Nike Making Affordable Prices

subsidies. With such a grand scale of suppliers, Nike has achieved economies of scale. Nike ensures that their suppliers perform at the most competitive levels by implementing a performance measurement system known as the Manufacturing Index (MI). (Appendix) This index monitors quality, cost, delivery time and sustainability, and is frequently monitored each period. Suppliers who fall below a certain threshold – which they call the bronze level – have their contracts nullified.

Diversity and variety in products offered on the web (footwear, apparel, sporting equipment, etc.) Adidas even offers items not available in its retail stores

Have you ever seen someone wearing a very rare pair of shoes that you have never seen before? Have you ever wondered how they got these shoes and how much they cost? Believe it or not Nike’s Air Jordan line of shoes has been at the forefront of a decade-long sneaker craze, which has grown so much it has become its own stock market. Jordan’s have been popular for many years and it is shown throughout pop culture, the increase in price and demand, the resale market that has skyrocketed in the last five years, and the history behind the shoe that made them so popular. Jordan’s are very well advertised through several popular outlets.

This article will focus on the comparison of price elasticity of demand between all Nike shoes sold in Canada and all breads sold in Canada. I argue that all Nike shoes sold in Canada have a higher price elasticity of demand than all breads sold in Canada due to three factors: the availability of substitute goods, necessity and percentage of income.

In the last couple of years Nike’s sales have decreased which were targeted at 15-19 year olds. This problem has caused Nike to lose customers which means a loss in sales/ profits. Over the past few months competitors have been raising their strategies to bring in customers in which increases their profits. This is having a negative effect on Nike, if Nike carry on the way

I think that that will solve a lot of the problems.” TJ Jacobs, a self-proclaimed Sneakerhead and shoe store employee, offers an explanation to the reason why Michael Jordan releases a limited amount of shoes. “It wouldn’t be an exclusive shoe or as popular if everyone could get it. The shoe wouldn’t have the same value.” Jacob says he not only camps out for shoes for himself, but he buys pairs that he can sell to people who couldn’t get a pair. He says that he once bought a pair of Jordan Galaxy Rookies for $400 and sold them for $600. There is a lot of money and time invested in the marketing and selling of Jordan sneakers, and the brand continues to

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:

The company I am presenting is Nike which was founded in 1965 by the athlete Phil Knight. Nike is a well known brand which is selling its products worldwide and has 36% of the market share.

Though the price tags on these basketball shoes can be seen as ridiculous, these companies are still making a huge sales off these shoes, largely because our society brand washed most of these brands customers to pay that much for shoes. According to www.statista.com, Nike’s revenue worldwide is $30,601 Million, their net income worldwide is $3,273 million and there number of retail stores worldwide is 931. Also according to www.statista.com , Adidas net sales worldwide is 14,535 million Euros, their net profit was 524 million Euros and their number of stores worldwide is 1,746. Even with these hefty prices, at which companies are selling their products, they are still making huge profits globally and will continue to make big profits, due purely to the name of their brand, despite the prices. The increases in these companies prices, it has increased the price of other companies basketball shoes such as, Under Armor and Peak. Also it has sunk cheaper shoe companies like And-1 and Reebok.

Nike has suffered attacks from a number of agencies and organizations throughout the world that claim that the workers who manufacture Nike shoes are denied the basic essentials of living—a fair wage and decent benefits. All

Distribution – to make certain they are getting the latest most innovative products to customers quickly

Instead of spending millions of dollars on their workers, who are the backbones of making the actual shoes, they are spending it on their advertisements to promote their company. I realize that advertisement is essential to the success of a product, but it should not be at the cost of another human being to make a profit. I know that Nike is just one of thousands of companies that have taken their labor overseas, so that the product can be made at a fraction of its cost. Unfortunately the public sees Nike as a company whose product is worn by the rich and famous, therefore it is something that they would want for themselves. We the consumer enable them to continue this kind of business, because we buy the product. Through global media, we the public are becoming more aware of this kind of exploitation of workers. Overall, I think there is no pride to be found in companies that exploit their employees at the cost of a better profit for themselves. Awareness is going to be the key to hopefully fix it in the near

Competition is very fierce due to the number of companies competing for sales. Lots of money goes to marketing and promotions using various channels to reach the young demographic group of consumers who spend the most money on Nike’s products. Growth is slowing down in the athletic footwear industry. But new markets are emerging with high growth rates. These markets include extreme sports market and the corporate merchandise market.

The sportswear industry is very price sensitive and most competitors prices are about the same. Nike sells its products in Nike shops and the selling of its products direct to the consumers conflicts with other resellers of the brand. Most of Nike’s earnings are derived from selling into retailers.

Nike began as Phil Knight’s semester-long project to develop a small business, which included a marketing plan. This project was part of Phil Knight’s MBA course at Stanford University in the early 1960s. Phil Knight had been a runner at the University of Oregon in the late 1950s. His idea for his project was to develop high quality running shoes. He thought that high quality/low cost products could be produced in Japan and then shipped to the United States to be sold at a profit. His professor thought that Knight’s idea was interesting, but not much more than a project.