Nike Football Case
Nike Football Case (Nov 14)
1. Discuss the factors that have resulted in Nike Football becoming a multi-Billion division and a major force in the football market.
1) Product Innovation:
- Performance based product development
- Design: unique and eye-catching aesthetics & adaptation to global context
- Collaboration with star athletes:
- Extra exposure and endorsement
- Research & data feedback for further improvement on product & technologies
2) PR & Sustainability: Rebranding after early 90’s reputation crisis
- Establishing long-term sustainability goals to reduce on resource natural use & carbon footprint and ultimately reach 100% renewable energy footprint, net 0 waste & water usage, 0% carbon footprint and 100% youth access to sport
- Considered Index Program
3) Advertising differentiation:
- New football culture: techniques matter > cutting edge products
- Targeting young customers
- Sponsorship with the Brazilian National team who were known for their creative way of playing football
2. Comment on the competitive landscape of the global football market and Nike’s position versus its major competitors.
- A highly competitive environment where the top four manufacturers, Nike, Adidas, Puma and New Balance, hold over 80% of the market share
- Labor intensive – manufacturing has moved to countries with comparative advantage on labor costs
- Consolidation among major players
- Nike: young and passionate; focuses on innovation and creativity; marketing attention leans more to neo platforms (digital & interactive media); customization; forced Adidas to imitate or fall behind (first-mover advantage)
3. Discuss Nike’s shift of its target market for the 2010 World Cup and how it impacted its marketing efforts.
- From the Baby Boomers to the younger consumers
- Age group shift: from 12-14 to 17+ (need for professional performance rises)
- From traditional channel to internet and social media: cooperation with media platforms worldwide
- Website & digital marketing
- Interactive communication across platforms
- Bootcamp: gives users football lessons and drills
4. Comment on and give your thoughts on Nike’s plans to incorporate sustainability and philanthropy into its football marketing.
Initially, Nike was forced into participating in sustainability due to allegations of poor working conditions in factories in developing countries. It created CSR team to oversee the company’s efforts to make quality products in a responsible manner. Then soon Nike realized that it added value to company equity and went beyond the calling to make the company an environmental friendly corporation.
I believe Nike is making the right move. The company has a lot of influence among the not only in the sports business but also all sectors of commerce. By setting an example, Nike could pressure other companies into sustainable acts. While it is good that Nike employees feel that social responsibility should be an expected practice, not every company engages in it and it would be a great opportunity to promote brand image and differentiate itself from major competitors.
5. Discuss the “Write the Future” campaign and the media strategy they employed to get it out there.
The commercial itself managed to consolidate a great deal of creative insights into 3 minutes. It was intense, dramatic, engaging, and eye-catching, which generated strong a stop power. It also demonstrated Nike’s strong brand connection with professionals, its valuing the game itself as the essence, its globalization vision (with the elite football players from all over the world), as well as the fun & humor side as part of the brand’s characteristics.
Media Strategy: effective IMC that generated and sustained hits – overwhelmingly positive