Nike Business Analysis
IV. Marketing strategy
As a leading athletic brand in the world, much of Nike’s success can be attributed to its shrewd marketing strategy. As reported in its 2009-2010 Annual report, because NIKE is a consumer products company, “the relative popularity of various sports and fitness activities and changing design trends affect the demand for our products”. Therefore, Nike must “respond to trends and shifts in consumer preferences by adjusting the mix of existing product offerings, developing new products, styles and categories, and influencing sports and fitness preferences through aggressive marketing”. In fiscal year of 2009, Nike’s demand creation expense, which consists of advertising and promotion expenses, including costs of endorsement contracts, grossed about $2,351.4 (million dollars). In comparison with fiscal year of 2008, even the company had taken actions to reduce spending across nearly all demand creation related activities, Nike’s demand creation expense increased 3% during fiscal 2009.
One of the most visible marketing strategies of Nike is favorable brand image, which is associated with a distinctive logo and the advertising slogan, "Just do it." To help market their products, Nike has successfully developed and is currently deploying a promotional approach in which Nike “contract[s] with prominent and influential athletes, coaches, teams, colleges and sports leagues to endorse our brands and use our products, and they “actively sponsor sporting events and clinics”. For example, Nike has a number of famous athletes that serve as brand ambassadors such as:
-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 million, extending an earlier multi-million dollar deal originated in 1996.
Researchers have discovered the Marketing mix 4Ps of Nike as following: * Products: Nike offers
As a leading athletic brand in the world, much of Nike’s success can be attributed to its shrewd marketing strategy. As reported in its 2009-2010 Annual report, because NIKE is a consumer products company, “the relative popularity of various sports and fitness activities and changing design trends affect the demand for our products”. Therefore, Nike must “respond to trends and shifts in consumer preferences by adjusting the mix of existing product offerings, developing new products, styles and categories, and influencing sports and fitness preferences through aggressive marketing”. In fiscal year of 2009, Nike’s demand creation expense, which consists of advertising and promotion expenses, including costs of endorsement contracts, grossed about $2,351.4 (million dollars). In comparison with fiscal year of 2008, even the company had taken actions to reduce spending across nearly all demand creation related activities, Nike’s demand creation expense increased 3% during fiscal 2009.
One of the most visible marketing strategies of Nike is favorable brand image, which is associated with a distinctive logo and the advertising slogan, "Just do it." To help market their products, Nike has successfully developed and is currently deploying a promotional approach in which Nike “contract[s] with prominent and influential athletes, coaches, teams, colleges and sports leagues to endorse our brands and use our products, and they “actively sponsor sporting events and clinics”. For example, Nike has a number of famous athletes that serve as brand ambassadors such as:
-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 million, extending an earlier multi-million dollar deal originated in 1996.
Researchers have discovered the Marketing mix 4Ps of Nike as following: * Products: Nike offers
Bibliography: APA format NIKE Investor Relations (2009). NIKE, Inc. Corporate Responsibility Report FY2007-FY2009.. Beaverton, OR: Nike Inc.. Retrieved from http://www.nikebiz.com/crreport/ NIKE Investor Relations (2009). NIKE, Inc. Annual Report FY2000-FY2010. Beaverton, OR: Nike Inc.. Retrieved from http://media.corporate-ir.net/media_files/irol/10/100529/AnnualReport/nike-sh09-rev2/docs/Nike_2009_10-K.pdf DiCarlo, L. (2010). With Tiger Woods, it 's Nike, Nike everywhere: Star pitches for apparel maker even when hawking other products. Forbes. Retrieved from http://http://www.msnbc.msn.com/id/4554944/ Rovell, D. (2008). CNBC special report: Swoosh! Inside Nike: Michael Jordan continues to score points for footwear giant. CNBC. Retrieved from http://www.msnbc.msn.com/id/23071595/ns/business-cnbc_tv// Cuizon, G. (2009). Audit on Nike 's Marketing Strategies: The 4Ps - Product, Price, Place and Promotion . Suite101. Retrieved from http://corporate-marketing-branding.suite101.com/article.cfm/audit_on_nikes_marketing_strategies