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Nike: Football

Nike has been the dominant brand in soccer/football equipment since the 1990s when it began seriously investing in sponsoring national teams and players. Some key events included sponsoring 10 members of the 1994 World Cup winning Brazilian team over rival Adidas. In subsequent World Cups, Nike launched innovative products like the Mercurial boot and ran marketing campaigns like "Joga Bonito" to promote playing soccer beautifully. By the 2006 World Cup, Nike sponsored over 45 top European clubs compared to Adidas' 41 and had grown its soccer business to $1.5 billion from $40 million in 1994. However, rivals like Adidas remained competitive and Nike will need to continue innovating its products and marketing to maintain its

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280 views17 pages

Nike: Football

Nike has been the dominant brand in soccer/football equipment since the 1990s when it began seriously investing in sponsoring national teams and players. Some key events included sponsoring 10 members of the 1994 World Cup winning Brazilian team over rival Adidas. In subsequent World Cups, Nike launched innovative products like the Mercurial boot and ran marketing campaigns like "Joga Bonito" to promote playing soccer beautifully. By the 2006 World Cup, Nike sponsored over 45 top European clubs compared to Adidas' 41 and had grown its soccer business to $1.5 billion from $40 million in 1994. However, rivals like Adidas remained competitive and Nike will need to continue innovating its products and marketing to maintain its

Uploaded by

Annam Elizabeth
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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NIKE : FOOTBALL

NIKE HISTORY
1962- The precursor to Nike was founded by Bowerman and Knight, Blue Ribbon Sports (BRS).
Partnered with Onitsuka shoe distributer and started selling Tiger shoes at sports events.
1972- Nike was founded by Bowerman and Knight. Paid $35 to have the swoosh designed and
named the company after the Greek goddess of victory.
1981- Blue Ribbon Sports merges with Nike making it Nike, Inc.
1986- Nike broke the 1 billion dollar annual sales revenue.
1988- Nike gets the slogan Just do it.
1989- Nike starts selling soccer equipment in Europe.
1990- Nike was the leader in sports shoe and apparel.
2003- Acquired Converse.
2007 Acquired Umbro.
2008- Nike surpasses the $18 billion dollar annual sales mark.

NIKE FOOTBALL

Nike planned to produce jerseys for the National teams it sponsored at the World Cup of recycled plastic bottles.
Nike partnered with the RED foundation which worked with iconic brands.
Nike worked with storied advertising agency and long-time partner Wieden+Kennady.
Nike looked to learn from the past initiatives like Bootcamp and Joga Bonita to create a cutting edge digital offering.
Nikes design team partnered closely with top footballers, Cristiano Ronaldo, Zlatan Ibrahimovic, Alexandre Pato
Nike decided to use colour schemes to offer athletes a performance enhancement.
Nike has a laboratory, The NSRN that it uses to get ideas from the top athletes and produce innovative products.

World Cup 1994 United States:

Nike developed a new soccer boot Tiempo Premier for the World Cup.

Since Brazil was in the finals against Italy, Nike had several individual Brazilian member sponsorships
even though it did not have team sponsorship.

10 out of 22 members wore Nike cleats whereas none wore Adidas cleats.

After the victory of Brazil, Nike committed to partner with Brazilian National Team.

Launch of Nike Football Department.

Two guiding principles were adopted

- Create a new culture for football


- See the world through the eyes of a 13-year old football player/fan

In 1996, Nike signed the sponsorship deal for the Brazilian Team.

World Cup 1998 Paris


Stars from South America and Africa played for European leagues- Opportunity for globalization of football.
Release of the successful Airport Ad.
With Cristiano Ronaldos design preferences, The Mercurial the lightest-weight boot was created.

World Cup 2002 South Korea/Japan


The Secret Tournament marketing campaign was launched and featured the Nike Mercurial Vapor.
In 2000, Nikefootball.com was launched as an opportunity to innovate digitally.
It was Nikes first interactive marketing website

World Cup 2006 Germany


By 2006, Adidas had a slight market share lead- 35% and Nike had 33%.
Nike sponsored 45 of Europes top football clubs in comparison to
Adidass 41.
Value of Nike Football had grown from $40 million in 1994 to $1.5
billion in 2006.
Adidas was the official sponsor being a German company.
Joga Bonito- Play beautifully
A social media campaign to reach those who are passionate about football
globally.

Refocusing for South Africa


Target market shift
Silo shift
Digital shift
Bootcamp the Nike Football Training initiative for
the newly selected target-the football obsessed
teens(FOTs)

World Cup 2010 South Africa


The Nike Mercurial Vapor Superfly II
2010 Elite Series
Nike Football + (NF+)- initiative to offer innovative products like new football boots with value-added extras
like training tips, training trackers, guidance and videos.

INTERNAL ANALYSIS :
STRENGTHS
Nike has a huge brand image which helps them to attract more
customers.
Nikes product has global demand which why they offer their
products worldwide
Nike has a unique marketing strategy which helps them to
attract customer.
WEAKNESS
Nikes profitability ratios are hugely dependent on their
footwear products
Accusations of poor working conditions in the factories in
developing countries.

MARKETING MIX:

Product :Nike athletic apparel & equipment.


Price: Premium Pricing Strategy
Promotion: Sponsorships, social networks, YouTube, Boot Camp, Joga Bonita, Nike.com, NF+.
Place :World wide retail outlets, online, event sponsorships

5 PILLARS FOR INTEGRATED MARKETING STRATEGIES

Performance innovation.
Enablement innovation.
Connection at a deeper level.
Brand and business impact.
Timing.

PROBLEMS IDENTIFIED :

How can Nike increase their market share in football and obtain a dominant
market share, greater than Adidas?

How can Nike separate themselves from their competitors?

How should Nike incorporate sustainability?

How would Nike Footballs image need to evolve as the world cup
approached and after it ended?

NIKE VS. COMPETITORS :

Brand

Sales (in
millions)

Net Income
(in millions)

Sponsors
(Teams)

Nike

19083

1487

10

Adidas

15012

892

12

Puma

3509

324

ALTERNATIVE STRATEGY :
Sustainable Business Position
Pros:
Does not directly compete with Adidas.
Company Image.
Benefits to the environment.
No competition for sustainable brand position.
Cons:
May not appeal to FOTs
Quality vs. Green Products
Calls for complete repositioning

ALTERNATIVE STRATEGY :
Elite Athlete Positioning:
Pros:
Ability to attract top athletes.
Partnerships with athletes.
Attracts the target segment.

Cons:
Head-to-head with Adidas.
Risk with sponsorships (players).

RECOMMENDATIONS :
Nikes main focus should be about being innovative and use this as their competitive edge over their rivals. Their
advertisement was a great example of being innovative, their slogan Write the Future for 2010 world cup
campaign was a great hit .
Nike must also be innovative in terms of their products too, so that customers get attracted more often.
Nike should provide better working environment for its labor force so it can overcome the accusations that were
made which create a great negative impact towards Nikes brand image.

THANK YOU

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