NIKE'S MARKETING STRATEGY -
NIKE SUCCESS SIMPLE MANTRA -
Nike is successful because it has some of the best, if not the best, marketing in the world. Their brand is the #1 brand in the sporting goods industry and is the 14th most valuable brand in the world. The Nike business strategy is clear, invest in building your brand through emotional marketing and sports celebrity endorsements, develop products that have high-quality, market-leading technology and buy out competing sports brands.
Nike Has Established their Brand and Logo through Marketing
Why is Nike successful at marketing? How did Nike become popular? What is the Nike strategy when it comes to marketing and branding? They work hard at marketing and invest a lot into it.
"No company in the world spends as much money on sports sponsorships as Nike.." 47
Nike invests in marketing and this can be seen in their 2014 fiscal report. "...Nike spent $3.031 billion on what they call “Demand Creation.” Nike’s a little fuzzy on what that means (marketing can be anything from a TV ad buy to a collaboration with a niche shop). According to Matt it's "Nike-speak for 'Advertising.'" That means that Nike spends about $100 per second on advertising." 40 Nike is spending almost the same amount on marketing that Under Armour makes in sales. This article discusses the importance of marketing that Nike focuses on in 2016, "Nike spent $3.3 billion on marketing in the last year, while Under Armour did $3.96 billion in sales in the last year." 29
Nike spends over $3 Billion in advertising a year 47
Nike promotes their products with having celebrities, professional and college athletes with sponsorship agreements. 11 Nike's first athlete to endorse their products was a Romanian tennis played named Ilie Natase. 12 Nike also invested in marketing early on in their establishment. Currently, Nike focuses on sponsorships, internet marketing, email marketing, and utilized multimedia marketing campaigns. 12
Some examples of Nike's Sponsorships are: 13 & 14
- Golf - Tiger Woods
- Basketball - Michael Jordan, Lebron James, and Kobe Bryant
- Baseball - Albert Pujols and Joe Mauer
- Hockey - Alex Ovechkin
- Soccer - Ronaldinho and Cristiano Ronaldo
- Tennis - Roger Federer and Serena Williams
- Football - Peyton Manning, Drew Brees, Eli Manning, and Joe Flacco
1. BCG Matrix in the Marketing strategy of Nike –
The Nike brand its offering are Stars in the BGC matrix while Converse, Hurley and Jordan are the question mark in the BCG matrix due to their presence in the limited countries.
Nike distributes its products worldwide through different channels such as resellers, supermarkets, e-commerce sites, retailers, licensees and company-owned outlets. There are 697 Nike brand factory stores, 106 inline stores and 99 converse stores and 29 Hurley stores globally.
3. Brand equity in the Marketing strategy of Nike –
Nike is the well-known brand globally and its association with the various sports events such as Cricket world cup, FIFA cup, Olympics and many others has helped the company in creating high TOMA (top of mind awareness) and brand pull.
4.Competitive analysis in the Marketing strategy of Nike –
The apparel, athletic footwear and sports equipment industry are highly competitive due to the presence of a large number of local and international players. Nike competes with the company like Lululemon, Puma, Adidas, V.F Corp., athletic UNIQLO and many others. The demand graph is shaped by variables such as the change in the fashion, technology, taste and preferences of the customers. Factors such as quality, performance, reliability, competitve pricing, connect with the consumer plays the critical role for the companies operating in this business..
5.Market analysis in the Marketing strategy of Nike –
Business segments in which Nike operates has a large number of local & national players. The major threat to Nike is the imitation that goes hand in hand in various markets which are affecting its revenues and businesses. Also, Nike is in the industry which is by and large affected by the product life cycle which means that sometimes it’s very difficult for the company to respond to the fad timely.
greetings~ Santhil
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