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Nike Promotion EssayAn otherwise important factor in economy is the maturing hold inet in acrobatic shoes. There is alike a growing adverse demographic change in the marketplace brought most by the sweatshop expose that Nike has not overcome yet. Effects to Nikes proceeds are also affected not only by domestic economy only also by the international economy. The continued weak Euro and Asian recession could potentially hurt Nikes international gross sales and growth. Nikes uttermost(a) variations product railroad is seen as inferior quality compared to competitors and is hurting sales and grunge image. CUSTOMERSIn 1998, Ameri tidy sums spent $38 billion to buy over 1. 1 billion pairs of shoes. Sporting Goods Manufacturers Association revealed that athletic footwear makes up almost 35% of all footwear purchases. The existing domestic industry heighten is on casual and informalityable shoes. Demand is up for the brown shoe casual footwear with a comfortable and rugged d esign. This is because of the increasing number of workplaces allowing casual dress codes. Multinational customers account for a big(p) sidetrack of Nikes sales. In 1995, Nikes international operations accounted for 36. 6 of its total revenues. The follow believes that demands from international markets will growth in future. Nike must cater to a large portion of the new generation that demands the latest trends and styles. Nike should go into account the changing US demographics due to the rising proportion of Hispanics, Asians, and African Americans. These groups have different preferences that Nike should be able to satisfy. Nike should identify the next generation of loyal customers and provide for their needs. COMPETITIONCompetition is very raging due to the number of companies competing for sales. Lots of m nonpareily goes to marketing and promotions use various channels to reach the up jumper leadt demographic group of consumers who spend the most money on Nikes produ cts. Growth is slowing down in the athletic footwear industry. But new markets are emerging with high growth rates. These markets overwhelm extreme sports market and the corporate merchandise market. Nikes global market share was an impressive 30. 4% in 1998. The enveloping(prenominal) competitor, Adidas, held 15. 5% of the market share while Reebok held 11. 2%.The roosting competitors, including Fila, Timberland, Asics, Converse, and New Balance, among others, each hold more or less 3-5% of the remaining market share. MARKETING ASPECTS OBJECTIVES Nikebiz. com stated that Nikes mission statement is Through the adoption of business practices Nike is commit to securing intergenerational quality of life, restoring environment and increasing value for our customers, shareholders and business partners. Nike shows passion for their company, products, and athletes. They are determined to provide consumers with comfort and assurance.They also find ways to innovate and create. They adh ere to their five brand principles namely inspire, innovate, focus, connect, and care. Another Nikes butt is to be the worlds leading sports and Fitness Company. Nikes mission statement is similar to a vision statement and is potentially a weakness. The mission identifies the sports and fitness industry business they are in, it does not specify as to what products and service they provide. The mission statement does not mention distribution channels and customers.However, it portrays managements beliefs and the desire to be number one and remain in the leading position in sports and fitness shoe and raiment industry. STRATEGIES Corporate Strategies. The quondam(prenominal) two decades saw a change in economy from standardized to flexible. Having a rigorous corporate cheek used to be the rule, now it is common to have a flexible organization that uses subcontracting. The main modestness Nike succeeded in competing in the footwear industry for a long time is because they remain flexible in an unpredictable market by subcontracting overseas in countries with low labor-cost.Another reason for Nikes strength in competition is their product differentiation. Aside from athletic shoes, Nikes product line now offers a broad range of clothing, equipment and accessories. TACTICS Nikes distinctive manoeuvres are found in the area of marketing, specifically in consumer brand awareness and brand power. Nikes catch phrases like, Just Do It, and symbols like the Nike Swoosh, are reminders of the Nike empire. This tactic is effective because it could not be easily replicated and it offers value or benefit to consumers.Nike is becoming a part of American and world culture, the brand power becomes more difficult to replicate. The trademark and a slogan serves as the companys fingerprints. Nike is able to capitalize the unique identity due because of its financial strength. Nike reaches millions of consumers through large-scale marketing campaigns. The public benefits fr om the strength of Nikes image when they make a purchase. Consumers often associate Nike image with quality products. By associating star athletes and motivational slogans like, Just Do It, consumers identify their purchases with the prospect of achieving greatness.This image they create forms a tactic that competing companies can not easily duplicate by simply improving their products. PRODUCT Nike sells a huge miscellanea of products, including shoes for running, basketball, cross training, Women and children. All of which are currently its top- sell product categories. Nike also sells shoes for outdoor activities much(prenominal) as tennis, golf, soccer, baseball, football, bicycling, volleyball, wrestling, cheerleading, aquatic activities, auto racing and other athletic and recreational uses.Nike began selling active sports apparel in 1979 as well as athletic bags and accessory items. The company sells a line of work equipment below the Nike brand name, much(prenominal) as sport balls, timepieces, eyewear, skates, bats and other equipment. They also sell a line of dress and casual footwear and accessories for men, women and children under the brand name Cole Haan. The company markets headwear under the brand name Sports Specialties, through Nike Team Sports, Inc. They also sell small amounts of various plastic products to other manufacturers through Nike IHM, Inc.Bauer Nike Hockey Inc. manufactures and distributes ice skates, skate blades, in-roller skates, protective gear, hockey sticks and hockey jerseys and accessories under the Bauer and Nike brand name Pricing Strategies Nike uses vertical integration in pricing wherein they own participants at differing channel levels or follow up on in more than one channel level operations. This is also an attempt to control costs and square off pricing practices. PLACE Distribution channels and policy. Should additional channels be added, why? Nike sells its product to about 20,000 retail accounts in the U .S. and in approximately 110 countries around the world. Nike sells its products in international markets through autarkical distributors, licensees and subsidiaries. Independent distributors has little or no pressure for local adaptation because the 4Ps of marketing are managed by distributors. PROMOTION Nike has been one of the top retail industries for quite along time. This is because they sell quality products, customer loyalty, but most of all, its great marketing techniques. Nike has a number of famous athletes to create a great pull off of attention to their products.Nike has signed the top athletes in many different sports such as the Brazilian association football Team (especially Ronaldino, Renaldo, and Roberto Carlos), Lebron James and Jermane ONeal for basketball, Lance Armstrong for cycling, and Tiger Woods for Golf. Sponsoring of events is another great promotional technique for Nike. It brings attention Nikes products. Web sites are a great promotional tool as th ey cover these events. Such events include Hoop It Up and The Golden West Invitational. Nike also personalizes websites. They make the websites exclusively for a sport such as nikebasketball. om , nikefootball. com , and nikegolf. com Marketing strategy Nikes marketing strategy is an important component of the companys achiever. Nike is positioned as a premium-brand, selling well-designed and expensive products. Nike lures customers with a marketing strategy centering around a brand image which is win by distinctive logo and the advertize slogan Just do it. 35 Nike promotes its products by sponsorship agreements with celebrity athletes, passkey teams and college athletic teams. However, Nikes marketing mix contains many elements besides promotion.These are summarised below. Advertising From 1972 to 1982, Nike relied almost exclusively on print publicise in highly vertical publications including Track and Field News. Most of the early advertising was focused on a new shoe releas e, essentially outlining the benefits of the running, basketball or tennis shoe. In 1976, the company hired its first-class honours degree outside ad agency, John Brown and Partners, who created what many consider Nikes first brand advertising in 1977. A print ad with the tagline There is no finish line featured a lone moon curser on a rural road and became an instant classic.The success of this simple ad inspired Nike to create a poster version that launched the companys poster business. In 1982, Nike visionary its first national television ads, created by newly formed ad agency Wieden+Kennedy, during the New York Marathon. This would mark the beginning of a remarkably successful partnership between Nike and W+K that remains sacrosanct today. The Cannes Advertising Festival has named Nike its advertiser of the year on two separate occasions, the first and only company to receive that honor twice (1994, 2003). 36 Nike also has earned the Emmy Award for best commercial twice sinc e the cede was first created in the 1990s. The first was for The Morning After, a satirical look at what a runner might face on the morning of January 1, 2000 if every dire prediction about Y2K came to fruition. 37 The second Emmy for advertising earned by Nike was for a 2002 spot called Move, which featured a series of famous and everyday athletes in a stream of athletic pursuits. 38In addition to garnering awards, Nike advertising has generated its fair share of Controversy. RANDOM The concise version of this is Nike makes itself pop up everywhere, so that its well known. It associates with people that most of its consumers want to emulate (such as michael jordan, in the 1990s) and creates products that will appeal to as wide of an audience as possible while using those celebrities its consumers want as bait (eg, michael jordan and the Air Jordan shoe line).This is just the marketing side The business as a whole creates fast, easy assembly methods that allow it to use cheap labo r in southeastern asia and elsewhere to get cheap products (around 10 dollars) and sell them at extremely high prices (about 150 dollars). With nike, most of what youre buying is image. Nike, Inc. is a marketer of sports apparel and athletic shoes. The American manufacturer, through its marketing strategy which rests on a favourable brand image, has evolved into a large multinational enterprise In keeping with the brand image is its association with the distinctive logo and its advertising slogan, Just do it. In order to aver and sustain this image, the company makes huge investments in advertising and brand promotion. Its promotional activities include agreements for product sponsorship with passkey athletic teams, celebrity athletes, and numerous college athletic teams. Nike is involved in the production of goods for a wide physique of sports, competing with every sports fashion brand in existence.Because of the absence of any single brand that rivals the products of Nike, th e company has no direct competitors, with the exception of German company Adidas. This has helped popularize the brand worldwide in all areas of sport and sports fashion. When Nike first began as Blue Ribbon Sports they only sold one product (running shoes) and because of this they had to make the object lens audience large. However, because of the wide-range of products that Nike sells they now have different target-audiences for each product. For young people, Nike sponsors popular athletes that their customers want to emulate.