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NIKE. http://www.youtube.com/watch?v=mfpZiJaLuyY. NIKE. Caleb Smith, Robert Thornton, Lauren Thrasher, John Yarbrough, and Bobby Wilson. Then and Now. Company Development. Phil Knight. Nike’s Market Orientation.
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NIKE http://www.youtube.com/watch?v=mfpZiJaLuyY
NIKE Caleb Smith, Robert Thornton, Lauren Thrasher, John Yarbrough, and Bobby Wilson
Company Development Phil Knight
Nike’s Market Orientation As the company has grown, it has taken on a market-orientation, meaning that it focuses on a customer’s wants, needs, and decision to purchase a product. This is achieved through connecting with and getting feedback from customers as well as providing customers with highly customizable products through services like NIKEiD. • Originally, Nike was a product oriented firm that focused all of its attention on internal capabilities and producing unique and innovative products.
Phil Knight “Beyond that, we do some fairly typical kinds of market research, but lots of it involves spending time in stores and watching what happens across the counter, getting reports from dealers, conducting focus groups, tracking responses to our ads.” “Now we understand that the most important thing we do is market the product. We’ve come around to saying that Nike is a marketing-oriented company, and the product is our most important marketing tool.”
Target Market • Nike’s main target markets are: • Athletes • Sports fans • Though many Nike ads feature the successes of professional athletes, Nike also markets to the average person by encouraging them to push themselves to be their best. http://www.youtube.com/watch?v=rtWcE3wguKY
Competitive Advantage • The simplicity and style of their swoosh logo, created in 1971, has played a huge role in the company’s continued success. • The “Just Do It” slogan has prevailed since its creation in 1988 due to the fact that it can be applied universally and is intensely personal. • The sponsorship of professional athletes is designed to attract customers and promote the Nike image as being reliable to not only everyday customers but also professional athletes. As a result, customers associate their Nike purchases with the prospect of achieving greatness.
Marketing Strategy • Nike’s marketing budget for 2013 is $2.7 billion. • Historically, they coined viral catchphrases: “Gotta be the shoes,” “Chicks dig the long ball,” “You don’t win silver, you lose gold,” “There is no finish line,” and “I am not a role model.” • Nike has shifted to a more digital approach to stay connected with customers. • In 2010, Nike Digital Sport was launched in an effort to create a sustainable competitive advantage. • Develop cutting-edge products like the Nike+ running sensor and the FuelBand • Nike also uses emotional marketing tactics to inspire customer loyalty.
Social Media • Recent marketing advancements replacing big-time television campaigns: • A performance-tracking wristband that collects user data and trends for marketing use • 30-story billboard in Johannesburg that posts fan headlines directly from Twitter • A major World Cup commercial shot by an Oscar-nominated director that has recently made its debut on Facebook, gathered 8 million views in a week to set a viral-video record • The Nike+ platform
Marketing Research • Goal: growth of market share in the industry • Recent focus of marketing research: • China’s perception of Nike products and inspiring exercise habits and sports team loyalty to attract customers to the brand • Customer reactions to rumors and wrongdoings associated with their sponsored athletes (Example: Tiger Woods) • Nike Retail Store Surveys- taken after making an in-store purchase, about 7 minutes to complete on the Nike website • Nike Apparel Wear Testing- participants, who are simply potential customers, are required to turn in a wearing log with information about their experience with the apparel
Marketing Management Philosophy • Nike has been able to spend a large amount of money on aggressively advertising their products because of the enormous profits generated. • Nike products are available for purchase in nearly all sporting goods stores in the United States, giving them mass exposure to target markets.
Social Responsibility • During expansion outside the United States, Nike encountered many problems with labor and environmental issues. Nike failed to adequately address labor issues for many years, but it has recently made great efforts to improve workers' conditions. • They created Codes of Conduct that cover environmental and social impacts along withinternal teams that work specifically to enforce these regulations. • Nike was the first company in its industry to fully disclose a complete list of all the factories that the company uses in the manufacturing process “to encourage and support transparency and industry collaboration around issues affecting our suppliers” • This illustrates their commitment to the society and environment in which they operate.
Promotional Mix • Product – stylish footwear, cutting-edge equipment, trendy clothing and accessories, and team jerseys for a variety of sports, including basketball, soccer, football, running, and training for other action sports. Nike also offers sports-inspired products for children and variousrecreational activities, such as golf, tennis, and walking. • Price – As incorporation of technology increases, Nike strives to keep prices reasonable and reflective of a product’s quality. • Place - Nike's retail strategy in the U.S. is to keep a small number of Niketown stores and sell mostly through national retailers. • Promotion – In many ways, Nike’s focus on effective promotional strategies has been key to the company’s lasting success.
Global Vision • China is the company’s second-largest market. Because there are fewer malls, and they opened more than 5,000 boutique-sized shops, many of them focusing on a single sport. They also launched a campaign to promote the importance of running, targeting younger customers. • In Europe, the company has filled a previously unknown need for a hybrid sneaker soccer shoe to wear out and about that still has the capabilities to perform in a pickup street soccer game for example. • Going Green: "Sustainability is key to Nike's growth and innovation," said Mark Parker, NIKE, Inc's, President. "Making our business more sustainable benefits our consumers who expect products and experiences with low environmental impact, contract factory workers who will gain from more sustainable manufacturing and our employees and shareholders who will be rewarded by a company that is prepared for the future."
