Nike

Nike history

Nike, originally known as Blue Ribbon Sports was started by Bill Bowerman &Phil Knight in 1964.Its logo the swoosh was designed by Carolyn Davidson.Nike is named after Greek Goddess of Victory because Nike is ‘all about winning’

Why is Nike so successful ???

Success of Nike can be attributed to three factors

Category expansion Geographic expansion Exceptional in Updating four P’s

Category expansion : wide product range

Geographic expansion

Nike in USA

Nike hit the ground running in USA through basketball and signed contract with Michael Jordan.Nike revenues surpass $1 billion for the first time with the introduction of Air Jordan shoes

Nike in Europe Nike’s big break : Brazil won soccer in 1994changed Nike’s image in Europe .This made overseas revenues surpass US revenues for the first time.

Nike in Asia Nike’s big break in Asia : 2008 summer Olympics in Beijing.Nike made ads featuring Olympic athletes and sponsored 11 out of 12 high profile US basketball players.Sales in Asia grew by 15%

Updating 4 P’s

ProductNike’s products and technologies advance along with customer’s needs and preferences.Dri-fit, Nike Air, Nike+ are its famous technologies.Nike’s accessories vary hugely.

Pricing At the initial release Nike’s products follow premium pricing but as they age the pricing strategy changes to more of penetration strategy.Nike’s products are expensive but reasonable.

Place • Nike distributes its products through long

chain retailers like Footlocker and Rebel.• Nike operates in more than 160 countries

around the world.

Promotion

Advertising campaigns

Social Media Marketing

Macro environment

Social factors

Technological factors Economic factors

Legal factors

Nike TodayBrexit effect - Nike’s Run Faces a Tough Climb amid rising inventory and supply-chain stumbles.Nike wins the sneaker war against Under Armour.Nike continues sponsorship of Maria Sharapova and FC Barcelona.Nike's 1st self-lacing shoe will be HyperAdapt 1.0; will be exclusive to Nike+ app members.

What pro’s, con’s and risks of Nike’s core marketing strategy???Pro’s- Slick high tech image.Creating brand value by promoting top athletes.Global presenceConstant innovationCon’s-Targets only the sports segment so it loses market in life style productsProducts too expensive for the middle class.Risks-Intense competitionNegative influence of spokesperson.

If you were Adidas ,how would you compete with Nike???If I were Adidas I would target the market which Nike lacks. I would focus on life style products.I would present Adidas products as more eco-friendly and flexible.In the important events I would take special care to sponsor top athletesbefore Nike does.

Summary

Disclaimer Created by Padma Vaibhavi, NIT Raipur, during Marketing Management internship by Prof.Sameer Mathur, IIM Lucknow.See (www.IIMInternship.com)