Nike in Japan

Group 2:Amanda CollinsPreston PaynterAndrew Radka

Amanda RodwellWilliam Walker

Nike’s Mission Statement“To bring inspiration and innovation to every

athlete* in the world”

*If you have a body, you are an athlete.

OverviewNike operates in over 160 countries on 6

different continents

Nike has headquarters in Portland, OregonHilversum, NetherlandsShanghai, ChinaTokyo, Japan

Unofficial Goal

To take over the top spots in athletic apparel in the

markets that they are not already

deemed as number 1

Where Expanding to and Why

Where: Japan

Why: Open stores in Japan because of slowing growth in

US marketNike had ties since it started importing Japanese

shoes before 1971

Nike’s Orientation to Global Marketing

Regiocentric

Master Brand- Universal Ideals

Adapts Marketing

Standardizes Products

SWOTStrengths: Instant Brand Recognition, Lean

Organization, Research and Development

Weaknesses: Heavily dependent on footwear market (60% of sales), low price pressures

Opportunities: Product development with subcultures, Broader Recognition

Threats: Rivals (Mizuno & ASICS started in Japan), Natural Disasters, Different culture

Competitive AnalysisRivals

Adidas/Puma- football or “soccer”; runningMizuno- created in Japan, Baseball/GolfASICS- created in Japan (49% Sales), part of

Onitsuka Tiger Co.Fila Korea -young population, running

How will they compete: Aggressive Marketing of Brand,

NOT Individual ProductsBig EndorsersSpecialty Lines

PESTEL/CAGE FrameworksPESTEL

High GDP/GDP per capitaHighly urbanizedHighly educated

CAGEShifting Individualism Importance of Status

Plan for ExpansionNike started in 1962: Importing Japanese

running shoes from independent contractors (Tiger Co.)

Made financial sense to open stores where already had factories (1981)

Allied itself with Nissho Iwai (6th largest Japanese trading company) to form Nike-Japan Corporation

Standardize Product, Adapt Marketing and Price

Marketing Mix AdaptedProduct: Baseball, Football emphasis.

Promotion: Brand recognition, Athletes, focus on mood and Japanese style

Price: Price leadership and value based pricing to gain market share.

Place: Focus shifted from the flagship store in Tokyo to more retail and outlet stores country-wide.

Connection to Universal Ideals

Michael Jordan quote: “It’s not about the shoes;” what it is about, undeniably, is the furthering of the world’s collective spirit.”

Powerful appeal

Have to resist localization for strategic reasons (won’t be profitable)

Difference in MarketingJapan’s way of advertising:

constant need for added cultural value must be linked to a kind of spiritual or cultural

enhancement “soft sell” importance: mood more important than

content itselfTaps into richness of Imagination/Absurd to western

audienceExample: Japanese Nike Commerical

US vs. Japan Ad

US Advertisement

Japanese Advertisement

Lebron James Cultural Differences

ImplementationOpened stores in 1981

Penetration strategy: undifferentiated targeting approach

Open 16 factory outlets/9 retail stores- appeal to lower price points

Offer same brands- Nike, Nike Golf, Nike Pro, Nike +, Air Jordan, Nike Skateboarding

Added: SHA|DO Special Baseball Line, Nike ID

SubsidiariesAcquired and currently own:

HurleyConverse

Sold to refocus on core business lines:Cole Haan in 2013Umbro in 2012Bauer Hockey in 2008

Recently Announced to be Acquired:

USATF (United States Track and Field)

ExecutionSuccessfully entered in Japan by leveraging with Nissho

Iwai- created Nike-Japan

Immediately successful in Sales

Use Standardized Product/Brand Recognition- Nike “Swoosh”

Adapted Marketing (Focus on Mood & Soft Sell)

Catered to Subcultures (Adding Special Lines/Nike ID)

Established as low-end provider but looking to move into high-end because of increased competition today

Failed (decrease in revenue) a few times due to localization attempt

RecommendationsUse brand recognition to move into fashion -

Connects with mission statement (every “body” is an athlete)Ex: Selena Gomez/Jay-Z endorses Adidas

Appeal to youthful individualistic market/culture and advanced, technological culture (Tokyo Flagship retail specialty store)

Sponsor Athletic Teams in Country/UniversitiesEx: Mizuno & ASICS create casual uniforms for

Japan in Sochi Olympics

EvaluationFinancial Metrics- short term immediate success

Sales RevenueMarket Share (4% of Nike in Japan)

Marketing Metrics- long-term sustainabilityBrand ImpactPerceptionSocial Responsibility

Thank YOU!

Any Questions?