The key success factors for Nike? Essay
The key success factors for Nike?
Nike, originally known as Blue Ribbon Spots is involved in the design, development and worldwide marketing of footwear, apparel, equipment and accessory products which started its journey in early 1962. In nearly 200 countries with around 18,000 retail accounts Nike is now the largest seller of athletic footwear in the world. The company focused on delivering high quality running shoes designed especially for athletes by athletes. Behind its success, among many factors two key factors can be easily seen which are Advertising and Marketing.
Nike placed a significant weight on marketing and advertising the company and its products. Nike strongly bonded the contracts with highly successful and influential athletes, coaches, teams like Michael Jordan, Serena Williams, and Tiger Woods to popularize its shoes and other sports accessories. In its advertising campaigns, Professional athletes were used which was proved both effective and efficient.
Nike also actively followed and applied some marketing plans and programs to sustain its dominance in the industry and stay competitive. Like Nike Responded to trends and changes in consumer preference by adjusting the mix of existing product offerings, developing new products, styles and categories, and influencing sports and fitness preferences through its aggressive marketing. Nike marketed and advertised its products mainly through TV, magazines, and campaigns which also were effective and efficient.
Where is Nike vulnerable? What should they watch out for?
There is a fact; Nike was asserted in using celebrity endorsements in their advertisers and campaigns. But they need to keep in mind that they should not let the celebrities become their brand image. If it was so, the company would run the risk of diminishing the brand as soon as celebrity becomes faded. But in the early age, they did not think about the problem that might rise by enrolment of individual athletes; because at a time, people dies and
new people come in. So in such a case; if a celebrity is Nike’s brand image it will be lost as soon as the celebrity is no more, or in this case the brand has fallen.
Nike can watch out the following things to watch out for their brand: 1. Selecting a spokesperson whose characteristics are similar as well as congruent with their brand image. 2. Nike deals with only one product line; which is footwear. In this circumstance, Nike should watch out for product diversification in order to increase their share in the U.S market as well as the global market
What recommendations would you make to their senior marketing executives going forward? Anyone’s shortlist of the world’s leading brands would surely include Nike, the global icon for the athletic shoes. The Nike brand has become so strong. Brand management is one of Nike’s many strengths. Consumers are willing to pay more for brands that they judge to be superior in quality, style and reliability and Nike has acquired the branding image with its technology based production methods and unique marketing strategy. It is thought that using professional athletes in advertising campaign is both effective and efficient. But today, athletic shoes market is very much competitive. Numbers of competitors are increasing day by day. They are also trying to take the share of the profit by creating brand image in the consumers mind.
As Nike has already created the brand image to the consumers mind, marketing managers always need to be alert to make sure to stable the brand image. Nike reduced its production cost by importing shoes from abroad. But marketing executives should keep in mind that quality matters. If reducing cost reduces quality, marketers should not go after it. Because quality caries brand image and that’s why quality should always be increased to compete with the competitors. Nike is manufacturing athletic shoes. If it tries to convince consumers to change the use pattern of these shoes, like they may use those shoes casually or at home, sells may increase.
They should diversify the pattern of shoes. Nike can also enter into other market relates to the footwear market to diversify its market share. They are targeting only the young people customers. But a large segmented group of old and child group is not targeted. Nike can make footwear for the old and child also. For capturing local markets, Nike needs to design and manufacture footwear for the local sports. Though Nike is manufacturing athletic shoes for about more or less 30 sports, but there are many other local sports in different countries. If Nike does this, it can also defeat local brands and can also increase its overseas revenues more. What should they be sure to do with its marketing?
1. Nike should be sure providing the core values of the brand what is the base concept of the brand. Organization should use it as their uniqueness of their product quality, feature and, after the entire brand image.
2. They should be cared of the marketing campaign of the spokesperson as if there are no anything unrealistic attitude highlights for which the people’s perception can be converted negatively. Spokes person function should be influence able to all types of people.
3. For introducing their product in the foreign market, they have to consider the local market, their culture and religion for the marketing advertising, campaign. Some country has traditional norms of culture & strong believes in religion.
4. In terms of creating a highly-flavored psychological value in the consumer mind, they should assure chipping in helping the many current disasters. Especially, the recent issue “Anti-Global worming” program evidently can make a better thought about the corporation.
5. In the Asia, Nike is not still that much popular as it is in the America & Europe so for dominating the Asian countries and make its root in the deep of the market it has to be sure the master marketing plan.
Although Nike is the market dominator in the athletic footwear market, it should be sure it’s strategic marketing plan for expanding its field towards more hasty and prominently.