NIKE FOOTBALL:

WORLD CUP 2010 SOUTH

AFRICA

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Subtitle

ADITI CHATURVEDI
ABHIRUP
CHAKRABARTI
AKASH
ANUJ SHINDE
APOORV
SHRIVASTAVA
ARNAB MUKHERJEE
ARYA SWAYAMSHREE
ASHISH PARAKH
BAIDIK
CHAKRABORTY

N IKE & FIFA

NIKE : Leading shoe and sports apparel company in the
world
FIFA WORLD CUP: Tournament held every 4 years
between 32 qualifying nations around the world

H istory
2008
1989
1986
1972
Founded
by
Bowerma
n and
Knight

1981
Blue
Ribbon
Sports
merges
with Nike
and
makes it
Nike, Inc

Nike
broke the
1 billion
dollar
annual
sales
revenue

198
8

Nike
gets the
slogan
Just Do
It

Nike starts
selling
Soccer
equipment
in Europe

2002

Nike
surpasses
Nike
$18 billion
endorses
Manchester dollar
United Team revenue

Problem Statem ent

Adidas has always been the

official sponsor of the FIFA
World Cup and the leader in
the football market.

How can Nike increase their

market share in football and
obtain a dominant market
share greater than Adidas

Focus:
How to separate themselves from
competitors?
What other platforms can Nike
release their content through?

M arket opportunity
Football(Soccer) is the most popular sport in the world by viewership
and participation
-Potential of 20bn market and is in good shape
-New business opportunities in emerging countries like china and India
where fan base is
ever increasing
-$70bn fantasy football market

FIFA Estim ates

-265 million play
-2006 WC-Drew TV viewership of 26.29 billion
over the course of the event
-3 billion(1/2 the world) watched the world cup
final

Threats
1. Lack of international recognition
2. Highly competitive market
Adidas
Puma
New balance
3. Adidas owns contracts to right for media time.
It also gets access to websites. No other brand
could air during TV time and internet.

Internalanalysis(N ike)
Strengths and Weaknesses

Strengt
h

Weakne
ss

Authentic top athlete

sponsor
Innovators

Sweat shop Image

US based company

N IKE VS CO M PETITO RS
Brand

Sales (Millions)

Net Income
(Mil)

Sponsors
(Teams)

Nike

$19,083

1487

10

Adidas

$15,012

892

12

Puma

$3509

324

AN ALYSIS O F CO M PETITO R : AD ID AS
STRENGTHS
More team sponsorships
Longer Industry stay
Official Sponsor of FIFA
(Web and TV)
WEAKNESSES
Less Financial muscle
power

O BJECTIVES: FIVE PILLARS

Performance Innovation
Enabling Innovation
Connecting at a deeper
level
Brand and business
impact
Making an impact before
the 2010 WC

Strategic Alternative 1
Sustainable business position
Position strategy to be
followed:
To secure an unoccupied position
in the market

Strategic Alternative 1

Pros

Cons

Does not directly compete with Adidas

May not appeal to FOTs (Football

Obsessed Teens)

Does not match with the current

company image

Change in positioning as quality

products vs green products

Beneficial for the environment

More difficult to implement

No competition for sustainable brand

position

Calls for complete repositioning of the

brand

 Relative resources: Money and access to retail

outlets
Competitive response: Adidas responds or falls
behind.

Demand was not equally distributed worldwide

Criteria Alternative 1

Strategic Alternative 2
Elite Athlete Position
Position strategy to be followed:
Strengthening current position and
dispositioning competitor (Adidas)

Strategic Alternative 2

Pros

Cons

Core competency

Head to head with Adidas

Ability to attract top athletes

Risk with sponsorships (players)

Partnerships with athletes

Customization
Have the resources

 Relative resources: Money and knowledge.

Competitive response: Adidas compete for same

resources.
Demand: Athletes are the most demanding
consumers of Nike.

Criteria Alternative 2

Recom m endations

Elite Athlete positioning

Strengthening current position &
de-positioning competitor(Adidas)

M arketing M ix
Product: Nike Athletic apparel & equipment
Price: $275-$400 Cleats- Premium athletic gear
Promotion: Sponsorships, Social Networks, YouTube,
Nike.com
Place(Distribution): World wide retail outlets, online and
event sponsorships

Case Questions Addressed

How should the team at NIKE incorporate sustainability?

Minimize environmental footprint

- Focused on eliminating waste through more efficient product design and manufacturing technologies

- Diverted 92% of total waste from landfill and incineration without energy recovery
- Two-fold energy strategy focuses on strong efficiency measures and a transition to renewable sources

Transform Manufacturing
- Redesigning the supply chain

- Innovating the role of the worker

- Innovating the role of technology

AT NIKE, WE BELIEVE IT IS NOT ENOUGH TO ADAPT TO WHAT THE

FUTURE MAY BRING WERE CREATING THE FUTURE WE WANT TO
SEE THROUGH SUSTAINABLE INNOVATION
- Mark Parker, President and CEO, NIKE Inc.

Case Questions Addressed

w could Nike use the World Cup to start and then continue a social media conversatio
tential customers?

Launch a team and player affiliation campaign

Ask members to register online and pledge their allegiance to their favourite team
Pick One role model in the form a player participating in the world cup
Depending upon the performance of the team and player points can then be assigned to
each individual
Newsletters can be dispatched to individual users based on their choice of favourite player and team
New Product arrivals can be marketed to potential buyers through these users
New product design feedback can be obtained from these individuals

THERE IS ONLY ONE BOSS, THE CUSTOMER

- Sam Walton, SalesForce

Case Questions Addressed

Was the shift by Nike to 17 year olds the right decisions?

YES
- 17 year olds represent the youth and prime age to step into professional football
- At this age, professionals are raring to go and chase their dreams
- Nike can provide the perfect assistance to these youth by satiating their appetite
for success by providing the best in class kits
- At this age, the youth look up to their idols and try to emulate them. This is the right time for NIKE to
sponsor reputable and socially visible world class athletes as influencers
- By targeting their marketing campaign at this age group, NIKE would ideally be in pole position to take
advantage of potential future stars in the making and tie them down to lucrative sponsorship deals

REWRITE HISTORY, REDEFINE THE POSITION

- NIKE Inc.

Case Questions Addressed

w would Nike Footballs image need to evolve as the World Cup approached and after

As the World Cup Approached

- Ensure that their image is epitomized by the appropriate teams and players at the World Cup
- Ensure that every model player endorsement and advertisements are up and running at least a couple
before the start of the tournament
- Social and online campaigns must be up and running at least 100 days prior to the start of the tournam

As the World Cup Ended

- Keep up the social media and online campaign momentum in order to avoid registration cancellations
- Ensure that at least a large proportion of players are Nike sponsored in the World Cup final
- Analyse player endorsements and returns from individual player and campaigns

WITHOUT FOOTBALL MY LIFE IS WORTH

NOTHING
- CR7

Thankyou!