MM2711 INTRODUCTION TO MARKETING A CASE STUDY OF NIKE, INC TUT002 - Group C Wong Mun Leong Moon 10580986D YUEN Hoi Ying Winnie 12101937D CHIU Chin Ting 12102278D BUATON Hon Ming Herman 12102347D Monday, 31 March, 14
MM2711 INTRODUCTION TO MARKETING
A CASE STUDY OF NIKE, INC
TUT002 - Group CWong Mun Leong Moon 10580986D
YUEN Hoi Ying Winnie 12101937DCHIU Chin Ting 12102278D
BUATON Hon Ming Herman 12102347D
Monday, 31 March, 14
ABOUT .....................- American Sportswear Company- Founded 1964- Wide range of products- World’s largest supplier of sportswear- Fortune 500 Companies
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TODAY’S AGENDA- Our Focus:
- United States- Greater China
- STP Strategies- Practice of 4Ps- Evaluations & Suggestions
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SEGMENTATIONUnited States Greater China
Geographic N/A Urban Cities
Demographic AgeOccupation
AgeIncome
Psychographic Lifestyle Personality
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TARGETINGUnited States Greater China
Differentiated Concentrated
Customers YouthAthletes
YouthFashionLifestyle
Products Sports Function Casual Wear
[1] How Nike Figured Out China. TIME Magazine. Retrieved from http://content.time.com/time/magazine/article/0,9171,725113-3,00.html
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PRICEUnited States Greater China
Air Force 1
USD85(~HKD680)
RMB769(~HKD980)
LeBron Ring King Tee
USD29.97(~HKD240)
RMB249(~HKD320)
Big Mac [1]USD4.62 USD2.74
[1] Big Mac Index, The Economist, Retrieved from http://www.economist.com/content/big-mac-index
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PRICEReason for Price Difference:
- Consumer Behavior- Luxury Culture [1]
[1] For Nike Marketing Strategy in Greater China. 2013. Retrieved from http://www.youzhilunwen.com/lxlw/yylw/scyx/20130814/4823_2.html
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PRODUCTUnited States Greater China
On online store:- >6700 products- of 20 different sports
On online store:- ~2100 products- of 8 different sports
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PRODUCTReason for Product Difference:
- Focus on Urban Youngsters [1]- Geographical Difference
- e.g. No Snowboarding in China- Cultural Difference
- e.g. Hockey is not common
[1] For Nike Marketing Strategy in Greater China. 2013. Retrieved from http://www.youzhilunwen.com/lxlw/yylw/scyx/20130814/4823_2.html
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PLACEUnited States Greater China
Exclusive Nike Store>20000 retail accounts worldwideIndependent / Licensed distributors
Exclusive Nike Store>20000 retail accounts worldwideIndependent / Licensed distributors
- Online Store since 1999- MANY Licensed Multi-brand distributors- e.g. Amazon, Eastbay, Zappos
- Online Store since 2008- FEW licensed online distributors- e.g. TMall
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PLACEReason for FEWER online distributor in China:
- Reputation of Online Multi-brand Store [1]- Replica Nike products in China [2]
- Hard to identify- Lack confidence to buy online
[1] Nike Channel Conflict. Retrieved from http://www2.nkfust.edu.tw/~smguo/teaching/student/N964050014-%B8%EA%BA%DEHW2.pdf[2] 專賣店門口賣假鞋,攤主坦言”沒發票也不保真”, Sina News, 2013. Retrieved from http://ln.sina.com.cn/news/b/2013-06-22/065746811.html
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PROMOTIONAdvertisingAdvertising
United States Greater China
- Online Clearance Sale- use of Social Network- >17 million on [1]- ~3 million on [1]- >0.3 million on [2]
- WeChat- e.g. Nike Sports Festival Game
[1] Edwards, J., A Breakdown Of The Top Retailers On Facebook, Twitter. Retrieved from http://www.businessinsider.com/a-breakdown-of-the-top-retailers-on-facebook-twitter-and-pinterest--by-the-numbers-2012-11?op=1[2] http://www.socialbakers.com
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PROMOTIONReason for Use of Social Network:
- Web 2.0- Digital Marketing- Targeting Teenagers & Youngsters
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PROMOTIONSponsorshipSponsorship
United States Greater China
- Focus on Athletic Spirit, Desire of exercising- Enhance Reputation- Seldom mention characteristics of products
- Focus on Athletic Spirit, Desire of exercising- Enhance Reputation- Seldom mention characteristics of products
- Allyson Felix- Kobe Bryant
- Liu Xiang- Li Na- Yi Jianlian
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PROMOTIONReason for Sponsorship:
- Establish Emotional Contact
[1] Nike Just Doesn’t Do It With Lost Sales Year in China, Bloomberg News. 2013. Retrieved from http://www.bloomberg.com/news/2013-07-16/nike-s-lost-year-in-china-serves-as-cautionary-tale.html
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PROBLEMSUnited States Greater China
- Over-dependence on “Sports Hero” [1]
- Wrong Focus- Changing consumers’ taste- Parental Culture
[1] One Of Nike's Core Strategies Is In Danger. Retrieved from http://www.businessinsider.com/is-nikes-hero-athlete-strategy-in-jeopardy-2013-2
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SUGGESTIONS- STP:
- Segmentation:- Expand to 2nd/3rd-Tier Cities
- Targeting:- Target on Youngsters [1]- Develop subsidiary, e.g. Adidas NEO
[1] Nike Just Doesn’t Do It With Lost Sales Year in China. Retrieved from http://www.bloomberg.com/news/2013-07-16/nike-s-lost-year-in-china-serves-as-cautionary-tale.html
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SUGGESTIONS
United States Greater China
Price Lower Price
Product Quality ControlLabour Rights More diverse style
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SUGGESTIONS
United States Greater China
Place Direct Retail StoreLower price pressure
Use existing popular platform
e.g. TaoBao
Promotion Focus on wide range of products Sponsor Traditional Media
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CONCLUSION- Good Marketing Strategies in USA- Emotional Contact- Good brand image
- Ineffective Marketing Strategies in Greater China- Targeting- Product- Lead to Bad Sales revenue
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CONCLUSION- Focus on Footwear market- Increase presence of others products- Target the “RIGHT” people
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