Nike in Japan Group 2: Amanda Collins Preston Paynter Andrew Radka Amanda Rodwell William Walker
Aug 09, 2015
Nike’s Mission Statement“To bring inspiration and innovation to every
athlete* in the world”
*If you have a body, you are an athlete.
OverviewNike operates in over 160 countries on 6
different continents
Nike has headquarters in Portland, OregonHilversum, NetherlandsShanghai, ChinaTokyo, Japan
Unofficial Goal
To take over the top spots in athletic apparel in the
markets that they are not already
deemed as number 1
Where Expanding to and Why
Where: Japan
Why: Open stores in Japan because of slowing growth in
US marketNike had ties since it started importing Japanese
shoes before 1971
Nike’s Orientation to Global Marketing
Regiocentric
Master Brand- Universal Ideals
Adapts Marketing
Standardizes Products
SWOTStrengths: Instant Brand Recognition, Lean
Organization, Research and Development
Weaknesses: Heavily dependent on footwear market (60% of sales), low price pressures
Opportunities: Product development with subcultures, Broader Recognition
Threats: Rivals (Mizuno & ASICS started in Japan), Natural Disasters, Different culture
Competitive AnalysisRivals
Adidas/Puma- football or “soccer”; runningMizuno- created in Japan, Baseball/GolfASICS- created in Japan (49% Sales), part of
Onitsuka Tiger Co.Fila Korea -young population, running
How will they compete: Aggressive Marketing of Brand,
NOT Individual ProductsBig EndorsersSpecialty Lines
PESTEL/CAGE FrameworksPESTEL
High GDP/GDP per capitaHighly urbanizedHighly educated
CAGEShifting Individualism Importance of Status
Plan for ExpansionNike started in 1962: Importing Japanese
running shoes from independent contractors (Tiger Co.)
Made financial sense to open stores where already had factories (1981)
Allied itself with Nissho Iwai (6th largest Japanese trading company) to form Nike-Japan Corporation
Standardize Product, Adapt Marketing and Price
Marketing Mix AdaptedProduct: Baseball, Football emphasis.
Promotion: Brand recognition, Athletes, focus on mood and Japanese style
Price: Price leadership and value based pricing to gain market share.
Place: Focus shifted from the flagship store in Tokyo to more retail and outlet stores country-wide.
Connection to Universal Ideals
Michael Jordan quote: “It’s not about the shoes;” what it is about, undeniably, is the furthering of the world’s collective spirit.”
Powerful appeal
Have to resist localization for strategic reasons (won’t be profitable)
Difference in MarketingJapan’s way of advertising:
constant need for added cultural value must be linked to a kind of spiritual or cultural
enhancement “soft sell” importance: mood more important than
content itselfTaps into richness of Imagination/Absurd to western
audienceExample: Japanese Nike Commerical
ImplementationOpened stores in 1981
Penetration strategy: undifferentiated targeting approach
Open 16 factory outlets/9 retail stores- appeal to lower price points
Offer same brands- Nike, Nike Golf, Nike Pro, Nike +, Air Jordan, Nike Skateboarding
Added: SHA|DO Special Baseball Line, Nike ID
SubsidiariesAcquired and currently own:
HurleyConverse
Sold to refocus on core business lines:Cole Haan in 2013Umbro in 2012Bauer Hockey in 2008
Recently Announced to be Acquired:
USATF (United States Track and Field)
ExecutionSuccessfully entered in Japan by leveraging with Nissho
Iwai- created Nike-Japan
Immediately successful in Sales
Use Standardized Product/Brand Recognition- Nike “Swoosh”
Adapted Marketing (Focus on Mood & Soft Sell)
Catered to Subcultures (Adding Special Lines/Nike ID)
Established as low-end provider but looking to move into high-end because of increased competition today
Failed (decrease in revenue) a few times due to localization attempt
RecommendationsUse brand recognition to move into fashion -
Connects with mission statement (every “body” is an athlete)Ex: Selena Gomez/Jay-Z endorses Adidas
Appeal to youthful individualistic market/culture and advanced, technological culture (Tokyo Flagship retail specialty store)
Sponsor Athletic Teams in Country/UniversitiesEx: Mizuno & ASICS create casual uniforms for
Japan in Sochi Olympics
EvaluationFinancial Metrics- short term immediate success
Sales RevenueMarket Share (4% of Nike in Japan)
Marketing Metrics- long-term sustainabilityBrand ImpactPerceptionSocial Responsibility