By Mark LLanos|
Advertising and Public Relations |
Best known for their “Just do it” branding, Nike was founded in 1955 by an athlete named Phil Knight who ran track for Bill Bowerman. Originally starting as a footwear distributor for a company known today as “ASICS”, the founders of the company decided to take a different approach to their business. When they launched their Nike line, they realized that having an athlete endorse their shoes would be a great way to reach out to the world. With the assistance of an organization by the name of Wieden & Kenny, they developed the “Evolution” campaign that focused on their commitment to runners and starting what we now know them for, their innovation. In the 1980’s Nike was again taking sports by leaps and bounds by introducing their Nike Air line of shoes endorsing Michael Jordan. This paved the road once again for a future line that would continue far after the athlete has left basketball, known as the “Jumpman” brand created by none other than Jordan himself. By 2000, Nike has endorsed great athletes such as Lance Armstrong, Tiger Woods, Kobe Bryant & Lebron James. In 2006 Nike revolutionized the industry again by launching a campaign called Nike Plus. The program offered ways for consumers to combine sports with music. Teaming up once again with their original Advertising agency Wieden + Kennedy, they plan on taking their technology to another level. Introduction
So what can Nike do to attract the youth market in a competitive industry? What sets them apart from their competitors that will allow them to continue to be the industry innovators? In order to answer the problem, it’s important to understand their positioning and branding. Its current competitors are Adidas, New Balance, and an upcoming company named Under Armour. Nike has already established itself as a household name; they are also partnered with another strong industry leader named Apple. Together, Nike and Apple have launched the Nike Plus line that offers a unique combination of a strong brand image, technology, music & running that makes the product unmatched. Their target demographics vary, but the message was the same for each segments. Nike’s interests for avid runners of all age groups, markets their high quality shoes, clothes and equipment at affordable prices. Examples of these are their Nike Free’s that mimic bare foot running, combined with their Nike Fuel Band that tracks the distance of how much you ran. They also target the casuals and new to running consumers by introducing events such as “The 10k Human Race” which is an international race held in 25 cities World-wide as of 8/31/2008. What these target consumers share is their passion for sports. Adding the concept of wireless communication and technology will allow each and every consumer in their target market to be connected with Nike. In a time when most consumers have a cell phone, it’s important for Nike to focus on Youth. Youth is their energy, Sport is their passion. By understanding the current economic times, and adapting to the youthful consumers, their fitness style, financial situation, and technological suaveness. Nike can target their broad target market, not only through demographics, but by also using other segmentations such as behavioral through the use of brand loyalty.
Nike’s overall growth objectives for 2015, is to achieve sustainable, profitable long term growth across its global portfolio of brands. Their meeting their headquarters in Beaverton OR on June 28th, 2011, announced their target of $28-$30 billion. This is up from their previous target of $27 billion back in May 2010. They have also created a goal of generating another $12 billion cash flow from operations from 2011 through 2015 fiscal year. Nike’s Brand overview states their strategy to maintain their ability to be authentic,...