Nike

Consumer
Behavior
Submitted to: Prof. Meeta Vora
 Presented By: Shaishav Dabhi

Ashok Chauhan

Arjun Toliya

Content

1. A brief history of Nike

2. Segmentation, Positioning and Targeting of Nike
3. Nike’s Research Program
4. Corporate Social Responsibility
5. The Marketing Mix of Nike
6. Nike SWOT Analysis
7. Brand : Nike
8. Product Mix
9. Culture in Organization “Nike”
A Brief History of Nike

The Nike athletic machine began as a small distributing outfit

located in the trunk of Phil Knight's car. From these rather
inauspicious beginnings, Knight's brainchild grew to become the
shoe and athletic company that would come to define many
aspects of popular culture and myriad varieties of 'cool.'

Nike emanated from two sources: Bill Bowerman's quest for

lighter, more durable racing shoes for his Oregon runners, and
Knight's search for a way to make a living without having to give
up his love of athletics. Bowerman coached track at the University
of Oregon where Phil Knight ran in 1959. Bowerman's desire for
better quality running shoes clearly influenced Knight in his
search for a marketing strategy. Between them, the seed of the
most influential sporting company grew.

The story goes like this: while getting his MBA at Stanford in the
early '60s, Knight took a class with Frank Shallenberger. The
semester-long project was to devise a small business, including a
marketing plan. Synthesizing Bowerman's attention to quality
running shoes and the burgeoning opinion that high-quality/low
cost products could be produced in Japan and shipped to the U.S.
for distribution, Knight found his market niche. Shallenberger
thought the idea interesting, but certainly no business jackpot.
Nothing more became of Knight's project.

Cut to 1963. Phil Knight traveled to Japan on a world-tour, filled

with the wanderlust of young men seeking a way to delay the
inevitable call of professional life. Seemingly on a whim, Knight
scheduled an interview with a Japanese running shoe
manufacturer, Tiger--a subsidiary of the Onitsuka Company.
Presenting himself as the representative of an American
distributor interested in selling Tiger shoes to American runners,
Knight told the businessmen of his interest in their product. Blue
Ribbon Sports--the name Knight thought of moments after being
asked who he represented--was born. The Tiger executives liked
what they heard and Knight placed his first order for Tigers soon
thereafter.

By 1964, Knight had sold $8,000 worth of Tigers and placed an

order for more. Coach Bowerman and Knight worked together, but
ended up hiring a full-time salesman, Jeff Johnson. After cresting
$1 million in sales and riding the wave of the success, Knight et.
al. devised the Nike name and trademark Swoosh in 1971.

By the late '70s, Blue Ribbon Sports officially became Nike and
went from $10 million to $270 million in sales. Katz (1994)
describes the success via Nike's placement within the matrix of
the fitness revolution: 'the idea of exercise and game-playing
ceased to be something the average American did for fun,'
instead Americans turned to working out as a cultural signifier of
status. Clearly, the circumstances surrounding the shift are not
this simple; it is one of the aims of this project to discover other
generators of popular attention to health.

If Nike didn't start the fitness revolution, Knight says, "We were at
least right there. And we sure rode it for one hell of a ride" (Katz,
66). The 80s and 90s would yield greater and greater profits as
Nike began to assume the appearance of athletic juggernaut,
rather than the underdog of old. "Advertising Age" named Nike
the 1996 Marketer of the Year, citing the "ubiquitous
swoosh...was more recognized and coveted by consumers than
any other sports brand--arguably any brand" (Jensen, 12/96). That
same year Nike's revenues were a staggering $6.74 billion.
Expecting $8 billion sales in fiscal 1997, Nike has targeted $12
billion in sales by the year 2000.

Few can question Nike's financial hegemony. But nearly $7 billion

in revenues clearly begs the question, what sells these shoes? It
is my assertion that Nike's power to sell comes from deep-rooted
yearnings for cultural inclusiveness and individual athletic
accomplishment. These seemingly paradoxical desires collide in
consumer’s hearts and minds and produce the unyielding zeal for
Nike shoes and apparel. Unfortunate effects of this zeal can be
found in the rash of Nike apparel killings in 1991 and the
profusion of Nike collectors and WebPages designed around the
company's products. Nike appeals to these disparate elements of
Americans' personalities through an advertising philosophy that
is, at once, simple and sublime. In addition, Nike's practice of top-
level athletes promoting their products appeals to countless ages
and creeds as a way to identify with and emulate their athletic
heroes. These forces work powerfully upon the individual
consumer, but one should not lose sight of the cultural context in
which the individual moves.
Segmentation, Targeting and
Positioning of Nike

Nike has been in the market for a long period now. Thus it has
already soughted out the STP analysis that it would use to
promote and sell its products.

Market Segments:

The market segments that Nike can mainly differentiate are high,
medium and low end customers with varying income levels. Thus,
Nike needs to segment on various fronts such as economic,
demographic, geographical differentiations.

Economic segmentation:

High, medium and low income levels that can be clubbed with
there lifestyles of high, medium and low end customers.

Demographic segmentation:

The company can segment the market into age, gender and class
segments.
Geographical segmentation:

The company can segment the market into segments of north,

west, east and south.

Target Market:

The company needs to target the market as per the brand image
and equity in different markets. Thus, the company has targeted
the market of high-end, high income level between the age of 16-
55 with a pan India location. Thus the market segment it is
targeting is quite essential to differentiate itself from its
competitors i.e. Reebok, Puma, Fila and local brands like Bata.

Positioning:

The brand Nike has positioned itself in the minds of the consumer
as a high-end product which is quite costly but gives the value for
money with its service, quality and designs.

All this analysis provides Nike with the customer satisfaction and
thus loyalty that it needs to achieve high volumes and
profitability.
Nike’s Research Program
Nike has been in the Research & Development in the market for
quite a long time. The research that it has been carrying out
relates to the earlier STP analysis which allows Nike to create a
market for its products.

Also Nike has a history of constantly innovating new products and

attain the first-in-the-market advantage and charge a premium
price. Nike spends a lot out of its revenue into R & D of new
products and designs to constantly stay ahead of the competition.

Nike conducts both qualitative and quantitative research for

gathering vital information for its products and new launches. The
qualitative research refers to the consumer purchasing behavior
like why, how, what do they decide on the basis of Nike’s image
as well as products. The quantitative research deals with what are
the results of the company i.e. revenue against cost and other
financial analysis.

Nike indulges into research analysis of consumer markets as well

as competitor’s analysis and thus understanding the consumer
behavior and their buying pattern.

Nike does extensive research in the attitudes and tastes and

preferences and their changing pattern by having questionnaires
filled up by its customers online as well as personally. It also
indulges into personal interviews with its valued-customers to
make some necessary changes that they might require. This is
how the company came to be recognized as a high valued by its
customers and thus attain maximum loyalty. Also the company
came up with the idea of customization of their products online
through this type of research itself which has yielded high results.

Nike products undergo a rigorous testing process that covers a

huge variety of testing surfaces (regular basketball hardwood,
soccer turf, a running track, and endless outdoor testing on
various terrain), and takes into account four major factors,
geography, gender, age, and skill level as well as profession. All of
this combined with the results of about a dozen other tests are
use to develop new, user-friendly products like the Nike Shox,
Nike Air, and other Nike basketball and running shoes. This is
mainly because Nike needs to constantly be aware of the changes
in the consumer buying behavior which can only be done through
various researches. Nike also utilizes information from various
other research analysts like http://www.sneakerhead.com/nike-
research.html.
Corporate Social Responsibility
undertaken by Nike

Nike has been in the market for over 5 decades now and has
understood the importance of maintaining the environment
through corporate social responsibility.

The firm has been in news for last decade for its innovativeness to
develop such facilities that are waste free and use renewable
sources of energy.

A statement by Sarah Savern, director of corporate responsibility

horizons, Nike Inc. states “We have a target to be climate neutral
in Nike owned facilities and business travel by 2011.By 2015, we
aim to be climate neutral in all Nike Inc. facilities. A 17%
reduction in footwear waste by 2011. A 30% reduction in
packaging and point-of-purchase waste.”

As per the current CEO Mark Parker, “We see corporate

responsibility as a catalyst for growth and innovation.” Also, “We
are challenging our assumptions, evolving our perspective and
building a new approach.”
The Marketing Mix Adopted By Nike

Nike has been developing its marketing mix consisting of the four
P’s i.e. product, price, place and promotion. Thus Nike has
soughted out the mix that will best help it achieve its goals of
maximum profitability.

Product:

Nike takes into consideration various aspects of its products as it

is in a product or consumer market. Thus it needs to have
extensive range of products to withstand its competition.

Nike provides features, designs, various brands, packaging along

with some extra features like warranties and after sales service.
This all aspects can be included in the product analysis.

Nike has various products as well as brands that cater to different

market segments which varies according to requirement of
particular segments as well as individuals. Also they offer
customized designs of their products wherein customer designs
their product as per their requirements.

Eg: Nike provides customization of their shoe range on their site

Nike.com.

Nike also offers a one year warranty for their products. Also they
provide an option for replacement in all their products if any
defects or problems occur after purchase which is a part of after
sales service.

Nike has been designing world class shoes for over 5 decades. Yet
it has a tendency of changing the designs and patterns after a
particular period or quantity. It also has a range of classic Nike
shoes which are available all the time.
Nike also provides packaging with collaboration with other
brands.

Eg. Selling i-pods with their jogging shoes range.

Price:

Nike has a high-end consumer market with high disposable

income asking for better service and satisfaction as there target
market. Thus their pricing strategy is to provide value at high cost
with maximum profitability. Thus they have high margins but this
can be justifiable due to its advertising and research costs.

Nike also provides with discounts during various festive seasons

on its products like Diwali in India. This is also a part of its pricing
decisions.

Place:

Nike is a multi-national organization. Thus it needs to develop a

wide range of distribution channel which can support its retail
business. Thus Nike has some of the following distribution outlets:

Retail: Nike sells through its retail stores, brand outlets, exclusive
showrooms as well as hyper markets in metropolitan areas.

Online shopping: Nike also provides with online shopping facility

for its various products and services.

Distributors: Nike has a wide coverage of its distributors across

the globe to support its retail outlets.

Factory outlets: Nike also sells its merchandise through factory

outlets that sell some of its products at a discounted rate.

Promotion:
Nike is extensively involved in Promotion and advertising. Nike
uses advertising, sales promotion, advertisement campaigns,
public relations and publicity and sales offers to build awareness
and brand image and loyalty.

Nike endorses various celebrities such as athletes, football

players, cricketers, tennis etc.

Eg. Roger Federer, Tiger Woods, Ronaldinho, Ronaldo.

Nike also endorses various teams as well as clubs such as

Barcelona Football Club.

It places its products in various movies and shows using product

placement.

Nike also sponsors various events such as tour de France, FIFA

World Cup, Delhi Marathon and various others.

Nike promotes its products also utilizing other products brand

equity such as promoting its range of shoes alongwith I-pod.

The “Just-do-it” campaign of Nike has been since nearly 3

decades and has got them worldwide fame.

Nike also advertises by using various celebs in their

advertisements to increase brand loyalty while utilizing the brand
image of such celebs.

Nike has also gone to the extent of sponsoring a stadium called

“the Alliance Arena”, which is by far the biggest football ground in
the whole world.

Thus Nike can be viewed as an organization that utilizes

advertisements extensively for promotions which can be viewed
from its advertisement budget of approximately US $ 150 million.
Nike SWOT Analysis
STRENGTHS:

Contracts with Universities: Nike has contracts with

universities nationwide to supply apparel for athletes. These
university sponsorships are beneficial to Nike because they give
the company the right to sell merchandise with these schools’
logos, tap into the market of collegiate sports apparel, and form
relationships with young consumers.

Analyst Confidence in Stock: According to press releases

issued by Bloomberg, analysts from Bank of America, CSFB, and
Wells Fargo recently called Nike a “buy.” After a lackluster
financial year, this news could potentially affect stock price in a
positive way.

Michael Jordan Returns to Basketball: Nike received press

coverage throughout Jordan’s decision-making process and
continues to make press regarding the impact of Jordan’s return.
Nike was able to capitalize on this strength by debuting a new
shoe – the Air Jordan XVI – and by making new commercials with
Jordan that will hit the airwaves soon. Michael Jordan is perhaps
the most recognized athlete in the world and markets Air Jordan
apparel for Nike.

Corporate Responsibility Report: According to the Nike Web

site, in October Nike released its first Corporate Responsibility
Report. The document states that Nike’s focus points, in terms of
corporate responsibility, are the environment and labor. Since
these are two areas that cause protests against Nike, it is
important for Nike to label them as areas to focus on and for Nike
to give the public this information.

Strict Environmental Standards: According to Bloomberg,

Nike has accepted strict environmental standards to comply with
by 2005. These standards were part of the Kyoto treaty that
President Bush refused to sign and are supposed to help in the
fight against global warming. Nike has made other efforts to be
energy efficient; its office in the Netherlands is the most energy
efficient office in that country by 35%. Nike also uses organically
grown cotton, promotes the Eco-class program with Delta Airlines,
and founded N.E.A.T. in 1993 to, as the Nike Web site maintains,
“Reduce Nike’s impact on the planet.”

Reducing Operating Costs: In a report from Business Wire, Nike is

taking advantage of the new cost-cutting methods of electricity
management from Portland General Electric. This method allows
Nike to continually get an update on its energy use and see if
there are any problem areas. Nike is utilizing technological
advance to streamline operations at its facilities, increasing
productivity and cutting costs.

Philanthropy: Nike is committed to philanthropic endeavors

such as “Reuse a Shoe,” “Project Dreams” and “Habitat for
Humanity.” These efforts, along with other programs such as the
“Shadow” program and the Bower man Foundation, show Nike’s
commitment to the community. Nike employees also benefit
from these philanthropic opportunities. Recently, Nike continued
to give back to the community by giving $1 million to the World
Trade Center Disaster.

The Nike “Swoosh”: One of the biggest strengths of Nike is its

brand identification and corporate identity. The Swoosh
resonates in the minds of consumers who recognize that logo as
representing quality, first-rate athletic apparel. The Nike Swoosh
is recognizable and identifies all Nike products and sponsored
universities.

Nike Icons: Nike uses athletic icons and heroes to market its
company goods. Examples of Nike icons are: Michael Jordan,
Tiger Woods, Mia Hamm, Marion Jones, and Lance Armstrong. Not
only do these athletes adorn print and television advertisements,
but they also appear on the Nike Web site and are called “Our
Heroes.” This is strength because consumers begin to identify
the athlete with Nike. Nike’s popularity is connected to the
popularity of these athletes.

Event Marketing: Nike successfully uses event marketing in the

realm of fitness to bring more brand recognition to its name.
These sponsorships ensure that consumers see the Nike Swoosh
in places other than television advertisements, on products, and
in stores. Nike sponsors fitness challenges at universities and
also sponsors nationwide athletic tournaments, including some for
charity.
Niketown: Nike town stores, located in 15 major cities across the
world, demonstrate that Nike has become a part of American and
world culture. These famous stores represent the true strength of
the Nike brand and the popularity of the athletes who advertise
Nike apparel.

WEAKNESSES:

Labor Practices: Activist groups and student organizations have

made Nike a symbol of labor exploitation. These groups blame
Nike for poor conditions in its third world factories, under-paying
workers, employing children, and ignoring the basic rights of its
workers. Nike is often in conflict with labor unions; most recently,
Nike bucked heads with a factory workers’ union in Mexico.
Accordingly, the public associates Nike with sweatshop labor and
accuses it of sidestepping human rights in order to secure the
greatest profit.

Advertising: Nike spent over $1 billion on advertising, sports

marketing, and promotional spending in 1999, and, although
popular, some of its advertising strategies were considered
controversial, according to an article titled “Channel Conflict.”
Feminist groups accusing Nike of degrading women have
attacked Nike commercials that stress winning above everything
else and show women submissively. Although the majority of
Nike’s commercials are cutting edge and creative, those very
commercials can be weaknesses in Nike’s reputation.

Consumer Cost: Nike has been accused of outrageously

marking-up prices on many of its products to cover the costs of
advertising and sponsoring. The public feels that Nike
overcharges its consumers and should lower prices. According to
an article from the Graduate School of Business at Stanford
University, a shoe whose net factory price is $24.71 is sold retail
by Nike for $100.

Endorsements: The public questions the amount of money that

Nike spends on sponsoring athletes. People do not agree with the
multi-million dollar, multi-year contracts that Nike extends to
athletes such as Tiger Woods, Ken Griffey Jr., and Michael Jordan
and are disillusioned with Nike’s preoccupation with these
athletes.

Global Community and Outsourcing: Nike’s efforts toward

global expansion have become a weakness in its reputation. Nike
has operated in the Asian region for 25 years and uses
subcontractors throughout the globe to manufacture its products.
Factories in China, Indonesia, Vietnam, Italy, the Philippines,
Taiwan, and South Korea produce the majority of Nike goods.
Nike has little control over its extended product line because it is
such a large company with the majority of its operations
overseas. Additionally, many people in the United States see
Nike’s outsourcing as taking away jobs from Americans.

OPPORTUNITIES:

Wide Range of Products: Nike not only has the ability to

succeed in the basketball shoe market, but in virtually every other
athletic market from golf apparel to women’s workout gear. This
diversity of products presents Nike with a great opportunity – to
build up strength in all of its product lines and also to be flexible
when the market shifts, making demand in some areas higher
than others.

Winter Olympics: This year’s Winter Olympics, in Salt Lake City,

Utah, will provide excellent opportunities for Nike to advertise.
The Winter Olympics will also bring publicity if Nike-sponsored
athletes are competing in events, displaying the Nike Swoosh all
over the world. Nike has been a major contributor to many of the
past Olympics as well. In Sydney, for instance, Nike designed
over 2000 athletes’ uniforms in 25 Olympic sports.

Foreign Market: While Nike has become a major part of

American culture, there is international strength in the Nike
brand. According to one Nike press release, worldwide orders for
Nike products are up 6%. This is an opportunity because it means
Nike can expand globally and depend less on the American
market for its successes or failures.

NIKEgoddess Opened in Newport Beach, California: This

marks Nike’s expansion into the women’s apparel market.
Because women wear athletic apparel for more than just working
out, this is an opportunity for Nike to jump into the mainstream
clothing market.

Hype of Advertising: Nike’s advertisements make waves.

People enjoy them and wait for new ones. Nike’s newest
advertising campaign is “Enjoy the Weather,” which features
athletes conquering weather conditions to perform their sport.
The hype of Nike advertising brings with it the opportunity to
reach the public through the promotion of Nike’s newest
advertising endeavor.

Expansion into Outdoors Clothing: The expansion into

outdoor clothing is an opportunity for Nike because this will allow
Nike to become more of a part of the apparel market. The fitness,
innovation, and technology clothing line keeps in Nike’s tradition
of providing superior products.

Web site: Nike’s massive Web site will prove to be an

opportunity for Nike consumers to get up-to-date news coverage
and to buy into the online purchasing market. It is one of the
most comprehensive and interactive sites on the Internet. Nike
should be able to capitalize on its Web site and emphasize those
issues that Nike publics would not otherwise be exposed to by
other media.

THREATS:

Las Americas: Nike is funding part of the first-ever privately

funded U.S.-Mexico port of entry into the United States. Nike’s
involvement in this project could open them to public criticism
concerning immigrant labor. Additionally, in the wake of the
events of September 11, Americans are wearier of foreigners and
more concerned with homeland security. The bridge might
threaten Nike’s reputation.

University Campus Groups: Student groups are gaining

strength and becoming a larger presence on university campuses
across America. For example, an article stated that the University
of Connecticut decided to allow students with protest signs to
attend athletic events only after the school was approached by a
student organization requesting this measure. If Nike cannot
reconcile its differences with student groups, it will face more and
more threats to its reputation as these groups gain more and
more of a following on campuses.

Competition: According to various Web sites, Nike competes

with Converse, Fila, Adidas, New Balance, and Reebok. Nike
currently dominates the market, but these companies pose a
potential threat to its reputation. If Nike cannot stay one step
ahead of these companies in terms of product design and
customer satisfaction the corporation could flounder. Reebok, for
instance, has already taken over Nike’s contracts with the WNBA
and the NFL.

Industry Trends: In the past, Nike has been unable to keep up

with changes in the industry. According to a report concerning
Nike’s weaknesses, the corporation was one of the last athletic
footwear companies to move into e-commerce and was late
recognizing other trends in the market. Nike can ill afford to be
viewed as a complacent company and cannot let this threaten its
reputation.
Manufacturing Network and Global Economy: Nike Inc. is the
parent company of numerous subsidiaries and is imbedded in an
intricate global manufacturing network. Additionally, Nike relies
heavily on the global economy to succeed. What is more, the
corporation grew so fast that it developed organizational
dilemmas, causing Phil Knight to admit in a news release “four
years ago, we (Nike) had outgrown our ability to manage the
business.” If Nike and its publics cannot understand the
intricacies in Nike’s corporate system, they might lose faith in the
organization.

Management: Since its conception in 1964, Phil Knight has held

close control of the company and “ruled with a mix of closely
allied senior managers,” according to a business report entitled
“Channel Conflict.” Nike management has also gone to
tremendous lengths to identify with competition and victory.
Management wants to be in complete control; however, this is not
always a positive in the eyes of stakeholders and could threaten
its reputation.

Internet Boom: An Internet search with the phrase “anti-Nike”

showed thousands of links to anti-Nike Web sites appear. With
the click of a mouse, anyone without any accreditation or
legitimacy can post anti-Nike sentiment or have access to anti-
Nike material. This has made it easier for activists to express
their negative opinions of Nike and is making it harder for Nike to
overcome some of its less flattering reputations.

Lawsuits: Nike has been involved in many lawsuits that also

threaten its reputation. Most recently, the United States Court of
Appeals for the Second Circuit affirmed the dismissal of a case
against Nike and St. Johns University by a Mr. Keady. According
to a report by Vada Manager, Director, Global Issues
Management, “Mr. Keady had made numerous attempts to
discredit Nike’s considerable efforts at improving conditions in the
factories and communities around the world where our products
are made.” Although Nike won the lawsuit, Keady’s efforts, and
others like them, to discredit Nike pose a threat to the strides it
has made in the way it does business.

Branding: The essence of the business

Many people view branding as purely a logo or a name; however

branding is far more than this. A brand should capture the true
meaning of the business and is created jointly by the efforts of
business and through consumer’s perceptions. Many of these
perceptions will be given to the consumer initially by the
business. However, in some situations the perceptions can arise
from situations outside the business’s control, for instance
through bad press.

To explore this idea think about all the attributes you associate
with:

At a recent workshop the logo provoked the following comments:

competition, physical activity, quality, and role model, expensive,
slave labor and modern. Some of these attributes will be the Nike
brand; others are the result of consumer perceptions created by
bad press, quite possibly resulting from ill-thought out
management decisions.
 Mission

Why do you do
what you do,
beyond the
money?
Product
Vision
What do you
actually do? Were do you
plan to be in the
We produce future? Bigger,
beef etc more
specialised etc

Brand
Essence
Values
Positioning
What will you
How do you
never
want to be
compromise
seen?
on?
Value for
Style Quality,
money etc
provenance, etc
How do you
interact with
our customer?

Relaxed,
business-like
etc
Branding: powerful marketing mechanism used by Nike

• Leads to higher and more consistent product

quality.

• Increases innovation by giving producers an

incentive to look for more new features that can be
safeguarded by the patent.

• Branding results in more product variety and

choice for consumers.

• Branding provides consumer information about

products and where to find them.

Brand Image

A strong brand creates a preference to purchase and an inclination to

continue purchasing (brand loyalty).

We most commonly think of branding as something the big guys do with

their large ad budgets and extravagant television commercials. In recent
years some observers have noted that branding is losing its power. We see
more and more people buying generic prescriptions over the label brands.
"Would generic be ok with you sir?" But in truth, when you go to buy a new
vehicle, don't you consider the brand? Would you buy a $18,000 generic
brand over a $22,000 Ford?

As a small business owner what should you do? The concept of branding is
an ideal method of forcing you to focus on what it is that you do, what you
want to do, and what you want to become. To create a brand you must
develop a set of guidelines for your business and identify how you want
your business perceived. How do you want to be seen by the public?
You might think that your brand image is your logo. Like the Nike logo, or
the Disney logo, or any other famous logo. But in truth your brand image is
every customer/prospect's interaction with your company that creates an
impression. It's your company's character. It's a conglomeration of
interaction and observation by people outside your organization: how your
phone is answered, the quality of customer service, how your trucks look,
or even how your web site looks. It's what makes your company unique
among the hundreds of competitors.

Your brand image should communicate the difference between you and the
competition— your reason for being. Your brand image should reinforce
your corporate message so that it helps make you stand out in a crowd of
look-a-likes.

Brand equity

• Brand equity is defined as the positive differential effect

that knowing the brand name has on customer response to
the product or service.

• Brands represent the consumers’ perceptions and feelings

about products and their performance.

• The real value of branding is the ability to capture consumer

preference and loyalty.

• Brands vary in power and value and have varying degrees of

brand awareness, brand preference and brand loyalty.
 Brand personality

Personification.

Michael Jordan

Put Nike on the map

– 1984-1985 Nike saw a decrease in their earnings for the

first time ever

– Influenced them to make their first specialty basketball

shoe

– Since then, Michael and Nike together have generated

billions of dollars in revenue

– “World Sports Hero No. 1”

– Jumpman logo is one of the most easily recognized

symbols throughout the world
Tiger Woods

The newest Nike sensation

– Estimated that Nike paid him $40 million

– More attention than Michael Jordan and Bo Jackson

– 3 pg. ad in Wall Street Journal

– 30- and 60- second TV spots

Aired during college football, major league baseball, the U.S.

Open, SportsCenter and Monday Night Football
Consumer Behavior and Managerial Issues

Nike.com is by all means a great place to do online shopping

but I found that it can be just as good for the consumer who
wants to do there shopping offline. With the many online
departments and adjustable features you can decide what you
want and then use the store locater to get directions to the
nearest retailer.
Nike uses secured socket layer technology to ensure you
that your credit information is secured.
Nike also uses cookies as an information gatherer to see
what your preferences or tendencies may be, which enables them
to supply a better service to there customers. If you don’t want
your information to be used in this form Nike also shows you how
to deactivate cookies or even how to opt-out of receiving e-mails
for them.
In conclusion the group thought Nike.com was a really well put
together web site, while some may find it a little difficult to
navigate, it has great customer service to help you, and many
features to keep there customers happy and searching there site
for long periods of time.
Nike: Porter’s Five Forces

Product Mix
 A product mix is the set of all products and items that a
particular seller offers for sale to buyers also known as product
assortment.

• Product Width

It refers to how many product lines the company carries.

• Product line

A product line is a group of products that are closely related

because they perform similar functions

• Product length

It refers to the total number of items in its product mix

• Product depth

It refers to how many products are offered of each product

line.

Product mix of Nike

• Footwear

• Studs for Striker

• Mid fielders

• Defenders

• Apparel
 • Headwear

• Tops/Polo

• Jersey

• Jackets

• Shorts

• Shocks

• Equipment

• Ball

• Bags

• Watches

• National Team Gear

• Jersey for Brazil, England, etc.

• Club Gear

• Club Jerseys like Man U, Real Madrid, etc

Culture in organization “Nike”

A culture of any organization can be viewed as the shared
cognitions, values, norms and beliefs. Thus they function as
symbols of a society or subgroup. Thus every organization has its
own culture and values on which they perform.

Nike is seen as an organization of innovativeness and health

conscious and fitness oriented organization.

Nike can also be viewed as an organization promoting hard work

and young talents which is communicated to the customers
through its advertisements also like ads of Ronaldinho, Rafael
Nadal etc.

Nike also has a culture of promoting high achievers so as to keep

an image for the organization itself.

Nike’s culture is spread over all its Nike Inc. facilities all over the
world. Thus it is culture has been affected by cultures of various
countries and influenced by there subcultures too as it is the
same people that for the organization that live in the society too.