Nike’s core marketing strategy: Nike believed in a “pyramid of influence” in which the preferences of a small percentage of top athletes influenced the product and brand choices of others. They contracted to many top sports’ celebrities such as Michael Jordan, Steve Prefontaine, Tiger Woods, Maria Sharapova and etc.
Also Nike expanded its’ growth in Europe by entering football sportswear and sponsors teams especially it made a boom in overseas when they sponsored Brazilian team in 1994 when they won a World cup. Moreover, they’ve successfully grown their revenue by the sales in Asia in 2008 by using the Olympic Games in China by sponsoring many high ranked athletes and teams.
Not only sponsoring the athletes and teams, Nike also sponsors public events, school clubs and competitions.
Pros: A repeatable model allows managers to refine skills and systematize processes. Their clearly defined audience target-athletes, sport enthusiasts, well off and brand conscious customers – makes it easy for them to make target centric ad campaigns. It represents emotions and promotes its brand as a brand of allegiance and loyalty. It uses geographic segmentation to promote its products and brands. ‘
However, Nike has always only been about 1 thing- it only delivers a specific kind of product.
Cons: It mainly focuses on producing high-products with cutting edge technology and sells them at competitive prices. It doesn’t communicate to the middle class and lower class society.
Risks: Intense competition and the influence of spokepersons poses a risk to their strategies.
Also there’s a risk of having a very powerful competitors with lower prices currently.
2. If you were Adidas, how would you compete with Nike?
If I were Adidas, first thing I would improve is the design and styles of the clothes. Because the very powerful thing of Nike is that their sneakers and clothes are not only comfortable, it’s fashionable. Although reducing prices can be efficient for example: focusing on middle class society will give more profit and will give belief to the customers that can show their respect and caring for all types of people. As well as spend some money for good advertisements and famous celebrities who can deliver good attitudes globally under the name of Adidas.