Introduction
● Nike, Inc. is a major publicly traded
sportswear and equipment supplier based in
the US.
● The company is headquartered
near Beaverton, Oregon.
● It is the world's leading supplier of Athletic
shoes and apparel and a major manufacturer
of sports Equipment
● Revenue in excess of US$18.6 billion in its
fiscal year 2008 (ending May 31, 2008).
● As of 2008, it employed more than 30,000
● The company was founded in January
1964 as Blue Ribbon Sports by Bill
Bowerman and Philip Knight.
● officially became Nike, Inc. in 1978.
● Nike markets its products under its own
brand as well as Nike Golf, Nike
Pro, NIKE+, Air Jordan, Nike
Skateboarding.
● In addition to manufacturing sportswear
and equipment, the company operates
retail stores under the Niketown name.
● Nike sponsors many high profile athletes
and sports teams around the world, with
History
● Nike, originally known as Blue Ribbon Sports,
was founded by University of Oregon track
athlete Philip Knight and his coach Bill
Bowerman in January 1964. The company
initially operated as a distributor for Japanese
shoe maker Onitsuka Tiger
● The company's profits grew quickly, and in 1966,
BRS opened its first retail store
● By 1971, the relationship between BRS and
Onitsuka Tiger was nearing an end.
● BRS prepared to launch its own line of footwear,
which would bear the newly
● By 1980, Nike had reached a 50% market
share in the U.S. athletic shoe market
● Nike's first national television commercials
ran in October 1982 during the broadcast
of the New York Marathon.
● It was agency co-founder Dan
Weiden who coined the now-famous
slogan "Just Do It" for a 1988 Nike ad
campaign, which was chosen
by Advertising Age as one of the top five
th
ad slogans of the 20 century
● Throughout the 1980s, Nike expanded its
Product
● Nike produces a wide range of sports equipment.
● Their first products were track running shoes.
They currently also make shoes, jerseys, shorts,
etc. for a wide range of sports including track and
field, baseball, ice hockey, tennis, etc.
● The most recent additions to their line are
the Nike 6.0, Nike NYX, and Nike SB shoes,
designed for Skateboarding.
● Nike has recently introduced cricket shoes,
called Air Zoom Yorker, designed to be 30%
lighter than their competitors'.
● In 2008, Nike introduced the Air Jordan XX3, a
high-performance basketball shoe designed with
● Nike is well known and popular in Youth
Culture, chav culture and Hip Hop
culture as they supply urban
Fashion clothing.
● Nike recently teamed up
with Apple.inc to produce
the Nike+ product which monitors a
runner's performance via a radio device
in the shoe which links to the iPod Nano
● Some of Nike's newest shoes
contain FLywire and Lunarlite Foam.
Place
● Nike shoes are carried by multi-brand
stores and the exclusive Nike stores
across the globe.
● Nike sells its product to about 20,000 retail
accounts in the U.S. and in almost 200
countries around the world.
● In the international markets, Nike sells its
products through independent distributors,
licensees and subsidiaries. I
● Independent distributors need not adapt to
local pressures because the 4Ps of
Price
● Nike’s pricing is designed to be
competitive to the other fashion Shoe
Retailers.
● The pricing is based on the basis of
premium segment as target customers.
● Nike as a brand commands high
premiums. Nike’s pricing strategy makes
use of vertical integration in pricing
wherein they own participants at differing
channel levels or take part in more than
one channel level operations.
Promotion
● Promotion is largely dependent on finding
accessible store locations. It also avails of
targeted advertising in the newspaper and
creating strategic alliances.
● Nike has a number of famous athletes that
serve as brand ambassadors such as the
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
● Nike also sponsors events such as Hoop It Up
and The Golden West Invitational. Nike’s brand
images, the Nike name and the trademark
swoosh, make it one of the most recognizable
brands in the world. Nike’s brand power is one
reason for its high revenues. Nike’s quality
products, loyal customer base and its great
marketing techniques all contribute to make the
shoe empire a huge success
● ADVERTISEMENTS:
● In 1982, Nike aired its first national television
ads, created by newly formed ad
agency Wieden+Kennedy, during the New York
Marathon. This was the beginning of a successful
partnership between Nike and W+K that remains
intact today.
● Nike also has earned the Emmy Award for
best commercial twice since the award was
first created in the 1990s. The first was for
"The Morning After," a satirical look at what a
runner might face on the morning of January
1, 2000 if every dire prediction about Y2K
came to fruition. The second Emmy for
advertising earned by Nike was for a 2002
spot called "Move," which featured a series of
famous and everyday athletes in a stream of
athletic pursuits.
● In addition to garnering awards, Nike
Endorsements
● Nike pays top athletes in many different
sports to use their products
and Promote/Advertise their technology
and design.
● Nike is the official kit sponsor for the Indian
Cricket Team for 5 years, from 2006 till
end of 2010. Nike
beat Adidas and Puma by bidding highest
(US$43 Million total).
● LeBron James- $90 Million
● Kobe Bryant- $40 Million
● Christiano Ronaldo- $32.5 million
● Maria Sharapova- $6 million
● Roger Federer- $13 million
● Etc.
NIKEiD
● NIKEiD is a service provided by Nike allowing
customers to personalise and design their
own Nike merchandise.
● They offer online services as well as physical
NIKEiD studios in different countries around
the world, including: United Kingdom, France,
Spain, Germany, China and the USA.
● It provides customers the ability to choose
from a limited range of different material and
colours to develop their own style of tennis
● It gave a total of 31 different customizable
parts including the base, overlay, accent,
lining, stitching, outsole, laces, etc.
● In total this shoe gave a choice of 82
different materials and option types.
● It has since expanded from a small
web-based service to a large array of
stores and new software applications to
give consumers a greater range of
personalization and uniqueness in a
variety of Nike shoes and clothing.
Child Labour
● Nike has been accused of using child
labour in Controversy
the production of its soccer balls
in Pakistan.
● While Pakistan has laws against child labour
and slavery, the government has taken very
little action to combat it.
● Furthermore the U.S constitution states that
child labour is an illegal and inhumane
practice and any U.S. company found guilty
practicing and encouraging it will be
prosecuted.
● GATT and WTO prohibits member nations,
like the United States, from discriminating
Competitors
●Reebok:
● Reebok International Limited, a subsidiary
of the German sportswear giant adidas, is a
producer of athletic footwear, apparel, and
accessories.
● In 1890 in Holcombe Brook, a small village 6
miles from the town Bolton, England, Joseph
William Foster was making a living producing
regular running shoes when he came up with
the idea to create a novelty spiked running
shoe.
● After his ideas progressed he joined with his
● In 1960, two of the founder's grandsons
Joe and Jeff Foster renamed the
company Reebok in England, having
found the name in a dictionary won in a
race by Joe Foster as a boy; the dictionary
was South African edition hence the
spelling.
● The company lived up to the J.W. Foster
legacy, manufacturing first-class footwear
for customers throughout the UK.
● In 1979, Paul Fireman, a US sporting
goods distributor, saw a pair of Reeboks at
●Adidas:
● Adidas is a major German-based sports
apparel manufacturer and Parent
Company of the Adidas Group, which
consists of the Reebok sportswear
company, Taylor made adidas
golf company , and Rockport.
● Besides sports footwear, the company
also produces other products such as
bags, shirts, watches, eyewear and other
sports and clothing-related goods. The
company is the
largest Sportswear manufacturer
● Adidas was founded in 1948 by Adolf
Dassler.
● Registered in 1949, Adidas is currently
based in Herzogenaurach , Germany,
along with Puma.
● The company's clothing and shoe designs
typically feature Three parallel Bars, and
the same motif is incorporated into
Adidas's current official logo.
● The "Three Stripes" were bought from the
Finnish sport company Karhu Sports in the
1950s.