§ Preview – Because Nike’s success largely depends on its shrewd marketing strategy, I will be explaining to you the importance of marketing to Nike and introducing what marketing strategy Nike is currently deploying. B) BODY
1. Marketing is very important to its viability and profitability a. Since Nike is a consumer product company, it must respond to market changes through aggressive marketing. * If fail to anticipate accurately and respond in timely manner to market changes, Nike could experience material adverse effects on sales and profitability. b. Nike must stay domestically and globally competitive to other large companies such as Puma or Addidas. c. As a result, Nike takes marketing issues very seriously. Nike has been increasingly investing into marketing. (Refer to chart) * Nike experienced a substantial increase in marketing investment in the FY of 07-08, largely because of the Olympic Games 2008. * Demand creation in FY 2009 is $2,351.4 mil., increased 2% in compare with FY 08 2. Nike is successfully deploying the favorable brand image strategy a. Favorable brand image
* Associates with a distinctive logo and advertising slogan “Just do it” * Advertise itself as a high quality and expensive product company. * Promotion: Nike contracts with high profile athletes and actively sponsors sport events to promote its brand. For example: * Michael Jordan: in 2007, the Jordan brand, now a separate Nike subsidiary with its own building, grossed about $800 million. * Tiger Woods: in 2000, Nike agreed to a multi-year deal with Woods worth a reported $105...