Nike Case Study

1112 Words Apr 24th, 2012 5 Pages
Case Study- Nike

1. Discuss how Nike's growth can be attributed to its targeting of diverse market global segments.
In the 1960’s Nike was only making running shoes. At this point in time not many people knew of Nike or the Nike swoosh. In order to increase brand awareness, they started paying athletes to wear their shoes. However, very soon Nike learnt that in order to be a global brand they needed to appeal to different market segments, not just athletes. Hence, they then decided to tap more markets. In order to d so, they discovered 3 very distinctive market segments that they could attract.

The highest on the pyramid were the Ultimate/Performance Athletes. These included big names in the fields of running sports. They are
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2. How did Nike penetrate the European soccer footwear market?
Entering the European market would be a challenge for Nike because of Adidas, a German sports brand, already prevalent in the market. Nike knew it had to do something really strong and powerful to make a presence in the continent of Europe. Nike decided to enter the European market through soccer. They realized that if they truly wanted to be a global brand, they could not leave the sport of soccer behind and had to create a great product that would be able to connect with the soccer players. They also diversified to soccer to be more international. Unlike the strategy they used for the American market, in order to gain more brand awareness in the European market Nike started to support some of the major football championships in the continent. They increased their budget from 10million dollars to 100 million dollars to enter the European market. They also started associating the brand to world known soccer legends like Ronaldo and paired up with the winning team of the world cup soccer tournament. This made people believe that Nike was a performance shoe that was used by major athletes all over the world. This largely increased their awareness and also their revenues. Their profits went to billions form millions. Today, anyone can easily tell that the Swoosh means Nike. 3. What are the key driving forces behind Nike’s international competitiveness?
Today 97% of the people

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