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Nike PowerPoint Presentation

Nike

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Nike

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Presentation Transcript

  1. Nike “Just Do It”

  2. The Beginnings • 1962 – Phil Knight & Blue Ribbon Sports • 1964 – Bill Bowerman (U of Oregon) joined him to design running shoes • Nike – “winged Greek Goddess” & the “fat check mark” was a compromise (cost $35) • Steve Prefontaine (runner) was the first endorsed athlete – against the establishment • Boston Marathon – first event (Jon Anderson won in a pair of Nikes)

  3. Formative Years • 1974 – Waffle trainer • Brand choice of mass market influenced by top athletes • 1980 – surpassed Aidias as the #1 shoe company with 50% market share • Running was the key – aerobics became popular and Reebok reigned • Focus on innovation, males and serious athletes rather than style and females – lost share to Reebok

  4. Transitions • Became more marketing oriented – consumer focus rather than product focus • Shoes, colors, clothes, athletes, logos and TV advertising • Up until now, only advertised in peer running journals • Weiden & Kennedy – Air Max “revolution in motion”

  5. The Reign of Air Jordan • Focus on basketball – signed rookie Michael Jordan b/c Nike offered more than Aidias • Nike sold $100 million Air Jordans in the first year

  6. Just Do It • Reebok paid too little attention to performance so Nike regained market share • 1988 – Just Do It $20 million month long blitz (12 TV spots) urged Americans to participate in sports • Attitude of self empowerment through sports – both celebrity and non celebrity endorsers • By 1990 – Sales $2 billion

  7. Just Do It • EKINS – sports loving employees who hit the streets to disseminate Nike information • Brand Strength Monitor – tracked consumer perceptions • 1991 – Sales $3 billion; by 1993 Nike athletes include 265 basketball players, 275 NFL football players, 290 baseball players and college coaches and players • Emphasis on top line performance wear

  8. The Image Crisis • Labor practices • Asia plants – unsafe working conditions, uncompensated overtime, underage workers • Boycotts, letters of protest and lawsuits • Nike implemented changes as a result • Ubiquity of the swoosh • Too many swooshes; too aggressive corporate philosophy

  9. The Swoosh • Downplay logo displays • Nike – all small letters • Separate business units for Jordan, All Conditions Gear (ACG) and NikeGolf Brands • Nike Alpha Project – most technologically advanced project

  10. The Here and Now • Caught behind the curve for “action sports” and “brown shoes” • Not perceived as “cool” • Revitalize ACG • Now on the upswing for revenue and growth in soccer and apparel • Tigers Woods & Tour Accuracy Ball

  11. Challenges • What is Nike’s Brand Image and sources of brand equity? • What should Nike do to become “cool” again? • How should Nike attempt to reach young consumers?