Nike is an American multinational company that manufactures footwear and athletic apparel. It is known for its commitment to marketing, which has made it one of the largest companies in the world with $19 billion in annual revenues in 2010. Nike's strategy has been to focus on high-profile athlete endorsements to promote the brand. In 1985, Nike signed Michael Jordan, its first elite athlete endorsement, which launched an enduring marketing campaign. Over 25 years, Nike grew revenues from $0.946 million to $19 billion through continued use of star athletes in endorsements.

1. Paul Vella
Marketing 6000
Dr. Thomas Kohler
November 4, 2010
Nike
Nike, Inc. is an American multinational manufacturing company. Their core
products include footwear and athletic apparel. Nike is well know for its
commitment to marketing, which has propelled the company to be one of largest
companies in the world with over $19 billion in annual revenues reported in 2010.
Nike’s brand portfolio includes Nike, Cole Haan, Converse, Hurley, Nike Golf and
Umbro. However, 75% of the growth is expected to come from the Nike brand
(Nike’s 2010 Annual Financial Statement).
Nike’s market strategy has always been to focused on high profile athlete
endorsements as means to promote the Nike brand. Phil Knight, co-founder and
Chairman of the Board of Nike said that “when we help athletes reach their
potential, that process helps NIKE and consumers reach theirs” (Nike’s 2007
Annual Financial Statement).
Co-founder Bill Bowerman shared the similar vision. He viewed the endless
possibilities for human potential in sports. This set the tone and direction for a
young company. Nike’s goal is to carry Mr. Bowerman’s legacy of innovative
thinking, whether to develop products that help athletes of every level of ability to
reach their potential or to create business opportunities that set Nike apart from
the competition and provide value for our shareholders.
Typically, their ads would not focus on the product itself, but rather the athlete
themselves and their individual characteristics of grit, determination, spirit,
courage and greatness. Few companies in the world have been able to capture
the level of brand awareness and distinctiveness of Nike and its Swoosh logo.
In 1985, the company signed Michael Jordan to endorse a version of its Air
Shoe, otherwise know as “Air Jordans”. This was first elite athlete that Nike
aligned itself with. It also marked the beginning of an enduring market campaign
that would set Nike apart from its competitors. Over the years, superstar athletes
such as Michael Jordan, Bo Jackson, Tiger Woods, Lebron James and Kobe
Bryant were also signed by Nike with mega contracts.
Despite, the rising athlete endorsement cost and turbulent economic conditions,
Nike remains committed to this program. Phil Knight said that “athletes at their
best, represent some of our most noble characteristics- passion, commitment,
competitive fire, being part of team, the ability to overcome adversity”. (2007 Nike
Annual Statement).

2. Nike most recent campaign features Basketball superstar LeBron James called
“The Rise”. According to David Grasso, Vice President of Global Brand
Marketing, the campaign celebrating Lebron’s courage to forge his own journey
even when other may have disagreed with his decision. “It’s this Just Do It spirit
that defines LeBron and Nike as we strive to inspire all young athletes”. (Rovell,
2010)
The success of the use of high profile athletes marketing approach has been
immeasurable as Nike financials speak for themselves during this 25 year span.
In 1985, Nike reported annual revenues of $0.946 million and net income of
$0.010 million. The growth and profitability is staggering, as Nike exponentially
expanded revenues to over $19.0 billion, resulting in net earnings of $1.9 billion
in fye2010 (Nike Annual Financial Statement).
My analysis of Nike’s Marketing program is it was a highly successfully. Over the
past 25 years management has built the Nike Brand to be one of the strongest in
the world. Using the Brand Asset Valuator 5 Pillars analysis, Nike scores high in
every category.
• Differentiation, Nike product line is well established (swoosh design
trademarked in > 150 countries & easily distinguishes product from
competitors, even without NIKE name)
• Energy, Nike sales have expanded exponentially (<$1MM in 1985 to $19B
in 2010)
• Relevance, significant global coverage (over 170 countries worldwide),
• Esteem, Nike’s significant year-over-year earnings growth is a reflection of
how well the brand is regarded & respected
• Knowledge, Nike is the largest seller of athletic footwear & athletic apparel
in the world, which demonstrates worldwide appeal & intimacy. Nike Brand
Asset Valuator (BAV) Results. Nike demonstrates Energized Brand
Strength and brand stature. BAV reflects Nike as a Market Leader (Kotler
& Keller, 2010)
In my opinion Nike’s continued use of high profile athletes to endorse its product
has directly contributed to creating significant brand equity and set it apart from
rivals such as Adias and Reebok to become a market leader.
References:
Rovell, D (2010, October 25) LeBron’s Nike Commercial Is Amazing, But Will It
Help Sell Shoes. CNBC.Com
Nike Inc. 10-K Annual report pursuant to section 13 and 15(d)
Filed on 7/20/2010
Filed Period 5/31/2010
Nike Inc. 10-K Annual report pursuant to section 13 and 15(d)

3. Filed on 7/20/2007
Filed Period 5/31/07
Kolter, Philip, & Keller, Kevin Lane (2010), Marketing Management, 13th edition,
Prentice Hall