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BRANDING STRATEGIES of NIKE. VIDEO 1. SUBMITTED BY UNITED MINDS. Group Members Nandita Saha Sayan Chakraborty Harsh Saini Arindam Nag Rahul Bhattacharya Raj Roy Subhasis Ishar. THE NIKE VISION. “To bring inspiration and innovation to every athlete in the world”.
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BRANDING STRATEGIES of NIKE
SUBMITTEDBYUNITED MINDS Group Members • NanditaSaha • SayanChakraborty • Harsh Saini • Arindam Nag • Rahul Bhattacharya • Raj Roy • SubhasisIshar
THE NIKE VISION “To bring inspiration and innovation to every athlete in the world” • THE NIKE MISSION “To continue to offer quality products with increasing growth in the industry and expanding globally”
HISTORY OF NIKE Back ground : • 1950-1959 is the time when Nike breathed its first breath, it inhaled the sprit of two men. • Two visionary men who pioneered a revolution in athletic footwear that redefined the industry. • Bill Bowerman and Phil Knight are founder of the company.
CONTINUED… • Bill Bowerman was a nationally respected track and field coach at the University of Oregon, who was constantly seeking ways to give his athletes a competitive advantage. • Phil Knight was a talented middle-distance runner from Portland, who enrolled at Oregon in the fall of 1955 and competed for Bowerman’s track program. • Phil knight tried to contact with Onitsuka Co. in Kobe, Japan, and persuaded the manufacturer of Tiger shoes to make Knight a distributor of Tiger running shoes in the United States.
1960-1969 • Blue ribbon sports formed in January 1964. • placed their first order of 300 pairs of shoes in January 1964 • Jeff johnson being hired to manage the growing requirement of blue ribbon sports.
1970-1979 • Johnson created the first product brochures, print ads and marketing materials, and even shot the photographs for the company’s catalogues. • Johnson came up with new design of shoes and conjured up the name ‘NIKE’ in 1971. • the relationship between BRS and Onitsuka was falling apart. Knight and Bowerman were ready to make the jump from being a footwear distributor to designing and manufacturing their own brand of athletic shoes. • Steve Prefontaine is a renown athlete who endorse and elevate the new Nike line.
1980-1989 • Nike entered at 1980 with huge success of Nike Air Technology in 1979. • In 1980 Nike completed its IPO and became a publicly traded company. • In the mid 1980, Nike slipped from its market leader position because of the company had badly miscalculated on the aerobics boom giving the competitors an edge to become the market leader. • Fortunately, the debut of a new signature shoe for an NBA rookie by the name of Michael Jordan in 1985 helped bolster Nike’s bottom line. • In 1987 Nike built on its momentum from the ‘Revolution’ campaign by launching a broad yet empowering series of ads with the tagline “Just do it.”
1990-1999 • Nike entered the 1990s by christening its beautiful world headquarters in suburban Portland, Oregon. • In 1994, Nike signed several individual players from what would be the World Cup-winning Brazilian National Team. In 1995, Nike signed the entire team, and began designing the team’s distinctive uniform • In 1996, Nike Golf landed a vastly talented but as-yet-unproven young golfer named Eldrick “Tiger” Woods for a reported $5 million per year.
2000-PRESENT • The 2002 “Secret Tournament” campaign was Nike’s first truly integrated, global marketing effort. • Nike continues to seek new and innovative ways to develop superior athletic products, and creative methods to communicate directly with the consumers. • In June 2011, NIKE, Inc. announced an increase to its fiscal 2015 revenue target to a new range of $28-30 billion, up from its previous target of $27 billion announced in May 2010. • President and CEO Mark Parker said: “our company based on a core commitment to innovation. That’s how we stay opportunistic, serve the athlete, reward our shareholders, and continue to lead our industry.”
FOOTWEAR • Running • Basketball • Soccer • Sport-inspired urban shoes • Children’s shoes • PERFORMANCE EQUIPMENTS • Bags • Socks • Sport Balls • Eyewear • Timepieces • Electronic Devices • Bats • Gloves • Protective Equipment
MISCELLANEOUS PRODUCTS • Apparels and Accessories • Athletic Bags • Offers Apparels for Licensed Sports Team
BRAND AWARENESS BRAND ASSOCIATION PERCEIVED QUALITY BRAND LOYALTY
BRAND ASSOCIATION • Nike has consistently associated the brand with famous personalities from the sports world. • Celebrities which has similar personalities, such as achievers, winners, determinant, accomplishment, oriented and out-of-the-box. For example, Michael Jordan in basketball, John McEnroe in tennis, Christiano Ronaldo in football and Rory Mcllroy in Golf. • Nike Also associated with top events of countries, like American Basketball League, Women’s Half Marathon, Euro 2012, Summer Olympics 2012, 2013 Billboard Music Awards, etc. • Also associates itself with top clubs of various sports, like the Indian Cricket Team, South Korea Baseball Team, Basketball Teams (Brazil, Canada, China, Spain, U.S.), Football Clubs (Arsenal, Manchester City, Manchester United, Barcelona), Football Teams (Brazil, England, Greece, France, The Netherlands, Portugal).
BRAND AWARENESS • Recognized everywhere by their trademark “Swoosh” logo. • Over 700 Nike stores worldwide. • Communicated its Brand Association through TV ads that was a hit in their times and is still gaining recognition worldwide. For example, Nike’s Jordan Air Ad instantly gained worldwide recognition and increased sales dramatically. • The ‘Just Do It’ trademark has long been one of the core components of Nike’s brand. • The ‘Just Do It’ Campaign allowed Nike to further increase its share of the domestic sports shoe business from 18% to 43% worldwide from 1988 to 1998. • Presence in all major social media platforms, such as over 14 million “likes” in Facebook and over 2 million followers in Twitter.
PERCEIVED QUALITY • One of the most important sources of Nike’s brand equity is its Perceived Quality. • Perceived Quality not only among the public, but also among the athletes. • Most of their market was the public that used their shoes for normal walking, but still Nike designed their shoes according to the high standards of professional competition. • Listened to athletes and designed shoes that satisfied their needs for high performance and durability. • Seeing a professional athlete wearing a Nike pair of shoes in a major sports event authenticated the quality perception in the minds of the consumers about the brand. • Nike also didn’t follow the trends of other shoe-makers like Reebok who used garments in the fabrication of their shoes instead of leather.
BRAND LOYALTY • Brand Credibility as a brand which has established over the years through their commitment to delivering what they promise. • Good relationship with consumers, which started in the beginning of the company when Philip Knights used to speak to athletes using their languages and to listen to their feedback. • Knights also met athletes on tracks in high schools and colleges. • During expansion, Nike used “Finger on the Pulse” strategy where some of the Nike employees hit the streets finding out what is in the minds of their consumers and following their needs and tracking their brand perception. • Created a web site, NikePlus.com, that connects runners around the world. This web site tracks a runner’s data and allows a runner to join with other runners all over the world to improve their times.
Adidas and Nike are both companies selling roughly identical product lines, but the way of selling is different in both. • The Adidas store offers a fairly traditional sporting goods store layout—apparel in the front and a wall of shoes in the back. Nike takes an alternative approach, dividing the store by sport. In each section—basketball, soccer, running, etc.—customers are surrounded by Nike’s vision of a particular sport and all of the products it sells to make that vision a reality. • Through Nike, every product is presented on its own, with its own story with product line for different sports. • One of Adidas biggest Marketing schemes was to merge with Reebok to compete with the powerhouse Nike. • The Germany-based global power announced a $3.8 billion deal to buy Canton, Mass.-based Reebok, uniting two of the world's top sports companies and creating a much stronger challenge to Nike, particularly on the global giant's home turf: the prime North American market that accounts for about half of the category's sales worldwide
NIKEiD • NIKEiD is a sub brand which allows customers to design and personalize their Nike footwear, and is available online at NIKEiD.com. • The NIKEID brand also has boutique stores in New York City, London, Paris, Osaka, and Berlin. It has been reported that the NIKEID business has more than tripled since 2004. Presently, there are over 3,000,000 unique visitors at NIKEiD.com per month.
THE AIR JORDAN STORY Air Jordan's The Documentary - https://www.youtube.com/watch?v=OUbx3urv8cE
EVOLUTION OF AIR JORDAN • The first original Air Jordan – Air Jordan I was launched in the year 1985. • Nike endorsed the star athlete of the year Michael Jordan for a whopping $2.5 million. • In 1985, Nike started producing a line of sneakers called the Air Jordan, which were the most expensive basketball sneakers at that time. • Jordan 1 was an instant success and it recorded over $130 million worth of sales it its first year alone. • The unique designs, flashy colors, brilliant marketing and success of Michael Jordan on the basketball court all contributed to the success of Air Jordan sneakers. • Even though Michael Jordan retired way back in 2003, Air Jordan sneakers continue to be widely sought after and worn by everyone who appreciates quality.
AIR JORDAN SUCCESS • Preceding the initial Air Jordan 1 (I), basketball shoes were typically white, and Michael, as well as his shoes, were frowned upon for rocking color ways that did not go along with NBA rules. • As each new AJ model released, the brand grew even more, and each year, something special was created. • Michael came together with some unique designers, the most famous being Tinker Hatfield, who designed a wide range of AJ silhouettes including the Air Jordan 3 (III) through Air Jordan 15 (XV) and many more. • In 2005, Jordan Brand got creative, as they started releasing fusion models. • The company continues to keep old fans, all the while drawing in new ones. • The combination of their hybrids, Team Jordans, and retroing of classic color ways from the AJ numbered series has created a formula for success that is unmatched.
The most innovative company in 2013 • It’s a global brand of $24 billion • 2012 NIKE launched two new products- Fuel Band (electronic bracelet), Fly knit Racer (environmental friendly shoes)
REASONS FOR SUCCESS OF NIKE • Social media is used in a best possible way to make the consumer and athletes a part of the process in creation • They do not follow any finish or end line as the process of innovations never stops
GROWTH • Nike’s apparel sales grew at a CAGR of 12.3% during fiscal 2010-2012, which was higher than the growth rate seen for Adidas, Puma and Asics. • It is expected Nike’s market share in the global sports apparel market to grow from 4.9% in 2012 to 6.5% in 2019 in the long run; however, increased competition from local and niche players as well as counterfeit products could hinder Nike’s growth.
APPAREL SALES OF SOME OF THE LEADING PLAYERS IN THE MARKET (IN MILLIONS)
SUSTAINABILITY • More competition for the natural resources which are scare affects the availability and cost of the inputs to make the products • Greenhouse gas and increase in the costs of the energy has led to increase in the pressure on the traditional models of manufacturing and transportation of products • Workers are influenced with continuous disparity in financial and other opportunities • Growth of the middle class and urbanization has created demands for new products and services • Emerging rules and regulations in the context of use of material, labor practices and few other issues had shaped the environment of the business.
META-TRENDS • In 2007 an assignment was taking along with sustainability of few of the meta-trends • The meta-trends have become more relevant as they have defined and shaped the strategy of the company. • The meta-trends were very helpful in high lightening and understand the areas of the value chain of the company and the business process which have the most potential for innovation
VALUE CHAIN • Plan- the opportunities, the resources and the values. The core of the business of what Nike is and what they believe in. • Design- Function, superior performance, minimal impact. Not only they focus on creating products which are faster, stronger and lighter but the also focus in creating products which are smarter. • Make- More than 900 factories are in contact to make the products of Nike as they require people, tools, materials, knowledge and skill and coordination among all • Move- the products the shipped to all parts of the world. All ways of transport such as trucks, trains, airplanes and boats are used for distribution.
CONTINUED… • Sell- Nike operates more than 750 retails all across the world. Not only the products are sold at convenient places but the consumers also have a rewarding experience • Use- A different starts to take place when an individual bring home the products of Nike • Reuse- running tracks, new shoes, clothes ,sport courts and many other innovative ways to reuse the product and minimize the impact on the environment
FUTURE POLICIES • Nike branded Manchester United jersey Kit for 2014-15 season. • Nike Run+ (advance module) application for Google Android App Store. • Nike + Challenge App for iStore. • Nike decided that they don’t want to associate with the controversial stars. It dropped Lance Armstrong in October 2012 after charges of widespread doping on his cycling teams.
