Nike

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Q1. How would you characterize Nike’s brand image and sources of brand equity in the United State?

Nike has been successful in building a brand image with product features as follows:

Performance
From the early day, Nike has learnt the consumers’ need by listening to the need of athletes, sharing their true passion for running. In doing so, Nike has created a reputation as a provider of high quality running shoes designed especially for athlete. Also, high-tech image has always been associated with Nike products

Innovation
The Nike brands always associate with innovation. For example, in 1987, Nike developed an innovative new cushioning technology that was use with running shoes. In 1988, Nike introduced “Air” technology and it fast created a big advantage over its competitors. Today, innovation always associate with Nike products and it is still strength of Nike.

Product name associates with athlete name:
Air Jordan is a good example for this concept. Nike has been successful in creating relevance among product name, athlete name, the brand, and “Air” technology.

Global Brand with memorable logo
97% Awareness and recognition for Nike brand and logo contribute substantially to the brand image and brand equity.

Good effort in aerobics and fashion segment
In order to compete with Reebok in the US market, Nike had adjusted its marketing strategy toward female group who have tendency of fashion-conscious in aerobic market in the 1980s.

Effective campaigns: The “Revolution in Motion” and “Just Do It” The Revolution campaign was a powerful brand statement and a massive handshake from Nike to the customers. The campaign successfully communicates to a wide range of people about product technology, Nike’s soul and a deep.

“Just Do It” in 1998, with $20 million month-long blitz, did a good job in urging Americans to participate more active in sport  create demand for Nike cross-training shoes that targets to athletes who played more than one sport  Nike focused in functional features of product

Endorsement and Sponsorship with runner, tennis player, and baseball in America -Grass-roots marketing with local sport events
-Sponsorships of athletes in track, tennis and baseball
- “Trickle-down” marketing

Brand extension
In 1993, Nike decided to put more emphasis on top of line performance wear –uniform and apparel worn in actual competition. These new initiatives did provide halo effect to other apparel line and be consistent with broadening the Nike brand meaning to encompass “performance in sport” and not just shoes

Brand relevance and coherence
Nike did a good job in maintaining the coherence and consistency of brand. In endorsement and sponsorship, Nike just selected top-athletes that match with Nike attributes. For example, in 1990s Nike did drop many low profile endorsers and sponsorships.

Another example is the time when Nike entered Europe market. Because Nike distributors controlled advertising in their local markets, each continued to develop their own interpretation of the Nike brand and identity. When Nike was soon aware of this problem, the company has decided to take greater control of advertising and products strategies in order to keep consistency and coherence for the brand.

Q2. How have Nike’s efforts to become a global corporation affect its sources of brand equity and brand image in the United State, Europe and Asia?

Nike had tried to extend its US reputation of performance and innovation market into Europe market. However, Nike had to face with a lot of obstacle such as competition in Europe market, consumer behavior, and Europe customer perception toward Nike brand:

Nike and competition in Europe market.
Player Target marketMKT activities Remark
Adidas 35+ generation Grassroots marketing
Amateur sponsorship
EndorsementBranding with loyalty
NikeHigh-end segment
Young 12-18, 20+Top athletes, popular sports, endorsement...
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