Register to read the introduction…
Also, Nike as well successfully impacted the marketplace by finding representative spokesmen by making agreements with them with the supply of sponsorship to these sports stars. In this way, the company has been able to reach a wide number of consumers in different places. As for the different economic, cultural and demographic conditions in different local places of the world, Nike is also successful in studying the conditional influence upon the users of its major products.
5. SWOT analysis
5.1 Strength
* Heavy tradition of the world’s first-class sports products producer is the guarantee of the large share of the devoted loyal customers of Nike. In the meanwhile, the company’s technological advance and higher level of quality management are both important in gaining the sustained support from its traditional customers in its major targeted marketplace. * Existing brand image and its instantly recognisable logo world widely may help Nike to keep its position in the market. * Nike’s well organised marketing strategies especially, its successful collaboration of sponsorship and endorsement of top athletes with brand. (See Appendix - Sponsorship)
5.2 Weakness * Nike manufactures diversified range of sports products. However, the income of the business is still heavily dependent upon its share of the footwear market. This may leave it vulnerable if for any reason its market share erodes. * The company is the comparatively higher prices of its major products. Also, there are not effective direct marketing measures of the company to enhance further influence in its major targeted marketplace. * Poor working conditions in some of its overseas manufacturing places have been affected the image of Nike. 5.3 Opportunities * Advances in technology allow Nike to produce more and more innovative as well as both performance and customer oriented products. * Comparatively higher level of brand management is also an important factor for its marketing success. * There are many international regions that still need tapping and there is need for sportswear and with Nike’s strong global brand recognition, it can initiate in many markets. * Increasing popularity of sports and its participation can also be an opportunity. 5.4 Threats * Being a textile industry which is criticized for polluting the natural environment, Nike has long been criticized by the public. This might have a negative influence upon the future development of the company. * Financial crisis is another important threat which may lead to the shortages subsidiaries in many targeted marketplaces worldwide. So far, the company has experienced negative feedbacks from the public. * The retail sector is becoming price competitive. This means that consumers are shopping for a better deal. So for instance, if one shop charges a price for a certain product, the consumer could go to the other shop to compare prices for the exactly the same item, and buy the cheaper one. Such consumer price sensitivity can be potential external threat to Nike. 6. Nike’s future The future of Nike is largely determined by the strategic marketing, which, according to the present conditions, is confronted with a series of challenges. By and large, the targeting strategies of Nike should continue the strong sponsorship to professional athletic teams and celebrity athletes in different marketplaces. This will lead to the future prosperity of Nike’s business as long as these sports and …show more content…
Approximately Nike spent $260 million on sponsorships in 2008. Its 2009 number was in that ballpark, though the company did trim its budget slightly.
CELEBRITY ENDORSEMENT
By tying its products to successful athletes in many sports, Nike has succeeded in boosting its image and creating the impression that the shoes or the clothes play a role in the success of the athlete. Nike went quickly to the lead in basketball shoes following its connection to Michael Jordan and the 1984 Air Jordan shoe line. The company vaulted itself into the top ranks of golf equipment manufacturers when it built its complete product line around Tiger Woods.
The company has some unique sponsorship deals with the Indian national cricket team, the national soccer teams in Brazil and Portugal and soccer teams like Manchester United. Nike uses these deals to get its logo in full sight on uniforms and inside stadiums throughout the world, which constantly enhances the visibility of its
5. SWOT analysis
5.1 Strength
* Heavy tradition of the world’s first-class sports products producer is the guarantee of the large share of the devoted loyal customers of Nike. In the meanwhile, the company’s technological advance and higher level of quality management are both important in gaining the sustained support from its traditional customers in its major targeted marketplace. * Existing brand image and its instantly recognisable logo world widely may help Nike to keep its position in the market. * Nike’s well organised marketing strategies especially, its successful collaboration of sponsorship and endorsement of top athletes with brand. (See Appendix - Sponsorship)
5.2 Weakness * Nike manufactures diversified range of sports products. However, the income of the business is still heavily dependent upon its share of the footwear market. This may leave it vulnerable if for any reason its market share erodes. * The company is the comparatively higher prices of its major products. Also, there are not effective direct marketing measures of the company to enhance further influence in its major targeted marketplace. * Poor working conditions in some of its overseas manufacturing places have been affected the image of Nike. 5.3 Opportunities * Advances in technology allow Nike to produce more and more innovative as well as both performance and customer oriented products. * Comparatively higher level of brand management is also an important factor for its marketing success. * There are many international regions that still need tapping and there is need for sportswear and with Nike’s strong global brand recognition, it can initiate in many markets. * Increasing popularity of sports and its participation can also be an opportunity. 5.4 Threats * Being a textile industry which is criticized for polluting the natural environment, Nike has long been criticized by the public. This might have a negative influence upon the future development of the company. * Financial crisis is another important threat which may lead to the shortages subsidiaries in many targeted marketplaces worldwide. So far, the company has experienced negative feedbacks from the public. * The retail sector is becoming price competitive. This means that consumers are shopping for a better deal. So for instance, if one shop charges a price for a certain product, the consumer could go to the other shop to compare prices for the exactly the same item, and buy the cheaper one. Such consumer price sensitivity can be potential external threat to Nike. 6. Nike’s future The future of Nike is largely determined by the strategic marketing, which, according to the present conditions, is confronted with a series of challenges. By and large, the targeting strategies of Nike should continue the strong sponsorship to professional athletic teams and celebrity athletes in different marketplaces. This will lead to the future prosperity of Nike’s business as long as these sports and …show more content…
Approximately Nike spent $260 million on sponsorships in 2008. Its 2009 number was in that ballpark, though the company did trim its budget slightly.
CELEBRITY ENDORSEMENT
By tying its products to successful athletes in many sports, Nike has succeeded in boosting its image and creating the impression that the shoes or the clothes play a role in the success of the athlete. Nike went quickly to the lead in basketball shoes following its connection to Michael Jordan and the 1984 Air Jordan shoe line. The company vaulted itself into the top ranks of golf equipment manufacturers when it built its complete product line around Tiger Woods.
The company has some unique sponsorship deals with the Indian national cricket team, the national soccer teams in Brazil and Portugal and soccer teams like Manchester United. Nike uses these deals to get its logo in full sight on uniforms and inside stadiums throughout the world, which constantly enhances the visibility of its