Background on Football and the FIFA World Cup:

Football (Commonly known as Soccer in the U.S.) was and still is the most popular
sport in regards to viewership worldwide. In 2006 it was estimated that the sport of
football was played by more than 265 million people, and continuing to grow (These
estimates were up from 2000, estimated 42 million). Profession leagues exist
throughout the world and the most popular teams were in Western Europe. The
history of modern day soccer dates back to 1863, although there was early
evidence of soccer being played as a sport in China between the 2nd and 3rd
centuries BC. In China, it was mentioned that people dribbled leather balls by
kicking it into a small net. Recorded facts also support the fact that Romans and
Greeks used to play ball for fun and leisure. (Jetzen, 2013).
Background of Nike: Co-founded by Phil Knight (former University of Oregon Track
Athlete) and Bill Bowers, initially under the name Blue-Ribbon sports in 1962. After a
business relationship ended with their overseas manufacturer, they changed the
name in 1972 to what is now known as Nike. In 1975 Nike signed its first of many
big name athletes in Steve Prefontaine. A local University of Oregon track athlete
who at the time who held every known track record from the 2k to 10k meters.
(Please note that ultimately, Steve Prefontaine was #1 in his sport as this has
meaning throughout the case to Nikes overall strategy). By 1979 Nike owned 50%
of the running shoe market share (As this was there focus). After taking the leap
and going public in 1980, Nike expanded into other sports outside of running. In
1985, Nike managed to sign some basketball player named Michael Jordan (Many
say the greatest basketball player, ever in the NBA.and simply an iconic
figure). By 1990 Nike was the leader in shoes and apparel and dominating running,
basketball, tennis and cross training. In 1996, the division known as Nike golf signed
a promising young golfer named Tiger Woods (Only to be a golf phenom and
iconic figure and #1 at his sport for years to com). In 1999, Lance Armstrongs
made a miraculous comeback from cancer to win the first of seven straight Tour de
France. Nike stood by him, when other sponsors he had left. All in all, one thing Nike
prided itself on was innovation and being groundbreaking. Nike also was gaining the
reputation for the big ticket endorsements of leading and upcoming athletes. By
2009 Nike was the #1 manufacturer of athletic clothing and shoes.
According to Tony Bignell (Footwear Category Director), Nothing ever stops; we just
keep learning and innovating (referring to Nikes R&D) (Johnson, 2011). This is a
great stopping point for our group to focus on the Major Issues Nike Faces in Football
this Nike Case: World Cup 2010 (Questions to Pose)
1. How to replace Adidas at the #1 position in preferred football athletic brand?
2. Adidas has been the leader for years, how does Nike close the market share gap?

3. Cannot Market (present commercials) Football products during World Cup, only
Adidas can as official sponsor? (Not able to market their product with billions
watching)
4. Strategy development leading up to world cup, each year same goal (gain more
market share, but how to reach the consumer, who is Nike Targeting and how do
they target?
5. Is the Nike strategy of seeping into pop culture and partnering with respective
sports top athletes a strategy that can be used in football?
Identification of the Key Issue
Besides the obvious limited marketing abilities, Nike must overcome other concerns
that are associated with operating with in Africa. Nike must consider creative ways
deal with Africas poor public infrastructure. To operate and market in
underdeveloped regions means large amounts of capital are needed to address the
added expenses that may include and are not limited to logistics, employee
support, and budget management. Africa political and business markets have
become synonymous with bribery and extortion. Both can have a devastating
impact on a companys bottom line.
The challenge is how to reach the largest number of consumer considering the
limited marketing capabilities due to the sponsorship agreement with Adidas. Nikes
traditional marketing strategy has relied heavily on televised promotions of its
products and endorsement partnerships with top tier athletes in their respective
sports. With television and internet ads being restricted for Nike during the 2010
World Cup, there will be added cost of obtaining skilled professionals who are
familiar with the national and local needs of the desired demographic. This will be
costly and time consuming. Poor placement and untimely delays could harm brand
strength and reputation in the region. The timing of product and endorsement
releases will require extensive monitoring. Nike must also focus on how best to
reach their target market of 17 year old males. The obstacle faced when trying to
reach this demographic without using the internet or television will be difficult but
not impossible. There will be issues with making strong relevant connections with
their audience if the traditional positioning strategy cannot be implemented.
To overcome the 40 year association that Adidas has as the official FIFA sponsor,
Nike must make sure that there content and images are not lost in translation. To
grow their position within the target market Nike will have to implement a
consistent approach to demographic in question. There placement and planning
should be directed at maintaining and growing with their young consumer
Listing of Alternative Course of action:

Nike had to remain proactive and innovative to stay ahead of their competitors. The
ability to continually build the Nike brand through celebrity marketing, all while
changing the environment of marketing by redirecting to a different generation of
consumer were the alternative course of action Nike.
Nike ability to remain proactive with new opportunities by means of investing a
significant amount of money in big name athletes such as Michael Jordan, Tiger
Woods, Lance Armstrong before each athlete reached their highest potential was an
innovative approach to staying on top. Each athletes success in their individual
field of sport, gave the illusion to the market that Nike brand products gives those
whom use the ability to perform at the highest level. As the Nike sponsored
athletes performance reaches its peak, Nike is able to stay above their competitors.
New opportunities to create new products lead to other opportunities that changed
the environment of marketing efforts.
Other opportunities where taken to shift Nikes target market of 12-to-14 year old
consumers. The value of both understanding and targeting to the right age groups,
was very key in Nikes marketing strategy to continue to build and gain market
share of the football apparel market. After the World Cup 2006 Nike decided to focus
their marketing efforts to the 17 year old consumer. The Nike Football team felt this
older group were more independent in their ability to buy and develop a brand
loyalty. Since every group does not feel the same way about the products, Nike
focused on the exceptions of an older generation wanting to be better in sports;
therefore, Nike acknowledged their enthusiasm on how Nike products can improve
their performance. Effectively grabbing the attention of generational lifestyles is
finding the ability to grab their attention and focus on the lifestyles and social
values that influence their buying (Lake, 2013).
Evaluation of alternative courses of action:
Nikes strategy to connect their brand to the world stage during the 2010 World Cup
will take several approaches. To seek the attention of potential buyers to the Nike
brand, the companys CEO and business team evaluated several meaningful
courses of action. The goal was to build a brand that was competitive in the markets
above all brands that was a threat and transcend football as well as other sports
into the Nike culture. Nike wanted sustainability in their products, they want to
create in the minds of athletes that Nikes innovation can improve their
performance. Nike sought alternative ways to promote the Nike brand to a broader
audience through various means of communication innovations. They wanted to
continuously promote their brand through technology; the primary goal was to
create a dialogue with the world of football and other sports in way that is
innovative, while also developing an emotional connection with the culture while
remaining authentic. To implement each phase of their alternative strategy, Nike
used data collected from various sources of research. Communication and feedback
from athletes was instrumental in the technology phase of developing a brand shoe

that could potential over exceed the expectation in the minds of sports performers.
Marketing through the means of advertising in several media outlets was key
because buyers needed to connect to the brand and have a feeling for what they
are buying. To maintain sustainability and stay true to the Nike brand, the team
designed a product to connect to causes that impact the world in a way that would
re-invent the product and show social responsibility. Nike maintained a competitive
edge through on going market research and advance innovation in all sports
communication channels (print & TV advertisement, social media,
infomercials/commercials, collaboration with sport teams, etc) . Finally the team
implement high profile celebrity athletes to market their brand by showcasing their
performance while incorporating Nike product drivers to deliver the best, create the
best, message the best, and staying ahead of the best company innovations in the
industry. Nikes course of action was to be the best while maintaining authenticity
with their brand/product.
Recommendation of the best course of action:
Recommendation to Nikes course of action is to implement cutting edge technology
in every aspect of their companys branding and products overall. Researching
advance knowledge of communication channels. Putting out fact base research with
real athlete is instrumental in winning over a broader spectrum of people who will
support the brand and utilize Nikes product. Branding is essential because the Nike
swoosh logo is known all over the world, however, Nike is most notable by its
athletes endorsement by wearing the Nike product and their testimony of its
innovative design that help increase their level of performance. Nike should
continue to prove that it is a sustainable and responsible company by supporting
causes and programs around the world that is true to its brand, Nikes support of
AIDS research while introducing their cutting edge products during the 2010 World
Cup is an example of how the company used its brand and revenues to support
cause that resonate in all sports fans and people in general. Nike will need to
continue to switch its target segmentation in a manner that is appealing to both age
groups. Earlier on Nikes primary focus was on very young sports football fans but
soon realize that other sports attracted several people with various lifestyles and
agendas as it relates to fitness and health. Researching and developing the fitness
and sports world was ideal in introducing other sports apparel, which has increase
Nikes revenue sales and has made them one of the leading sports brand around
the globe.