NIKE
http://www.youtube.com/watch?v=
mfpZiJaLuyY
NIKE
Caleb Smith, Robert Thornton,
Lauren Thrasher, John Yarbrough,
and Bobby Wilson
Then and Now
Company Development
Phil Knight
Nike’s Market
Orientation
• Originally, Nike was a
product oriented firm
that focused all of its
attention on internal
capabilities and
producing unique and
innovative products.
• As the company has grown, it has taken on a market-orientation, meaning
that it focuses on a customer’s wants, needs, and decision to purchase a
product.
• This is achieved through connecting with and getting feedback from
customers as well as providing customers with highly customizable products
through services like NIKEiD.
Phil Knight
“Beyond that, we do some fairly typical kinds of
market research, but lots of it involves spending
time in stores and watching what happens across
the counter, getting reports from dealers,
conducting focus groups, tracking responses to
our ads.”
“Now we understand that the most important thing
we do is market the product. We’ve come around
to saying that Nike is a marketing-oriented
company, and the product is our most important
marketing tool.”
Target Market
• Nike’s main target markets are:
1. Athletes
2. Sports fans
• Though many Nike ads feature
the successes of professional
athletes, Nike also markets to
the average person by
encouraging them to push
themselves to be their best.
http://www.youtube.co
m/watch?v=rtWcE3wgu
KY
Competitive Advantage
• The simplicity and style
of their swoosh logo,
created in 1971, has
played a huge role in the
company’s continued
success.
• The “Just Do It” slogan
has prevailed since its
creation in 1988 due to
the fact that it can be
applied universally and is
intensely personal.
• The sponsorship of professional athletes is designed to attract
customers and promote the Nike image as being reliable to not only
everyday customers but also professional athletes. As a result, customers
associate their Nike purchases with the prospect of achieving greatness.
Marketing Strategy
Marketing Strategy
• Nike’s marketing budget for 2013 is $2.7 billion.
• Historically, they coined viral catchphrases: “Gotta be the
shoes,” “Chicks dig the long ball,” “You don’t win silver, you
lose gold,” “There is no finish line,” and “I am not a role
model.”
• Nike has shifted to a more digital approach to stay connected
with customers.
1. In 2010, Nike Digital Sport was launched in an effort to
create a sustainable competitive advantage.
2. Develop cutting-edge products like the Nike+ running
sensor and the FuelBand
• Nike also uses emotional marketing tactics to inspire
customer loyalty.
Social Media
Social Media
Recent marketing advancements replacing big-time
television campaigns:
• A performance-tracking wristband that collects user
data and trends for marketing use
• 30-story billboard in Johannesburg that posts fan
headlines directly from Twitter
• A major World Cup commercial shot by an Oscarnominated director that has recently made its debut on
Facebook, gathered 8 million views in a week to set a
viral-video record
• The Nike+ platform
Marketing Research
Marketing Research
Marketing Research
• Goal: growth of market share in the industry
• Recent focus of marketing research:
1. China’s perception of Nike products and inspiring
exercise habits and sports team loyalty to attract
customers to the brand
2. Customer reactions to rumors and wrongdoings
associated with their sponsored athletes (Example:
Tiger Woods)
3. Nike Retail Store Surveys- taken after making an instore purchase, about 7 minutes to complete on the
Nike website
4. Nike Apparel Wear Testing- participants, who are
simply potential customers, are required to turn in a
wearing log with information about their experience
with the apparel
Marketing Management
Philosophy
• Nike has been able
to spend a large
amount of money on
aggressively
advertising their
products because of
the enormous profits
generated.
• Nike products are
available for
purchase in nearly all
sporting goods stores
in the United States,
giving them mass
exposure to target
markets.
Social Responsibility
• During expansion outside the United States, Nike encountered many
problems with labor and environmental issues. Nike failed to adequately
address labor issues for many years, but it has recently made great efforts
to improve workers' conditions.
• They created Codes of Conduct that cover environmental and social
impacts along with internal teams that work specifically to enforce these
regulations.
• Nike was the first company in its industry to fully disclose a complete list
of all the factories that the company uses in the manufacturing process
“to encourage and support transparency and industry collaboration
around issues affecting our suppliers”
• This illustrates their commitment to the society and environment in
which they operate.
Nike’s Promotional Mix
Promotional Mix
• Product – stylish footwear, cutting-edge equipment, trendy
clothing and accessories, and team jerseys for a variety of
sports, including basketball, soccer, football, running, and
training for other action sports. Nike also offers sports-inspired
products for children and various recreational activities, such as
golf, tennis, and walking.
• Price – As incorporation of technology increases, Nike strives
to keep prices reasonable and reflective of a product’s quality.
• Place - Nike's retail strategy in the U.S. is to keep a small
number of Niketown stores and sell mostly through national
retailers.
• Promotion – In many ways, Nike’s focus on effective
promotional strategies has been key to the company’s lasting
success.
Global Manufacturing Growth
Global Vision
Global Vision
• China is the company’s second-largest market. Because there are
fewer malls, and they opened more than 5,000 boutique-sized shops,
many of them focusing on a single sport. They also launched a
campaign to promote the importance of running, targeting younger
customers.
• In Europe, the company has filled a previously unknown need for a
hybrid sneaker soccer shoe to wear out and about that still has the
capabilities to perform in a pickup street soccer game for example.
• Going Green: "Sustainability is key to Nike's growth and innovation,"
said Mark Parker, NIKE, Inc's, President. "Making our business more
sustainable benefits our consumers who expect products and
experiences with low environmental impact, contract factory workers
who will gain from more sustainable manufacturing and our employees
and shareholders who will be rewarded by a company that is prepared
for the future."
Financial Analysis