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SBM S2 - Nike Case Study - Global Branding
SBM S2 - Nike Case Study - Global Branding
NIKE in US
1962 Introduced as Blue Ribbon Sports
1967
1968 1973 1974 1978
NIKE in US
1980 1985 1987 1988 No.1 athletic shoe company Signed Michael Jordon Revolution in motion- Beatles Just do it Campaign
1993
1994
Nike - Challenges in US
Current Strategy: Major Focus on Running & Performance based Shoes Unaddressed categories such as fitness & aerobics Positioned as a masculine brand
Consequence: Reebok introduced style, fashion, comfort & for women shoe line and stole market lead New Strategy: Retain focus on performance, more attention to
NIKE in Europe
1980 1981 1987 Strategic decision to expand Globally Signed John McEnroe Realized considerable revenues & Started gaining foothold 1988 1989 1989 Focus on Repurchasing License rights 1st Centralized Print Campaign Nike Air Gospel Campaign
NIKE in Europe
1990 1991 Regained 90% control over dist. channels Revenues 6 times to that of 1987 figure; Second only to Adidas 1992 1993 Focus on Barcelona Olympics Change in Marketing Strategy; Launch of Just do it Campaign 1994 1997 Wall Ad; Team Brazil Team Nigeria and Italy
New Strategy: Restricted its product line to high end shoes Focused on brand building
distributors
Consumers viewed company as arrogant Consumers perception of Nike as expensive, aggressive American Brand
NIKE Elsewhere
1992 Japan First Asian Country to embrace Nike products 1997 Market Leader in Japan; Expanded to other Asian countries, S. America, Africa and the Middle East 1998 Entered Chinese Market; Advertisements with Local
Athletes as Heroes
2004 Sales in China rose to 300 million USD 2008 Market Leader in China
Strategies
Reduction in employee base by 7 percent
factories Workers forced to work for 65 hours per week Wages less than 10 USD per week No incentives for extra working hours Nikes Measures:
Evaluation
Repeat surveys at six month intervals to gauge public perception
Accusation: Overuse of swoosh Reaction: Withdrawing the symbol temporarily from the new brand Nike Alpha - and then reintroducing it in a milder form.
Acquisitions
Acquisitions
2012 ??
Why Acquisitions?
Diverse Brand Portfolio Risk Mitigation
Contribution of Acquisitions
Brand Portfolio
NIKE
Converse
Cole Haan
Nike Range
Hurley
Umbro
Endorsements - Individual
1973 Steve Prefontine
Sponsorships - Teams
1994 US Mens and Womens
Soccer Teams
1994 Brazilian Mens Soccer Team 1997 Italian Mens Soccer Team 1998 Nigerian Mens Soccer Team 2002 Manchester United 2006 Indian Cricket Team
Branding Tool
Nikes way: Celebrity Endorsements Strategy: Identify young budding talent and sign long term deals Celebrity Selection Criteria: Attractiveness Physical Appearance Credibility Expertise in the field Personality Aggression, Stylishness Building Brand Equity Attractiveness Brand Recall Credibility Brand Acceptance Personality Fit Positive Brand Associations Risks Tiger Woods, 2009 Liu Xiang, 2008 Beijing Olympics
Brand Association: Excellent endorsements Brand Loyalty: Honest high quality brand Perceived Quality: Meeting consumer expectations Brand Awareness: Simple name & logo; Attractive tagline
Adidas 7 7 5 5 5 6
Global Brand Value = Intangible Earnings * Brand Contribution % * Brand Multiplier As computed
35
30
10
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Fashion Vs Performance
Brands shall do well to maintain their core values Fashion apparel can be designed but not at the cost of performance Nike shall always remain as a performance brand in whatever market they tap; Fashion maybe an additional attribute depending on the needs and perceptions of the target segment Nike Goddess stores
Future Path
Strive to be part of the top 20 global brands Smartly capture the Final Frontier Europe Consolidate position in other markets and enter all emerging markets Continue with the process of innovation in the sports apparel industry Always be in sync with consumer needs and tune according to changes in consumer behavior; Keep a watch on competitors in all operating markets Acquire but do not make brand extensions out of acquisitions that would not give value back to the core brand Ensure brand is free of controversies a bigger global brand is at stake!
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