...Description of marketing strategies applied by Nike Air Force 4.1 Challenges Forcing Nike to Focus More on Marketing Sportswear is defined primarily as apparel and footwear made for sports participation, though is now also includes casual clothes worn by people for daily activities (E. Ko, C. R. Taylor, et al., 2012). The sportswear market is one of the most price-competitive markets throughout the globe. Within the UK, items of sportswear are purchased by almost 90% of people under 35 years of age, and by 76% of the population as a whole (Mintel forecasts, 2006). The international sportswear market is worth nearly 41.5 billion US dollars at the wholesale level, with Nike, Adidas, as well Reebok comprising some 14% of this market (Jeroen, 2004) and more details are shown in Figure 1. International Athletic sportswear market: Share by brand in Millions of US dollars (Source: Sporting good intelligence, 2003) 4.1.1 Overview of sportswear industry through Porter’s Five Forces analysis Before the study regarding the marketing strategy of Nike Air Force, it is important to have a clear view of sportswear industry as a whole. Based on Porter's Five Forces model, the general characteristics of the industry can be described in the figure as follow. Based on the analysis, it can be concluded that the sportswear industry as a whole can be characterized as competitive and easy for new entrants. Such truth has raised challenges for existed companies, such as Nike. In addition to that...
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...Nike Question 1 In my word, the secret of Nike's success in marketing strategy is that producing the best shoes for these superstars and let them at the forefront of fashion, and then the masses would follow their idol. According to this case, we know Nike believed in a "pyramid of influence". In the 80's, athletes were regard as hero. Nike began to sign famous sport star as its spokesperson for its products. Nike thought the preference of a percentage of top athletes influenced the product and brand choice of others. Nike's marketing department focus on the influence and spirit of individual's image. The first pro of type marketing strategy is the distinct personality, which is able to spread the enterprise concept of positioning strategy so that its products are very attractive to objective group, especially the young generation because young generation's emotion is easier to be encouraged by these superstars. On the other side, when these famous sport stars who win in some important events and races wear Nike's shoes, most normal customers would thought their equipments must be the best and the brand of the equipment is also the best professional. It is very useful to promote Nike's professional image. Another pro of its marketing strategy is to put an end to the stiff lectures in advertising, let these sports stars to show organization culture. At the same time, it enhanced the emotion connection between customers and brand. In my opinion, the only con of Nike's...
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...social image……………………………………………………………...5 a. Public criticism in the 1990s………………………………………………………….5 b. Responding to the criticism and repair Nike’s image………………………………...5 3. Organizational culture related to sustainability…………………………………………..6 a. Impact of organizational culture to sustainability…………………………………….6 b. Building organizational culture………………………………………………………6 4. Product innovation……………………………………………………………………….7 5. Conclusion………………………………………………………………………………..8 6. Recommendation…………………………………………………………………………8 References list……………………………………………………………………………10 Executive summary Management sustainability is the responsibility of organizations to ensure their operations give economic, social and environmental value while maintaining the resources required for future generation. Sustainability is a part of business strategy today and it can bring competitive advantages for companies if it is well considered. Nike is the world leading company in shoes and sport equipment industry. It was established in 1964 and located near Oregon, United States. This report will discuss, analyse and evaluate how Nike company uses planning and organizing functions to maximize its benefits from sustainability. It will start with how Nike repair its negative reputation of sweatshop in its factories in developing countries, and then look at how it...
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...Globalisation NIKE – just do it Introduction Nike, Inc. is an incorporated company that designs, develops and markets worldwide athletic footwear, apparel, equipment and accessories. Nike is the biggest seller of athletic footwear and athletic apparel in the world and creates designs for men, women and children. Nike employs both traditional and non-traditional distribution channels in almost 200 countries with primary market regions in the United States, Europe, Asia Pacific, and the Americas. Nike has some 20,000 retailers worldwide including Nike factory stores, Nike stores, Nike Towns, Cole Haan stores and Web sites which sell Nike's sports and leisure products. Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding, and subsidiaries including Cole Haan, Hurley International and Converse. Nike accounts for 33% of the global market share in the athletic footwear industry. Nike sponsors many high profile athletes and sports teams around the world with the highly recognized trademarks of Just do it (www.nike.co.uk). GLOBALISATION: Globalisation is defined as the micro- phenomenon where there are a free flow of capital efficiency, technology and other factors of production which promote world welfare in its strides. (Nande and Dias, 2007.,p.2) KEY DRIVERS OF GLOBLISATION: there are three main factors which motivate the globalisation of markets and production which are explained as under: Falling barriers to trade...
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...Nike doing business in Indonesia Firm Profile Indonesia is a difficult entrant country environment for corporations to do business in which have constraints like: child labor, low wages, mandatory overtime, and education. Low wages are beneficial for Nike; on the same token the constraints like child labor, unfair work conditions, and mandatory overtime can harm the world renowned brands repetition. The media has painted negative picture of Nike, because productivity of shoes and other athletic apparel comes with the cost of unethical work conditions and labor practices. Arguments have been made that the effort of Nike outsourcing it’s manufacturing to factories in Indonesia, is the wrong choice. Furthermore, Nike has a social responsibility to maintain a satisfactory standard in the facilities where its products are manufactured. Condoning mandatory overtime is unethical. Importance should be placed on upholding the dignity of its workers. We will determine if doing business in Indonesia is a decision that Nike should maintain, due to the negative back lash that they receive in the United States from the Media. Along with indicating what is the best strategy should be applied for doing business in Indonesia. Operation The name Nike is the Greek goddess of victory (Ballinger, 1997) .Nike Corporation was originated by Phillip Knight an athlete from Beaverton Oregon. Knight in his beginning started importing shoes from Japan in efforts to compete with athletic companies...
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...Nike in India MKW 3444 (Assignment 1) TABLE OF CONTENTS Table of Contents Page 2 Executive Summary Page 3 1 Introduction Page 4 2 Economic Environment Page 5 3 Cultural Environment Page 7 4 Political Environment Page 9 5 Conclusion Page 11 6 References Page 12 EXECUTIVE SUMMARY The following essay interrogates Nike, Inc., in the Indian market. The context of the paper lies within the framework of an environmental analysis for the groundwork of a future marketing plan. The central argument is that; (A) the economic environment offers an overall attractive outlook, (B) the cultural environment requires Nike, Inc., to change their core product portfolio while continuously learning to customize and localise to the needs of the Indian consumer, (C) The political environment does not have a substantial risk impact in both its historical and current outlook, and the government is heavily involved in reforms that promote foreign direct investment. The extent of the analysis highlights relevant international marketing issues that Nike, Inc., faces in India in the context of country attractiveness, market segmentation, market positioning, and the marketing strategy in the context of the four P’s. 1 INTRODUCTION The aim of this essay is to select a consumer product and country market and undertake an in-depth and extensive environmental analysis as groundwork for a marketing plan. The selected consumer product will...
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...5 3 Cultural Environment Page 7 4 Political Environment Page 9 5 Conclusion Page 11 6 References Page 12 EXECUTIVE SUMMARY The following essay interrogates Nike, Inc., in the Indian market. The context of the paper lies within the framework of an environmental analysis for the groundwork of a future marketing plan. The central argument is that; (A) the economic environment offers an overall attractive outlook, (B) the cultural environment requires Nike, Inc., to change their core product portfolio while continuously learning to customize and localise to the needs of the Indian consumer, (C) The political environment does not have a substantial risk impact in both its historical and current outlook, and the government is heavily involved in reforms that promote foreign direct investment. The extent of the analysis highlights relevant international marketing issues that Nike, Inc., faces in India in the context of country attractiveness, market segmentation, market positioning, and the marketing strategy in the context of the four P’s. 1 INTRODUCTION The aim of this essay is to select a consumer product and country market and undertake an in-depth and extensive environmental analysis as groundwork for a marketing plan. The selected consumer product will be sports apparel by Nike, Inc., while the selected target market is India. Currently, more than half of the Fortune 500 companies are involved in some form of outsourcing operation to India, with the...
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...Marketing Strategy Alex Banderas National American University Apple Inc. Apple, a top earning technological company ears billions yearly with its famous Ipad, IPhone, and MacBook sales. But what is Apple’s Marketing Strategy? Why are they so successful? The IPhone Maker has made it its mission to satisfy all of its customers and providing the very best money can buy, But how do they earn peoples trust to the point where customers all over the world will camp outside their legendary stores for a new release? The answer is advertising/Communications. It is estimated that Apple spent nearly $97.5 Million just to advertise one particular product, the iPhone in 2008. The following year, 2009, Apple spent $149.6 million and $173.3 Million in 2010. This shouldn't come as too much of a surprise since Apple tends to be more selective with its marketing efforts and gets lots of extra publicity from product placements. Apple focuses on nationwide publications with the largest reach and actually has an employee who "helps provide products" to be "used by stars in movies [and] TV shows." Apples products range from the popular IPhone to the very expensive MacBook air/pro. The consumer base knows that when they purchase a product from Apple that their money is going to be well spent, and satisfaction is always guaranteed. Packaging, Branding, and Logos also have a purpose in convincing the consumer to purchase, a plain white box with beautiful dimensions and a nice logo will perceive...
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...increasingly difficult. Globalization has caused marketers to research different countries, creeds, and cultures to make unique marketing strategies. Globalization isn’t the future of our economy, it’s the now. Advances in technology have made the world a much smaller place. With access to new markets many companies are venturing into uncharted territory in search for profit. Though its sounds great there are many precautions to take before a company finds a new market. There are barriers to entry: most common among many are tariffs, quotas, and sociocultural variances. Tariffs are taxes put on imports from other countries. The effect of a tariff is to raise the price of the imported product; it makes imported goods more expensive so that people are more likely to purchase domestic products. Quotas are limits on the amount of goods that can be imported. Putting a quota on a good creates a shortage, which causes the price of the good to rise and make the imported goods less attractive for buyers. This encourages people to buy domestic products, rather than foreign goods. Sociocultural differences in religious beliefs or practices, basic cultural assumptions and/or patterned behavior, language, idiom, body language and assumptions about social strata are all among potential trade barriers. Companies like McDonalds, Nike, and Apple are dominating the market with their precise marketing strategies. Let’s take a look at each of these companies and asses how they all master foreign marketing...
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...Nike and Adidas Strategies Joyce Powell DR. Jean Fonkoua Bus 508 May 28, 2015 Nike and Adidas Strategies Compare and contrast the promotional strategies used by two different companies for a similar product within the category that you selected. The main purpose of this paper is to compare and contrast the various marketing, by Nike and Adidas, two of the world’s best sports companies. Nike and Adidas are involved in major athletic apparel. According toDermesropian, Drage, Grigaite and Lopez (2004,p.15) Nike focus on innovation and emphasis on their research and development department in order to be profitable in the long run and they do their best to produce footwear, apparel and athletic equipment that reduce or eliminate injury, help in athletic performance and maximize comfort. Nike operation in the USA, Asia Pacific, Europe, Middle East, Africa and the American regions trying to reach as many customers as possible. Nike business level strategy is a combination of the best cost provider and broad differentiation strategy, but more emphasis is put on the best cost provider strategy. They believe and confide heavily on strategic outsourcing and most of their products are manufactured outside the United States. One of the main reasons behind their success following the cost leadership strategy is their extensive network structure that allows them to cancel their alliance with any company that fails to maintain their standards. The team member work very closely...
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...Mo Subject: Current Advertising Campaign Analysis of Nike, Inc. The purpose of the report is to analyze the current advertising campaign of Nike, Inc. Furthermore, this report helps answer what type of advertisement the Nike uses, who Nike's target audience is, and how effective Nike's advertising campaign is. This report recognizes that advertising strategy, which emphasizes communication, lifestyle, and star effect plays a very large part in Nike’s overall success of advertising campaign. The research in this report will provide useful information in obtaining a depth understanding of the advertising campaign of Nike, Inc. While the report researches a variety of advertising campaign and effectively targeted populations in the market, it cannot analyze each aspect in the advertising campaign. Therefore the report will focus on advertising strategy. Due to lack of data of recent years, the report will pay attention to the financial performance from 2005 to 2009. Using the information in the report may help understanding of current market strategies, which will in turn help the development of future market strategies. Current Advertising Campaign Analysis of Nike, Inc. Prepared for Mr. Lee WRD 203-013 Instructor 1318 Patterson Office Tower Lexington, KY 40506 Prepared by Yuhui Mo 261 Simpson Ave Lexington, KY 40504 8 November 2013 TABLE OF CONTENTS INTRODUCTION 1 ADVERTISING STRATEGY 1 Focus On Communication 1 Convey Life Style To Audience...
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...companies I researched last week. Both Nike and A.O. Smith are trying to a find competitive edges to stay ahead of their competitors, and remain number one against their competition. Riorden is trying to do the same thing. They are trying to implement a tracking system that will track and manage raw material, and finished products across all plants. This will reduce their inventory costs, which in return can make their prices more attractive and cheaper for their customers. This could give them a competitive edge against their competitors. A.O. Smith is trying to create a world class supply chain that has the capability to deliver their boilers and heaters in a time efficient manner to the more than 60 countries in which they operate. This will give them the global advantage of being able to sell their products all across the world, which in return will make them a much bigger company, and increase profits. Nike also is constantly trying find ways to stay current and ahead of their competition. Nike has implemented a manufacturing index, which allows their organization to take a comprehensive look at their factories total performance, and the techniques those contract factories are using to achieve sustainability (Nike, 2012). Nike’s manufacturing index is a very effective assessment tool as it allow Nike to “elevates labor and environmental performance alongside traditional supply chain measures of quality, cost and on-time delivery” (Nike, 2012, para 4). All three of these...
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...NIKE Alex Jimenez March 31, 2015 MG-201-08C Principles of Management Term project Organization case study Organizational Mission, Values, Customers and Competitors Mission Statement * Our company Nike aims towards sport fans. * Individuals such as Athletes * Values from the company are sponsorships to promote Nike. * Nike is strictly based on sports industries such as Football, Basketball, Baseball, etc. History of Nike * Nike was founded in 1964 as Blue Ribbon sports for the Japanese. * It officially became Nike became in 1971 Inc. * The company started of with $ 1,500.00 dollars from the bank. * Founded by Bill Bowerman * The Nike swoosh logo was created by Carolyn Davidson. ( was given over $640,000 dollars in stocks). * Nike’s first campaign was launched in 1988. * Michael Jordan help Nike elevate in fame and Financially. Nike Customers * Athletes who play professional Basketball, Baseball, Football, Soccer, Boxing, and etc. * Media and society * Young Teenagers (14-19) * Urban society’s Competitors * Reebok * Jordan’s * Pumas * Adidas * Converse Organizational Environments and Culture * Our Environmental change does not affect us financially, Nike manufactures product for any weather. Our company is general to our consumers, which means that our environmental change is stable to Nike. Because the fact is that Nike commits to its consumers needs and wants. * General...
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...NIKE From Sweatshops to Leadership HRM 522 June 12, 2011 Global businesses can sometimes be difficult due to the different cultures. Not all cultures carry the same value, law and ethical standard. Nike is an international brand that has many retail accounts in over 160 countries. Being an international company can cause business ethical and legal issues. Integrity is important and sometimes a challenge when a corporation must respond to criticism or hold back on certain company details. Nike dealt with criticism from right activist, media, and face labor rights violations. However, over a period of time and after making some important adjustments; Nike is working on improving its company image. Nike used traditional advertising methods to broadcast its product. Nike public relations tactics dealt with the wage policy, visiting campuses on universities, personal letters, corporate responsibility and using celebrities as spoke person for its product. Nike launch campaigns regarding child labor, low and non- existent wages. Nike believes that the U.S dollars were meaningless because the cost of living was different in other countries. Nike held press conferences for newspaper staff at colleges. These were ways for Nike to make proactive efforts to address the concerns of activists protesting against their products. Nike made a few mistakes in handling the negative publicity. Three...
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...Repositioning Paper Abstract This paper will identify the marketing plan for repositioning a new product line being discussed at Nike, Inc. called Nike Adventures. Nike Adventures is an entire line made with kids and their families in mind to get them active and mobile. Introduction Obesity in children is starting to become headline news in the United States. Therefore, Nike has decided to incorporate the NikeGO Program with a line designed with primarily children in mind. This paper will examine the marketing segments being targeted for this new line. The goal is to ensure that the proper marketing strategies are initiated and that a strong market does exist to carry this line to its full growth potential. In this paper, marketing mix strategies, possible tax ramifications, elements of the consumer decision-making and post-purchase process are discussed, and a criteria and timetable for measuring the success of the repositioning strategy is developed. Discussion: What is Nike Adventures? Provided by the official website of NikeGO Program, the program and this new line of products called Nike Adventures have the same, simple mission: “Get kids moving and give them the means to do it. We've all seen the statistics - some very disturbing. No matter the causes -- school funding cuts, lack of phys-ed programs, shortage of facilities, computers and the Internet, or plain old apathy - the unvarnished truth is...
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