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Nike

Good Essays

Q1. How would you characterize Nike’s brand image and sources of brand equity in the United State?

Nike has been successful in building a brand image with product features as follows:

Performance
From the early day, Nike has learnt the consumers’ need by listening to the need of athletes, sharing their true passion for running. In doing so, Nike has created a reputation as a provider of high quality running shoes designed especially for athlete. Also, high-tech image has always been associated with Nike products

Innovation
The Nike brands always associate with innovation. For example, in 1987, Nike developed an innovative new cushioning technology that was use with running shoes. In 1988, Nike introduced “Air” technology …show more content…

At the beginning, the company adopted a high price strategy that target to high-end segment only. In doing so, Nike had selective distributor system in Europe that would promote the premium image of Nike brand. With the change in distribution strategy, Nike has started to gain a greater control of distribution system. As a result, in 1992, the company had successfully regained control of 90% of Nike European distribution.

In comparing to other competitors, Adidas only controlled 65%, Reebok only controlled 40%, Nike have a competitive advantage in expanding into global market in Europe.

Customer perception
Since, Nike adopted high price strategy and targeted to high-end segment, European consumers had perceived Nike as an aggressive, expensive American brand, viewing the company as arrogant. That is a real dilemma for Nike in progress to grow in Europe market. It is imperative that the company has to find a way to change consumers’ perception about the brand.

Marketing budget and sponsor events
In 1991, Nike spent $150 million for global advertising and promotion

In 1992, Nike did raise overall global advertising and promotion budget to $240 million and focused on Barcelona Olympic 1992 with $50 million. Took advantage of the popularity of basketball as an international sport. Also sought endorsement with top

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