Nike by Herman Jopia


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Analysis of Nike's Marketing Strategy.
* History
* Strategies
* Some Numbers
* Marketing Practices
* Conclusion

Published in: Education, Business, Lifestyle
  • heii thax it helpd for mah ppt exileny wrk
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  • Herman, very informative and interesting presentation. I enjoyed the historical perspective in your presentation, it makes me appreciate the brand Nike even more. As a former athlete myself (soccer player), Nike has always been my favorite brand. Unbelievable that the “famous” Nike logo was initially created for $35, it must be word billions now, really unbelievable. Nike is really the pioneer in terms of the use of the celebrity endorsement marketing strategy. Also interesting to take note of the fact that Nike owns Converse, also one of my favorite shoe brands. I truly think that Nike’s ability to create innovative products, and its celebrity endorsement by many of the world best sports teams and athletes, are the brand’s core success factors.

    Paul Harleman
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  • Herman- Very nice job on your presentation. I can tell that you researched this company really well. It is amazing to see how much they have focused on celebrity advertising, but I think that is one of the major reasons they have been so successful. The only thing I really saw missing from the presentation your references slide, other than that.. Great Job!

    Brittany Chatterson
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Nike by Herman Jopia

  1. 1. Marketing Strategy<br />Herman Jopia<br />May 8th, 2011<br />MKTG6000: Marketing For Managers<br />Instructor: Dr. Thomas Kholer<br />
  2. 2. A History Of … “Victory”<br />2<br />1962: Blue Ribbon Sport (BRS)<br />Runner Phil Knight and the legendary track coach Bill Bowerman founded BRS. Their mission “to provide athletes with better shoes”.<br />1971: BRS Introduced The “Swooch” and “nike”<br />For $35, a graphic design student created the logo, and based on the Greek Goodness of Victory (Nike) BRS made a soccer cleat called “The Nike” including both, the logo and the name.<br />1972: First Nike Products <br />The first line of Nike footwear is introduced, including the so-called “Moon Shoe” that features a waffle sole, which is distributed to athletes competing in the US Olympic Track & Field Trials in Eugene, Oregon … Here is were the main strategy began.<br />1978: Nike … The brand<br />Blue Ribbon Sports officially changes its name to Nike.<br />
  3. 3. Marketing Strategy<br />3<br />Since the very beginning, BRS / Nikeknew what marketing strategies should be used as the main channel of communication to the world. These can be classified as follows:<br />Informational Appeal by Celebrity Endorsement<br />Strong and In-depth Branding<br />A mix of strategies and campaigns based on Jack Welch’s idea “Change or Die”. This is, Nike recognized it cannot afford the luxury to relax.<br />
  4. 4. 1. Celebrity (Victory)<br />4<br />1978<br />John McEnroe<br />Tennis (USA)<br />1983<br />Joan Benoit<br />Marathon (USA)<br />1992<br />Olympic Team<br />(USA)<br />1996<br />Tiger Woods<br />Golf (USA)<br />1973<br />Steve Prefontaine<br />Tracker (USA)<br />Market Share for <br />Golf Products<br />Grew from 1% to 6%<br />Nike Sold<br />$100 Million<br />The first year<br />1980<br />Steve Ovett<br />Runner (UK)<br />1985<br />Michael Jordan<br />Basketball (US)<br />“Air Jordan”<br />1996<br />Brazil Team<br />Soccer<br />1973<br />IlieNastase<br />Tennis (Rumania)<br />
  5. 5. 1. Celebrity (Victory)<br />5<br />After the success with Brazilian Team, Nike signed other winning teams, and by 2003 overseas revenues surpassed US revenues for the firs time. NIKE also topped B$10 in sales for the first time<br />
  6. 6. 2. Strong Brand Elements<br />6<br />M$200 Campaign<br />Mythological Name <br />Distinctive “Swooch” Logo <br />Powerful Slogan<br />
  7. 7. 2. “Just Do It”<br />7<br />After stumbling badly against archrival Reebok in the 1980s, Nike rose about as high and fast in the ‘90s as any company can. It took on a new religion of brand consciousness and broke advertising sound barriers with its indelible Swoosh, “Just Do It” slogan and deified sports figures. Nike managed the deftest of marketing tricks: to be both anti-establishment and mass market. <br />Newsweek. March 30, 1998.<br />
  8. 8. 2. “Just Do It”. Sales Worldwide (MM$)<br />8<br />9,200<br />877<br />1998<br />1988<br />
  9. 9. 3. Multiple Strategies<br />9<br /><ul><li>Local Marketing: Much of Nike's initial success has been attributed to the ability to engage target consumers through grassroots marketing such as sponsorship of local school teams, expert-conducted clinics, and provision of shoes, clothing, and equipment.
  10. 10. Customization: Nike lets consumers customize athletic shoes for $10 more. A shopper with two different size feet can even get a nonmatchingpair.
  11. 11. Marketing Channel: Nike uses both, Pull and Push Strategy.
  12. 12. Points of Difference: Nike based most of its strategies on “Performance” attribute.
  13. 13. Product Placement: Nike does not pay to be in movies but often supplies shoes, jackets, bags, etc.
  14. 14. Personal Influence: When Nike decided to enter the skateboarding market, it recognized that an anti-establishment. To gain some “street cred”, it sold exclusively to independent shops, advertised nowhere but skate magazines, and gained sponsorships from well-admired pro riders by incorporating them into product design</li></li></ul><li>3. Multiple Strategies … Up To Date<br />10<br />
  15. 15. Critiques<br />11<br />NIKE is also famous for its lack of ad pretesting. It cost Nike millions. In 2004 Nike ran the “Chamber of Fear” Commercial where LeBron James defeated, among others, a KungFu master and a pair of dragons (sacred symbols). It was banned in China for “Insulting National Pride”<br />
  16. 16. Nike Today<br />12<br />NIKE, Inc.’s wholly-owned affiliates Cole Haan, Converse, Inc., Hurley International, LLC, NIKE Golf, and Umbro, Ltd. . They play a significant role in our future growth plans. <br />At the end of fiscal 2010, NIKE, Inc.’s affiliate businesses contributed approximately $2.5 billion of the company’s $19 billion in revenue. <br />As part of our growth strategy, we continue to invest in opportunities that will generate the highest possible long-term returns.<br />
  17. 17. Is Nike Successful ? [B$ Worldwide]<br />13<br />19<br />2010<br />9.2<br />1998<br />0.8<br />1988<br />
  18. 18. Marketing Principles<br />14<br /><ul><li>A great Ideastated in its mission: “to provide athletes with better shoes”.
  19. 19. A sense of victory associated to its Product, from the inspiration in its Greek goodness “Nike” to the most respected sport men, women and teams around the world.
  20. 20. A clear vision of branding. The name “Nike”, the “Swoosh” logo and its unforgettable “Just Do It”.
  21. 21. Its multi-dimensional and bundled strategies, mixing push and pull, massive (Apple) and narrowed markets (Skaters), Customization, Celebrity Endorsement and so on …
  22. 22. An optimized marketing mix, the 4Ps at its best.
  23. 23. Diversification: From shoes to all that you need for sports.
  24. 24. Good business decisions such as the acquisition of Converse and Hurley
  25. 25. Global Web Strategy, with an amazing website and all possible social network
  26. 26. Cause Related Marketing sponsoring for example marathons</li></li></ul><li>Conclusion<br />15<br />Nike, in all these years has demonstrated why it’s one of the most successful companies in the world. It is recognized as one of the most effective “marketers”, using almost every technique applicable to get to certain market.<br />Given this smart development, Nike has grown 10 times every 10 years. That is simply remarkable. Most of this success can be attributed to its main marketing strategies and campaigns.<br />I believe that the lesson from Nike to new and old companies is very simple … “Just Do It”. <br />
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