Free essays on cost leadership and differentiation. But, the companies disagree on whether to reach their customers through scale or quality. Case study on nike s marketing strategy nike is the top athletic apparel and footwear manufacturer in the world. Founded in january 1964 as blue ribbon sports brs by university of oregon track athlete philip knight and his coach bill bowerman, the company was initially a distributor for the japanese shoemaker onitsuka co. The generic business strategy for nike is a product differentiation strategy. With nike manufacturing products with its cost effective business strategies through factories in the developing nations, criticisms regarding its abuse of child labor have affected its popularity to an extent. A differentiated marketing strategy is an approach to target marketing where a company markets to multiple market segments using distinct market mixes for each one. In this way, they can patent a lot of their products and materials. It is through the ncx that the company is feeding its.
Nike is successful because it has some of the best, if not the best, marketing in the world. A love of sports and fitness led to the creation of one of the largest companies in the world. By referring to legendary trackand field coach bill bowermans quotation, nike states that the vision of their company is to bring inspiration and innovation to every athlete in the world. The differentiation strategy of nike is quite competitive so nike should ensure any international marketing strategy it applies should enhance its superior brand name. The message that such a firm conveys to customers is that you will pay a little bit more for our offerings, but you will receive a good value. Differentiation strategy examples starbucks another great example of user generated content, starbucks white cup contest launched in april 2014. This video highlights nike s marketing strategies by. Stand out from the crowd examples of differentiation cleverism.
Nikes cost leadership generic strategy sustains competitive advantage based on costs. Marketing strategy of nike uses psychographic segmentation variables to make its offerings more attractive to the target customers. Nike and adidas are two of the small number of retail companies faring well in the retail apocalypse. As a money making business, the branding strategy of nike interpolate its client into buying merchandise. Founded in january 1964 as blue ribbon sports brs by university of oregon track athlete philip knight and his coach bill bowerman, the company was initially a. Nike s differentiation strategy is to establish the company as the standard in athletic wear. In athletic foot wear industry nike becomes a world leader. Exclusive report 50 pages on marketing strategy of nike can be downloaded here. And the athletes helped nike design and market the products and. This helps the company develop a strong brand that potential customers will recognize. We do this by working with our wholesale partners to create differentiated retail.
This case study analyses the everevolving marketing strategies adopted by nike to become a global brand. How nikes merchandising strategy can help retailers of. To double innovation, nike will accelerate the impact. Nike, being the world leader in this market, takes these customer perceptions to heart and continually produces products that separate itself from the pack. This strategy is a major component of nike s business strategic level plan. Store layout strategies the style of the nike stores uses standard instore methods so as to improve the chance of customers purchases. With nike manufacturing products with its cost effective business strategies through factories in the developing nations, criticisms regarding its abuse of child. Also known as a differentiation strategy, product differentiation is a method for companies to make their products stand out and grab the attention of consumers. The multihyphenate started on youtube in 2010 and has grown an audience of nearly one million. Nike applies the technology to the innovation, segmentation and differentiation for its business. I own shares of nke for years, us sports gear maker nike, inc. But the climb to the top wasnt easy, for nike s unique sneaker offerings was once a niche market. A comparative analysis of strategies and business models. In this series, in the beginning of the discussion, the overview of the business level strategies of nike is given.
In june 2017, nike outlined a new strategy to drive growth into the coming decade, which it called consumer direct offense. The pillars of the plan included focusing on key cities, ramping up its. Nike, adidas, reebok, under armour published on may 10, 2017 by derek partridge share this on. Nke has delivered superior sales and earnings performance, handsomely. Read the complete sustainably defined idea paper on nike s leadership efforts. The cornerstone of the triple double strategy is the nike consumer experience ncx, which includes nike s own directtoconsumer network, as well as a vastly streamlined slate of wholesale distribution partners. Nike, strategy, product differentiation, innovative and outsourcing. How nikes marketing strategies helped it become a global. Nikes differentiation strategies include its style, quality, and brand loyalty.
Nike, strategy, product differentiation, innovative and. Pdf this report is all about to show a marketing plan for nikes products. Implementation of brand differentiation strategy is allowed by nike s brand name which is a tangible but important factor to ensure future success and maintain its current. Nikes new consumer experience distribution strategy hits. In keeping with the brand image is its association with the distinctive logo and its advertising slogan. Product differentiation and what it means for your brand. It is a brand made for the youth and its logo and slogan reflect the same young energy.
It is through the ncx that the company is feeding its 2x innovation and 2x speed initiatives. Nike and adidas have entirely different ideas of how to. The corresponding intensive strategies grow nike s global sports shoes, apparel and equipment business. We realize that the teammentality that captured the spirit of athletics in the late 1980s and early 1990s has been replaced by a sense of individualism. Starting from its swoosh logo to the famous just do it slogan, these are important factors differentiating it from its competitors. This presentation will give you an insight o slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. In todays competitive environment, nike has been able to differentiate itself. In applying this strategy, nike has attained a great deal of consumer insight, which it uses to offer uniquely designed premium products to the athletes.
Nike is admired for the unique styles of its shoes. Adidas ceo kasper rorsted wants to outpace nike with digital strategy. After segmentation, the company needs to decide on the targeting strategy. This strategy keyed to differentiation aims at a product service with unique, appealing attributes allows a firm to command a premium price andor increase unit sales andor build brand loyalty. Nike strategy how nike became successful and the leader. Differentiation strategy, as the name suggests, is the strategy that aims to distinguish a product or service, from other similar products, offered by the competitors in the market. Stand out from the crowd examples of differentiation. O company had sold tiger brand shoes and were grown quickly. Most people enter the retailing business because of their love and knowledge of a particular product, or their notice of a gap in the value chain for that project. The product differentiation attributes that nike pays great attention to are the uncanny product features and the timing of introducing their products to market. Increasingly, brands like these are utilizing social media data. In keeping with the brand image is its association with. Nike s strategy to become the leader in their market. Marketing strategy of nike nike marketing strategy.
In this series, nike, a popular sports and apparel company also follows its businesslevel strategy in a unique way, which has varying changes in the nature of the industry competition. Using the same kind of thoughtful and deliberate strategy, weve created a portfolio of. The pricing of nike products is set in such a way that it is easily accessible to these customer segments. Nike targets middle and high segment customers of all age groups and does not set a bias for any group. The consumer direct offense is fueled by nike s triple double strategy. The competitive strategy that nike introduced at the end of the 1990s concentrates on honing the focus of our marketing strategies and product offerings through product differentiation. How nikes directtoconsumer plan is crushing the competition. Steps in segmentation, targeting, and positioning 1.
We use the information to inform our longterm sourcing strategy, increasing business with the best performing supplier. From my research on the home depot, i think home depot co. This is one of three approaches and is common when a company believes it has unique benefits that would appeal to different markets. So far, weve been talking about the early life of nike, when it was a small startup run by a geek and a worldclass trackand. The company has prided itself on its approach to design and experience.
By focusing on their product line, they are able to produce high quality products that meet customer expectations. The michael jordan of advertising hack that helped nike become the top sports brand in the world. By focusing on a differentiation strategy, nike takes on a lot of investment into research and development, as well as technology innovation, in order to always have the upper hand on the competition. Here customers across the country were asked to doodle on their starbucks cups and submit pictures as. It entails development of a product or service, that is unique for the customers, in terms of product design, features, brand image, quality, or customer service. The subsequent digitalization is just one of six key strategies to this end at adidas. Studying the strategies for differentiation used by successful companies. Hyundai cost leadership strategy, breadth of product line is low kia cost leadership strategy, breadth of product line is low ferrari differentiation strategy, very high price, breadth of. As a result, its products have become the favorite of the serious athlete. The adidas strategies focus on the broad differentiation, innovation, trying to produce new products, services and processes in order to cope up with the competition. A comparative analysis of strategies and business models of nike. It embraces a multibrand strategy, emphasis on expanding activities in.
Still on product differentiation, nike focuses more. History o started by bill bowerman and phil knight in 1964. Nike s marketing strategy has remained a subject of study. Nike is the worlds leading brand of athletic footwear and one of the top brands of athletic apparel and equipment. Develop marketing mix for each target segment market positioning market targeting market segmentation. Mba 61 marketing panagiotopoulou vasiliki vasiliki. Companies need to select the market segments that they want.
Using such strategy nike increases firms access and connection to customers the reach dimension. A firm following a differentiation strategy attempts to convince customers to pay a premium price for its good or services by providing unique and desirable features table 5. With your download, get the 31 best papers relevant to this one, including 20 top related papers. This strategy has translated in to huge sales of nike. Nike emphasizes on the key strategy elements of branding. Differentiation strategies used by bmw 556 words 123.
Harvard business school published a case that explores the evolution of nike s global product sourcing strategy, in particular ongoing efforts to improve working conditions at its suppliers factories. Nike executes its marketing strategy with megan batoon. Professional dancer, youtube influencer, and actress are just three of megan batoons many titles. The american manufacturer, through its marketing strategy which rests on a favorable brand image, has evolved into a large multinational enterprise. Nike used to operate under the strategy of guerrilla marketing to promote its products, a strategy and concept that they had to abandon and change once they overpassed.
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