The increase in the number of companies and the competitive prices that the companies offer has given rise to a competitive situation in the companies (Borden, 1984). Marketing activities in companies are framed based on the ‘marketing mix’ of the company (Borden, 1984). The marketing mix framework consists of 7Ps considering the modern scenario (Booms and Bitner, 1981, cited in Rafiq and Ahmed, 1995). This is an improvement over the original marketing mix of 12 elements (Borden, 1965, cited in Rafiq and Ahmed, 1995). The marketing mix of a company plays a very crucial role in its success. This essay discusses how Nike, Inc. has become a successful brand through the proper use of the marketing mix. Nike, Inc.
Nike. Inc. was pioneered by two visionaries Bill Bowerman and Phil Knight (Nike, Inc. a). Bill Bowerman was a famous track and field coach at the University of Oregon and he designed shoes that gave athletes a competitive advantage (Nike, Inc. a). When he put forth his ideas, none of the companies were interested in it (Nike, Inc. a). Phil Knight proposed that the quality of running shoes manufactured in Japan could compete with that of a famous German brand (Nike, Inc. a). This initiated Phil Knight and Bill Bowman becoming partners in distributing the Tiger shoes manufactured by Onitsuka Co. in the United States(Nike, Inc. a).
Phil Knight and Bill Bowman formed the Blue Ribbon Sports (BRS) and soon Bowman began improvising the Tiger shoes and he started testing them on the athletes (Nike, Inc. a). The name Nike was framed by Jeff Johnson, a full time employee at BRS in 1971 and he also designed many of Nike’s early shoes (Nike, Inc. a). In the meantime the relation between BRS and Onitsuka began to deteriorate and Phil and Knight wanted to create their own brand of athletic shoes, leading to the creation of the brand mark of the ‘Swoosh’ (Nike, Inc. a). The next level of progress came in with the outsole that had waffle type nubs for traction but were lighter than traditional shoes (Nike, Inc. a). In the 1980s, Nike became a publicly traded company but also had a fall from the position of industry leader because of production miscalculation but, the debut of signature shoe for an NBA rookie Michael Jordan helped bolster Nike’s bottom line (Nike, Inc. a). In 1987s Nike started a major product and marketing campaign for regaining their position and in 1989, Nike’s cross training business exploded and by end of that decade Nike regained position as the industry leader (Nike, Inc. a). During 1990s, Nike set up its world headquarters in suburban Portland, Oregano and Nike signed up with many athletes for endorsements during the (Nike, Inc. a). Today, the company seeks innovative ways to communicate with its consumers and strives to satisfy them (Nike, Inc. a). THE MARKETING MIX OF NIKE, INC.
“The perfect product must provide value for a customer” (The Chartered Institute of Marketing, 2009, p.4). The goods or services that a company produces must be with regard to the needs and the wants of the consumers and the company must be clear if they are providing what the consumers want from them (The Chartered Institute of Marketing, 2009). “The most significant determinant variable for the demand for sports goods, its growth, and size, are: fashion, the use of value of the sports good, its market price, households’ professions and revenues, the population’s use of the equipment(the ‘equipment rate’), and the sports good’s life cycle.” (Andreff, Szymański, 2006, p.27). From the beginning Nike has produced its goods in accordance with the preference of the consumers, the changing trends in fashion and the buying power of their target market and innovation has been one of their key motives (Nike, Inc. a). “In May 2006, Nike launched the Nike + (NikePlus) platform, a collaboration between Nike and Apple, consisting of an Apple iPod music player, a wireless device to connect the music player to...