Q. What will be the Introduction and Conclusion of thiscase study??
NIKE: Associating Athletes, Performance,and the BrandNike is the largest seller of athletic footwear, athletic apparel,and other athletic gear in the world,with about 30 percent market share worldwide. Nike markets itsproducts under its own brand,as well as Nike Golf, Nike Pro, Air Jordan, Team Starter, andsubsidiaries, including Bauer, HurleyInternational, and Converse. In February 2013, it sold its ColeHaan affiliate brand to Apax Partners
LLP. As of 2014 the company sells its products through a mix ofindependent distributors, licens-ees, and subsidiaries in approximately 190 countries worldwide.Nike has grown from an $8,000
company in 1963 to a company with revenue of $25.313 billion forthe year ending on May 31, 2013.In 2012, Nike spent an enormous amount of money, more than abillion dollars, on advertising,endorsements, social media, and sales promotion. In order to makesure that this money is being
spent properly, Nike relies on marketing research. It has showna history of innovation and inspira-tion in its marketing and is quick to adapt to the changingconsumer and the world of sports. Nike has
used marketing research in understanding where the future growthlies. A recent example is Nike’sshift from marketing toward the more traditional sports (basketballand running) to other sports (golfand soccer), where its presence has not been as strong. Marketingresearch surveys revealed that theawareness of Nike among soccer and golf players was low, and Nikedecided to work on increasingthese numbers. Nike has decided that the money needed for salespromotion in its strong areas can bebetter spent in other areas where Nike does not have very highlevel of brand awareness.Today, the Nike Swoosh is recognized around the world. This is theresult of about 50 years ofwork and innovation. It signed the first athletes to wear its shoesin 1973. Early on, Nike realized theimportance of associating athletes with its products. Thepartnerships help relate the excellence ofthe athlete with the perception of the brand. Through focus groupsand surveys, Nike discoveredthe pyramid influence, which shows that the mass market can beinfluenced by the preferences ofa small group of top athletes. After it realized this effect, Nikebegan to spend millions on celebrityendorsements. The association with the athlete also helpsdimensionalize the company and whatit believes in. With Nike, this was, and remains, extremelyimportant. It wants to convey a message
that the company’s goal is to bring innovation to every athletein the world. Nike also uses the ath-letes to design new products by attempting to meet their individualgoals.
Explaining Nike’s strategy of celebrity endorsements, TrevorEdwards, vice president of U.S.Brand Management, says that the sports figures, such as Ronaldo,Michael Jordan, and Tiger Woodswho have endorsed Nike brands, all have represented excellence insome way. Nevertheless, theathletes also have a personal side, such as their drive to win ortheir ability to remain humble.These qualities speak something about the Nike brand; this not onlybenefits the brand, but alsohelps to define what the Nike brand is and what it standsfor.The company also realized that in order to achieve its lofty growthgoals, it must appeal to
multiple market segments. Based on marketing research, Nikedivided the market into three differ-ent groups: the ultimate athlete, the athletics participant, andthe consumer who is influenced by
sports culture. The first segment is the professional athletes.The second constituency is the partic-ipants, those who participate in sports and athletic activities butdo not see themselves as athletes
or as being part of the larger sport. The third segmentcomprises those who influence others and
are influenced by the world of sports. These three differentconstituencies form three different con-sumer segments, and Nike uses very different strategies foreach.
Nike has always been an aggressive user of marketing researchand this has been shown inits attack on the European market. It decided to concentrate ondifferent sports in order to reachEuropean consumers. Americans love baseball. And football. Andbasketball. But Europe’s favoritegame is soccer. Nike placed its focus on major sporting events(World Cups and Olympics) and
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celebrity athletes that are relevant to the European consumer.Marketing research in the form offocus groups and survey research revealed that the best positioningfor Nike shoes was one thatenhanced performance in the sport. Through massive advertisingcampaigns, it has been able tochange the perception of its products from fashion to performanceand in the process increasesales dramatically.Another technique Nike has used is to specifically design a productline for a certain market.Nike uses marketing research to determine the lifestyles andproduct usage characteristics of aparticular market segment and then designs products for thatsegment. An example is the Prestoline, which was designed for a certain youth lifestyle. Nikefocused on the lifestyle and designed theproducts around this group. It also used marketing research todetermine the most effective mediato communicate with the target market.Nike launched its “Write The Future” Campaign in 2010 that madeextensive use of socialmedia in partnerships with UTube and Facbook. It celebratedsoccer’s pivotal moments andallowed fans around the world to connect with their heroes. Itfeatured an action-packed filmthat brought together some of the world’s greatest players toinspire soccer lovers and sports fansaround the world. Soccer fans could then use this creative to buildtheir own Facebook campaignand be eligible for rewards. Social media remains an integral partof Nike’s marketing research andmarketing strategy.Because of these methods, the Nike logo is recognized by 97 percentof U.S. citizens, and its
sales have soared as a result. However, Nike faces a newconcern: that it has lost its traditional im-age of being a smaller, innovative company. It also faces futureobstacles in maintaining brand
equity and brand meaning. Continued reliance on marketingresearch will help Nike to meet thesechallenges, associate its brand with top athletes and performance,and enhance its image.Conclusion
Nike used marketing research to build its brand into one of themost well-known and easily rec-ognized brands in the world. Nike’s strategy of celebrityendorsements, its expansion into Europe,
and the resulting stronger association with soccer are some ofthe steps taken by Nike to grow its
brand. In the coming years, as Nike expands to newer markets andcapitalizes newer opportuni-ties, it will have to continue its reliance on marketing researchand continue to associate athletes,
performance, and the brand.
Q. What will be the Introduction and Conclusion of this case study?? NIKE: Associating Athletes, Performance, and the Br
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