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Case Report

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Q1: What are the pros, cons and risks associated with Nike’s core marketing strategy?
Nike believes the "pyramid influence" that the preferences of a small percentage of top athletes influence the product and brand choice, so Nike contracted with high-profile and influential athletes, and also acts as a sponsor for leagues, local clubs and national teams to advertise and promote their products to customers.
Nike put heavily proportion in their marketing strategies and products deign. In order to dominate the industry and keep competitive in the market, Nike continued to expand across geographic markets and products categories to respond to the market trends and changes in consumer preference through various marketing strategies.
  * Pros of Nike’s core marketing strategy:
  a) Advertising and Promotion
Nike’s marketing campaigns have always featured accomplished athletes. Nike continues to partner with some high-profile and influential athletes, coaches, teams, and leagues in different areas, such as Michael Jordan, Tiger Woods and Roger Federer. Furthermore, Nike also acts as a sponsor of leagues, local clubs and national teams, for example, Nike sponsored several teams and athletes in 2008 Summer Olympic Games, the aggressive sponsorship strategy helps to boost its sales. In the match, the logo of Nike can be easily seen from these athletes’ footwear, apparel, equipment and almost everywhere when these athletes appear, it can subsequently draw their customers, especially the athletes’ big fans’ attention to Nike’s products. Overall, Nike’s aggressive advertising campaigns, celebrity endorsements and quality products all enhance their brand and image.
  b) Price
Because of the high costs of raw materials, marketing budget, the costs for innovations in technology and so on, Nike usually set relatively higher price than its competitors. As a result, the targeted consumers of Nike are those who care more about the utility and quality of the products...

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