NIKE

Nike is the largest seller of athletic footwear, athletic apparel, and other athletic gear in the world, with about 30% market share worldwide.
As of 2009, the company sells its products through a mix of independent distributors, licensees, and subsidiaries approximately 120 countries
worldwide. Nike has grown from an $8,000 company in 1963 to a company with revenues of $37.4 billion for the year ended May 31, 2020.

In 2008, Nike spent an enormous amount of money, more than a billion dollars, on advertising, endorsements, and sales promotion. In order
to make sure that this this money is being spent properly, Nike relies on marketing research. Nike has used marketing research in
understanding where the future growth lies. An example is Nike’s shift from marketing in the more traditional sports (basketball and running)
to other sports (golf and soccer) as awareness of Nike among soccer and golf players was low, and Nike decided to work on increasing these
numbers.

Today Nike is recognized around the world and it is result of more than 40 years of work and innovation. Nike realized the importance of
associating athletes with its products in 1973. Through focus groups and surveys, Nike discovered the pyramid influence, which shows that
the mass market can be influenced by the preferences of a small group of top athletes and began to spend millions on celebrity endorsements.
It wants to convey a message that the company’s goal is to bring innovation to every athlete in the world and used athletes to design new
products by attempting to meet their individual goals.

Celebrities like Ronaldo, Michael Jordan, and Tiger Woods, who have endorsed Nike all have represented excellence in some way. The
athletes also have a personal side such as their drive to win or the ability to remain humble. All these qualities speak something about the
Nike brand; this not only benefits the brand, but also helps to define what the Nike brand is and what it stands for.
The company also realized that in order to achieve its lofty growth goals, it must appeal to multiple market segments. Based on marketing
research, Nike divided the market into three different groups: the ultimate athlete, the athlete participant, and the consumer who is influenced
by sports culture.
 QUESTION 3

Develop a graphical model explaining consumer’s selection of a

brand of athletic shoes.

A graphical representation: Factors considered by consumers

• Is a chart or pictorial form for athletic shoes selection:
• Describes the overall scenario • Brand awareness
• Helps in selecting a specific relationship • Design and style
• Price
• Comfort and durability
 BRAND CELEBRITY
AWARENESS ENDORSEMENTS

SALES
DESIGN AND PROMOTION
STYLE
CONSUMER
PRICE

NEEDS COMFORT
AND
DURABILITY
Management Decision Problem
A Management Decision Problem is whereby when a situation arises, and management of a company needs to
make a decision which requires research and hence starts the research process. There is no actionable guidance. It is
simply a statement of the issue that management is dealing with, and there must be restatement in the research
terms.
Managers may run into many difficult decisions such as
∙ who to hire for the good of the team
∙ who to let go when budget forces them to decrease the team size
∙ how to proceed when a previous strategy doesn’t work out
∙ how best to delegate tasks when employees jostle for opportunities
∙ making unpopular decisions for the good of the company.
Question 1:- Nike would like to increase its share of athletic shoes
market. Define the management decision problem.

Management Decision Problem

∙ Expansion
∙ Design of
through
∙ Brand ∙ Product goods and Maintain their
diversification
maintenance development Quality existing market
or market
management
development
Marketing Research Problem

The marketing research problem is information oriented. It wants to

determine what information is needed to make the best decision.
It involves determining what information is needed and how that
information can be obtained effectively and efficiently.
Marketing Research Problem Vs Management Decision
Problem
Management decision problem Marketing research problem

• Asks what the decision maker needs to do • Asks what information is needed and how it
should be obtained
• Action oriented
• Information oriented
• Focuses on symptoms
• Focuses on the underlying causes
Question 2:- Define an appropriate marketing research problem
corresponding to the management decision problem you have identified.

Marketing Research Problem

Changes in Celebrity Change of

endorsement/ Stagnant
taste and perception of Costly
Spokesperson industry
preference consumers
influence
Qualitative research is a type of study that is based on social science that seeks to understand
that behavior and characteristic of a given population.

● Nike Company can only strengthen its brand when it appeals to its consumers. Consumer
appeal towards any product is a question that involves various aspects ranging from the
type of product, quality, customer relations, pricing, and delivery methods among others. ​
● The company can use qualitative research to carry out market research with the purpose
of identifying consumer requirements in terms of sporting products. These will include
their preferences in term of product quality, type, color, price and methods of delivery.​
● The other aspect of this research will involve consumer perspective on the consumer
relations of the company. It is important to note that customer satisfaction is very
significant to brand establishment because it determines customer loyalty. The research
will also incorporate a feedback review process to obtain data on customer reaction upon
using the product. ​
● Nike Company can use the information obtained from the research as the basis
for developing its products. Product quality should meet the quality needs of
the customer.​
● Information about customer relations would help the company to restructure
its customer relations sector by making appropriate adjustments under the
needs of the customers. ​
● This way the company would be able to strengthen its brand. It will not only
retain loyal customers but also increase its customer base. ​
● This would also help the company to secure the competitive advantage over its
competitors. ​
● Nike's mission is to ​bring inspiration and innovation to all athletes in
the world. In achieving its mission, athletes ​must be involved in
research process so that their views, needs, and expectations are
met.
● The ​engagement with the consumers is critical because it provides
the company with primary ​information regarding the needs of the
consumers. ​
 REFERENCES
Mission Statement. (n.d.). Retrieved June 21, 2017, from https://help-
enus.nike.com/app/answer/a_id/113
Berkwits, M., & Inui, T. S. (1998). Making Use of Qualitative Research Techniques.
Retrieved June 21, 2017, from
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC1496926/Madrigal, %., & McClain, B.
(2012).
Strengths and Weaknesses of Quantitative and Qualitative Research. Retrieved June
21, 2017, from
http://www.uxmatters.com/mt/archives/2012/09/strengths-and-weaknesses-ofquantitative-
and-qualitative-research.php
RunningShoes.com News. (2011). Retrieved June 21, 2017, from
http://news.runningshoes.com/9-types-of-athletic-shoes/