Nike

Running over the Competition

Nike…A Glance…
 Founded :24 January 1964 1978

 Founder CEO: William J. "Bill" Bowerman Philip H. Knight

 Products Athletic shoes, Apparel, Sports equipment and

Accessories

Nike’s marketing
Nike markets its products under its own brand as well as
Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding and
subsidiaries including Cole Haan, Hurley
International, Umbro and Converse.
About Nike
 Nike, the largest seller of athletic
footwear and apparel over 200 countries

 Cutting edge of technology.

 New technically advanced shoe models

from time to time

 Innovative advertisements, celebrity

endorsements and event sponsorships.
CORE COMPETITORS
Abstract
 Faced a crisis in the late 1990s, decided to strengthen its
management, overhaul its information systems, and
streamline supply chain management.

 However, the company still faces many challenges in the

wake of changing fashion trends, the falling sale of its
higher- priced shoes, and increasing competition.

 The case discusses the evolution of Nike's marketing strategy

and the company's various initiatives to strengthen its
competitive position in a changing environment.
Case in brief
 “JUST DO IT”

 Goal: To turn in a peak performance, one that leaves no

doubt as to who the best is.

 Simple Vision: “ SERVE THE ATHLETE”

 German Companies Dominated Athletic shoe industry.

 Nike become dominant player in sport apparels.

 Strong in quality.

 Nike went Overseas

 UK – BasketBall & Tennis - Rugby and Soocer.

 Nike signed 5 teams in US.

 Spent millions on ads and signed leading stars

 Signed match winning teams.

 Faced difficulties in European market.

 Same as with Reebok and VANS in US.

 Signed Contract with 30 soccer clubs thruout Globe.

 Competition is not Nike only problem. Some of its actions

haven’t left fans cheering either.

 “Nike is going in and almost encouraging teams at break

contracts”.

 Free Spending

 Long way to go…

Nike’s Mission and Vision
 Mission:
“ To bring inspiration and innovation to every
athlete in the world”

 Vision:
“High Quality performance oriented &
technologically athlete shoes and accessories
targeting all age”.
how they achieved it?
 Segments & chooses the best market.

 Efficiently R&D and Unique way of marketing

 Develop strong position in market from early

1980’s.

 For athletes by “athletes”

2. BCG Analysis on NIKE Portfolio
 Footwear - Star
 Nike specializes in athletic footwear, particularly in
running, basketball, and soccer, although Nike also
sells sport-inspired casual footwear like its Air Force
Ones footwear line.
 Apparel – Cash Cow
 Nike sells sports apparel such as running shorts, t-
shirts, and licensed apparel (with logos of college and
professional sports teams).
 Equipment – Question Mark
 Nike also sells sports equipment such as balls,
protective equipment, and golf clubs.
3. What are nike market?
 Nike's target market is active people who
enjoy high-quality sporting goods, especially
footwear.
3. How is nike positioned in this
market?
3. How does it reach this market?
 At the Atlanta Olympics, Reebok went to the expense of
sponsoring the games. Nike did not. However Nike
sponsored the top athletes and gained valuable
coverage.
 Creating strategic alliances with top match winning
teams.
 Soccer is the main sport, So they concentrated on it.
 Multiyear contract with major league soccer team.
 Billboard around stadium
 Spent million on global advertising campaign and
signed leading national stars.
 Produced exhibition matches and community events.
4. What’s Nike Proposed positioning in
the global soccer market?
 To become Dominant in Soccer market.

 By selling sports equipments in Overseas other than US market.

 1994 - $45 million.

 But a team of executives persuaded Knight that soccer was the

company's future.

 Today, soccer sales are nearly $1 billion, or 25% of the global

market.

 Soccer shoe market in Europe, 35%, exceeded Adidas, at 31%.

4. Describe the company’s global
soccer marketing mix?
 Product

◦ Offers wide range of shoe, apparel

and athletic bags and accessory
items

◦ Sports Specialties, through Nike

Team Sports, Inc.

◦ Sell small amount of plastic

products to other manufacturers
through Nike IHM, Inc.
 Price
◦ Nike’s pricing is designed to be competitive to the
other fashion shoe retailers.

◦ Pricing strategy

◦ Nike has a higher level of consumers who have

associated themselves with the brand, and will pay
the higher price point to own something with the
Nike Swoosh on it.
 Place

◦ Nike sells its product to about 20,000 retail

accounts in the U.S. and in almost 200 countries

◦ Nike sells its products through independent

distributors, licensees and subsidiaries.
 Promotion
◦ Nike has a number of famous athletes that serve as
brand ambassadors such as the Brazilian Soccer
Team (especially Ronaldino, Renaldo, and Roberto
Carlos).

◦ Nike’s quality products, loyal customer base and its

great marketing techniques all contribute to make
the shoe empire a huge success.
Marketing recommendations for
Global soocer dominance
 Brazilian Soccer Team (especially Ronaldino,
Renaldo, and Roberto Carlos)
 Lebron James and Jermane O’Neal for

basketball,
 Lance Armstrong for cycling, and
 Tiger Woods for Golf.
Athlete Endorsements
How serious is the threats like VANS?
 Sports Shoes Market has become
Competitive.

 Nike failed to retain Sustainable Competitive

advantage.

 Retail Sector has became more competitive.

Is Nike likely to become Global
Soccer Dominance?
 No doubt…
Conclusion
 Despite criticisms Nike – best recognized
brand.

 “Goddess of Marketing”

 Inspiration and Aspiration

Nike has shown that they are a true force to be
reckoned with.
 Questions???

“If you have a body, you are an

athlete. As long as there are
athletes, there will be Nike”