Nike

Paul Vella

Assignment 2

Nike Company Profile

• American multinational manufacturing Co.• Core products include footwear & apparel• Unwavering commitment to advertising• Key Marketing Initiative

– Use of high profile athletic endorsements

• Nike’s brand portfolio– Nike, Cole Haan, Converse, Hurley, Nike Golf and

Umbro.

– 75% of the growth is expected from the Nike brand.

Marketing Campaign

• Advertisements– Focus on individuals, not products

– Ads focus on grit, determination, human spirit, courage & greatness

• Co-founders’ vision– Bill Bowerman’s observation many years ago “endless possibility

of human potential in sports”– Phil Knight “when we help athletes reach their potential, that

process helps Nike & consumers reach their”– Set the tone for Nike and its core marketing initiative

High Profile Athletes

• Signed Michael Jordan in 1985– First elite athlete signed– Jordan endorsed a version of Nike’s Air Shoe,

otherwise know as “Air Jordans”. – From 1985 Nike continued to sign top athletes

• Other Key Signings– Bo Jackson, Tiger Woods, Kobe Bryant,

Lebron James

LeBron “The Rise”

• Nike continues to maintain Bowerman’s legacy

• Nike most recent campaign featuring Basketball superstar LeBron James called “The Rise”.

• According to David Grasso, Vice President of Global Brand Marketing, the campaign celebrates LeBron’s courage to forge his own journey even when other may have disagreed with his decision.

• It’s this Just Do It spirit that defines LeBron and Nike as we strive to inspire all young athletes.

Core Marketing Initiative

• Despite, the rising athlete endorsement cost and turbulent economic conditions, Nike remains committed to use of high profile athletes

• Phil Knight said that “athletes at their best, represent some of our most noble characteristics- passion, commitment, competitive fire, being part of team, the ability to overcome adversity”

Financial Success

• Marketing Initiative Translated to Unprecedented Revenue Growth– Revenues expanded to over $19B in fye2010

as compared to $0.946MM in fye1985 (signing of Jordan)

– Net income increased from $0.01MM in fye1985 to $1.9B in fye2010

Brand Equity Model

• Nike strong brand equity position• Brand Asset Valuator (5 Pillars)

– Differentiation, Nike product line is well established (swoosh design trademarked in > 150 countries & easily distinguishes product from competitors, even without NIKE name)

– Energy, Nike sales have expanded exponentially (<$1MM in 1985 to $19B in 2010)

Brand Equity Model (cont)

– Relevance, significant global coverage (over 170 countries worldwide)

– Esteem, Nike’s significant yoy earning growth is a reflection of how well the brand is regarded & respected.

– Knowledge, Nike is the largest seller of athletic footwear & athletic apparel in the world, which demonstrates worldwide appeal & intimacy

Brand Asset Valuator

• Nike Brand Asset Valuator (BAV) Results– Nike demonstrates Energized Brand Strength – Nike demonstrates Brand Stature– BAV reflects Nike as a Market Leader

Conclusion

• Based on BAV Nike is a market leader

• Nike continued use of high profile athletes to endorse its product has directly contributed to their financial success