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.
