Certificate I RAHUL CHANDRA here by declared that the project submitted as part of term paper is entirely my original work and it has been not submitted to any institution as before.
Acknowledgement I would like to convey my heart felt thanks to my Principles of marketing teacher, Dr.Monica Bansal, who always gave valuable suggestions and guidance for the completion of my project. She helped me to understand and remember important details of the project that I would have otherwise lost. I would like to thanks my parents, without their cooperation I would have never been able to complete my project. I would also like to take this opportunity to thank all those people who have directly or indirectly helped me making this project.
Introduction A marketing strategy serves as the foundation of a marketing plan . A marketing plan contains a list of specific actions required to successfully implement a specific marketing strategy . Marketing strategies serve as the fundamental underpinning of marketing plans designed to reach marketing A good marketing strategy should integrate an organization's marketing goals, policies, and action sequences (tactics) into a cohesive whole. The objective of a marketing strategy is to provide a foundation from which a tactical plan is developed Marketing strategies are partially derived from broader corporate strategies , corporate missions, and corporate goals. They are also influenced by a range of micro environmental factors .
Types of marketing strategies
Strategies based on market dominance - In this scheme, firms are classified based on their market share or dominance of an industry. Typically four types of market dominance strategies:
2. Porter generic strategies - Michael Porter assessed strategy on the dimensions of strategic scope and strategic strength. Strategic scope refers to the breadth of market penetration while strategic strength refers to the firm’s sustainable competitive advantage . He felt three types were important:
3. Innovation strategies - This deals with the firm's rate of new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types:
4. Innovation strategies - This deals with the firm's rate of new product development and business model innovation. It asks whether the company is on the cutting edge of technology and business innovation. There are three types:
5. Aggressiveness strategies - This asks whether a firm should grow or not, and if so, how fast. One scheme divides strategies into:
6. Warfare based strategies - This scheme draws parallels between marketing strategies and military strategies. There are many types of marketing warfare strategies, but they can be grouped into:
Offensive marketing warfare strategies
Defensive marketing warfare strategies
Flanking marketing warfare strategies
Guerrilla marketing warfare strategies
Nike's "Joga Bonito" Marketing Campaign This case is about Nike's "Joga Bonito" campaign for the 2006 FIFA World Cup that was held in Germany from June 09, 2006 to July 09, 2006. Through its Joga Bonito (Play Beautiful) campaign, Nike sought to promote the beautiful aspects of the game of football such as creative play, professionalism, courage, and team spirit It was a multi-pronged campaign, which comprised of a series of advertisements (ads) that featured a number of football superstars, an online TV channel dedicated to football called Joga TV, a social-networking website, Joga.com, and a Joga3 futsal tournament. The case discusses the reasons that made Nike develop and launch this campaign and the competition it faced from Adidas. The case also discusses the reactions of fans and media analysts to the campaign.
Issues » Understand the advertising and marketing strategies adopted by global athletic footwear giants like Nike and Adidas to cash in on the popularity of the FIFA World Cup. » Critically analyze the pros and cons of Nike's Joga Bonito campaign for the 2006 FIFA World Cup » Understand the increasing importance of online social communities and digital media as a cost effective tool for marketing communication.
Nike and the Beautiful Game In March 2006, Nike, Inc. (Nike), the world's largest athletic shoe manufacturer, and Google Inc (Google) announced the launch of joga.com, a social networking website for football fans across the world. This was part of Nike's "Joga Bonito" campaign, the company's global marketing initiative during the build up to the 2006 FIFA World Cup (2006 World Cup) to be held in Germany from June 09, 2006 to July 09,2006. Through its Joga Bonito campaign , Nike sought to promote the beautiful aspects of the game of football such as creative play, professionalism, courage, and team spirit. "Joga Bonito" is a Portuguese phrase that translates into "play beautifully" in English. It was a multi-pronged campaign, which comprised of a series of advertisements (ads) that featured a number of football superstars, an online TV channel dedicated to football called Joga TV, and the social-networking website ,Joga.com. As a part of the campaign, Nike also organized a Joga3 tournament, a short-field 3-on-3 futsal game.
Adidas - The Official Sponsor For the 2006 World Cup, 15 companies were selected by FIFA as the official sponsors of the event (Refer to Exhibit V for a list of the 15 official sponsors). It was estimated that each sponsor had paid amounts ranging between US$ 38 million to US$ 63 million to be associated with the event as an official sponsor. Adidas was one of the main official sponsors of the World Cup. Adidas had dominated the football sports goods market ever since the 1950s. Adidas also held the distinction of being the official sponsor in all the FIFA World Cups held since 1978. For the 2006 World Cup, Adidas reportedly spent US$ 200 million on its World Cup campaign, which included its efforts to block Nike out of TV ads in Canada and the US...
The Joga Bonito Campaign In July 2005, Nike made its intentions clear about what it wanted to achieve through the 2006 World Cup. In a letter to all its retailers worldwide, Nike wrote: "The new season for Spring 06 will serve as the platform for launching Nike into the number one soccer brand in the US and the globe ... Prepare yourself and your business for a historic ride." Reiterating the importance of gaining the market leadership in the football market, Denson said, "Football is the No. 1 played sport, and so if we want to stay the No. 1 company in the industry, we are going to have to be No. 1 in football.
Nike Scores A Beautiful Goal... ...Or a Self-Goal?
In June 2006, Nike announced that its Joga Bonito campaign had struck a chord with consumers, given the record traffic to Nike football.com. The site recorded two million visits per week. The Joga Bonito site received 760,000 visits a week. The company claimed that 448,000 people participated in its Joga3 futsal tournaments.. Nike's critics, on the other hand, felt that the Joga Bonito campaign put style above substance. They said that Nike had created a community around football players who could play artistic football but did not give any credit to the less glamorous tasks that are equally important to the game. For instance, the site does not give any credit to defenders who save goals by making hard tackles. Some critics felt that Joga.com would appeal only to kids and people new to the sport, but not to serious supporters and die-hard fans of football. Critics also felt that Nike's campaign was dampened by its association and over-dependence on the Brazilian team. .
Outlook Nike and Google said that they would closely watch how Joga.com fared. If it did well, they planned to launch similar sites for basketball, baseball, skateboarding, and other sports. The success of this network would depend on whether Nike succeeded in convincing the fans that Joga.com was not a mere marketing site for Nike. "It has to be of the people and authentic and credible. It's a self-governing community. Our job is to feed it, help it start, but then they'll fuel it. It's a long-term way of connecting with consumers," said Edwards...