Nike Marketing Analysis
Boustani
Nike: Maintaining a Promotional Edge
Nike’s initial product advertising strategy of using professional athletes for raising demand through word-of-mouth provided good publicity. However, its selective-demand advertising was mainly focused on high-priced shoes for traditional sports, and ignored newly developed market segments such as aerobics and extreme sports, and new trends such as brown shoes and casual footwear (Etzel, Walker, and Stanton).
Nike launched a successful advertising campaign around its “Just Do It” catch phrase and “swoosh” logo. Nike increased its visibility through vertical cooperative advertising; expanding its product line to include apparel, equipment, and accessories, which led retailers to use the Nike brand to attract customers to their stores. Nike gained a high level of publicity and increased its appeal to both men and women when it signed famous athletes like Michael Jordan and Venus Williams (Etzel, Walker, and Stanton).
Further exposure was gained when Nike promoted its brand near major events, giving the impression that it partly sponsored the events. It also increased its sales promotion through the sponsorship of sporting events and collegiate teams. It gained exposure in extreme sports through cooperative advertising when it partnered with a skateboard manufacturer for the purpose of developing skate shoes (Etzel, Walker, and
Stanton).
Public relations were negatively affected by allegations of child labor in third-
1
Boustani world factories. However, the subsequent negative publicity increased the exposure for its online NIKEiD shoe personalization service. Nike is generating more selectivedemand advertising towards women to increase the revenue share for that market segment. The market for high-priced performance shoes has been flat, while the market for casual and fashionable shoes has increased. Women and teenage consumers have not been targeted by Nike, but the focus has been on active
Nike: Maintaining a Promotional Edge
Nike’s initial product advertising strategy of using professional athletes for raising demand through word-of-mouth provided good publicity. However, its selective-demand advertising was mainly focused on high-priced shoes for traditional sports, and ignored newly developed market segments such as aerobics and extreme sports, and new trends such as brown shoes and casual footwear (Etzel, Walker, and Stanton).
Nike launched a successful advertising campaign around its “Just Do It” catch phrase and “swoosh” logo. Nike increased its visibility through vertical cooperative advertising; expanding its product line to include apparel, equipment, and accessories, which led retailers to use the Nike brand to attract customers to their stores. Nike gained a high level of publicity and increased its appeal to both men and women when it signed famous athletes like Michael Jordan and Venus Williams (Etzel, Walker, and Stanton).
Further exposure was gained when Nike promoted its brand near major events, giving the impression that it partly sponsored the events. It also increased its sales promotion through the sponsorship of sporting events and collegiate teams. It gained exposure in extreme sports through cooperative advertising when it partnered with a skateboard manufacturer for the purpose of developing skate shoes (Etzel, Walker, and
Stanton).
Public relations were negatively affected by allegations of child labor in third-
1
Boustani world factories. However, the subsequent negative publicity increased the exposure for its online NIKEiD shoe personalization service. Nike is generating more selectivedemand advertising towards women to increase the revenue share for that market segment. The market for high-priced performance shoes has been flat, while the market for casual and fashionable shoes has increased. Women and teenage consumers have not been targeted by Nike, but the focus has been on active
Cited: Kirk, Jeremy. “Nike BI Project Seeks Standardization.” IDG News Service 6 Feb. 2006. 8 Feb. 2006 <http://www.itworld.com/App/103/060206nikebi/>. Etzel, Michael., and Bruce Walker, and William Stanton. Marketing. New York: McGraw-Hill, 2004. Nike Foundation. Retrieved February 2, 2006, from http://www.nike.com/nikebiz/nikefoundation/home.jhtml Politi, Steve. “May Bode Go Downhill Fast.” The Star-Ledger 8 Feb. 2006. 8 Feb.