Harnessing the Power of Online Social Communities for Branding and Market Development

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Case Details:

Case Code : MKTG164
Case Length : 20 Pages
Period : 2000-2007
Pub Date : 2007
Teaching Note :Not Available
Organization : Nike, Inc., Procter & Gamble Company, ABC Entertainment
Industry : Footwear/ FMCG/ Media and Entertainment
Countries : Europe, USA

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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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Caselet 1: Nike's Joga Bonito Campaign for the 2006 FIFA World Cup

Football is one of the few sports where Nike, Inc. (Nike), the world's largest athletic shoe manufacturer and the most widely recognized sports brand in the world, trailed behind its arch-rival Adidas-Salomon AG (Adidas) . Adidas had dominated the sports goods market for football since the 1950s and also held the distinction of being the official sponsor in all the FIFA World Cups (World Cup) held since 1978. Nike began to show interest in the football market during the 1994 World Cup, which was held in the US. Despite being a late entrant, Nike had managed to corner a large share of the market and was second only to Adidas. As of March 2006, Nike's market share in the football market worldwide was 26 percent while Adidas had a share of 35 percent.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

With football being a widely watched sport, Nike felt that visibility in the 2006 World Cup would be vital for it to dislodge Adidas and become the market leader. The World Cup was expected to give an effective platform for marketers to showcase their brands and reach out to a huge captive audience. Prior to the start of the event, Infront Sports & Media (Infront), the official holder of the broadcast rights for the event, estimated that the event would be broadcasted to over 200 countries and territories.

Infront projected a cumulative viewing audience of 32.5 billion, which was a 10 percent increase over the 2002 World Cup. The global market for branded football-related sports products was estimated to be approximately €2.5 to €2.6 billion (around US$3.3 billion) in 2005...

Caselet 2: P&G Empowers Teens and Moms

Since its inception, Procter & Gamble Company (P&G), a leading manufacturer and marketer of consumer products, has always placed great emphasis on marketing and developing brands. It is credited with pioneering many concepts in branding and marketing. It established a Marketing Research (MR) department as early as 1924 and became one of the first companies in the world to conduct formal research on consumers' needs and preferences. It was also considered the pioneer in introducing a formalized brand management system way back in the 1930s.

The start of the new millennium saw P&G harnessing the power of online communities to generate word-of-mouth (WOM) advocacy for its brands. Though WOM marketing is a recognized marketing tool that has been used for a long time, analysts credited P&G for pioneering its use on a large scale. P&G did this by building two online communities Tremor (Tremor.com) and Vocalpoint (Vocalpoint.com). Tremor was an online community for teenagers while Vocalpoint was an online community for moms (Refer to Exhibit III for a screenshot of Tremor.com, and Exhibit IV for a screenshot of Vocalpoint.com)...

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