Nike Case Study
The apparel powerhouse of the 21st century, and the market leader in athletics, it is no question that business has been booming for Nike. Nike has a massive artillery of recognizable catchphrases and a pair of logos that sum up the brand under one great roof to leave no question on their impact on society. Considering the massive growth that Nike has continued to follow over the last five years their revenue had increased 10%, and $1,775 million just in the last year (Nike Financials 2016). In review of the company’s financials “by deducting all expenses from the topline which in this case is $32.38 billion minus other expenses leaves $3.76 billion for NKE stock” (Nike Annual Income Statement 2016), these figures provide evidence
Nike’s brand strategy focalizes upon the “emotional branding based upon the story of heroism” (Newell 2014), which creates the most success for Nike as they relate the struggle to everyone and makes us want to prove strength for ourselves and win our inner battle with their products. This message plays powerfully in the market showing strength vs weakness and the battle between success and failure where nobody wants to fall under the weak category so they need to work and alternatively purchase Nike’s products to avoid this failure playing off their motivation. Surely the competition in the athletics market is high with competing products and value, which is why Nike is leading with their product innovations and inventions with material innovations such as Dri-Fit and inventions like their Fuelbands and trackers that cooperate with their Nike apparel. Nike is always targeting the professional athlete markets and the current athlete markets; however, Nike is also aggressively targeting consumers who aspire to be “Fit” and are even increasing their focus (by brand sector) on skateboarders, surfers and much of the youth population who may not be viewed as huge athletes but rather athletic individuals. Nike is very prominent in advertising their products to spark the message of increased athleticism in the motivation towards fitness. Advertising by Nike can be seen throughout many different mediums, including social media, internet, television broadcasting, and branding throughout stadiums, gyms as well as on a massive portion of the populations clothing. Because of the massive success of the brand Nike can have a slightly inflated price over that of their competitors with their association with quality in the mind of the consumer. Considering that Nike has made some effort to increase brand equity in companies like Apple
The key to increasing revenue for Nike branch is to make the product as cheaply as possible and keeping the cost of transporting low. Then sell the brand to countries
The developmental stages of a successful campaign help to establish the product in the audience’s mind or consciousness. The stages of the Nike campaign can be described by using the Yale Five-Stage Developmental Model. Yale researchers developed this model while observing the growth of national identity. The first stage of this model is identification. Our text states that “Many products and causes develop a graphic symbol or logotype to create identification in the audience’s mind” (p. 264, Larson). The logo Nike is most famous for is “The Swoosh.” This is the term given to the symbol of winged victory that appears on Nike products. “The design of the swoosh logo was inspired by the wing from the Greek goddess Nike” (p. 3, http://shrike.depaul.edu /~mcoscino/word.html). The Nike logo’s presence can be noted in almost every aspect of the athletic world.
Since its creation, Nike has proven itself as a popular brand and it has created niches by selling products such as footwear, apparels and various types of sports equipment. This paper will attempt to trace the product development of Nike shoes from its origins in conception and design to the manufacturing and production process located in contract factories in developing countries to advertising and marketing of Nike as a cultural commodity and finally, the retailing of the footwear around the world.
Executive Summary Introduction Kimi Ford, a portfolio manager at NorthPoint Group, a mutual-fund management firm, was considering buying shares in the fund she manages, the NorthPoint Large-Cap Fund, with an emphasis on value investing. Ford held an analysts’ meeting to disclose its fiscal-year 2001 results and, most importantly, to communicate a strategy for revitalizing the company. Nike has maintained revenue of about $9 billion since 1997. However, its net income had fallen from almost $800 million to $580 million. Moreover, Nike’s market share in U.S. athletic shoes has fallen from 48% in 1997 to 42% in 2000.
Nike’s goal is to remain unique and different from others in terms of the items offered on the market. Arguably, Nike belongs to a monopolistically competitive market as there only a few organizations with the ability to regulate the amount charged for their product which means they cannot make their prices high as this is likely to make customers move on to other available choices (Nike, Inc., 2012). However, Nike can find a balance between the prices to charge for their products and remaining competitive with other companies in the industry. Nike has formed a distinction between the appearance and performance of their footwear and that of their competitors. Although products are differentiated from other companies, they still influence each other because they are items of the same
Only a week earlier, on June 28, 2001, Nike had held an analysts' meeting to disclose its fiscal-year 2001 results.1 The meeting, however, had another purpose: Nike management wanted to communicate a strategy for revitalizing the company. Since 1997, its revenues had plateaued at around $9 billion, while net income had fallen from almost $800 million to $580 million (see Exhibit 1). Nike's market share in U.S. athletic shoes had fallen from 48%, in 1997, to 42% in 2000.2 In addition, recent supply-chain issues and the adverse effect of a strong dollar had negatively affected revenue.
Many global companies like Nike, Inc. are seen as role models both in the market place as well as in society in large. That is why they are expected to act responsibly in their dealings with humanity and the natural world. Nike benefits from the global sourcing opportunities, therefore areas such as production and logistics have been outsourced to partner companies in low-wage countries like China, Vietnam, Indonesia and Thailand. As a result the company is limited nowadays to its core competencies of Design and Marketing.
There are as many brands as there is ants in the world, but the two brands that pop out are adidas and nike. Those two brands have been going head to head for ages to see who is the better brand. It’s been tested, compared, and debated which brand is better. Whether it’s the quality of the materials or the cost of it, the debate is ongoing. Both brands have been fighting for the top ever since they were both created and I don’t blame them it’d be fantastic to be the best brand in the world. When Nike and adidas are contrasted, it becomes clear that the Adidas brand are better for the overall consumer and enhances sport performance than Nike.
Nike’s Asian operations had previously continued to soar generating US$300 million in 1994 in revenues to a whopping US$1.2 billion in 1997. However based on the Asian economic crisis, this had adversely affected revenues, while regional layoffs were inevitable. Nike also performed well in the European market generating about US$2 billion in sales and a good growth momentum was expected, however, some parts of Europe were only slowly recovering from an economic downturn. In the Americas (Canada and the U.S.A.), Nike experienced a growth rate for several quarters. The U.S. alone generated approximately US$5 billion in sales. The Latin American market at this point was exposed to economic volatility; however Nike still saw them as a market with “great potential for the future”.
From their marketing strategies to their selling philosophies, Nike has developed one of the most recognizable and demanded name and logo tandems ever created.
It’s because when I sport the Nike swoosh, I feel as if I representing the Nike brand and the beautiful, driven, fit women I see in their advertisements. Feeling this way gives me the inspiration and confidence to play my best. I feel as if I identify with the women in the advertisements by wearing Nike. “The relationship between persons and the product remains one of the most crucial signifiers within advertisements. Persons in advertisements supply the consumer with a certain identification frame—whether the person is presented as a user or is presented within a lifestyle setting, the viewer is invited to identify him/herself with the presented person.” 202 Brand Culture. The Nike brand does a great job at doing this to their consumers to create brand loyalty. Nike brand users, just like myself, see the athletes using the brands and feel a certain connection to them. Brand loyalty should not only be a goal for brands because of the benefit of having their logo advertised on consumers who fit within their target market, but also for PRICE SOMETHING ECONOMY
For the past twenty-five years, we have seen one of the most popular brand sayings become a part of our daily life. Nike started its “Just Do It” campaign in 1988 with the simple commercial advertisement of an 80-year-old man, Walt Stack, who runs seventeen miles each morning. This campaign is said to be one of the simplest slogans, but yet one of the most effective ones. While athletic apparel companies are struggling to captivate the attention of potential buyers, Nike has influenced the minds of its consumers with three simple words. As a consumer, we are persuaded though this campaign by several high-profile athletes throughout the years such as, Ken Griffey Jr. and Michael Jordan in the 90’s to Tiger Woods and the Williams sisters in the 2000’s. After too many celebrity scandals, Nike decided to campaign their “Just Do It” ads with everyday athletes. The media has interpreted the ‘Just Do It’ ads in many different forms, but mainly contributing a negative connotation with the athletes Nike selects and their irresponsible behavior. Ethically, this advertisement has been provided a confidence boost to a younger generation. Whether it was bad or good, this has been the outcome from this campaign.
Nike is the number one innovator in the world in athletic footwear, apparel, equipment, and accessories. This worldwide company operates in an extremely different organizational structure than other companies, such as Reebok and Adidas. Nike operates tremendous marketing strategies and develops inventive designs to inspire athletes around the world. This company is one of the largest suppliers in the world in athletic footwear and apparel, main producer of sports equipment, and making Nike the most valuable brand among sports companies. The task for Nike is to join diversity and inclusion to encourage ideas and innovation. Around the world, this company is a popular brand.
For my Senior Colloquium, I plan to evaluate and analyze Nike “Just Do It” campaign launched in 1988. The campaign is one of the top two taglines of the 20th century with it being both “universal and intensely personal” (“Nike, Inc.”). Nike mission is to bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete according to Nike. Nike does more than just make gear for athletes; as a company, Nike believes in the power of human potential. This paper will discuss all aspects of Nike's persuasive campaign. Some of the campaign's strategies, goals, and techniques will be discovered and some persuasive theories that can be useful to the Nike advertising campaign will be identified and explained as well. Afterwards think about these theories, the particular arguments of the campaign will be legitimate.
This project concentrates on the Nike Sports shoe; Nike is one of most significant shoe manufacturing company worldwide. Sportswear manufactured by Nike is known for quality and is most liked brand of athletes. (Daniel, 2011)