Nike is an American multinational company that manufactures footwear and apparel. It has a unwavering commitment to advertising and uses high-profile athletic endorsements as a key marketing initiative. Nike's brand portfolio includes the Nike, Cole Haan, Converse, Hurley, Nike Golf, and Umbro brands. Despite rising endorsement costs, Nike remains committed to using famous athletes in its advertising campaigns. This marketing strategy has translated to unprecedented revenue growth for Nike over the past decades.

1. Nike
Paul Vella
Assignment 2

2. Nike Company Profile
• American multinational manufacturing Co.
• Core products include footwear & apparel
• Unwavering commitment to advertising
• Key Marketing Initiative
– Use of high profile athletic endorsements
• Nike’s brand portfolio
– Nike, Cole Haan, Converse, Hurley, Nike Golf and
Umbro.
– 75% of the growth is expected from the Nike brand.

3. Marketing Campaign
• Advertisements
– Focus on individuals, not products
– Ads focus on grit, determination, human spirit,
courage & greatness
• Co-founders’ vision
– Bill Bowerman’s observation many years ago “endless possibility
of human potential in sports”
– Phil Knight “when we help athletes reach their potential, that
process helps Nike & consumers reach their”
– Set the tone for Nike and its core marketing initiative

4. High Profile Athletes
• Signed Michael Jordan in 1985
– First elite athlete signed
– Jordan endorsed a version of Nike’s Air Shoe,
otherwise know as “Air Jordans”.
– From 1985 Nike continued to sign top athletes
• Other Key Signings
– Bo Jackson, Tiger Woods, Kobe Bryant,
Lebron James

5. LeBron “The Rise”
• Nike continues to maintain Bowerman’s legacy
• Nike most recent campaign featuring Basketball
superstar LeBron James called “The Rise”.
• According to David Grasso, Vice President of Global
Brand Marketing, the campaign celebrates 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.

6. Core Marketing Initiative
• Despite, the rising athlete endorsement
cost and turbulent economic conditions,
Nike remains committed to use of high
profile athletes
• 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”

7. Financial Success
• Marketing Initiative Translated to
Unprecedented Revenue Growth
– Revenues expanded to over $19B in fye2010
as compared to $0.946MM in fye1985
(signing of Jordan)
– Net income increased from $0.01MM in
fye1985 to $1.9B in fye2010

8. Brand Equity Model
• Nike strong brand equity position
• Brand Asset Valuator (5 Pillars)
– 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)

9. Brand Equity Model (cont)
– Relevance, significant global coverage (over
170 countries worldwide)
– Esteem, Nike’s significant yoy earning
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

10. Brand Asset Valuator
• Nike Brand Asset Valuator (BAV) Results
– Nike demonstrates Energized Brand Strength
– Nike demonstrates Brand Stature
– BAV reflects Nike as a Market Leader

11. Conclusion
• Based on BAV Nike is a market leader
• Nike continued use of high profile athletes
to endorse its product has directly
contributed to their financial success