This document summarizes a case presented by Jacob, Martin, and Mads regarding the Nike-Apple partnership. It provides an overview of Nike and Apple as companies, describes the Nike+ iPod product, and poses three questions for analysis: 1) strategic opportunities and pitfalls of the partnership, 2) how co-branding influences consumer decision making, and 3) the competitive threat posed by the Adidas-Samsung partnership and potential Nike-Apple responses.

1. Case presented by Jacob, Martin & Mads

2. Nike Apple
 A major player in the  Designs and markets
clothing and sports consumer electronics,
equipment industry
computer software and
 Founded in 1964 as Blue personal computers
Ribbon Sports
 Founded in 1976
 Nike sponsors a large
number of high profile  Best known for the
athletes and sports
teams around the world Macintosh computer,
iPod, iPhone and iPad
 Recognized by the “Just
do it” slogan and Swoosh
logo
IntroductionQuestion 1 Question 2 Question 3 Conclusion

3.  The product:
 The Nike + iPod kit measures and records the distance and
pace of a walk or run, using a small chip embedded in a Nike
shoe, which communicates with an iPod and other Apple
software
 The scene:
 Intelligent sportswear
 The case - Nike+ iPod:
 Nike-Apple partnership
 Strategic opportunities/pitfalls
 Co-branding & decision-making process
 Adidas-Samsung vs. Nike + iPod
IntroductionQuestion 1 Question 2 Question 3 Conclusion

4. Conduct an analysis of the Nike-Apple partnership, including a
discussion of the strategic opportunities (and possible pitfalls)
this collaboration presents for each partner?
IntroductionQuestion 1 Question 2 Question 3 Conclusion

5.  Both market leaders within their industry
 Mutual interests
 Same type of customers
 Brand synergy - both ways
 Large joined customer base
 75% of all runners already listen to music (Enclosure 2)
 A Nike crisis affects Apple and vice versa
”The Nike/Apple co-branding ventures is
successfulbecause of its undeniable ability to addvalue
to eachother’sproducts,
therebycreatingsomethinggreaterthan the sum of their
parts.” - The Duffy Agency.
IntroductionQuestion 1 Question 2 Question 3 Conclusion

6. S
The Apple & Nike brands
Innovative
Market leaders
Large loyal customer base
W
Product requirements
High priced
O
Brand synergy
Distribution channels
Expansion of technology
T
Expansion of technology
Potential harmful influences
IntroductionQuestion 1 Question 2 Question 3 Conclusion

7.  Strategic alliance
 Product alliance
 Promotional alliance
 Product development strategy (Ansoff)
 Horizontal diversification strategy
IntroductionQuestion 1 Question 2 Question 3 Conclusion

8. Describe and discuss the consumer decision-making process in
relation to purchasing Nike+ shoes and iPod Sport Kit or Sensor.
How does the co-branding influence the decision-making
process?

9. 2 types of Nike + iPod buyers:
 Dedicated and loyal customers
 Members of the “Nike community”
 “Apple-fans”
 Contemplating customers
IntroductionQuestion 1 Question 2 Question 3 Conclusion

10. Need recognition & Problem
awareness
Information search
Evaluation of alternatives
Purchase
Post-purchase evaluation
“Five-stage model” Kotler, p.
246
IntroductionQuestion 1 Question 2 Question 3 Conclusion

11.  The best of two strong brands
 Brand equity influence
 Collective pitfalls
 Loyal customer base
IntroductionQuestion 1 Question 2 Question 3 Conclusion

12. • Adidas and Samsung have developed a fitness concept, the
“miCoach system” (Enclosures 3 and 4), which bears
resemblance to the Nike + iPod system.
• To which extent does the Adidas-Samsung partnership
constitute a competitive threat to Nike and Apple?
• How may Nike and Apple respond to this?

13.  A differentiated oligopoly market
 Few major players
 Nike-Apple, Adidas-Samsung, Garmin, Polar
 Nike-Apple the market leader
 Adidas-Samsung the market challenger
 Segmental flank attack on Nike-Apple
 Phone
 Nike-Apple respond counter-offensive defence
strategy (iPhone)
IntroductionQuestion 1 Question 2 Question 3 Conclusion

14. 4 P’s
 Difference in:
 Price
 Adidas: $ 300-600
 Nike-iPod: $ 180-230
 Product
 No phone vs. Phone
 Nike shoes exclusively vs. all brands
 Adidas-Samsung: less music storage
 Place
 Adidas-Samsung only sold in Europe
IntroductionQuestion 1 Question 2 Question 3 Conclusion

15.  Operating within the same market  a threat
 Differences in the 4 P’s softens the threat
 Nike-Apple needs to keep an eye on the
other market players
IntroductionQuestion 1 Question 2 Question 3 Conclusion

16.  Strategic opportunities and pitfalls
 Brand synergy
 Collective pitfalls
 Decision-making processes
 Co-branding strengths
 Shared brand equity
 Adidas-Samsung threat
 Same scene, different product
 Nike-Apple response
IntroductionQuestion 1 Question 2 Question 3 Conclusion