Brands & Branding and Private Labels Case Study

Nike Getting into Subsidiary Brands - Will it Work?

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Abstract:
Nike, one of the leading brands of athletic footwear, apparel, equipment and accessories is Oregon, US based company. It company's 50% of the revenue comes from international sales and it registers it presence in more than 160 countries. Nike owns 400 retail outlets which operate domestically as well as internationally. Over the past few years Nike's subsidiaries have been performing well and as a part of the company's growth strategy and to maintain its position in the market Nike started concentrating on its subsidiary business in the year 2006. With the acquisition of the Starter the company also envisaged to setup itself in the value retail. The case analyses the impact of Nike's subsidiary brand on its core brand.

Pedagogical Objectives:

• The case study has been structured to understand and analyse:
• The effects of subsidiary brands on the core brand
• The dangers of brand dilution and cannibalisation
• Segmentation, targeting and positioning strategies of core brands and subsidiary brands.

Keywords : Apparel and Footwear, Nike, Tailwind,US, Value segment, Subsidiary, Branding, Brands & Branding Case Study, growth strategy, innovation