Nike Case study

Topics: Athletic shoe, Nike, Inc., Brand Pages: 13 (8580 words) Published: November 3, 2014

Nike background
The Nike athletic machine began as a small distributing outfit located in the trunkof Phil Knights car. From these rather inauspicious beginnings, Knights brainchild grew to become the shoe and athletic company that would come to define many aspects of popular culture and myriad varieties of cool. Nike emanated from two sources: Bill Bowermans quest for lighter, more durable racing shoes for his Oregon runners, and Knights search for a way to make a living without having to give up his love of athletics. Bowerman coached track at the University of Oregon where Phil Knight ran in 1959. Bowermans desire for better quality running shoes clearly influenced Knight in his search for a marketingstrategy. Between them, the seed of the most influential sporting company grew. The story goes like this: while getting his MBA at Stanford in the early 60s, Knight took a class with Frank Shallenberger. The semester-long project was to devise as mall business, including a marketing plan. Synthesizing Bowermans attention to quality running shoes and the burgeoning opinion that high-quality/low cost products could be produced in Japan and shipped to the U.S. for distribution, comKnight found his market niche. Shallenberger thought the idea interesting, but certainly no business jackpot. Nothing more became of Knights project.Cut to 1963. Phil Knight traveled to Japan on a world-tour, filled withthe wanderlust of young men seeking a way to delay the inevitable call ofprofessional life. Seemingly on a whim, Knight scheduled an interview with a Japanese running shoe manufacturer, Tiger--a subsidiary of the Onitsuka Company. Presenting himself as the representative of an American distributor interested in selling Tiger shoes to American runners, Knight told the businessmen of his interest in their product. Blue Ribbon Sports--the name Knight thought of moments after being asked who he represented--was born. The Tiger executives liked what they heard and Knight placed his first order for Tigers soon thereafter. By 1964, Knight had sold $8,000 worth of Tigers and placed an order for more. Coach Bowerman and Knight worked together, but ended up hiring a full-timesalesman, Jeff Johnson. After cresting $1 million in sales and riding the wave ofthe success, Knight et. al. devised the Nike name and trademark Swoosh in 1971.By the late 70s, Blue Ribbon Sports officially became Nike and went from $10million to $270 million in sales. Katz (1994) describes the success via Nikes placement within the matrix of the fitness revolution: the idea of exercise and game-playing ceased to be something the average American did for fun, instead Americans turned to working out as a cultural signifier of status. Clearly, the circumstances surrounding the shift are not this simple; it is one of the aims of this project to discover other generators of popular attention to health. If Nike didnt start the fitness revolution, Knight says, "We were at least right there. And we sure rode it for one hell of a ride" Nike has been developing its marketing mix consisting of the four P’s i.e. product, price, place and promotion. Thus Nike has soughted out the mix that will best help it achieve its goals of maximum profitability. Product: Nike takes into consideration various aspects of its products as it is in a product or consumer market. Thus it needs to have extensive range of products to withstand its competition. Nike provides features, designs, various brands, packaging along with some extra features like warranties and after sales service. This all aspects can be included in the product analysis. Nike has various products as well as brands that cater to different market segments which varies according to requirement of particular segments as well as individuals. Also they offer customized designs of their products where in customer designs their product as per their requirements. Eg: Nike provides customization of their shoe range on their site
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