Transcript Slide 1

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”
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.”
PRODUCTS OFFERED BY NIKE
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
MARKETING & BRANDING
STRATEGIES OF NIKE
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-ofthe-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
• VIDEO 2
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.
INNOVATION AND MARKET
OPERATIONS
 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)
Company
Fiscal 2010
Fiscal 2011
Fiscal 2012
CAGR (20102012)
$7,023
$7,484
$8,211
8.1%
$5,026
$5,513
$6,333
12.3%
$1,229
$1,352
$1,504
10.6%
Adidas (includes
Reebok)
Nike
Puma
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
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
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
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.
• VIDEO 3
JUST DO IT!!!