Slide 1

NIKE

Brief HistoryPhil Knight and Bill Bowerman formed Blue Ribbon Sports to make quality running shoes. Sold shoes at Track Meets.Nike, named after the Greek Goddess of Victory1972 Olympics, convinced some of the runners to wear their shoesBy 1979 had obtained 50% of the running shoe marketWent public in 19801992, opened the first NIKETOWN1997, launched Jordan-Brand footwear2000, expanded into the electronic market such as heart monitors, two-way radios, and MP3 players.

BrandNike is the number one sports brand in the world.Nike signs with some of the top athletes of each sport to represent Nike to the fullestNike wants to be seen as a symbol of strength, dedication, hard work, sweat, and perseverance that will create the desire to succeed.Nike wants to sell a feeling and an emotion

Nike is engaged in the design, development and worldwide marketing of footwear, apparel, equipment, and accessory products.25,000 retail accounts in the US.In nearly 200 countries.Athletic footwear designed specifically for athletic use.Creates designs for men, women, children in a variety of categories: Running Basketball Cross-trainingNike Commercial Nike Commercial 2

Tennis Golf Soccer Baseball Football BicyclingVolleyball

Strengths and WeaknessesStrengthsVery competitiveSponsorship of top athletesValuable coverageNo factoriesIf prices rise and can be made cheaper somewhere else, will move the production.WeaknessesVery diverse range of sports products but is very dependent on footwearCould be vulnerable if for any reason market share wears away

OpportunitiesNike as a fashion brand

6Buyers do not always wear Nike for sports occasions. The youth culture would argue that Nike is indeed a Fashion Brand. Shoes, Sunglasses and Jewelry. High value items like these tend to associate well and with that generate high profits. OpportunitiesThe World Cup & Olympics

7The two most watched sporting eventsNikes CompetitorsAdidasNew BalanceConverse (prior to being bought by Nike in 2003)PUMASketches U.S.ATimberlandUnder ArmourK-Swiss

8Nike owns 57% of the market and compete directly with New Balance, Adidas, and Fila. Nike invests a lot of money into R&D and produce high quality products at an affordable price. They do with by outsourcing.

ADIDASKnown for their athletic shoes#2 maker of sporting goods in their current marketRecently won the sponsorship for the 2008 OlympicsBought Reebok in 2006Sponsor Kobe Bryant, David Beckham & Anna Kournikova

Impossible is Nothing

Top of the market for performance apparelJust starting to come into athletic footwearIntroduced football cleats in 2006Introduced baseball/softball cleats in 2007Primary consumers are men but are expanding towards women and childrenOffers clothing made from new technology to keep athletes warm/cool

Under Armour

Distributes and sells in over 25,000 retail accounts in the U.S.Stopped selling their shoes at Sears and announced a partnership with Footlocker in 2007.Launching House Of Hoops by Footlocker which would hold only Nike productsInvesting more time and money into the international markets, specifically Asia/Pacific (15% of total sales)Introduced new line of retro shoes to the Chinese in February of 2008 to commemorate the 1984 Olympics Partners with Apple to come up with Nike Plus-branded shoes

Nike Sales11They debuted the ads during the holiday season in 2007

Nike uses innovative strategies to always stay above to competition.Always introducing new products such as Nike Shox, shoes with ipods, etc. Allow consumers to personalize their own apparel.On the Nike Website can build their own shoeNikes High Quality Products

Build Your Own Shoe

DemographicNo defined demographicAnywhere from white male 17-50 athlete to a female 65 and older who needs shoes to walk in for simple exerciseNike avoids targeting specific markets, preferring to broaden its appeal across boundaries of age and social statusCovers every sport, age, demographic and budget of every athlete

Just Do It.Commerical

16What keeps Nike ahead of the curve is by appealing to the emotional side of the consumer. Before the Just Do It. slogan and the revolution campaign, Nike was targeted at serious runners and sports althletes. After sales started to go down they decided to start targeting a broader scope which meant trying to being in women. The Just Do It. campaign targets peoples emotions and their sales started to increase again.Nike SegmentsNike BasketballNike WomenNike GolfCole HannConverse

17Nike women wanted to obviously appeal to women of all ages. During the beginning stages of the division, it was targeted to women who grew up during the Title IX law (passed in 1972) and women who grew up playing sports. Once sales went down, Nike started targeting children of the women who was once the Title 9 Girl. They started sponsoring female athletes such as Mia Hamm (soccer), Maria Sharapova and Serena Williams (Tennis).

Nike Golf entered the market in 1983, four years before the market of golf footwear and has been strong ever since. Wanted to advertise to white men over the age of 40 who were looking to remain active but not interested in a strenuous sport. This worked well until Tiger Woods came along and they then had to broaden their demographic to include the hard sought after African American and under 40 market.

Cole Hann was formed in Chicago in 1928 by Trafton Cole and Eddie Hann, who built the company on a repuation of quality, craftsmanship, style, and service. Cole Hann soon expanded into womens and childrens products as well. Nike purchased Cole Hann in 1988 and this was Nikes first attempt to go outside the athletic shoe business. Cole Hann targets affluent 30-50 year olds of both genders. Cole Hann seperates itself from its competitors by dividing its line into several unique lifestyle collections each appealing to different customers and as well as differetn aspects of the customers life.

Nike BasketballMost successful division of NikeAir Jordan broke Nike into the basketball worldTargets 16 year old males & femalesViral video campaign

MJ Commercial

18Nike saw something special in rookie Michael Jordan and signed him to a 2.5 million dollar deal for 5 years. Air Jordan changed the athletic shoe industry because the style was very different than what was being produced at the time. The NBA banned the shoe from the league but Jordan wore them anyways and Nike paid his fines (up to $5000 a game) just so they would remain in the public eye. This caused the Air Jordan to become a household name and the best selling basketball shoe since 1985.Promotional StrategyHigh qualityStylish sporting apparelInnovative Risk takingHigh profile sponsorshipsWord-of-Foot to sponsorships and TV Ads.Nikes has won many awards for their advertisements

19Nike has surpassed their competitors with ease, despite being decades younger by using creative advertising ideas and aggressive marketing.

Because there are so many competitive athletic brands, it is important that Nike use fresh ideas to stay in front. Integrated marketing is necessary to ensure that every corner of the target market is covered by some information educating consumers about Nikes products. There is such a wide variety of products that there is no way one type of marketing could be enough to reach everyone that would potentially purchase one of them. Promotional StrategyWant to encourage people to be active to promote a reason to purchase their productsYou either ran today or you didnt.Meant to inspire.Produce different ads depending on where the ad will be seen.

20Ads focused towards mens will run in mens and sports magazines and television programs while the same is done for the women.Marketing MixUses three of the four main factors in the marketing mix:AdvertisingSales PromotionPublic Relations

21advertising: Nike targets an audience of active young adults who are looking for shoes that not only provide them with support to perform their favorite activities, but to look good as well. The objectives of these advertisements are to inform this audience about the different selection of products that Nike has to offer and shoe the high quality and performance of these products.

Sales Promotion: chose to use professional athletes endorsements because the founders knew the effect this had on the athletic youth. This made them feel as if they had they product they would be as good or become as good as the athlete endorsing the product. Example: Air Jordan and Michael Jordan ad Be Like Mike.Public Relations: Nike uses public relations in order to keep a good image and reputation in the public eye. PR is used to control the information flow between Nike and the consumer. It also acts as damage control in case something goes wrong or the public is misinformed. Ex. Nike running sweatshops. Nike PR argued that they were providing a path to success for less fortunate people in 3rd world countries. They were able to release many advertisements, news releases and letters to newspapers. Nike does not use personal selling because it is not relevant to their products. They have enough tv ads and print ads to cover their target market, so it is unnecessary for them to talk to their customers individually.Project By:Amy DeMallieTess MauriciLindsay DixonHaylie OstroskyCourtney Rivers