PowerPoint Presentation

Nike Advertising strategy

Nike Inc. was founded in 1962 by Bill Bowerman and Phil Knight as a partnership under the name, Blue Ribbon Sports. Today Nike Inc. not only manufactures and distributes athletic shoes at every marketable price point to a global market, but over 40% of their sales come from athletic apparel, sports equipment, and subsidiary ventures. Nike maintains traditional and non-traditional distribution channels in more than 100 countries targeting its primary market regions: United States, Europe, Asia Pacific, and the Americas (not including the United States). We utilize over 20,000 retailers, Nike factory stores, Nike stores, NikeTowns, Cole Haan stores, and internet-based Web sites to sell their sports and leisure products.The company employed about 62,600 people worldwideand in 2015,Nike's global revenueamounted to about 30.6 billion U.S. dollars.

2Introduction

Nike Inc. was founded in 1962 by Bill Bowerman and Phil Knight as a partnership under the name, Blue Ribbon Sports. Today Nike Inc. not only manufactures and distributes athletic shoes at every marketable price point to a global market, but over 40% of their sales come from athletic apparel, sports equipment, and subsidiary ventures. Nike maintains traditional and non-traditional distribution channels in more than 100 countries targeting its primary market regions: United States, Europe, Asia Pacific, and the Americas (not including the United States). We utilize over 20,000 retailers, Nike factory stores, Nike stores, NikeTowns, Cole Haan stores, and internet-based Web sites to sell their sports and leisure products.The company employed about 62,600 people worldwideand in 2015,Nike's global revenueamounted to about 30.6 billion U.S. dollars.

4Advertising Strategy

Target ConsumerProduct ConceptCommunication MediaAdvertising MessageCopyArt Work and LayoutAdvertising BudgetMethods of AdvertisingPush MethodPull Method

5Stages of Advertising Strategy

The inception.Through its Just Do It campaign, Nike was able to tap into the fitness craze of the 1980s.The campaign was able to turn sweaty, pain-ridden, time-consuming exercise in Nike sneakers into something sexy and exciting.It could be argued that the Just Do It campaign was not only about sneakers but about Nikes own renaissance.The ads made starting an exercise regime seem like a necessity, and the way to start exercising was to buy Nike merchandise.The campaign was easily identifiable and stayed true to its message.Impact : Nike was able to increase its share of the domestic sport-shoe business from 18 percent to 43 percent, from $877 million in worldwide sales to $9.2 billion in the ten years between 1988 and 1998. Nike spent $300 million on overseas advertising alone; most of it centered around the Just Do It campaign6Nikes Just Do It Ad campaign

Nikes ads rarely focused on the product itself, but on the person wearing the product while incorporating jokes, explicit and implicit, to make their point.Nike also endorses players in other sports such as formula one racing, golf, cycling, and skateboarding. It sponsored events too.

Signing of Michael Jordan in 1984

The ads were often humorous, appealing to the cynic in all of us, while imploring consumers to take charge of their physical fitness.

7Nike advertising

Two fold approach:Embracing International Endorsements.Manipulating customized Indian Promotions.Adidas and Reebokenjoyed a lion's share of the Indianmarket.Global budget was $5 billion (ranging from 11% to 15% of sales annually) whereas the spending in India was significantly lower.Advertisements endorsed by international athletes were highly represented football, basketball and golf etc., which were the centre of attraction in Europe and America.Reebok, on the otherhand Indianised its ad campaigns right from thestart.The year 2005 marked the launch of customized Nike promotions for the Indian athlete.Nike launched its Cricketing arm and introduced its first cricket shoes - AIR ZOOM YORKER.

8Strategy in Indian market

Nike wrestled its rights to becomethe official kit sponsor for the Indian cricket team for the next 5 years, beatingAdidas and Reebok.Theprivilege was earned by paying Rs.1.96 billion to the Board of Control for Cricket in India.The deal was a huge branding opportunity and sale of licensed merchandise during 2005 earned $20million.The same year Nike aired its first Cricket Advertisement during the World Champions Trophy cricket tournament.The BLEED BLUE campaign grabbed the attention of millions of cricket loving fans, and also reached outstanding numbers using only the power of social media, by being part of the conversations of the nation.9Strategy in Indian market

EMOTIONAL BRANDING

Emotional branding is a type of marketing technique that uses an appeal to a customers needs, aspirations, or emotional state in order to build a particular brand.Nike advertising uses the emotional branding technique of Heroism to inspire incredible customer loyalty all over the world. Nike brand strategy takes the emotional marketing story of the Hero and turns it inward. You are the hero, and your lazy side is the villain.These types of Nike commercials are meant to motivate consumers to get up, to keep going, to continue pushing, and, in short, JUST DO IT.

10Nike-Advertising Strategy

PARTICIPATORY MARKETING

Marketing based not on passive communication, but active audience participationNike has collaborated with POPxo team in coming up with a Nike+ Training Club challengeA 12 week workout plan has been designed for the top honchos of POPxo ranging from their Editor-in-Chief to their Social Media ManagerThe participants would be provided with Nikes apparel, sportswearInvites have been thrown open on Instagram for others to join inSuch campaigns brings brands and users closer together (HAWTHORNE EFFECT) and creates better customer focus

11Nike-Advertising Strategy

PARTICIPATORY MARKETING

Marketing based not on passive communication, but active audience participationNike has collaborated with POPxo team in coming up with a Nike+ Training Club challengeA 12 week workout plan has been designed for the top honchos of POPxo ranging from their Editor-in-Chief to their Social Media ManagerThe participants would be provided with Nikes apparel, sportswearInvites have been thrown open on Instagram for others to join inSuch campaigns brings brands and users closer together (HAWTHORNE EFFECT) and creates better customer focus

12Financial Overview

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According to their own Fiscal Reports, Nike spent $3.031 billion on what they call Demand Creation.

Nikes a little fuzzy on what that means (marketing can be anything from a TV ad to a collaboration with a niche shop).

That means that Nike spends about $8 million per day, $350,000 per hour, $6000 per minute, $100 per second on advertising. 14Advertising expenditure

According to their own Fiscal Reports, Nike spent $3.031 billion on what they call Demand Creation.

Nikes a little fuzzy on what that means (marketing can be anything from a TV ad to a collaboration with a niche shop).

That means that Nike spends about $8 million per day, $350,000 per hour, $6000 per minute, $100 per second on advertising. 15Endorsement expenditure

Nike could expand into wearable tech market introducing a smart watch.

Enhance the reach of Converse by concentrating on designing new products under the brand

Introducing programs where shoppers can design their own shoes

Further penetration in Tier II and Tier III cities.

Sponsor regional sporting events for professional, amateur, and collegiate teams.

Have exclusive online launches and feed on the e-commerce boom.

Diversify further into MP3 players (learning out of their association with the Apple iPod)

16Proposed strategies

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