NIKE : Evolution of Marketing Strategy


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Case Details:

Case Code : MKTA018
Case Length : 16 Pages
Period : 1958-2004
Pub Date : 2005
Teaching Note :Not Available
Organization : Nike
Industry : Consumer Goods
Countries : USA

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts Contd...

Product Development

Nike had attempted to keep itself on the cutting edge of technology. The company's broad game plan was to launch new technically advanced shoe models from time to time. In 1964, it launched the lightweight shoe with reduced weight but better performance.

Nike developed the waffle shoe in 1975. High traction and lightweight characterized this model. Nike's Air sole model, which appeared in the market in 1979, incorporated an air cushioning system that lessened the impact of heels on pavements and minimized the possibility of injury...

Advertising & Promotion

Nike positioned its products as high performance shoes designed with high technology features. Nike athletic shoes were targeted at men and women aged between 18 and 34 years. Till 1976, except for the routine purchase of space in running publications, Nike's advertising was largely in the form of cooperative arrangements with retailers who inserted ads in local newspapers...

The Road Ahead

By September 2004, Nike's Soccer sales were nearly $1 billion, or 25% of the global market. For the first time, Nike's share of the soccer shoe market in Europe (35%), exceeded that of adidas (31%).

Nike had achieved rapid growth in part by using the aggressive marketing tactics that made it big in the US.

Nike paid the prestigious Manchester United club an unprecedented $450 million over 14 years to run its merchandising and uniform operations...

Exhibits

Exhibit I: Revenue Performance
Exhibit II: Revenue Distribution
Exhibit III: EPS Performance
Exhibit IV: Return on Invested Capital
Exhibit V: Stock Chart (5 Years)
Exhibit VI: Income Statement

  

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