The amazing story of nike

The amazing story of NIKE

When did Nike originate?Founded in 1964, as Blue Ribbon Sports, by Bill

Bowermann and Phil Knight and officially became Nike, Inc. on May 30, 1971.

Company’s main focus was on providing HIGH quality running shoes designed for

ATHLETES by ATHLETES

How and where did it taste it

first success?

Nike believed in a ‘pyramid of influence’ in which the preferences of a small percentage of top athletes influenced the product and brand choices of others.

First breakthrough came when they signed up then rookie Michael Jordon in 1985 and marketed its Air Jordon line of basketball shoes

• 1988 : Nike aired the first ads in its $20 million “Just Do It” campaign.

• Used segmentation strategies to promote its brand overseas in Europe.

• Nike tried to penetrate into the overseas markets by deeply involving with the target segments.

How did Nike dominate sports market and left its competitors behind?

1. CampaignsNike teamed up with seven time Tour de Fance Champion to sell Nike products and help him with the campaign

2.Endorsements

Endorsing sportspersons who carry the symbol of victory

3. EVENTS

Huge event which drew 780,000 participants from all over the world in 2008!

4. Ads

5. Acquisitions

What are the pros, cons and

risks associated with Nike’s core

marketing strategy?

• Superior and innovative products

• Endorsing the right Sportspersons

• Proper Segmentation

Pros

Cons and Risks• Ever increasing

competition

• Huge number of fake products

• Huge expenditure in marketing of new products

If you were ADIDAS,

how would you compete

with NIKE?

• Target into areas in which Nike is weaker, for example, emerging markets and create high brand equity.

• Price compete directly with Nike, keep prices a bit lower than Nike for similar products

• Bring products diversity

• Effective use of ads and social media to market the products

Summary

• When and how Nike was established

• How did Nike capture the markets around the world

• The two important questions related to Nike

Disclaimer

Created by Gaurav Bansal, during a marketinginternship by Prof Sameer Mathur, IIM Lucknow