Analysis Of NIKE Internet Marketing

Topics: Nike, Inc., Athletic shoe, Advertising Pages: 6 (1624 words) Published: March 21, 2015

Academic year: 2014/2015
Course: Market research 2
Assignment title: Nike Internet Analysis
Lecturer: Sebastiaan Boussauw

Undersigned declare(s) :
- to be the original author(s) of the attached document;
- to agree with the content of the attached document;

Names: Emmanuel Oni

Date : 12th March 2015


Bill Bowerman and Phil Knight established the American conglomerate Nike on 25th January 1964. Originally the company was called Blue Ribbon Sports, Inc. as a distributer of Japanese running shoes manufacturer, Tiger; a subsidiary of the Onitsuka Company, from the back of Phil Knights car. It opened its first retail store in Santa Monica, California in 1966. It formally became Nike, Inc. on 30th May 1973 and in December 1980 the company went public, with its first listing on the New York Stock Exchange (NYSE). (Hatfield, 2003). The world headquarters are located in Beaverton, Oregon and the EMU (Europe, Middle East and Africa) headquarters is based in Hilversum, The Netherlands. Today Nike is sold in roughly 18,000 retail outlets in the United States alone and in over 140 countries worldwide (Nike, Inc., 2015).

The name Nike (pronounced ni-key) is derived from the Mythological Ancient Greek Goddess of victory also of the same name; she symbolised victorious encounters, and is believed to have overseen many of histories earliest battles. In 1971 Phil Knight asked Advertising student Caroline Davidson to design a logo, which could go on the side of a shoe. She was paid $35 for her creation of the SWOOSH logo. It is said to represent the wing of the goddess, and personifies her spirt, which "inspired the most courageous warriors at the dawn of civilisation". (Hincker, 1997). The ubiquitous 'swoosh' logo and "Just do it" slogan are both registered with the U.S Patent and Trademark Office.

Nike is predominantly involved in the design, development and worldwide marketing of footwear, apparel, equipment and accessory products. (Olsen, 2011). It is said to be one of the world’s foremost provider of athletic shoes and apparel, (Sage, 2008). As well as a principal manufacturer of sporting equipment. As of 2012, Nike had more than 44,000 employees, not including service providers, retailers, shippers and manufacturers. It is reported that by the end of its 2012 fiscal year Nike has amassed profits of over $24.1billion, and in 2014 Nike was valued at $19billion making it the most valuable sports business brand (Ozanian, 2014).

As examined by Herzog, 2003 Nike has approximately 40% control, in the athletic shoe industry, which is one of the major markets in the U.S today. This is almost double its two closest rivals share put together, Reebok at 12% and Adidas at 10%. Nike is the world’s principal shoe company; this is because it’s the world’s most popular brand (McCarthy, 2003).

Mission and Vision

The mission and principles of Nike, Inc. operations and retail stores is completely focused on the athletes it serves and the inspiration and innovation Nike products provide to them. This is clearly evident in their mission statement: “ To bring inspiration and innovation to every athlete* in the world.” *If you have a body, you are an athlete. (Nike, Inc., 2015)

Target Group

The Nike customer has an average age of 25; most likely they either already have an active lifestyle or wish to embark upon one. Nike shoes are predominantly aimed at 15-35 year old males and females, most particularly the fashionable 18-24 year olds with loads of disposable cash. (Markiewicz, 2002). More recently Nike has focused marketing its products towards the wealthy teenage demographic. Nike understands that potential for growth with this market is vast, 12-24 year old young adults are the fastest growing market segment since the baby boom of post World War II (Fusient Media, 2001). As of 2011, there were 56million 10-24 year olds, this number growing...

References: Carton, Sean. (2003). “Applications, Not Ads.” ClickZ Today. [online] Available from: Last accessed 11/03/2015
Hatfield, Stefano
Herzog, Boaz. (2003). “Nike Scores Endorsement Deal with Lakers Kobe Bryant.” The Oregonian. [online] Available from: . Last accessed 09/03/2015
Hincker, Anon
Jackson, Adam. (2001). “Online Advertising: On the Brink of a New Era?” ClickZ Today [online] Available from . Last accessed 11/03/2014

Narisetti, Raju. (1998). “Technology (A Special Report): Pieces of the Puzzle --- New and Improved: Ad experts talk about how their business Will be transformed by technology.” Wall Street Journal.
Nike, Inc. (2015). “Company Profile”. [online] Available from: Last accessed 10/03/14.
Olsen, Andrew. (2011). “Internet Marketing Strategy: Nike Corporation”. [online] Available from: Last accessed 12/03/15
Ozanian, Mike
Sage, Alexandria. (2008). “Nike profit up but shares tumble on U.S. concerns”. [online] Available from: Last accessed 09/03/2015
Silverstar, Inc
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