GLOBAL MARKETING

RAMBABU A 211519065

Global marketing of NIKE

Tagline: “Just do it”
NIKE is an American multinational corporation that is engaged in the design, development,
manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and
services. A major manufacturer of Sports equipment. As of 2017, the Nike brand is valued at $29.6
billion. Nike ranked No. 89 in the 2018 Fortune 500 list of the largest United States corporations by
total revenue.

Introduction

Nike, originally known as Blue Ribbon Sports (BRS), was founded by University of Oregon track
athlete Phil Knight and his coach, Bill Bowerman, on January 25, 1964. The company initially operated
in Eugene as a distributor for Japanese shoe maker Onitsuka Tiger, making most sales at track meets
out of Knight's automobile.
According to Otis Davis, a student athlete whom Bowerman coached at the University of Oregon, who
later went on to win two gold medals at the 1960 Summer Olympics, Bowerman made the first pair of
Nike shoes for him, contradicting a claim that they were made for Phil Knight. Says Davis, "I told Tom
Brokaw that I was the first. I don't care what all the billionaires say. Bill Bowerman made the first pair
of shoes for me. People don't believe me. In fact, I didn't like the way they felt on my feet. There was
no support and they were too tight. But I saw Bowerman made them from the waffle iron, and they
were mine".
In 1964, in its first year in business, BRS sold 1,300 pairs of Japanese running shoes grossing $8,000.
By 1965 the fledgling company had acquired a full-time employee, and sales had reached $20,000. In
1966, BRS opened its first retail store, located at 3107 Pico Boulevard in Santa Monica, California next
to a beauty salon, so its employees no longer needed to sell inventory from the back of their cars. In
1967, due to rapidly increasing sales, BRS expanded retail and distribution operations on the East Coast,
in Wellesley, Massachusetts.
NIKE Global strategy
Not only is Nike successful at marketing their products in the United States, but they have grown into
a truly international company through their approach to global marketing strategies. Global marketing
strategy, according to Oxford University Press, is 'marketing on a worldwide scale' taking note of
differences, similarities, and opportunities in order to meet global objectives. Or, simply put, it's
creating a strategy that fits the market you're trying to reach, incorporating the geographic, cultural, and
societal norms of that region. What works for one market may not work for another. Global marketing
helps create a strategy for a similar product in a different market.
Nike's business and marketing strategy, both at home and abroad, help keep them at the forefront of
their industry of footwear and athletic apparel. Nike succeeds in global marketing because they
understand world markets and how to reach each audience in a personalized approach that works for
different languages, cultures, customs, needs, and differences.
Nike is one of the most successful companies on the globe, both from a sales standpoint and in their
marketing initiatives. Here are a few of the ways Nike achieves success in reaching varied audiences
with the right message.

Emotional Advertising
From its beginnings with the now world-recognized slogan, 'Just do it,' Nike has succeeded in marketing
across borders through the use of emotional advertising and branding. Rather than selling a product
directly, Nike has managed to build a strategy that appeals to a customer's aspirations or emotions to
build an attachment to a brand, as opposed to selling the product solely for the product's sake.
Nike routinely relies on the emotions of activity, heroism, success, achievement, and triumph to appeal
to customers, a strategy that has been successful regardless of the market. Some of Nike's emotional
branding tactics have included advertisements with phrasing like, 'Anticipate greatness' or 'Your only
limit is you.'
Appealing to basic human emotion and desire knows no boundary. It's a strategy that works as well in
Europe or Asia as it does in the United States.

NikeID
One of Nike's most successful strategies that has eclipsed the boundaries of country and culture is the
introduction of NikeID, which allows shoppers to customize products that align with their own styles
and cultural preferences.
For example: a consumer can choose different colors, color combinations, patterns, and shoelaces as
well as being able to customize a shoe for favourite regional sports. Though Nike offers a full
complement of athletic shoes ready to buy off of store shelves, they recognized that consumers have
individual tastes and preferences, particularly consumers in other countries with varying cultural and
societal differences.
Athletes and sponsorships
Nike has built much of its marketing and advertising with the help of superstar athletes and sports
sponsorships. By selecting international sponsorships and highlighting international athletes, the
company has been build a broader, global interest in their brand and put their name and logo at forefront
of global sporting events.
For example: Nike has partnered with English club Manchester united to not only penetrate the
European market but also reach the customers from all markets who are interested in soccer, known
outside of U.S. as “football”. Sponsoring an athletic team or an event such as world cup soccer or using
an internationally recognized superstar like Cristiano Ronaldo, has helped Nike gain traction in other
countries where different sports and athletes take centre stage.
Product differentiation
1. Nike shoes design specifically for a large variety of sports.
2. Shoe technology and innovation
 Flywire technology and Lunar foam Cushioning system
 Nike Frees and Nike Shox.
 Nike sports research lab
Competitors
1. Nike accounts for 36% US Market for athletic footwear.
2. Footwear market is so competitive, major competition from other brands- Adidas-Reebok
  US market share of 8.9% prior to reebok merger
 Merged with Reebok in 2005
 46% of their total sales comes from footwear in 2008.
 Net income of Adidas in 2018 is €21.915 billion
Conclusion
Nike is one of best expressions of the benefits of Global marketing. In particular, the cultivation of a
brand image that is relatable for many people in many segments and foreign markets is commendable.
Nike road to success has not been an easy one and often it too has struggled to adapt to foreign
environments, both in strategic and ethical contexts. Innovation and design which keeps Nike as a
successful global marketing company.

Global marketing of Spotify

Tagline: “Music for every mood”

Spotify Technology S.A. is a Swedish media-services provider founded in 2006. The company's
primary business is its audio streaming platform that provides DRM-protected music and podcasts from
record labels and multiple companies. As a freemium service, basic features are free with
advertisements or automatic music videos, while additional features, such as improved streaming
quality, are offered via paid subscriptions. As of July 2019, it had 232 million monthly active users,
including 108 million paying subscribers.
Introduction
Spotify was developed in 2006, by a team at Spotify AB, in Stockholm, Sweden. The company was
founded by Daniel Ek, former CTO of Stardoll, and Martin Lorentzon, co-founder of Trade Doubler.
The company's title, according to Daniel Ek, was initially misheard from a name shouted by Martin
Lorentzon. Later they thought out an etymology of a combination of "spot" and "identify". Spotify
Sweden AB, headquartered in Stockholm, Sweden, handles research and development. The company
is a subsidiary of Spotify Ltd., a company headquartered in London, United Kingdom, which in turn is
a subsidiary of Spotify Technology S.A., headquartered in Luxembourg. Spotify has offices in 20
countries as of November 2016.
The Spotify application was launched on 7 October 2008. While free accounts remained available by
invitation to manage the growth of the service, the launch opened paid subscriptions to everyone. At
the same time, Spotify AB announced licensing deals with major music labels.
In April 2016, Ek and Lorentzon wrote an open letter to Swedish politicians demanding action in three
areas that they claimed hindered the company's ability to recruit top talent as Spotify grows, including
access to flexible housing, better education in the programming and development fields, and stock
options. Ek and Lorentzon wrote that in order to continue competing in a global economy, politicians
needed to respond with new policies, or else thousands of Spotify jobs would be moved from Sweden
to the United States.