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Nike: Defense Strategy




“Business is War without Bullets”-
                        Phil Knight(Founder & Chairman)
1.   Position Defense
2.   Mobile Defense
3.   Flanking Defense
4.   Contraction Defense
5.   Counter-Offensive Defense
Nike

Sports
Shoes
Nike




              Sports                             Leisure




Basketball   Football    Cricket      Clothing             Accessories




               Nike
                         Air Zoom
Air Jordan   Mercurial
                          Yorker
              Vapour
Line Extension
Nike Mercurial(Football)-
•   8 versions
•   Associated with ‘Speed’



T-90(Football)-
•    8 Generations
•    Associated with
     ‘Power and Accuracy’
Constant Innovation
1. Their first products were track running shoes.
2. Nike has recently introduced cricket
   shoes called Air Zoom Yorker,
   designed to be 30% lighter than
   their competitors.

3. In 2008, Nike introduced the Air Jordan XX3, a high-
   performance basketball shoe designed with the environment
   in mind.
NIKEiD
NIKEiD is a sub brand which allows customers to design and
 personalize their Nike footwear, and is available online at
 NIKEiD.com.




The NIKEID brand also has boutique stores in New York
 City, London, Paris, Osaka, and Berlin. It has been reported
 that the NIKEID business has more than tripled since 2004.
 Presently, there are over 3,000,000 unique visitors at
 NIKEiD.com per month.
Technology in Products(Nike+)
•    Nike has historically had some of the most cutting-edge products on the market.
•    Nike teamed up with Apple and launched the “Nike + iPod” line of products.




•    This technology allows consumers to connect their iPod devices to sensors inside the shoes to record time,
     distance, pace, and calories burned.
Strength of Patents
One of Nike’s most revolutionary technologies comes through its
 footwear cushioning.

The cushioning systems in a shoe serve to distribute pressure evenly
 among the foot, absorb shock, and deliver comfort to the user.

Nike has patents on four cushioning technologies:
     Nike Air
     Nike Zoom
     Nike Air Max
     Nike Shox

Although some of Nike’s earlier patents are beginning to expire, they
 still hold patents on the newer technologies.
In the past, competitors have tried to match rival Nike’s cushioning
 systems, but none have matched their success.
Under Armour Marketing
According to their Annual Report, their marketing and promotion
 efforts begin with a strategy of selling their products to high
 performing athletes and teams on the collegiate and professional
 levels.
They implement this strategy through collegiate sponsorships,
 individual athlete agreements, and by selling their products directly
 to team equipment managers and to individual athletes.
 As a result, their uniforms, batting gloves, socks and other items of
 apparel are seen on the field, giving their products exposure to
 various consumer audiences, through television, magazines and live
 at sporting events.
This exposure to consumers helps them establish on-field
 authenticity as consumers can see their products being worn by
 high-performing athletes.
Nike Promotional Campaigns


•Without Using the words,
‘medal,' gold’ & ‘games’.

•No.1 with 4.5Mn
Views>Adidas(2.9Mn
Views)




                               •Nike garnered 23.6 Mn
                               views by the 4th day.

                               •Benefitted more than any
                               other brand.
The "Just Do It" campaign allowed Nike to further increase its share of the
domestic sport-shoe business to 43%, from 1988 and 1998.

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Nike defense strategies

  • 1. Nike: Defense Strategy “Business is War without Bullets”- Phil Knight(Founder & Chairman)
  • 2. 1. Position Defense 2. Mobile Defense 3. Flanking Defense 4. Contraction Defense 5. Counter-Offensive Defense
  • 4. Nike Sports Leisure Basketball Football Cricket Clothing Accessories Nike Air Zoom Air Jordan Mercurial Yorker Vapour
  • 5. Line Extension Nike Mercurial(Football)- • 8 versions • Associated with ‘Speed’ T-90(Football)- • 8 Generations • Associated with ‘Power and Accuracy’
  • 6. Constant Innovation 1. Their first products were track running shoes. 2. Nike has recently introduced cricket shoes called Air Zoom Yorker, designed to be 30% lighter than their competitors. 3. In 2008, Nike introduced the Air Jordan XX3, a high- performance basketball shoe designed with the environment in mind.
  • 7. NIKEiD NIKEiD is a sub brand which allows customers to design and personalize their Nike footwear, and is available online at NIKEiD.com. The NIKEID brand also has boutique stores in New York City, London, Paris, Osaka, and Berlin. It has been reported that the NIKEID business has more than tripled since 2004. Presently, there are over 3,000,000 unique visitors at NIKEiD.com per month.
  • 8. Technology in Products(Nike+) • Nike has historically had some of the most cutting-edge products on the market. • Nike teamed up with Apple and launched the “Nike + iPod” line of products. • This technology allows consumers to connect their iPod devices to sensors inside the shoes to record time, distance, pace, and calories burned.
  • 9. Strength of Patents One of Nike’s most revolutionary technologies comes through its footwear cushioning. The cushioning systems in a shoe serve to distribute pressure evenly among the foot, absorb shock, and deliver comfort to the user. Nike has patents on four cushioning technologies:  Nike Air  Nike Zoom  Nike Air Max  Nike Shox Although some of Nike’s earlier patents are beginning to expire, they still hold patents on the newer technologies. In the past, competitors have tried to match rival Nike’s cushioning systems, but none have matched their success.
  • 10. Under Armour Marketing According to their Annual Report, their marketing and promotion efforts begin with a strategy of selling their products to high performing athletes and teams on the collegiate and professional levels. They implement this strategy through collegiate sponsorships, individual athlete agreements, and by selling their products directly to team equipment managers and to individual athletes.  As a result, their uniforms, batting gloves, socks and other items of apparel are seen on the field, giving their products exposure to various consumer audiences, through television, magazines and live at sporting events. This exposure to consumers helps them establish on-field authenticity as consumers can see their products being worn by high-performing athletes.
  • 11. Nike Promotional Campaigns •Without Using the words, ‘medal,' gold’ & ‘games’. •No.1 with 4.5Mn Views>Adidas(2.9Mn Views) •Nike garnered 23.6 Mn views by the 4th day. •Benefitted more than any other brand.
  • 12. The "Just Do It" campaign allowed Nike to further increase its share of the domestic sport-shoe business to 43%, from 1988 and 1998.

Editor's Notes

  1. Market location strategylocation could be classified as the role that organizations play in the target market and the type of Business tactics they adopt to play such a role. Market Leaders – Firms that enjoy the largest market share and generally leads others in new technology introduction, new product development, promotional practices etc. Such firms are likely to devise defense strategies to maintain its position and stay the leader.Creating new usesEncouraging more usage
  2. changing target markets, repositioning products, or changing promotional focus.
  3. Two different types of football shoes catering to different needs.
  4. Think Nike's an Olympics sponsor? You wouldn't be the only one making that mistake. It's "Find Your Greatness" campaign manages to capture the Olympic spirit of competition without mentioning the Olympics, or words verboten in the UK like "medal," "gold" and "games." As the Olympic Games began last week, Nike's "Find Your Greatness" landed at No. 1 on the Viral Chart, with 4.5 million views (about 1.7 million paid). Compare that to Adidias, an Olympics sponsor, whose "Take the Stage" campaign, which arrived at No. 3 on the chart, with 2.9 million views, according to Visible Measures. Nike used similar tactics to ambush the World Cup two years ago with its "Write the Future" campaign. It garnered 23.6 million views by the fourth day of the tournament and stole buzz from Adidas in a similar fashion. A YouGov study at the time found that Nike benefitted more than any other brand -- including official sponsors like Adidas -- from the World Cup tournament.