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”

MOTIVATIONAL AD

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