brand management: nike
TRANSCRIPT
MKTG 362-001Jessica McCarthy, Shauna Duggan,
Justin Halpern, Devin Bornstein
HISTORY AND OVERVIEW
• Blue Ribbon Sports– 52 years ago
• 1971: Nike• Founded by University of Oregon Track
Athlete– Phil Knight– Coach Bill Bowerman
• Nike: Greek Goddess of Victory• Early stages distributed Onitsuka Tiger
HISTORY AND OVERVIEW• Owned/owns
– Cole Haan, Bauer Hockey, Hurley International, Chuck Taylor All-Stars, Starter, Umbro
• World’s largest supplier of athletic shoes, apparel, and sports equipment
• Operate brick and mortar and e-commerce stores
• Sponsor high-profile athletes and sports teams around the world
OVERVIEW OF CHALLENGES
• Nike down 10% on the Dow this year
– Worst performing company in 2016
• Apparel Industry Is struggling
• Nike Basketball losing market share to competition
• Brand Architecture, Brand Portfolio, Brand Extensions, Brand Revitalization and External Challenges
BRAND ARCHITECTURE
• High-class brand in a market where consumers want to spend less
– Main brand is seen as this
– Extensions and brand portfolio are seen as high class
• Brand Endorsements
– Tiger Woods
– Kanye West
BRAND PORTFOLIO
• Air Jordan’s going out of style?
– Nike’s most popular brands
• 12-14% relies on Basketball
• Nike Golf
BRAND EXTENSIONS
• Nike Basketball
– Gaining market share
• Previously held 96% in 2015
• Lost about 20% in 2016
• Nike’s Running Footwear
– Rapid increase of casual styles
• Women’s Athleisure
– Athleta and Lululemon gaining ground
– Large increase in competitors in this field
BRAND REVITALIZATION
• Sweatshops and export processing zones
– Took advantage of these
– Taken steps to reassess the current state of their factories
– Began to turn around overall brand image
EXTERNAL CHANGES
• Counterfeit products
– Look similar, but poor quality
– Takes away customers
• Impacts the image if consumers believe the fake products are real
BRAND INVENTORY
BRAND ELEMENTS• Brand Name
– Scores high in all of the criteria– Greek goddess of victory
• Brand Slogan– Just Do It– Introduced in first just do it advertisement– 80 year old man who ran 17 miles each day
• Nike Logo– Swoosh– Represents the wings of the Greek Goddess of Victory, and arc of
movement• Brand Characters
– Sponsored athletes– In 8 subcategories– Michael Jordan, Maria Sharapova, Roger Federer and Ronaldo
MARKETING PROGRAM: SPONSORSHIPS
• Advertisements
• Direct Marketing
• Sponsorship of athletes, teams and leagues
- Variety of sports
- NFL, United Soccer Leagues and National Teams
- Place logo on equipment
MARKETING PROGRAM: SOCIAL MEDIA
• Facebook page
- 25 million users
• “Shop Now” link
• Each page has similar look and feel
- Separate pages for each category
• Instagram page
- Inspirational and touching content
- Stories of athletes
- Commercial clips
MARKETING PROGRAM: ADVERTISING
• Motivational advertising
- Use popular athletes
- Don’t display/promote specific products
- Create a strong feeling and or connection
- The experience of Nike
- “Just Do It”
- “Welcome To The Grind”
- “Unlimited You”
POINTS OF PARITY
• Target Market
• Products
• Pricing
• Use of Athletes
POINTS OF DIFFERENCE
• Category offense strategy
• Separates Nike brand into 8 categories
– Running, basketball, soccer, men’s training, women’s training, action sports, sportswear and golf
• Nike+ Running
• Tracks distance, average pace, has playlists, can set challenges and add friends
• Brand Recognition
• 80% of the surveyed people for this assignment listed Nike’s slogan, or their symbol when asked “What comes to mind when hearing Nike?”
BRAND MANTRA
• “Authentic Athletic Performance”
• Original and unique
• Lifestyle and mentality (not leisure)
• World Class performance fit
PRIMARY COMPETITOR
• New Balance
• “We Were Born To Move”
• Aiding athletes in pursuit of excellence
– PR or first 5k
• Holds large presence in UK
PRIMARY COMPETITOR:BRAND INVENTORY
• Footwear and apparel
- Blend of function and fashion
• NikeID vs. NB1 Customize
- Nike: 31 different customizable parts
- NB: 3 different shoes
- 998, 574 and 990v3
PRIMARY COMPETITOR:BRAND INVENTORY
- Nike USA Gear
- “The Team USA Collection”
- NFL, NCAA, MLB, National/Club Soccer Teams
- New Balance
- USA collection line
- Strictly for sneakers only
- Apparel access to 1 major team: Liverpool LFC
PRIMARY COMPETITOR: BRAND INVENTORY
• Acknowledgement of less experienced athletes
- “Essentials” tab
o Apparel and accessories list of must-haves
o Combines all areas necessary for success and access
o Removes the paradox of choice
BRAND AWARENESS
• One of the top Athletic companies
• Swoosh logo is universally recognized
• “Just Do It” has become synonymous with the brand
• Constantly adding new athletic sponsorships
BRAND ASSOCIATIONS
• The “Just Do It” Campaign
• Shoes
• High Profile Athletes
• Sweatshops and Child Labor
• Expenses
STRATEGIC BRAND MANAGEMENT RECOMMENDATIONS
• Adding an “Essentials”-like tab to the website to target the less educated runner
• Create an “Athleisure” line to stay competitive against companies like Athleta and Lululemon
• Promote specific products along with the brand image
• Continue to sponsor athletes and well-known celebrity athletes