|
Former University of Oregon track coach and co-founder of Nike Bill
Bowerman once said: "If you have a body, you are an athlete!" (NikeBiz)
This way of thinking is how Nike conducts every aspect of their
business. Every person is a potential athlete or "consumer". This is a
common term when used in the realm of athletics but when Bill Bowerman
said this it was in direct reference to the shoe industry. From their
marketing strategies to their selling philosophies, Nike has developed
one of the most recognizable and demanded name and logo tandems ever.
Nike, which is the Greek Goddess of Victory, was born in 1972 when
BRS, Blue Ribbon Sports, launched its first branded shoe at the U.S.
Olympic track and field trials. A former University of Oregon track
team member Phil Knight created Blue Ribbon Sports. At Oregon, Knight
was coached by the legendary Bill Bowerman and then went on to become
and alumni of the Stanford School of Business. BRS was crafted in 1962
when Knight made a deal with Onitsuka Tiger Company, a Japanese shoe
company, to import their shoe to the United States. Knight had the idea
to sell a low cost shoe with a very high quality. Knight had high
aspirations of taking Adidas out the top spot in the athletic shoe
market. In 1964, Bill Bowerman decided to join Knight as a partner at
BRS to create a joint quest to be number one. Bowerman redesigned the
Tiger shoes while Knight acted as the accountant/personal seller and
went on the road to sell their newly crafted sneakers at track meets
and local shoe stores. By 1966, Blue Ribbon Sports opened their first
store in Portland, Oregon. Knight and Bowerman managed the store with
the only other employee being a former Stanford runner Jeff Johnson.
(story/chrono, 1) Signing First Endorsers During 1971, BRS caught a
break when a trading company called Nissho Iwai introduced BRS to
important letters of credit. This credit allowed BRS to subcontract its
own shoe line and by 1972 it was selling Nike Brand shoes. Over the
next decade Nike expanded almost double its size each year from the
previous year. Nike is officially called Nike in 1978 and has signed on
tennis great John McEnroe, New York City marathon champion Alberto
Salazar, women's marathon gold medallist Joan Beniot, and Olympic track
star and gold medallist Carl Lewis. (story/chrono, 1-2) Also during
this time Nike is opening manufacturing plants all over the U.S. Nike
was a household name for most athletes by early 1980's.
Nike's focus was still on track and field and for the most part
track athletes were their target market. One of the first individuals
to endorse a Nike product was a man who exemplified their style and way
of conducting business, Steve Prefontaine. Prefontaine was a household
name in the late seventies and has gone down in history as one of the
best American track and field athletes ever. Prefontaine was a friend
of Knight and had been coached by Bowerman at the University of Oregon.
Prefontaine embodied what Nike wanted as its differential advantage of
other companies due to his brash attitude, high talent level, and
cavalier mentality. Nike marketed itself as a new and innovative shoe
company that constantly had the athlete's performance in mind unlike
existing companies who focused on their products appearance and
durability. Nike infested their market with bright colors, new styles,
and technology information pertaining to their products. This is why
Steve Prefontaine and Nike were a tremendous tandem in the early years
of Nike's existence.
By 1984 Nike had supplanted Adidas as the number one selling running
shoe company in America. But this was not enough for Nike. At this time
Nike was known for its attention to the wants and needs of their
market, the individual runner. The Nike Brand itself, and while Knight
and the employees of the company promoted Nike across the country, the
quality, comfort, and design of the shoe were selling the product
already. During the period from 1985-1987, Nike dropped back down to
number two in the running of the shoe market. Sales had dropped off
because the running boom of the late 70's and 80's had begun to
diminish. Nike began to notice and entire market that the company had
been avoiding, everyday athletic activities. These activities were
things done by everyday people and not just the serious athlete.
Fortunately for Nike, in 1985 their star was brought to light. A rookie
basketball player with amazing talent and a nice smile fell into their
lap, his name is Michael Jordan. (story/chrono, 2) Michael Jordan As
soon as Nike signed Michael Jordan they began to market a new line of
shoes and apparel with the name AIR JORDAN. This was the beginning of
the JORDAN Brand and Jordan's Jumpman23 products. Featured prominently
on each AIR JORDAN product was the Nike insignia, the swoosh, the
product mark which the Jumpman23 and the AIR JORDAN label. Jordan came
to Nike at a time when the marketability of the NBA was increasing. NBA
games were being nationally televised during prime time television
hours and weekends. This gave Nike the perfect platform to develop and
market their new star and the products that he endorsed.
During the first few years Nike introduced Jordan to the public and
Jordan familiarized himself with the American public. Nike ran a series
of ads with Jordan and film director Spike Lee. These ads were aired
during prime time television hours and were solely targeted for
pre-teen school students. These ads displayed an expressed message to
"Stay in School."(story/mkg_innov, 1) The ads presented kids with a
national figure that was selling both school and Nike's products, how
could parents deny their children the shoes of such a virtuous
spokesman? Jordan was a figure that children adored, looked up to and
tried to the best of their ability to copy. Nike used this to display a
great positive image for their company and to sell their products. The
ads were also the first by a company that didn't use the usual 3 a.m.
sport for public service announcements. Nike wanted to be a bold
marketer; they aimed for the top promotional sports and developed a
pioneering strategy for their industry. Nike continued to promote
Michael Jordan through their ads and Jordan continued to promote their
products.
The introduction of the AIR JORDAN line helped to create new lines
of basketball shoes, including the AIR FORCE and AIR FLIGHT lines of
basketball shoes and apparel. Also, a new innovative technology was a
layer of air cushioning in their shoes; this was truly a differential
factor for Nike when placed in comparison with other shoe companies.
Nike's sales jumped to over $3 Billion in total. Nike's AIR JORDAN shoe
was the best selling and most popular basketball shoe on the market.
The AIR JORDAN shoe reached a point in the mid-nineties when a small
picture of Michael Jordan at practice wearing different shoes sparked a
booming inquiry all over Chicago. One store alone received over 300
phone calls asking if they had the shoes in stock. (Katz, 72) The
Jordan Empire The market Nike in which they wanted to target Jordan
towards now was the "athlete of any age." Nike began to produce sizes
from infant on up. Nike created commercials that glorified Jordan and
displayed his humbleness. In the commercials Jordan did things that
young and old people alike always dreamed of doing. Most of the
commercials included Jordan soaring through the air, seeming to be hung
form the sky with the chorus, "If I could be like Mike" playing in the
background. Jordan would then drop out of the sky and dunk the
basketball. In one commercial aimed towards younger children, Jordan
played the Warner Brothers Loony Toons Characters. For an older
generation Nike created a commercial where Jordan is on a dimmed
basketball court and a booming voice comes in and says, "What if my
name weren't in lights? Can you imagine that? . . I can?" This
commercial marketed Jordan as human being and not the untouchable being
that he is sometimes projected to be; this was aimed to help the
average person relate to Jordan. (Katz, 72).
As much as Nike markets Michael Jordan, Michael Jordan markets
himself and the products that he represents. Jordan is always a
well-dressed, well-mannered, good natured, and respectable individual.
It is a welcomed change from the tattoo covered and pierced "bad boys"
that other companies have for their spokesman. All of these things draw
people to Michael Jordan as a person, but his talent level is what
makes Michael Jordan a worldwide icon. Michael Jordan plays at a
competitive level of professional athletics that has almost never been
matched in any professional sport. This talent alone sells, but when
the talent is selling a product, the product is going to sell even
better. The more Jordan played in front of national audience the more
Nike was marketed. Jordan was a human marketing piece. He was and still
is a walking, talking billboard that just happens to be a spokesman for
Nike. Jordan can get as much air time and publicity as he desires just
due to the sheer fact that the demand for him and his products is so
great. Everyone wants to see what Jordan is wearing and doing at all
times. To the target market, Jordan is everything they hope to be and
by buying the product he endorses the consumer feels that they can come
that much closer to their hero.
The Jordan Brand Even though Michael Jordan has retired from
basketball his success continues. In 1997, Jordan announced the
formation of the new signature Jordan brand. The Jordan Brand is a
separate business unit from the Nike Brand; it will be able to explode
product avenues that would have not necessarily have been explored
under Nike's umbrella. (media/n_jocroconcept, 1-2) Unlike most
companies, Jordan Brand doesn't have to worry as much about marketing
strategies or who their target market will be. Jordan Brand can use
secondary research from Nike and have most of their information
developed for them.
The Jordan Brand not only offers the popular AIR JORDAN shoes but it
also offers an apparel line and other shoes under the Jordan Brand. The
area where Jordan Brand succeeds, but Nike failed was their pricing
system. In terms of product, place, and promotion Nike succeeded, but
in terms of price Nike was way above affordable range for most
consumers. Nike's shoes for Jordan cost up to $130 per pair, but Jordan
Brand offers comparable products with the JUMPMAN23 logo and Jordan
name for considerably less. While this may only be a substitute for the
real AIR JORDAN's, Jordan Brand makes it possible for people with lower
incomes to afford to make the purchase and "get closer to their hero."
(Armstrong, G7) Jordan Brand already sponsors such teams as Penn State
University, Florida State University and University of North Carolina-
Jordan's alma mater. Many other NBA players who grew up with Jordan as
their idol have followed suit and jumped on the Nike bandwagon. Nike
endorses Eddie Jones, Ray Allen, Michael Finley, Scottie Pippen and
Kevin Garnett. Jordan Brand has also grown to encompass other sports
and sports figures as well. It now includes Football Player Randy Moss,
Golfer Tiger Woods, and Boxer Roy Jones, Jr. Every one of these
athletes is a well-known and well-respected athletes and supposedly
"the best at their sport" just like Jordan is. Many fans already look
up to them and idolize them just like Jordan, making the marketability
of each one very easy.
The Jordan Brand continues on in the Nike tradition of making shoes
and apparel for the athlete and by the athlete. Not only is the quality
of Jordan Brand well known but also the name by itself can be a
differentiating factor when it comes time to make a purchase. Other
companies do not have the name recognition and the creditability that
comes with the name that the Jordan Brand possesses. When the Jordan
Brand broke away from the Nike Brand it brought customer loyalty with
it. All of these factors helped to ease the introduction of the Jordan
Brand into the consumer market place. Jordan Brand skipped over the
market penetration stage and went right to the most profitable stage;
Jordan is close to its maturity. (Armstrong, 290-292) When Nike has
lost a very profitable section of the apparel and shoes sales, Nike is
still the top overall seller of shoes and apparel. Even when Michael
Jordan decided to retire from basketball they remained true to Michael.
They launched a very profitable campaign that became very popular. This
"retro" collection was bringing back Jordan's past shoes. These
throwbacks were very expensive, but also sold very well. Nike also
began to sell some of Jordan's college gear, such as shoes, shirts and
shorts. This has made University of North Carolina colors and apparel
very popular as well.
Conclusion Nike's ideals and goals remain the same as those of the
feisty Steve Prefontaine and Bill Bowerman. Nike CDO Phil Knight is not
slowing down as he continually signs new colleges on as Nike endorsed
schools, even purchasing portion of the NFL's Dallas Cowboys. Nike has
reached a point where they can count on the Nike name promoting itself,
and yet they continue to produce innovative ideas like the BOING!
Campaign. These ideas have been productive and entertaining promotional
tools. Nike continues to market itself towards people of all ages who
wish to be active and still comfortable.
Jordan brand looks forward to continuing success in the future with
the return of Jordan to the basketball court. With him coming back it
exposes him to more people and more often. This has made more people
realize the Jordan Brand. With his continued success on the court at an
older age has propelled him and his name into the most marketed icon in
history and has opened up other doors for athletes to do the same like
Tiger Woods. These "lifelong" fans of Jordan have made them loyal to
Nike and its products for life.
With Michael Jordan back in basketball and the invested interest by
the media and the public this will certain help sales and keep alive
the strong traditions of Nike and JORDAN BRAND apparel. With the
innovative and entertaining Nike marketing staff and the basketball god
that is Jordan, the shoes will sure to be flying off the shelve- like
Jordan from the foul line for a successful dunk.
Bibliography
Katz, Donald. "Triumph of the Swoosh." Sports Illustrated. 16 August, 1993: 53-73.
Armstrong, Gary and Kotler, Phillip. Principles of Marketing: Ninth Edition. Upper Saddle, NJ: Prentice Hall, 2000.
ONLINE SOURCES:
NikeBiz. "History" (27 November, 2001) http://www.nikebiz.com/story/hist_our.shtml
NikeBiz "Our Chronology" (2001) http://www.nikebiz.com/story/chrono.shtml
NikeBiz "Shoe Evolution" (2001) http://www.nikebiz.com/story/pr_tech.shtml
NikeBiz "Marketing Innovations" (2001) www.nikebiz.com/media/markinnov.shtml
NikeBiz "Beyond Shoes" (2001) http://www.nikebiz.com/story/pr_beyond.shtml
|
|
|
(0 vote)