Rickeya Beale
Dr. Lollar
Role Play#2 Paper
July 17, 2008
Nike is a household name that everyone knows when they hear it or sees the
infamous swoosh symbol. Nike was founded in 1962 by Phill Knight and Bill Bowerman,
but was originally called Blue Ribbon Sports. The name Nike comes from the winged
goddess of victory, according to Greek Mythology. The Nike swoosh, which was created
in 1971 by Caroline Davidson also represents the winged goddess and was sold to one of
the master minds of Nike, Phill Knight for only $35.00. From there grew the empire
which is so well know around the world today. 1972 Nike produced its first shoe, The
Cortez also known as the “Dope Mans”, out of China.
After reviewing the sales volume stats for Nike in 2008, I found that during this
fiscal year there revenue went up 14% to 18.6 billion dollars. Net income increased 26%
to $1.9 billion, and shares also increased to $3.74 which is up 24% from last fiscal year.
The image that Nike has always tried to uphold has always been that of a positive one.
Nike is a home to some of the most successful athletes to date. One major athlete that has
a major impact on the success of Nike was Michael Jordan. In 1985 when Nike
introduced the first Air Jordan, this shoe was unlike anything that the world had ever seen
or been exposed to. The Air Jordan, which Jordan hated when he first saw the shoe, was
banned from the NBA because it was not like what most players were wearing, and the
league said that it had too many colors.
With Nike having product being sold in over 160 countries and distributing its
employing over 30,000 jobs location throughout six continents , it’s no wonder Nike is
the worlds largest holder in the athletic footwear market holding about holds 37% of the
market share.
With Nike being the leader in athletic footwear there are may features and
benefits that this company has to offer its buyers and potential buyers as well.
Features
1. Good reputation
2. Some of the best sports names wear
Nike
3. Variety of styles for all
Benefits
1. Some of the best sports names wear
Nike
2. People want to wear what the best
wear
4. Internationally known
3. Ability to satisfy any type of need
5. Discount of bulk sales
from athletic to causal/business
6. Personalized items
7. Sells more than just shoes
4. Ability to grow and expand outside of
the US
8. Well know slogan “Just do it”
5. Huge savings on team sales
9. Symbol
6. Purchased special goods for yourself
10. #1 in footwear market
or as gifts
7. Ability to compete in more than just
the footwear market
8. Easy to remember
9. People worldwide know the Nike
swoosh when it’s on TV
10. People will always buy the product
While Nike may be one of the first names that come to mind when you think of
athletic footwear, there are other companies that compete and have been in market with
Nike for years. Companies like Puma, New Balance, and Adidas whom recently acquired
Reebok give Nike the most competition in the athletic industry. Reebok which
collaborated with rappers Jay-Z and 50 cent to create a well rounded summer shoe once
was the leader in athletic footwear outselling Nike about 25 years ago. As technology
changes, Nike must position itself to appeal to with the new generation Y era. With the
constant change in daily activity, this has caused major expansion in the footwear
industry. Skateboard companies are now putting out massive amounts of sneakers at a
rapid pace, giving Nike a run for its money and causing them to create a skateboarding or
an alternative sports sneaker as well. While it may seem to some that sneakers don’t have
much of a variety and can be use for the same purpose no matter what type it is, that is
where Nike differs from all of the rest. Nike offers support and comfort that you just
don’t find in most shoes, ranging from Air Jordan basketball sneakers, training shoes, and
even down to working with Cole Haan to produce a loafer and high heel that has the
same feel and make as an Air Max training shoe.
Over the past five years Radford athletics has tried to improve it’s ranking in the
Big South conference by searching and selecting the best possible athletes to participate
and attend its University. After review the sports teams at Radford University I have
decided to select the women’s basketball team, who have made it to the championship
game of their conference for the past two consecutive years, but have fallen short by a
total of 11 points in the two games. The team is currently sponsored by Adidas, which is
a very well known company who provides them with uniforms, warm ups, sneakers, and
other accessories that are worn throughout the season. Radford University would be a
great investment for Nike because they are a young team that is growing and getting
better as the years progress. In order to reach my main objective of convincing the team
that with Nike apparel that would not only increase there confidence, but possibly also
improve their performance with the technology that is found in Nike athletic wear. First I
would contact the University and the director of athletic directors and set up a meeting to
discuss the amount or the range in which they spend with Adidas and see if Nike was
able to produce something equivalent to the deal they currently have with Adidas. If
there were any other details that the University needed to see before signing into a
contract I would discuss the details and answer all questions. After supplying the athletic
director with all the vital information that was needed, I would then develop a budget that
fit within the University needs and give them a catalog to get the ordering process started.
The most obvious objective that could present a problem when selling this service
would be rejection. The University may already feel that the contract that they have
established with Adidas is enough and they don’t feel the need to switch or waste money
considering any alternative. The University maybe locked into a contract with Adidas and
may not be able to get out of it until the contract expires. If this arises, the most sensible
solution would be to find out how long the University is locked into the contract and how
much would they be out if they voided the contract. With this information I will be able
to determine if a second visit is even worth it, until they are out of the contract. Another
objection that may present itself is not discussing this process with a qualified lead. To sit
and meet with the athletic director and he is not the final decision maker, would require
me to revisit the University and meet with the individual who has the say on the last
decision. This could be very costly for my company because if they are unavailable and
we have to reschedule it could interfere with other possible candidates. A final objection
that may cause a problem is being able to contact the team and reach a decision before
the season begins or they have already renewed or established a new deal. This could
present a problem because the team is normally off in the summer, but to try and sell then
apparel and athletic gear during the season would be almost impossible. The most
sensible solution for this objection would be to start talking to the team as soon as the
season ends but before the new one begins.
To attempt to persuade Radford University that they need to change sponsors to
Nike I would present them with pictures of uniforms that I have constructed with the
Nike logo. With multiple styles, colors, and material types the photos would be a great
way to show what could be in the works. In order to depict the different types of footwear
and apparel that could be worn on and off the court, I will supply the coaches product
samples and catalogs with all the available merchandise and the features and benefits of
each.
My main objective for this presentation is to get Radford University women’s
basketball team to switch from wearing Adidas sportswear to Nike sportswear.
Throughout this presentation I will educate the customer with all the possible positive
benefits and any other background information, that University may have bee unaware of
to ensure them that Nike is the best company for their team.
Bibliography
Andrews, D. L. (1996). The Fact(s) of Michael Jordan's Blackness: Excavating a
Floating Racial Signifier. Sociology of Sport Journal, 16(2).
Katz, D. (1994) Just Do It: The Nike Spirit in the Corporate World. New York. Random
House, Inc.
Landler, M. (2005). Nike will be facing a pumped-up rival. Retrieved July 11, 2008,
from the International Herald Tribune website:
http://www.iht.com/articles/2005/08/03/business/reebok2.php?page=2
Nike, Inc. Reports Fiscal 2008 Earnings per share of $3.74 (2008). Retrieved July 12,
2008, from the Nike website:
http://www.nikebiz.com/media/pr/2008/06/25_Earnings.html
Nike Brand Portfolio (2008). Retrieved July 14, 208, from the Nike website:
http://www.nikebiz.com/company_overview/subsidiaries/index.html
Reilly, R. (1997, March) The Swooshification of the world. Sports Illustrated.
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