One of the fundamental parts of successful brand creation process is developing the strong brand image and communicate brand ID across all available media channels. This essay will discuss and evaluate companies NIKE marketing strategies in terms of companies brand development efforts. The company’s success in the footwear, apparel and accessory markets will be linked with marketing branding concept. Furthermore, the discussion on NIKE marketing strategies and their efforts to preserve and increase the leading market position and marketing activities to increase brand equity will be discussed and critically evaluated.
Companies Nike main business activity engage the design, development and worldwide marketing of high quality sport shoes, apparel, accessory products and equipment. Nike is the one of the largest brands selling high quality athletic footwear, athletic apparel and equipment in the world. The products of the company sell to retail accounts in the United States and through the various independent distributors, subsidiaries and licensees in many countries around the world. (source Nike.com) In year 2012 Nike reported total annual revenue of $25,313 million and Net income of $2,485 million. (naikinc.com)
Historically, Nike engineered and manufactured the sports shoes for athletes to compete and train in. The company's marketing strategies was aimed to sport shoes segment of market that in short period made products so attractive and desirable that they became a must have accessory to the large number of American people. The Nike popularity rapidly grew around the world. The people who would not take part in sport activities on regular basis choose to wear NIKE as company grew in to being part of the culture in America. The ownership of the Nike product expressed the attitudes of those people who chose to wear them. The fact today is that average American boy owns 10 pairs of Nike trainers. (Source…).
The Nike company’s success was created by founder Phil Knight. He was a student at University of Oregon who also was keen middle distance runner who could run a respectable 4:10 mile. By being an athlete he recognised the need of improvement in the sport shoes market. He established and turned little company called Blue Ribbon Sports into Nike Corporation that is multibillion-dollar firm today. As it was said by David Falk who has partnered with Knight over the marketing and representation of athletes “In a very short period of time, Phil Knight created one of the greatest American commerce stories of the 20th century”. The Blue Ribbon Sports company made $3240 in its first year 1964. In 1996 Nikes revenue was $6.5 billion and $550 million in income. (Source http://alumni.stanford.edu/get/page/magazine/article/?article_id=43087)
As it was noted by Keller, one of the initial roles of a brand is to attract attention and stand out from competitors (Keller et. al., 2008). The Nike brand success was created not...