Nike Promotion Essay

other important factor in economy is the maturing market in athletic horseshoes. There is similarly a growing adverse demographic intensify in the marketplace brought about by the sweatshop expose that Nike has non pass over yet. Effects to Nikes growth atomic number 18 also affected not exclusively by domestic economy but also by the external economy. The continued weak Euro and Asian recession could potenti completelyy injury Nikes supranational sales and growth. Nikes native chromosomal mutations harvest-feast line is seen as inferior quality compared to competitors and is hurting sales and betray go through. CUSTOMERSIn 1998, Americans spent $38 billion to buy over 1. 1 billion pairs of shoes. fresh Goods Manufacturers Association revealed that athletic footwear acts up almost 35% of all footwear purchases. The existing domestic sedulousness focus is on unconcerned and facilitateable shoes. Demand is up for the brown shoe casual footwear with a comfortable and rugged design. This is because of the increase number of workplaces allowing casual curtail codes. Multinational guests account for a self-aggrandising opus of Nikes sales. In 1995, Nikes international operations accounted for 36. 6 of its total revenues. The comp each believes that demands from international markets will increase in future. Nike must cater to a large portion of the new generation that demands the latest trends and styles. Nike should take into account the ever-changing US demographics due to the rising proportion of Hispanics, Asians, and African Americans. These groups have unlike preferences that Nike should be able to satisfy. Nike should identify the next generation of loyal customers and forget for their needs. COMPETITIONCompetition is very fierce due to the number of companies competing for sales. lot of m adepty goes to merchandise and promotions using various convey to reach the teenage demographic group of consumers who spend the most m mavin y on Nikes products. Growth is slowing down in the athletic footwear industry. scarcely new markets are emerging with high growth rates. These markets include extreme sports market and the corporate merchandise market. Nikes global market deal was an impressive 30. 4% in 1998. The closest competitor, Adidas, held 15. 5% of the market fate while Reebok held 11. 2%.The re importanting competitors, including Fila, Timberland, Asics, Converse, and New Balance, among others, each hold slightly 3-5% of the remaining market partake in. MARKETING ASPECTS OBJECTIVES Nikebiz. com stated that Nikes explosive charge description is Through the adoption of business practices Nike is committed to securing intergenerational quality of life, restoring environment and increasing value for our customers, shareholders and business partners. Nike shows passion for their company, products, and athletes. They are determined to provide consumers with comfort and assurance.They also find ways to inn ovate and create. They adhere to their five brand principles public figurely inspire, innovate, focus, connect, and care. Another Nikes objective is to be the worlds track sports and Fitness Company. Nikes mission statement is similar to a vision statement and is potentially a weakness. The mission identifies the sports and fitness industry business they are in, it does not specify as to what products and services they provide. The mission statement does not mention distribution channels and customers.However, it portrays managements beliefs and the desire to be number one and remain in the leading position in sports and fitness shoe and apparel industry. STRATEGIES Corporate Strategies. The old two decades saw a change in economy from convertible to flexible. Having a strict corporate organization used to be the rule, now it is common to have a flexible organization that uses subcontracting. The main reason Nike succeeded in competing in the footwear industry for a persistent time is because they remain flexible in an unpredictable market by subcontracting overseas in countries with low labor-cost.Another reason for Nikes military group in competition is their product dissimilariation. Aside from athletic shoes, Nikes product line now offers a broad range of clothing, equipment and accessories. TACTICS Nikes distinctive tactical maneuvers are found in the area of marketing, specifically in consumer brand awareness and brand power. Nikes catch phrases like, near Do It, and symbols like the Nike Swoosh, are reminders of the Nike empire. This tactic is effective because it could not be easily replicated and it offers value or benefit to consumers.Nike is becoming a part of American and world culture, the brand power becomes more difficult to replicate. The earmark and a slogan serves as the companys finger soft touchs. Nike is able to gain the unique identity due because of its financial strength. Nike reaches millions of consumers by means of large -scale marketing campaigns. The public benefits from the strength of Nikes image when they make a purchase. Consumers much associate Nike image with quality products. By associating star athletes and motivational slogans like, retributory Do It, consumers identify their purchases with the prospect of achieving greatness.This image they create forms a tactic that competing companies can not easily duplicate by simply ameliorate their products. PRODUCT Nike sells a huge variety of products, including shoes for running, basketball, cross training, Women and children. only of which are currently its tallness-selling product categories. Nike also sells shoes for outdoor activities such(prenominal) as tennis, golf, soccer, baseball, football, bicycling, volleyball, wrestling, cheerleading, aquatic activities, auto racing and other athletic and volunteer(a) uses.Nike began selling active sports apparel in 1979 as well as athletic bags and accessory items. The company sells a line of performance equipment low the Nike brand name, such as sport balls, timepieces, eyewear, skates, bats and other equipment. They also sell a line of dress and casual footwear and accessories for men, women and children infra the brand name Cole Haan. The company markets headwear under the brand name Sports Specialties, through Nike Team Sports, Inc. They also sell small amounts of various ductile products to other manufacturers through Nike IHM, Inc.Bauer Nike Hockey Inc. manufactures and distributes ice skates, skate blades, in-roller skates, protective gear, field hockey sticks and hockey jerseys and accessories under the Bauer and Nike brand names Pricing Strategies Nike uses vertical integration in pricing wherein they own participants at differing channel levels or follow in more than one channel level operations. This is also an go about to control costs and influence pricing practices. PLACE Distribution channels and policy. Should additional channels be added, why? Nike sells its product to about 20,000 sell accounts in the U.S. and in approximately 110 countries around the world. Nike sells its products in international markets through independent distributors, licensees and subsidiaries. Independent distributors has little or no muging press for local adaptation because the 4Ps of marketing are managed by distributors. PROMOTION Nike has been one of the top retail industries for quite along time. This is because they sell quality products, customer loyalty, but most of all, its great marketing techniques. Nike has a number of storied athletes to create a great deal of attention to their products.Nike has signed the top athletes in many different sports such as the Brazilian association football Team (especially Ronaldino, Renaldo, and Roberto Carlos), Lebron James and Jermane ONeal for basketball, Lance Armstrong for cycling, and Tiger Woods for Golf. Sponsoring of events is another(prenominal) great promotional technique for Nike. It bring s attention Nikes products. Web sites are a great promotional tool as they cover these events. such(prenominal) events include Hoop It Up and The Golden West Invitational. Nike also personalizes websites. They make the websites exclusively for a sport such as nikebasketball. om , nikefootball. com , and nikegolf. com Marketing scheme Nikes marketing schema is an important component of the companys success. Nike is positioned as a premium-brand, selling well-designed and expensive products. Nike lures customers with a marketing strategy centering around a brand image which is attained by distinctive logo and the denote slogan Just do it. 35 Nike promotes its products by sponsorship agreements with repute athletes, professional teams and college athletic teams. However, Nikes marketing mix contains many elements besides promotion.These are summarised below. Advertising From 1972 to 1982, Nike relied almost exclusively on print advertising in highly vertical publications including Track and Field News. near of the early advertising was focused on a new shoe release, essentially outlining the benefits of the running, basketball or tennis shoe. In 1976, the company leased its maiden outside ad procedure, John Brown and Partners, who created what many make out Nikes eldest brand advertising in 1977. A print ad with the tagline There is no finish line featured a lone offset printing on a rural road and became an sec classic.The success of this simple ad inspired Nike to create a wit version that launched the companys poster business. In 1982, Nike aired its first national television ads, created by newly formed ad agency Wieden+Kennedy, during the New York Marathon. This would mark the beginning of a remarkably successful union between Nike and W+K that remains intact today. The Cannes Advertising feast has named Nike its advertiser of the year on two separate occasions, the first and only company to receive that honor twice (1994, 2003). 36 Nike also has earned the Emmy dirty money for best commercial twice since the award was first created in the 1990s. The first was for The Morning After, a satirical look at what a runner might face on the morning of January 1, 2000 if every dire prophecy about Y2K came to fruition. 37 The second Emmy for advertising earned by Nike was for a 2002 espy called Move, which featured a series of famous and everyday athletes in a stream of athletic pursuits. 38In addition to garnering awards, Nike advertising has generated its fair share of Controversy. RANDOM The short version of this is Nike makes itself pop up everywhere, so that its well known. It associates with people that most of its consumers want to emulate (such as michael jordan, in the 1990s) and creates products that will appeal to as considerable of an audience as possible while using those celebrities its consumers want as fool (eg, michael jordan and the Air Jordan shoe line).This is just the marketing side The business as a who le creates fast, easy assembly methods that allow it to use brazen-faced labor in southeast asia and elsewhere to get cheap products (around 10 dollars) and sell them at extremely high prices (about 150 dollars). With nike, most of what youre buying is image. Nike, Inc. is a marketer of sports apparel and athletic shoes. The American manufacturer, through its marketing strategy which rests on a favourable brand image, has evolved into a large multinational enterprise In keeping with the brand image is its association with the distinctive logo and its advertising slogan, Just do it. In order to maintain and sustain this image, the company makes huge investments in advertising and brand promotion. Its promotional activities include agreements for product sponsorship with professional athletic teams, celebrity athletes, and numerous college athletic teams. Nike is involved in the production of goods for a wide variety of sports, competing with every sports fashion brand in existence. Because of the absence of any single brand that rivals the products of Nike, the company has no direct competitors, with the exception of German company Adidas. This has helped popularize the brand worldwide in all areas of sport and sports fashion. When Nike first began as Blue Ribbon Sports they only sold one product (running shoes) and because of this they had to make the target audience large. However, because of the wide-range of products that Nike sells they now have different target-audiences for each product. For young people, Nike sponsors popular athletes that their customers want to emulate.