Free Essays on Nike

From 1948 to 1973 Bill Bowerman was the head track coach for The University of Oregon, in Eugene. He was also an Olympian and an Olympic track coach. These were only some of his small steps he had taken towards rewriting to scrip for the new generations of athletes. In 1957, Phil Knight joined the University of Oregon track team as a middle-distance runner. Knight after receiving his degree in accounting from Oregon, he went to Stanford in hopes of an MBA. Soon after Knight graduated from Stanford he took a tour around the world. While traveling, Knight stopped in Japan to contact Onitsuka Tiger Company, who manufactures quality athletic shoes. His hopes were to convince them there were great marketing opportunities for their product in the United States. Knight was able to persuade them to manufacture his athletic shoe by telling Onitsuka Tiger Co. he owns his own company, which he called Blue Ribbon Sports. Now all Knight needed was some help to market and finance the start up cost of the company. In 1962 he returned to Eugene, Oregon, home of his former track coach and at that time still the powerhouse of American track and field. Knight approached Bowerman with a business plan for bringing low-priced, high-technologic, athletic shoes from Japan and marketing it in the U.S. Knight’s hopes were to remove the German domination in the U.S. athletic footwear industry. By early 1963 Bowerman and Knight formed a partnership under Blue Ribbon Sports. After each partner contributed $500 and shook hands, they started importing their Tiger shoes. Their first shipment of 200 shoes from Onitsuka Tiger Co. arrived in December of 1963. Knight, who worked for an accounting firm, used his spare time to promotion and selling the Tiger Shoe. He early distribution efforts were to sell the shoe out of his parents’ basement and out of the back of his car at local and regional track meets. Pretty soon, shoes from Blue Ribbon S... Free Essays on Nike Free Essays on Nike Do most consumers shop with a â€Å"social conscience?† (Think about it. Are you aware of where the products you purchase are made and under what conditions they are manufactured?) When consumers buy products, without knowledge of their origins, they could easily be breaching their own code of ethics. This is clearly seen in an assortment of industries. Each year hundreds of companies employ foreign labor for low wages and in terrible working conditions. For example, much public attention had been brought to Kathy Lee Gifford and her â€Å"sweatshops† overseas, as well as other unfair labor practices in third world countries. One of the greatest participants in this mistreatment of workers is the Nike Corporation. To earn the maximum profit for their products, Nike exploits thousands of workers each year by offering them diminutive wages and the worst conditions to work under. When famous athletes endorse Nike and consumers continue to purchase their products, they only encourage and support these inhumane practices causing them to virtually go unnoticed (Greene, 1998). Last August Donna Greene of the New York Times conducted an interview with Dr. Fredrica Rudell, Associate Professor of Marketing and Chairwoman of the Department of Marketing and International Business at Iona College in New Rochelle, on the subject of shopping with a â€Å"social conscience.† Dr. Rudell, who has chaired the Environmental Concerns Committee of Iona’s Peace and Justice Program for sixteen years, believes that each time a consumer buys a product he or she casts a â€Å"vote for the company that made the product†¦Ã¢â‚¬  (Greene 1998). Dr. Rudell points out that companies respond well to what the consumers have to say, citing the environmental and health movements as examples. The Nike Corporation, unsurprisingly, was mentioned several times during the interview. She criticized their labor practices and pointed out that until the public pressured Nike ... Free Essays on Nike Introduction Timing Nike’s success can be attributed to the era of â€Å"fitness craze† in 80s, when indoor activity like aerobics became enormously popular. There was a revolutionary change in how people perceived about sports. No longer sports were regarded as merely for recreation. Rather, sports are essential in order to live in healthy and productive life. More and more people start to exercise among poplar ones were jogging and aerobics. As result, demand for athlete footwear increased. In 80s, Reebok with their stylish â€Å"FreeStyle† shoes, specifically for indoor activities, was number one at the time. But, very soon eventually Nike would take over Reebok and become dominant force in athlete footwear and apparel industry. Marketing Strategy Probably the most important marketing strategy( and very successful one) was endorsement of top athletes in every sport. It is this strategy that enable Nike to extend its popularity â€Å"beyond one segment, but in to children’s men’s, women’s and all the levels (cross-training, basketball, etc.)†( Peedin: 3).Endorsement was the primary weapon being used to attain its goals to dominate the market. Nike was pioneer in endorsing famous athletes to promote the products. It was not after proving the effectiveness of endorsement, other companies, such as Reebok, followed the footstep of Nike. First athlete to be endorsed was running star Steve Prefontaine in 1973 . Then came along with Jimmy Connors, tennis star in 1974. And in 1985, Michael Jordan, the most important athlete Nike ever had(Peedin: 3). The strategy was to make connection between products and athletes, not to emphasize the product itself in advertisement. To do so, Weiden & Kennedy, Nike’s advertising company, applies â€Å"image transfer†(#1). It is a method â€Å"to create a mood, an attitude, and then associate the product with that mood†. A connection implies that the best athletes prefer Nike products. For example, one c... Free Essays on Nike Nike is in the footwear, apparel, equipment, and accessory products industry. All of Nike’s chief products are athletically inspired. Its footwear consists of Men’s, Women’s, and Children’s shoes; further subdivided into the following categories: Running, Basketball, and Cross-raining. Nike’s shoes also address the market for outdoor activities. Its thorough response to these activities has been the introduction of the following shoe designs: tennis, golf, soccer, baseball, football, bicycling, volleyball, wrestling, cheerleading, aquatic activities, street/roller/ice hokey, and hiking. Nike is further addressing new niche markets every year. The principal products used in Nike’s footwear products are natural and synthetic rubber, plastic compounds, foam cushioning materials, nylon, leather, canvas, and polyurethane films used to make AIR-SOLE cushioning components. The main components used in making Nike’s apparel products are natural and synthetic fabrics and threads, plastic and metal hardware, and specialized performance fabrics designed to repel rain, retain heat, or efficiently transport body moisture. As of last year, Nike’s sales revenue was approximately $10.697 billion. The mix of Nike’s product sales varies considerably due to changes in seasonal and geographic demand for particular types of footwear, equipment and apparel. During fiscal 2003, Nike’s sales in the U.S. accounted for roughly 49 percent of total revenues as opposed to 51 percent in international markets. Total assets in 2003 were approximately $6.714 billion. This was comprised of cash and equivalents of $634 million, inventories of $1.515 billion, and working capital of $2.665 billion. As of May 31, 2003, Nike employed approximately 23,300 people. It is interesting to note that there has never been a material interruption of operations due to labor disagreements. Nike’s domestic distribution centers for footwear are loca... Free Essays on Nike Nike In today’s society, companies are striving for excellence. There are not many companies out there that we can say are excellent. The ones that we say are excellent have become that way because they have succeeded in four different areas, consumer excellence, product development, good promotional planning, and sponsorship. Nike has succeeded in all four areas and has benefited tremendously in their efforts to establish themselves as the top sportswear selling company in the world. Nike designs, develops, and markets high quality footwear, apparel, equipment, and accessory products. Nike is the largest seller of athletic footwear and athletic apparel in the world. They have been around for many years and have developed themselves as the most popular brand name in the sportswear industry. The company sells its products to approximately nineteen-thousand retail accounts in the United States and through a mix of independent distributors and licensees in approximately one hundred and forty countries around the world. Continuing, consumers around the world have become very loyal to Nike’s products and services. One of the main reasons why Nike has become so successful is because their consumers are extremely loyal and continue purchasing their products year after year. As expected, there are tremendous amounts of people ranging from the ages of five to eighteen purchasing Nike footwear and apparel. What society hasn’t expected is that people also ranging in age from twenty to forty year olds purchase Nike products. Males dominate most of Nike sales because in the past Nike has marketed their products to mainly male athletes. This is overwhelmingly true of course, but what Nike is now trying to do to make things both male and female orientated by intensifying the competition in the women’s market. They have recently hired Clare Hamil to VP of Women’s Business and are formatting a new unit to focus on w... Free Essays on Nike Introduction Former University of Oregon track coach and co-founder of Nike Bill Bowerman once said: â€Å"If you have a body, you are an athlete!† (NikeBiz) This way of thinking is how Nike conducts every aspect of their business. Every person is a potential athlete or â€Å"consumer†. This is a common term when used in the realm of athletics but when Bill Bowerman said this it was in direct reference to the shoe industry. From their marketing strategies to their selling philosophies, Nike has developed one of the most recognizable and demanded name and logo tandems ever. Nike, which is the Greek Goddess of Victory, was born in 1972 when BRS, Blue Ribbon Sports, launched its first branded shoe at the U.S. Olympic track and field trials. A former University of Oregon track team member Phil Knight created Blue Ribbon Sports. At Oregon, Knight was coached by the legendary Bill Bowerman and then went on to become and alumni of the Stanford School of Business. BRS was crafted in 1962 when Knight made a deal with Onitsuka Tiger Company, a Japanese shoe company, to import their shoe to the United States. Knight had the idea to sell a low cost shoe with a very high quality. Knight had high aspirations of taking Adidas out the top spot in the athletic shoe market. In 1964, Bill Bowerman decided to join Knight as a partner at BRS to create a joint quest to be number one. Bowerman redesigned the Tiger shoes while Knight acted as the accountant/personal seller and went on the road to sell their newly crafted sneakers at track meets and local shoe stores. By 1966, Blue Ribbon Sports opened their first store in Portland, Oregon. Knight and Bowerman managed the store with the only other employee being a former Stanford runner Jeff Johnson. (story/chrono, 1) Signing First Endorsers During 1971, BRS caught a break when a trading company called Nissho Iwai introduced BRS to important letters of credit. This credit allowed BRS to subcontract it... Free Essays on NIke From 1948 to 1973 Bill Bowerman was the head track coach for The University of Oregon, in Eugene. He was also an Olympian and an Olympic track coach. These were only some of his small steps he had taken towards rewriting to scrip for the new generations of athletes. In 1957, Phil Knight joined the University of Oregon track team as a middle-distance runner. Knight after receiving his degree in accounting from Oregon, he went to Stanford in hopes of an MBA. Soon after Knight graduated from Stanford he took a tour around the world. While traveling, Knight stopped in Japan to contact Onitsuka Tiger Company, who manufactures quality athletic shoes. His hopes were to convince them there were great marketing opportunities for their product in the United States. Knight was able to persuade them to manufacture his athletic shoe by telling Onitsuka Tiger Co. he owns his own company, which he called Blue Ribbon Sports. Now all Knight needed was some help to market and finance the start up cost of the company. In 1962 he returned to Eugene, Oregon, home of his former track coach and at that time still the powerhouse of American track and field. Knight approached Bowerman with a business plan for bringing low-priced, high-technologic, athletic shoes from Japan and marketing it in the U.S. Knight’s hopes were to remove the German domination in the U.S. athletic footwear industry. By early 1963 Bowerman and Knight formed a partnership under Blue Ribbon Sports. After each partner contributed $500 and shook hands, they started importing their Tiger shoes. Their first shipment of 200 shoes from Onitsuka Tiger Co. arrived in December of 1963. Knight, who worked for an accounting firm, used his spare time to promotion and selling the Tiger Shoe. He early distribution efforts were to sell the shoe out of his parents’ basement and out of the back of his car at local and regional track meets. Pretty soon, shoes from Blue Ribbon S...