Section: 1.1: Summary
1.2: Historical goals in Marketing
1.3: History and development of the company 2. Marketing activities
Section: 2.1: Innovation
2.3: Marketing mix
2.4: Targeting strategy
3. Recommendation and conclusion
Section 3.1: Recommendation
Section 4.1: References
Section 1 – Introduction
1.1. In this essay I will examine Nike marketing strategy, from using technology and cheap Asian labour, to gaining widespread celebrity endorsement also asses their marketing activity such as SWOT and marketing mix. 1.2. The name Nike was taken from winged ‘Goddess of Victory’ in ancient Greek mythology. Athlete runner Phil Knight and nationally respected track and field coach at the University of Oregon, Bill Bowerman, were inspired by the myth and re-named their small sportswear company called Blue Ribbon Sports to Nike in 1971. (Partlow 2003)The initial marketing plan was easy. Bowerman as a technical innovator joined Onisuka Tiger shoe Company in Japan, known today as ASICs, for sale in the U.S, and began the marketing process of selling the first running shoes named ‘Cortez’. Phil Knight come to be the traveling salesman and drove his car from university to university and sold the company’s shoes to runners and athletes living around the country. Jeff Johnson became the very first full-time sales person operated in the Nike retail store and took care of marketing materials such as printing brochures and creating catalogues. Nike athletic footwear dominated the market in 1980s and appeared on feet of everyone, from kids to Olympic runners. Since then, business has evolved into a great multinational enterprise and Nike has become one of the most recognizable companies in the world. (Von Borries 2004, p.19) 1.3 Nike strategy was combined by serious technology with the new popular taste for casual wear and comfort followed by strong product logo the “Swoosh”. (Goldman & Papson 1998 p.4) The company has been known to invest heavily in brand promotion and advertisements such as providing athletic footwear and apparel to celebrities (Michael Jordan, Lebron James, Tiger Woods, and Mia Hamm etc.) Nike has the reputation of selling quality footwear and apparel for good price.
Section 2 – Marketing activities
2.1. There are many reasons why Nike as a company leads the world-wide market followed by Adidas 30% behind. (NikeTown London stats board 2012) The first and the primary focus are on innovation and being up to date with the newest technology. Bill Bowerman’s first innovation was made by using waffle toaster and rubber. The name ‘Cortez’ became recognizable and as a results of its light weight also favourable for competitive athletes. By the 1977 a NASA engineer Frank Rudy came up with an idea of putting air into Nike insole and after years of research Nike Air Max 1 was born which eventually be the best seller in 1994. 2.2. The best way to get a good look at any company’s marketing strategies and position in the market is through the SWOT analysis. Strengths, Weaknesses, Opportunities and Threats. (Jobber 2007; Kotler 2009).
One of the huge Nike’s strength is the commitment to innovation and constant research with the best athletes in the world. Nike employs more than 30 000 people worldwide also some of the greatest engineers with solid innovation experience which gives them advantage over the competition companies like Adidas, Reebok and Puma. Quality standards and low cost manufacturing is another Nike’s strength. Majority of Nike manufacturing is located in Asia and South America due...