Designing shoes was a fantasy for some. Consider the possibility that we can customize and plan with one of the finest brand and make something special and add a personal look to our favorite sneakers. Nike got it going with the launch of Nikeid in year 2000 which allowed the customers to make their own customized versions of there favorite sneakers. This thought of co creation produced an income of 100 million to the company.
A company founded by by Bill Bowerman and Phil Knight at University of Oregon in 1964 initially known as the “BLUE RIBBON SPORTS” is currently world’s top sports brand with total worth of 100.1 billion. Nike could accomplish this position by its creativeness and unique campaigns which included the customers to co create and to be a part of the brand. Nike wasn’t official sponsor of the London Olympics in 2012 yet at the same time sacked 16,000 tweets contrasted with Adidas which burned through a large number of dollars to be an official sponsor and got 9,296 tweets. Catch The Flash was one of the interesting campaigns they had in Vienna.
The explanation behind the achievement of the company is it’s Marketing Strategy which focused on connecting with customers. Nike just knew “Where to play and how to win there” The minute hurdler Liu Xiang turned into the China’s first Olympic medalist Nike launched a television commercial featuring Liu Xiang to enter the Chinese market.
McCarthy classified different marketing activities into marketing-mix tools of four broad kinds which he called the four P’s of marketing: product, price, place, and promotion.
PRODUCT is our most
important marketing tool: Phil Knight
This component of Marketing Mix shows the Brand worth. It portrays the uniqueness over the competition and lets us know that if the organization is watching the trends. NIKE not only watches the trends but is also a TRENDSETTER .
Sports Shoes are the main product from the company.It is likewise known for apparel, equipment and accessories. Continually developing NIKE has created shoes for tennis, b-ball, football and just about for each game with some limited edition articles for Lifestyle series which gave it the edge over rivals. It has more than 100 successful shoes to its name which created history when launched. The most successful shoe ever made by Nike Air Jordan 3.
What Makes It Different?
- Most comfortable shoe comfort level :cloud
- Unique design
- Integrated devices for better training and performance with Nike+
Nike+a gadget used to track has 18 million customers on the planet which was a great accomplishment for the Company.
PRICE: Value-Based Pricing Strategy
The company is brilliant when it comes to pricing. It delivers high end products with HIGH END PRICES. The principle behind this is value-based pricing strategy which is to consider the consumer’s perception of value of the product. Some of the high value products are usually endorsed by the famous athletes or are created in limited editions in collaboration with famous celebrities to increase the VALUE for the consumer and obliviously to put a bigger price tag on the product.
Is Nike for all?
5000$ shoes may seem unrealistic to some but Nike has it and are called Nike Air Mag which were created after the shoes worn by Michael J. Fox in Back to the Future II. Shoes created with famous celebrity Kanya West were also not cheap the price for the first shoes was 215$ whereas the resale value crossed 2000$ and the second was launched which costed 5000$. Although it has produced some expensive Articles the majority of the new launches are afforded by all by which it has created a income of 30,601million worldwide.
Nike operated from 931 stored worldwide in 2015 reaching out to all. It also have tie up with large retailers like Walmart and one can buy it online also so that customer can have access to services anywhere.
PROMOTION : 60 million per year
60 million per year is paid to basketball star Michael Jordan for endorsement. Company relies on advertisements and spends millions of dollars per year for endorsements including famous athletes
- Cristiano Ronaldo 8million
- Kobe Bryant 8million
- Roger Federer 10 million
- LeBron James 10 million
- Derek Jeter 10 million
- Tiger Woods 20 million
Advertising through social media direct marketing and sales promotion are some other tools used for promotion.
Not just athletes
Company’s latest advertisement involved a Indian celebrity Deepika Padukone and previously had Bani J who was a TV star.
Be it the design or tech the sports brand Nike is evolving to the needs of the customer while increasing the comfort that comes along with every product. With the success of latest shoe Roshe run Nike JUST DID IT again.