Learning from business cases >>> NIKE

   

Background of the case:

Nike product was firstly introduced into the market at the year 1962. The original name was known as Blue Ribbon Sports. The company focused on providing a high quality running shoe, which can be sold at competitive price. With an idea of “Pyramid of influence”, Nike believed that preferences of a small percentage of top athletes influenced the product and brand choices of others. After that, Nike has continued signing many top athletes as internal workers; such as rookie guard, Michael Jordan, as a spokesperson in 1985. Moreover, Nike also launched out ads campaign, which known as “Just Do It”.  Not only being successful in US market, Nike also expanded its market into other regions; such as Europe, Asia, etc. By focusing on various types of sport and working with top athletes, Nike can successfully create demands of its products in worldwide.

What theory we can apply from the textbook:

Nike can apply the Holistic Marketing, which is considered as the new age marketing very well. Instead of just spreading out the products to its markets like many other organizations in the past had done, the company can manage all four functions of Holistic Marketing properly; which are internal marketing, integrated marketing, performance marketing, and relationship marketing.

Application of theory in the case:

There are four major categories of Holistic Marketing theory that Nike had successfully applied. Let me guide you through each of them.

Firstly, internal marketing, Nike hired top athletes to work for them as an internal employees. By doing this, Nike can design and create a best shoe for athlete by athlete. Moreover, these top athletes also achieved their top performances after wearing Nike’s products.

Secondly, integrated marketing, Nike provides customers with many types of campaign and offer products in various types of sport. Also, many top athletes in each kind of sport are hired to develop Nike’s products. This simply means that the company can communicate many messages through many channels; such as NBA, Olympic Game, Major soccer leagues, etc.

Next, performance marketing, by having a strong brand, Nike dominates the athletic footwear market with a 31 percent market share globally and a 50 percent market share in the United States. However, being a leader in technology can be difficult for Nike to encourage and support the eco-friendly concepts. New technology usually means new invention and new product. Thus, Nike cannot make its new shoes from recycling process.

Lastly, relationship marketing, Nike also build strong relationship with customers through many channels; such as in 2009, it launched a Tiger Web Talkback session at nikegolf.com, where fans could ask questions and hear Tiger talk about golf. The session was part of a nationwide Nike Golf consumer experience day, which included equipment demos, long-drive contests, and in-store specials. Also, Nike running category gains about 60% of market share by launching Nike+ (Plus) with an exclusive partnership with Apple.

Conclusion:

In conclusion, I think Nike manage its marketing concept as a new way through the Holistic marketing theory which made Nike becomes one of the worlds’ largest athletic shoes company. However, by running with the high-tech running shoe attitude, Nike still has to face with problem about eco-friendly concept. It is very hard to provide its customers some high-tech products with an eco-friendly process; such as recycling.