Fundraising Techniques Suggested for the Financial Officials of Nike

The advertising strategy differs from company to company. Generally, Nike believes in spending 5-7% of its revenues in advertising and endorsement. Nike has planned to spend $4.2 Billion until 2014 for endorsements alone. With the huge size of Nike, it is tough for other companies to allocate a big amount for their marketing expenses. Moreover, Nike has always an edge when it comes to advertising and marketing. The table below shows the advertising strategy for the major players in the industry.

This point going forward will be use to focus on different promotional activities and its impact on Nike . The promotional team of Nike will use different forms of promotion to achieve its business, promotional and marketing objectives . Nike uses both above the line promotion and below the line promotion .Above the line promotion is a form of promotion that is undertaken by a business by paying for communication with consumers or it is a type of promotion that company’s do not have direct control over. This advertising involves communicating information about products with mass media such as Television,Radio , Newspaper , Magazines , Internet , Yellow pages , etc. Below the line involves the use the use sales promotion, direct email and Sponsorship which the company has direct control

Expanding globally is a very serious decision for any corporation. Before making this decision, management should take into consideration the health of the corporation and identify the long term financial goals. In this assignment, I will discuss the importance for the financial managers of Nike Inc. to use economic variables in identifying long term financial goals and the major techniques/tools that the financial managers of Nike Inc. can use for forecasting future directions in the stock market and in the economy as a whole.

The aim of this paper is to use the “Nike - The art of selling air.” case study and concepts from strategic marketing theory to identify marketing challenges and how those challenges could be best addressed using marketing principles. The paper will:

In 1962, Blue Ribbons Sports was established by Bill Bowerman & Philip Knight, became Nike, Inc. on May 30,1972. Nike, Inc. established the Nike swoosh logo and the “Just Do It” trademark. Nike. Inc., is one of the largest publicly traded sportswear, athletic shoes & apparel company with revenues of $19 billion in 2010 (3). NIKE, Inc. headquartered is located in Beaverton, Oregon. NIKE, Inc. sells merchandises through distributors, licensees, and subsidiaries in 120 countries globally. NIKE, Inc. has experienced generous amount of financial and marketing success since the 1960s (Wokutch, 2008). This why I chose Nike Inc., (NYSE: NKE) because of the substantial growth throughout the years.

The main stakeholder for Nike is the general public as they purchase the goods Nike produce and the public is the main source of revenue for that organization, the genral public also somehow sponser Nike by wearing their clothing brand , which is a need to get product. Another stakeholder for the organization are companies such as sports direct, as they purchase Nikes goods as they’re competitors to other companies such as JD. Nike sells it’s good internationally which means different countries will purchase their goods. Sport teams are also influenced in Nike as they sponsors Nikes brand, as Nike pay them to advertise their logo in varies ways. The local community would also be seen as a stakeholder depending on the response to Nike, positive or negative. The government is also affected due to business tax. The more stores Nike open the more tax money the government get, which is 20%. Nikes staff provide a service for Nike as they sell

This fact is showing that some Nike departments, especially in Oregon, are giving promotions to schools, teachers, and students. Nike fundraises money to schools for a better

Nike invested in their brand by getting sports heroes to advertise for their brand such as Michael Jordon, Tiger Woods and the Brazilian football team. This further fuel the products appeal towards the consumers.

As a leading company in footwear industry, Nike believes they have the responsibility to conduct their business in an ethical way and also expects the same of its business partners. Moreover, Nike focuses on working with long-term, strategic suppliers that demonstrate a commitment a safe working conditions to their employees (Nike, Inc., 2014).

Nike is one of the most lucrative and popular sports brands in the entire world. It was founded as “Blue Ribbon Sports” on January 25th, 1964 (Roach, 2015). The founders, Phil Knight and Bill Bowerman, started the company with only $1,200. Seven years later, in 1971, the company officially became Nike, Inc. (Roach, 2015). The company name “Nike” was established by Jeff Johnson and came from the name of the Greek goddess of victory (Roach, 2015). Nike’s famous swoosh logo was also created in 1971 by a lady named Carolyn Davidson who was a graphics design student at Portland State University (Roach, 2015). She was originally paid $35 for the creation of the logo (Roach, 2015). She was later celebrated by the company and was given approximately one million dollars of stock in Nike (Roach, 2015). Illie Nastaese was the first athlete to sign an endorsement contract with the company in 1972 (Roach, 2015). As Nike has progressed in both profit margins and popularity, they have been able to sign some of the top athletes in the world. These endorsement deals include such athletes as Michael Jordan, Tiger Woods, Lebron James, Derek Jeter, and many others (Roach, 2015). Nike has also been able to land apparel contracts with the National Football League, National Basketball League, and other sports teams around the world (Roach, 2015). Over the years Nike has built their brand from the bottom all the way up to a global empire that is recognized by people in every country.

They have created more sustainable products such as t-shirts made of recycled polyester and recycled plastic bottles. Recycling old shoes into new ones. Nike started numerous charities and has donated millions of dollars to organizations to help repair Nike's image. Nike must continuously work towards the enforcement of their corporate social responsibilities that they have presented to their suppliers at the same time they must remain competitive in the market place.

I had no clue that Nike was so into social responsibility and it is extremely impressive what they have done already. From using plastic bottles in their clothing to turning their old shoes into rubber mats at playgrounds, they have a huge impact on the world around us.

Today, according to Nike’s official website, they define their “Nike Responsibility” as: “Explore. Innovate. Scale. Collaborate. These themes define our sustainability journey, one that considers impacts across our value chain including labor, environment and communities. We 've been on this journey long enough to know that real change – long-term, lasting change – will only be possible by taking new paths and making breakthroughs.” (“Sustainable Business Report,” n.d.) Indeed, since the 1990’s Nike has made several strides toward improving their social impact.

Together Brazil, and China have accounted for about 20.2% of Nike’s revenue in the first quarter of 2015. Over the next few years Nike has anticipated a large increase in income as world known sporting tournaments such as the 2016 Olympic Games in Brazil are expected to raise great sums of money.

Nike’s management understands how important a relevant strategy is in the global environment, as Don Blair, Nike’s CFO, stated “...we are refocusing our efforts, increasing our investments in innovation, using our voice for stronger advocacy and looking at how we incubate new, scalable business models that enable us to thrive in a sustainable economy.”