Exploring Nike's Global Marketing Strategies and Athlete Endorsements

2. Overview of Presentation • International Sport Marketing Issues • History of Nike • Athlete Representation/Endorsement Deals • Event Sponsorship • Nike as a company in the global age • Examples of Nike Advertisements • Why is this important to sport managers? • Concluding Remarks

3. International Sport Marketing • Marketing has shifted in the last 20 years from country-specific to more international. • Sport marketing follows the same trends. • World is becoming smaller—more competition, need to find new markets for products. • Nike is an excellent example of shifting priorities from the domestic market to a more global approach.

4. History of Nike

5. Overview • Founded by Bill Bowerman and Phil Knight • Been in the industry for over 30 years • World’s most competitive sports and fitness company • Nike employees over 23,000 people

6. The Nike “Swoosh” • Created by graphic design student at Portland State University in 1971 • Received $35 for the design and unknown amount of stock in Nike • Now one of most famous logos and trademarks in the world

7. Nike International • In 1972, Canada becomes Nike’s first foreign market • In 1974, Nike begins operating in Australia • In 1977, Nike sets up manufacturing factories in Taiwan and Korea • Much controversy over fair worker’s pay • Sweatshop controversy continues today

8. Nike International • 1978-Nike sells shoes in South America and distribution outlets are set up in Europe • Revenues exceed $71 million dollars

9. Nike International • Nike’s World Headquarters are in Beaverton Oregon. • Opened in 1979

10. Nike International • 1980- Nike begins negotiations with China to set up production of shoes in this country • Nike becomes the number one selling shoe in Canada • 1981-Nike International Ltd. Is formed to service a growing market of up to 40 countries

11. Nike International • 1984- Global market reaches $158 million • 1985- Michael Jordan is signed and becomes the biggest endorser in Nike history • 1987- Nike is introduced in the USSR • 1991- International Revenue tops $860 million

12. Nike International • 1994- A new Eastern European region based in Vienna is formed at the $138 million Laakdal Customer Service Center • Shane Warne, Australia's preeminent cricket superstar, signs with Nike • NIKE assumes distribution rights in Japan in Korea • Nike signs 10 members of Brazil's soccer team along with Italy's, China's and U.S.'s soccer team. • In Latin America, Chile and Argentina join the NIKE-owned family

13. Nike Today • Internationally recognized company with annual revenue in 2004 of almost $13.7 billion dollars. • Owns subsidiaries such as Starter, Nike Golf, Converse, and others. • Has some sort of presence in almost every country in the world. • Endorsement deals for professional athletes reached over $500 million in 2004, as well as spending on advertising reaching $213 million in 2004.

14. Athlete Endorsements

15. Tiger Woods Shaquille O'Neal Lance Armstrong Michael Jordan Alex Rodriguez David Beckham Michael Vick Derek Jeter LeBron James Kobe Bryant Top Ten Wealthiest Athletes

16. Steve Prefontaine • First major track star to wear Nike • Blue Ribbon Tiger Shoes • At the time held several records, including the 2,000 and 10,000 meter dash • Known simply as “Pre” • Died in a car crash in 1975

17. Michael Jordan • Signed with Nike in 1984 • Has own brand of Nike gear, The Jordan Brand • Number 3 pick in NBA Draft • One of the most well known athletes in the world

18. LeBronJames • Signed with Nike Prior to being drafted into the NBA • Seven year deal worth $90 million • Jordan’s First Contract in 1984 2.5 Million for 5 years • Won 2003-04 NBA Rookie of the Year

19. Mia Hamm • Regarded as one of the best Women’s Soccer players to ever have lived • Member of U.S. National Team, played in Olympics from 1996-2004, founding member of WUSA • Mia Hamm Foundation and other charitable works, including excellent role model for female athletes.

20. lanceARMSTRONG • liveSTRONG campaign raised millions • Goal was $5 million • Over $9.4 million in grants • 50 Million wristbands sold as of May 2005 • Eight time Tour de France champion

21. Signed with Nike in 1996, giving up his amateur status Signed his first deal for a 5 years at $40 million. New Contract is $90 million Considered the best male athlete in the world Tiger Woods

22. Serena Williams • Signed a lifetime deal in 2003 • Worth just over $60 Million • Was one of the first women signed to Nike Goddess (now Nike Women) • Consistently one of the top Women’s tennis players in the world

23. FreddyAdu • Signed a $1.5 Millioncontract in 2003 • Was age 13 when he first signed • Plays for DC United of Major League Soccer. • Considered one of the best young players in the world.

24. MichaelVick • Signed with Nike in 2004 • Endorses NikePro Sphere • $62 Million over 6 years • Quarterback for the Atlanta Falcons of the NFL, top QB.

25. Maria Sharapova • Signed a $55 Million deal • Contract is for 5 years and started in 2003, with a 3 year extension • Highest contract for any women athlete • 2004 Wimbledon champion

26. KobeBryant • Signed contract with Nike in 2003 for 5 years and $40 Million • Nike signed him even though he was going through a trial for rape • However he has not been in a television advertisement since, for any of his corporate deals • Nike has stood behind Kobe, as they do all their athletes

27. Derek Jeter signed with Nike’s Jordan Brand 10 Year $100 million deal A-Rod signed to Nike Has been with Nike for over 14 years Gets about $1 million a year Alex Rodriguez & Derek Jeter

28. Yang Yang • Chinese Olympic Speedskater • Was China’s first Winter Olympic Games champion in 2002 • Earned gold in the 500m event, as well as the 1000m. Also finished 4th in the 1500m by a tenth of a second

29. Fernando Torres • Member of Spanish National Football team • One of the most sought after European football players of his generation. • Currently plays for At. Madrid in addition to for Spain

30. Yelena Slesarenko • Russian Women’s High Jumper • Won Gold at the 2004 Athens Olympics • Broke former Olympic Record with a jump of 2.06m • Also is current World Indoor Champion

31. Robinho • Dubbed the successor to Pele, the great Brazilian soccer player • Hails from Brazil, plays for Real Madrid, alongside David Beckham • Only 20 years old and his signing attracted international attention from many European football clubs

32. Wayne Rooney • Football player for Manchester United FC • Member of English National Team, plays forward position • Nicknamed “Roonaldo” because of his playmaking ability

33. Hicham El Guerrouj • Olympic distance runner—Morocco • Athens 2004 Olympic Games: Won Gold in 5000m and 1500m races • Multi-time world champion in distance events, great humanitarian

34. Other Internationally Endorsed Athletes • Asafa Powell-Jamaican Runner, 2004 Olympic Games • Shiqiang Guo—Member, Chinese National Basketball team • Thomas Voeckler—Cyclist • Sanya Richards—Track and Field, University of Texas • Diego de Cunha—Football Player--Brazil • Ronaldo—Football Player—Manchester United

35. Sponsorship/League Endorsements

36. Sponsorship in the United States • Professional Sport • Colleges and Universities • Youth and Community Programs

37. Major Professional Sport • Major League Baseball • Majestic • National Football League • adidas-Solomon/ Reebok • National Basketball Association • adidas-Solomon/ Reebok • National Hockey League • adidas-Solomon/ Reebok

38. Colleges and Universities

39. Youth & Community • Nike Foundation • Community Giving

40. International Sponsorship • Events and Leagues • Soccer • Manchester United

41. Events & Leagues • International Inline Skating Association Marathon Tour • Ironman Competitions • Canadian Hockey Association • Nike Tour (golf)

42. Soccer • Nike ‘arrived’ on the soccer by sponsoring the 1994 Word Cup • Continue to look up to adidas, but gaining ground • Sponsors numerous national teams • Sponsors Manchester United

43. Manchester United • Widely regarded as the “world’s most famous football club” • Nike entered a $553 million, 13-year sponsorship deal in 2000 • United’s fortunes have waned since then

44. Other Causes • AIDS.com • Livestrong

45. Ambush Tactics • 2002 Boston Marathon • Olympics • 1992 • 1996

46. Nike as a Sport Marketing Case Study

47. Nike in the Overseas Marketplace • Appeal of Nike brand overseas • Running • Football (soccer) • Other brands that Nike owns • Advertising • Marketing Campaigns • Athlete Representation—using local stars to appeal to international customers

48. Nike as an Global Powerhouse • Over half of business is in international markets. • Growing number of subsidiaries (Bauer Hockey, Starter, etc.) • Footwear market-share leader in Europe • Success in international events (Olympics, World Cup, Tour De France) • Product placement

49. Global Competition • Adidas-Solomon/Reebok • Merger in 2005 to attack Nike’s position in the domestic and international marketplace • FILA • K-Swiss • Puma • New Balance • Other smaller brands in Europe and around the world

50. Evolution of Product Lines • Footwear • Clothing/Merchandise • Subsidiary product lines • Cole Haan • Starter • Nike Golf • Converse • Bauer NIKE Hockey • Hurley Surfing