NIKE

1 Nike Introduction Nike was established as a partnership in 1962. The founders of the company were Bill Bowerman and Phil Knight. The company's primary goal was to break Germany's monopoly of the athletic shoe market by distributing Japanese sports footwear in the American market.

However, with time, the company grew into a multinational corporation that produces and distributes sports-gear and sports equipment. This paper examines Nike company’s vision, mission, and marketing strategies. It also discusses how the company can improve for the future.

Nike Brand Statement and Logo Nike's brand statement is to develop innovative products that inspire athletes globally.

The company believes that as long as someone has a body, they are an athlete. Therefore, everyone is an athlete (Knight, 2018). The official logo of the company is a swoosh sign which symbolizes ease of motion, speed, fluidity, and power.

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Mission and Vision Statement Organizations exist to accomplish their mission, vision, and goals. Nike’s mission statement is to bring inspiration and innovation to every athlete in the world Nike (2018); while its vision statement is to create a sustainable economy for Nike and its consumers where people, profit and the planet align (Knight, 2018). This vision and mission statements enables Nike to act ethically and sustainably to bring solutions towards ensuring that its manufacturing processes are environmentally safe, quality standards are met and that it does not exploit workers.

Environmental Forces Optimal external conditions are crucial to the growth and success of Nike.

Environmental forces present opportunities and threats that may affect the company. For Nike’s continued success it needs a stable political, economic and social environment.

Being a multinational corporation, the trade and tax policies as well as the political climate of the international countries where Nike has locations have to be favorable. The state of the economy in the countries where Nike manufactures and sells its products affects its performance. The growth of emerging markets poses an opportunity for Nike's growth (Jenkins, & Williamson, 2013). Social factors that positively affect Nike's performance are people's attitudes toward sports and physical fitness and increasing awareness about the importance of purchasing authentic, high-quality sports gear and equipment.

Customer Service Management Nike's website ‘nike.com' receives approximately 7 million visitors monthly. It uses the site to inform existing and potential customers about its products. The site also contains an

3 FAQ section where it provides most of the information that customers usually need to know.

Additionally, Nike has a customer care line which enables customers to call for assistance on any issue concerning purchases, returns, complaints or queries. In 2010, Nike launched its Nike Digital Sport (NDS) division. Through NDS, Nike has been able to track the market’s trends and needs by communicating openly and regularly with the customers digitally.

Nike Marketing Expenditure Nike spends a significant proportion of its revenues on marketing activities. One of the reasons its marketing budget is high is its use of celebrity endorsements as a promotion strategy (Silva, 2016). Since the mid-1980s, Nike has used celebrities such as Michael Jordan, Tiger Woods, Serena Williams, and Roger Federer. Between 2014 and 2018, Nike spent an average of $3 billion per year on advertising and promotion costs. It spent this money on sports event sponsorships, celebrity endorsements, digital as well as visual and print media advertisements.

Nike Positioning Nike positions itself as a brand that produces high quality, comfortable and trendy products that enhances an athletic lifestyle. It uses advertisements and promotion strategies that appeal to people’s emotions. For instance, its use of top-performing sports celebrities positions Nike as a brand that is associated with athletic excellence. As a result of its brand positioning, it creates a feeling that Nike gear causes increases performance, and is.

Therefore, one of the reasons why the athletes achieve can achieve their targets (Kotler, & Keller, 2016). It, therefore, positions itself as an inspirational and innovative brand for people of every race, gender, social status or education background. Additionally, Nike positions

4 itself as a premium brand and a status symbol that is relatively high-end, but worth its high price. It sponsors sports events that are most watched such as tennis, soccer, and basketball.

Target Market Nike produces high quality and trendy sports apparel which provide comfort, durability and high performance. It targets consumers of all ages, who want to look trendy and at the same time stay in good physical shape. Nike's target market is people who are conscious about the quality of a product rather than its price. Nike produces sports apparel in most sizes for both men and women and children of all ages. Nike is focused on becoming a brand that is associated with both sports and leisure.

Conclusion Nike is a well-established sports gear and apparel brand which distributes its products globally. Through deploying successful marketing strategies, it has become renown as a premium brand. However, to increase its market share, Nike can reduce the prices of its products without changing the quality of its products to make them affordable to a more significant fraction of the market.

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References Jenkins, W. & Williamson, D. (2013). Strategic management and business analysis.

Routledge.

Knight, P. (2018). Shoe dog. London: Simon & Schuster.

Kotler, P., & Keller, K. L. (2016). Marketing management (15th ed.). Upper Saddle River, NJ: Pearson.

Nike (2018). Retrieved from https://www.nike.com/us/en_us/ Silva, R. (2016). Competitiveness in the real economy. London: Routledge.

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