Nike's "Joga Bonito" Marketing Campaign

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Case Details:

Case Code : MKTG150
Case Length : 27 Pages
Period : 2001-2006
Organization : Nike Inc.
Pub Date : 2006
Teaching Note : Available
Countries : Europe, USA
Industry : Footwear

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Nike and the Beautiful Game Contd...

Football was one of the few sports where Nike, the most widely recognized sports brand in the world, trailed behind its arch-rival Adidas-Salomon AG (Adidas)¹³. Adidas was the official sponsor of the 2006 World Cup. Wiser from its experience in previous World Cups and other sporting events, Adidas was prepared to block any attempt at "ambush marketing"¹⁴ by Nike.

Adidas spent an additional US$ 175 million to try to preempt any ambush marketing attempts by Nike during the World Cup. It bought up most of the airtime and billboard space, in order to shut Nike out of most of the traditional media for the duration of the event.

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FIFA too announced that it was better prepared to clamp down on any form of ambush marketing and protect its official sponsors. However, Nike's Joga Bonito campaign was designed to sidestep this constraint and target the company's core group of consumers, young males, through non-traditional media like the Internet...

Background Note

In 1957, Phil Knight (Knight), an undergraduate student and middle-distance athlete at the University of Oregon and Bill Bowerman (Bowerman), his athletics coach, realized the need for a good quality American sports shoe. After graduation, Knight joined the Graduate School of Business at Stanford University. While preparing a class assignment paper, Knight hit upon the idea that low cost, high quality running shoes, imported from Asian countries like Japan, where labor was cheap, could be sold in the US and could end Germany's domination of the sports shoe industry...

Excerpts >>

13] Adidas (founded in 1948 by Adi Dassler) is a German company that manufactures athletic shoes, apparel and sporting goods. In 2006, Adidas was the second largest manufacturer of sporting goods, behind Nike. Its 2005 revenues were 6.64 billion euros and its net income was 383 million euros. In August 2005, Adidas announced that it would acquire the US-based Reebok International Limited (Reebok) for US$ 3.8 billion.

14] Ambush marketing (or guerrilla marketing) is a tactic whereby a company attempts to associate itself or its brand with an event (often a sporting event) in order to gain some of the benefits associated with being an official sponsor without incurring the costs of sponsorship.

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