Positioning and Brand Loyalty

Skey says, “They clearly have a strong and emotional brand for young people.” Her quote benefits the idea of the use of emotional connections with their audience in the advertisements Nike uses. Leonard states in the Shoes, Diplomas, And The American Dream article that “Nike does have a message to market. The company is selling high-school and college athletes the prospect of not just a career but a future.” It is also stated in the article that people are “Willing to invest – to bet on – the future because of the seductive allure of the American dream” (Leonard). The products Nike sells can assist in the success of an athlete due to the use of the product. If a runner was to use crappy shoes, they may lack in their abilities due to the poor quality of the shoes. Another point is that if one is successful with a Nike product, they would stay with that product or upgrade when a better quality of the product by the same company, Nike, comes out. When success is found within one company, a customer is more likely to stay within the company product

Socially, what is working for Prince Sports is that the interest in the sport is increasing. As more and more people look to physical activities to improve their health, tennis is an affordable option. The social downside Prince Sports is facing is some of the preconceived notions regarding tennis. Some view tennis as being a challenge to learn and that is only a fad, where interest will fade and be replaced with the next newer fad. Two economic pluses for Prince Sports is the affordability when compared to other individual sports such as golf and the availability of public and club tennis courts. The economic downside is competition entering the market and recessionary spending may limit the ability to purchase more expensive tennis equipment. Technologically speaking, Prince Sports is very innovative when it comes to their equipment, the downside is that the average tennis enthusiast may not appreciate or understand the innovation and fail to make related purchases. Prince Sports, while an industry leader, faces competition from other equipment providers as well as other individual recreation sports, such as golf. The last environmental force facing Prince Sports is the regulatory impact. While Prince Sports works to protect their

Innovation: In such a mature and competitive industry, continuous innovation is crucial to the success of the company as it gives a unique selling point that rivals do not have. Both product and process innovation are Nike’s

In addition, these companies are able to easily compete in the sports apparel market because the barriers to entry are low. On the other hand, many companies should think twice before entering the market. One reason is the large capital costs that are required to meet consumer demand in the market. In addition to large capital costs, some of the largest companies have gained customer loyalty based on their strong marketing skills. For example, Under Armour, Nike, Adidas, Reebok, ASICS, make new entrants into this industry much more difficult to compete with when these companies have a big share in the market already. According to Exhibit 4 in the textbook, it shows the major competitors and brands in 2013. Nonetheless, competition is intense in the sports industry market but, the high levels of product differentiation can also act as a barrier to entry for many companies because company’s need a high level of marketing to market their brand to consumers.

The factors that drive Nike’s decision to stick with its current organizational structure include its well-established brand name in the industry. The company positioned itself as a brand

Prince Sports can stay ahead of the changes they possibly face if they keep in mind when Linda Glassel said “It’s learning, it’s studying, it’s talking to people who understand where the market is going” (Pg. 241). In order to stay ahead and take on any challenges that come their way, they need to employ research methods that can help them solve their problems and come up with new ideas for marketing their products. Besides using the Five-Step marketing approach, there are specific aspects they should pay close attention to. As a part of step three, they need to collect data, both primary and

has, it is very clear that the company is focusing on Nike's future business needs, developing the "bench strength" of the company’s ability through intentional pioneer advancement. In the long process of choosing the suitable candidates who are capable to work in the company, Nike is concerned in their team building because of their well-known brand image. In doing so, Nike can look for suitable candidates that are capable of discriminating task arranging, supervisor responsibility for training and tutoring, and organized learning by means of individual- and group based classroom and learning new things from the web. Looking ahead, key regions of center for NIKE, Inc. incorporate helping workers and supervisors see how to fabricate effective vocations through formal and casual preparing and improvement, enhancing administration advancement, and inviting thoughts. The compulsory test for job seekers who are looking up for higher positions in Nike, candidates have to take is to understand how the company works and how well will the candidates cop in working with the company for Nike’s main focus is to enhance the potential of their employee and develop a leadership capability, this is done in organization and ability audits straightforwardly connected to the business vital needs. In Nike, high position leaders and managers are considered responsible for enhancing the execution, potential,

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,

Nike considers their structure a “Matrix Organization” (Nikebiz.com, 2010). This structure allows Nike to deal with the fast-moving market and keep their industry leading position. It can be costly, but has proven to be well worth the money for Nike. All work is collaborative; team members report to two areas; known as, geography and the global function area (Nikebiz.com, 2010).

Whether you enjoy sporting events live or on a high definition television at home or sports bar, the experience is exhilarating and leaves a lasting impression. The emotions that sports invoke are priceless and it is up to the sports marketers to meet the needs of fans and or spectators alike. Marketing sports is no easy task because of the nature of sports products. With an effective marketing strategy, sports entertainment brands can successfully meet the needs of consumers and accumulate great wealth.

Nike’s main strategy revolves around product branding. Their brand compromises of a swoosh logo which is accompanied by a message of “just do it”. The logo was imprinted on all of their products with the message developed to express the individuality of their target group. The branding was further promoted by Nike’s relentless approach on the quality of their product as demonstrated when considering overseas business opportunities, quality must not be compromised in order to do so. This ensures consumer satisfaction and loyalty towards Nike.

Through market research, Nike found the most impressionable consumers were these Football Obsessed Teens. Generally, these teens were around 17 years in age, Nike’s target age. Nike felt that the “17-year-od consumers were more independent, more driven in their football goals, could choose their own brand, buy their own products and form brand loyalty.” However, Nike recognized that this change would require an adjustment in their marketing efforts. Primarily, these consumers were not just “aspirational” but rather “inspirational,” a type of consumer that will want the tools to become the best possible player.

Nike’s organizational Form reflects a conglomeration of resources, processes and people around the activities most critical to their target customers in terms of its Value Proposition. It decided therefore to concentrate in depth on the critical activities and competencies rather than increasing the breadth of its

Nike‘s vertical structure includes CEO Mark Parker and a board of directors chaired by co-founder Phil Knight. Although Nike has functional divisions and divisions based on specific products it is not a matrix organization. In a matrix organization, employees report to a functional and divisional manage. At Nike, employees report to the divisional manager and the president of each division reports directly to the CEO. Nike’s continued product innovation and successful marketing are due to the combination of functional and divisional organization using an operations department to insure communication between divisions. There is division of labor but it is not clearly identified. With a more pronounced division of labor and levels of direct supervision Nike can improve its

Report on the Case Study Nike This report has been produced to provide an insight into the consumer decision-making process, buyer behaviour factors that consumers of Nike are influenced by. The report also details recommendations based on the findings. 2.0 Summary = =