Nike Marketing Analysis


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  • Looking at the Brand, the Global Business
  • “ We respond to trends and shifts in consumer preferences by adjusting the mix of existing product offerings, developing new products, styles and categories, and influencing sports and fitness preferences through aggressive marketing.” Nike has evolved from being a part time car boot sale at track day business to being a global marketing orientated company with tangible products their most precious tool. Innovation, Creativity and Technological advancements ensure Nike remain the market leader. We invent markets philip knight 00
  • Having a strong marketing mix (4 P's) is important for an organization to thrive.  Product: offers a wide range of high quality sporting shoe, apparel and equipment products. Nike recently collaborated with Ipod to produce a Nike+ product, look at its sponsorship deal with Manchester United or its recent involvement with the charity ‘No Sweat.’ Strategic Alliances allow the pooling of skills and resources which creates a more potent force in the marketplace. Brands can share commercial wisdom, consumer profiles and creativity. Price: Nike’s pricing is designed to be very competitive to their rival top sport retailer Adidas. Nike as a brand commands a high price to match their reputable high quality goods. They position themselves in terms of quality, technology and innovation.  Promotion: Nike has used sponsorship to generate brand authenticity in these markets. They view advertising as a vehicle for articulating a brand’s sign value (Goldman & Papson 1998, p.2). It was the signing of basketball player Michael Jordan in 1984 that proved to be one of the biggest boosts to Nike's publicity and sales. Following this success they signed brand ambassadors, the best sporting stars, such as soccer players Ronaldino, Ronaldo, wayne rooney, Lebron James and Jermane O’Neal for basketball, Lance Armstrong for cycling, and Tiger Woods for Golf. Nike’s brand images, the Nike name and the trademark swoosh, make it one of the most recognizable brands in the world. Place: Nike shoes are carried by multi-brand stores and the exclusive Nike stores across the globe.
  • Nike has rather quickly progressed from initially trading innovative running products to becoming a global brand, instantly recognisable around the world. Its Marketing Strategy rests on a favorable brand image. In order to maintain and sustain this image, the company makes huge investments in advertising and brand promotion (Deng 2009, p.102) Its distinctive brand image, the swoosh, is a sign of high quality modern sports products. To the customer, it represents - Good Value & Positive Consumer Perceptions To the business, it represents – a barrier to competitors, profitability. BEST GLOBAL BRANDS 2008 by Interbrand Following a time when the swoosh became so popular the brand stopped putting their name on advertisements, Goldman & Papson warned in 1998 of overexposure, or in their view ‘overswooshification,’ where the more common the sign became the less value it had. Nike responded well using their slogan just do it, using the name again and redesigning their branding strategy using terms like NikeID Nike+ and most recently Nike5.
  • STRENGTH: Strong Subsidiaries - Hurley, Cole Haan, Converse & Umbro WEAKNESS: Overexposure – Overswooshification (Goldman & Papson 1998) OPPORTUNITY: Ultra Global - And we’ve grown enormously in China, we’ve begun inroads in India, and made great growth strides in Russia. 07 THREAT: Competitors – Adidas & Reebok, Puma, etc Awareness – Report 2008: Failure to respond to shifting trends and customer preferences in a timely and adequate manner could have an adverse effect on our sales and profitability; this is a continuing risk. To stay quick and nimble, you have to organize against specific opportunities and empower people to attack those opportunities. 07 VIDEO>>>>
  • The Olympic Games with its huge audience is perhaps the premier place for companies to showcase their brand(s). Tripodi & Sutherland 2000 in their study ‘ambush marketing – an Olympic event?’ Brand New Retail Store - This is the company's first Nike-branded and Nike-owned store in China. "It's extremely exciting to open a flagship Nike retail presence in one of the world's great cities," said Nike brand President Charlie Denson, who was at the opening. Coincidental that it happened to be the Host City for the Olympics?, "China is one of Nike's biggest growth opportunities, and one of the most dynamic retail markets in the world." Adidas paid an estimated $80 million to $100 million in cash and in services such as uniforms to win the Beijing Olympics sponsorship. "The Beijing Olympics will be an Adidas event," said the chief executive , Herbert Hainer.
  • Philip Knight Annual Report Introductory Letter 2008. As I write this we’re heading into the Beijing Olympics – a moment that NIKE has been working toward for 30 years. NIKE is the number-one sports brand in China, which is also our largest sourcing country and our biggest market outside the U.S. Ambush marketing is an attempt by corporations to mislead the public into believing that they are supporting a sports event (Payne 1998). Nike is able to create a connection in consumers minds between its brand and the Beijing Olympics.  CLAMPDOWN The UK Government is preparing a law that will prevent any business making reference to the 2012 Olympics in its promotions, unless it is an official sponsor. The 2003 World Cup in South Africa did similar, where the Government changed the trade mark and marketing laws of the country with the effect that spectators drinking Coca-Cola were ejected from the venues as Pepsi were an official sponsor. VIDEO>>>
  • Worlds Biggest Running Event to Date. Perfect Timing? The Olympics ended August 24, 2008 and the Nike Human Race was held immediately after, on the 31 st . The Nike Human Race , designed to perfectly coincide with, and profit from, the Olympics. This helped stimulate the Olympic euphoric afterglow, which Adidas paid SO MUCH for to generate, and get all eyes on Nike. Annual Report 2008: “We’ll give the world a chance to catch its breath from Beijing, but only for a minute. On August 31 we launch The Human Race, the world’s biggest single running event in history – runners around the world competing and connecting simultaneously through the power of NIKE+ technology. This is what NIKE is all about – innovating on multiple fronts and creating a bigger more vibrant marketplace. That’s what we do best and we’re doing it all over the world. Created a Category — stimulating category growth (running) to drive product sales, especially in China, where running is still a nascent sport Brought Games to the Masses (Again, Especially China) — owning the actual experience of sport Creating deeper connections — promoting the Nike+ digital platform to bring people together in one online global social community. Nike’s strategy made watching the Olympics a much less exciting prospect than actually participating in a global sporting event which raises the question, ‘what could Adidas have done with the 100 million dollars it spent to be an official sponsor?’
  • TV viewing figures in Formula 1 broke through the 600m barrier thanks to the extraordinary World Championship showdown between Felipe Massa and Lewis Hamilton. Average of 350m per race (17) The Olympic Games in Beijing were followed by a record 4.7 billion television viewers across the world tuning into 16 days of sport. F1 draws an incredible 6 billion television viewers tuning into 17 days of motorsport. China has now become the sport's biggest audience with a total of 119m watching the races during the season, whilst Russia are strong followers as well and a move could help Nike make an even greater impact in these two colossal markets. Force India F1 represents India's increased participation within Formula One. Jordan chief executive Eddie Jordan commented: 'Puma is one of the leading brands in athletic footwear, apparel and accessories, and Formula One will provide an excellent global arena for it.' "Virgin are trying to build the most respected brand in the world and an involvement with a great team will help that," Branson added. Nation gripped by the ‘Lewis Hamilton effect’ – it is not only Britain’s men who have a passion for the sport, today over half of all women (55%) have watched motorsports on the television compared to three quarters (75%) of men.
  • MARKET PENETRATION – New advertising to raise awareness of products, whilst increasing use of relationship marketing, getting to know customers better and improving relationships with them to increase loyalty LITTLE RISK >>> this leads on to product development >>> PRODUCT DEVELOPMENT – It needs to better understand its customers so that new products and new advertising can have the most impact in the market by giving consumers what they want and appealing to customers’ physical and psychological needs (Deng 2009, p.103) MODERATE RISK NEW MARKET – Key areas continue with China primarily, with Russia, India and Brazil all in mind with the potential to be ‘multi billion dollar markets’ for Nike. MARKET DEVELOPMENT – Areas of interest relevant to each area, for example the already mentioned link between formula one and China, Russia and India. With Brazil, football is the key sport and Nike have already cemented their presence with a 160 million dollar contract with the Brazilian football federation for 10 years. MODERATE RISK DIVERSIFICATION - An effective, well thought through diversification and acquisition can constitute real strategic growth by providing entry into a new market, a new opportunity to build on competitive strengths, an opportunity to create and benefit from synergy and the possibility of removing some element of competition. (Thompson 2001, p.569) HIGH RISK as product and market are unknown, high quality research is key to success.
  • The statue is in the Louvre in Paris and is called "Victoire de Samothrace", sometimes called "Winged Victory". The Greek goddess of victory is called Nike, so the statue is also known as "Nike of Samothrace", and is thought to have been commissioned to commemorate a naval victory about 300 BC. She is known as the Winged goddess of Victory. Nike is the goddess of strength, speed, and victory. Strength, Power, Respect & Immorality.
  • Nike Marketing Analysis

    1. 1. Nike – Just Doing It? Sports Marketing Panoramas
    2. 2. Introduction <ul><li>Sports Marketing – Sheer Power (Mitre & De Pablos 2009) </li></ul><ul><li>Nike the Market Leader, the Marketing Leader? </li></ul><ul><li>Marketing Mix & Activities – 4P’s, SWOT </li></ul><ul><li>Ambush Marketing </li></ul><ul><li>Future Recommendations </li></ul>Sports Sponsorship is becoming an International Communication Tool of Commerce (Wise & Miles 1997, p.183) A Vehicle for Firms to Procure a Sustainable Competitive Advantage (Amis, Pant & Slack 1997, p.80) Sports Sponsorship will become the Optimal Positioning Tool for International Marketers Seeking to Communicate Global Messages (Farrelly & Quester 1997, p.5)
    3. 3. The Business “ The Design, Development and Worldwide Marketing of High Quality Footwear, Apparel, Equipment, and Accessory Products.” Nike Inc Annual Report 2008
    4. 4. Marketing Mix <ul><li>Product – Wide Range, Strategic Alliances (Varadarajan & Cunningham 1995; Farrelly & Quester 2005) </li></ul><ul><li>Price – Premium Price, Competitive </li></ul><ul><li>Promotion – Sponsorship, Advertising (Goldman & Papson 1998) </li></ul><ul><li>Place – Global </li></ul>
    5. 5. A Global Brand <ul><li>Bought, Unique & Timeless (King 1973) </li></ul><ul><li>Favourable Brand Image ( Deng 2009, p.102) </li></ul><ul><li>‘ Overswooshification’ </li></ul><ul><li>(Goldman & Papson </li></ul><ul><li>1998) </li></ul>Competitive Advantage Nike the Business Swoosh the Logo
    6. 6. <ul><li>Strengths </li></ul><ul><li>Innovative Design & Technology </li></ul><ul><li>Market Leader </li></ul><ul><li>High Quality Products </li></ul><ul><li>Long History </li></ul><ul><li>Ambush Marketing </li></ul><ul><li>Strong Subsidiaries & Staff </li></ul><ul><li>Weaknesses </li></ul><ul><li>Overexposure </li></ul><ul><li>Opportunities </li></ul><ul><li>Motorsport </li></ul><ul><li>Nike ID in Shops </li></ul><ul><li>Ultra Global </li></ul><ul><li>Ambush Marketing </li></ul><ul><li>South Africa 2010, London 2012 </li></ul><ul><li>Threats </li></ul><ul><li>Competitors </li></ul><ul><li>Losing Awareness of Consumer Preferences </li></ul><ul><li>Ambush Marketing </li></ul>
    7. 7. Nike Olympic Games 2008 Adidas
    8. 8. Ambush Marketing <ul><li>Misleading the Public; Desired Perception of Official Sponsor (Payne 1998) </li></ul><ul><li>Nike - Olympic Gold Medal </li></ul><ul><li>Blunt & Neutralize </li></ul><ul><li>Competitors’ Investment </li></ul><ul><li>Often Surpass Official Sponsors’ Marketing Impact (Shani & Sandler 1998) </li></ul><ul><li>The Human Race </li></ul>
    9. 9. The Human Race with Nike+ <ul><li>1 Million Runners, 24 Cities Worldwide </li></ul><ul><li>Perfect Timing? </li></ul><ul><li>Created a Category </li></ul><ul><li>Brought Games to the Masses </li></ul><ul><li>Creating Deeper Connections </li></ul><ul><li>Participating rather than </li></ul><ul><li>Watching </li></ul>
    10. 10. Formula One <ul><li>600 Million Massa vs Hamilton 2008 </li></ul><ul><li>6 Billion Viewers Worldwide Per Annum </li></ul><ul><li>China, India & Russia Avid Supporters </li></ul><ul><li>Puma & Virgin </li></ul>
    11. 11. Ansoff Matrix Real Strategic Growth (Thompson 2001) Better Understand Customers (Deng 2009) Areas of Interest, Sporting Idols Advertising Campaigns, Relationship Marketing China, Russia, India & Brazil
    12. 12. Conclusion <ul><li>Market Leader the Marketing Leader </li></ul><ul><li>Top Brand, Premium Product and Price </li></ul><ul><li>Awareness of Overexposure </li></ul><ul><li>Perfect Marketing Example </li></ul><ul><li>Opportunities for Future </li></ul><ul><li>Growth </li></ul><ul><li>A True Goddess? </li></ul>
    13. 13. References <ul><li>Amis, J., Pant, N., Slack, T. (1997) Achieving a Sustainable Competitive Advantage: A Resource-Based View of Sport Sponsorship. Journal of Sport Management, 11(1):80-96 </li></ul><ul><li>Ansoff, H.I. (1979) Strategic Issue Management. Strategic Management Journal, 1(2):131-148 </li></ul><ul><li>Deng, T. (2009) “Just Done It” – Nikes New Advertising Plan Facing Global Economic Crisis. International Journal of Business and Management, 4(3):102-105) </li></ul><ul><li>Farrelly, F.J., Quester, P. (1997) In the Name of the Game. Asia-Australia Marketing Journal, 5(1):5-7 </li></ul><ul><li>Goldman, R., Papson, S. (1999) Nike Culture. London: SAGE. </li></ul><ul><li>Gummesson, E. (1999) Total relationship marketing. Rethinking marketing management: From 4Ps to 30 Rs. Oxford: Butterworth-Heinemann. </li></ul><ul><li>King, S. (1973) Developing New Brands. Oxford: Pitman </li></ul><ul><li>Mitre, M., De Pablos, P. (2009) The Power of Sports Marketing. International Journal of Sport Management and Marketing, 5(3):330-337 </li></ul><ul><li>Nike Inc, 2008. Annual Report 2008. Oregon: NIKE Inc. </li></ul><ul><li>Payne, M. (1998) Ambush Marketing: The Undeserved Advantage. Psychology and Marketing, 15(4):323-331 </li></ul><ul><li>Shani, D., Sandler, D.M. (1998) Ambush Marketing: Is Confusion to Blame for the Flickering of the Flame? Psychology & Marketing, 15(4):367-383 </li></ul><ul><li>Thompson, J.L. (2001) Strategic Management: Awareness and Change. London: International Thomson Business Press. </li></ul><ul><li>Tripodi, J.A., Sutherland, M. (2000) Ambush Marketing – ‘An Olympic Event.’ The Journal of Brand Management, 7(6):412-422 </li></ul><ul><li>Wise, S.L., Miles, M.P. (1997) Corporate Sponsorship of Events and Tax Implications: Is there an Opportunity for Global Co-ordination? International Marketing Review, 14(3):183-195 </li></ul>