Nike s Brilliant Marketing Strategy

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1 Nike s Brilliant Marketing Strategy By: Brandon Tatera LLD 100WB Prof. Judy Harper San Jose State University 1

2 Nike s Brilliant Marketing Strategy Introduction Why should you choose Nike? That is the question Nike asks themselves daily as they seek new ways to innovate and distinguish themselves from competitors. Nike s differentiation strategies include its style, quality, and brand loyalty. Nike is admired for the unique styles of its shoes. Nike offers shoes in all colors,types,and styles, which makes the brand an option for men and women of all ages. In addition to seemingly every shoe type and style a person can imagine, Nike appeals to its those who seek something different through NikeID.com. Nike s user friendly website gives consumers the ability to pick a specific shoe and design the shoe and its colors entirely,from laces to soles. That application feature makes Nike unique from its competitors and gives customers an avenue to invoke their creativity and design a product made specifically for them. The quality of Nike s shoes are another reason for why they are the leading athletic shoe provider in the world by a considerable margin. Nike s shoes have the latest technology and last a long time, whether they are worn daily or rarely. Some shoes can last years. The fact that consumer s trust their product and its reliability is a marketing tool by itself. Nike sells 2 billon pairs of shoes on average globally each year. Nike s new signature LeBron James 1 shoe has all the latest technology, but many of the critics think that it is not worth $300. Nike plans to sell these shoes at this price because they believe they are reasonably priced because it has the newest,cutting edge shoe technology. The Air Jordan 2 retro shoes also create the same excitement; a crowd of primarily males of all ages will wait in lines for days to get that pair of shoes,which shows their brand loyalty to Nike. Many are shoe collectors that collect shoes for a hobby and some are just there to buy them and sell them for a higher price later in the day. 1 NBA player who plays for the Miami Heat and has a signature line with Nike. 2 Michel Jordan sinniture shoes that came out in 1980 s but now are coming back as retro style shoes. 2

3 One reason people wear the Nike brand of clothes and shoes is because they want to fit-in with a society and the culture that has been created through brand awareness. The ability to stand out in a crowd of people because you are wearing expensive branded clothes is a creation of society, as we superficially believe that makes us better person. Nike fits into that role because they are and have been the chosen fashion. Brands have their own specific roles and places in society,such as Gucci and Prada being notorious with glitz and glamour and higher end society and their specific events. Nike s prides themselves on being a brand that can be worn at all places by any person. Nike s products are used by consumer in many ways and settings,which range from simply a person wearing a Nike shirt,shorts,and running shoes on their morning jog, or to a person wearing a Nike polo shirt,fleece, and shoes to match with jeans or slacks for a night out on the town. Nike also offers products in all price ranges which appeals to all consumers. The persuasive advertising and marketing strategies of the Nike Air Jordan and LeBron James (sneakers) have created a culture of customers who will go out of their way and sometimes beyond their financial means to buy these products. The person s motivation to purchase these shoes is his or her need to belong within a particular part of society. Nike has created brand loyalty among its customers to come back for that product again and again regardless of the price and sacrifices they must make to afford them. Materialistic things make people happy, from what brand they wear and how they wear it in everyday lives. Status in our society is also really important to many people, its important because the way they viewed in society or within their friends circle is somewhat based on their look. The need for Nike sneakers is a must because people wait hours in line for a particular shoe, which they are not even guaranteed to get due to each specific store s limited quantity. Nike s marketing strategy is amazing they create buzz and excitement for their products based on the fact they are limited in stores,which adds to the excitement. Company Profile Nike is the worldwide leader in supplying athletic shoes around the world. Nike supply s shoes for NBA players that play on the court and supply s apparel for almost every major athlete in the world. 3

4 Brand loyalty Nike s Brand Loyalty is amazing because people will wait days just to get their hands on the new sneakers coming out. Many people go out their way to get a new pair of Air Jordan s and people pay outrageous prices for many different styles of shoes, in all kinds. Brand loyalty is mainly built on trust and the product that the company comes out with, not every brand has a brand loyalty like Nike, and they wish they did because if they did they would be a very successful company. Nike relies on its customers and the Nike culture of products to ensure sales and profitability, they know their loyal customers will camp out for days to buy the product, and they know that they will pay the Nike s MSRP without any hesitation. Every black Friday there is a Nike Air Jordan release, people wait in lines all day on Thanksgiving Day to get their hands on the latest Retro Air Jordan. They are sold out within minutes of the store opening with online markets selling out faster.nike has a great marketing strategy as they capitalize on a the shopping frenzy known as black Friday by creating interest and excitement for their shoe release. That s the reason Nike comes out with limited numbers of shoes because they want people to be brand loyal saying that Nike only makes the best product that s why people wait in line for them. No other shoe company has brand loyalty like Nike does, such as Adidas or Pumas. 4

5 Materialism Buying brand named items so we can blend in to our own society and we can fit into our friend s circle, and admire our role model. Many people get happy with wearing name branded clothes even though they are not able to afford it, and that s where the company s great marketing strategy comes in such as Nike. Nike uses the celebrity s such as LeBron James, Michel Jordan and Tiger Woods to sell its products because when we like a particular celebrity we look at them as our role model and will do anything to be like them, if they wear a certain brand we will eventually get the same brand because we as a society think that if we do that we are going to be a part of them. Many women and men wear designer clothes, one because they can afford them, and the other reason they wear them to get noticed in the society and get complements because they are wearing a certain brand. A great example of that would be is when Nike comes out with the new shoe many people add those to their collection and many people wear them and get complements on them wherever they go with them. The last reason people try to go out their way to fit in and wear high named brand clothes is because it makes them happy, and they have every right to wear brands such as Nike, Gucci, Louis Vuiton and many others because if it makes us happy that s what we live for. Status Buying Nikes sneakers makes us a part of a large society, it s a culture we adapt, its society we accept and it s the belongings we agree on. Buying Nike products makes us want to be a part of team Nike, from the many celebrities they endorse and the great product they come out with. Nike s products come with passion and energy, when Nike comes out with something they want you to be a part of it from the advertising campaign to the actual product. Many people around the world wear Nike products, by creating that Nike makes its own society and the culture,which is shared by millions of people worldwide.when people wait in line for the new Air Jordan s they wait because they want their status within a society, and they wait because they want to get noticed with that product when they wear them and compliments when people see them. 5

6 We buy brand named products to fit in to a society that s filled with materialistic things, we buy products because it makes us happy and the status of how we are looked at in society. Status is a really broad thing, but it also ties in with Nike, when a person waits for 2 days in line to get a pair of shoes he does that because he wants to be the one to get the shoes in his friend s circle, he wants the right to say that I got the shoes. Because once if you get the shoes, all the good things will come people will talk about your new shoes, when you go to a local mall you will get compliments on your new limited edition sneakers, but behind all these things is Nike s brilliant marketing strategy that makes us want that status in our society that makes us want to buy these expensive Nike sneakers. Nike has created their own market so these things routinely happen. Nikes marketing team has done a great job creating belongingness, brand loyalty and status, within a society. 6

7 Need Many people go out their financial needs to buy a particular product, in this case is the Nike shoes. People wait in lines; pay outrageous prices for a pair of sneakers that has created the hype. Needing to buy a product is a luxury, and it s a luxury to be able to afford Nike shoes. Nike has decided to come out with the new LeBron James shoes that are priced at $300 dollars. Nike believes they are reasonably priced because they have the newest technology and many improvements within the shoes from last year last year that same new LeBron James shoe was priced at $180 and many people thought that was over priced for a pair of sneakers. Many people will not be able to afford the new shoes, but the need aspects of a human mind will want to buy them even more. In the many urban areas people will fight each other for a pair of shoes or simply a riot once they are walking out the mall after purchasing a particular pair of shoes. Other concern that many people have which is, is it even safe for a teenager to wear a pair of shoes that are $300 because the media and Nike have already created the hype for that shoe, but Nike s mission statement has always been to come out with the most comfortable and affordable shoes, is this shoe going to be affordable for every house hold kid who wants a pair of these. 7

8 References Commuri, S. (2009). The impact of counterfeiting on genuine-item consumers' brand relationships. Journal of Marketing, 73(3), Friedman, M. (1985). The changing language of a consumer society: Brand name usage in popular american novels in the postwar era. Journal of Consumer Research,, Li, F., & Shooshtari, N. H. (2007). Multinational corporations' controversial ad campaigns in china--lessons from nike and toyota. Advertising & Society Review, 8(1) Moeran, B. (2003). Celebrities and the name economy Emerald Group Publishing Limited. Ommen, B. (2010). LeBron james and the protocol of display. Public Culture, 22(2), Schlecht, C. (2003). Celebrities impact on branding. Center on Global Brand Leadership, Columbia: Columbia Business School, Spence, K. (2008). Nike: By the numbers. Editorial Board,, 7. Doole, I., & Lowe, R. (2008). International marketing strategy: Analysis, development and implementation Cengage Learning EMEA. Firat, A. F., & Shultz II, C. J. (1997). From segmentation to fragmentation: Markets and marketing strategy in the postmodern era. European Journal of Marketing, 31(3/4), Keller, K. L. (2001). Building customer-based brand equity: A blueprint for creating strong brands Marketing Science Institute. Olsen, B. (1993). Brand loyalty and lineage: Exploring new dimensions for research. Advances in Consumer Research, 20(1), Schmitt, B., Zarantonello, L., & Brakus, J. (2009). Brand experience: What is it? how is it measured? does it affect loyalty? Journal of Marketing, 73(3),

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