Nike Pyramid Of Influence Analysis

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Nike is the leading brand for athletic apparel and footwear in the world. Nike’s core marketing strategy is to use the “pyramid of influence” approach. In that approach, Nike looks to small number of top athletes to promote the use of their product. In the early years, running legend and international track star, Steve Prefontaine, became the first spokesman. Nike was fortunate to contract another athletic legend, Michael Jordan, as a spokesperson. Nike took a gamble with Jordan, but the dividends proved to be monumental in Nike’s growth using the pyramid of influence strategy. As the Nike Air Jordan shoeline hit the shelves, revenues hit over $100 million dollars in the first year alone (Keller and Kotler, 2012, p. 29). There are many …show more content…
Advertising with celebrity athletes promotes success of a brand. Nike has done this in basketball, track and field, golf, and soccer. They method of advertising and promotion has increased Nike brand awareness.
The majority of Nike’s customers are athletes, which is important because of the usefulness that comes with the product. Nike has made several contracts with athletic teams; resulting in a large customer base who are likely to purchase. Many Nike customers prefer quality of product over price. This has allowed Nike to sell their products at a higher price than its competitors. Customers then develop a loyalty to a product and price is not a factor when choosing a quality product that they know will stand
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Adidas has separated itself by specializing in products among a more diverse clientele. Nike’s main distribution market is within the United States while Adidas focuses on the European market. Expanding overseas could also be risky for Nike. The exchange rate, fuel price fluctuations, and inflation rates may be unstable long term for Nike.
The risks Nike faces with its core marketing strategy are both internal and external. Nike must follow the fashion trends in today’s market. If the Nike does not follow the global trend its competitors will capitalize on that and make a move. Additionally, women are increasingly becoming more conscious on fitness. If Nike does not market women in setting the trend they may find themselves as a follower behind its competitors.
As a major competitor of Nike, Adidas needs to spend more money on advertising. In doing this, Adidas needs to be innovative. One way for Adidas to do this is by following the trends in technology. Nike has a partnership with Apple with the Nike+ technology. Apple and Samsung are the leading technology companies. It would be smart for Adidas to partner with Samsung to provide a similar

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