Case study nike Product & Brand management

Ishita singh Krishnakant tiwari Amit asthana AARISH ANGRISH Swati Agarwal Mrinal Handa f-24

f-09 F-37 f-56 f-58 f-65

PBM assignment : NIKE Case-Study

Q1. Why was it important for Nike to embark upon European Marketing Strategy? Could the brand manage to overcome its concern in the European market? It was important for Nike to embark upon European marketing strategy because of the differences in characteristics of the European market with the American market. When Nike was targeting the American market, it had created an aggressive and energetic youthful brand image by its associations with athletic sportsmen and events. However, the same strategy would not bring the same success or penetration of the market because Europe was not very athletics crazy zone. Because USA and Europe had different cultures, it was tough for Nike to find an athletic hero or sports star who could become the brand ambassador of Nike in Europe. European market was more multi cultural and different from the American market. Europeans were traditionally tennis and soccer lovers and did not idolize athletics as much as those sports. Similar was the case with basketball which was the stronghold of associations with sportsmen in USA for Nike. Europeans did not like basketball as much as Americans did. Also, the aggressive communications of Nike which were very successful in USA, was not accepted by the Europeans because of the differences in culture across the regions. The Swoosh logo of Nike which had become an icon in USA did not find the same association in European consumers. The Europeans had problem in accepting the aggressive Nike TV advertisements which led them to perceive the Nike brand as an intimidating and unattainable brand. In addition, in each area local distributors had their own different marketing and distribution strategy according to their own understanding of the brand image and personality of Nike. All this led Nike to lose its edge in the European market as they were perceived as fashion oriented and not as performance oriented as perceived by the American consumers.

PBM assignment : NIKE Case-Study

This forced Nike to make its own different marketing strategy for the European market by purchasing all the distribution rights from local distributors and aligning all businesses to make a common, unified strategy for all Nike products in all areas of Europe. The brand managed to overcome its concerns because the strategy of glocalization (globalization + localization) by purchasing distribution rights enabled them to have a greater control over strategy decision making. They retrieved around 90% of their control on brand distribution and marketing activities which helped them in maintaining the same global image and brand positioning. Nike lowered the aggressive tone in its advertising and adopted a gentler marketing approach using globally accepted celebrities like Michael Jordan, Tiger Woods and Brazilian soccer stars like Roberto Carlos to project a global and international image of their brand. Nike also sponsored various football clubs in Europe and also various national teams and individual tennis players across Europe in order to enforce its global image and to prevent being tagged as an American brand.

PBM assignment : NIKE Case-Study

Q2. What were the key success factors for Nike while managing the 4 Cs to create a global brand image? 4 Cs are the customer focused factors which are equivalent to the 4 Ps of marketing.

4P's Product Pricing Promotion Place

4C's Customer Cost Communications Convenience

In the case of first C consumer, Nike focused on products which appeal to the sporty and athletic instincts of consumers. Nike produces a wide range of products ranging from track running shoes to accessories like bags, caps and sport equipments like bats, balls etc. In case of cost to the consumer, Nikes products are priced competitively with respect to alternative footwear manufacturers. Nike also caters to the premium segment on the basis of its high quality and innovative products. Because of the quality of the products, the cost is considered as competitive. Nike uses sponsorships of various admired and successful sportspersons in order to enhance its global image of being an energetic and athletic innovative brand. Nike also uses advertisements which gel with its tagline Just Do It to communicate about its products and brand personality to the consumers. Nike products are placed in various multi brand stores and exclusive Nike stores across the globe, which helps provide the consumers a place of convenience for buying. One of the key success factor in the management of 4 Cs of marketing for Nike was the control which it had over the local area distribution and marketing. It could decide its own

PBM assignment : NIKE Case-Study

strategies for a global focus and at the same time adapt or change according to the needs of the local consumers. For example, Nike sponsored the apparels of Indian cricket team keeping in mind the popularity of the game of cricket among Indians. Nike was able to maintain its cost of economies of scale because it had entered many new markets and it had all control over the local marketing and distribution so it had to maintain the same strategy but for minor changes according to needs of local consumers. Another success factor was the consistency in the brand image world over. In order to create a global brand image, Nike had to convey the same brand image to the consumers world over. Its tagline and trademark Swoosh design helped convey the same image and personality world over, which helped it to become a global and reputed brand. Another success factor was its quality in products and the drive for innovation and presence of strong R&D facilities which proved a key factor in establishing the brand image of being an effective global brand. This also helped fight competition in all areas and segments of operation.

PBM assignment : NIKE Case-Study

Q3. Explain the brand identity, personality, image and association of Nike and compare with Reebok and Adidas. What were the advantages achieved by Nike through these? Brand identity It is the outward expression of a brand including its name, trademark, communications and appearance. Nike with its swoosh or fattened check mark logo communicates a Just Do it theme which goes along with its target market of achievers and sporty athleticism. The Just Do It tagline differentiates it from its competitors by giving it a sporty, athletic and energetic feel. Reebok has a slanted A- shaped logo and has the tagline I am what I am. Reebok has been able to make a unique and different identity from Nike. Reebok is known as more of a lifestyle brand and not as much into athletics as Nike. Unlike Nike and Reebok, Adidas does not have a very famous logo. It has 3 slanted obtuse lines as its logo. However, its tagline Impossible is nothing has been very famous, especially with the youth. It creates an identity of an energetic brand, just like Nike. Brand Personality It is the image that the company wants to convey through its identity i.e. the architecture or attributes of the brand like the logo, tagline, advertisements etc. A brand personality helps consumers relate with the product through a consistent set of traits or attributes. The Nike brand has historically reflected the personality of athleticism. Through its product portfolio which focused on athleticism and energetic activities like running, Nike managed to create the personality of a doer among the footwear brands. Adidas more or less achieved the same kind of personality as Nike, especially in the home territory of Europe. Adidas also focused on the athletic performance aspect and designed its shoes on the basis of providing more quality and performance. However, Adidas was considered as more conservative when compared with Nike.

PBM assignment : NIKE Case-Study

Reebok focused more on style than performance. Reebok shoes were made with soft leather and were considered as fitting for the aerobics and fitness wave of the early 1980s. Even contemporary products of Reebok focus on style and are considered primarily for women because their shoes provide comfort and make the feet look small. Brand Image is the impression in the minds of consumers about the overall attributes and personality of a brand. It is a set of feelings and impressions that are linked to the brand. The Nike brand image was that of a serious, high performance brand as it focused on producing shoes that are durable and lightweight as required by runners. They also focused on constant innovation and therefore, the brand was considered as high on performance and innovation. Adidas brand image has changed of late from a conservative brand to a contemporary brand , especially with its tagline Impossible is nothing which gives the brand an image of being focused on energetic performance not only when it comes to athleticism but also in other fields just like what Nike achieved through its Just Do It tagline. Reebok has maintained a distinct image from the other two by maintaining an image of being a brand which provides both quality and comfort. The advantages that Nike achieved through it creating a brand personality and image is that It helped Nike to create reliability for the brand customers know what they are expecting from the brand and what they would be getting a) It helped Nike differentiate from its competitors b) It helped Nike to focus on their target market which was the youth and people who are more into energetic activities c) It helped Nike establish and enhance its brand value and recognition it may also reduce future costs of advertisement because a strong brand has the recall value d) It helped Nike to build a loyal customer base e) It helped Nike to expand to new markets and tap new segments and also introduce many new products and enhancements which would further reinforce its brand value

PBM assignment : NIKE Case-Study

Q4. Prepare a brand value pyramid of brand Nike vs. Reebok

BELIEFS AND VALUES

NIKE: A masculine brand, product made by the athletes & for the athletes and now for the general public also. More emphasis on sport utility. REEBOK: A slightly feminine brand, made for general public, emphasis on style.

BENEFITS
NIKE: provides the best quality & innovative product that can be used for various kinds of sports. Identifies with various athletes and helps general public feel connected with various athletes. REEBOK: Product which can be used for various sports and also has a fashion value attached to it.

FEATURES AND ATTRIBUTES

NIKE : High quality material used. Specially designed by athletes with focus on utility. REEBOK : Products made with soft material and also designed in such a way that it gives a somewhat feminine touch.