...Pestel Analysis On China Political factor: If Nike wants to open international market such as China, the company would get disadvantages because every country will protect and priority for its domestic products. So, the company must find out exactly these requirements that the country require in Nike to overcome these barriers. International trade regulations The trade regulations in China are formulated in accordance with the "Foreign Trade Law of the People's Republic of China" in order to maintain foreign trade order and fair competition and to protect domestic industry. In 2011, Nike has difficulties to highlight the deep problems businesses face in manufacturing in China, particularly at a time of sharply rising costs and a stiffening legal environment. In its first country-specific supply chain report, which it said focused on China because of the forthcoming Beijing Olympics, Nike detailed the efforts it has been making to get suppliers to comply with its code of conduct and with Chinese law, including a program to monitor Olympics-related suppliers this year. Government attitude The Chinese government may have a love-hate relationship with the West — eager for Western technology yet threatened by democracy. Therefore, it is an disadvantage for Nike when expanding its business in China. But for Chinese consumers, Western goods mean one thing: status. China's biggest seller of athletic shoes, Li Ning, recently surrendered its top position to Nike, even though Nike's...
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...Marketing in Asia: How Nike Figured out China The China market is finally for real. To the country’s new consumers, Western products mean one thing, status. They can’t get enough of those Air Jordans. Nike swung into action even before most Chinese knew they had a new hero. The moment hurdler Lui Xiang became the country’s first Olympic medalist in a short-distance speed event – he claimed the gold with a new Olympic record in the 110 m hurdles last August. Nike launched a television advertisement in China showing Liu destroying the field and superimposed a series of questions designed to set nationalistic teeth on edge. “Asians lack muscle?’ asked one. ‘Asians lack the will to win?’ Then came the kicker, as Liu raised his arms above the trademark Nike Swoosh on his shoulder. ‘Stereotypes are made to be broken’. It was an instant success. ‘Nike understands why Chinese are proud’ says Li Yao, a weekend player at Swoosh-bedecked basketball courts near Beijings Tiananmen Square. Such clever marketing tactics have helped make Nike the icon for the new China. According to a Hill and Knowlton survey, Chinese consider the Middle Kingdom’s ‘coolest brand’. Just as a new Flying Pigeon bicycle defined success when reforms began in the 1980’s and a washing machine that could scrub potatoes became the status symbol a decade later, so the Air Jordan – or any number of Nike products turned out in factories in Asia – has become the symbol of success for China’s new middle...
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...Research Report Executive Summary This report examines the global company Nike and how it progressed from a small American based company to one of the largest sporting footwear and apparel brands in the world. The entry mode into global business chosen by Nike of contract manufacturing has allowed the company to benefit on two particular fronts. Nike outsourced the manufacturing element of the business initially to China and later expanded to over 750 factories mostly across South East Asia to capitalise on the abundance of low cost labour available to manufacture its products. Contracting out the manufacturing function also allowed the company to focus all of its energy and resources on developing innovative products and then marketing these products across the world. A core value of the Nike organisation is innovation which is embedded in its strategic direction. It developed a culture where no idea is a bad one and innovation is highly valued. This relates both to product development and marketing opportunities. Having this strong focus on innovation has allowed the company to continue to be a world leader in the creation and production of sporting good without the need or desire to diversify into different business streams. Nike has also displayed innovation throughout other business decisions to ensure it tackles environmental issues head on. This attitude took the potentially damaging situation of Nikes association with sweatshops and the perceived exploitation of factory...
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...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 a booming population of 1.2 billion. He also knew that in many parts of the world, including China, people...
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...competitive tax arrangements, stable government and trade regulations by the Federal Reserve (Whitehead, 2012). Moreover, Nike is able to receive tax benefits as it is highly recognised for its business strategies that are environmental-friendly. Economic factors -Fluctuation of profit margins International markets are major contributions to Nike’s profit margin. Thus, the stability of international interest rates and...
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...and strengthen their brand image. These are the top 3 sporting brands of the world. Nike is at 26 th position; Adidas is at 62 nd while Puma has just entered at 97 th position in top 100 brands ranking list published in Year 2009 as best global brands byinter brand dot com. Nike and Adidas are in the world's top 100 brands list for last somany years. All of these three brands are growing brands and consistently movingupward in that list. As per the year 2009 figures published by interbrand.com and otherbrand rating agencies/bodies, the brand values of Nike, Adidas and Puma are $13,179millions, $5,397 millions and $3,154 millions respectively. This study has identified thekey steps and strategies adopted by the decision makers of these brands which resulted inthe strong brand image for them. Moreover, those areas were also identified whichrequire the improvement particularly by comparing Puma with Nike and Adidas. Keyword s: International brands; Nike; Adidas; Puma; Marketing. 1. Introduction Brand Image for any brand is built by many different factors which includes brandawareness, brand associations, brand loyalty, perceived quality and so on. All of thesefactors mainly depend upon the activities with respect to integrated marketingcommunication i.e. brand message, brand ambassadors, sponsorships, partnerships, brandrelationships, brand communities, brand extensions etc. Nike, Adidas and Puma havebeen examined considering these...
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...Background Nike is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area. It is one of the world's largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. In 2010 the brand alone was valued at $10.7 billion, making it the most valuable brand among sports businesses. The company was founded on January 25, 1964, as Blue Ribbon Sports, by Bill Bowerman and Phil Knight, and officially became Nike, Inc. on May 30, 1971. The company takes its name from Nike, the Greek goddess of victory. Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Air Force 1, Nike Dunk, Foamposite, Nike Skateboarding, and subsidiaries including Brand Jordan, Hurley International and Converse. Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008, and previously owned Cole Haan and Umbro. In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name. Nike sponsors many high-profile athletes and sports teams around the world, with the highly recognized trademarks of "Just Do It" and...
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...2011 shows how the global sporting organisation, Nike uses the marketing concepts of (a) online marketing and (b) marketing segmentation and targeting in its advertising and research efforts towards running in China. Nike recognises that in its efforts to encourage ‘running’ as an enjoyable activity, it needs to target a main audience of ‘young, urban, image-conscious Chinese.’ In doing this an exciting and original idea should be executed, and so, Nike uses the most logical response via online marketing. By launching their ‘Run For’ campaign, Nike attempts to facilitate customer interaction via video-sharing and social media sites. Therefore Nike, in this example, is trying to encourage running by incorporating everyday people into their ‘Run For’ campaign. Online marketing is said to ‘allow information sharing at a new level and facilitate interaction between customers and channel members.’ (Kotler et al, 2010 p.544). In this example Nike attempts to create a positive feel towards running and allows the Chinese community think of it as a social event, while using direct and online database marketing. In doing so, Nike is able to interact with past, present and/or potential customers. To achieve this Nike allows members of the Chinese community to communicate their perspectives on running, which is potentially attracting a larger target audience. By using customer interaction and seeking a large range of opinions, Nike is more likely to attract a more fluctuated interest...
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...Nike China’s “Find Your Greatness” Campaign CLIENT NIKE PRODUCT NIKE ENTRANT WIEDEN+KENNEDY SHANGHAI Shanghai, CHINA TYPE OF ENTRY MEDIA: Use of Media CATEGORY Best Use of Social Media Marketing TITLE FIND YOUR GREATNESS PRODUCT/SERVICE NIKE ENTRANT COMPANY : WIEDEN+KENNEDY SHANGHAI Shanghai, CHINA ADVERTISING AGENCY : WIEDEN+KENNEDY SHANGHAI Shanghai, CHINA MEDIA AGENCY : MINDSHARE CHINA Shanghai, CHINA BRAND OWNER: Nike AGENCY: Wieden+Kennedy, Mindshare, AKQA, Razorfish BRAND: Nike COUNTRY: China MEDIA BUDGET: 10 - 20 million AMBUSH MARKETING: A marketing technique in which advertisers work to connect their product with a particular event in the minds of potential customers, without having to pay sponsorship expenses for the event. An example of ambush marketing might involve selling music merchandise just outside the grounds of a concert without the consent or awareness of the concert promoters, relying on association with the concert to drive sales. PARASITIC ADVERTISING: A type of marketing that promotes one product at the cost of lost sales for another product. Parasitic advertising often occurs when two products are close substitutes for one another. Firms generally attempt to avoid parasitic advertising within their own product offerings because it is not the most effective way of maximizing the return on ad spending. THE BIG IDEA: Honour the pursuit of greatness, not just gold. Simply to inspire and energize everyday athletes everywhere...
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...Ning’s international marketing strategy) marketing consumer goods to American consumers, and you are the marketing manager responsible for American market. Please complete the tasks as following: Task 1 Analyse the concepts and process of marketing, and you are required to do these considering the company you choose. To do this, you should introduce your company briefly first. Li Ning Company Limited is one of the leading sports brand enterprises in the PRC, possessing brand marketing, research and development, design, manufacturing, distribution and retail capabilities. The Group's products mainly include footwear, apparel, equipment and accessories for sport and leisure uses under its own Li Ning brand. The Group has established an extensive supply chain management system, and a distribution and retail network in the PRC primarily through outsourcing of manufacturing operations and distribution via franchised agents. The Group also directly operates retail stores for the Li Ning brand. The Group adopts a multi-brand business development strategy. In addition to its core Li Ning brand, the Group (i) distributes sports products under its Z-DO brand via hypermarket channel; (ii) manufactures, markets, distributes and sells outdoor sports products under the French brand AIGLE in the PRC, the exclusive right of which has been granted to a joint venture established with Aigle International S.A.; (iii) engages in manufacture, research and development, marketing and sale of table...
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... MKT/421 June 4, 2014 Nike Nike Inc. was first founded in 1964 as “Blue Ribbon Sports” by Bill Bowerman and Phil Knight. It wasn’t until 1971 that it was re-named “Nike” after the Greek winged goddess of victory, strength, speed, glory, and fame. The Nike “swoosh” is meant to represent the wings of the goddess Nike, as she was often depicted in mythology with. The iconic swoosh was created by Caroline Davidson, an advertising student at Portland University. She was a freelancer asked to design a graphic logo that could fit on the side of a shoe by Phil, and she sold him her design for $35. The first interaction between the founders of Nike was in 1959, when track coach Bill Bowerman met Phil Knight; who was a runner at the University of Oregon where he was coaching. The need for the company arose out of Bill’s desire to find lighter, more durable racing shoes for his university track team, and Phil’s desire to find a way to make a living without having to give up his love of sports. The two put their heads together, and the end product was a company that now dominates the market in its sportswear segment, despite having begun as a small distributing outfit from the back of Phil’s car. While Phil was obtaining his MBA degree at Stanford in the 60’s, Professor Frank Shallenberger assigned his students with a project; the goal of which was to devise a small business and a marketing plan for its success. Building on his earlier brainstorms...
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...Strengths: y Nike is a globally recognized for being the number one sportswear brand in the World. Nike being a competitive organization has a healthy aver sion towards its competitors i.e. during Atlanta Olympics, Reebok expensed on sponsoring the games; Nike however sponsored the top athletes and due to this step, it gained valuable coverage. Nike has no factories; rather it uses contract factories to get the work done which makes it quite a lean organization. It has contracts with above 700 shops globally in about 45 different countries. Nike is quite strong regarding its research and development; quite evident regarding its evolving and innovative product range. They manufacture high quality at the lowest possible price, if prices rise due to price hike then the production process is made cheaper by changing the place of produ ction. It has a strong sense of marketing campaign by sponsoring top athletes. It uses lunarlite foam and flywire materials in order to make the manufactured shoes lighter and more controllable. Nike, Inc is listed in NYSE and positioned as a US headquartered worldwide sportswear trader and supplier that: Contracts with about 700 shops worldwide, runs offices in 45 countries, and manages factories in China, Indonesia, Taiwan, Thailand, India, Vietnam, Philippines, Pakistan, and Malaysia. Belongs to Fortune 500 companies which 2007 total re venue exceeded 16 b. USD Employs more than 30.000 people worldwide; Owns strong marketing strategy under Nike brand that...
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...NIKE cultural dimension. どうやって消費者にナイキの製品を買わせるのか 文化的要因を利用した消費者行動への影響 個の要因は最も広範囲に影響を与えており、買い手の文化やサブカルチャー、属している社会階層が購買行動に影響する、 ただただし、文化や社会階層は流動的なものなので今のトレンドを抑える必要があります。例えば、使い古されていますが食の洋食化などは典型で日本人＝和食という文化が崩れています。 ●消費者は必ず複数の下位文化に属している。 「文化的要因」には、社会階級と下位文化（サブカルチャー）という要素がある。 社会階級とは、「社会の構成員を、明確なステイタス階級のヒエラルキーに分割し、各階級内は構成員が相対的に同じステイタスを持ち、一方、階級間でははっきりとしたステイタスの違いが見られるようにすること」だ（なんとなく、フーコーの主体化／臣民化を思わせる……）。 ステイタスを決める要素は、世帯年収や職業、学歴など。 社会階級は、消費者の態度・行動の形成において準拠集団として作用しますが、とくに上の社会階級が下の社会階級にとっての準拠集団になることが多いのです。 p.148 下位文化は、あらゆる文化を構成する要素で、国籍、宗教、地域、人種、年齢、性別などにセグメンターションされる。ここに性的指向を加えてもよいだろう。 例えば、米国ではアメリカンフットボールに人気がありますが、ヒスパニック層ではサッカーのほうが人気があります。ヒスパニック層をターゲットにサッカー選手を用いたプロモーションを実施するのは、下位文化に基づいたセグメンテーションです。 p.148 そして、ここで重要なのは、消費者は「必ず複数の下位文化に属している」ということだ。したがって、それらが相互にどう関連し、消費行動にどのように影響するのかを理解することが必要だ。 第一の文化的要因は、買い手にもっとも広範囲に影響を与えるもので、買い手の文化、下位文化(サブカルチャー)、社会層への所属意識が強い影響力をもつといいます。 サブ・カルチャーとは、カリフォルニヤ文化といったものでお馴染みのライフ・スタイルです。社会階層とは、比較的同質的で、上下の順序づけがされております。類似の価値観や関心・行動といったものをもちます。 アメリカは、主要社会層が六つあります。上流の上、下、中流の上、下、下流の上、下と分類されていますが、中流の下位は全体の３０％で、この階層に属する人は、社会的尊敬を得ることに関心があり、協会に行き、法律を守ります。 ホワイトカラー、グレーカラー、ブルーカラーが混在する日本では、一億総中流意識といわれますが、これはどのように分類したらよいでしょうか。 社会的階級からのNIKEマーケティング プレゼン まずはプロットの作成 キーワード 順番 スタートと終わり * 最初の戦略「文化的側面を利用したNIKEの戦略」 * 3つの例を用いて説明 * 一つ目は、「インド」 * 二つ目は、「中国」 * 三つめは、「アジア各国」 * まとめNIKEはスポーツというカテゴリーの中でも、各国の 文化を利用することで更なる成長を達成した。 キーワードは？ * 文化・副文化・社会階層はこの場合はない * インド * 中国 Product and brand localization inspiration...
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...EXECUTIVE SUMMARY NIKE INC. In an effort to become one of the world’s leading designers, marketers, and distributors of athletic footwear, apparel, equipment, and accessories, Nike Inc. started with two visionary men who transformed themselves into one of the top selling brands in the athletic shoe industry. Through taking chances and understanding customers needs, Nike Inc. has established a large market position and strong brand equity. Nike Inc. understood early in its history that aligning its products with top athletes like Tiger Woods, Lance Armstrong and Michael Jordan, would propel the Nike brand to the very top. Nike also fostered endorsements with both individuals and associations like the NFL. Nike also takes into consideration the impact of giving back, having a positive Corporate Social Responsibility and being environmentally conscious. At the same time Nike experienced setbacks due to their dependence on third party manufacturers and having limited control. Nike Better World CSR Campaign targets smaller waste output (carbon footprint) and paying closer attention to the way their products are being manufactured (labor force) helping Nike to get back in good standing with consumers. Because, the market for sporting goods is intensely competitive, it is important for Nike to realize that it is not just the young “hip” generation that is going to keep them on top. The older “Baby Boomers” can help them to succeed too; this generation is known for...
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...One strategic growth strategy that Nike implemented was the company’s heavy investment into the 2008 Beijing Olympics. The strategic consideration that drove the decision was to customize offerings in each country market to match the tastes and preferences of local buyers. The primary purpose was to gain more access to new customers. Nike is a 50 year old company and this wasn’t the first time they set foot in China as a retailer, but they wanted to make further progress in their penetration of the Chinese market. Their short-term goal is to have annual revenues from China reach $4 billion in sales. Their investment in marketing and endorsements related to the 2008 Beijing Olympics was $150 million. Part of this cost included sponsoring the Chinese teams. There were 28 different sports in the Olympics, and Nike sponsored the Chinese teams in 22 of them. That is a significant percentage. The global strategy it applied was to form partners with Chinese manufacturing companies to manufacture the goods. All of Nike’s production comes from the 785 contract factories it has all over the world, including China. The modes of market entry it used would be a “Transnational Strategy” because with the games, Nike also opened up Nike Stores that offered products in athletic areas most popular with the local population. They also opened up “Super Stores” with similar product listing of that of the U.S. market. Prices were also scaled down to local currency rates to match the competitors pricing...
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