Nike Case study

1. CASENIKE
ESLSCA UNIVERSITY - MBA PROGRAM
MARKETING MANAGEMENT
AHMED AHMED ABDEL-AZIZ

2. Nike’s strategies for growth (Ansoff Matrix)
► Intensive growth: Over the past decade, Nike’s revenues grew at an
incredible annual rate of 21 per cent. Nike, with a 27 per cent share
internationally, dominates the world’s athletic footwear market.
► • Integrative growth: Nike gives its customers more than just good athletic
gear. As the company notes on its Web page (www.nike.com): ‘Nike has
always known the truth – it’s not so much the shoes but where they take
you.’ Beyond shoes, apparel and equipment, Nike markets a way of life, a
sports culture, a ‘Just do it!’ attitude. The company was built on a genuine
passion for sports, a maverick disregard for convention, hard work and
serious sports performance. Nike is athletes, athletes are sports, Nike is
sports.
► Diversification growth: Nike also moved aggressively into new markets,
from baseball and golf to inline skating and rock climbing. Its familiar swoosh
logo is now found on everything from sports apparel, sunglasses and
footballs to batting gloves and hockey sticks.,
► Downsizing and Divesting Older Businesses, Nike went back to basics –
focusing on innovation and introducing new sub-brands: ‘jumping man’ logo
and the ACG [All Condition Gear] line of outdoor and hiking styles. Recent
advertising de-emphasizes the swoosh, refocusing on product performance
and using only the Nike script logo name, A Nike executive admits that Nike
has moved from maverick to mainstream, and the swoosh is becoming too
common to be cool but can a swoosh be cool when mums, dads and
grandmas wear them?
Show how marketing principles and practices will enable Nike to
satisfy these needs, bearing in mind the company’s diverse range of
product and geographic.
► Nike also moved aggressively into new markets, from baseball and golf to inline skating
and rock climbing. Its familiar swoosh logo is now found on everything from sports
apparel, sunglasses and footballs to batting gloves and hockey sticks, however, How can a
swoosh be cool when mums, dads and grandmas wear them? According to one analyst,
‘When Tiger Woods made his debuted in Nike gear, there were so many logos on him he
looked as if he’d got caught in an embroidering machine.’ The world was over swooshed!
► To address these problems, Nike went back to basics – focusing on innovation and
introducing new sub-brands: ‘jumping man’ logo and the ACG [All Condition Gear] line of
outdoor and hiking styles. Recent advertising de-emphasizes the swoosh, refocusing on
product performance and using only the Nike script logo name, that’s how Nike have
shown an effective and efficient marketing principles to satisfy those needs
What would you consider Nike’s ‘superb marketing skills? Why does Nike
require these skills to compete in the marketplace ?
► The company’s strategy of building superior products around popular athletes and its classic ‘Just do
it!’ ad campaign have forever changed the face of sports marketing,
► Nike gives its customers more than just good athletic gear. As the company notes on its Web page
(www.nike.com): ‘Nike has always known the truth – it’s not so much the shoes but where they take
you.’ Beyond shoes, apparel and equipment, Nike markets a way of life, a sports culture, a ‘Just do
it!’ attitude, That’s considered the main pillars of the power of its brand and logo speaks loudly to
Nike’s superb marketing skills.
► In 1998, Nike stumbled and its sales slipped. Many factors contributed to the company’s woes. The
“brown shoe” craze for hiking and rugged, outdoor styles such as Timberland, Hush Puppies and
Doc Martens ate into the athletic footwear business. Nike also faced increasing competition from
Adidas, Germany’s venerable sporting goods company, and from clothing designers such as Tommy
Hilfiger and Ralph Lauren. In Europe, They acquired high level of flexibility and diversity in
marketing strategies and ideal ad’s campaigns to get over the crisis and maintain to compete in the
marketplace.