The story of success started at the University of Oregon in the USA in 1962, where Bill Bowerman, a coach specialized on competitive sports, and one of his students, Phil Knight as a middle-distance runner, realized a risky idea about bringing low-priced, high-tech athletic shoes from Japan to the USA in order to sell them under their own brand. The goal was clear: dislodging German domination of the US athletic footwear industry and improving the athletes’ individual performance.
NIKE was based on a strategy in which the production costs were low and the products’ prices competitive but profitable. the production-costs are 10 percent or less of the price for which the good can be bought; the other 90 percent are due to the success of a perfect brand-marketing. So many people buy an expensive pair of sneakers from NIKE if they can get one for half of the price from an unknown manufacturer? The answer is hidden in the last component of the marketing-mix instrument – the promotion.
As NIKE does not produce its goods by itself, the company focuses on its brand-caring. NIKE is the name of Greek goddess and it gave the company its new face.
NIKE marketing is incomplete without two key components: the “swoosh” logo and the “Just Do It” slogan. You’ll find the task almost impossible. The slogan came about in 1988 as part of a marketing campaign that sought to differentiate Nike from competitors, such as Reebok, who were focusing on the aerobics craze. Nike’s tough, hard-hitting campaign was not targeted at any specific age or gender segment. The motivational nature of the slogan helped establish Nike as not only an athletic brand, but also a lifestyle and fashion statement.
By creating synergistic partnerships with top athletes and teams, Nike established itself as an aspirational brand. Beginner and intermediate athletes, as well as fans, have an emotional affinity for Nike, thanks to the brand’s relationships with professional athletes.
Innovation and Optimization
Including emerging sports technologies, most recently in the form of the Nike+ platform and FuelBand app. Digital products has significant benefits on the marketing side. As customers engage on community pages and upload data about their activities, location, and interests, they offer valuable information that Nike’s marketers can leverage to segment their customers and create highly segmented campaigns. The company has also invested heavily in social media in the last 10 years, engaging customers in communities built around specific sports and events around the world.
Understanding how to make an impression
Many established companies have rather timid advertising campaigns, preferring to rest on their laurels and history of success. Nike is not one of those companies. Instead, it’s constantly tinkering, innovating and pushing the envelope to create campaigns people will talk about. From Nike’s early success with commercials featuring Mars Blackmon proclaiming “It’s gotta’ be the shoes!” to the brutally honest black and white ad showing an emotional Tiger Woods being chastised by his father, Nike has never been afraid to take chances with its ad campaigns. The company makes commercials you don’t forget.
Don’t even pretend you don’t know Nike’s slogan: Just do it. It’s been the same for nearly 30 years, and the logo (the Nike “swoosh”) has been around even longer than that. And despite the fact that Nike co-founder and chairman Phil Knight admitted he “didn’t love” the swoosh in the beginning, he stuck with it. It is now one of the most easily recognized logos in the world, even being used in a silly anachronistic manner in the 2001 film A Knight’s Tale.