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Gisele Nabil

on 22 June 2015

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Transcript of NIKE

Nike's timeline/history
some facts
marketing strategy
4P analysis
Nike, Inc
an American multinational
one of the biggest suppliers of
Marketing strategy
1. brand management/
identification (logo, slogan..)
2. celebrity endorsement
3. sporting events & campaigns
4. innovation
athletic shoes
By 1971 BRS revenue had touched $ 1 million
the business relationship with Onitsuka was turning sour moved from being distributors of athletic footwear to designers and manufactures

they called their brand 'Nike' after the Greek goddess of victory
Jeff Johnson , Nike's first employee , came up with the name
Carolyn Davidson, a design student, created the famous 'swoosh' for $35 ($200 in today's currency)
Nike attained a 50% market share in the U.S. athletic shoe market and the company went public
in 1988 Nike's slogan "JUST DO IT" launched
the founder of Wieden+Kennedy advertising agency,Dan Wieden credits the inspiration for his "Just do it" slogan to Gary Gilmore's last words, a serial killer who said "let's do it" just before he was executed
the first Niketown store opened in downtown Portland
the company was founded as 'Blue Ribbon Sports' (BRS) by Philip Knight and his coach Bill Bowerman who was a track athlete in University of Oregon

in 1966 it opened the first BRS retail store in Santa Monica, California

Nike has more than 800 retail stores throughout the entire world
21% global market share in athletic footwear
sells their production in almost 200 countries
more than 700 shops around the world
sells 20 million Nike shoes each year
company has grown to be the world's number 1 shoemaker
its revenue in 2014 was $27.8 billion
the brand alone was valued at $19 billion
Celebrity Endorsement
Sporting events & Campaigns
Nike's Endorsement Deals
Michael Jordan, Basket: $60 million/year

Rafael Nadal, Tennis: about $10 million/year

Maria Sharapova, Tennis: $8.75 million/year

Cristiano Ronaldo, Soccer: $8 million/year
strong global brand
a very professionally competitive company, worldwide leader
low cost manufacturing
strong at research and development
high prices
profits are largely dependent upon its share of the footwear market
product development
expansion into the global market to create larger brand recognition
the growing of competition
high prices
well known for quality products that most people will pay top dollar for these products
Not only better quality products
'wearing Nike says something about who you are'
almost like a status symbol
Nike sells its product to about 20,000 retail accounts in the U.S.
in almost 200 countries around the world
more than 700 shops around the world
has offices located in 45 countries outside the United States.
most of the factories are located in Asia, including Indonesia, China, Taiwan, India, Thailand,Vietnam, Pakistan, Philippines, and Malaysia
initially a distributor for the Japanese shoemaker Onitsuka Co and their brand Tiger (now known as ASICS)
using famous people to endorse and advertise their products
using innovative advertisements that are dramatic, unusual etc.
maintaining a very strong brand image through sponsorships, sporting events and campaigns
since the early 1970s Nike has been accused of using sweatshops to produce footwear and apparel in South Korea and Taiwan

When workers demanded additional rights and benefits in these countries, the Nike factories closed and moved to a different location that would enable them to continue operating at a low cost (China, Vietnam ,Indonesia and Thailand)
Throughout the 1990s, Nike was heavily criticized for selling goods produced in sweatshops. They denied claims against them

In 2001, Nike director Todd McKean stated in an interview that the initial attitude was, 'Hey, we don't own the factories. We don't control what goes on there.'

May 1998 by then CEO Phil Knight: “The Nike product has become synonymous with slave wages and forced overtime. I truly believe the American consumer doesn’t want to buy products made under abusive conditions.”
at that speech he announces Nike will raise the minimum age of workers raise the worker's wages above minimum

2002-2004 : company performs some factory audits

2005 :
Nike becomes the first in its industry to publish complete list of the factories

Nike publishes a detailed 108-page report revealing conditions and pay in its factories and acknowledging issues in south Asian factories

Present: the company continues to post its commitments, standards and audit data as part of its corporate social responsibility reports,_Inc.
founded in 1964 as 'Blue Ribbon Sports' and in 1971 as 'Nike'
Mark Parker --> CEO
Philip Knight --> Chairman
headquartered near Beaverton, Oregon
Brand management
Better for it
first products: running shoes
current products : shoes, jerseys, shorts, sports equipment
Gisele Shehata
sports equipment
Full transcript