Ch. 16 - Advertising, Public Relations and Sales Promotion

As you may know Nike being an athletic brand, they would advertise for the sports world. They use players from different sports like Lebron James in basketball, Tiger Woods in golf, the Jordan brand which is a branch of Nike has Derek Jeter for baseball, Victor Cruz for the face for football, and for cycling they have Lance Armstrong even though they terminated the contract with him because they were “misled for more than a decade.” Nike released a statement about Lance Armstrong stating that

“Nike does not condone the use of illegal performance enhancing drugs in any manner.  We love sport and believe in the integrity of competition.

We terminated our contract with Lance Armstrong in October 2012. We remain saddened after being misled for more than a decade.  

Nike plans to continue support of the Livestrong initiatives created to unite, inspire and empower people affected by cancer.”

launched in May 2004 as a fund-raising item for the Lance Armstrong Foundation (now known as the Livestrong Foundation) founded by cancer survivor Lance Armstrong.

Ch. 14 - Marketing Channels and Retailing

Nike has many retailers from physical retailers to online retailers, but Nike also allows other stores to sell their products therefore penetrating the market in many different ways. Nike has several ways in where it reaches the consumer through physical stores. Nike has flagship stores around the country called Nike Town for the corresponding state that is resides in for example "Nike Town New York", and "Nike Town Chicago", and others around the country. Nike Town offers everything that is Nike, to its consumers ranging from Nike newly released sneakers and other equipment ranging in several sports. Nike also has many "Nike Factory" retailers around the country; these are Nike outlets that are usually located in malls and outlets around the country.  Nike also permits chain stores such as Finish Line and Footlocker retailers to sell various products from Nike these products consists of sweats, sweaters, and of course their sneakers once again mostly focusing on selling their sneakers. Nike also has a online retailer Nikestore.com which offers basically everything that is sold at Nike Town retailers.

At Nike Town retailers Nike offers an appealing entrance at their retailers with a very athletic feel to the store. With the store consisting of three colors mainly white and black with orange accents sometimes even blue depending on promotions that might be going on at the time. As soon as you walk in there are manikins sporting a jersey or even a t-shirt with the athletic build, in some cases you might even see sporting equipment surely depending on the section of the store you are in. When you walk into Nike Town New York you are welcomed by 32 Heavy build mannequins each one sporting a NFL jersey for every different team in the NFL, the mannequins all are heavily equipped with padding, gloves, and cleats to look like the actual football players in the NFL. This presentation was put into Nike Town New York after Nike signed a contract with the NFL for the exclusive rights to make and sell the official NFL jerseys. This promotion was built in to Nike Town New York initially to promote the new Nike NFL jerseys to its consumers.

Nike Town NYC

Nike Town NY Entrance

Nike Town San Fransisco

Nike Town Chicago

Ch. 6 - Consumer Decision Making

Nike has won over the majority of the athletic shoe wear industry by offering style. Nike has taken into account that not only do people want, Nike has realized that most of its consumers seek not merely shoes that perform but they expect Nike to deliver a shoe that has style. Most of Nike's basketball sneakers like Lebrons and Jordans that are sold are bought by consumers not to wear to play a sport but to wear casually in their everyday lives. The product Nike sells now carry a heavy retail price with some ranging from $160 up to $270 for their sneakers as the increase in demand for them, Nike realized that it’s products are not a person need but more of a want, with that in mind Nike makes stylish athletic sneakers with a expensive price tag because most of Nike's popular sneakers sell out instantly so as long as the consumer is willing to pay Nike is willing to charge. One of Nike's most popular sneakers aside from their Jordan Brand is the very popular shoe called The Foamposite One made famous my Penny Hardaway back in the 90's. Back in the 90's when this shoe was released by Nike the sneakers were popular but still at times even sat on shelves, not as popular as they are now due to the large amount of "sneaker-heads" out there who jump at every release of this popular Nike sneaker model. Now for this Foamposite One model consumers line up in front of the store for several hours just for a chance at purchasing the $220 + tax pair of sneakers. Therefore i believe Nike has taken a luxury over performance target in producing their shoes. Although Nike still does provide sneakers for those of its consumers who still seek performance with their soccer, baseball, football, golf, etc.

The consumer decision-making process is a longer thought now since the economy is in a recession. There is a five step process when making a decision. The steps included are need recognition, information search, evaluation of alternatives, purchase and post purchase behavior. Nike tries to make this decision process easier with their advertisements using stimulus. For example, the Nike fuel band is one of Nike's newest products that most people did not know much about it when it released, so Nike came up with an ad that will catch ones attention. That is not all; Nike's commercial explains what this product is in great detail using two of the stimuli sight and hearing. Just by watching the commercial, Nike completes the first two steps of the decision-making process for the consumer which only leaves you with 3 more steps.

Ch. 5 - Developing a Global Vision

NIKE, Inc. WORLD HEADQUARTERS, Beaverton, Oregon

NIKE, Inc. WHQ reflects the innovative spirit, values and pride of a global sports company.  It’s more than just a place to work, it’s a comfortable and stimulating environment filled with full-service facilities designed to help you perform better. From leading-edge sports research labs and footwear and apparel design facilities to highly-touted childcare and pre school centers, Nike campus life reflects the company’s value and interest in its employee’s career growth and balance of work and family. Nike, Inc World Headquarters or WHQ is located in downtown Portland. NIKE, Inc 200-acre WHQ is located near Beaverton, Oregon – a suburb of Portland. Even though the Pacific Northwest is the birthplace of Nike, today the company operates in more than 160 countries and six continents. Bringing together 40,000 plus employees worldwide with each employee making their own contribution to fulfilling Nike’s mission to bring inspiration and innovation to every athlete* in the world.

EUROPEAN HEADQUARTERS, Hilversum, Netherlands

Nike’s EMEA (Europe, Middle East and Africa) Headquarters is located in Hilversum, just 16 miles southeast of Amsterdam.  With more than 1,400 employees, made up of 68 nationalities, the campus is an international melting pot where critical corporate HQ functions are housed to support over 75 countries across the EMEA region. The campus also features a fully equipped gym, a running track, basketball and tennis courts, and a football field. An employee store is open to sell NIKE product at a substantial discount, while two restaurants are open daily to serve up healthy food options. In keeping with Nike’s commitment to sustainability, Nike EMEA headquarters is an eco-
friendly building with a number of special features like

·         The roof is shaped to collect rainwater and is used to irrigate the gardens and flush the toilets saving the company over four million liters of clean water per year.

·         The heating and cooling system is revolutionary. In summer, a large water reservoir is heated by the sun and releases its heat over the winter. In reverse, the same reservoir collects the cold in winter to cool the building in summer.

·         The tennis and basketball courts are made from recycled training shoes. Using the Nike Grind program, Nike used around 4,000 pairs of shoes to make each court.

Greater China/Asia Pacific

Located in downtown Shanghai on Nanjing Xi Lu you’ll find the prestigious Plaza 66 Commercial Towers, where Nike Greater China makes its home. With annual revenue in excess of US $2 billion and, 2000+ staff, China by far is our fastest growing global market and Nike’s second-largest single market behind North America.
As the leading sports brand in China, Nike continuously push the limits of innovation and growth. Nike remains closely focused on bringing the brand closer to consumers, while creating platforms for Chinese athletes to pursue their dreams. In China, Nike is taking the retail experience to the next level, delivering true personalization and customization at every turn. Continued expansion of the retail network will only build stronger consumer connections that will feature our most innovative products – allowing Nike to strengthen the brand and enable a truly world-class shopping experience. Growth is all that Nike experiences in China.

Japan

 Nike Japan was established in 1981 and is consistently supported by the Japanese consumer making it the Japan’s leading global sports brand. Nike Japan directly operates nine retail stores and 16 factory outlet stores across the country, with the flagship store located in Harajuku. Through retail, Nike consistently delivers innovative apparel and footwear to its consumers.Nike Japan’s headquarters sits in Tokyo’s Shinagawa with a beautiful view of the Tokyo Bay that comes alive as the Rainbow Bridge lights up the night.