliability 10. Analysis of the study a. Graphical analysis 3 4 4 8 8 10 10 10 11 10 10 11 11 12 12 12 12 14 14 15 16 18 19 19 20 20...
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...associated with arguably the greatest footwear and apparel company of all time. Nike has become one of the most recognizable companies in the entire world in a period of only 25 years. With a logo that rivals McDonald’s Golden Arches, endorsements from the likes of Michael Johnson, and a leader that created a Fortune 500 company from a waffle iron, Nike not only dominates their industry, but also has become a major trendsetter in American popular culture. However, criticism has accompanied this success. From questions about its labor practices in Southeast Asia to defending itself against charges of corporate invasion of college campuses, Nike has shown it is not immune to the challenges faced by many global corporations. Principle Products and Services From the time University of Oregon Coach Bill Bowerman designed the first modern long distance running shoe to today when Nike’s products include everything from sunglasses to softball bats, Nike has continually been a revolutionizing force in the industry. Founders Phillip Knight and Bill Bowerman began with 200 shoes in 1963. By 1979, only one year after Nike, Inc. began, it was the number one running shoe with nearly 50 percent of the U.S. market revenues (Appendix A). For over 17 years, one of Nike’s principle products has been the Air Jordan basketball shoe. In 2002, Nike offers a variety of products including shoes, apparel, and equipment, has 15 Nike towns, and provides the apparel for many college teams (Appendix B). Primary...
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...Video Case 2.1 Starbucks: Staying Local While Going Global Through Marketing Research 1. Students should search an Internet database using the key words “coffee”, “coffee shops”, “coffee consumption”, etc. to identify the relevant data. They should also visit Starbucks’ web site (http://www.starbucks.com). 2. Starbucks can determine the answers to such questions by conducting qualitative research. Both focus groups and depth interviews can be useful. Focus groups can generate new insights and ideas, while depth interviews can uncover hidden motives, values, and beliefs. Using qualitative research, the company found that consumers are looking for a coffee house experience that elevates coffee drinking to an art form and coffee houses to the place where Americans choose to relax and socialize. Through extensive marketing research studies, Starbucks created a place where you can meet and drink good coffee that did not resemble work or home, but fell somewhere in between. 3. Personal interviews at representative coffee shop locations of Starbucks and other chains could be used to determine the image coffee drinkers have of Starbucks and other coffee shop chains. This method offers several advantages: complex questions can be asked; it is very good for the use of physical stimuli; very good sample control; high quantity of data; and very good response rate. 4. Personal observation method could be used at a sample of Starbucks coffee shops where the new coffee is...
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...References Executive Summary As Prahlad and Hat point out, the economies of vastly populated countries such as China, India,and the former Soviet Union present a profusion of consumers and immense growth potential for multinational corporations. The trick is for senior management to fully understand that this market possibility exists and that tapping into it may require a radical departure from the traditional, developed-economy mindset. As Nike’s financial record indicates, market saturation and intense competition in Tier One economies has squelched Nike’s growth trajectory. While the Swoosh continues to penetrate typical Western markets, tapping into the increasing numbers of “middle and lower class” consumers in emerging markets could offer a phenomenal expansion opportunity if the firm can create the right business model. In addition, beyond the potential economic benefits from this venture, Nike’s World Shoe Project also offers a credible response to the labor issues that have buffeted the company, and leverages their efforts to minimize the environmental impact of their production activities. • Introduction/Background of the study The words “Just make me the shoe!” echoed down the boardroom table to Tom Hartage a 17 – year veteran of the running shoe company, Nike Inc. Tom Clarke, president of the company in 1998, had attended the meetings, seen the presentations and reviewed the numbers related to the market potential of China a rough gem with...
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...Video Case 2.1 Starbucks: Staying Local While Going Global Through Marketing Research 1. Students should search an Internet database using the key words “coffee”, “coffee shops”, “coffee consumption”, etc. to identify the relevant data. They should also visit Starbucks’ web site (http://www.starbucks.com). 2. Starbucks can determine the answers to such questions by conducting qualitative research. Both focus groups and depth interviews can be useful. Focus groups can generate new insights and ideas, while depth interviews can uncover hidden motives, values, and beliefs. Using qualitative research, the company found that consumers are looking for a coffee house experience that elevates coffee drinking to an art form and coffee houses to the place where Americans choose to relax and socialize. Through extensive marketing research studies, Starbucks created a place where you can meet and drink good coffee that did not resemble work or home, but fell somewhere in between. 3. Personal interviews at representative coffee shop locations of Starbucks and other chains could be used to determine the image coffee drinkers have of Starbucks and other coffee shop chains. This method offers several advantages: complex questions can be asked; it is very good for the use of physical stimuli; very good sample control; high quantity of data; and very good response rate. 4. Personal observation method could be used at a sample of Starbucks coffee shops where the new coffee is...
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...Global Brand Management – Nike’s Global Brand Dr. Deanne Larson e-mail : larsonelink@aol.com Abstract: The purpose of this paper is to outline and analyze the ingredients of a successful global brand which has and can continue to sustain its global marketing goals. The brand analyzed in this paper is Nike, one of the top sporting goods manufacturers in the world. As part of the analysis of Nike’s global brand, a proposed brand strategy and supporting marketing program will be recommended using the components of Interbrand’s rating and ranking evaluation. The analysis will use components of Interbrand’s approach as the basis of understanding Nike’s current strategy and standing and be used as input into the recommended brand and marketing strategy. Keywords: Interbrand, brand market strategy, global marketing, brand association, global brand management Reference: Reference to this paper should be made as follows: Larson, D. (2011) “Global Brand Management – Nike’s Global Brand”, The ISM Journal of International Business, ISSN 2150-1076, Volume 1, Issue 3, December 2011. Biographical Notes: Dr. Larson is an active management practitioner and academic and a PhD candidate at the International School of Management. Dr. Larson’s other doctoral degree is a Doctorate of Management in Information Technology Leadership. Her doctoral dissertation research focused on a grounded theory qualitative study on establishing enterprise data strategy. She holds Project Management Professional...
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...Hypotheses on Attitude Formation We will first start to discuss the fourth hypothesis of the attitude-toward-the-ad-model, the independent influence hypothesis. We choose one of the “Got Milk” commercials with the famous actress Salma Hayek to confirm or contest the theory, in order to create a deeper understanding of the attitude formation model. The “Got Milk?” campaign had a great success in telling moms that milk is nutritious and healthy for their children. Milk should be an essential part of their children’s diet, because it contains a wide range of nutritive substances. In the commercial, Salma Hayek arrived home from a fancy night and realized she has no milk for the morning. So, she leaves the house on a wild chase to find some milk. All the stores she visited were either out of milk or closed. Eventually, after unavailingly trying to milk a cow herself, she finally stopped a milk truck and got her precious gallon of milk. At the end, the commercial convinced with a sense of humor as Salma slopped her glass of milk in the morning, she was fighting for the whole night. The objective of this commercial is simply to increase the sale of milk. The commercial explains that an empty refrigerator at night should be a challenge for the customer as milk is an irreplaceable beverage for breakfast. The commercial puts a finer point on what “Got milk?” means overall. Due to the chosen setting and music the commercial tends to be farcical and reminds the viewer on a cartoon...
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...Introduction Former University of Oregon track coach and co-founder of Nike Bill Bowerman once said: “If you have a body, you are an athlete!” (Nike Inc., n.d.) It is this way of thinking that describes the root of Nike’s approach to marketing. Every person is a potential athlete or “consumer”. This is a common thinking in the realm of athletics but when Bill Bowerman said this, it was in direct reference to the shoe industry. From their marketing strategies to their selling philosophies, Nike has developed one of the most recognizable and demanded names and logo ever. Nike, which is the name of the Greek Goddess of Victory, was born in 1972 when Blue Ribbon Sports (BRS) launched its first branded shoe at the U.S. Olympic track and field trials. A former University of Oregon track team member Phil Knight created Blue Ribbon Sports. At Oregon, Knight was coached by the legendary Bill Bowerman and then went on to become alumnus of the Stanford School of Business. BRS was crafted in 1962 when Knight made a deal with Onitsuka Tiger Company, a Japanese shoe company, to import their shoes to the United States. Knight had the idea to sell a low cost shoe with a very high quality, with high aspirations of taking Adidas out of the top spot in the athletic shoe market. In 1964, Bill Bowerman decided to join Knight as a partner at BRS to create a joint quest to be number one. Bowerman redesigned the Tiger shoes while Knight acted as the accountant/personal seller and the two went on...
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...MKTG 3030 D Final Report Group 1 Content Executive Summary ................................................................................................................................................. i Part Ⅰ: Situational Analysis 1. 3C Analysis: Company, Competition & Consumers...................................................................................... 1 2. 4P analysis: Product, Price, Placement & Promotion .................................................................................... 2 Part Ⅱ: Campaign 1. Target Market: Profile & Refinemnet .......................................................................................................... 4 2. Communication Objectives .......................................................................................................................... 4 3. Message Strategy: CFR, POP & POD.......................................................................................................... 5 4. Creative Strategy: Discover our excellent & Definr your excellent ............................................................ 5 5. Media Strategy: Objective, Media choices & Measurement ........................................................................ 8 6. Campaign Budget: Overall Budget & Distribution .................................................................................... 10 7. Research Strategy ........................................
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...Monique Scott 1.0 Executive Summary Nike is planning to introduce a new model of it’s Nike ID Plus, which will be called Nike ID Silver. The original product only calibrated with an ipod when syncing songs and only calculated how many miles ran, and how many calories burned. With the new Nike ID Silver, consumers will be able to sync with any MP3 player ( each sync piece sold separately), can be streamed wirelessly to a PC or MAC, will calculate how many calories burned, how many miles ran, your heart rate is monitored every 3 minutes of activity, weight can be calculated before and after activity, and blood pressure can be monitored( silicon strip sold separately) With the chip it will also recommend orthotics if needed, and all of this information can be streamed wireless to your computer/laptop of choice. From then on you can sign up for membership through Nike ID Silver Activity page to help with diet and fitness tips. 2.0 Situation Analysis Nike’s original version of the Nike ID, was well saturated in the market. It didn’t have any other competitors. With the launch of the Nike ID Silver, companies are beginning to grasp the same idea, by being innovative enough to saturate the athletic market and surpass Nike’s gross sales for the Nike ID Plus. Nike has been in the athletic world for nearly four decades now, and has gained a big portion of brand loyal consumers. 2.1 Market Summary |DEMOGRAPHICS| - Equal ratio between male and female - From ages 18-40 [Majority...
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