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Nike's competitive environment
Nike's competitive environment
Nike marketing strategy
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Recommended: Nike's competitive environment
Nike: Maintaining a Promotional Edge
Nike’s initial product advertising strategy of using professional athletes for raising
demand through word-of-mouth provided good publicity. However, its selective-demand
advertising was mainly focused on high-priced shoes for traditional sports, and ignored
newly developed market segments such as aerobics and extreme sports, and new trends
such as brown shoes and casual footwear (Etzel, Walker, and Stanton).
Nike launched a successful advertising campaign around its "Just Do It" catch
phrase and "swoosh" logo. Nike increased its visibility through vertical cooperative
advertising; expanding its product line to include apparel, equipment, and accessories,
which led retailers to use the Nike brand to attract customers to their stores. Nike gained
a high level of publicity and increased its appeal to both men and women when it signed
famous athletes like Michael Jordan and Venus Williams (Etzel, Walker, and Stanton).
Further exposure was gained when Nike promoted its brand near major events,
giving the impression that it partly sponsored the events. It also increased its sales
promotion through the sponsorship of sporting events and collegiate teams. It gained
exposure in extreme sports through cooperative advertising when it partnered with a
skateboard manufacturer for the purpose of developing skate shoes (Etzel, Walker, and
Stanton).
Public relations were negatively affected by allegations of child labor in third-
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world factories. However, the subsequent negative publicity increased the exposure for
its online NIKEiD shoe personalization service. Nike is generating more selectivedemand
advertising towards women to increase the revenue share for that market
se...
... middle of paper ...
...ccessful items, and reducing
the guesswork (Kirk, 2006).
Nike has resigned basketball star Kobe Bryant, and is making its mark in the 2006
Winter Olympics by sponsoring controversial skiing star Bode Miller. Miller’s Nike ads
encourage viewers to join “the bold, the brazen and the unintimidated” (Politi, 2006).
Works Cited
Kirk, Jeremy. “Nike BI Project Seeks Standardization.” IDG News Service 6 Feb. 2006.
8 Feb. 2006 .
Koch, Christopher. “Nike Rebounds: How (and why) Nike Recovered from its Supply
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Chain Disaster.” CIO Magazine 15 June 2004. 2 Feb. 2006
.
Etzel, Michael., and Bruce Walker, and William Stanton. Marketing. New York:
McGraw-Hill, 2004.
Nike Foundation. Retrieved February 2, 2006, from
http://www.nike.com/nikebiz/nikefoundation/home.jhtml
Politi, Steve. “May Bode Go Downhill Fast.” The Star-Ledger 8 Feb. 2006. 8 Feb.
2006 .
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Mega brands like Nike have been described as mediums for of globalization and technology for years. Nike being a flexible brand, elevated to the next level. The end results for Nike was innovating ad campaigns, superstars like basketball legend Michael Jordan, expansion of mega stores such as Nike Town, and Nike World campus. The Nike swoosh is meanwhile believed to be the most recognizable brand icon or corporate logo, conveying "Nike" without the need of words. The swoosh was designed by a university student attending a class taught by Nike CEO Phil Knight. (Amran et al., 2014).
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.
Nike does have the most sponsored players and they do have the most popular sports player on their side but just because they have Lebron James doesn't mean they have the best shoe/clothing item(s). Adidas have collabed with one of the most sensational artist out there and his name is Kanye West. Kanye West has brought up a whole new level to the shoe game and sponsorships. With creating one of the best designer shoes in the world, The Yeezy, he has singlehandedly changed the Adidas brand forever. “Kanye West is probably the most influential artist on the planet right now and sports adidas – even though the stripes are missing on his own Yeezy line.” (9 Reasons why adidas is better than nike.) No one wants to get the Lebron 13’s or Jordans when yeezy’s are out there. Adidas have several sponsorships/Collabs and they are revolutionary, way more than
The marketing goals are: Increase customer retention, Increase eCommerce Sales, Increase our Community Involvement. The first goal specifically works towards reaching 60% repeat sales through different promotional strategies like emotional marketing and sponsoring different professional athletes. Customer retention is extremely important to maintain Nike’s market leader position. Increasing eCommerce is a major focus for Nike. Last year we were able to increase our eCommerce sales by a profitable 51%. Our second goal is to continue this trend by increasing online sales by 50% every year for the next four years. It is our belief that doing so will solidify Nike as a leader in the online athletic market. Nike truly believes that sport can change
An article recently published in The Wall Street Journal focused on the effects of Nike
product as we can see that the Nike Shox was a run away success in U.K
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.
When comparing prices, consumers can find the exact same style Nike boot in Adidas and pay a lower price. Essentially what the consumer is paying extra for is the Nike brand. Looking back at my journal you can see I wore the Adidas boots one time, then went out and bought Nike boots. “Brand loyalty is based on an emotional connection toward the brand and a conscious commitment to find this brand each time the consumer purchases from this category.” 112 Brand Promotion I could have worn the Adidas boots for free but I spent the time and money to go purchase the Nike brand. “brand loyalty and advertising work together to create another important economic effect related to pricing flexibility and profits. When consumers are brand loyal, they are generally less sensitive to price increases for the brand.” 45 Advertising and Integrated Brand Promotion Being able to raise prices but still keep the consumer market is very valuable. This is one of the main reasons brands strive to have brand loyal
Nike Inc. was founded in 1962 by Bill Bowerman and Phil Knight as a partnership under the name, Blue Ribbon Sports. Our modest goal then was to distribute low-cost, high-quality Japanese athletic shoes to American consumers in an attempt to break Germany's domination of the domestic industry. In 2000 Nike Inc. not only manufactured and distributed athletic shoes at every marketable price point to a global market, but over 40% of our sales came from athletic apparel, sports equipment, and subsidiary ventures. Nike maintains traditional and non-traditional distribution channels in more than 100 countries targeting its primary market regions: United States, Europe, Asia Pacific, and the Americas (not including the United States).
...fected by print advertising even if they don’t realize it. Nike uses all different forms of advertising to appeal to all audiences.
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.