Section one: Nike, Products and Competitive Information
History of Adidas
Nike, Inc. was founded as Blue Ribbon in 1964 by Bill Bowermnan and Phil Knight and has over the years made significant progress in both local and international markets since it took the name ‘Nike’ in 1978 (Peters, 2009, p. 1). The company has its headquarters in Washington County, Oregon and deals in footwear and apparel, sports equipment and other recreational products. The fact that Nike’s products have been endorsed by prominent personalities such as Michael Jordan has made it famous in global arena (Ros, 2011, p. 2). Nike engages in products designs, developing, manufacturing and sale of footwear, accessories and apparel and it remains among the largest suppliers of sports products across the globe (Teece, 2010, p. 172). The company is ranked the best concerning valuable sports brands and has gone ahead to sponsor key sports personalities and clubs in various sports categories.
Products offered by Nike
Nike produces a range of goods, but the most common ones are footwear products used for different sporting activities including athletics, soccer, golf and cricket and fitness programs (Mahdi, Abbas, & Mazar, 2015, p. 2). The firm ensures that the shoes it sells to its customers give them the comfort they deserve since sports shoes are the most important products of fitness that many people embrace. The company realizes the fact that there are different ways on how sports shoes support the feet of different people such that it is imperative to have the designs that fit every activity from tennis to the regular jogging experience (Ros, 2011, p. 2). Many consumers are aware of the fact that failure to have correct shoes on them may cause incidences of traumatized toes, leg pain and Achilles tendonitis hence creating the need for Nike to ensure that its products are tested before they are dispatched to the market (Hu, 2015, p. 474). Ranging from football boots, tennis shoes, running shoes to aerobic trainers shoes, a primary aim of Nike is to establish brand loyalty that is a major strategy in efforts to develop and maintain competitive advantage (Hu, 2015, p. 475).
Nike’s direct and indirect competitors
Nike faces stiff competition both in its local and global markets especially in Europe and china where sports firms such as Adidas and Puma have targeted (Mahdi, Abbas, & Mazar, 2015, p. 2). The direct competitors realize that they have already lost market share to Nike hence the need to engage in aggressive marketing as a way of amplifying their sales and recover from the lost ground (Ros, 2011, p. 3). With superior innovation and premium supply chain network, Nike is assured of dominance in the major segments such as North America where there is growing demand for sports shoes and competitive advantage in the highly dynamic markets of Europe and Asia (Peters, 2009, p. 3). Competition from direct competitors such as Adidas has been heating up in Europe for a period with Adidas managing to have a narrow advantage previously in Western Europe. Adidas has made efforts in looking for key personalities such as Lionel Messi to market its sportswear and compete with Nike. However, with unique designs and catching up with innovativeness in the industry, future estimates prove that Nike will still have dominance in the European market (Teece, 2010, p. 181). Adidas has shown that it is a key competitor but it still has not reached the level of Nike, and it is unlikely that Nike will be overtaken as the global dominant sportswear company in the near future. Indirect competitors of Nike include POLO and Sean John that manufacture and sell clothing merchandise. However, the competitive advantage and the fact that Nike deals in a range of products lines are enough to make it cope with indirect competition (Ros, 2011, p. 4).
Section two: The Buyer
The Buying firm
Nike is a world leading sports footwear manufacturer with both men and women keen to try out the products offered. A major category of buyers includes those who need the sports shoes for training (Ros, 2011, p. 2). To ensure that it improves its profit margins, reduce inventories and customers receive the products in time, Nike is focused on enjoining retailers both locally and abroad who then sell the products to varied customers to enhance convenience (Peters, 2009, p. 1). With over 140000 retail stores across the globe, Nike ensures that buyers have access to their footwear at the nearest store (Peters, 2009, p. 2). While value drives a majority of customer purchasing behavior, it implies that they are likely to enquire from their friends and online sources regarding the value that the products offered. The key objective for Nike is to ensure that everyone finds their right shoe for the purpose they need them for to ensure they customers derive the comfort they desire (Ros, 2011, p. 2). Such objectives have led to sports personalities such as Kevin Durant, Lebron Jams, and Michael Jordan to prefer Nike to other brands such as Nike. The sales mission, therefore, targets training and fitness agencies where individuals attend health fitness programs due to the increasing need to take personal responsibility for own health through regular physical exercises. With some of the target consumers being unaware of the brand that could offer them the best comfort and the need to convince them of the superiority afforded by the Nike brand, it is likely that the category will be a significant boost to the sales efforts. Currently, several of the target consumers use any shoe wear brand as long as they feel they would enable them to train hence the need for them to subscribe to a particular brand that assures them of long term dependability on the products offered.
The prospects needs
The prospect needs include the fact that those involved in training activities and those wishing to take the initiative of regular physical exercises require training shoes capable of providing them with the comfort they require while at the same time eliminating incidences of leg pains and complication at the toes. The fact that majority of the trainers, in this case, are elderly implies that it is important to sell shoes that encourage them to engage more in the work puts. The conversation with the majority of the target market and meeting with the trainers contributed to the understanding of the needs and expectations of the consumers and ways in which they could be encouraged to embrace the programs fully. The coaches identified the fact that uncomfortable shoes are among the hindrances of an active training program with majority complaining that the shoes they used limited their participation in the exercises. Such conversation and responses from the coaches and majority of the target group implies that they are ready to be loyal to the brand that would encourage their participation which in this case is the Nike brand.
Section 3: The Sales Meeting
Sales call script: 15 open ended probing questions
What do you do as a firm?
Tell me more about the scope of your business
What are the reasons that make you stick to the industry you operate in?
Do you have any projects you are working on currently?
Where are your business premises?
Tel me about the criteria you use when making a purchase decision
What is going on currently at your organization?
How do competitors shape your business?
Has anything changed since you started operating?
How do customer problems affect you?
Would you identify the factors that holds the firm from achieving its goals?
In case you managed to overcome the challenges, how do you see the company transforming?
How would you feel personally if you achieved positive transformation?
In case Nike was to move with you in future, what do you see as different?
Personably, how would you define success?
The fact that trainers would want the best outcomes for the customers implies that it is imperative for them to encourage their members to purchase products they are assured of the comfort to boost their physical and mental strength. This implies that through the sales activities targeted towards those involved in training and fitness programs, it is likely that major sales boost will be achieved.
References
Hu, C. (2015). Improving Competitive Advantage of Chinese Sports Brand through Brand Management. Modern Economy, 473-477.
Mahdi, H., Abbas, M., & Mazar, T. (2015). A Comparative Analysis of Strategies and Business Models of Nike, Inc. and Adidas Group with special reference to Competitive Advantage in the context of a Dynamic and Competitive Environment. International Journal of Business Management and Economic Research, 167-177.
Peters, C. (2009). The Rise of the Corporate Citizen: Nike’s Evolving Supply Chain. Chazen Web Journal of International Business, 1-7.
Ros, A. (2011). NIKE Strategy: Strategy Management. International Journal of Competitive Intelligence, Strategic, Scientific and Technology Watch 2011, 1-6.
Teece, D. (2010). Business Models, Business Strategy and Innovation. Long Range Planning, 172-194.
