VIETNAM MARITIME UNIVERSITY

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INTERNATIONAL MARKETING

Final exams

Group 2: MAI THI QUYNH HUONG - 83339

NGUYEN THI NGOC YEN - 85646
VU THI HONG NHUNG - 84352
VU SON BACH
DO LE HAI YEN - 85627
Class: BMM1001
Instructor: Dr. Nguyen Hai Ninh

Hai Phong, June 2, 2021

I. Introduction
 II. SWOT and TOWS analysis
III. Identify target market
IV. Competition analysis
V. Draft strategies and entry modes for international expansions
VI. Conclusion
VII. References
VIII. Table of contents

CHAPTER I. INTRODUCTION
1. An Overview of Nike
 Nike, Inc. is an American multinational corporation. Nike is headquartered in Beaverton,
Oregon, USA. It was founded by Bill Bowerman and Phil Knight in 1964. The company takes its
name from Nike, the Greek goddess of victory. The company specializes in athletic wear,
providing footwear, apparel, athletic equipment, and accessories.
Nike’s primary goal is to supply athletes with exceptional products and wearables that aid them
in better sports performance. However, due to the success Nike has gotten the company now
provides athleisure wear as well. Currently, Mark Parker is the CEO of Nike. Nike markets its
products under its brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Blazers, Air
Force 1, Nike Dunk, Air Max, Foamposite, Nike Skateboarding, Nike CR7 and subsidiaries
including Jordan Brand and Converse. In addition to manufacturing sportswear and equipment,
the company operates retail stores under the Niketown name. Nike sponsors many high-profile
athletes and sports teams around the world, with the highly recognized trademarks of "Just Do It"
and the Swoosh logo.

2. An overview of the Vietnam market

 As one of the countries with a large young population, Vietnam provides an opportunity
for Nike to increase its profits, despite competition from other interested corporations such as
Adidas. Michael Jordan changed the way basketball shoes were perceived when he signed his
iconic Nike NKE, 1.12% deal in 1984 and debuted the Air Jordan 1. Basketball shoes became so
popular that they soon outgrew the court and were being worn as everyday shoes. The data
illustrates the market share of companies/brands in the United States basketball shoe market in
2015. The Nike brand, including the subsidiary Jordan brand, had a market share of 93% in the
United States basketball shoe market. Charlotte Hornets owner and NBA Hall of Famer Michael
Jordan has not played in the NBA since 2003. But the billionaire's basketball shoes are still the
industry's largest sellers and the main reason why Nike has 90% of the United States basketball
shoe market. The frenzied sneaker culture began with a genius marketing idea that continues to
create hype in the market today.

● Demography:
According to the world population, in 2018, Vietnam had 96,575,050 citizens. Moreover,
this number will continue to increase rapidly in the future, so Vietnam is a great market for
developing sports products. The age group from 20 to 40 has a high population density of both
men and women. This area tends to become highly educated in recent years so that they have
enough knowledge about the importance of health. That's why people tend to exercise more to
protect their health. Recognizing that situation, Nike is always working to develop new devices
to support people with high quality. Along with that is the new trend of playing basketball
among young people, initially, only in big cities like Hanoi and Ho Chi Minh City, now playing
basketball has quickly spread to other provinces and cities. The orange ball has a strange
attraction that pulls not only men but more and more girls to the basketball court.
● Economic:
According to the World Bank, Vietnam is a developing country with a GDP growth rate
of 6-8% per year, proving that living standards tend to be greatly improved. That's why people
can afford great products as long as it supports their lives. Based on this situation, Nike offers the
price of each basketball shoe product in Vietnam quite suitable for each individual's pocket.

● Natural :
The climate in Vietnam is characterized by an equatorial climate. With the hot and
humid all year round, Vietnam has favourable conditions for planting and developing rubber
trees. According to the Vietnam Rubber Association (2018), Vietnam currently ranks third in
producing and exporting natural rubber in the world. The association revealed that in 2017, the
country earned $2.3 billion from exporting 1.4 million tons of natural rubber, and the output
of rubber in Vietnam is 1.4 million tons of natural rubber on a yearly basis, and the yield will
grow more in the future. This rubber output has and will provide enough rubber for products
using rubber as an ingredient or material. Therefore, it will be highly likely that Nike has an
opportunity to thrive in Vietnam.
● Political:
Vietnam's powerful reign to integrate into the world economy. By becoming a member of
the World Trade Organization in 2007, the World Bank, and the ASIAN Forum, Vietnam has
been more dynamic and attractive in the trade market. Therefore, it would be more serendipitous
for enterprises operating in Vietnam, including Nike’s company, to receive welcoming and
favourable policies from the government as well as learn from experience to grow and expand
their business
CHAPTER II. SWOT AND TOWS ANALYSIS

1. SWOT Analysis of Nike

· Strong Brand Awareness – Nike is one of the most recognizable

brands in the world as its name alone is memorable, easy to pronounce,
and very unique. Its swoosh symbol is easily recognized by everyone.
Nike has captured approx. 31% of the global athletic footwear market.
Strengths . International presence: Nike’s International presence has an
upward trend and as it would seem to appear around the world. The
number of different countries' retail outlets has increased from 674 stores
in 2009 to 1182 stores in 2018, including about 37 stores in Vietnam. It
shows that. A developing country like Vietnam is also a potential market
for overseas companies because of the growth of GDP; people are
willing and affordable to buy (Jacqueline Yuen 2013). It means that
Nike has adapted customers’ criteria about the quality, the design and the
price of products not only in Vietnam but also in other countries.
· Huge Customer base – Nike has millions of customers from
 around the world who loyally follow Nike’s trends, participate in Nike
events, and even provide customer feedback. Due to its huge customer
base, Nike’s market cap has grown to $224 billion as of Feb 2021.
· Iconic Relationships – Nike’s long-term partnership with
Michael Jordan has proved to be beneficial in terms of sales for the
company. Their collaboration resulted in “Air Jordan 1 Shoes”.
Additionally, Nike teamed up with the famous basketball player to help
design the “Air Jordan 1 Shoes”.
· Low Manufacturing Cost – Most of Nike’s footwear is
manufactured in foreign countries. In the fiscal year 2020, Vietnam
produced 50%, China produced 22%, and Indonesia produced 24% of
Nike's total footwear. Other operations are in Argentina, Brazil, India,
Italy, and Mexico.
· In-house Professionals – Nike has a team of professionals that
design its shoes and other athletic accessories. Nike believes that their
business has flourished due to the thorough research that is conducted for
each product.
· Superior Marketing Capabilities – Nike has excellent marketing
campaigns. The brand heavily relies on on-demand generation expenses.
In the fiscal year 2019 and 2020, Nike spent $3.7 billion and $3.5 billion
respectively. The brand has successfully utilized social media and
marketing campaigns to target more customers.

· Dependency on the US Market – Even after having established

itself globally, Nike still relies on the U.S market in terms of sales and
revenue. In the fiscal year 2020, about 41% of Nike’s sales came from the
U.S, while the rest of 59% came globally. Despite its fame, Nike depends
on the U.S for substantial sales and growth.
Weaknesses . It is hard for Nike to control their products’ quality because they
have to depend on fabric suppliers and most of the materials to produce
 their products from Indonesia, China, and Vietnam. Nike still struggled
with the image of a greedy American company that exploited the poor
employees in emerging markets. The scandal involving Nike factories
has poor working conditions in Asia, almost causing the company image -
"the American giant" to tumble. The Vietnamese labour earns at least $ 47
a month, over time, limited to going to toilets and using water during their
working time. This caused a lot of global protests and a new revision of
the Nike slogan: "Just do NOT do it."
· Market Increase and more operating expenses – There is a rise
in the competition for sports shoes and the apparel market. This has
caused an increase in Nike’s marketing expenses. During the year 2016-
17, the company has spent about three billion on its marketing, which is
indeed a huge amount. The overhead operating expense for the same year
is also increased.
· Moreover, Nike has to compete with the online market when
most of Vietnam's customers prefer buying online – ordering products
from other developed countries because the shoe smuggling and faked
shoes made them miss Vietnamese customers’ beliefs.
· Labor Conditions are Poor in Foreign Countries – Over the past
20 years, Nike is being pointed out to be dealing with poor labour
conditions. The various issues related to labour are child labour, fewer
wages, and terrible working condition. This weakness impacts the brand
negatively.

· Developing Market – Even though Nike has an international

presence in many foreign countries, there see many opportunities for the
brand. This is because all its outside markets like China, India, and Brazil
Opportunities are regularly flourishing. There are many people across the globe, and
many are in developing countries and many are gradually more active.
These main factors see more growth in the footwear market. When
properly monitored, Nike should be able to get into these growing markets
thereby gaining more profits.
· Innovative Products – Although Nike has produced many
products, there is still a lot to innovate. Nike has extended its reach in
technology in association with fitness and health. Products like wearable
technology that monitors physical activities, is the first step in building
innovative technology products. Combining technology with athletic wear
can prove to be beneficial as it is an aspect of the fashion industry that
still hasn’t been explored much.
· Acquisitions – To get more growth for the brand, an acquisition
could be an excellent idea. The brand grows faster by gaining related
business.
· International Expansion – Yet another great opportunity for
Nike is its international expansion and can bring faster growth for the
brand. Currently, the company operates its e-commerce websites in about
45 countries. Nike should consider expanding both its physical and e-
commerce retail channels for global expansion. Nike should expand more
in Asia as it is the fastest-growing market with a lot of space and
opportunities for market growth.
· Backward Integration – Currently, the brand depends on
independent manufacturers for its supply and production. Either the brand
could acquire a few of them or create a few on its own to help the brand
have a stronger supply chain and get faster growth.
· Consumer Direct Strategy – Nike has accelerated the consumer-
direct strategy, which means shifting its focus to digital business and
subsequently closing physical stores. In the fiscal year 2020, 35% of its
Nike brand revenue comes from online sales. The pandemic is shaping up
how Nike interacts with its customers.
. The increasing GDP in Vietnam is making the higher living
standard that can push up the annual revenue. The Vietnamese young
generations keep with and update immediately the global fashion
 trends, so the demand for buying shoes keeps going up
. The cheap labour and low real estate in Vietnam. So Nike can cut
down costs and have more profit.
. Vietnam has a high population rate, approximately 96.580.294
people based on the data from the World Population review: the high
consumption rate.

· Increase in Competition – In the Vietnamese-sport-shoes

market, Nike must struggle with other foreign brands such as Adidas,
Puma, New Balance, Sketcher, or local brands like Biti’s. This is one of
the factors in constraining it to gain profit.
Threats · Counterfeit Products – Counterfeit products can significantly
affect the revenue and reputation of Nike. The company deals globally
and the risk of counterfeit products has become higher. Many
merchandisers and retailers offer counterfeit Nike products at lower
prices. The low-priced products are made from low-quality materials but
still have the Nike label. This can tarnish the image of the brand as the
 customers might feel that Nike has started producing low-quality
products.
· Marketing Budget Pressure – Companies like Under Armour
and Adidas are spending more on marketing and advertising campaigns,
increasing the pressure on Nike.
· Currency Foreign Exchange Risks – Since the brand operates
globally, it is affected by fluctuating foreign exchange rates. Nike reports
its financial earnings in U.S dollars. This affects its revenue as the U.S
dollar is exposed to volatility against other financial currencies.
· Economic Uncertainty – Regardless of the industry, all
companies are susceptible to the negative effects of a global recession.
Already, Nike has registered a 38% decline in sales in Q2 of 2020 and can
drop further in the future if the recession strikes as hard as predicted by
experts.

2. TOWS Analysis of Nike

SO WO

· Nike is a financially strong brand · Nike can expand faster in

and it can invest more in digitization and international markets by investing more in
product innovation. This will help it expand them. Reducing its dependence on the US
its e-commerce in more countries as well as market will also open new channels of revenue.
expand its product range and design. · Controlling operational costs will
· Nike’s excellent marketing strategy allow it to spend on digitization and
can help it find faster growth in the Asian innovation.
markets which are growing at the fastest rate · Nike could use large sporting events
in the world, specifically China and Asia. such as the Olympics to show that they are
 · Since Nike is a financially strong committed to trying and getting their reputation
brand, I can acquire new businesses in related back on track after events such as bad press
fields and also acquire some of its supply over sponsors and allegations about breaking
chains to reduce its dependence on labour laws.
Independent manufacturers.
· Nike could also look into using
their current position to influence health
awareness schemes and the advantages sports
has on them

ST WT

· Nike must use its marketing and · Controlling its dependence on the US
innovation capabilities to keep the and shifting to new markets like Asian markets
competitive pressure under control. will help cut down on HR and operational
· Since it is financially strong, it can costs.
keep investing in marketing, R&D as well as · Controlling operational costs will
HR management. allow it to invest more in marketing and grow
· It must remain focused on its brand faster.
compliance using internal compliance teams · Because competitors are starting to
to control legal and regulatory pressures. develop similar products i.e. Adidas, Nike
· Because Nike has increased profits needs to develop new and advanced products
each year, it can take on board the aims from and customization which will help them keep
the G8 and look into creating a more efficient their competitive advantage.
production line, creating fewer emissions and
reducing the company’s carbon footprint.
· Nike has been subject to negative
media regarding some of its sponsors and
also pressure groups for environmental and
political issues, so by using the fact that it’s a
worldwide brand leader it can invest in
sponsoring up and coming sports stars or
people who are established, admired. This
would help to change their public image and
steer them away from negative press. Nike
could actively show that it is monitoring
working conditions in its production line in
relation to pressure groups.

CHAPTER III. IDENTIFY TARGET MARKET

 The process of breaking down the total market for a product or service into distinct
subgroups or segments, where each segment might represent a distinct target market to be
reached with a distinctive marketing mix.

“To bring inspiration and innovation to every athlete in the world. A "mission statement"
is a statement of the organization’s purpose—what it wants to accomplish in the larger
environment. Nike has evolved a lot over the years, from a US-based footwear distributor to a
global manufacturer and marketer of athletic footwear, apparel, and equipment. Over the years
of this evolution, the target market for the company has kept on evolving.”

"Market segmentation, by grouping customers with similar needs, provides a

commercially viable method of serving these customers."

Segmentation Method

a. Demographics (age, life stage, gender, income, occupation, religion, education, race,
and nationality)
b. Geography (location, area, urbanization, population density, and climate)
c. Psychology (Social Class, Way of Life, and Personality)
d. Behaviour (Occurrences, Benefit Seeking, User Stages, Usage Rate, and Loyalty
Status)

According to the official Nike website, the core consumer categories are action sports,
basketball, etc. So, in a way, the company's main target market is athletes and young people.

Nike Segmentations

a. Demographic segmentation is an issue utilized by Nike to target people with the help of
their age, life cycle stage, gender, occupation, and generation. While the marketplace
can be wide for clothing and sports, for the most part, Nike has prioritized concentrating
on clients for a long time period of 15-45 and is now more and more specializing in
young adults to construct long-time period logo loyalty.

Nike solves this problem with the aid of strolling advertising and marketing campaigns
targeting younger humans looking to grow up to be like their athletes or idols. Nike no
longer targets clients primarily based on race, ethnicity, religion, or social class.
 However, given the excessive charges of the company's products, it makes use of profits
to categorize customers.

b. Nike makes use of geographic segmentation to discover particular countries, regions,

cities, and population densities. Playing basketball is not new in Vietnam, especially in
schools in the city. Nowadays, there are also basketball clubs that help you with sports
activities and competitions. This also makes Jordan's basketball shoes hot.
c. Nike also uses psychographic segmentation to target individuals with specific lifestyles
and personalities. To be used effectively, Nike must target athletic individuals. Whether
it's playing, watching, or simply talking about sports, these activities shape one's
personality and lifestyle.

Nike's marketing efforts aim to create a "feel" product. Nike cultivates an attitude; it
develops a lifestyle. Events like Nike: Run with me, Sports Improvement Clinic, social
media contests, and sports and non-sports activities endorsements go a long way
towards creating community and a sense of "belonging" to the Nike family.

d. This attribute-based targeting is the genius of Nike. While Nike occasionally focuses on
emphasizing specific product attributes, the company places considerable emphasis on
how its products are perceived by consumers. An athlete clearly defines the company's
product benefit expectations.

Nike products make you feel good! In a competitive market like Nike, when it comes to
consumers, it is critical to gain and keep their loyalty. By offering customers quality,
choice, and innovation, the company excels in this field.

3.1. Targeting

Marketers use segmentation to target specific markets. After the market has been
segmented, they will choose a segment or series of segments and "target" it/them. Resources
and efforts will be targeted first at a single segment with a single product. Second, marketers
can ignore differences in segments and choose to target a single product across all segments.
Ultimately, the marketer will target many different segments with a range of differentiated
products. (Reynolds and Reynolds, 2003).
 The Nike Air Jordan is one of Nike's most memorable product lines and a classic in the
basketball shoe market. The Air Jordan is named after the famous basketball star, Michael
Jordan, the legend of the NBA.

At the end of 1984, Nike and Michael Jordan's handshake succeeded with a 5-year
contract. Nike Jordan was officially launched in 1985 with Michael's signature image on the
sneaker and a signature embroidered logo that completely broke Nike's previous basketball
shoe designs. Since then, under the main design of Tinker Hatfield, Nike Jordan always brings a
new and innovative feature every time it is released, along with the impressive history of Jordan
1, making the success of the Nike Jordan product line more than 30 years ago.

The Nike Jordan 1 was the first shoe to revolutionize the basketball shoe. The rebellious
or rebellious difference in color and the success of Michael Jordan have completely changed
the balance of basketball shoe designs. "The color of the devil" with its dominant black and red
tone, the Nike Jordan 1 Bred was controversial right from its launch and made Michael pay a
sizable fine for violating the NBA's uniform law. However, it is Nike's breakthrough or clever
marketing trick that helps Jordan have a great start and an unforgettable history that makes the
Nike Jordan 1 always a fast-sold product and has a very high resale price.

3.2. Positioning

Positioning is about perception. The term "positioning" refers to a consumer's perception

of a product or service relative to its competitors.

Its products offer many choices for individuals, from sports equipment and sports shoes
to clothes. But this article focuses on Nike's athletic shoes and how they created a distinct
impression in the minds of consumers and differentiated their products from the competition. In
terms of advertising, it has continuously tried to target the young population of the world through
the most popular game of basketball worldwide.

Nike partnered with Michael Jordan to name the Jordan basketball shoes and design the
Jordan I, Jordan II, and more. Nike's marketing strategy is accepted as a key component of the
company's success. Nike is positioned as a premium brand, selling well-designed and very
expensive products. At the same time, Nike tries to attract customers with a marketing strategy
that focuses on the brand image achieved with a distinctive logo and a promotional logo: "Just
Do It."
 It is recognized for the quality of its shoes and has gained a worldwide reputation. Due to
the higher quality of the shoe, its price is usually higher than the normal brand. Therefore,
customers rate this as a premium product.

3.3.Strategie

Nike is successful because it has some of the next best, if not best, operations in the
world. Their brand is the number one brand in the graphic industry and the 14th most valuable
brand in the world. Nike’s business strategy is clear: invest in building your brand through
emotional marketing and sports celebrity endorsement, develop high-quality products, market-
first technology, and acquisition of competitively manipulable brands.

Nike not only owns 48% of the athletic shoe market in the US, but its share of basketball
sneakers also climbs to 96%.

Nike Focuses on Selling "Emotional Benefits"

Nike sells a lifestyle that hits an emotional segment of consumers who want to live
healthier lives and help them appreciate life. Nike makes very good use of this technique when
their marketing campaigns are not focused on promoting the product, but on giving customers
the spirit of the brand. Nike's ads all convey the message "move forward, keep trying" to
customers. They often praise hard work and celebrate great victories over laziness in each
person they know.

Use pictures of famous people.

This is a strategy used by many big brands, because customers always believe in the
products their favorite stars are using, or even the statements from the stars about the products.

Prominent names like LeBron James, Keira Knightly, Lil Wayne, Robert Pattinson, or
Megan Batoon with the vlog "Reacting to Running a Half Marathon | MEGABYTES EP. 101" are
the faces that have contributed to honoring Nike in the eyes of customers.

Distributing through various social media platforms

Smooth coordination between different social networks is not a simple strategy. Because
they will never be identical, we must understand very well how customers operate and use each
channel. Nike has used a lot of social networking sites to interact directly with consumers, but
besides that, it has also not forgotten to adjust the way it works to suit each individual channel.

Twitter: Nike has separate Twitter accounts for each of its sub-brands, and for each
channel, Nike focuses on responding to @mentions.

Instagram: Nike's Instagram is one of the most popular accounts, with a very respectable
following of 79.5 million people. Using both video and artistic photos, Nike showcases the most
popular products on the main account and sub-accounts.

Facebook: Nike has separate Facebook fan pages for each of its product categories.

Youtube: YouTube is also a channel that Nike focuses on and promotes promotional
videos or series that create interaction between customers and brands.

Inspirational advertising
 Nike's ads are always carefully invested in, with deeply inspirational messages. In
particular, Nike often collaborates with world-class sports stars, providing an impressive view of
their outstanding skills.

The clever use of marketing strategies has brought unexpected results for Nike. These
strategies not only contribute to profitability but also affirm the brand's position in the market.
Thus, it can be said that the coordination of all four marketing strategies mentioned above in a
flexible and creative way has helped Nike maintain its position in the hearts of customers for
decades.

CHAPTER IV. COMPETITION ANALYSIS

Based on the CPM Matrix of Nike in Vietnam. Nike is competing with 4 competitors in the same
product line which is basketball shoes. The table below is a statistic on the points that are dotted
according to 10 main criteria to determine their strengths and weaknesses and improve the
ratings.
1. Brand recognition

No one can deny Nike's throne in the field of sportswear in general and the basketball shoe
market in particular. For the Vietnamese market, too, when it comes to basketball shoes,
consumers always think of Nike shoes first because this company has obtained quality contracts
when creating shoe lines. private parcels for superstars in the NBA like Lebron James, Kyrie
Irving, Kevin Durant, .... This is a very unique marketing method of Nike. Their advertising
themes always revolve around sports, teammates, non-stop training. Nike doesn't need to post
many images to promote, they just need to "leak" 1 or 2 photos of the upcoming new version and
design and there will be thousands of comments about it. Motivational clips always get you into
the mindset of working out when you watch it, and they have hundreds of ways to get us talking
without mentioning the brand. Directly competing with Nike in the last decade is Adidas, the
German company also has custom shoes for their stars but cannot put too much pressure on Nike
in the Vietnamese market. because their stars often suffer from injuries at the peak of their
careers. This has greatly affected the sales of adidas and they have gradually lost the interest of
consumers. However, in the past few years, adidas has made strong strides when they have
signed many contracts. quality contracts with emerging stars to create products that compete with
nike. Compared to the two giants mentioned above, puma is too small in the basketball shoe
market but not because of that, they give up. Puma also has a few exclusive models for
superstars to promote their products. Most of their superstars are only in potential form, so
consumers do not pay too much attention to these products. The remaining two sports brands,
Fila and Reebok, are almost impossible to compete with because most consumers in Vietnam
only know them by fashion clothes, not in the basketball shoe market. Partly because these two
companies don't focus too much on basketball shoes and the other part is because they don't have
big names to represent.
2. Appropriate level

In the Vietnamese market, nike and puma products are often made with multi-use materials that
help many people with special foot structures still be able to use their products comfortably. For
example, on the side of the shoe these two brands often use knit material (knitted fabric) to make
the shoes lighter and reduce the phenomenon of blistering in the user's feet. In addition, this
material can be stretched 4-way, it gives the wearer a certain comfort. In contrast to the two
sports brands above, Adidas often chooses artificial leather as their main material when
designing. Although artificial leather makes the shoes lighter and protects the feet, it makes the
wearer feel tight and sweaty feet. It is this that makes consumers a little hesitant when choosing
adidas products because Vietnam is a country with a hot and humid climate, if choosing shoes
that are not breathable, it will lead to discomfort for the wearer.
3. Technology

Most basketball courts in Vietnam are outdoor cement courts, so players here often have
problems with the soles of their feet and knees because they land with a strong force.
Understanding this, the major US sports company has developed ZoomX technology, which
provides quick response and reduces the possibility of stepping off when running. ZoomX
technology uses stretchy elastic fibers knit inside a pocket of compressed air. This gives ZoomX
a flexible energy response. Every time the athlete touches the ground, the fibers will absorb the
shock and compress and then quickly return to the original state. This creates a powerful energy
return afterwards and reduces unnecessary injuries. Whether training or competing, Zoom
technology responds with agility to optimize target speed. degree. In stark contrast to Nike, the
German sports company has launched Boost technology with extremely good force absorption
and elasticity. For courts in Vietnam, Adidas has improved this technology to make them
stronger to better protect the user's ankle. Although puma is a newcomer that is taking its first
steps into the basketball market, they also have their own buffer technology to be able to
compete with the two giants above. The new buffering technology is called "ProFoam" - a
technology that is considered to work well with stability and the ability to provide high support.
The buffer is made up of hexagonal blocks with foam to keep the user steady during sports
activities. The foam blocks in the buffer are designed in small hexagons that intertwine to absorb
the best force.
4. Price

Despite capturing the majority of the market share in the Vietnamese basketball shoe market,
Nike's shoe lines are often priced higher than other shoe models in the same segment because
their shoe models often have unique color schemes. Eye-catching makes consumers consider
those products into sneakers to go out instead of bringing to the training ground to experience the
performance of the shoes. For the remaining four airlines, they often have lower prices to attract
more customers and they often have regular discount programs to attract more customers'
interest.
5. Distribution channel

Nike's main distribution channel in the Vietnamese market is the booths located in large
commercial centers such as Aeon Mall, Vincom. Parkson,,,,. And online sales websites, selling
on shopee, lazada,... Besides, Nike Vietnam also opens more retail stores in big cities. It can be
said that nike stores are covered in all major cities to be able to reach the most potential
customers. Like nike, adidas and puma also have stores in shopping malls, but they focus mainly
on how to sell online.

6. Product diversity

Nike: For many years, Nike has always been one of the icons when it comes to sportswear
because of its high level of prestige and good product quality. Nike not only owns 48% of the
athletic shoe market in the US, but the market share of basketball sneakers also climbs to a
staggering 96%. With such a large number, Nike also obtained a high score in CPM which is 4
points, and the number of Nike basketball shoes produced with an estimated number of nearly
100 pairs. This is a big number to talk about the company's diversity in the basketball shoe
segment.
Adidas: Adidas has always been known as a direct competitor of Nike, and the variety of Adidas
basketball shoes also accounts for a significant number with an estimate of nearly 60 pairs, and
this brand also obtained 4 points in this section of shoes.
7. Product quality

In this segment, Adidas is considered to have better quality than Nike. In terms of design, Adidas
has a plus point in terms of comfortable design for both men and women. The materials are also
different. Adidas uses Boost technology, where pallets are compressed and moulded then used
when manufacturing some of their shoes. Material is also a contributing factor to the extreme
comfort that Adidas shoes bring. The introduction of Boost technology into the line of sneakers
makes them versatile. They can be used for sports and also infused into everyday lifestyle. Not
only does this make the shoes lightweight, but it also provides them with proper cushioning, arch
support, flexibility, and breathability.
8. Customer loyalty

In this criterion, Adidas has a higher score than Nike with a score of 4. Although both brands
have high-quality products, after studying and learning, Adidas will be the firm of the most loyal
customers. Like many large retailers, Adidas's customers have increasingly turned to mobile
during the pandemic to browse, buy, and connect. At Adidas, their apps have been a central
strategy for fostering relationships with Adidas loyal customers, or premium members, over
time.

They have taken advantage of people's mobile technology habits during the pandemic to create a
better connection with customers and to deliver exciting and exciting new experiences, Adidas
has invested in events. virtual events and personalized in-store service. Adidas has also
introduced contactless purchasing and appointment browsing options as an added benefit.

9. Promotion

Out of the four competitors that Nike has to compete within the promotion field, Adidas once
again has the same score as Nike in this segment.

Nike

Nike hires famous basketball players, some of the popular football scorers and golf superstars in
order to make an emphasizing campaign for its products around the world. In addition, the
corporation uses promotional strategies to inform and persuade target buyers about its products.
Nike's promotional initiatives are listed below, in order of their importance:

1. Advertising

2. Personal selling
3. Direct marketing

4. Sales promotions

5. Public relations

Advertising is one of the biggest contributors to Nike's ability to attract customers. The company
relies heavily on advertisements, especially those involving highly-supported celebrities, such as
professional athletes and basketball sports teams. Nike also uses discounts and special offers
from time to time to attract new clients and increase sales. The company's sales marketing
strategies consist of these discounts and incentives, etc.

Adidas

Adidas' promotional activities are mainly concentrated on television and product placements. In
the same way as Nike, Adidas also uses relationships with famous athletes to promote their
products.

Adidas' creative team is known to stimulate customers to spend well, though well-executed,
creative and energetic advertisements. These ads draw customers towards the brand by sending
tailored marketing messages to the customers.

10. Customer service

Nike uses social networks to get product/brand feedback to help businesses listen, connect, and
interact with customers. The Nike brand invests heavily in customer relationships on a developed
social networking platform like today. Nike accesses customer care services on Instagram and
takes advantage of it to increase the value of developing a huge online community. A giant of
athletes, influencers and everyone.
Nike employs hundreds of employees in dozens of different departments actively looking to
engage in customer conversations, track inquiries that can help multiple customers at once, and
connect and maintain credibility with consumers. Nike's active customer service activities have
kept it at the top of the CPM.

→ Analysis of CPM shows that Nike is the strongest company in the industry with relative
strengths in Brand Identity, Appropriate level, Technology, Distribution Channels, Product
Diversity, Promotions and Customer service. Nike should therefore protect these factors while
trying to improve its weaknesses in terms of price, product quality and customer loyalty to be
able to surpass its rival Adidas.
 CHAPTER V. DRAFT STRATEGIES AND ENTRY MODES FOR INTERNATIONAL
EXPANSIONS OF NIKE IN VIETNAM

1. Draft strategy of Nike in Vietnam

The basic mission of Nike's Draft strategy is to create an opportunity where everyone can be a
potential customer. Nike's grand strategy focuses on leveraging innovation to create and deliver
high-quality basketball shoes at multiple price points.
The main goal is to “achieve long-term revenue growth” through using this innovation, develop
“must-have products”, and create a strong emotional relationship between customers and their
brand. and create meaningful consumer experiences through “digital and retail platforms”.
Currently, there is a strong focus on increasing the impact of innovation, improving speed and
responsiveness to the market, and expanding direct customer connections.
● Main customers
Nike tends to target individuals according to their age, with their primary target audience being
11-45 years old. However, the focus is more on the individuals in this customer base, who are in
their teens/twenties, as there are more opportunities to “get loyal long-term customers”. Focus on
teens exposed to basketball at an early age. Along with the presence of COVID-19, there has
been a significant growth in the consumption of sports shoes. More and more consumers are
realizing the importance of physical activities like running or walking in maintaining a healthy
mindset.
● Using the influence of famous people
Michael Jordan is a celebrity that Nike has leveraged to market not only its new Air Jordan line
but also the company.
All industries and markets have celebrities who can influence potential customers and increase
awareness of your company and products. In Vietnam, you can cooperate with famous people
like Son Tung MTP, Jack, ... or big bloggers.
● Differentiated Offering
In Nike's case, the "Air Jordan" was the first signature shoe ever created for an NBA basketball
player. They come in black and red, matching the colors of the Jordan team: Chicago Bulls. The
shoes are instantly recognizable and even make a fashion statement.
Nike can combine with Vietnamese street basketball style, there are unique shoe models that will
make an impression for customers who like to collect.
● Focus on improving quality
Nike is tied to several core competencies. The first is premium and the highest quality. With the
new basketball shoe, Nike uses Nike Zoom technology, which delivers responsiveness and
reduces the risk of running mistakes. The technology also helps increase feel and control of the
surface for on-court sports like basketball. This strategy makes it easier for Nike to attract more
customers and satisfy their needs by using its products.

2. Entry Modes of Nike in Vietnam

Nike is looking for partners who want to sell Nike products across the country. At the same
time, have stable finance to maintain the store long-term and develop. The wholesale partner area
is all provinces and cities that do not have Nike's exclusive stores, the partner area opens
nationwide distribution stores.
There are two ways for Nike to distribute products in Vietnam:
● Export:
This form will apply to partners who already have a general sports store and want to find more
sources of genuine Nike products. The advantage of this form is that there will be many products
of many different brands for customers to choose from. In addition, the store is not forced to sell,
but the discount will not be as high as other forms. This form we can see in small stores.
● Full Business Format Franchise:
For partners who are capable, have management qualifications, and have the ability to search and
develop the market, in addition to opening a store, the company will grant distribution rights to
partners in the market. the area can take on (there are levels of distribution rights: district - city,
province and region, respectively, the requirements for work, sales as well as the discount will be
higher). When granting distribution rights, the company will hand over customers and partners in
the region, partners will have full rights to trade the Nike brand in this market. Partners will be
consulted by the company to design standard stores and trade Nike specialized sports products.
Partners need to have convenient and spacious premises available in densely populated areas.
The advantage of this form is that the partner will specialize in Nike lines, products are more
diverse and complete, the company will give priority to the issue of goods than the wholesale
stores. The special thing when Franchise Full Business Format is that the Company will support
training employees for the partner for 1 week at the partner's office or sample store. They will
learn all the knowledge about Nike to understand and advise on selling products to customers

The company will guarantee the goods sold to the partner during the period of 10 months without
pre-orders. During this time, the company will support providing available orders to the partner
so that the partner still has goods for sale and at the same time has time to close and wait for
seasonal orders to be provided.

VI. CONCLUSION
VII. REFERENCES
1. https://diyhomesu.com/blogs/news/thong-tin-nhuong-quyen-phan-phoi-dong-san-pham-
nike
2. https://vi.wikipedia.org/wiki/Nike,_Inc.
3. https://bstrategyhub.com/swot-analysis-of-nike-nike-swot-analysis/
4. https://managementglossary.com/swot-analysis-of-nike/
5. https://notesmatic.com/nike-tows-matrix/
6. http://nikeresearch.blogspot.com/2013/03/tows-and-csf.html
7. https://blog.kalzen.com/nhung-chien-luoc-marketing-giup-nike-luon-la-thuong-hieu-
trong-tam-tri-khach-hang/
8. https://authentic-shoes.com/blogs/news/su-khac-biet-chung-giua-cac-san-pham-giay-cua-
nike-va-adidas-la-gi

9. https://www.thinkwithgoogle.com/marketing-strategies/app-and-mobile/adidas-app-
loyalty-program

10. https://profitworks.ca/blog/marketing-strategy/545-nike-strategy-how-nike-became-
successful-and-the-leader-in-the-sports-product-market.html