Question

Strategy and planning case study#2

The problem as one of the biggest sports brands in the world, Nike was not struggling for exposure or attention. However, the brand was noticing that its traditional, big-budget advertising strategy was seeing fewer returns over time. The biggest market for Nike products consists of young people between the ages of 15 and 25, who spend 20% more with Nike than any other group. But these Generation customers weren’t paying attention to big, top-down media, and were looking for a brand that offered constant change and innovation, not just the same old thing over and over. Nike realized that it needed a new approach to reach this digital audience.

Q1. Technology played a main role in changing customers’ purchasing behavior. How?

Q. What Nike must do to reach the new generation “the international digital audience”?

Answer 1

(1) Technology is playing important role is changing the buying behavior of the customers in the following way:

• With the help of improved technology, the customers reach to variety of products increases, thus changing their buying behavior.
• With technology, customers can search for features of any product and easily compare the features before making buying decision.
• Products can be made available to customers with different features, anytime and anywhere across locations.
• The reach of customers to international products has increased hence changing the mindset of customers about buying products.

(2) In order to reach the new generation, Nike can follow following strategy:

• Customization of the products is what can attract the international audience towards its products.
• Nike should try to make its product available on online platforms all the time.
• Easy home delivery should also be made available by the company at different countries and locations.
• Comparison of the product with other products should be made possible by the company from any location by any of the customer.