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Question: NIKE: Associating Athletes, Performance, and the Brand Nike is the largest seller of athletic footwear, athletic apparel, and other athletic gear in the world, with about 30-percent market share worldwide. Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Air Jordan, Team Starter, and subsidiaries, including Bauer, Cole Haan,
NIKE: Associating Athletes, Performance, and the Brand Nike is the largest seller of athletic footwear, athletic apparel, and other athletic gear in the world, with about 30-percent market share worldwide. Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Air Jordan, Team Starter, and subsidiaries, including Bauer, Cole Haan, Hurley International, and Converse. As of 2011, the company sells its products through a mix of independent distributors, licensees, and subsidiaries in approximately 120 countries worldwide. Nike has grown from an $8,000 company in 1963 to a company with revenues of $19 billion for the year ended May 31, 2010. In 2010, Nike spent an enormous amount of money, more than a billion dollars, on advertising, endorsements, social media, and sales promotion. In order to make sure that this money is being spent properly, Nike relies on marketing research. It has shown a history of innovation and inspiration in its marketing and is quick to adapt to the changing consumer and the world of sports. Nike has used marketing research in understanding where the future growth lies. A recent example is Nike’s shift from marketing in the more traditional sports (basketball and running) to other sports (golf and soccer), where it has not been as strong. Marketing research surveys revealed that the awareness of Nike among soccer and golf players was low, and Nike decided to work on increasing these numbers. Nike has decided that the money needed for licenses in its strong areas can be better spent in other areas where Nike does not have the brand awareness. Today, the Nike Swoosh is recognized around the world. This is the result of more than 40 years of work and innovation. It signed the first athletes to wear its shoes in 1973. Early on, Nike realized the importance of associating athletes with its products. The partnerships help relate the excellence of the athlete with the perception of the brand. Through focus groups and surveys, Nike discovered the pyramid influence, which shows that the mass market can be influenced by the preferences of a small group of top athletes. After it realized this effect, Nike began to spend millions on celebrity endorsements. The association with the athlete also helps dimensionalize the company and what it believes in. With Nike, this was, and remains, extremely important. It wants to convey a message that the company’s goal is to bring innovation to every athlete in the world. Nike also uses the athletes to design new products by attempting to meet their individual goals. Explaining Nike’s strategy of celebrity endorsements, Trevor Edwards, vice president of U.S. Brand Management, says that the sports figures, such as Ronaldo, Michael Jordan, and Tiger Woods, who have endorsed Nike brands, all have represented excellence in some way. Nevertheless, the athletes also have a personal side, such as their drive to win or their ability to remain humble. All these qualities speak something about the Nike brand; this not only benefits the brand, but also helps to define what the Nike brand is and what it stands for. The company also realized that in order to achieve its lofty growth goals, it must appeal to multiple market segments. Based on marketing research, Nike divided the market into three different groups: the ultimate athlete, the athletics participant, and the consumer who is influenced by sports culture. The first segment is the professional athletes. The second constituency is the participants, those who participate in sports and athletic activities but do not see themselves as athletes or as being part of the larger sport. The third segment comprises those who influence others and are influenced by the world of sports. These three different constituencies form three different consumer segments, and Nike uses very different strategies for each. Nike has always been an aggressive user of marketing research and this has been shown in its attack on the European market. It decided to concentrate on different sports in order to reach European consumers. Americans love baseball. And football. And basketball. But Europe’s favorite game is soccer. Nike placed its focus on major sporting events (World Cups and Olympics) and celebrity athletes that are relevant to the European consumer. Marketing research in the form of focus groups and survey research revealed that the best positioning for Nike shoes was one that enhanced performance in the sport. Through massive advertising campaigns, it has been able to change the perception of its products from fashion to performance, and in the process increase sales dramatically. Another technique Nike has used is to specifically design a product line for a certain market. Nike uses marketing research to determine the lifestyles and product usage characteristics of a particular market segment and then designs products for that segment. An example is the Presto line, which was designed for a certain youth lifestyle. Nike focused on the lifestyle and designed the products around this group. It also used marketing research to determine the most effective media to communicate with the target market. Nike launched its “Write The Future” Campaign in 2010 that made extensive use of social media in partnerships with YouTube, QQ.com, and Facebook. It celebrated football’s pivotal moments and allows fans around the world to connect with their heroes. It featured an action-packed film that brought together some of the world’s greatest players to inspire football lovers and sports fans around the world. Footballers could then use this creative to build their own Facebook campaign and be eligible for rewards. Because of these methods, the Nike logo is recognized by 97 percent of U.S. citizens, and its sales have soared as a result. However, Nike faces a new concern: that it has lost its traditional image of being a smaller, innovative company. It also faces future obstacles in maintaining brand equity and brand meaning. Continued reliance on marketing research will help Nike to meet these challenges, associate its brand with top athletes and performance, and enhance its image. Conclusion Nike used marketing research to build its brand into one of the most well-known and easily recognized brands in the world. Nike’s strategy of celebrity endorsements, its expansion into Europe, and the resulting stronger association with soccer are some of the steps taken by Nike to grow its brand. In the coming years, as Nike expands to newer markets and capitalizes newer opportunities, it will have to continue its reliance on marketing research and continue to associate athletes, performance, and the brand.
1. Nike would like to increase its share of the athletic shoe market. Define the management-decision problem.
2. Define an appropriate marketing research problem corresponding to the management-decision problem you have identified.
3. Develop a graphical model explaining consumers’ selection of a brand of athletic shoes.
4. How can qualitative research be used to strengthen Nike’s image? Which qualitative research technique(s) should be used and why? How can Nike make use of social media in this context?
Identify the Management − Decision Problem
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Tensions increased when Onitsuka Tiger gave an ultimatum to BRS to sell 51% of the business. The offer was refused by BRS, and they decided to launch their own footwear brand. Nike’s first shoe was named “Moon Shoes” and was made by Bill Bowerman in a waffle iron. Further innovation led to the creation of “Nike Cortez”, the company’s first major success due to advanced design and technology. By 1980, Nike had a 50% market share in the US athletic shoe market.
Did you know?
Nike’s logo, the famous “Swoosh,” was designed by a student named Carolyn Davidson, who was paid $35 for it.
Nike’s Business Model
Nike’s success is due to the combination of two key elements, i.e., style and high performance. Nike has a robust business model built around the following key themes:
- Innovation: Nike has consistently invested in research and development to develop superior products as compared to its competitors. The company has a Nike Sports Research Lab and research committees consisting of athletes, coaches, orthopedists, etc. The Nike Flywire Support system, Trainer 1 shoe, Lunarlite foam cushioning, etc., are some of the innovations in recent years that have helped Nike stay ahead in a fiercely competitive market.
- Global Supply Chain: The company partners with factories in countries like Vietnam, China, Indonesia, etc. to manufacture products. Low manufacturing costs in developing nations and high-quality standards have helped Nike generate consistent profits. Local manufacturing and a quick supply chain help Nike serve its customers worldwide.
- Direct-to-Consumer Focus: Nike has been focussing on selling its products through platforms like Nike.com, the SNKRS app, and its stores worldwide. Nike has been able to increase its profit margins and monitor customer experience closely due to this strategy. Furthermore, customers feel more connected with the brand, which helps create a strong brand loyalty.
- Athlete Partnerships and Sponsorship: Nike is in the business of athletic footwear, and its decision to partner with the best athletes in the world has been a masterstroke. Michael Jordan partnered with Nike in the 1980s to launch the iconic “Air Jordan” product line. Nike continues to collaborate with top athletes, including LeBron James, Serena William, Cristiano Ronaldo, etc.
Nike’s Marketing Strategy
Nike is a master at marketing its products. Nike has always tried to connect with customers on a personal level because the general public tends to remember emotions far more than features. Nike’s marketing strategy has been based on the following themes:
- Personalized Approach: Nike launched the “Just Do It” campaign in 1988, and the tagline is aimed at inspiring people to push beyond their limits. These ads express people’s desire for self-improvement and empowerment, making them feel a personal connection to the brand.
- Partnership with Athletes: Partnerships with fan-favorite athletes encourage the public to buy products and be a part of the Nike family. Nike carefully selects athletes who align with its brand values. Every time the public sees these athletes’ brilliance and perseverance, they are immediately reminded of the values Nike stands for.
- Social Media Platforms: Nike has used social media to its maximum and has done a great job of blending digital and physical marketing strategies, creating a seamless experience for consumers. Nike launched the “Nike Run Club” and “Nike Training Club” apps that offer personalized workout plans, helping Nike become a part of its customers’ everyday lives.
- Niche Markets: Nike owns sub-brands like “Jordan”, “Converse”, and “Nike SB” to cater to specific communities. This helps them build loyalty within smaller, passionate groups and distinguish themselves from their competitors.
Nike’s rise from a small business selling shoes out of a car to one of the world’s most influential brands is magnificent. Nike’s success is due to its business model, innovation, and robust marketing. Nike is much more than a company selling shoes due to its personal connection with its customers, which has helped it create strong brand loyalty. Nike’s “Just Do It” message encourages everyone to chase their dreams without paying attention to the obstacles in their path.
Frequently Asked Questions (FAQs)
Who founded nike.
Nike was established by Bill Bowerman and Phil Knight in 1964. Initially, it was called “Blue Ribbon Sports” before being renamed Nike in 1971.
What is the business model of Nike?
Nike’s business model is based on continuous product innovation, a global supply chain, direct-to-consumer sales, and strategic partnerships with athletes.
What is Nike’s most famous marketing campaign?
Nike’s “Just Do It” campaign is its most iconic marketing campaign.
What makes Nike a major player in the footwear industry?
Nike has become a major player in the footwear industry due to its innovative products and effective marketing.
How has Nike contributed to sustainability?
Nike has been involved in sustainability initiatives such as “Move to Zero”, which aims to reduce waste and lower carbon emissions. The brand also uses recycled materials in some of its products to reduce its environmental impact.
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NIKE: Associating Athletes, Performance, and the Brand
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This report is all about to show a Marketing plan for Nike’s products; with reference to older offerings the report shows the plan that how can Nike offer new products in the market. With respect to this the report contains comprehensive marketing plan components including company analysis (Nike’s current and future status), situation or market analysis and competitors analysis; the report shows the Nike’s objectives and marketing strategies in terms of its 4ps that is it is shown that Nike can offer and increase its product range by offering other related products as aerobic products to its customers and set value-based pricing strategy accordingly, and for new offerings it can increase its other media other than commercials that is it can focus more on social media to promote its new products and it may expand its business in other countries as China, Middle-East etc. Beside this, the financial budget of this marketing plan has been discussed which is been forecasted by reviewing Nike’s previous years revenue and marketing expenses figures. Also execution plan as well as contingency plan has been shown which is thoroughly depends upon Nike’s senior management and team work which would make its objectives possible new offerings.
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This study aims to examine the uniqueness of the corporate communication carried out by Nike when the well-known brand competes to sign a contract with athletes who reach their peak performance to promote its apparel. However, Nike signs contracts with players when they are still rising stars and then leaves them. Nike does something that well-known brands do not usually do. Normally, they compete to attract stars who are in their golden age. This research was conducted using a qualitative approach through case study research. The materials of this research were obtained by conducting a literature review, matters related to the Nike author's boredom collected from various sources, and reviewed using corporate communication logic. The results of this study indicate that Nike's steps are aimed at creating a new impression without leaving the old self-image.
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NIKE: Associating Athletes, Performance, and the Brand
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- Análisis De Contenido Del Comercial De Nike De La Campaña “Escribe El Futuro” En El Mundial 2010 Y Su Contextualización En El Discurso De La Postmodernidad ANÁLISIS DE CONTENIDO DEL COMERCIAL DE NIKE DE LA CAMPAÑA “ESCRIBE EL FUTURO” EN EL MUNDIAL 2010 Y SU CONTEXTUALIZACIÓN EN EL DISCURSO DE LA POSTMODERNIDAD DIANA MARCELA LOANGO CAVIEDES SARA MARÍA ZAMORA CUELLAR UNIVERSIDAD AUTÓNOMA DE OCCIDENTE FACULTAD DE COMUNICACIÓN SOCIAL DEPARTAMENTO DE PUBLICIDAD Y DISEÑO PROGRAMA DE COMUNICACIÓN PUBLCITARIA SANTIAGO DE CALI 2012 ANÁLISIS DE CONTENIDO DEL COMERCIAL DE NIKE DE LA CAMPAÑA “ESCRIBE EL FUTURO” EN EL MUNDIAL 2010 Y SU CONTEXTUALIZACIÓN EN EL DISCURSO DE LA POSTMODERNIDAD DIANA MARCELA LOANGO CAVIEDES SARA MARÍA ZAMORA CUELLAR Pasantía de Investigación con el grupo GIMPU (Grupo de Investigación de Mercadeo y Publicidad) Para optar al título de Comunicador Publicitario Directora: CARMEN ELISA LERMA Publicista y Psicóloga UNIVERSIDAD AUTÓNOMA DE OCCIDENTE FACULTAD DE COMUNICACIÓN SOCIAL DEPARTAMENTO DE PUBLICIDAD Y DISEÑO PROGRAMA DE COMUNICACIÓN PUBLCITARIA SANTIAGO DE CALI 2012 Nota de aceptación: Aprobado por el Comité de Grado en cumplimiento de los requisitos exigidos por la Universidad Autónoma de Occidente para optar al título de Comunicador Publicitaria. PAOLA GÓMEZ Jurado CARMEN ELISA LERMA Director Santiago de Cali, 13 de Febrero de 2012 3 AGRADECIMIENTOS Principalmente le agradezco a Dios, por haberme permitido emprender mis estudios de Comunicación publicitaria satisfactoriamente, por darme la fortaleza y la motivación de seguir adelante con el proceso y con este proyecto de investigación, el cual fue desarrollado con el mayor esfuerzo. Asimismo a mi madre y mi padre por estar ahí siempre, apoyando, animando, levantando en los momentos de altibajo y alentando en las situaciones de cansancio donde uno creo que el culminar este proceso será totalmente complejo; por estas razones y mucho más, les agradezco con todo mi corazón el verdadero esfuerzo que hacen por mí, por lo que soy y por todo lo que puede llegar a ser. [Show full text]
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Case Study | Nike And The Sense Of Having A Brand Mantra
Case Study | Nike And The Sense Of Having A Brand Mantra 2 min read
A brand with a keen sense of what it represents to consumers is Nike . Nike has a rich set of associations with consumers, revolving around such considerations as its innovative product designs, its sponsorships of top athletes, its award-winning advertising, its competitive drive, and its irreverent attitude.
Internally, Nike marketers adopted a three-word brand mantra of “ authentic athletic performance ” to guide their marketing efforts. Thus, in Nike’s eyes, its entire marketing program—its products and how they are sold—must reflect the key brand values conveyed by the brand mantra.
Nike’s brand mantra has had profound implications for its marketing. In the words of ex-Nike marketing gurus Scott Bedbury and Jerome Conlon, the brand mantra provided the “intellectual guard rails” to keep the brand moving in the right direction and to make sure it did not get off track somehow.
Nike’s brand mantra has even affected product development. Over the years, Nike has expanded its brand meaning from “running shoes” to “athletic shoes” to “athletic shoes and apparel” to “all things associated with athletics (including equipment).”
Also Read: Coca-Cola Learned Branding Lesson The Hard Way
Each step of the way, however, it has been guided by its “authentic athletic performance” brand mantra. For example, as Nike rolled out its successful apparel line, one important hurdle for the products was that they should be innovative enough through material, cut, or design to truly benefit top athletes. The revolutionary moisture-wicking technology of their Dri-Fit apparel line left athletes drier and more comfortable as they sweat. At the same time, the company has been careful to avoid using the Nike name to brand products that did not fit with the brand mantra, like casual “brown” shoes.
When Nike has experienced problems with its marketing program, they have often been a result of its failure to figure out how to translate its brand mantra to the marketing challenge at hand. For example, in going to Europe, Nike experienced several false starts until realizing that “authentic athletic performance” has a different meaning over there and, in particular, has to involve soccer in a major way. Similarly, Nike stumbled in developing its All Conditions Gear (ACG) outdoors shoes and clothing sub-brand, which attempted to translate its brand mantra into a less competitive arena.
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Nike used marketing research to build its brand into one of the most well-known and easily recognized brands in the world. Nike’s strategy of celebrity endorsements, its expansion into Europe, and the resulting stronger association with soccer are some of the steps taken by Nike to grow its brand.
In the coming years, as Nike expands to newer markets and capitalizes newer opportunities, it will have to continue its reliance on marketing research and continue to associate athletes, performance, and the brand. Questions. 1. Nike would like to increase its share of the athletic shoe market.
Nike was established by Phil Knight and his coach, Bill Bowerman, in 1964 and was previously known as Blue Ribbon Sports (BRS). They imported running shoes from Japan’s Onitsuka Tiger and sold them at track meets in the US. In its first year, the business sold 1,300 pairs of shoes and had sales of $8,000, which increased to $20,000 in 1965.
This study aims to examine the uniqueness of the corporate communication carried out by Nike when the well-known brand competes to sign a contract with athletes who reach their peak performance to promote its apparel.
To direct their marketing efforts, Nike marketers internalized a three-word brand mantra: "authentic athletic performance." And the core brand values communicated by the brand slogan must...
Explaining Nike’s strategy of celebrity endorsements, Trevor Edwards, vice president of U.S. Brand Management, says that the sports figures, such as Ronaldo, Questions Michael Jordan, and Tiger Woods, who have endorsed Nike brands, all have 1.
Internally, Nike marketers adopted a three-word brand mantra of “authentic athletic performance” to guide their marketing efforts. Thus, in Nike’s eyes, its entire marketing program—its products and how they are sold—must reflect the key brand values conveyed by the brand mantra.
What demographic, psychographic, and product usage characteristics differentiate Nike loyalists from consumers loyal to other brands? Q3. Develop a graphical model explaining consumers' selection of a brand of athletic shoes.
1) The case discusses Nike's strategy to increase its market share in the athletic shoe market. 2) Marketing research is proposed to understand consumer preferences and evaluate brands on key criteria like performance, comfort, and image.
It associates top athletes with its products to show excellence and influence consumers. Nike divides the market into segments and designs products for each. It also uses research to determine how to market in new regions like Europe.