IMC Nike: Advertising Campaign Melissa Chism Chris Benitez Brian Kersey Brittany Roos IMC History • Nike Inc. is an American multinational corporation that is involved in the design, development, and marketing of footwear, apparel, equipment, accessories, and services • Blue Ribbon Sports was founded by Bill Bowerman and Phil Knight in 1964 (later became Nike Inc. in 1978) History • Phil Knight was a track athlete at the University of Oregon and Bill Bowerman was his coach • Bill Bowerman and Phil Knight each invested $500 to launch an athletic shoe company http://www.opb.org/programs/oregonexperiencearchive /billbowerman/media/timeline/image9.jpg History • The Nike “Swoosh” was designed by Carolyn Davidson and was first introduced in 1971 • In 1976, Nike hired John Brown and Partners as its first advertising agency • By 1980, Nike had attained 50% of the market share in the U.S. athletic shoe market History • In 1977 Nike used its first brand ad called “There is no finish line” • Wieden+Kennedy became Nike’s primary ad agency in 1980 • Co-founder Dan Weiden was the one who coined the famous slogan “Just do it” in 1988. • His inspiration came from the last words spoken by Gary Gilmore, “Let’s do it”, before he was executed Slogan Gary Gilmore, January 17, 1977 http://seventies1970s.com http://www.nytimes.com/2009/08/20/business/media/20adco.html?_r=0 Culture • Nike’s wants an open and creative culture that harnesses diversity • They also want their culture to inspire ideas and ignite innovation • Team composition, manager excellence, and team culture are all critical to Nike’s success • Nike has three main priorities Culture • The first priority is to focus on the fundamentals • They offer a resource center with various tools and exercises to help teams discover how diversity drives creativity and innovations • Nike offers team experiences and exercises to help promote diversity • To date, Nike has facilitated more than 200 sessions in 30 countries Culture • The second priority is to empower inclusive cultures • In 2009 Nike invited a panel of young employees to share their perspectives and experiences with senior leadership • This event inspired more meetings in 20 other locations worldwide Culture • The third priority is to inspire ideas and innovations • More ideas lead to better ideas, and better ideas lead to innovation • Nike’s focus on culture has been recognized by colleges such as Georgetown University Marketing Strategy • Nike Swoosh Logo • Celebrity Endorsements • Sponsorships • Word-of-Mouth & Buzz Marketing Distribution Strategy • Focus on more interactive, digital marketing elements • 2010: $800 million on nontraditional advertising • Decreasing reliance on TV and print advertisements • Spending ↓40% in past 3 years Competitors • Nike competes in the following: • • Athletic apparel/footwear industries Sports equipment manufacturing industry • Main direct competitors include: • • • • Adidas UnderArmour Reebok Puma 4 P’s: Product • Wide range of sports equipment • First product: Track Running Shoes • Currently also make shoes, jerseys, shorts, base layers etc. • Nike recently teamed up with Apple, Inc. to produce Nike+ 4 P’s: Price • Nike uses a vertical integration in pricing wherein they own participants at differing channel levels or engage in more than one channel level operations. • Attempt to control costs and influencing pricing practices • The pricing is based on the basis of premium segment as target customers. 4 P’s: Placement • Carried by multi-brand stores and the exclusive Nike stores across the globe. • Sells its product to about 20,000 retail accounts in the U.S. and in almost 200 countries around the world. • Internationally, Nike sells its products through independent distributors, licensees, and subsidiaries. 4 P’s: Promotion • Athletes: • Ronaldino, Renaldo, and Roberto Carlos (soccer) • Lebron James, and Jermane O'Neal (basketball) • Tiger Woods (Golf) 4 P’s: Promotion • • • • Sponsoring for Events Websites Hoop it up The Golden West Invitational Social Media Numerous different account types: • • • • • http://nike.com Sport City Product Nike Co. Social Media Campaigns Social Media http://instagram.com/# Social Media http://twitter.com Celebrity Endorsements Celebrity Endorsements http://24.media.tumblr.com/tumblr_m7hd6h5jJd1qg k4rzo1_500.jpg TV Commercials? Nike has the ability to reach their target markets without relying heavily on commercial advertisements due to their use of celebrity endorsements. http://sinbapointforward.files.wordpress.com/2013/01/lebron-jamespast-present-dunk.jpg Ads: Then & Now 2010 http://www.youtube.com/watch?v=5NTRvlr P2NU 2013 Internet Buzz • Cleverly develops controversial ads • Generate media frenzy via word of mouth • “Free” advertising Future Campaigns & Promotions • Nike will continue to use celebrity endorsements • Nike will try to market to new sports • With the growth of social media, Nike will continue to advertise its products on Facebook and Twitter