Nike case summary
Nike
Nike was founded in 1964 by Philip Knight and Bill Bowerman. They started to design shoes that were lighter, better padded, and featured waffle like patterns in their rubber sole. At first not much commercial success. After that they started importing low cost, high quality running shoes out of Asian countries.
A deal was made with Onitsuka to import these hoes to the US, there were sold under the brand name ‘Blue Ribbon Shoes’ (BRS). Their initial shipment were only 200 shoes.
By 1964 BRS had sold 1300 pairs shoes with total revenue of US$ 800.
In 1971, BRS started manufacturing and selling its own line of shoes apart from the ones imported from Onitsuka. Their name employee, Jeff, named the new line of shoes ‘Nike’.
In 1978, BRS was officialy renamed Nike Inc. At this this Nike also started to advertise heavily and started to use celebrity endorsements for its products.’ Nike started to sell T-shirts with the Nike name and logo printed across them in 1972. This marked its entrance into the apparel business. Sales grew from 10 tot US$ 270 million in the first half of the 1970s.
Hereafter nike developed a new strategy; the pyramid of influence. This suggested that if the company concentrated its marketing effors on people who were at the top of the pyramid, the effects would trickle down to the lower levels. Customers base + Sales +.
In 1980, Nike was listed on the NYSE, it also established Nike International Ltd. For expanding in the overseas market. Company introduces a new punch line for the brand – just do it – which became extremely popular.
Nike by 2011; presence in footwear, sportswear and sport equipment. Revenue should grown from 28 20 US$ 30 billion in 2015.
Past marketing initiatives
Initially followed traditional marketing strategies.
Space in newspapers and magazines
Cooperative arrangements with its local retailers; advertising in local newspapers with discounts.
Didn’t enhance the companies images as quality shoes
Nike was founded in 1964 by Philip Knight and Bill Bowerman. They started to design shoes that were lighter, better padded, and featured waffle like patterns in their rubber sole. At first not much commercial success. After that they started importing low cost, high quality running shoes out of Asian countries.
A deal was made with Onitsuka to import these hoes to the US, there were sold under the brand name ‘Blue Ribbon Shoes’ (BRS). Their initial shipment were only 200 shoes.
By 1964 BRS had sold 1300 pairs shoes with total revenue of US$ 800.
In 1971, BRS started manufacturing and selling its own line of shoes apart from the ones imported from Onitsuka. Their name employee, Jeff, named the new line of shoes ‘Nike’.
In 1978, BRS was officialy renamed Nike Inc. At this this Nike also started to advertise heavily and started to use celebrity endorsements for its products.’ Nike started to sell T-shirts with the Nike name and logo printed across them in 1972. This marked its entrance into the apparel business. Sales grew from 10 tot US$ 270 million in the first half of the 1970s.
Hereafter nike developed a new strategy; the pyramid of influence. This suggested that if the company concentrated its marketing effors on people who were at the top of the pyramid, the effects would trickle down to the lower levels. Customers base + Sales +.
In 1980, Nike was listed on the NYSE, it also established Nike International Ltd. For expanding in the overseas market. Company introduces a new punch line for the brand – just do it – which became extremely popular.
Nike by 2011; presence in footwear, sportswear and sport equipment. Revenue should grown from 28 20 US$ 30 billion in 2015.
Past marketing initiatives
Initially followed traditional marketing strategies.
Space in newspapers and magazines
Cooperative arrangements with its local retailers; advertising in local newspapers with discounts.
Didn’t enhance the companies images as quality shoes