Nike Assignment PDF

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Marketing Stage 1 assignment ...

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Nike

Overview of Nike Nike is an incorporated organization that functions mostly in the footwear industry, it designs, creates and advertises athletic footwear, clothing and sports equipment. It was founded in 1964 as Blue-Ribbon Sports by William Bill and Philp Knight. Later on, in 1978 it became Nike, Inc. Today, Nike is said to be the top sport equipment provider and widely merchandise sportswear in the world. Nike advertisements have shaped the brand’s history through the past 25 years. Nike’s advertisement is one of the best emotional branding cases in the world nowadays, their clients’ dedication is unbelievable, and this is all because of the great marketing strategy that the organization is following. Furthermore, their brand strategy is outstanding on this end, since they can get a normal person who is unknown and make him a superhero, which sends a very powerful message to the viewers, that we are all heroes of our own story. (Oinmp, 2012)

Sensory Marketing For the past 20 years, marketers have been developing their skills in an assortment of industries to reach the customers through the five senses. A new research has been done and it proposes that we're going to enter a period in which a lot of customer-products based organizations will exploit sensory marketing. Organizations have reached to a conclusion on how to attract customers through sensory marketing, by reaching to their emotions and feelings. (Haghigi et al. 2011).

Firstly, playing on the sense of smell. Examinations have revealed that delightful smells can improve mood by more than 35%, therefore organizations should look

for a way to combine scent with their brand and stick with it. Basically, Nike Stores use a blended blossom aroma to guide the customers in the direction of most costly pair of shoes. As a result of that, they found that scent marketing has increased the willingness of customers to purchase Nike products by 80% (Orvis, 2016). There was a study that took place where scientists put two matching pairs of Nike shoes into different rooms that were precisely similar however, there was only one variation. One room had a flowery scent, while the other one was unscented. After the study, the scientists reached to a conclusion that customers were 84% more prone to purchase the Nike shoes in the scented room (David , 2014) Secondly, the sense of hearing, individual’s ear is able to identify between the range of 16 to 28000 cycles per seconds (Batema, 2011). One of the well-known campaigns that Nike launched was “Find Your Greatness” Campaign, the message behind this campaign is basically to inspire and energize everyday athletes all over the world to celebrate their successes, contribute and enjoy the ecstasy of achieving in sport at their own level.

(Appendix A)

In the commercials of this campaign, Nike simply

added a man’s and woman’s voices in the background where they basically emphasize that greatness is not just only for the superstar athlete, but is inherently a part of what we can all hope to and accomplish. This will definitely move the emotions of the viewers and inspire them to work hard and find the greatness in themselves. Furthermore, Nike usually use an inspiring and uplifting background music track in their advertisements to initiate the feeling of motivation in the viewers and give them a push to stand up and start exercising. Only the specific addition of inspirational beats, sweaty sportspersons and crafty shooting can conceivably create such heart-stopping sentiments. Moreover, they had a commercial with the title “Be Heard”

(Appendix A)

where the audience can clearly hear the squeaking of shoes on the

field, the tearing of tires being lifted off the grass, vicious stares, the bouncing sound of the basketball, the sound of the tennis ball being hit by the Racket and the heavy breathing of the athletes. All these sounds will encourage and motivate the audience to purchase Nike products and start exercising. Thirdly, the sense of sight, it is one of the most powerful senses used in marketing. Therefore, creative managers take so much time to come up with visually attractive

images and metaphors that are logical and clear to the customers. First of all, Nike’s logo represents ''Correct or Swoosh". The veiled meaning behind the Nike logo is the wing in the air of the statue of the Greek Goddess of victory. Nike uses the colors black and white to give an edgy vibe, moreover, they use bright orange color for their packaging where it plays up the friendly angle. Nike has one of the most powerful slogans in history, “Just Do It.”, These three words have inspired a lot of people not only in sports, but in many various aspects in life. Nike involves a lot of famous athletes and sports teams in their advertisements and this is considered to be a huge opportunity for the Nike Company to attract as much customers as they can, because when people see that their sports idol is using Nike products with his/her breathtaking athletic performance, it will immediately stroke the passionate side of the viewers. Moreover, the social media is one of the most vigorous tools of advertisements for Nike. They posted a photo on Instagram that promotes for the sight sense, where they presented a combination of the colors turquoise and black on a running shoe, these colors are so exceptional and pleasing to the eyes. This shoe is chic and the shoe connects senses on the visual channel through the products color.

(Appendix B)

In addition to that, they posted another picture of a football

placed in the middle of a stadium. The colors of the football are bright orange and yellow with the white Nike logo in the middle. These colors attract both male and female viewers. Also in this picture, you can’t not see the astonishing dark green grass that eventually will engage customers to want to play on the pitch with that precise football (Hawks, 2015). (Appendix B) Fourthly, the touch sense. Nike has a various number of advertisement that delivers to their customers the touch sense of the product. Most Nike advertisements gives the feeling of comfort, flexibility and confidence to their customers. They posted a picture on Instagram that includes the famous football player “Neymar” where he was holding a football shoe. This advertisement focuses on the sense of touch to the viewers, as the shoe texture appears like no other and the material that is used is very light which will provide the customers with the feeling of comfort and better performance (Hawks, 2015).

(Appendix B)

Lastly, the taste sense. It is one of the most important senses, as humans have more than 10,000 taste buds (Dowshen, 2013). However, taste can also be

psychological, where it comes from the individual’s feelings and emotions. Nike’s sense of taste is psychological, they design their products in a way that fits with each individual taste. They design different types of shoes, clothes and equipment, in order to give their customers, the chance to choose what perfectly fits them. As a result of that, they deliver the feeling of satisfaction to their customers by providing them products according to their tastes.

The 4Ps The marketing mix is the strategic part of a marketing plan. It is placing the right product in the right place, at the right price and at the right time. Nike Inc. depends on its marketing mix to maximize its profits. The company grows as per the changing aspects of the international sports shoes, clothing and apparatus market. Nike successfully does so through its marketing mix. Bearing in mind its noticeable achievement in the international market and its leading role in the industry. (Appendix C)

Firstly, the product, it can be a good or a service that should meet the needs and wants of the customers. Nike produces a wide range of sports products. Their first products were running shoes. Nowadays, they make shoes, jerseys, shorts, shirts, bags and equipment for a wide range of sports. Moreover, they make customized shoes to fit their customers requirements. For example, The Nike Zoom HyperRev shoes, its printed advert gives the customers an idea about the texture of the shoes, (Appendix C)

firstly, it is provided with Flywire technology that locks the foot down with an

adaptive fit. Secondly, it has a foam lining that provides comfortable support. Thirdly, it has a light-weighted midsole that allows the foot to flex with natural motion, and lastly, it delivers heel-to-toe breathability. Nike has thrived to develop its product mix and convey the requirements of the additional market segments (Gregory, 2017). Secondly, the place, it is related to how the product will be given to the customers? How can they approach the correct distribution channel? Nike sells its products

through a vast number of outlets worldwide. Nike stores layout is basically a variation of free flow and loop layout to make it easier for the customers to walk throughout the whole shop and increase impulse buying. They also add a modern and sporty design to their shops and they also play active music to encourage customers to purchase their products. (Yu, 2015) Thirdly, the price, it determines the value of the goods or services. Moreover, it is also related to what the perceived value of the goods or services is to the client instead of an objective costing of the goods and services on offer. Nike charges high prices for its high-quality products and its well-known brand. The organization follows the value-based pricing strategy to increase the sales. When applying this strategy, Nike contemplates the customers perception about the value of its products. This value is used to find out the highest price customers are ready to pay in purchasing Nike products (Scribd, 2017).

Finally, the promotion. Nike relies on the successful promotion of its products to keep up a powerful brand image. This division of the marketing mix deals with the strategies that the organization uses to connect with its targeted market. The methods of promotion that Nike uses are: Advertising, Personal selling, Direct marketing, Sales promotions and Public relations. However, Nike depends mostly on the advertisements, because it the largest tool of attracting the customers, moreover, they usually involve celebrities in their adverts such as professional athletes or sports teams (Gregory, 2017).

Brand Sense Branding has reliably been tied in with setting up emotional ties between the brand and the customer. Like any relationship, feelings depend on accumulated information from the five senses. Nike really focuses on encouraging people and pushing them out of the traditional bondage or in other words “out of their comfort zone”. They have launched a campaign known as “Better for It” that encourages women because

Nike considers women to be as an enormously vital part of its customer base. In this campaign, they inspired women to come out of their comfort zones and start exercising, moreover, the message behind this campaign was to motivate women to stop fearing and start challenging themselves (O'Reilly, 2015). Nike inspires customers to think outside the box and do what is right, furthermore, brand sense is more to do with being ethical and doing things in the right manner. Lastly, Nike educates people in a way not to tell them directly to come and buy their products but in a way to show them how the products are physically and emotionally beneficial for them.

Marketing Ethics Ethics ought to be considered while promoting a product. Ethical marketing can be characterized as a way of life where all marketing activities are knowledgeable. Its objective is to promote legitimacy, duty and morality in marketing. In 1991, Nike was reported that they provide low salaries and poor working conditions in Indonesia. Later on, it became the topic of a violent and sustained campaign by “United Students Against Sweatshops”, but under the strong pressure Nike started to improve the working conditions and increase the salaries. They successfully enhanced their reputation and became market leaders. Additionally, Nike utilizes a couple of eco-friendly resources such as: organic and recycled cotton and polyester, has a waste and water reduction strategy in place in most of its supply chain (Robertson, 2017). However, Nike’s biggest ethical dilemma is that they outsource their products and they claim that it’s an American brand, which led to job losses in the USA, quality problems, loss in managerial control and lack of customer focus. Therefore, they don’t have corporate social responsibility.

Recommendation Nike does an impressive job at marketing its products through sensory marketing. They should proceed doing what they are doing and run the same marketing campaigns that inspires a lot of people. However, they should effectively stop “sweatshops” protest which results in bad impression on their reputation. In addition to that, they should emphasis more on females’ sports and they should design shoes that fits old people and pregnant women.

Conclusion In conclusion, this research has illustrated how much time and effort Nike applies to send an effective message through the campaigns that they launch. The brand has over topped the branding industry and they are considered to be market leaders. Through combining creative and out of the box ideas, Nike succeeded in winning a brand name and position.

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