Dr. Sean Jasso
May 24, 2012
Marketing Plan Stage 2
- Bill Bowerman and Phillip Knight found the company as Blue Ribbon Sports in 1964 - Changed the name to Nike in 1978
- Nike Headquarter is located in Beaverton Oregon
- Global marketer of footwear, apparel, equipment and accessory products - Offers footwear and products to sports such as tennis,golf, baseball, football, bicycling, volleyball, wrestling, cheerleading, aquatic activities, hiking, outdoor activities and other athletic and recreational activities -Nike is the number 1 distributor of althletic footwear bringing in 20 Billion in 2011 -materials Nike flywire,
Current Marketing Situation:
- Nike athletic footwear line segments to anyone around the world who is interested in buying sport shoes and plays sports. -Nike is currently doing well as it is the world’s largest supplier of athletic footwear, owning 50% of its 20 billion on the market.
-Nike athletic footwear line targets specifically to athletes around the world because of the utility that comes with the shoe. -An athlete is more likely to buy an sports shoe than who don’t exercise. -Nike targets these customers by agreements between Nike and athletic teams, college teams to promote the basketball shoe out to a large audience.
-Nike athletic footwear line has position themselves as the number 1 distributor of athletic shoes. -Nike delivers high quality basketball shoes and saw their revenue go up every year with 20.9 billion dollars last year.
-Logo and their Just do it campaign because it has a long history and is recognized all over the world. - Nike is the strongest brand that's out there.
- Nike brand is exposed to almost everywhere around the world which puts their brand in customers mind. - Advertising is another strength because such as Nike newsletters and brochures offer good examples of multiaudience communication forms. -These materials are available to the media, consumers, retailers, athletes, activists, and community organizations, both through direct mail and at public relations events in which Nike participates. - Nike is also an Innovative product.
- Nike Flywire shoe line offers althletes to have lighter shoes but still play at a high level. This product has long stitches, containing strong, lightweight fibers, would allow fibers to support the foot in key points, instead of using layers of material that support the whole foot. - The Distribution Center for Nike is very advanced
- It has its own retail and online stores that customers often use. - These distribution channels grant customers the convenience that few stores can match - Because of the ubiquity of the stores, customers can easily buy their desired products in a timely fashion. -Nike is in the global market, so it distributes its athletic footwear products around the world.
- Nike is depended on third party manufacturers
- In order to minimize costs, Nike outsource their footwear production to third party suppliers in Vietnam, China, Argentina, Brazil, India, and Mexico. -It has little control of the product quality because they produce their shoes in foreign manufacturers - Nike athletic shoes are generally more expensive than its competitors around $80-140.
- There is a growth opportunity in India
- Indian footwear market grew by 9.2% in 2009 to reach a value of $4,401.1 million - There is still room to grow for Nike as the global footwear market grew by 2.6% in 2009 to reach a value of $196.3 billion. - The performance of the market is forecast to accelerate to the value of $230.8 billion by 2014, representing an increase of 17.6% over 2009 -Nike Athletic Footwear can still grow as new stars in NBA, NFL, MLB, and other sports stars rises and will eventually have their own shoe and promote the brand all over the world