Nike in South Korea analysis
Introduction of Company of Expertise 4 2. Entry Strategies in Country of Specialization 5 2. Discussions 5 2. Evaluation 6 2. Best Possible 3 Entry Strategies 6 2. Current promotion strategy 8 3. Place strategy 9 3. Current place strategies 9 Recommended place strategies 9 4. Conclusion 9 Market Mix Analysis 1. Executive summary Nike incorporated, as a leading visionary in athletic footwear has invented quite a number of footwear, including Air Max series. In golf, South Korean athletes are especially recognized, with the likes of Park Sung-hyun winning the women’s U. S. Open tour in 2017. The vibrant country also hosts annual cycling events like the Tour of South Korea. Apart from the field games, South Korea also holds the Pyongchang Marathon, every April. Nike’s Air Max as a line of footwear was first launched in 1987. Originally the shoe was invented by Tinker Hatfield.
Mr. Hatfield started out in the firms as an architect who designed of shops. Mr. intends to continue to sponsor and improve the lifestyle merits that the Nike brands provide their consumers. The world is dynamic, with constantly changing technologies, the diversification of social media and a shift in traditional media that enhances updates of new products at high speeds, thus increasing demand within the market. Increase in demand in the market warrants a reaction in supply in order to even out the demand and supply equation. Therefore, to stay relevant in the market, Nike seeks to continue its production and promotion in an even more aggressive manner than before (Kalin, 2017). Nike Incorporated includes many associates and holdings that additionally persuade the buyer resolves that customers have.
Targeting strategies by Nike aim immediate users, sports personalities and athletes. These techniques include sponsorship of products by professional and popular athletic team of individuals, sports teams in colleges well as celebrity athletes. Another strategy used by Nike is through sponsoring some of the athletic teams, thus having the teams showcase their product every time they are out competing. This method seeks to appeal to the staunch followers of that particular team to find interest in their products. The idolization of the team participants by their fans provides a good ground that the company, Nike, will reach new markets every time the team uses their products during competitions. The artists can produce a commercial touching on the benefits of one or more Nike products.
Since the artists are even better placed to communicate the language of South Koreans, and produce pieces that can easily get Koreans sing along to their tune, they stand a better chance to showcase the goodness of Nike products to their fans. This strategy can be successful towards reaching out to the non-sport lovers. Listening to the music and getting the message can make them be interested in Nike products even if they were not into sports (Cheng, 2005). Team sponsorship Nike can choose to sponsor some of the teams in the basketball league, in the soccer league and or some of the cyclist or golfers. The South Korean musicians definitely have a huge following because of the messages they portray to their fans.
To them, music is their way of communicating their thoughts. Consequently, they are idolized by the thoughts thay convey to their fan bases. Such avenues can be used by Nike Inc to reach out to the fans of the musicians. In as much as Nike produces sporty wear, there are some of their products that are not necessarily worn by only sports fans. The company also sells apparels such as jerseys and shorts, not to mention accessories such as golf clubs and soccer balls (Sawhney, 2004). Strengths of current product strategies • Stable market for the firm: Looking at the footwear from Nike, one major strength it has is the unwavering market it brings to the firm, thus building the brand image even more.
• Compliment in revenue generation: The accessory products also compliment the firm’s revenues as they also form part of the invention being carried out by Nike for future unfolding. Weaknesses of current product strategies • Expensive products: One notable weakness that comes with Nike products is the expensive nature of the products that may turn away willing consumers who don’t have much to spend on non-essential belongings. Price Strategies One major component of marketing is pricing. By raising the prices of their sneakers prices Nike managed to elevate the consumer’s view of the product (Sawhney, 2004). Strengths of current price strategy •The company drove up their mean selling prices. • Consequently, the price tactic is effective since the firm managed to add $168m to their total industry dollars.
Weakness of current price strategy • The price tactics has, however, changed the rates of acquisition of Nike products since people from developing countries may now not be able to access the products given the elevated prices. Recommended price strategy Nike's plan to outwit the competition involves improvement on how it exhibits itself to its consumers and concentrating on the apparent brand quality. The company needs, therefore, to partner with retailers in South Korea to ensure that their products reach their desired markets in the country. Current place strategies Nike distributes its products mainly in retail shops, and through their online shops. Strengths in current place strategies • Record purposes: from the retail shops and online stores, the firm is capable of tracking its revenue over desired periods of time from the vast distribution of the retail shops worldwide.
Weakness in current place strategies • With the drop of retail partners some of the consumers that relied on the laid off retailers may have difficulty in accessing the firms products in the future. Recommended place strategies A good place to continue advertising and selling Nike products may be through clearance outlet dealers. The impact of the 2002 World Cup on South Korea: Comparisons of pre-and post-games. Tourism management, 27(1), 86-96. Kwak, H. Jaju, A. Larsen, T. Sawhney, M. Balasubramanian, S. Krishnan, V. V. Creating growth with services. S. Patent Application No. Cheng, J. M. S.
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