Nike Apple A major player in the Designs and markets clothing and sports consumer electronics, equipment industry computer software and Founded in 1964 as Blue personal computers Ribbon Sports Founded in 1976 Nike sponsors a large number of high profile Best known for the athletes and sports teams around the world Macintosh computer, iPod, iPhone and iPad Recognized by the “Just do it” slogan and Swoosh logoIntroductionQuestion 1 Question 2 Question 3 Conclusion
The product: The Nike + iPod kit measures and records the distance and pace of a walk or run, using a small chip embedded in a Nike shoe, which communicates with an iPod and other Apple software The scene: Intelligent sportswear The case - Nike+ iPod: Nike-Apple partnership Strategic opportunities/pitfalls Co-branding & decision-making process Adidas-Samsung vs. Nike + iPodIntroductionQuestion 1 Question 2 Question 3 Conclusion
Conduct an analysis of the Nike-Apple partnership, including a discussion of the strategic opportunities (and possible pitfalls) this collaboration presents for each partner?IntroductionQuestion 1 Question 2 Question 3 Conclusion
Both market leaders within their industry Mutual interests Same type of customers Brand synergy - both ways Large joined customer base 75% of all runners already listen to music (Enclosure 2) A Nike crisis affects Apple and vice versa ”The Nike/Apple co-branding ventures is successfulbecause of its undeniable ability to addvalue to eachother’sproducts, therebycreatingsomethinggreaterthan the sum of their parts.” - The Duffy Agency.IntroductionQuestion 1 Question 2 Question 3 Conclusion
S The Apple & Nike brands Innovative Market leaders Large loyal customer base W Product requirements High priced O Brand synergy Distribution channels Expansion of technology T Expansion of technology Potential harmful influencesIntroductionQuestion 1 Question 2 Question 3 Conclusion
Describe and discuss the consumer decision-making process inrelation to purchasing Nike+ shoes and iPod Sport Kit or Sensor. How does the co-branding influence the decision-making process?
2 types of Nike + iPod buyers: Dedicated and loyal customers Members of the “Nike community” “Apple-fans” Contemplating customersIntroductionQuestion 1 Question 2 Question 3 Conclusion
Need recognition & Problem awareness Information search Evaluation of alternatives Purchase Post-purchase evaluation “Five-stage model” Kotler, p. 246IntroductionQuestion 1 Question 2 Question 3 Conclusion
The best of two strong brands Brand equity influence Collective pitfalls Loyal customer baseIntroductionQuestion 1 Question 2 Question 3 Conclusion
• Adidas and Samsung have developed a fitness concept, the “miCoach system” (Enclosures 3 and 4), which bears resemblance to the Nike + iPod system. • To which extent does the Adidas-Samsung partnership constitute a competitive threat to Nike and Apple? • How may Nike and Apple respond to this?
A differentiated oligopoly market Few major players Nike-Apple, Adidas-Samsung, Garmin, Polar Nike-Apple the market leader Adidas-Samsung the market challenger Segmental flank attack on Nike-Apple Phone Nike-Apple respond counter-offensive defence strategy (iPhone)IntroductionQuestion 1 Question 2 Question 3 Conclusion
4 P’s Difference in: Price Adidas: $ 300-600 Nike-iPod: $ 180-230 Product No phone vs. Phone Nike shoes exclusively vs. all brands Adidas-Samsung: less music storage Place Adidas-Samsung only sold in EuropeIntroductionQuestion 1 Question 2 Question 3 Conclusion
Operating within the same market a threat Differences in the 4 P’s softens the threat Nike-Apple needs to keep an eye on the other market playersIntroductionQuestion 1 Question 2 Question 3 Conclusion