NIKE

Name: Devinder Dutt

INTRODUCTION TO NIKE
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

INTRODUCTION contd
Nike = Winged Goddess of Victory.

Greeks say when we go to battle and win, we say it is NIKE!

BRAND PERSONALITY
Brand personality Personification.

Brand Personality
Sincerity Excitement Competence Sophistication Ruggedness

Down to earth Honest Wholesome Cheerful

Daring Spirited Imaginative Up-to-date.

Reliable Intelligent Successful

Upper class Charming

Outdoorsy Tough

Tata salt

Perk

Nike

Mercedes

Levis
1

Michael Jordan
Put Nike on the map

1984-1985 Nike saw a decrease in their earnings for the first time ever Influenced them to make their first specialty basketball shoe Since then, Michael and Nike together have generated billions of dollars in revenue World Sports Hero No. 1 Jumpman logo is one of the most easily recognized symbols throughout the world

Tiger Woods
The newest Nike sensation Estimated that Nike paid him $40 million More attention than Michael Jordan and Bo Jackson 3 pg. ad in Wall Street Journal 30- and 60- second TV spots
Aired during college football, major league baseball, the U.S. Open, SportsCenter and Monday Night Football

Branding: powerful marketing mechanism used by Nike

Leads to higher and more consistent product quality. Increases innovation by giving producers an incentive to look for more new features that can be safeguarded by the patent. Branding results in more product variety and choice for consumers. Branding provides consumer information about products and where to find them.

Brand equity
Brand equity is defined as the positive differential effect that knowing the brand name has on customer response to the product or service.
Philip Kotler

Brand equity
Brands represent the consumers perceptions and feelings about products and their performance. The real value of branding is the ability to capture consumer preference and loyalty. Brands vary in power and value and have varying degrees of brand awareness, brand preference and brand loyalty.

Nikes Market Expansion Strategies

Economies of Scale.
Shared distribution channels among varied product lines lower costs. Large size provides opportunity for more leverage against competition. Efficient use of production facilities lowers costs.

Brand/Image
Ability to charge premium price by establishing an image Access to new/different markets Premium product placement in retail leading to higher sales Image and celebrity endorsements create hopes/dreams/emotional attachment to product

Geographical Outreach
Ability to reinforce brand and create loyalty across cultures leading to a broad customer base. Increased company growth potential. Cross-subsidization of weaker markets.

Product Diversification
New products introduced by Nike will be more readily accepted by customers due to strong brand image

Other strategies adopted by Nike

Sponsorship for sporting events Advertisements. Rebates and Discounts. Conducting fashion shows.

PRODUCT Mix for Nike

Footwear Studs for Striker Mid fielders Defenders Apparel Headwear Tops/Polo Jersey Jackets Shorts Shocks Equipment Ball Bags Watches National Team Gear Jersey for Brazil, England, etc. Club Gear Club Jerseys like Man U, Real Madrid, etc

Competitive disadvantage against regional brands.

Pricing- Bata charges around Rs 400 for a pair of shoes whereas for nike it is Rs 1600. Unaware of utility or use. Shoes are not recommended by coaches in India. Sports culture In India sports like soccer, basketball are not so recognised as cricket.

FUNCTION AND FASHION

Now, Nike concentrates on two aspects function and fashion. In 1960s Nike entered the market with function due to which they Failed in early times. Nike believes if you have a body, you are an athlete.

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