2. Brief History Phil 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 Victory 1972 Olympics, convinced some of the runners to wear their shoes By 1979 had obtained 50% of the running shoe market Went public in 1980 1992, opened the first NIKETOWN 1997, launched Jordan-Brand footwear 2000, expanded into the electronic market such as heart monitors, two-way radios, and MP3 players.
3. Brand Nike 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 fullest Nike wants to be seen as a symbol of strength, dedication, hardwork, sweat, and perseverance that will create the desire to succeed. Nike wants to sell a feeling and an emotion
14. Strengths and Weaknesses Strengths Very competitive Sponsorship of top athletes Valuable coverage No factories If prices rise and can be made cheaper somewhere else, will move the production. Weaknesses Very diverse range of sports products but is very dependent on footwear Could be vulnerable if for any reason market share wears away
17. Nike’s Competitors Adidas New Balance Converse (prior to being bought by Nike in 2003) PUMA Sketches U.S.A Timberland Under Armour K-Swiss
18. ADIDAS Known for their athletic shoes #2 maker of sporting goods in their current market Recently won the sponsorship for the 2008 Olympics Bought Reebok in 2006 Sponsor Kobe Bryant, David Beckham & Anna Kournikova “Impossible is Nothing”
19. Under Armour Top of the market for performance apparel Just starting to come into athletic footwear Introduced football cleats in 2006 Introduced baseball/softball cleats in 2007 Primary consumers are men but are expanding towards women and children Offers clothing made from new technology to keep athletes warm/cool
20. Nike Sales 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 products Investing 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
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22. Nike’s High Quality Products 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 shoe
24. Demographic No defined demographic Anywhere from white male 17-50 athlete to a female 65 and older who needs shoes to walk in for simple exercise Nike avoids targeting specific markets, preferring to broaden its appeal across boundaries of age and social status Covers every sport, age, demographic and budget of every athlete
27. Nike Basketball Most successful division of Nike Air Jordan broke Nike into the basketball world Targets 16 year old males & females Viral video campaign MJ Commercial
28. PromotionalStrategy High quality Stylish sporting apparel Innovative Risk taking High profile sponsorships “Word-of-Foot” to sponsorships and TV Ads. Nikes has won many awards for their advertisements
29. PromotionalStrategy Want to encourage people to be active to promote a reason to purchase their products “You either ran today or you didn’t.” Meant to inspire. Produce different ads depending on where the ad will be seen.
30. Marketing Mix Uses three of the four main factors in the marketing mix: Advertising Sales Promotion Public Relations