2. Overview of Presentation
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International Sport Marketing Issues
History of Nike
Athlete Representation/Endorsement Deals
Event Sponsorship
Nike as a company in the global age
Examples of Nike Advertisements
Why is this important to sport managers?
Concluding Remarks

3. International Sport Marketing
• Marketing has shifted in the last 20 years from
country-specific to more international.
• Sport marketing follows the same trends.
• World is becoming smaller—more competition,
need to find new markets for products.
• Nike is an excellent example of shifting priorities
from the domestic market to a more global
approach.

4. History of Nike

5. Overview
• Founded by Bill Bowerman and Phil
Knight
• Been in the industry for over 30 years
• World’s most competitive sports and
fitness company
• Nike employees over 23,000 people

6. The Nike “Swoosh”
• Created by graphic design student at
Portland State University in 1971
• Received $35 for the design and unknown
amount of stock in Nike
• Now one of most famous logos and
trademarks in the world

7. Nike International
• In 1972, Canada becomes Nike’s first
foreign market
• In 1974, Nike begins operating in
Australia
• In 1977, Nike sets up manufacturing
factories in Taiwan and Korea
– Much controversy over fair worker’s pay
– Sweatshop controversy continues today

8. Nike International
• 1978-Nike sells shoes in South America
and distribution outlets are set up in
Europe
• Revenues exceed $71 million dollars

9. Nike International
• Nike’s World Headquarters are in
Beaverton Oregon.
• Opened in 1979

10. Nike International
• 1980- Nike begins negotiations with China
to set up production of shoes in this
country
• Nike becomes the number one selling
shoe in Canada
• 1981-Nike International Ltd. Is formed to
service a growing market of up to 40
countries

11. Nike International
• 1984- Global market reaches $158 million
• 1985- Michael Jordan is signed and
becomes the biggest endorser in Nike
history
• 1987- Nike is introduced in the USSR
• 1991- International Revenue tops $860
million

12. Nike International
• 1994- A new Eastern European region based in
Vienna is formed at the $138 million Laakdal
Customer Service Center
– Shane Warne, Australia's preeminent cricket
superstar, signs with Nike
– NIKE assumes distribution rights in Japan in Korea
– Nike signs 10 members of Brazil's soccer team along
with Italy's, China's and U.S.'s soccer team.
– In Latin America, Chile and Argentina join the NIKEowned family

13. Nike Today
• Internationally recognized company with annual
revenue in 2004 of almost $13.7 billion dollars.
• Owns subsidiaries such as Starter, Nike Golf,
Converse, and others.
• Has some sort of presence in almost every
country in the world.
• Endorsement deals for professional athletes
reached over $500 million in 2004, as well as
spending on advertising reaching $213 million in
2004.

14. Athlete Endorsements

15. Top Ten Wealthiest Athletes
• Tiger Woods
• David Beckham
• Shaquille O'Neal
• Michael Vick
• Lance Armstrong
• Derek Jeter
• Michael Jordan
• Alex Rodriguez
• LeBron James
• Kobe Bryant

16. Steve Prefontaine
• First major track star to
wear Nike
• Blue Ribbon Tiger Shoes
• At the time held several
records, including the
2,000 and 10,000 meter
dash
• Known simply as “Pre”
• Died in a car crash in
1975

17. Michael Jordan
• Signed with Nike in
1984
• Has own brand of
Nike gear, The
Jordan Brand
• Number 3 pick in NBA
Draft
• One of the most well
known athletes in the
world

18. LeBron James
• Signed with Nike Prior
to being drafted into
the NBA
• Seven year deal
worth $90 million
• Jordan’s First
Contract in 1984 2.5
Million for 5 years
• Won 2003-04 NBA
Rookie of the Year

19. Mia Hamm
• Regarded as one of the
best Women’s Soccer
players to ever have lived
• Member of U.S. National
Team, played in Olympics
from 1996-2004, founding
member of WUSA
• Mia Hamm Foundation
and other charitable
works, including excellent
role model for female
athletes.

20. lanceARMSTRONG
• liveSTRONG
campaign raised
millions
• Goal was $5 million
• Over $9.4 million in
grants
• 50 Million wristbands
sold as of May 2005
• Eight time Tour de
France champion

21. Tiger Woods
• Signed with Nike in
1996, giving up his
amateur status
• Signed his first deal
for a 5 years at $40
million.
• New Contract is $90
million
• Considered the best
male athlete in the
world

22. Serena Williams
• Signed a lifetime deal in
2003
• Worth just over $60
Million
• Was one of the first
women signed to Nike
Goddess (now Nike
Women)
• Consistently one of the
top Women’s tennis
players in the world

23. Freddy Adu
• Signed a $1.5 Million
contract in 2003
• Was age 13 when he
first signed
• Plays for DC United of
Major League Soccer.
• Considered one of the
best young players in
the world.

24. Michael Vick
• Signed with Nike in
2004
• Endorses NikePro
Sphere
• $62 Million over 6
years
• Quarterback for the
Atlanta Falcons of the
NFL, top QB.

25. Maria Sharapova
• Signed a $55 Million
deal
• Contract is for 5 years
and started in 2003,
with a 3 year
extension
• Highest contract for
any women athlete
• 2004 Wimbledon
champion

26. Kobe Bryant
• Signed contract with Nike
in 2003 for 5 years and
$40 Million
• Nike signed him even
though he was going
through a trial for rape
• However he has not been
in a television
advertisement since, for
any of his corporate deals
• Nike has stood behind
Kobe, as they do all their
athletes

27. Alex Rodriguez & Derek Jeter
• Derek Jeter signed with
Nike’s Jordan Brand
• 10 Year $100 million deal
• A-Rod signed to Nike
• Has been with Nike
for over 14 years
• Gets about $1 million
a year

28. Yang Yang
• Chinese Olympic
Speedskater
• Was China’s first Winter
Olympic Games champion in
2002
• Earned gold in the 500m
event, as well as the 1000m.
Also finished 4th in the
1500m by a tenth of a
second

29. Fernando Torres
• Member of Spanish
National Football
team
• One of the most
sought after
European football
players of his
generation.
• Currently plays for
At. Madrid in
addition to for Spain

30. Yelena Slesarenko
• Russian Women’s High
Jumper
• Won Gold at the 2004
Athens Olympics
• Broke former Olympic
Record with a jump of
2.06m
• Also is current World
Indoor Champion

31. Robinho
• Dubbed the successor to
Pele, the great Brazilian
soccer player
• Hails from Brazil, plays
for Real Madrid,
alongside David
Beckham
• Only 20 years old and his
signing attracted
international attention
from many European
football clubs

32. Wayne Rooney
• Football player for
Manchester United FC
• Member of English
National Team, plays
forward position
• Nicknamed “Roonaldo”
because of his
playmaking ability

33. Hicham El Guerrouj
• Olympic distance
runner—Morocco
• Athens 2004 Olympic
Games: Won Gold in
5000m and 1500m
races
• Multi-time world
champion in distance
events, great
humanitarian

34. Other Internationally Endorsed
Athletes
• Asafa Powell-Jamaican Runner, 2004 Olympic
Games
• Shiqiang Guo—Member, Chinese National
Basketball team
• Thomas Voeckler—Cyclist
• Sanya Richards—Track and Field, University of
Texas
• Diego de Cunha—Football Player--Brazil
• Ronaldo—Football Player—Manchester United

35. Sponsorship/League
Endorsements

36. Sponsorship in the United States
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•
•
Professional Sport
Colleges and Universities
Youth and Community Programs

37. Major Professional Sport
• Major League Baseball
– Majestic
• National Football League
– adidas-Solomon/ Reebok
• National Basketball Association
– adidas-Solomon/ Reebok
• National Hockey League
– adidas-Solomon/ Reebok

38. Colleges and Universities

39. Youth & Community
• Nike Foundation
• Community Giving

40. International Sponsorship
• Events and Leagues
• Soccer
• Manchester United

41. Events & Leagues
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International Inline Skating Association
Marathon Tour
Ironman Competitions
Canadian Hockey Association
Nike Tour (golf)

42. Soccer
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Nike ‘arrived’ on the soccer by
sponsoring the 1994 Word Cup
Continue to look up to adidas, but
gaining ground
Sponsors numerous national teams
Sponsors Manchester United

43. Manchester United
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Widely regarded as the “world’s most
famous football club”
Nike entered a $553 million, 13-year
sponsorship deal in 2000
United’s fortunes have waned since then

44. Other Causes
• AIDS.com
• Livestrong

45. Ambush Tactics
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•
2002 Boston Marathon
Olympics
–
–
1992
1996

46. Nike as a Sport Marketing
Case Study

47. Nike in the Overseas Marketplace
• Appeal of Nike brand overseas
– Running
– Football (soccer)
– Other brands that Nike owns
– Advertising
– Marketing Campaigns
– Athlete Representation—using local stars to
appeal to international customers

48. Nike as an Global Powerhouse
• Over half of business is in international
markets.
• Growing number of subsidiaries (Bauer
Hockey, Starter, etc.)
• Footwear market-share leader in Europe
• Success in international events
(Olympics, World Cup, Tour De France)
• Product placement

49. Global Competition
• Adidas-Solomon/Reebok
– Merger in 2005 to attack Nike’s position in the
domestic and international marketplace
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FILA
K-Swiss
Puma
New Balance
Other smaller brands in Europe and around the
world

50. Evolution of Product Lines
• Footwear
• Clothing/Merchandise
• Subsidiary product lines
– Cole Haan
– Starter
– Nike Golf
– Converse
– Bauer NIKE Hockey
– Hurley Surfing

51. Why is Nike so Successful?
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Superior Advertising
Brand Recognition
Quality Products
Subsidiary Development
Marketing Strategy
Employees of Company (commitment)
Business strategy (recognizing
opportunities)

52. Nike Global Commercials
• TV advertisement from Australia
– http://www.nike.com.au/nikefree/home.html
• TV advertisement from Europe
– http://www.nike.com/freeeurope/?l=en_gb&cid=r20
• TV advertisement from Canada
– http://www.nike.com/canada/nikehockey/main_en.

53. Global Commercials, Cont.
• Football (soccer) is the most popular sport in the
world. Needless to say, Nike excels in these
commercials that appeal to the world market.
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•
Ole
Brazil Airport
Nutmegs
Are You Ready
Nike Streetball

54. Global Commercials, Cont.
• Football commercials appeal to the largest
population of sporting individuals. Other
commercials like basketball and baseball
commercials are more for American tastes.
• A wide and diverse taste of commercials
appeals to the global image that Nike takes
on to succeed.
• Image is everything.
• Marketing campaigns are effective.

55. Implications for Sport Managers
• Internationally recognized—logo and
slogans
• Competition with growing international
market
• Increasing advertising costs (product
differentiation)
• Global sport is wave of future
• Nike as a model for success
• Will impact every part of sport
management, not just marketing and
sponsorship.

56. • Something to think about:
• Even with the merger of Adidas and Reebok,
Nike still controls a large market share of
products around the world
• …America has 290 million people…the world
has 6 billion…lots of room for expansion and to
break into new markets….

57. An Analysis of Nike's Influence
over Sport in the Global
Marketplace
• Nike will continue to grow and expand their
influence in all aspects of sport.
• Endorsement deals with high profile teams and
athletes will continue.
• Competition from other companies like AdidasReebok and others will grow.
• Nike has advanced global sport to a new level
and has made a commitment to making sure
that they remain on top of the footwear game for
years to come.

58. Questions???
“If you have a body, you are an
athlete. As long as there are
athletes, there will be Nike”