Nike athletes
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Nike athletes Nike athletes Presentation Transcript

  • Overview of Presentation • • • • • • • • International Sport Marketing Issues History of Nike Athlete Representation/Endorsement Deals Event Sponsorship Nike as a company in the global age Examples of Nike Advertisements Why is this important to sport managers? Concluding Remarks
  • International Sport Marketing • Marketing has shifted in the last 20 years from country-specific to more international. • Sport marketing follows the same trends. • World is becoming smaller—more competition, need to find new markets for products. • Nike is an excellent example of shifting priorities from the domestic market to a more global approach.
  • History of Nike
  • Overview • Founded by Bill Bowerman and Phil Knight • Been in the industry for over 30 years • World’s most competitive sports and fitness company • Nike employees over 23,000 people
  • The Nike “Swoosh” • Created by graphic design student at Portland State University in 1971 • Received $35 for the design and unknown amount of stock in Nike • Now one of most famous logos and trademarks in the world
  • Nike International • In 1972, Canada becomes Nike’s first foreign market • In 1974, Nike begins operating in Australia • In 1977, Nike sets up manufacturing factories in Taiwan and Korea – Much controversy over fair worker’s pay – Sweatshop controversy continues today
  • Nike International • 1978-Nike sells shoes in South America and distribution outlets are set up in Europe • Revenues exceed $71 million dollars
  • Nike International • Nike’s World Headquarters are in Beaverton Oregon. • Opened in 1979
  • Nike International • 1980- Nike begins negotiations with China to set up production of shoes in this country • Nike becomes the number one selling shoe in Canada • 1981-Nike International Ltd. Is formed to service a growing market of up to 40 countries
  • Nike International • 1984- Global market reaches $158 million • 1985- Michael Jordan is signed and becomes the biggest endorser in Nike history • 1987- Nike is introduced in the USSR • 1991- International Revenue tops $860 million
  • Nike International • 1994- A new Eastern European region based in Vienna is formed at the $138 million Laakdal Customer Service Center – Shane Warne, Australia's preeminent cricket superstar, signs with Nike – NIKE assumes distribution rights in Japan in Korea – Nike signs 10 members of Brazil's soccer team along with Italy's, China's and U.S.'s soccer team. – In Latin America, Chile and Argentina join the NIKEowned family
  • Nike Today • Internationally recognized company with annual revenue in 2004 of almost $13.7 billion dollars. • Owns subsidiaries such as Starter, Nike Golf, Converse, and others. • Has some sort of presence in almost every country in the world. • Endorsement deals for professional athletes reached over $500 million in 2004, as well as spending on advertising reaching $213 million in 2004.
  • Athlete Endorsements
  • Top Ten Wealthiest Athletes • Tiger Woods • David Beckham • Shaquille O'Neal • Michael Vick • Lance Armstrong • Derek Jeter • Michael Jordan • Alex Rodriguez • LeBron James • Kobe Bryant
  • Steve Prefontaine • First major track star to wear Nike • Blue Ribbon Tiger Shoes • At the time held several records, including the 2,000 and 10,000 meter dash • Known simply as “Pre” • Died in a car crash in 1975
  • Michael Jordan • Signed with Nike in 1984 • Has own brand of Nike gear, The Jordan Brand • Number 3 pick in NBA Draft • One of the most well known athletes in the world
  • LeBron James • Signed with Nike Prior to being drafted into the NBA • Seven year deal worth $90 million • Jordan’s First Contract in 1984 2.5 Million for 5 years • Won 2003-04 NBA Rookie of the Year
  • Mia Hamm • Regarded as one of the best Women’s Soccer players to ever have lived • Member of U.S. National Team, played in Olympics from 1996-2004, founding member of WUSA • Mia Hamm Foundation and other charitable works, including excellent role model for female athletes.
  • lanceARMSTRONG • liveSTRONG campaign raised millions • Goal was $5 million • Over $9.4 million in grants • 50 Million wristbands sold as of May 2005 • Eight time Tour de France champion
  • Tiger Woods • Signed with Nike in 1996, giving up his amateur status • Signed his first deal for a 5 years at $40 million. • New Contract is $90 million • Considered the best male athlete in the world
  • Serena Williams • Signed a lifetime deal in 2003 • Worth just over $60 Million • Was one of the first women signed to Nike Goddess (now Nike Women) • Consistently one of the top Women’s tennis players in the world
  • Freddy Adu • Signed a $1.5 Million contract in 2003 • Was age 13 when he first signed • Plays for DC United of Major League Soccer. • Considered one of the best young players in the world.
  • Michael Vick • Signed with Nike in 2004 • Endorses NikePro Sphere • $62 Million over 6 years • Quarterback for the Atlanta Falcons of the NFL, top QB.
  • Maria Sharapova • Signed a $55 Million deal • Contract is for 5 years and started in 2003, with a 3 year extension • Highest contract for any women athlete • 2004 Wimbledon champion
  • Kobe Bryant • Signed contract with Nike in 2003 for 5 years and $40 Million • Nike signed him even though he was going through a trial for rape • However he has not been in a television advertisement since, for any of his corporate deals • Nike has stood behind Kobe, as they do all their athletes
  • Alex Rodriguez & Derek Jeter • Derek Jeter signed with Nike’s Jordan Brand • 10 Year $100 million deal • A-Rod signed to Nike • Has been with Nike for over 14 years • Gets about $1 million a year
  • Yang Yang • Chinese Olympic Speedskater • Was China’s first Winter Olympic Games champion in 2002 • Earned gold in the 500m event, as well as the 1000m. Also finished 4th in the 1500m by a tenth of a second
  • Fernando Torres • Member of Spanish National Football team • One of the most sought after European football players of his generation. • Currently plays for At. Madrid in addition to for Spain
  • Yelena Slesarenko • Russian Women’s High Jumper • Won Gold at the 2004 Athens Olympics • Broke former Olympic Record with a jump of 2.06m • Also is current World Indoor Champion
  • Robinho • Dubbed the successor to Pele, the great Brazilian soccer player • Hails from Brazil, plays for Real Madrid, alongside David Beckham • Only 20 years old and his signing attracted international attention from many European football clubs
  • Wayne Rooney • Football player for Manchester United FC • Member of English National Team, plays forward position • Nicknamed “Roonaldo” because of his playmaking ability
  • Hicham El Guerrouj • Olympic distance runner—Morocco • Athens 2004 Olympic Games: Won Gold in 5000m and 1500m races • Multi-time world champion in distance events, great humanitarian
  • Other Internationally Endorsed Athletes • Asafa Powell-Jamaican Runner, 2004 Olympic Games • Shiqiang Guo—Member, Chinese National Basketball team • Thomas Voeckler—Cyclist • Sanya Richards—Track and Field, University of Texas • Diego de Cunha—Football Player--Brazil • Ronaldo—Football Player—Manchester United
  • Sponsorship/League Endorsements
  • Sponsorship in the United States • • • Professional Sport Colleges and Universities Youth and Community Programs
  • Major Professional Sport • Major League Baseball – Majestic • National Football League – adidas-Solomon/ Reebok • National Basketball Association – adidas-Solomon/ Reebok • National Hockey League – adidas-Solomon/ Reebok
  • Colleges and Universities
  • Youth & Community • Nike Foundation • Community Giving
  • International Sponsorship • Events and Leagues • Soccer • Manchester United
  • Events & Leagues • • • • International Inline Skating Association Marathon Tour Ironman Competitions Canadian Hockey Association Nike Tour (golf)
  • Soccer • • • • Nike ‘arrived’ on the soccer by sponsoring the 1994 Word Cup Continue to look up to adidas, but gaining ground Sponsors numerous national teams Sponsors Manchester United
  • Manchester United • • • Widely regarded as the “world’s most famous football club” Nike entered a $553 million, 13-year sponsorship deal in 2000 United’s fortunes have waned since then
  • Other Causes • AIDS.com • Livestrong
  • Ambush Tactics • • 2002 Boston Marathon Olympics – – 1992 1996
  • Nike as a Sport Marketing Case Study
  • Nike in the Overseas Marketplace • Appeal of Nike brand overseas – Running – Football (soccer) – Other brands that Nike owns – Advertising – Marketing Campaigns – Athlete Representation—using local stars to appeal to international customers
  • Nike as an Global Powerhouse • Over half of business is in international markets. • Growing number of subsidiaries (Bauer Hockey, Starter, etc.) • Footwear market-share leader in Europe • Success in international events (Olympics, World Cup, Tour De France) • Product placement
  • Global Competition • Adidas-Solomon/Reebok – Merger in 2005 to attack Nike’s position in the domestic and international marketplace • • • • • FILA K-Swiss Puma New Balance Other smaller brands in Europe and around the world
  • Evolution of Product Lines • Footwear • Clothing/Merchandise • Subsidiary product lines – Cole Haan – Starter – Nike Golf – Converse – Bauer NIKE Hockey – Hurley Surfing
  • Why is Nike so Successful? • • • • • • • Superior Advertising Brand Recognition Quality Products Subsidiary Development Marketing Strategy Employees of Company (commitment) Business strategy (recognizing opportunities)
  • Nike Global Commercials • TV advertisement from Australia – http://www.nike.com.au/nikefree/home.html • TV advertisement from Europe – http://www.nike.com/freeeurope/?l=en_gb&cid=r20 • TV advertisement from Canada – http://www.nike.com/canada/nikehockey/main_en.
  • Global Commercials, Cont. • Football (soccer) is the most popular sport in the world. Needless to say, Nike excels in these commercials that appeal to the world market. • • • • • Ole Brazil Airport Nutmegs Are You Ready Nike Streetball
  • Global Commercials, Cont. • Football commercials appeal to the largest population of sporting individuals. Other commercials like basketball and baseball commercials are more for American tastes. • A wide and diverse taste of commercials appeals to the global image that Nike takes on to succeed. • Image is everything. • Marketing campaigns are effective.
  • Implications for Sport Managers • Internationally recognized—logo and slogans • Competition with growing international market • Increasing advertising costs (product differentiation) • Global sport is wave of future • Nike as a model for success • Will impact every part of sport management, not just marketing and sponsorship.
  • • Something to think about: • Even with the merger of Adidas and Reebok, Nike still controls a large market share of products around the world • …America has 290 million people…the world has 6 billion…lots of room for expansion and to break into new markets….
  • An Analysis of Nike's Influence over Sport in the Global Marketplace • Nike will continue to grow and expand their influence in all aspects of sport. • Endorsement deals with high profile teams and athletes will continue. • Competition from other companies like AdidasReebok and others will grow. • Nike has advanced global sport to a new level and has made a commitment to making sure that they remain on top of the footwear game for years to come.
  • Questions??? “If you have a body, you are an athlete. As long as there are athletes, there will be Nike”