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Nike Google Case Study by

Nike and Google both rely on core branding strategies to compete in their industries. [1] Nike's strategy includes celebrity endorsements, extensive advertising, targeting athletic customers, and distributing products at various price points. However, this strategy incurs high costs and Nike faces risks from changing consumer tastes, fast product changes, and expanding globally. [2] Google's core value is providing universally accessible information. It is diversifying into mobile to maintain relevance against competitors like Microsoft. Expanding into mobile puts Google directly against Microsoft but provides more customer choices.

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534 views

Nike Google Case Study by

Nike and Google both rely on core branding strategies to compete in their industries. [1] Nike's strategy includes celebrity endorsements, extensive advertising, targeting athletic customers, and distributing products at various price points. However, this strategy incurs high costs and Nike faces risks from changing consumer tastes, fast product changes, and expanding globally. [2] Google's core value is providing universally accessible information. It is diversifying into mobile to maintain relevance against competitors like Microsoft. Expanding into mobile puts Google directly against Microsoft but provides more customer choices.

Uploaded by

mirza
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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MASTER OF BUSINESS ADMINISTRATION (M.B.

A)

ASSIGNMENT

CASE STUDY-NIKE AND GOOGLE


MARKETING MANAGEMENT

TO – MR. AFTAB ALAM


(FACULTY OF CMS, JMI)

NAME – MOHD AAMIR


ROLLNO - M5609129
CASE STUDY-NIKE
Q.1 what are the pros, cons and risks associated with
Nike’s core marketing strategy?
A.1 PROS OF NIKE’S CORE MARKETING STRATEGY
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.

1 .Distribution

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. Nike has
become the leader in the e-commerce by being the first to the market with its e-
commerce website.

2. Advertising and Promotion


Nike makes contracts with some celebrity athletes which can draw attention to
their products such as Tiger Woods, Renaldo. This has created a relatively high
level of Nike’s awareness. Besides that, Nike also employed a large amount of
advertisements through the mass media.

3 .Price
Nike targets on the consumers who care more about the utility and quality of the
products rather than the price. In this way, the price is not affect too much .This
has make Nike to set relatively higher price than its competitors.

4 .Targeting market
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.
CONS OF NIKE’S CORE MARKETING STRATEGY
Although Nike’s marketing strategies had brings lot of positive implications to
the company, but it will bring negative implications to Nike too. The negative
implications that will identify in this assignment are high cost incurred,
influence of spokesperson, and competitors.

1 .Costly
Since Nike has implemented several marketing strategies, it had incurred high
costs in producing and promoting its products. Beyond that, the inflation had
raised the costs of raw materials and transportation. To deal with these
problems, Nike has increased the products’ prices and reduces its marketing
budget.

2 .Influences of spokesperson
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.

3. Intense Competitors

There is intense competition faced by Nike. Their competitors are Adidas,


Reebok, Puma, and so forth, whilst competition is tighter with the coming of
Adidas. More, the product line is slightly different between Nike and Adidas.
Nike is mainly focus on footwear for men and women who between 15 to 35
years old, while Adidas is specialize in footwear for men, women and children
between the ages of 10 to 30.

RISKS OF NIKE’S CORE MARKETING STRATEGY

Nike faces many risks when they use their core marketing strategies to achieve
their goals and these risks can come from both internally and externally
environmental circumstance.
1 .Consumer Tastes and Preferences
Nike needs to stay on the top of changes in consumer taste and preferences as
evidenced by changes in fashion. So Nike face the risk that fashion trends may
change so fast that Nike fails to follow

2 . Fast changing of Nike’s products


From the above risk, the changing in fashion and customers’ preference had
brings negative effect on its marketing strategies. Hence, Nike should introduce
new products to maintain its customer loyalty as well as attract new customer
markets. However, it will also have negative implication if Nike’s implement
new products rapidly.

3. Expanding to the Overseas


One of Major Nike’s marketing strategies is to expand to overseas and become
the leader in the world. It also will bring risks to Nike when they expand their
business globally.

DIFFICULTIES FACED BY ADIDAS WHEN


COMPETE WITH NIKE
1. Marketing Strategies
One difficulty most likely to be faced by Adidas is in its marketing, compared
to its competitor Nike, Nike spends more money on advertising and promoting
their products reputation. Adidas will have a hard time trying to compete with
Nike in terms of advertising and promotion, considering Nike’s utilization of
low labour cost of production, Nike can afford to spend so much money in
creating awareness for their products.

2 Adidas and Reebok Reputation on Its Finances


Adidas and Reebok joining up together as a merger would be a good deal for
leading over Nike but the two companies have a bad reputation due to financial
problems which almost led them to bankruptcy and since they are to work
together.
Q.2 HOW ADIDAS COMPETE WITH NIKE?
A.2.1 Implementation of Rebranding Reebok Program
Adidas Group should phase out its high accomplishment athletic shoe line and
reposition itself in the casual footwear and active footwear market within the
next years. The high accomplishment athletic shoe line can be sponged up into
the Adidas brand.

The rebranding of Reebok can help Adidas to make larger advancements with
women.

The overall rebranding of Reebok should be finished to avoid internal


competition within Adidas Group where the Reebok division is seen as the less
profitable sibling of Adidas and to keep buyers from believing that Reebok is
not an expensive substitute for an excellent Adidas product

2. Expand Its Sponsorship Program (Marketing)

Adidas mainly focuses in the European market even though it is known in other
parts of the world, which is because of its collaboration with soccer events all
over the world and football associations with bodies such as FIFA, UEFA,
leagues, clubs and individual players, Adidas experience its most successful
year in the history of football with sales above 1.5 billion Euros.

3. Encourage Product Customization

Adidas can also make provisions for consumers to customize their products
online before it is delivered to them, this will give customers unique and a wide
range of their products to choose from and will also allow them to understand
what their consumers really want and focus on satisfying their consumer.
CASE STUDY - GOOGLE

Q1.With a portfolio as diverse as Google’s, what are the


company’s cores brand values?

A1.With a portfolio as diverse as Google, the company’s core brand value is


universal accessible information. Google has invested its resources in order to
organize the world’s information and make it universally accessible and useful.
Since it had been launched, Google had determined to be able to work with a
great people so they can create an environment where the employer can improve
and develop their skills. From the products to Google Apps, the technology and
product had proven to be successful all around the world.

Ever since Google been launched, trust from the customer had help them to
expand their corporate world far beyond than expected. Regardless of all the
challenges from the competitors, I believe that Google had taken every step they
can to survive and maintain their relevance in the corporate world

Q2.What’s next for Google? Is it doing the right to put so


much on mobile?

A2.I believes that Google is doing the right thing taking on Microsoft with the
concept of smart phones. Google’s attempt to break the monopoly of Microsoft.
As a customer, I think that the involvement of Google will give us more choices
so that we can get the same product with high quality and at the cheaper price.
Besides, with this involvement, Google also can redefine their vision and find
the most suitable product for them to involve. Thus, the competition between
these three American giants had become world’s largest tech.

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