Nike was founded in 1960 in Oregon by Phil Knight and Bowerman. It has grown from a small startup to a global brand covering the US and international markets. Nike focuses on performance and quality in its products while also prioritizing fashion. It builds brand equity through endorsements of top athletes, which helps drive sales and loyalty. Nike tailors its marketing and sponsorships to different cultural markets around the world. Sponsorships are vital to Nike's success in building its initial customer base and occupying mind share. However, some aggressive marketing messages were not well received in all markets. Fashion is also an important part of Nike's brand identity and product line.
1. NIKE
Just Do IT !
Group 4
Name Roll No:
Shouvik Das FT13170
Ishani Sircar FT13224
Arjun Choudhry FT13312
Namita Joshi FT13351
Vikrant Vijay
Mahajan FT13389
Ruchika Salhotra FT13466
2. Introduction
• Est. in 1960 in Oregon.
• Phil Knight and Bowerman - Founder
• Nike has gone through many changes
• Started small and now has covered the U.S.
and International market
3. Brand Image
• Conducting Press conferences & issuing
press release
• Outlining the steps taken to ensure
compliance with code of conduct
• Establishing & posting progress on
improving labor conditions
• Responding to each enquiry.
• Should take into account business impact
& desires of stakeholders
4. Brand Equity
• Nike sells feelings or emotions.
• An aggressive and performance oriented
brand
• Has always given priority to performance
and durability along with fashion
• Always provides higher quality with higher
price.
• One of major source is professional athletes
and signs top players of every sport.
5. Resonance with Customers
• United States: High level Resonance.
− Appreciated innovation and performance of the product.
− Influenced by the top athletes endorsements.
− Occupied the mind space of the customers through mass advertising.
− Consumer Research to gauge customer response and plan accordingly.
• European Markets: Medium level Resonance
− Developed cultural, geographical and personal relations and credibility
among European consumers.
− Re-casted its brand image with regional tastes and cultural aspects.
− Sponsored local clubs and national teams to gain grass root level relevance.
• Asian Markets: Low-Medium level Resonance
− Local heroes were brand ambassadors with mass advertising.
− Implemented global labor standards to recover from Image crisis.
− Created CRD to reflect its community involvement.
6. Sponsorships & Endorsements
• Vital to Nike’s business. Attributes to early success of Nike.
• Helped in building the initial customer base for Nike.
• Gives a personality to brand – Michael Jordon personified
Nike’s basketball shoes with his stellar performance.
• Occupied a brand space in consumer mind: Nike means
Performance
• Success of the brand ambassadors helped in the growth of
both brand value (return on financial investments) and
customer value (customer loyalty).
• These helped Nike reclaim its market share and emerge as
market leader in US.
7. Customer’s perceptions to Sponsorships
&Endorsements
• Consumers believe the brand has greater value. E.g. John
McEnroe support to shoes led to sale of 1.5 million pairs in US
and credibility among European consumers.
• Consumers believe the athletes' success is attributed to the
brands they use. E.g. Sales crossed $ 3 billion when Michael
Jordan-Chicago Bulls won the first of their six championships.
• Consumers don’t prefer aggressive brands. E.g. ‘Play Hard,
Die Old’ was not well received. No offerings in middle
market was perceived as aggressive, expensive American
brand.
• Consumer’s attitude change over generations. E.g. Young
generation felt Nike as cool brand while Older generation felt
Adidas and Reebok to be better choice.
8. Fashion @ NIKE
• It is challenged to respond to a market
demand for fashionable footwear and
apparel.
• Fashion is an integral part of production.
• The company also opened first Nike
Goddess store to sell fashionable
sportswear for women.
• Fashion is important along with
9. Defensive Strategy
• More emphasize on female consumers.
• Service differentiation
• Apparel and equipment customization
• Product differentiation
• Follow latest trend and innovate
• Can also offer low price range products