I.

History

Nike's Football division needs to devise a strategy to excel at the 2010

World Cup games in South Africa. Nike has gone from a niche player in the
market for football apparel and footwear in 1994 to a formidable competitor to
Adidas in 2008 (with revenues of over $1 billion for the sport). The case traces
how Nike has gone about making this transformation and its activities at each
of the World Cups since 1994.
For the upcoming World Cup in South Africa, Nike has decided to
change its target market focus and to use digital and social media platforms to
connect more extensively with consumers. In addition, Nike plans to launch
innovative new boots and engage in corporate social responsibility and
sustainability initiatives. The company has to do so in light of competition from
archrival Adidas and the pressure of succeeding on the biggest stage in
football, with billions of people around the world watching. Nike and Fifa
leading shoe and sport apparel company in the world. Tournament held every
4 years between 32 qualifying nations around the world.
History of Nike

1962 The precursor to nike was founded by Bowerman and Knight,

Blue Ribbon Sports (BRS). Partnered with Oniitsuka shoe distributer

and started selling Tiger Shoes at sports events.

1972 Nike was founded by Bowerman and Knight, paid $35 to have
the swoosh designed and named the company after the Greek

goddess of victory.
1981 Blue Ribbon Sports merges with Nike making it Nike, Inc.
1986 Nike broke the billion dollar annual sales revenue.
1988 Nike gets the slogan Just do it from a young grade girl in dallas,

TX.
1989 Nike starts selling soccer equipment in Europe.
2002 Nike signs on with Manchester United making them Nikes first

endorsed soccer team.

2008 Nike surpasses the $18 billion dollar annual sales mark.

II.

Problem

Adidas has always been the official sponsor of the FIFA

World Cup and Leader in the football market.
1) How can Nike increase their market share, greater than
adidas?
2) How can Nike separate themselves from their competitors?
3) What other platforms can Nike release their ads through?
Content
Timing of release
How to ensure a connection with a large viewership
Target Market

III.

Recommendations
After analyzing Nike Football case, and our strategic
choice is Elite Athelete Positioning. Football (soccer) is the most

popular sport in the world by viewership and participation.

FIFA estimates :
1) 265 million play
2) 2006 WC Drew TV viewship of
3) 26.29 billion over the course of the event
4) 3 billion (1/2 the world cup final
5) Most watched sporting even
Treats :
- Lack of international reputation
- Competitors
o Adidas
o Puma
o New Balance
- Adidas owns contracts to rights for media time. Also gets
acces to websites (No other brand could air during TV time

and internet).
Strenghts
- Authentic : Top athlete sponsors
- Innovators
- Brazil!
Objectives : Five Pillars
- Performance Innovation
- Enable Innovation
- Connecting at Deeper level
- Brand and Busines Impact
- Before the world cup

1. Strategic Alternative
Sustainnable Business Position & Securing an unoccupied position

Pro
1. Does not directly compete
with adidas

Contra
May not appeal to FOTs

2. Company Image

World not as green

3. Benefits to the environment

Quality vs Green products

4. No
competition
for More difficult to implement
sustainable brand position

Criteria :
1) Demand : Not equally distributed world wide
2) Competitive Response: Adidas imitates or falls behind
3) Relative Resources : Money and acess to retail outlets

2. Elite Athelete Position

Strengthening current position and depositioning Competitor
Pro
Contra
1. Head to head with
adidas

Core Competency

2. Risk with sponsorships

Ability to attract top athletes

Patnerships with athletes
Customization
Have the resources

Criteria :
1) Demand : Athletes are the most demanding consumers
of nike
2) Consumers emulate elite athletes
3) Competitive Response : Adidas compete for same
resources
4) Relative Resources : Knowledge ; Already established
patnering with elite athletes

Nike must keep doing continuously improvement for the products and
partnership with athlete, improve the sophistication for the Nike+ and Make
any even to connecting with the consumers and any campaign about sports
and healthy.

Small Paper
Kelompok

NIKE FOOTBALL :
WORLDCUP 2010 SOUTH AFRICA
Dosen :

Ike Janita Dewi, MBA., Ph.D.

Diajukan Oleh:
Floren Margaretha Sinuraya
Imanuel Nugraha Selaksa
Rizal Arifianto
Kelas Reguler 36

PROGRAM STUDI MAGISTER MANAJEMEN

SEKOLAH PASCA SARJANA UNIVERSITAS GADJAH MADA
JAKARTA
2014