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Nike advertising strategy
Nike advertising strategy
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Have you ever found sneakers you want so badly but they’re too expensive? Sneakers these days are high in money and most people can not afford to spend money on shoes that will get minimal use. I think sneaker prices are getting too high and they need to get lower for the people who love them. “A shoe is not only a design, but it's a part of your body language, the way you walk. The way you're going to move is quite dictated by your shoes.” said by Christian Louboutin, who is a famous shoe designer from France.
Adidas shoes cost around $170 and Jordan shoes cost around $200 on average. These brands are really popular, attract many people, and are highly talked about and many people buy their products. These brand of shoes come with new technology to increase the comfort of the person wearing the sneaker. Nike and Jordan have an air bubble technology that maximizes the comfort of the person that wears the shoe, this air bubble makes it feel light on your feet as it feels like you are actually walking on air. The Adidas brand shoes also come with newly innovated technology, this technology is called
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boost it is made of thermoplastic polyurethane (TPU) which is in tightly shaped foam nuggets that are placed in the midsole to absorb the energy that you give when you place your foot down on the ground when you walk. It absorbs this energy and gives it back to you so it is easier to walk with more ease . These technologies have revolutionized the the sneaker industry forever. Texture and the quality of the shoe is key for some people, these shoes give you great quality. The materials that are often used with the average shoe is suede, mesh, leather, plastic, textile, foam, and rubber. Suede is a soft fabric that is made out of leather that has a soft and a smooth finish. Some of these shoes that fall in this category is the Adidas NMD R1 which has boost and retails for $160 and the Jordan Retro 3 which has the air bubble which retails for $220. The high prices force people to turn to other things besides the stores .Selling and buying sneakers can make profit and make lots of money, if you are educated about shoes. If you are interested in sneakers and you have a tight budget there is a big sneaker market that involves other people, just like you that can not afford the high priced sneakers. There are many apps, people, and consignment stores that offer cheap and authentic shoes. These options are not always the best for some people. Many people love the shoes that the brands offer, but they might not like the shoe so much on their feet. Many people get shoes just to have them or wear the brand on their feet. In some cases sneakers are what make people's day and sometimes it is the only thing they can look forward to, is to show off their kicks. Sneakers are made for less money in factories than they retail. They are made in second hand countries like Thailand, Cambodia, Singapore, Laos, and the Philippines. In first world countries like China and Mongolia they are also made. The workers that work here are paid low income (minimum wage) , work in dirty factories, and their is little to no space to for them to be made. So it is not fair for them and it is also not fair for us that they are being sold at such a high and ridiculous price. Overall second hand sneakers could be the right place to buy sneakers. Many people love everything about sneakers , but are halted by it’s prices. I am a person that loves sneakers and I can not stop looking at them. The prices for me are too high and other parents like mine are do not want to buy them for me because they work hard for the money they have and they do not want to pay that ridiculous price. People’s hopes and dreams are crushed because the prices are not unconscionable . The demand for the sneakers is what makes it so sought after. For example Nike makes 34.28 billion dollars a year and 13% of that income was from sneakers. Adidas’ income was 19.29 billion dollars a year and 16% of that income was also from sneakers . This shows that they make a good amount of money off of their over-priced sneaker in my opinion. On the other hand some people think that sneakers prices are just right.
They can believe that these sneakers are only for people that are true fans and if you want them to be cheaper you are not a true sneakerhead. A sneakerhead is a person with background knowledge of certain sneakers and acquires the latest trends and shoes. The prices keep away the fake fans and only the dedicated buy them. These prices are good because it makes it so others do not get them and it is only limited to the few real sneakerheads. If you can not work later or find money to buy these you aren’t truly the person to be claimed as a sneakerhead. They go out of their way to find this money and fulfill their ambitions and dreams to make it so they can say they have the latest and newest sneaker and you don’t. That’s why sneaker prices are good and should stay the same if I saw it this
way. I think sneaker prices are too high and most people can not afford them. Sneaker prices halt people from buying shoes they always wanted, prevents them from having what they love like brands as Jordan, Adidas, and Nike shoes off of their feet, and it means they can not make profit or sell sneakers they have bought. Sneakers bring many people together and can bring out the best of people. Sneakerheads deserve better quality. Sneakerheads deserve better respect. Sneakerheads deserve better and more efficient prices so a vaster group of people can buy them.
The most popular Air Jordan is the Retro 11’s, and they were wore by Michael in two out of the six NBA finals he was in. The Retro Jordan 11’s are most commonly known for their patent leather, and are available in both low and high top sneakers, but are hard to find due to the low supply and high demand. In the past some of the Air Jordan 11 exclusives have gone as high as $10,000 in auctions and charity events. The statistics show that over every single air Jordan 11 have sold out when they have been released. Many people have been seen with Air Jordan on their feet, whether it’s walking down a sidewalk, on the court, or even on the tennis court. Yes that is right Jordan makes a Tennis Shoe, which you can currently find for sale on eBay for around $600-800. Jordan has teamed up with many celebrities to make their own signature shoe, including Drake, Roger Federer, Dwayne Wade, Eminem, Usher, Macklemore, and many more. The most famous Jordan “team-up” with a celebrity is Drake, His Jordan shoes come with the name of “OVO” (Octobers Very Own), and they are very high-end and high-class sneakers to accompany your feet. The OVO 10’s released not too long ago and retailed for $225 and they sold out within seconds, and the resell value is around $800. This is the reason why many people collect the shoe and sell it for a pretty hefty profit. The releases are very hectic and occur about
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.
Nike loved the attention it was getting by having “the shoe banned by the NBA.” They loved the attention so much that Nike wanted Jordan to wear the shoes during games and in return they would pay all of his fines. Because of the shoe’s controversy and success, Nike released the Jordan 1 in 23 different color variations to reflect Jordan’s number being 23. Each shoe came with two different color laces that matched the colors of the shoe. The Air Jordan 1 retailed at
After the direction of the new shoe line has been developed, a price of each shoe will need to be determined to see if a profit can still be made. The price will be benchmarked against other shoes in the same category to make them competitive in the buying market. L.A. Gear may even try to undercut the prices if they are still able to maintain a profit to entice the consumers to try their new product and gain their loyalty. They must be careful though not to make them to inexpensive because they want the customer to feel that these are the shoes they need to perform better and the expense would be well worth it.
In order to boost revenue, management decided to develop more athletic-shoe products in the midpriced segment which are sold for $70-$90 a pair. As for the cost side to be considered, Nike planned to exert more effort on expense control. The company executives forecasted that their long-term revenue-growth targets of 8% to 10% and earnings-growth targets of above 15%.
Nike is a worldwide known business that many people around the globe are attracted to purchase. They make a variety of products ranging from shoes and clothes to sports gear, sports products, and many different accessories. Nike is designed for everyone ranging from infants to elderly. Because of their range of age for products, this makes them a huge competitor. Being able to appeal to all ages and styles of people.
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
For an extended period of time shoes have been an integral part of the modern consumer’s life. According to the vast majority of fashionably inclined individuals, shoes can either make or break a person’s entire appearance, which explains why people invest their hard earned coins into comfortable abodes for their feet. Particularly, the annual budget consumers spend on shoes in the United States is approximately $20 billion dollars, and $6.46 billion dollars stem from running shoes alone. This is what initially piqued my interest and compelled me to interview a manager from one of most popular shoe stores known as Footlocker. As a side note, the interviewee was only willing to share the information because he is no longer an employee of
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
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
The Shoe Industry consists of a multitude of footwear categories, varying in utility, style and occasion. When overseeing the market for the shoe industry, we must look at the influence of all shoe trades universally to comprehensively understand how the disparities in sales relate to the needs of specific regions. The global retail market within the shoe industry currently represents $185 billion, driven primarily by Asian and Latin American economies and is expected to reach $211.5 billion by 2018. The growth rate globally was 6% between 2004 and 2008, contrasting to the 2% compound annual growth from 2008 to 2012. The United States holds over 24% of the overall industry size it projected over $48 billion in annual revenue in 2012. Domestically, the growth rate has been flat at 0.3%. On a unit volume basis, global footwear consumption for 2012 is approximately 11,421.3 million (in pairs), where the United States makes up roughly 2,741.1 million (in pairs). By 2018 the U.S. Census Bureau has forecasted a steady decline within demand domestically of 3% and an increase of 1% globally.
The most expensive shoes in 2016 is the “Ruby Slippers” at the selling price of US$3 Million. (Abcnewspoint.com, 2015) I don’t think it is OK for such shoes to be sold, not even to begin with manufactured.
Nike American Sportswear generated revenue of 7495 million US dollars in 2014, which was almost double of 2009 revenue of Nike Sportswear (Statista, 2015).The sales of (Athletic) Sportswear of Nike 90 million US dollars, however, the sale of Adidas Sportswear (Competitor of Nike) was 25 million US dollars, which was not even one third of Nike Sportswear sales (Statista, 2015).Nonetheless, the return on assets and equity are 13.41% and 26.43% respectively (Yahoo Finanace, 2015).
The reason for this is they are trying to save costs for producing there shoes
Shoes are not only worn to protect the human feet. They are also worn because they add the final touch to the style you are trying to create. The history of shoes is very long and nobody really knows when the first shoes were created but we do know that they were originally made to warm the feet. Now, there are many different types and each kind helps you function a different way. The shoe is also made up of many parts and every kind of shoe has different parts then other types. Year by year, shoes have been improving and becoming more and more popular. Now, we have all the equipment and all the materials we need to make the shoe better than ever.