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Analysis of Marketing Plan of Nike and Michael
Jordan
Former University of Oregon track coach and co-founder of Nike Bill Bowerman once said: "If you have
a body, you are an athlete!" (NikeBiz) This way of thinking is how Nike conducts every aspect of their
business. Every person is a potential athlete or "consumer". This is a common term when used in the
realm of athletics but when Bill Bowerman said this it was in direct reference to the shoe industry.
From their marketing strategies to their selling philosophies, Nike has developed one of the most
recognizable and demanded name and logo tandems ever.
Nike, which is the Greek Goddess of Victory, was born in 1972 when BRS, Blue Ribbon Sports, launched
its first branded shoe at the U.S. Olympic track and field trials. A former University of Oregon track
team member Phil Knight created Blue Ribbon Sports. At Oregon, Knight was coached by the legendary
Bill Bowerman and then went on to become and alumni of the Stanford School of Business. BRS was
crafted in 1962 when Knight made a deal with Onitsuka Tiger Company, a Japanese shoe company, to
import their shoe to the United States. Knight had the idea to sell a low cost shoe with a very high
quality. Knight had high aspirations of taking Adidas out the top spot in the athletic shoe market. In
1964, Bill Bowerman decided to join Knight as a partner at BRS to create a joint quest to be number
one. Bowerman redesigned the Tiger shoes while Knight acted as the accountant/personal seller and
went on the road to sell their newly crafted sneakers at track meets and local shoe stores. By 1966,
Blue Ribbon Sports opened their first store in Portland, Oregon. Knight and Bowerman managed the
store with the only other employee being a former Stanford runner Jeff Johnson. (story/chrono, 1)
Signing First Endorsers During 1971, BRS caught a break when a trading company called Nissho Iwai
introduced BRS to important letters of credit. This credit allowed BRS to subcontract its own shoe line
and by 1972 it was selling Nike Brand shoes. Over the next decade Nike expanded almost double its
size each year from the previous year. Nike is officially called Nike in 1978 and has signed on tennis
great John McEnroe, New York City marathon champion Alberto Salazar, women's marathon gold
medallist Joan Beniot, and Olympic track star and gold medallist Carl Lewis. (story/chrono, 1-2) Also
during this time Nike is opening manufacturing plants all over the U.S. Nike was a household name for
most athletes by early 1980's.
Nike's focus was still on track and field and for the most part track athletes were their target market.
One of the first individuals to endorse a Nike product was a man who exemplified their style and way
of conducting business, Steve Prefontaine. Prefontaine was a household name in the late seventies and
has gone down in history as one of the best American track and field athletes ever. Prefontaine was a
friend of Knight and had been coached by Bowerman at the University of Oregon. Prefontaine
embodied what Nike wanted as its differential advantage of other companies due to his brash attitude,
high talent level, and cavalier mentality. Nike marketed itself as a new and innovative shoe company
that constantly had the athlete's performance in mind unlike existing companies who focused on their
products appearance and durability. Nike infested their market with bright colors, new styles, and
technology information pertaining to their products. This is why Steve Prefontaine and Nike were a
tremendous tandem in the early years of Nike's existence.
By 1984 Nike had supplanted Adidas as the number one selling running shoe company in America. But
this was not enough for Nike. At this time Nike was known for its attention to the wants and needs of
their market, the individual runner. The Nike Brand itself, and while Knight and the employees of the
company promoted Nike across the country, the quality, comfort, and design of the shoe were selling
the product already. During the period from 1985-1987, Nike dropped back down to number two in
the running of the shoe market. Sales had dropped off because the running boom of the late 70's and
80's had begun to diminish. Nike began to notice and entire market that the company had been
avoiding, everyday athletic activities. These activities were things done by everyday people and not just
the serious athlete. Fortunately for Nike, in 1985 their star was brought to light. A rookie basketball
player with amazing talent and a nice smile fell into their lap, his name is Michael Jordan.
(story/chrono, 2) Michael Jordan As soon as Nike signed Michael Jordan they began to market a new
line of shoes and apparel with the name AIR JORDAN. This was the beginning of the JORDAN Brand and
Jordan's Jumpman23 products. Featured prominently on each AIR JORDAN product was the Nike
insignia, the swoosh, the product mark which the Jumpman23 and the AIR JORDAN label. Jordan came
to Nike at a time when the marketability of the NBA was increasing. NBA games were being nationally
televised during prime time television hours and weekends. This gave Nike the perfect platform to
develop and market their new star and the products that he endorsed.
During the first few years Nike introduced Jordan to the public and Jordan familiarized himself with the
American public. Nike ran a series of ads with Jordan and film director Spike Lee. These ads were aired
during prime time television hours and were solely targeted for pre-teen school students. These ads
displayed an expressed message to "Stay in School."(story/mkg_innov, 1) The ads presented kids with
a national figure that was selling both school and Nike's products, how could parents deny their
children the shoes of such a virtuous spokesman? Jordan was a figure that children adored, looked up
to and tried to the best of their ability to copy. Nike used this to display a great positive image for
their company and to sell their products. The ads were also the first by a company that didn't use the
usual 3 a.m. sport for public service announcements. Nike wanted to be a bold marketer; they aimed
for the top promotional sports and developed a pioneering strategy for their industry. Nike continued
to promote Michael Jordan through their ads and Jordan continued to promote their products.
The introduction of the AIR JORDAN line helped to create new lines of basketball shoes, including the
AIR FORCE and AIR FLIGHT lines of basketball shoes and apparel. Also, a new innovative technology
was a layer of air cushioning in their shoes; this was truly a differential factor for Nike when placed in
comparison with other shoe companies. Nike's sales jumped to over $3 Billion in total. Nike's AIR
JORDAN shoe was the best-selling and most popular basketball shoe on the market. The AIR JORDAN
shoe reached a point in the mid-nineties when a small picture of Michael Jordan at practice wearing
different shoes sparked a booming inquiry all over Chicago. One store alone received over 300 phone
calls asking if they had the shoes in stock. (Katz, 72) The Jordan Empire The market Nike in which they
wanted to target Jordan towards now was the "athlete of any age." Nike began to produce sizes from
infant on up. Nike created commercials that glorified Jordan and displayed his humbleness. In the
commercials Jordan did things that young and old people alike always dreamed of doing. Most of the
commercials included Jordan soaring through the air, seeming to be hung from the sky with the
chorus, "If I could be like Mike" playing in the background. Jordan would then drop out of the sky and
dunk the basketball. In one commercial aimed towards younger children, Jordan played the Warner
Brothers Loony Toons Characters. For an older generation Nike created a commercial where Jordan is
on a dimmed basketball court and a booming voice comes in and says, "What if my name weren't in
lights? Can you imagine that? . . I can?" This commercial marketed Jordan as human being and not the
untouchable being that he is sometimes projected to be; this was aimed to help the average person
relate to Jordan. (Katz, 72).
As much as Nike markets Michael Jordan, Michael Jordan markets himself and the products that he
represents. Jordan is always a well-dressed, well-mannered, good natured, and respectable individual.
It is a welcomed change from the tattoo covered and pierced "bad boys" that other companies have for
their spokesman. All of these things draw people to Michael Jordan as a person, but his talent level is
what makes Michael Jordan a worldwide icon. Michael Jordan plays at a competitive level of
professional athletics that has almost never been matched in any professional sport. This talent alone
sells, but when the talent is selling a product, the product is going to sell even better. The more Jordan
played in front of national audience the more Nike was marketed. Jordan was a human marketing
piece. He was and still is a walking, talking billboard that just happens to be a spokesman for Nike.
Jordan can get as much air time and publicity as he desires just due to the sheer fact that the demand
for him and his products is so great. Everyone wants to see what Jordan is wearing and doing at all
times. To the target market, Jordan is everything they hope to be and by buying the product he
endorses the consumer feels that they can come that much closer to their hero.
The Jordan Brand Even though Michael Jordan has retired from basketball his success continues. In
1997, Jordan announced the formation of the new signature Jordan brand. The Jordan Brand is a
separate business unit from the Nike Brand; it will be able to explode product avenues that would have
not necessarily have been explored under Nike's umbrella. (media/n_jocroconcept, 1-2) Unlike most
companies, Jordan Brand doesn't have to worry as much about marketing strategies or who their target
market will be. Jordan Brand can use secondary research from Nike and have most of their information
developed for them.
The Jordan Brand not only offers the popular AIR JORDAN shoes but it also offers an apparel line and
other shoes under the Jordan Brand. The area where Jordan Brand succeeds, but Nike failed was their
pricing system. In terms of product, place, and promotion Nike succeeded, but in terms of price Nike
was way above affordable range for most consumers. Nike's shoes for Jordan cost up to $130 per pair,
but Jordan Brand offers comparable products with the JUMPMAN23 logo and Jordan name for
considerably less. While this may only be a substitute for the real AIR JORDAN's, Jordan Brand makes it
possible for people with lower incomes to afford to make the purchase and "get closer to their hero."
(Armstrong, G7) Jordan Brand already sponsors such teams as Penn State University, Florida State
University and University of North Carolina- Jordan's alma mater. Many other NBA players who grew up
with Jordan as their idol have followed suit and jumped on the Nike bandwagon. Nike endorses Eddie
Jones, Ray Allen, Michael Finley, Scottie Pippen and Kevin Garnett. Jordan Brand has also grown to
encompass other sports and sports figures as well. It now includes Football Player Randy Moss, Golfer
Tiger Woods, and Boxer Roy Jones, Jr. Every one of these athletes is a well-known and well-respected
athletes and supposedly "the best at their sport" just like Jordan is. Many fans already look up to them
and idolize them just like Jordan, making the marketability of each one very easy.
The Jordan Brand continues on in the Nike tradition of making shoes and apparel for the athlete and
by the athlete. Not only is the quality of Jordan Brand well known but also the name by itself can be a
differentiating factor when it comes time to make a purchase. Other companies do not have the name
recognition and the creditability that comes with the name that the Jordan Brand possesses. When the
Jordan Brand broke away from the Nike Brand it brought customer loyalty with it. All of these factors
helped to ease the introduction of the Jordan Brand into the consumer market place. Jordan Brand
skipped over the market penetration stage and went right to the most profitable stage; Jordan is close
to its maturity. (Armstrong, 290-292) When Nike has lost a very profitable section of the apparel and
shoes sales, Nike is still the top overall seller of shoes and apparel. Even when Michael Jordan decided
to retire from basketball they remained true to Michael. They launched a very profitable campaign that
became very popular. This "retro" collection was bringing back Jordan's past shoes. These throwbacks
were very expensive, but also sold very well. Nike also began to sell some of Jordan's college gear,
such as shoes, shirts and shorts. This has made University of North Carolina colors and apparel very
popular as well.
Conclusion Nike's ideals and goals remain the same as those of the feisty Steve Prefontaine and Bill
Bowerman. Nike CDO Phil Knight is not slowing down as he continually signs new colleges on as Nike
endorsed schools, even purchasing portion of the NFL's Dallas Cowboys. Nike has reached a point
where they can count on the Nike name promoting itself, and yet they continue to produce innovative
ideas like the BOING! Campaign. These ideas have been productive and entertaining promotional tools.
Nike continues to market itself towards people of all ages who wish to be active and still comfortable.
Jordan brand looks forward to continuing success in the future with the return of Jordan to the
basketball court. With him coming back it exposes him to more people and more often. This has made
more people realize the Jordan Brand. With his continued success on the court at an older age has
propelled him and his name into the most marketed icon in history and has opened up other doors for
athletes to do the same like Tiger Woods. These "lifelong" fans of Jordan have made them loyal to Nike
and its products for life.
With Michael Jordan back in basketball and the invested interest by the media and the public this will
certain help sales and keep alive the strong traditions of Nike and JORDAN BRAND apparel. With the
innovative and entertaining Nike marketing staff and the basketball god that is Jordan, the shoes will
sure to be flying off the shelf- like Jordan from the foul line for a successful dunk.
Bibliography
Katz, Donald. "Triumph of the Swoosh." Sports Illustrated. 16 August, 1993: 53-73.
Armstrong, Gary and Kotler, Phillip. Principles of Marketing: Ninth Edition. Upper Saddle, NJ: Prentice
Hall, 2000.
ONLINE SOURCES: NikeBiz. "History" (27 November, 2001)
http://www.nikebiz.com/story/hist_our.shtml NikeBiz "Our Chronology" (2001)
http://www.nikebiz.com/story/chrono.shtml NikeBiz "Shoe Evolution" (2001)
http://www.nikebiz.com/story/pr_tech.shtml NikeBiz "Marketing Innovations" (2001)
www.nikebiz.com/media/markinnov.shtml NikeBiz "Beyond Shoes" (2001)
http://www.nikebiz.com/story/pr_beyond.shtml
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