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
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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
The current image of Nike is of a brand which provides goods of all ages for people who are athletic or sporty and have a casual lifestyle with fashionable taste. Their main items for selling are sporting goods of all types which include shoes, shirts etc. however, another image of Nike is that it fulfills the self esteem needs of the buyer as Nike products are not cheap and not all classes of people can afford them. Also Nike is often preferred over other brands as it
Nike is the leading and yet renowned supplier of athletic apparel and shoes. The company controls close to 33% of the global athletic shoe market (Dogiamis & Vijayashanker,2009).Nike was founded by Bill Power and Phil Knight in 1962 as a Blue Ribbon Support and then was later on renamed to Nike in the year 1968 (Patrow,2003).The company supplies very high quality product in close to 100 countries with major markets being located in the U.S,U,K, Asia Pacific as well as in the Americas. The company has managed to attain its lead and legendary position via the application of innovative and yet attractive product design which is backed by quality production as well as well crafted marketing strategies.
3) Explore some of the marketing challenges and misjudgements that Nike has faced and how these were or could have been overcome using marketing principles.
As the brand name of Nike continue to soar, other companies in the industry; learning from the success Nike has experienced, start focusing more on brand development to keep up with the increasing levels of competition. These companies resort to brand maintenance, which has become the main target in this industry due to product differentiation made by Nike. Nike, being market-advantaged, produces an extensive range of products, through which it gains a balanced level of profits. This has influenced rival companies to initiate a new range of products in their businesses too. Previously these companies had high risks of failing in business, if their single products did not appeal to the market. Due to the impact of Nike’s business strategy, the other companies are also enlarging their product range,
Since its creation, Nike has proven itself as a popular brand and it has created niches by selling products such as footwear, apparels and various types of sports equipment. This paper will attempt to trace the product development of Nike shoes from its origins in conception and design to the manufacturing and production process located in contract factories in developing countries to advertising and marketing of Nike as a cultural commodity and finally, the retailing of the footwear around the world.
Currently, Nike stand as a leading figure in producing high quality sports and fitness equipment and apparels. Bearing just a simple start of selling Japanese imported shoes from a station wagon has transformed
After 2006, Nike caught up with the Adidas in global market share. It’s all thanks to Nike’s ability to find new alternative ways of brand management such as digital distribution with YouTube or individual partnerships with players that lead to Nike catching up when it did not have the rights to market extensively on the worlds biggest stage.
NIKE‘s unique value proposition has been on the innovative design, finesse and quality of their Product line. Innovation has been a constant driving factor of NIKE since its inception.
Enderle, K., Hirsch, D., Micka, L., Saving, B., Shah, S., Szerwinski, T. (2000, March 14). Strategic Analysis of Nike, Inc. Retrieved on December 14, 2005, from
Nike has always remained on the preference list of athletes and athletic footwear was indeed the first category of products launched by the company more than 30 years ago. Today, you can see the craze for its products, not only among athletes, but also among golfers and other sportspeople. Apart from that, Nike shoes and other accessories have also become the favorite fashion products for teenagers. Thus, fashion, elegance and achievements are some of the associated attributes of Nike products.
Nike, Inc. has been the world’s leading innovator and provider in athletic footwear, apparel, equipment and accessories for 50 years. Their mission has been to bring inspiration and innovation to every athlete in the world; if you have a body, you are an athlete. Arguably one of the most innovative companies in the world, Nike has built its brand into an iconic world-class powerhouse that continues to dominate the market with no signs of slowing up. Nike’s marketing and advertising have been breakthrough, aspirational, and legendary over the years, featuring high-profile athletes and heroes.
Barry and Harris (2015) reveal that compared to Nike, Adidas has less than half of share, thus it becomes evident that the latter has lesser market share compared to its competitor. On the other hand, according to a survey conducted by HS Insider, in terms of college students, several of them prefer the fit of Nike, while others prefer the quality of Adidas (2015). Furthermore, taking the case of employees working in each company all over the world, both companies have same amount of workforce (HS Insider, 2015). So how does one company have a greater presence than the other? The answer lies in the public relations as well as social media presence, which show that Nike significantly overshadows Adidas with its various online programs and deals. Furthermore, Nike spends
The report is about Nike, regarding the case study. The report elaborates on the aspects including buyer behaviour, brand image, consumer decision making, and marketing research techniques applicable to Nike. 3.0 Introduction Nike is the worlds number one sports shoe company. In the US Nike dominates 35% (source: see appendices) of the sports shoe market and its products are sold in more than 140
Meaningfulness as a brand the meaning of Nike is the “greek goddess of victory”. Likability of the brand the symbol of the brand reminds the minds the sign of ok in addition it is associated with victory and winning. These all have a positive effect on peoples minds. Adaptability is how the brand responds to change nike has changed its logo many times in years which shows how Nike uses adaptability for brand equity. Transferability is the capability of the brand to add new products nike always adds to their portfolio of products they also change their logo according to gender ,product etc. Protectability is the last of these elements which is about protection and legal registration nike has protected their brand elements with the swoosh appearing alongside the trademark “just do it” since
Firstly Nike sold its franchise licenses in different countries expanding the market share in sports wear industry, and then the company moved towards purchasing shares in equity to reduce the risk uncertainty. Finally the company managed to bring the dealers’s corporation under one direction enabling them a better control and monitoring capabilities. Nike is making new policies, analyzing the performance of marketing and advertising with the standards they have set to make sure that the company is in line with its required its standards in addition; company is moving towards improving its advertisement in order to make it more effective in different regions. Nike has also faced different issues while internationalizing the business, such as capabilities, access, finance and business environment; unavailability of trained workers, limited information about the market, inability of contacting foreign customers and new business environments describes these issues on a vast ground.