According to Kotler and Keller (2016), Nike originally known as Blue Ribbon Sports is focused on delivering top quality running shoes designed especially for athletes by athletes which started its journey in 1962. Its founder, Philip Knight thought high-tech shoes for runners could be manufactured at competitive prices if brought from overseas. The firm’s marketing campaigns have always featured accomplished athletes.
Behind its success, Nike placed a significant weight on marketing and advertising the company’s brand and its products. Nike thought in a “pyramid of influence” where the preferences of a little percentage of top athletes influenced the product and brand choices of others. Nike continues to partner with highly successful and influential athletes, coaches, teams, and leagues to popularize its shoes and other sports accessories. In its advertising campaigns, professional athletes were used and proved to be effective and efficient. Nike also actively followed and applied some marketing plans and programs to sustain its dominance in the industry and stay competitive. Nike marketed and advertised its product mainly through TV, magazines, and campaigns which also were effective and efficient.
Nike is vulnerable in using celebrity endorsements in their advertisers and campaigns. They should not allow celebrities to become their brand image because allowing them will diminish their brand as soon as celebrity becomes faded. The firm is also vulnerable because of negative publicity arising from extensive advertising, the credibility of their sports figures, and could be loss of talented people to competition.
Nike can watch out in choosing a spokesperson whose characteristics are similar and consistent with their brand image. Nike should also watch out for product diversification to increase their share in the US market and the global market. The company should watch out for in responding to trends and changes in consumer preference by adjusting the mix of existing product offerings, developing new products, styles and categories, and influencing sports and fitness preferences to augment target market.
Nike being the global icon for the athletic shoes, brand management is one of its key success. Consumers are willing to pay for the brands they think is of superior quality, having flexible style and reliable product. Nike has acquired this branding image with its technology-based production methods and unique marketing strategy. It is believed that using professional and influential athletes in advertising campaign is both effective and efficient. However, athletic shoes market today is more competitive. Competitors are now trying to take the share in the market by creating brand image in consumers mind. Since Nike already created this effective brand image in consumers mind, senior marketing executives need to be alert and ensure to stabilize the brand image. If reducing cost reduces quality, marketing executives should bear in mind that good quality carries the brand image of the company and quality should always be increased to compete with competitors.
Nike should continue to deliver the core value of the brand and the uniqueness of their product quality. In advertising campaign using public personalities as spokesperson, they should make sure that no negative publicity will arise to change consumers perception of their brand and product and see to it that the spokesperson should influence all types of consumer. Since nowadays, consumers are already aware of the environment and would somehow consider in patronizing companies that cares about nature and have social responsibility among its market. Nike’s marketing should continue to live the brand and maintain to create new designs to reach all its target market and to have competitive prices without compromising the quality of its product.
Because of its successful expansion across geographic markets and product categories, Nike is the top athletic apparel and footwear manufacturer around the globe. Its success is from its long-term strategy centering on sports such as running, basketball, football/soccer, men’s and women’s training and action sports.