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Nike Positioning Process Essay


Nike is one of the most recognizable companies in the world due to the specific logo as known as the “swoosh”. In the 32 years of existence, Nike has been able to be the industry’s leading sport and fitness company. The organizations mission is “To bring inspiration and innovation to every athlete in the world”. According to the founder Bill Bowerman “If your have a body, you are an athlete.” Nike is a global marketer of athletic footwear apparel and equipment. The organization operates in over 160 countries while also having whole owned subsidiaries which include Cole Haan, Converse Inc., Hurley International, and Umbro. Nike focuses most of their marketing resources to find out consumers’ behavior when it comes done to how the costumer purchases. Through the line of different product Nike advertising are the main motivator to purchase a product. By signing sport celebrities they are able to send an image across the product line that add value and benefits because professional athletes use it. To success behind the endorsement gain customer perception of high quality product.

Set of Competitive Products

The products the Nike has to offer range from sportswear to shoes. Nike products are set apart because they are perceived as high performance brad. The categories for their products are the following; Sport equipment: shoes, jersey, and shorts for range of different sports. Nike is also known for urban fashion clothing. The latest product was the Nike+ hand band. Also currently speculated to team up with Apple in order to let them develop the technology. This joint venture is due to the increase of new entrants in that market section. Determinant attributes and Costumer perception

The success of the product line have been due to the strong brand image and what each product is perceived. Nike is more than just a logo is a pure American icon of performance, innovation, which is always associated to high class athletes or event sponsored. Larson, Deanne in his article Global Brand Management- Nike’ Global Brand summarizes Nikes determinant attributes when it comes to brand strategy. Larson states “Customers see experts using the products during sporting events and associate Nike’s products as high performance and quality. Relevance, customers believe the brand provides value, is inherent based on the athlete’s use and sponsorship of Nike products; athletes would not use the product if they did not believe the product provided value.

Performance, customers believe the brand delivers on its promises, is reinforced by two practices of Nike – design and development core competencies and incorporating the input of athletes and customers into new products. Advantage, customers believe in a benefit from the brand, comes from relevance and performance; high quality, high performance products provide an advantage.”(Larson, 2011) In the eyes of the consumer when using a Nike product directly consider having the ultimate edge among others.

Current position of products

Nike current product position is develop products not just for the athlete but for everybody. From making running shoes for real runner they have emphasized on making running shoes for everybody with a sense of fashion. This mainly due the customer preferences as described by Murphy in the article “ is Nike losing its coo?’ saying that the issues was “ the shift in consumers’ preference from “white shoes” to “brown shoes” -Timberlands, Doc Martens and others – for walking and hanging in.” (Murphy, 2000)

Nike figured the problem by correctly positioning the products. This was done with the launch of the Nike free. The new series of Nike free training shoes where not intended to replace the consumer traditional Nike shoes. The positioning of the product was intended to be an additional accessory to a person training sportswear. The marketing that went around Nike Free was to ensure that the shoes would provide a better ability to train harder and intense while giving the sensation of being barefoot. The positioning of the respective product was done through carefully communicating, education and key positioning in the market. Customers’ most preferred combination of attributes

When it comes to understanding customers preferred combination of attributes when purchasing a shoes it refers to the BrandDynamics Pyramid. The pyramid include five levels which are the most salient and preferred attribute of the customers through a strong relationship with the consumer base. Presence, or the awareness the brand has by using high profile celebrities that endorse or help design and actively use the product. Relevance, the value added to the product because of sponsorship of athletes “athletes would not use the product if they did not believe the product provided value”. Performance, the perception that the product delivers on what it was intended to by reinforcing on “design and development core competencies and incorporating the input of athletes and customers into new products.”

Advantage, the benefits that the consumer believe it will add to their specific activity. Going back Nike free that allowed people to train harder and better because of the barefoot feeling. The last important attribute is “Bonding”. (Larson, 2011) This in when a consumer belief that the brand represent them. Larson describes the bonding attribute from search done by Nike saying “research into the thinking and behaviors of its customer base. Nike’s focus on its young customer base and discovering the rebellious connection of young people to athletes continues to bond young people to Nike products.” By implementing these 5 factors they are able to position the product and referring to the costumers preferred attributes when it comes to Nike shoes. (Larson, 2011)

Positioning statement

Nike current positioning strategy and marketing strategy has been working well for them. Nike has maintained the focus on the consumer experiences and athletes feedback in order to maintain the relevance and consistency that the consumer looks for. The product positioning and marketing strategy are based on the industries trends. Nike has been moving along with the trend and following the consumer preferences in order to better position its product than the competitors.

Larson, D. (2011). Global brand management – nike’s global brand. The ISM Journal of International Business, 1(3), 14-1D,2D,3D,4D,5D,6D,7D,8D,9D,10D,11D,12D,13D,14D. Retrieved from http://search.proquest.com/docview/921620384?accountid=12085 Murphy, T. (2000, Aug 01). Is nike losing its cool? Oregon Business, 23, 20. Retrieved from


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