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Chapter 1- Nike case study

Introduction and background:
Nike is located at Bearverton, Oregon. The company was founded in 1978by Bill
Bowerman and Philip Knight, named Nike and become the number one sports manufactures
in the world design by Nolan Breitbarth in the 1970s.This company sells sports products
worldwide. Nike sells a huge range of products, including shoes and apparel for sports
activities like volleyball, cycling, golf, athletics, American football, tennis, combat sports,
basketball and football. Nike is a company that has attained success in the market thanks to
the excellence of its products and the passion for everyone to use its brand products that
create the Nike Just Do It feeling for the competition. The proven strategy of the company is
to create a consumers perception of brand influences their buying decision in sports industry
by athletic expectation that is endorsed by real athletes, technique that has revolutionized the
sports marketing. Nike recently teamed up with Apple Inc. to produce the Nike + product
which monitors a runner's performance via radio device in the shoe that communicates with
the iPod nano. American brand Nike is number two in terms of name recognition among
foreign consumers and is a sponsor of different players, events and sports teams, among
others, and is the number one sports brand in the world. The direct competition of Nike has
always been the sports brand Adidas.
Analysis and evaluation:
The case explains how Nike successfully marketed it products by getting it endorsed
through top athletes, who influence the buying decision of brands and products of others and
created its brand image by associating the products with their persona. By signing the
Michael Jordan and relating it air Jordan shoes to his superior performance ,it generated great
revenues in a year alone, and its just do it ad campaign manifested brands attitude of self-

empowerment through sports. Nike customized its marketing strategy depending upon the
market as it did at the time of expansion to Europe by focusing on soccer rather than the
aggressive US style ads and sponsored local club, and fortunately the Brazilian team for
world cup in 1994 which they won an authenticated Nikes image into brand representing
emotion allegiance and identification due to which over next decade overseas revenue for the
first time passed US revenues. It diversified the product line by acquiring a British soccer
related by acquiring British company manufacturing. Soccer related footwear apparel and
equipment becomes sole supplier of uniforms to professional soccer teams. At the time of
Beijing Olympics, although Adidas was official sponsor, received special permission for
featuring Olympic athletes in its ads and sponsored several teams and athletes that resulted
into 15% higher sales in Asian region. For expansion of its product line of tennis clothing and
Nikes gold brand it signed top tennis players and Tiger Woods relatively who changed the
way professional golfers get dressed. Nike showed social responsibility by helping Lance
Armstrongs campaign and spread Armstrong message of survival and will power world
-wide. The recent innovation by introducing technology in shoes by entering partnership with
apple is Nike+ and marketed it by hosting largest and only global virtual race. With such an
effective marketing strategies Nike today enjoys 31 % market share globally and 50% in US
and is the top athletic apparel and footwear manufacture in the world.

Component of success:
Nike is kind of a monopoly in this market thanks to the market strategies used that
have allowed this firm to place and especially, remain, well above their competitors, that is
why this firm falls into the category of monopolistic competition. One of its strengths is that
it is a world class company that has the facility to sell their products anywhere in the world.

Nike has more than 700 production factories around the world. Other two major strengths of
the company, is their slogan and symbol, which have allowed, through their marketing that
this brand can become increasingly known. Nike is a well-established company that has
managed to get out of economic crises and demands, which also represents a threat to the
assets of the company. Moreover, Nike is a company that is dedicated to their customers; it
does not neglect any part of the business and react properly to any changes in the consumer
behavior by taking steps that allow them to maintain a leading position in the market. This
company is a leading innovator, they are always looking to offer the best and satisfy
consumer tastes even when the population is different. The countless ads that Nike publishes
around the world are not specifically to view them, Nike have managed to create images that
consumers hardly forget, innovative images.
Nike vulnerability:
Nike have the target market of soccer sector only. Nike customized its marketing
strategy depending upon the market as it did at the time of expansion to Europe by focusing
on soccer rather than the aggressive US style ads and sponsored local club. Nike risk much as
any brand with celebrities sponsoring by the fact that they may be involved in scandals, but it
still retains its credibility as a firm around the world.

Nike looks out should be:

Athletes are still currently the majority consumers of Nikes products. This is because
of the usefulness that goes along with the items. Nike focuses on these consumers by means
of agreements with sports team, college sponsorships, and endorsement with individual
athletes. Through this, Nike is able to reach an extensive number of consumers and clients
who are likely to purchase their products. Nike pays particular focus on the athlete more than

other individual consumers. Nike should consider for what they are known for which is sports
products. And also should be updated about the trend in market.
Recommendation:
Their promotional strategies should influence all and should not hurt anyone norms
and value. While advertising, it would be better if they use celebrities who are already famous
in masses. Nike has reached a point where they can count on the Nike name promoting itself,
and yet they continue to produce innovative ideas. These ideas have been productive and
entertaining promotional tools. In the case of Nike, it should continue to market itself towards
people of all ages who wish to be active and still comfortable. This marketing strategy has
been particularly successful as its capability to reach many athletes, and according to Nike
that is anyone with a body.
Marketing:
Using sports personality as their brand image is one thing that they must do so that
common people can relate it, add should be given in proper way and in all possible way and
medium so that all the consumer can know about it. Nike focuses on the consumers who
embrace product understanding and closeness, which allows the company to set a higher cost
than its competitors. This is a marketing strategy of Nike which calls for superior pricing
points in order to push the supposed value of the product. This strategy has also proven
successful for the company
Summary and conclusion:
Nike is a footwear brand which is world largest and company in fitness brand
available for all gender and age groups. It has consumer from all over the world. It is also in
clothing line. It is also socially responsible. It is different from other because of its
innovation.

Nike has an inelastic demand since the variation in the prices of their products does
not affect the number of consumers that the brand has, again thanks to their marketing and
advertising techniques. The countless ads that Nike publishes around the world are not
specifically to view them, Nike have managed to create images that consumers hardly forget,
innovative images. Consumers are always changing by the products they promote the more.
Nike dominates and will continue to dominate the global sports market as its products are
accessible and because they offer many promotions and discounts to their customers around
the world, if Nike dominates this market nowadays is all thanks to its marketing beyond the
quality or accessibility of its products.

Nike and advertisement is like synonyms. It has the best advertisement skill. Not only
internationally recognized team used this brand but also it is the primary choice of the
common people or any club team. It is very convenient and flexible to wear. It is a
professional and competitive with good management. It is a true market leader.

References:
http://www.academia.edu/8342734/Case_Study_Analysis_on_Nike_Corporation
Kotler and Keller(2009), Marketing management,Pearson Prentice Hall 13th edition.