Nike Marketing Report Essay
Nike Marketing Report
The purpose of this report is to use concepts, models and theories to critically assess and evaluate Nike’s digital marketing activities. Within the report models such as the Marketing Mix and Assofs Matrix are used to demonstrate the importance of Nike’s digital campaigns and evaluate their validity.
The report begins with an introduction to Nike as a company; this is a brief history into how the company was conceived. After this we explore different product ranges Nike have to offer and their share within the sporting goods market.
I go on to discuss how “Nike create an“ecosystem” of digital services that complement its product range and encourage consumers to connect with the brand daily”(Olander, S., 2012). I continue to use evidence to support the importance of digital based marketing at Nike. I demonstrate the way in which they target their specific markets using social networking sites such as Facebook and Twitter.
My conclusion focuses on the flaws and achievements of the companies digital marketing efforts. Nike is a company that has an impeccable record when it comes to marketing and its reflected within the examples I present throughout. Using Assofs matrix model I assess what Nike will have to do to remain dominant within its market. These include:
– Diversifying into emerging foreign markets such as Chine and India. – Utilizing relationship marketing more effectively with marketing campaigns segmented to the consumers individually. – Market development within its pre-established markets
– Product development to keep up with current digital trends
Introduction to Nike
As smaller companies are fading away and large multinationals are flourishing its hard to think of them having any similarities. One company that boasts of being that largest sportswear company in the world, started out with humble beginnings. I have chosen to analyze Nike due in part to their large online presence, which continues to grow and adapt to their ever-changing environment.
The way in which we consume information has drastically changed in the last 20 years causing companies to rethink their marketing strategies. I believe that Nikes success as a company is due in part to its effective use of marketing to create a strong brand image and its adaptability when faced with a digital revolution within the global markets.
Track athlete Philip Knight and his coach, Bill Bowerman created Nike in 1964. Originally called Blue Ribbon Sports, the company started as an American distributer of footwear made by Onitsuka Tiger, a Japanese shoe maker that would later go on to found the sportswear company ASICS. Originally Blue Ribbon Sports conducted their business out of the back of Phillip Knight’s car after training.
Knight’s and Bowerman’s business grew and 2 years after they had first created their brand they had opened their first store in California. This is when they adopted the name Nike, inspired by the ancient Greek goddess of victory. This was the time they would also start using the iconic image of the “swoosh”.
After this point their business started to expand rapidly. It did so by “ Pursuing different advertising strategies in its various markets, while at the same time striving to communicate an identical brand identity worldwide” (Von Borries, 2004, p19) . In 1988 Dan Wieden of the Wieden and Kennedy advertising agency coined one of the most famous advertising slogans of all time. The Iconic “just do it”. The slogan has been chosen as one of the most iconic slogans of the 20th century by Advertising Age magazine. (Nike: History and Heritage , 2012).
Financially Nike has seen a massive growth from its humble beginnings of selling products from the trunk of a car to having revenue of $24.148 billion and a income of $ 3.040 billion in 2012 (United States Securities and Exchange Commission, 2011) Nike has been extremely effective at expanding beyond its domestic market of the United States to become a global brand that boasts 44,000 employees worldwide. When it comes to the products produced by Nike it is clear that they have diversified slowly over the years to produce an extremely broad range of sporting goods. Their range of products includes shoes, team kits, clothing and base layers to name a few.
As a company they also produce goods for an array of sports including, ice hockey, track and field, tennis, football, lacrosse, baseball, basketball, and cricket. Like any other sporting goods companies they face many competitors within the market. These include Adidas, Reebok, Fila, Puma, New Balance, Asics, and Skechers though Nike is the largest company within the group. Adidas is its closest competitor with a 16 % market share compared to 31% help by Nike.
Not only is Nike the leader within its market but it also has the most creative marketing campaigns, which I believe to be the key contributor to its international success. Though they have faced controversy over the years with accusations of poor working conditions and low pay for staff they have managed to continue their dominance within the market. They are a true testament to what branding and marketing can achieve within a retail company.