Nike Brand Extension
Matt Junk
January 16, 2015
Nike’s Brand Extensions
Stephen Grothe, Instructor
Consumer Behavior
Upper Iowa University
Introduction Brand extension is defined as “the practice of using a well-known brand name to promote new products or services in unrelated fields” (Collins English Dictionary, 2015). Nike was once a startup company that only manufactured and distributed shoes after Phil Knight founded the company in 1964. Since Nike was founded in 1964, their brand has extended from just manufacturing shoes to sweatpants; the highly popular Dri-fit t-shirts, backpacks, and the new Fuel bands which I will explain their purpose later. Nike seems to keep evolving with the ever-changing market in order to keep up with the competition such as Under Armor and Adidas. There are many people who simply will not wear a certain item if it is not a popular brand name.
The Evolution of Nike Since the day Nike was founded in 1964 in Beaverton, Oregon by Bill Bowerman and Phil Knight by using rubber and a waffle iron to make the sole of the first shoe, Nike has exploded onto the scene as one of the most popular brands on the market. Nike has gone from a few employees working in a garage to thousands of employees across the globe. “Nike directly employs more than 30,000 people across the globe, from designers and marketers to compliance monitors and accountants, to retail employees. In addition, Nike contracts with manufacturers that employ more than 800,000 workers” (NIKE, Inc., 2015).
Nike’s Brand Extension Nike has extended their brand name from running shoes to just about every piece of clothing known to man as well as golf balls, basketballs, sunglasses and now the most technologically advanced product, the Nike Fuel band which tracks the distance of a walk or run, calories burned, time tracking, and new online programs for the Fuel band to show different running styles. Nike know how to keep up with the ever-changing market competition such as
January 16, 2015
Nike’s Brand Extensions
Stephen Grothe, Instructor
Consumer Behavior
Upper Iowa University
Introduction Brand extension is defined as “the practice of using a well-known brand name to promote new products or services in unrelated fields” (Collins English Dictionary, 2015). Nike was once a startup company that only manufactured and distributed shoes after Phil Knight founded the company in 1964. Since Nike was founded in 1964, their brand has extended from just manufacturing shoes to sweatpants; the highly popular Dri-fit t-shirts, backpacks, and the new Fuel bands which I will explain their purpose later. Nike seems to keep evolving with the ever-changing market in order to keep up with the competition such as Under Armor and Adidas. There are many people who simply will not wear a certain item if it is not a popular brand name.
The Evolution of Nike Since the day Nike was founded in 1964 in Beaverton, Oregon by Bill Bowerman and Phil Knight by using rubber and a waffle iron to make the sole of the first shoe, Nike has exploded onto the scene as one of the most popular brands on the market. Nike has gone from a few employees working in a garage to thousands of employees across the globe. “Nike directly employs more than 30,000 people across the globe, from designers and marketers to compliance monitors and accountants, to retail employees. In addition, Nike contracts with manufacturers that employ more than 800,000 workers” (NIKE, Inc., 2015).
Nike’s Brand Extension Nike has extended their brand name from running shoes to just about every piece of clothing known to man as well as golf balls, basketballs, sunglasses and now the most technologically advanced product, the Nike Fuel band which tracks the distance of a walk or run, calories burned, time tracking, and new online programs for the Fuel band to show different running styles. Nike know how to keep up with the ever-changing market competition such as
References: brand extension. (n.d.). Collins English Dictionary - Complete & Unabridged 10th Edition. Retrieved January 14, 2015, from Dictionary.com website:http://dictionary.reference.com/browse/brand extension Burke, M. (2013, February 21). Under Armour Files Lawsuit Against Nike For Trademark Infringement. Retrieved from Forbes.com: http://www.forbes.com/sites/monteburke/2013/02/21/under-armour-files-lawsuit-against-nike-for-trademark-infringement/ Collins English Dictionary. (2015, January 14). brand extension. Retrieved from Dictionary.com: http://dictionary.reference.com/browse/brand extension Nike. (2015, January 16). WHAT IS NIKE DRI-FIT? Retrieved from Nike.com: http://help-en-us.nike.com/app/answers/detail/a_id/204/~/what-is-nike-dri-fit%3F NIKE, Inc. (2015, January 16). People and Culture. Retrieved from Nikebiz.com: http://www.nikebiz.com/crreport/content/people-and-culture/6-1-0-our-workforce.php?cat=our-workforce