1.
A
CASE
STUDY
ON
NIKE
UNDER
PREVIEW
OF
MARKETING
ABHISHEK
VERMA
B10101

2. INTRODUCTION
Nike,
is
just
32
year
old
company
which
has
the
largest
seller
of
athletic
footwear
and
apparel
in
the
worlds
with
subsidiaries
in
over
200
countries
across
the
world
and
forced
itself
in
the
competitive
Market
with
it’s
cutting
edge
technology.
Nike
is
constantly
launches
product
from
time
to
time
with
huge
marketing
strategy,
innovation,
advertisement
and
endorsement.
Bill
Bowerman
and
Philip
Knight
established
Nike
in
January
1964
in
Oregon,
USA
with
originally
known
as
Blue
Ribbon
Sports.
It’s
Fortune
500
Company.
The
head
office
of
Nike
Company
is
located
in
Beaverton,
Oregon
state,
United
States.
The
company
has
more
than
700
shops
around
the
world
and
has
offices
located
in
47
countries
outside
the
United
States.
Manufacturing
unit
is
outsourced
in
cheap
Asian
countries
like
India,
China,
Taiwan,
Indonesia
and
Vietnam.
It
has
45%
of
global
market
share.
In
1990’s,
Company
faced
crisis
and
then
it
decided
to
overhaul
its
supply
chain
management
and
information.
Since
then
Nike
has
been
achieving
rapid
growth
by
using
aggressive
marketing
tactics.
Nike
started
from
garage
to
multibillion
MNC.
Its
product
is
to
enhance
sport
with
athletic
performance.
Nike
Air
design
by
former
NASA
engineer
Frank
Rudy
that
is
light
weighted
cushion
for
shoe.
Nike
has
other
product
too
that
consist
of
lifestyle
apparel,
like
socks,
eyewear,
bags,
sport
ball
etc.
Nike
also
sells
products
with
different
brand
name
in
parallel
market
like
Converse
Inc.
Cole
Haan,
Hurley
International,
Nike
Golf,
Umbro
Ltd
and
LLC.
TYPE
PUBLIC
TRADED
AS
NYSE:
NKE.
S&P
500,
DOW
JONES
INDUSTRY
APPAREL,
ACCESSORIES
HEADQUARTERS
OREGON,
WASHINGTON
COUNTY,US
REVENUE
US$25.3
BILLION
(FY
2013)
TOTAL
ASSETS
US$15.465
BILLION
(FY
2012)
NET
INCOME
US$2.223
BILLION
(FY
2012)
EMPLOYEES
44,000
(2012)

3. MARKET
PUBLICITY
AND
PROMOTION
NIKE
is
well
known
for
its
innovative
advertising
for
sportspersons.
Nike
advertisement
is
totally
different
they
just
do
not
hire
athletes
simply
for
poster
instead
they
match
nike
personality
with
the
player
personality.
Nike
consist
of
athletes
which
represent
its
brand
are
Ronaldo,
Botham,
Marion
Jones,
Seb
Coe
etc
further
its
also
endorsed
football
club
to
have
name
on
to
jersey.
In
that
way
multi-­‐face
brand
is
represented.
Its
advertisement
partner
is
Wieden-­‐Kennedy.
In
1982
Nike
aired
its
first
national
tv
ads.
For
this
Nike
was
named
for
Cannes
Advertising
Festival
for
Advertiser
of
the
year
in
1994
and
2003.
Nike
was
signed
with
Beatles
to
use
its
songs
for
“Revolution”
in
1987.
Nike
discontinues
airing
ads
featuring
of
revolution
in
1988
because
of
licensing
rights.
Nike
facilitated
use
of
Internet
marketing,
email
management
technologies
and
further
use
of
narrowcast
and
broadcast
communication
technologies
to
have
multi
face
brand.
Nike
6.0
was
campaign
in
which
nike
introduce
new
line
of
T-­‐shirts
which
has
phases
like
Get
High,
Dope,
and
Ride
Pipe.
This
has
attracted
many
youth.
Nike’s
famous
SLOGAN
is
“Just
do
it”
.
Other
inspiring
slogan
of
nike
which
are
use
for
poster
and
television
ads
are
–
• “Training
is
the
opposite
of
hoping.”
• “Everything
you
need
is
already
inside.
Just
do
it.”
• “The
only
one
who
can
tell
you
‘you
can’t’
is
you.
And
you
don’t
have
to
listen.”
• “All
your
life
you
are
told
the
things
you
cannot
do.
All
your
life
they
will
say
you’re
not
good
enough
or
strong
enough
or
talented
enough;
they
will
say
you’re
the
wrong
height
or
the
wrong
weight
or
the
wrong
type
to
play
this
or
be
this
or
achieve
this.
THEY
WILL
TELL
YOU
NO,
a
thousand
times
no,
until
all
the
no’s
become
meaningless.
All
your
life
they
will
tell
you
no,
quite
firmly
and
very
quickly.
AND
YOU
WILL
TELL
THEM
YES.”
• “That’s
right.
I’m
out
of
here.
Do
not
chase
me
down
or
text
me
or
try
to
talk
me
into
going
out
to
lunch.
I
don’t
have
time
to
figure
out
if
I
have
time
for
a
run.
I’m
just
going.
The
world
will
not
fall
apart
in
my
absence.
I
might
miss
somebody’s
birthday
cake
or
a
discussion
of
last
night’s
season
finale.
Even
if
I
do,
who
cares.
I’m
coming
back
with
a
state
of
mind
three
coffees,
two
flirtatious
emails
and
a
week
of
vacation
can’t
buy.
Just
do
it.”

4. NIKE
DISTRIBUTION
&
CHANNELS
Nike
is
a
extremely
focused
and
highly
centralized
company.
Management
is
completely
focused
on
core
corporate
functions,
such
as
brand
building
and
supply
chain
management.
Nike
has
few
number
retail
store
in
countries
has
its
presence.
Nike
has
relocated
most
of
its
manufacturing
in
third
world
countries
where
it
has
700+
contract
factories
producing
footwear
and
clothing.
In
that
production
unit
has
around
800,000
workers.
Nike
here
uses
low
cost
Manufacturing
Strategy.
Nike
has
a
significant
product
design
and
creation
center
in
Montabelluna,
Italy.
Nike
has
learned
and
shared
them
with
its
manufacturing
partners
in
Asia.
All
that
is
done
under
preview
of
internal
R&D
facility
in
headquarter
in
Oregon.
With
co-­‐ordinate
move
with
different
department
and
furnishing
product
at
every
level
give
Nike
incredible
sportswear
product
in
the
athletic
industry.
SWOT
ANALYSIS
Strength
Weakness
Opportunities
Threats
High
Customer
satisfaction
Strong
Global
market
share
Strong
marketing
and
advertisment
Strong
R&D
High
product
quality
Brand
Recognition
Outsourced
Manufacturing
units
Limited
Presence
in
countries
High
Pricing
Limited
market
share
in
developing
countries
Decreasing
market
share
in
USA
Emering
market
in
developing
countries
New
Tornament
like
IPL,
ISL
etc
Woment
segment
in
athletics
Increase
R&D
Heavy
competition
from
rivals
Economic
Rescission
Fluctuation
in
currency
Customer
dissatisfaction
SWOT
ANALYSIS

5. PRICING
STRATEGY
Nike
spends
huge
money
on
marketing
to
bring
its
products
top
of
the
line.
Customer
buys
nike
product
as
of
the
symbols.
Symbols
defines
that
top
athletics
use
nike.
Nike
uses
Value
based
pricing
and
Price
Leadership
Strategy
in
which
company
expects
that
customer
will
pay
higher
price
and
get
quality
product,
which
has
longer
life
cycle
than
any
other
product
down
the
same
line
of
price.
It
also
attracts
people
attention
through
different
discounts,
membership;
seasonal
sales
to
mark
down
price
to
get
rid
of
unwanted
stock
etc.
Nike
Free,
Nike
Air
Make,
Nike
Shox,
Nike
Air
Jodan,
Nike+,
Nike
Airforce1
and
Nike
Kobe
are
bestsellers
in
India,
USA,
Canada,
Europe
and
China
Nike
uses
Psychological
pricing
the
theory
that
certain
prices
have
a
psychological
and
emotional
impact.
The
retail
prices
are
often
expressed
as
“odd
prices”
which
is
little
less
than
round
number.
For
Example
price
like
3999.99,
299.99
here
customer
thinks
that
they
are
spending
3000,
200
instead
of
4000,
300.
Nike
also
uses
Segmented
pricing,
through
this
theory
nike
target
different
customer
of
different
ages.
Nike
make
Air
Max
for
adult
and
children
and
the
price
are
different
for
each.
But
the
cost
to
make
an
adult
sneaker
versus
a
children’s
sneaker
does
not
vary
much.
So
here
they
have
profit.