Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

Nike: Building a Global Brand

Submitted by:

Butch Kevin F. Adovas

BSBA-MM-4-1

1
Contents
Nike: Building a Global Brand .............................................................................................................. 1
(Case Analysis) ........................................................................................................................................ 1
Intel Corporation: Branding a Technology Brand .............................................................................. 1
(Case Analysis) ........................................................................................................................................ 1
NIKE: Building a Global Brand ................................................................................................................ 3
Summary of facts: ................................................................................................................................... 3
Issues: ....................................................................................................................................................... 3
SWOT Analysis ....................................................................................................................................... 4
Conclusions:............................................................................................................................................. 4
Recommendations:.................................................................................................................................. 4
Intel Corporation: Branding a Technology Brand .................................................................................. 5
Summary of facts: ................................................................................................................................... 5
Issues: ....................................................................................................................................................... 5
SWOT Analysis ....................................................................................................................................... 6
Conclusions:............................................................................................................................................. 6
Recommendations:.................................................................................................................................. 7
References:............................................................................................................................................... 7

2
NIKE: Building a Global Brand
Summary of facts:
Tracing the history of Nike way back 1950’s, there are three main people involved- Bill
Bowerman- a track coach, Phil Knight- a track runner and Jeff Johnson- their employee. The drive
that brought Nike into being and continuously became the inspiration of the company is the thought
of Bill Bowerman to always have a competitive advantage for his running team through the shoes
that they wear. Phil on the other hand wrote a paper on quality shoes that Japan made and through
this paper, Phil became a distributor of Tiger shoes which later on Bill discovered and they both
enter into an agreement that they would create a better running shoes forming the Blue Ribbon
Sports in 1964. Since both Phil and Bill are both full time worker they hired Jeff Johnson as their
full time employee. However, the partnership between the company and manufacturer in Japan
started to deteriorate, this signaled Phil and Bill to start decorating and manufacturing their own
footwear thus making the introduction of Nike line of footwear in 1977. And ever since it already
became the official footwear of different athletes such as Steve Profentaine, Michael Jordan, Tiger
Woods and many more.
Nike being a brand uses two distinct benefits to its costumer in order to compete with other
brands. One is the functional attributes which includes the maximum usage of the current
technological advancement we have thus making Nike a shoe of comfort, authenticity, innovative
and unique designs. This is considered as the defining dimensions of Nike’s brand identity and
corporate culture. However, having a functional attribute alone isn’t enough to stand out alongside
with other brands, with that Nike strengthen their emotional benefits by offering richness and depth
to their brand whenever costumers own and use their brand. With the tagline “when they win, you
win too” this strategy Nike succeeded to transfer their inspirations to every single purchaser.
The “Just Do It” campaign of Nike on the other hand offered a sense of belongingness to
its consumers creating brand loyalty through time. Another way of capturing the consumer’s
loyalty, Nike created a social network site for football fans in 2006- the Joga.com. In this site fans
created communities and the company on the other hand nurtured a deeper loyalty and advocacy
to its consumer. With that, Nike became number one on the list of consumer’s preferences creating
a stronger brand awareness all over the world. In fact, the “Swoosh” symbol is scattered
everywhere to the extent that book authors said that this is the “Swooshification of the World” and
almost 97% of the American citizens recognized the brand logo. All of this brand loyalty and brand
awareness for Nike was done mostly through three vivid channel- Advertising, Sponsorship and
Focused Retailing.
However, the massive and aggressive strategy the company uses only works around
America. Nike decided to penetrate the European Market with the same strategy but they failed to
capture Europe due to their brand equity and image in that country- “fashionable aggressive and
arrogant brand”. With that they tried to change strategies by sponsoring global events and using
lowered aggressive tone in their ads. Same things happened when they leap their globalization
efforts in Asia. They faced multiple issues and criticisms due to the integrated labor practices in
Asia thus as their action to resolve this issue. Nike intensified its Global Corporate Social
Responsibilities.

Issues:
Analyzing the reading on Nike: Building a Global Brand, I think that the main issue in this
case study is building global brand equity. I came up with such issue because Nike’s massive
and aggressive strategy became successful in US however this strategy also became their
problem when they tried to penetrate the global market. Consumers perspective or as what
they call it brand image of the integrated market such as Europe and Asia towards Nike differs
from what the Americans perceived thus creating issues and backlash towards the brand. It is said
that as long as possible, the brand equity (brand image and personality) of a product must not
have lapses among them. What the company wanted to portray as an image of the product (brand
personality) must be perceived (brand image) by the consumers as it is. With that, Nike failed to
build a global brand equity.

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SWOT Analysis

STRENGTH
WEAKNESSES
-High Quality
-Innapropriate Strategy to penetrate
-Innovative
Integrated Market.
-High Technology
-Controled Operating Cost
-International Athletes as endorsers

OPPORTUNITIES
THREATS
-National Events or Competitions
-National Competitors
-Sponsorships
-Critics and Issues
-Endorsements
-Inegrated Market
-National Athletes and Local Heroes

Conclusions:
Reading the said selection, I therefore conclude that creating a consistent and single
worldwide identity for a brand is hard, same goes with creating brand equity itself. In
branding a product, one must think of a strong quality signal that will identify your product to
the other competing products thus putting into consideration that it must cut across cultural
differences. A brand must be able to communicate across all consumer points worldwide.
However, in the case of Nike this does not go as planned. They indeed created a strong brand
identity in the US market however that identity is perceived as aggressive and arrogant same with
their logo which is perceived by other markets as irritating. This created issues and backlash to the
company.

Recommendations:
In order to create a single worldwide identity for Nike, I therefore recommend that:
1. The company must train to maintain brand consistency through streamlined brand
identity at any locations including marketing materials, online platforms and even office
interiors must be the same. This look must also be extended to customers and employees.
2. Hire well equipped local representatives of the brand since they know better the local
customs, cultures, norms, laws and even the market and consumer behavior of that area,
however, see to it that the hired local representative of your brand must honed the culture
and corporate value of the company. In this case, locally hired representative consumes
smaller expenses as compared to sending “expats” which is at the same way a problematic
choice.
3. Through extensive marketing research, study the market and analyze their perception
towards your product. If something wrong is manifested in the research, don’t hesitate to
address this issues and change for the better. Always be ready for changes and customize
marketing materials and strategy based on the needs and wants of the market.
4. As long as possible create a campaign that can cut- through integrated market. This
will create a consistent image for the product wherever it is.
5. Lastly, utilize all available and affordable partnerships and sponsorships. This will
build the companies identity in that area. But still be consistent with the brand
personality throughout the partnerships.

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Intel Corporation: Branding a Technology Brand

Summary of facts:
From vacuum tubes and transistors rose Intel’s Microprocessor chip on November of 1971
in Silicon Valley founded by Gordon Moore and Robert Noyce as they introduced the world’s first
Microprocessor- the intel 4004. Since then, Intel became the Godfather of Modern Technology.
Initially, Intel was founded on July 18, 1968 and it was based on the words “Integrated
Electronics”. The company was well known first as memory cards manufacturer which later on
shifted into manufacturing of microprocessor and now a technology brand.
However, the rose of Intel to the top of the industry was surrounded by challenges. Since
all its products are incased on their manufacturers products like the Personal Computers,
consumers don’t have enough knowledge about the brand. With that, Intel launch a campaign
called “Intel Inside” which makes consumer familiar with the brand. This campaign becomes
successful. However, it was surrounded with issues such as bribery to its partner companies just
to continually buy their products. Sadly, this strategy is the only strategy that became successful.
Both “Leap Ahead” and “Multiply” campaigns did not bring anything that would help consumers
to understand their brand and the company’s culture.
Another issue that the company have to go through is the issues on trademarks. Originally,
all Intel products names are numbers or codes such as 4004, 486, 8088, 8008 and many more.
Things suddenly change when the 386 Trademark Issue happened. This issue is between Intel and
AMD- their main competitor. This issue started in a very strange fate when Mike Webb, a
marketing manager of AMD was waiting for a package to be delivered in a hotel in California. On
that same moment, an engineer of Intel is at the same hotel and also named as Mike Webb. The
package, which contains AMD’s plan on cloning the 386 microprocessor was given to Intel’s
engineer- Mike Webb rather that AMD’s Mike Webb. With that, Intel immediately sued AMD and
tried to trademark 386 microprocessors. The court sided with AMD and the trademark of 386 was
abandoned. Since then, with the help of Lexicon, Intel named their products on different basis such
as Pentium, Celeron, Xeon etc.
Indeed, Intel manages to stay on top of the industry even though issues bombarded them.
At these days, Intel already take the leap and extended their market into manufacturing technology
brand such as desktop, laptop, tablets and smartphones. This company faces different changes,
from memory chips manufacturer, to microprocessor and now a technology brand.

Issues:
In this reading, since Intel lacks identification, consumer knowledge, and with its sudden
shift of industry (Microprocessor- Technology Brand) the biggest issue that the company will be
facing is developing an effective branding strategy specifically on building brand awareness.
It is stated in the facts that Intel lacks identification due to the fact that it is enclosed to another
manufacturers product. With that, brand awareness about the product is at its lowest even
though the Intel Inside campaign back then was successful but it is not enough. Intel needs first
to create rapport to the market and relate the company’s culture to its consumers.

5
SWOT Analysis

STRENGTH WEAKNESSES
-Quality and Reliability -Lacks identification and knowledge from
the market.
-Innovative
-Brands deep roots in the processor
-High Performance market
-Leader in Global Manufacturing -Brand awareness
-Intel Inside Campaign -hard to connect with consumer

THREATS
OPPORTUNITIES
-Competitors
-Booming computer and mobile market
-Creation of new processors
-Associations with other mobile and
-Issues
computer companies

Conclusions:
Reading the selection, I realized that currently Intel is risking everything. Actually, the
“Intel Inside” strategy is quite problematic. This is because on the part of their manufacturer, say
for example Apple computers- if ever apple make a computer with Intel Inside campaign and it
manifested poor qualities and performance (which is quite impossible knowing Apple as a brand)
then definitely Apple is not the only affected with the backlash from consumer and brand image
litigations, Intel will also be affected. This might put both the company’s reputation at risk. Same
goes with Intel being a “credible enabler”. Currently, Intel is on the top of their game and is
superior than other competitors they have in the market. This will enable other products carrying
“Intel Inside” campaign an increase in their products quality. However, if Intel deteriorated in their
current status then definitely this will harm the product which uses Intel Inside campaign. For short
Intel is in the middle of two crushing stones! The pressure is in the company and if they didn’t
manage to balance their strategy then definitely it will affect the company in a long run.
Currently, Intel is still dependent on its manufacturers products. They have hardships in
reaching their target market and incorporating them with the company’s cultures. Intel lacks
communication with the mass market causing their brand to be unrecognizable and unaware. This
is the challenge to the company. How are they going to deliver the message of their brand? How
will they communicate with the mass market allowing them to become aware that their company
is already creating technologies not just processor. They already have passed through this phase
when they shifted from memory card manufacturer to microprocessor manufacturer. This sudden
shift of the company is something lot bigger. Further adjustments are needed and bigger strategies
must be done. Furthermore, Intel’s move to becoming a technology brand is a good start because
they can’t stay forever dependent on their manufacturers product knowing that Apple and Samsung
are already planning to have their own microprocessor. Analyzing this scenario, Intel already have
a great edge as compared to its soon-to-be competitors. All they need to have is brand awareness.
But first they must earn the self-respect of the mass market. They need to assure that buying Intel
technologies are lot better and prove that their product is the product of the future.

6
Recommendations:
In order for Intel to have an effective branding strategy specifically creating brand
awareness, I therefore recommend the following:
1. Firstly, create a marketing campaign such as ads that would both reintroduced the company
and the company’s products. Use easy to remember taglines such as “Better with Intel” or
“Unpacking Intel” or “Intel Outside and Inside” or “Certified Intel Product”. All marketing
materials must be consistent and can cut through diverse market.
2. Use or hire endorsers with big influences in the social media and televisions. Someone that
is suited to represent the Intel’s Core Values and culture. Or if not, tell them to embody
and understand the values and culture of the company. In this case ads can communicate
effectively and truthfully with the target costumer.
3. Take advantage of the free platform of social medias, let people interact with the company
and share your info. Utilize Facebook and Youtube Ads since it is cheaper. TV ads may
do.
4. Be consistent with everything. Marketing materials should all be aligned into presenting
the new product of the company. This should be felt by the costumer and extended to the
company’s employees.
5. Utilize all promotional activities, grab or create seminars regarding product innovation and
branding. Sponsor events such as the Mobile Legends competition and other online games
with national and international affiliations.

References:
 Nike: Bilding a Global Brand Case
 Intel Corporation: Branding a Technology Brand
 mbaknol.com/ case study of nike: building a global brand image
 phdessay.com/intel branding strategy case
 forbes.com/ five things to do to upfront when building a global brand is your goal
 business.com/ 5 steps to master global branding for your business
 youtube.com/ intel case study
 youtube.com/ nike history
 entrepreneur.com/brand awareness