1st Paragraph: Nike is a well-known atlethic footwear and clothing with “just do it” for their motto.

2nd Paragraph: Nike made several mistake for late marketing its product, take wrong decision on
aerobics and casual market, and overcapacity in management. Thoose mistake made Nike taking a
intense self-examination.

3rd Paragraph: Phil knight, the current CEO of Nike were a runner in University of Oregon, in 1962.
His coach, Bill Bowerman estabilished a Blue Ribbon Company which its distributing low-cost
footwear for japanese company. Later the company start producing sportwear.

4th Paragraph: the Blue ribbon Company changed its company name to Nike in 1978. As there’s
several atheletes won a sport games while wearing Nike shoes, the company profit keep doubling
every year.

5th paragraph: in the mid-1980th, Nike footwear sales going down. So the company changed its
product oriented value to consumer oriented. Later Nike reach 3 billion usd sales for fiscal 1991.

6th Paragraph: HBR conduct an interview with nike’s CEO, Phil knight. They asked is Nike a
technology company or sportwear company. A question asked because the company made a change
using techologycal innovation.

7th Paragraph: Phil knight said that once Nike were a production-oriented company. Later he realize
that in the end, the company working for market its product. So he changed Nike to a consumer-
oriented company which the consumer leads the innovation of Nike’s product. Also, he made it’s
important to look at the company’s marketing sector.

8th Paragraph: What make Phil Knight a product-oriented person before is, in his early day at
footwear industry, it’s very simple to enter the industry. So he used innovation for his advantage.
For the example is Bill Bowerman’s waffle outsole. The waffle trainer become best-selling shoes in
United States later.

9th paragraph: While Nike’s competitor like puma and adidas are targeting high wages countries in
europe, Nike’s targeting its market to lower wages asian. So they keep their production cost low.

10th Paragraph: Nike tried to market its product through making their shoes wears by the atheletes.

11th Paragraph: After Nike hit 1 billion usd sales, its went down. One of the cause is their acrobatic
shoes product. The shoes were better in quality than Reebok but less atractive. Nike also decide to
against garment leather just like Reebok. Because it’s less durable. But later after Nike invented a
durable leather garment, Reebok already made a big sales from that.
12th Paragraph: Nike’s problem also came from mismanagement, which they not adjust their
company as a big corporation.

13th paragraph: Nike’s mistake also came from their attempt to market a casual shoes. They thought
it’s a good idea because the consumer wear their sport footwear for every activities, even outside of
sport. But later their casual shoes product is bad looking and the consumer didn’t want to buy it.

14th Paragraph: after being profitable in the 1970th, Nike starts to going down in the mid-1980. In
1985 their sales dropped by 200 million usd. Their loss made them fired 280 of their staff. All thoose
problem made Them going on a hard time that year.

15Th Paragraph: Phil Knight thought that if Nike starts to looking for other sector, they will going up
from adversity. So Nike started to more caring on the other sector beside production, such as
marketing, management, etc.

16Th Paragraph: Phil Knight left his job as a corporate architect five years ago. He doing it because he
want to design Nike atlethic shoes. From his job swich, he learned that shoes designing not only
about performance, but also looking at the artistic design. So people can feel the images of Nike
shoes.

17Th Paragraph: Inspiration for shoes design can come from a lot of things. but Nike often involve an
athlete for their shoes designing. They incorporating the athlete personality and taste on their
shoes.

18th paragraph: while Phil Knight designing the first cross-training for Bo Jackson, he see Bo in his
sport play. Phil see Bo as a powerful cartoon character, Mighty Mouse. So Phil design a Shoes called
Air Trainer based on his vision about Bo jackson and Mighty Mouse. He make the shoes bright
colored, exaggerated its feature, and inflated-looking rubber top.

19TH Paragraph: When Phil working with Michael Jordan in designing shoes, especially Air Jordan 7,
Jordan gives some design idea to Phil. He wanted the shoes looks youthful and aggressive.

20th Paragraph: Phil also had the inspiration from pop afro music series advertising poster he saw at
national music radio. When he showed the poster to jordan, he said that it have the right emotion.

21st Paragraph: At certain moment, Phil doesn’t have a athlete to studied at. For the example while
he designing his first outdoor cross-training shoes. He takes a native-american shoes called moccasin
as his inspiration.
22nd Paragraph: when he found a an old print descripting the native-american enviroment, he made
a design based it. The result is a shoes with felxible soles, lightweight and thin leather, and an earthy
color.

24th Paragraph: at first, Nike’s employees were an runner. So they made their shoes based on self-
experiences. After Nike starts to design shoes for other sport, they studied the top player what their
needs and design taste.

26th Paragraph: At the beginning, Nike only prioriting their product for top athletes, even if their
main consumer is non-athlete. But one of their product were failed, so they start to more caring
about the avarage consumer.

27Th Paragraph: In attempt to reach avarage consumer, Nike attends amateur sport event and gym
to understand the consumer’s needs.

28th Paragraph: Nike incorporating taste from avarage consumer and the top athletes in their
product.

29TH Paragraph: Nike also doing some market research to understand their consumer’s needs.

30th paragraph: Based on Nike’s casual footwear failure, Phil learned that focus is required for
company’s success.

31st Paragraph: At the end, Phil wanted Nike to be the best sport and fitness company.

32nd Paragraph: there’s a limit to expand the brand without losing focus. If they get through the
limit, consumer will get confused.

33rd Paragraph: it’s important to keep the company to focus on its field.

34th Paragraph: Nike have grow so much because they segmenting their product into sub-brands to
represent each category.

35th Paragraph: Phil founds the strategy to segmenting nike’s product through brain-storming and
sees the success of Air Jordan basketball shoes.

36th Paragraph: Nike get success from Combining innovative in artistic design and performance to
create Air Jordan. And Michael Jordan performance add a value to Air Jordan.

37th Paragraph: Nike looking for junior tennis player with a good chance to be the best to recruit for
an endorsment contract in an attempt to expand their market to tennis footwear.

38th Paragraph: Nike rate the athlete character before making the contract.
39th Paragraph: A lot of athlete pass the first two requirement to getting the contract, but only some
successful to get through all requirement.

40th Paragraph: Nike get success from John McEnroe career in tennis. Because John were the part of
Nike family.

41st Paragraph: in the mid-1980, McEnroe change his image from angry young man to elder
stateman. McEnroe ask Nike helps for his image change. At the same moment, Andre Agassi
emergenced. Nike decide Andre were perfect for Nike’s athlete.

42nd Paragraph: In attempt to change McEnroe image, Nike segemented its tennis category into rock
n roll for younger consumer and supreme court for more skilled elder.

43nd Paragraph: Nike not only use athlete to design and market its product, but also for sending
positive example to the sport.

44th paragraph: John McEroe helped to creating the tournament Tough Player Parent Workshop for
junior player. But agent and parents preasures to make them proffesional at the early for money. It
make the player playing bad and giving tennis bad image. So John McEnroe talk to everyone about
the right way.

45th Paragraph: Nike has making lot categories for their brand. And they sliced up some categories.

46th Paragraph: Air Jordan was Popular for two years, until its fell down. It was caused by defferent
style in basketball. So Nike sliced the basketball category.

47th Paragraph: Nike made two new segments in basketball. Force which is stable,aggressive, and
muscular image were represented by David Robbison, and Flight which is lighweight and flexible
were represented by Scottie Poppin

48th Paragraph: while everyone still see Nike basketball segment as Jordan, nike already made
several segment in the category to represent every aspect in basketball.

49th Paragraph: Phil knight and David kennedy were told by Nike’s employees how to advertise,
while Phil and David doesn’t like to doing it. They were obsessed in authencity.

50th paragraph: Phil and david vision in advertising has lead Nike to honest contact to consumer.

51st paragraph: Their approach in advertising is works well at the time, which they used trust and
familiarity to their consumer.

52nd Paragraph: Brand building in bussiness-world crates the personality to make people bond.
53rd Paragraph: advertising creates a relationship between consumer and the company.

54th Paragraph: To Create a relationship and brand image, it’s required to create the value of the
company.

55th Paragraph: Paragraph 57: Nike's job is to produce stuff that doesn’t upset people, and in the end
being provocative is more important than fun.

56th Paragraph: Awareness of ethical issues has also a factor in the positive responses to Nike
advertising. A lot of large advertising firms ignore the ethical components of advertising and relied
on manipulation and cunning.

57th Paragraph: Nike product categories has made it easier for company to be honest and open
because they sell something that will help people.

60th paragraph: Tennis is another good example. Nike has a very focused category that has been
built around

61st paragraph: Nike have another category, Tennis, which was promoted by John McEnroe and
Andre Agassi. Nike is becoming the best-selling tennis category, but Nike was ignoring 75% of tennis
players out there who didn't want flashy clothes so that Nike created a second category called the
Supreme Court.

62nd Paragraph: Actually, Nike was expanded their brand by going into fitness. The core consumers
are individuals, and Nike found that men do fitness activities because they want to be stronger, but
women do it as sort of a self-actualization thing.

63rd Paragraph: Pill is confident that the brand can encompass both the performance-oriented
message and the fitness message over the next year and a half, but Nike will have to be careful.

64th Paragraph: The lessons Nike has learned about brand identity and focus can take Nike in many
directions, such as in 1988, when Nike acquired Cole-Haan, a shoe and accessory maker.

65th Paragraph: Actually, Nike think Cole-Haan as half a brand because only sophisticated consumers
know what it is. Nike bought a brand knowing its potential, and it increased our company marketing
volume.

66th Paragraph: In fact, when people talk about Nike, it's almost any TV commercial they want to talk
about. But Nike became a billion dollar company without a television.
67th paragraph: Nike’s first TV campaign was for Visible Air. After a bad experience, they wanted
their message about our new shoe line to be a huge success.

68th Paragraph: The launch of Visible Air was a critical moment for several reasons.

69th paragraph: Nike launched a product with the Revolution campaign, using The Beatles song
because they wanted to communicate the revolution in the way American’s felt about fitness,
exercise and fitness and it was a huge hit.

70th paragraph: Not really, because Nike have always believed that to succeed with consumers, they
have to wake them up.

71st paragraph: From the beginning, Nike has tried to create an emotional bond with consumers.

72nd Paragraph: Innovation and good marketing is the key to success in wakes up the consumer.

73rd Paragraph: Nike has a hard time stopping innovation in the product area, but they are trying to
be innovative in business and in advertising.

74th Paragraph Trying to wake people up can be risky, the only way to know if an ad works is to run it
and learn from the response.

75th Paragraph: At the time of the Hare Jordan ad that aired during the 1992 Super Bowl, Nike paired
Michael Jordan with a cartoon character and it looked ridiculous but got thousands of positive
responses.

76th Paragraph: Humor is always a risky business, for example, in some of Nike advertisement in
1987, they thought it was very funny, but a lot of women found it insulting and we learned from it.

77th Paragraph: In Nike recent Dialogue campaign, which is a print campaign containing text and
images trying to empathize and inspire. And it got a lot of compliments.

78th Paragraph: In the Campaign to launch the Air 180 running shoes, the Advertising Agency worked
with seven directors and tried to translate words into all the different languages, but in the end, Nike
didn't use words, they just mixed pictures.