Nike Marketing

Nike's Marketing Operations

Nike was first developed in Oregon by Phil Knight in the 1960s and founded in 1972. Nike is a major manufacturer of athletic shoes, apparel, and sports equipment. Nike markets its products under its own brand name as well as Air Jordan, Nike Golf, Team Starter, and under brands from wholly owned subsidiaries including Bauer, Cole Haan, Converse, and Hurley International. Nike's advertisement campaigns often incorporate new sporting ideology, which often involve sponsored athletes like Tiger Woods, Ronaldinho, and Michael Jordan. Nike is also well known for its strong sponsorship agreements with athletes, leagues and federations, as well many of the world's soccer clubs. Of course, Nike is in a very competitive industry and must fight to keep a competitive advantage. Furthermore, Nike must also deal with ethical issues that arise from sweat shops that are located in third world countries.

Nike's biggest competitors in the sporting world are Adidas, Reebok, Puma, Umbro, Converse, etc. Adidas, the biggest rival of Nike, has chosen to acquire Reebok for $3.8 billion in order to expand its market ("Nike, Inc"). This deal will help Adidas take on the top sporting-goods brand Nike as it gives Adidas a stronger presence in North America. Adidas is grounded in sports performance with such products as a motorized running shoe and endorsement deals with superstars such as David Beckham. Meanwhile, Reebok plays heavily to the melding of sports and entertainment with endorsement deals and products by Nelly, Jay-Z, and 50 Cent. This combination could be deadly to Nike as it will be a big blow to their market. The combined entity, with sales of $12 billion ($8 billion from Adidas and $4 billion from Reebok) will close the gap on Nike, which posted $14 billion in sales during its last fiscal year, ended May 31st (Howard). However, each brand is expected to maintain its own identity