1. Analysis of Marketing Plan of Nike and Michael Jordan
Former University of Oregon track coach and co-founder of Nike Bill Bowerman
once said: "If you have a body, you are an athlete!" (NikeBiz) This way of thinking
is how Nike conducts every aspect of their business. Every person is a potential
athlete or "consumer". This is a common term when used in the realm of athletics
but when Bill Bowerman said this it was in direct reference to the shoe industry.
From their marketing strategies to their selling philosophies, Nike has developed
one of the most recognizable and demanded name and logo tandems ever.
Nike, which is the Greek Goddess of Victory, was born in 1972 when BRS, Blue
Ribbon Sports, launched its first branded shoe at the U.S. Olympic track and field
trials. A former University of Oregon track team member Phil Knight created Blue
Ribbon Sports. At Oregon, Knight was coached by the legendary Bill Bowerman
and then went on to become and alumni of the Stanford School of Business.
BRS was crafted in 1962 when Knight made a deal with Onitsuka Tiger
Company, a Japanese shoe company, to import their shoe to the United States.
Knight had the idea to sell a low cost shoe with a very high quality. Knight had
high aspirations of taking Adidas out the top spot in the athletic shoe market. In
1964, Bill Bowerman decided to join Knight as a partner at BRS to create a joint
quest to be number one. Bowerman redesigned the Tiger shoes while Knight
acted as the accountant/personal seller and went on the road to sell their newly
crafted sneakers at track meets and local shoe stores. By 1966, Blue Ribbon
Sports opened their first store in Portland, Oregon. Knight and Bowerman
managed the store with the only other employee being a former Stanford runner
Jeff Johnson. (story/chrono, 1) Signing First Endorsers During 1971, BRS caught
a break when a trading company called Nissho Iwai introduced BRS to important
letters of credit. This credit allowed BRS to subcontract its own shoe line and by
1972 it was selling Nike Brand shoes. Over the next decade Nike expanded
almost double its size each year from the previous year. Nike is officially called
Nike in 1978 and has signed on tennis great John McEnroe, New York City
marathon champion Alberto Salazar, women's marathon gold medallist Joan
Beniot, and Olympic track star and gold medallist Carl Lewis. (story/chrono, 1-2)
Also during this time Nike is opening manufacturing plants all over the U.S. Nike
was a household name for most athletes by early 1980's.
Nike's focus was still on track and field and for the most part track athletes were
their target market. One of the first individuals to endorse a Nike product was a
man who exemplified their style and way of conducting business, Steve
Prefontaine. Prefontaine was a household name in the late seventies and has
gone down in history as one of the best American track and field athletes ever.
Prefontaine was a friend of Knight and had been coached by Bowerman at the
University of Oregon. Prefontaine embodied what Nike wanted as its differential
advantage of other companies due to his brash attitude, high talent level, and
cavalier mentality. Nike marketed itself as a new and innovative shoe company
that constantly had the athlete's performance in mind unlike existing companies
who focused on their products appearance and durability. Nike infested their

2. market with bright colors, new styles, and technology information pertaining to
their products. This is why Steve Prefontaine and Nike were a tremendous
tandem in the early years of Nike's existence.
By 1984 Nike had supplanted Adidas as the number one selling running shoe
company in America. But this was not enough for Nike. At this time Nike was
known for its attention to the wants and needs of their market, the individual
runner. The Nike Brand itself, and while Knight and the employees of the
company promoted Nike across the country, the quality, comfort, and design of
the shoe were selling the product already. During the period from 1985-1987,
Nike dropped back down to number two in the running of the shoe market. Sales
had dropped off because the running boom of the late 70's and 80's had begun
to diminish. Nike began to notice and entire market that the company had been
avoiding, everyday athletic activities. These activities were things done by
everyday people and not just the serious athlete. Fortunately for Nike, in 1985
their star was brought to light. A rookie basketball player with amazing talent and
a nice smile fell into their lap, his name is Michael Jordan. (story/chrono, 2)
Michael Jordan As soon as Nike signed Michael Jordan they began to market a
new line of shoes and apparel with the name AIR JORDAN. This was the
beginning of the JORDAN Brand and Jordan's Jumpman23 products. Featured
prominently on each AIR JORDAN product was the Nike insignia, the swoosh,
the product mark which the Jumpman23 and the AIR JORDAN label. Jordan
came to Nike at a time when the marketability of the NBA was increasing. NBA
games were being nationally televised during prime time television hours and
weekends. This gave Nike the perfect platform to develop and market their new
star and the products that he endorsed.
During the first few years Nike introduced Jordan to the public and Jordan
familiarized himself with the American public. Nike ran a series of ads with
Jordan and film director Spike Lee. These ads were aired during prime time
television hours and were solely targeted for pre-teen school students. These
ads displayed an expressed message to "Stay in School."(story/mkg_innov, 1)
The ads presented kids with a national figure that was selling both school and
Nike's products, how could parents deny their children the shoes of such a
virtuous spokesman? Jordan was a figure that children adored, looked up to and
tried to the best of their ability to copy. Nike used this to display a great positive
image for their company and to sell their products. The ads were also the first by
a company that didn't use the usual 3 a.m. sport for public service
announcements. Nike wanted to be a bold marketer; they aimed for the top
promotional sports and developed a pioneering strategy for their industry. Nike
continued to promote Michael Jordan through their ads and Jordan continued to
promote their products.
The introduction of the AIR JORDAN line helped to create new lines of basketball
shoes, including the AIR FORCE and AIR FLIGHT lines of basketball shoes and
apparel. Also, a new innovative technology was a layer of air cushioning in their

3. shoes; this was truly a differential factor for Nike when placed in comparison with
other shoe companies. Nike's sales jumped to over $3 Billion in total. Nike's AIR
JORDAN shoe was the best selling and most popular basketball shoe on the
market. The AIR JORDAN shoe reached a point in the mid-nineties when a small
picture of Michael Jordan at practice wearing different shoes sparked a booming
inquiry all over Chicago. One store alone received over 300 phone calls asking if
they had the shoes in stock. (Katz, 72) The Jordan Empire The market Nike in
which they wanted to target Jordan towards now was the "athlete of any age."
Nike began to produce sizes from infant on up. Nike created commercials that
glorified Jordan and displayed his humbleness. In the commercials Jordan did
things that young and old people alike always dreamed of doing. Most of the
commercials included Jordan soaring through the air, seeming to be hung form
the sky with the chorus, "If I could be like Mike" playing in the background.
Jordan would then drop out of the sky and dunk the basketball. In one
commercial aimed towards younger children, Jordan played the Warner Brothers
Loony Toons Characters. For an older generation Nike created a commercial
where Jordan is on a dimmed basketball court and a booming voice comes in
and says, "What if my name weren't in lights? Can you imagine that? . . I can?"
This commercial marketed Jordan as human being and not the untouchable
being that he is sometimes projected to be; this was aimed to help the average
person relate to Jordan. (Katz, 72).
As much as Nike markets Michael Jordan, Michael Jordan markets himself and
the products that he represents. Jordan is always a well-dressed, well-mannered,
good natured, and respectable individual. It is a welcomed change from the
tattoo covered and pierced "bad boys" that other companies have for their
spokesman. All of these things draw people to Michael Jordan as a person, but
his talent level is what makes Michael Jordan a worldwide icon. Michael Jordan
plays at a competitive level of professional athletics that has almost never been
matched in any professional sport. This talent alone sells, but when the talent is
selling a product, the product is going to sell even better. The more Jordan
played in front of national audience the more Nike was marketed. Jordan was a
human marketing piece. He was and still is a walking, talking billboard that just
happens to be a spokesman for Nike. Jordan can get as much air time and
publicity as he desires just due to the sheer fact that the demand for him and his
products is so great. Everyone wants to see what Jordan is wearing and doing at
all times. To the target market, Jordan is everything they hope to be and by
buying the product he endorses the consumer feels that they can come that
much closer to their hero.
The Jordan Brand Even though Michael Jordan has retired from basketball his
success continues. In 1997, Jordan announced the formation of the new
signature Jordan brand. The Jordan Brand is a separate business unit from the
Nike Brand; it will be able to explode product avenues that would have not
necessarily have been explored under Nike's umbrella. (media/n_jocroconcept,
1-2) Unlike most companies, Jordan Brand doesn't have to worry as much about

4. marketing strategies or who their target market will be. Jordan Brand can use
secondary research from Nike and have most of their information developed for
them.
The Jordan Brand not only offers the popular AIR JORDAN shoes but it also
offers an apparel line and other shoes under the Jordan Brand. The area where
Jordan Brand succeeds, but Nike failed was their pricing system. In terms of
product, place, and promotion Nike succeeded, but in terms of price Nike was
way above affordable range for most consumers. Nike's shoes for Jordan cost up
to $130 per pair, but Jordan Brand offers comparable products with the
JUMPMAN23 logo and Jordan name for considerably less. While this may only
be a substitute for the real AIR JORDAN's, Jordan Brand makes it possible for
people with lower incomes to afford to make the purchase and "get closer to their
hero." (Armstrong, G7) Jordan Brand already sponsors such teams as Penn
State University, Florida State University and University of North Carolina-
Jordan's alma mater. Many other NBA players who grew up with Jordan as their
idol have followed suit and jumped on the Nike bandwagon. Nike endorses Eddie
Jones, Ray Allen, Michael Finley, Scottie Pippen and Kevin Garnett. Jordan
Brand has also grown to encompass other sports and sports figures as well. It
now includes Football Player Randy Moss, Golfer Tiger Woods, and Boxer Roy
Jones, Jr. Every one of these athletes is a well-known and well-respected
athletes and supposedly "the best at their sport" just like Jordan is. Many fans
already look up to them and idolize them just like Jordan, making the
marketability of each one very easy.
The Jordan Brand continues on in the Nike tradition of making shoes and apparel
for the athlete and by the athlete. Not only is the quality of Jordan Brand well
known but also the name by itself can be a differentiating factor when it comes
time to make a purchase. Other companies do not have the name recognition
and the creditability that comes with the name that the Jordan Brand possesses.
When the Jordan Brand broke away from the Nike Brand it brought customer
loyalty with it. All of these factors helped to ease the introduction of the Jordan
Brand into the consumer market place. Jordan Brand skipped over the market
penetration stage and went right to the most profitable stage; Jordan is close to
its maturity. (Armstrong, 290-292) When Nike has lost a very profitable section of
the apparel and shoes sales, Nike is still the top overall seller of shoes and
apparel. Even when Michael Jordan decided to retire from basketball they
remained true to Michael. They launched a very profitable campaign that became
very popular. This "retro" collection was bringing back Jordan's past shoes.
These throwbacks were very expensive, but also sold very well. Nike also began
to sell some of Jordan's college gear, such as shoes, shirts and shorts. This has
made University of North Carolina colors and apparel very popular as well.
Conclusion Nike's ideals and goals remain the same as those of the feisty Steve
Prefontaine and Bill Bowerman. Nike CDO Phil Knight is not slowing down as he
continually signs new colleges on as Nike endorsed schools, even purchasing

5. portion of the NFL's Dallas Cowboys. Nike has reached a point where they can
count on the Nike name promoting itself, and yet they continue to produce
innovative ideas like the BOING! Campaign. These ideas have been productive
and entertaining promotional tools. Nike continues to market itself towards
people of all ages who wish to be active and still comfortable.
Jordan brand looks forward to continuing success in the future with the return of
Jordan to the basketball court. With him coming back it exposes him to more
people and more often. This has made more people realize the Jordan Brand.
With his continued success on the court at an older age has propelled him and
his name into the most marketed icon in history and has opened up other doors
for athletes to do the same like Tiger Woods. These "lifelong" fans of Jordan
have made them loyal to Nike and its products for life.
With Michael Jordan back in basketball and the invested interest by the media
and the public this will certain help sales and keep alive the strong traditions of
Nike and JORDAN BRAND apparel. With the innovative and entertaining Nike
marketing staff and the basketball god that is Jordan, the shoes will sure to be
flying off the shelve- like Jordan from the foul line for a successful dunk.
Bibliography Katz, Donald. "Triumph of the Swoosh." Sports Illustrated. 16
August, 1993: 53-73.
Armstrong, Gary and Kotler, Phillip. Principles of Marketing: Ninth Edition. Upper
Saddle, NJ: Prentice Hall, 2000.
ONLINE SOURCES: NikeBiz. "History" (27 November, 2001)
http://www.nikebiz.com/story/hist_our.shtml NikeBiz "Our Chronology" (2001)
http://www.nikebiz.com/story/chrono.shtml NikeBiz "Shoe Evolution" (2001)
http://www.nikebiz.com/story/pr_tech.shtml NikeBiz "Marketing Innovations"
(2001) www.nikebiz.com/media/markinnov.shtml NikeBiz "Beyond Shoes" (2001)
http://www.nikebiz.com/story/pr_beyond.shtml