INTRODUCTION
The
company Nike was founded in 1964 as Blue Ribbon Sports and initially operated
as a distributor for the Japanese shoemaker Onitsuka Tiger (now known as
Asics). In 1971, the company name officially became Nike Inc. Bill Bowerman and
Phil Knight created it. They originally wanted to call the company
"Dimension 6." The Nike name comes from the Greek goddess of victory,
and it’s pronounced "ny'-kee." Nike's first employee, Jeff Johnson is
the person who came up with the name (O'Reilly, 2014). The Nike swoosh was
designed by a Portland State University student named Carolyn Davidson.
The slogan that Nike is known for “Just Do It” was inspired by serial killer Gary Gilmore, who said “let’s do it” just before he was executed by a firing squad in 1977. Nike's mission statement is “BRING INSPIRATION AND INNOVATION TO EVERY ATHLETE* IN THE WORLD. *IF YOU HAVE A BODY, YOU ARE AN ATHLETE.”
Michael Jordan who no longer is a professional athlete still reportedly earns $60 million annually in royalties from Nike, according to Forbes. That makes him the athlete with — by far — the biggest Nike endorsement deal (O'Reilly, 2014). For that reason we will focus on his Nike Air Jordan Brand.
The slogan that Nike is known for “Just Do It” was inspired by serial killer Gary Gilmore, who said “let’s do it” just before he was executed by a firing squad in 1977. Nike's mission statement is “BRING INSPIRATION AND INNOVATION TO EVERY ATHLETE* IN THE WORLD. *IF YOU HAVE A BODY, YOU ARE AN ATHLETE.”
Michael Jordan who no longer is a professional athlete still reportedly earns $60 million annually in royalties from Nike, according to Forbes. That makes him the athlete with — by far — the biggest Nike endorsement deal (O'Reilly, 2014). For that reason we will focus on his Nike Air Jordan Brand.
PROBLEM STATEMENT
There
have been a few large problems in Nike’s history with the Jordan brand, one of
those problems being a suit claiming that it’s iconic “Jumpman” logo owes its
existence to a photo taken for Life magazine, and violates the copyright of
that image. The silhouetted image Michael Jordan with his legs spread and arm
extended found on billions of dollars worth of Jordan brand sneakers and
apparel is now the subject of copyright infringement. In March of 2015, Nike
filed a motion to dismiss the lawsuit, claiming the complaint was “meritless”
and failed to meet the standard for infringement. Nike paid the initial
photographer $15,000 so they could keep using the photo they created, and the
photographer submitted an invoice, not a contract, for the $15,000 as part of
the filing which specifies that Nike’s photo was to be used “for North America
only” for two years, with all other rights reserved by the initial photographer
(Bain, March).The issue behind this problem is that over the past 30 years
since the Jordan brand has been around, Nike has made billions of dollars, and
if Nike were to have to pay out some of those profits, it could mean a hefty
chunk of change they would have to come up with and may cause strain on the
brand and also the market.
Another
problem is the controversy behind how and where the shoes are made. Their
business model was based on outsourcing its manufacturing, using the money it
saved on aggressive marketing campaigns to better their brand, which brought
production to countries where there were sweatshops and people working for
little to nothing to produce the products. Since their “outing”, Nike has
focused on being transparent and became the first in its industry to publish a
complete list of the factories it contracts with and also published a detailed
report revealing conditions and pay in its factories and acknowledged
widespread issues, particularly in its south Asian factories (Nison, 2013). The
issue behind this problem is if Nike is employing children and not offering a
good work environment, they are in turn causing harm to the workers simply to
make a profit.
The last
issue to touch on is the damage to the whole Jordan brand. Michael Jordan
himself has been caught saying “I don’t want to hear any complaining about can
or can’t afford what. There isn’t any Phillipinos or Indonesians that are going
to be wearing Jordan’s anytime soon and they’re making them for five cents an
hour. My Air Jordan’s are the new Blood Diamonds” (Celebtricity, n.d.). When
the brand starts to downplay a potential market, or classify themselves as
“better than that”, that is when it starts to lose some of its momentum. The
Jordan’s brand even saw some of their best customers boycotting the brand
because of the sweatshop issues they faced, and also because of the very
specific target market the brand had.
ADVERTISING/MARKETING OBJECTIVE
Nike has
a number of marketing strategies to target consumers. The targeting strategies
include the sponsorship of products by professional athletic teams, celebrity
athletes and college athletic teams. This strategy is specifically successful
because of its ability to reach a large number of athletes. If the athletic
team manager endorses a specific type of track shoes made by Nike, the trainees
have no option than to buy them. The teams can as well buy the track shoes in
bulk and supply them to the team members.
The second strategy that Nike applies is the designing of product destination. Nike does this by associating success with the product. Like when a celebrity athlete sponsors a specific brand; that brand then is associated with success. It’s a mental strategy that will cause the consumer to buy the product if they want to perhaps “be like Mike.”
Finally, Nike targets the consumers who are likely to develop product intimacy; those who care more about the utility and quality of the product than the price. In this way, the pricing is not affected too much in a bid to accommodate a large number of consumers. Many of Nike’s clothing lines are advertised to assist customers in athletic activity that they engage in. To assert this idea, Nike has to manipulate language in a way that convinces customers of the effectiveness in the apparel they purchase. You will see such language like “Dri-FIT” and you’ll think; “well I do sweat a lot when I run, maybe I’ll buy that.”
These strategies will help us reach our objectives of getting our quality products to the customers that will appreciate them, and make them stay loyal to the brand by igniting positive feelings about the product that can turn into lifelong customer loyalty.
The second strategy that Nike applies is the designing of product destination. Nike does this by associating success with the product. Like when a celebrity athlete sponsors a specific brand; that brand then is associated with success. It’s a mental strategy that will cause the consumer to buy the product if they want to perhaps “be like Mike.”
Finally, Nike targets the consumers who are likely to develop product intimacy; those who care more about the utility and quality of the product than the price. In this way, the pricing is not affected too much in a bid to accommodate a large number of consumers. Many of Nike’s clothing lines are advertised to assist customers in athletic activity that they engage in. To assert this idea, Nike has to manipulate language in a way that convinces customers of the effectiveness in the apparel they purchase. You will see such language like “Dri-FIT” and you’ll think; “well I do sweat a lot when I run, maybe I’ll buy that.”
These strategies will help us reach our objectives of getting our quality products to the customers that will appreciate them, and make them stay loyal to the brand by igniting positive feelings about the product that can turn into lifelong customer loyalty.
AIMS OF YOUR CAMPAIGN
Nike
Jordan currently has their ongoing campaign called #WeAreJordan. The aim of
this campaign is for those who wear the shoes to be Jordan. Not Michael, but
Jordan. With Jordan, one may have feelings and thoughts like
I am not Michael. I am my own legend. And in pursuit of my greatness, I will face every challenge. And improve from failure. You can doubt me, even test me. I am not Michael, but I will show you the heart of a champion. I am not common, average, familiar, or ordinary. I am Jordan. It's more than what I wear. It's how I live. So no matter the test, no matter the cost. No matter the game, you will know, I am not Michael...But I am, Jordan.
(Nike, n.d.)
Our
campaign will make those who wear Jordan feel all of those feelings. They will
feel like an athlete, one that can accomplish anything. Everyone will feel like
Jordan, even if that Jordan means something different from one person to the
other. They will be at their best with their Jordan's. Our campaign will make
people feel at one with themselves and their passion.
PRODUCT NAME
Nike Jordan has many different types of products under this brand including
shoes, apparel, and active and athletic gear. Our group's main product focus
will be the Nike Jordan shoes. Upon visiting the Nike website, one will find
there are different options when looking to find their specific Jordan
footwear. Potential customers are able to choose Jordan's made for lifestyle,
basketball, training, other sportswear, and iD. The iD is a great option for
those looking to find the perfect Jordan shoe because it is customized by the
consumer, so it's tailored to one's specific likes and needs.
Jordan's most recent addition to the "flight
frontier" is the Air Jordan XXX, and it will be "bringing with it
three decades of innovation that have led to a shoe that lives up to its
legacy," (Nike, n.d.). It is this shoe, among many other Jordan's, that
allows those who wear them to be and feel like the top performing athletes they
aspire to be.
PRODUCT CLASSIFICATION
Nike Jordan shoes
are classified as a specialty good in the athletic footwear department. Goods
in the specialty products classification "tend to promote very strong
brand identities, often resulting in strong brand loyalty among consumers.
Buyers for your specialty goods generally spend more time seeking the product
they want than on comparing brands or products to make a value decision,"
(Dye 2016). This is certainly true for people buying Jordan's. Those who
purchase Jordan's are usually extremely loyal to the brand, and often owning
multiple pairs. They hold high value in the products and carefully choose the
shoe that will be most suited for them.
PRODUCT CHARACTERISTIC
Jordan footwear products have many different characteristics and attributes
that make the shoe truly wonderful. The shoes are made of high quality material
that make the shoes last and deliver high performance. In addition, there are
different types of Jordan shoes made for several different activities, so there
is certainly variety when choosing your Jordan footwear. The shoes can be found
in multiple colors, and if you cannot find the color you are looking for, one
has the option to custom make their Jordan so they can get exactly the color
they want with a certain shoe style.
The
classic Jordan logo is found on all Jordan footwear products as well, so
mistaking Jordan's for something else is unlikely. The shoes are lightweight
and will not drag our down in during your activities. Wearing Jordan's will
feel weightless and a natural part of you.
DISTRIBUTION
Nike Jordan shoes are distributed globally to specialty athletic footwear
stores and other independent retailers.. They can be bought online through the
Nike site itself and through retailer's sites. However, one cannot apply
to sell Nike products on auction sites, as those applications will not even be
considered by Nike. In order to ensure you are getting authentic Jordan's, one
should make sure they are buying from a reliable source. When doing a search
for the Jordan products, one should pick from one of the first few sites that
come up in a search just to be safe.
PRODUCT LIFE CYCLE
The product demand life cycle happens with every product. All products go
through the introductory stage, growth stage, maturity stage, and the decline
stage. While all products go through all the stages, there is not a set amount
of time for products to go through all of the stages. Some cycles last longer
than others, and can take years to move into the decline stage.
When
Jordan shoes introduce a new product, there will be advertisements with
commercials, posters and displays at stores, and advertisements in magazines.
The price of this product will be higher when introducing the product and with
a lot of customer excitement and anticipation for the new product, they will
usually pay the higher price for this product.
In the
growth stage, Jordan footwear products will continue to sell and the price will
remain high. As long as the product is growing and in demand, it means the
customer is still willing to pay the high price for the hot new product.
The
maturity stage of Jordan shoes occur when the shoes have been out on the
shelves for a while and are still being bought at a somewhat consistent rate.
People are still interested, but there is no more back orders for the products.
They are easy to obtain and purchase, as they are not as in demand as before.
In the
decline stage of Jordan products, the shoes may start to go on sale. With the
shoes going on sale, customers will be inclined to purchase the high quality shoes
at a lower price. This is help to clear the inventory in stores and warehouses
in order to make room for new products. When there are products in the decline
stage, Nike is likely introducing a new Jordan product.
THE BRAND
The Nike
shoe company has many brands, one of their most profitable being Jordan. Their
site has an area dedicated to that all of the latest Jordan Brand News.
Currently, Jordan Brand is celebrating the Asia's largest Jordan-only store
that offers premium member services. Another large Jordan-only store has plans
to open this summer in Toronto. The brand is very popular and continuing to
grow and make their products more accessible with the opening of new stores.
The brand
is meant to make anyone who wears them feel like an athlete capable of
accomplishing any feat, no matter the circumstances. Anyone wearing the Jordan
Brand will sport the Jordan logo somewhere. This logo symbolizes the strength
that one carries with them when wearing the brand. The logo makes people
wearing the product feel confident about their appearance and performance, no
matter what it is they are doing. The brand makes people feel they are Jordan.
They are nothing less than a legend when they carry the brand with them.
MARKETING STRATEGY
Nike has
a number of marketing strategies to target consumers. The targeting strategies
include the sponsorship of products by professional athletic teams, celebrity
athletes and college athletic teams. This strategy is specifically successful
because of its ability to reach a large number of athletes. If the athletic team
manager endorses a specific type of track shoes made by Nike, the trainees have
no option than to buy them. The teams can as well buy the track shoes in bulk
and supply them to the team members. The second strategy that Nike applies is
the designing of product destination. Nike does this by associating success
with the product. Like when a celebrity athlete sponsors a specific brand; that
brand then is associated with success. It’s a mental strategy that will cause
the consumer to buy the product if they want to perhaps “be like Mike.”
Finally, Nike targets the consumers who are likely to develop product intimacy;
those who care more about the utility and quality of the product than the
price. In this way, the pricing is not affected too much in a bid to accommodate
a large number of consumers. Many of Nike’s clothing lines are advertised to
assist customers in athletic activity that they engage in. To assert this idea,
Nike has to manipulate language in a way that convinces customers of the
effectiveness in the apparel they purchase. You will see such language like
“Dri-FIT” and you’ll think; “well I do sweat a lot when I run, maybe I’ll buy
that.”
References
Air
Jordan XXX: The Next Frontier of Flight. (n.d.). Retrieved February 24, 2016,
from https://www.air-jordan.com/30/
Bain, M.
(March, 23 2015). Nike is fighting three legal battles to protect the brand’s
design soul. Retrieved from Quartz:
http://qz.com/365948/nike-is-fighting-three-legal-battles-to-protect-the-brands-design-soul/
Celebtricity.
(n.d.). Michael Jordan “I Make Shoes for Suburban Whites Not Poor Black Kids.”.
Retrieved from Celebtricity:
http://www.celebtricity.com/michael-jordan-i-make-shoes-for-suburban-whites-not-poor-black-kids/#
Dye, C.
(n.d.). The Classification of Products in Marketing. Retrieved February 24,
2016, from
http://yourbusiness.azcentral.com/classification-products-marketing-16806.html
Get Help.
(n.d.). Retrieved February 24, 2016, from
http://help-en-us.nike.com/app/answers/detail/a_id/710/~/how-to-become-a-nike-retailer
Jordan
brand News. (n.d.). Retrieved February 24, 2016, from
http://news.nike.com/jordan-brand
Nison, M.
(2013, May 9). How Nike Solved Its Sweatshop Problem. Retrieved from Business
Insider:
http://www.businessinsider.com/how-nike-solved-its-sweatshop-problem-2013-5O'Reilly,
L. (2014, November 4). 11 Things Hardly Anyone Knows About Nike. Retrieved from
Business Insider:
http://www.businessinsider.com/history-of-nike-facts-about-its-50th-anniversary-2014-11
O' Reilly,
L. (2014, November 4). 11 Things Hardly Anyone Knows About Nike. Retrieved from
Business Insider: http://www.businessinsider.com/history-of-nike-facts-about-its-50th-anniversary-2014-11
