Chapter 7: Business Marketing

Business Marketing: the marketing of goods and services to individuals and organizations for purposes other than personal consumption. The sales of Nike products to soccer club are an example of business marketing.  Each year Nike’s sale percentage increases, this shows us (public) how successful they are and also, it shows us that no matter what Nike always trying to give us the quality products.

Cristiano Ronaldo is one of the best soccer player in the world right now and Nike targets him as a Business model because Nike created a whole brand new collection called CR7 Collection. Because of him being one of the greatest, a lot of young athletes see him as a role model. 

Business Marketing on the Internet: The use of internet to facilitate the exchange of goods, services, and information between organizations. Nike’s other large amount of income, comes from their much modernized website. It’s easy to use and there are lots of features. Most useable one is NikeID because it provides people to customize the product that they choice for example they could change the color, they could add their initials and their favorite number, with this feature Nike tells us (public) create your style, tell other people that this is my shoe. Also, Nike almost have every sports on their website from soccer to swimming.

http://www.nike.com/us/en_us/
http://www.nike.com/us/en_us/lp/nikeid

As everybody knows World Cup is one of best and friendly competition in the world. Nike had the best percentage of World Cup internet buzz, as you see on the chart.

Nike has created a commercials about the competitions.

Chapter 8: Segmenting and Targeting Makets

Just like other companies Nike apply methods of segmenting and targeting markets in order to get the most out of their products. Nike describes the market and segment depending on the product that they are selling. Mainly Nike uses demographic segmentation, because when Nike creates a product that depends on the gender, age, income, and ethic background. For instance when Nike creates a soccer cleats, they make it as unisex.

Fernando Torres

Alex Morgan

When the gender is established,they usually have a foot chart,based on the ages of the customer (Youth Sizes,Big Kid Sizes and Adult Sizes). But Nike does not make a lot of soccer products for youth size, because they are just kid and they don't really know how to play. But of course age 10 and up Nike provides most of their cleats for kid, adult size Nike goes up to size 12 on their websites. Youth size (10c), Big Kid size (7y), and Adult size (11)

A lot of Nike products are broken down into different lifestyle; golf,soccer,football,swimming,and tennis of course there are more sports that Nike involved but these are the most common ones. These sports are Nike's target market for their clothing and sneaker products. Nike also uses it's Air Technology which makes the sneaker more comfortable, for clothing like jerseys, shorts, and socks Nike uses a very different kind of technology from their competitors. For example; DriFit is the most common one because Nike applies this technology to team jerseys, shorts, and socks. There are more than 10 different type of technology that Nike has created, and you could find them in this website (http://help-en-us.nike.com/app/answers/detail/article/product-technology/a_id/32760/p/3897)

Chapter 11: Developing and Managing Products

                        Since Nike been in business, they produced more than million sneakers.In Product Creation and Development, we are involved in the first stages of creating new products, commercialization and getting them to our consumers. This involves everything from idea generation, materials and construction, materials sourcing, product testing and product confirmation. One of the Nike’s upcoming soccer cleat “All Conditions Control” the previous shoes was Nike CTR360.

These are the facts and benefits between Nike ACC and Nike CTR360

                                                      DEADLY IN ALL CONDITIONS

The Nike GS Concept II Men's Soccer Cleat features the industry's first All Conditions Control (ACC) technology offering optimal ball control in wet and dry conditions. Made with only 160 grams of recycled and renewable materials, the Nike GS Concept II is among the lightest and greenest cleats Nike has ever made.

BENEFITS

• All Conditions Control (ACC) technology to help you grip the ball for the same control in any weather
• Solvent-free Kanga-Lite synthetic upper with zonal reinforcement for exceptional touch and control
• Diamond-silhouette spine for optimal flex and agility
• Nike GS lightweight traction plate designed with a high-performance chassis for strength, responsiveness and agility
• Anatomical and asymmetrical heel counter that locks the foot down for stability and support

 MULTIDIRECTIONAL TRACTION

The 360-degree cleat placement includes round cleats on the medial side and blades on the lateral side for ground-gripping traction in all directions. The firm-ground (FG) cleats are designed for use on short-grass fields that may be slightly wet, but rarely muddy.
LIGHTWEIGHT COMFORT
The Nike CTR360 Maestri III cleat offers a comfortable fit in a lightweight package. The EVA sockliner has PORON ® inserts for added cushioning and reduced cleat pressure, while minimal stitching in the forefoot reduces irritation without sacrificing lockdown.
MORE BENEFITS

• Low-profile, super-durable plate for responsive support and durability 
• TPU cleat islands for extra durability and impact protection in high-wear zones 
• Textured forefoot and midfoot for enhanced friction and control
• Asymmetrical lacing system for expanded ball control surface
• Upper material sits close to the foot for natural touch and fit

Nike always uses a famous soccer player to advertise this product. But the 2013 ACC did not release and Nike already used many players to advertise this product, for earlier version Nike used mostly middle-field players because of their ability to change the game.

Like every other company Nike has their product life cycle.

• Research and Development: Prototypes, Design briefs, Instrumentation, measurements, and tools to                                                    ensure satisfaction
• Marketing: Endorsments, TV, Magazines, and Bilboard.
• Manufacturing: Sweatshops, and Nike is the industry leader.
• Packaging: Corrugated cardboard, and Box Renovations
• Sales, Distribution & Transportation: $10.2 billion in footwear sales in 2009, Nike $19.01 billion in revenue $8.8 billion gross profit, 33% of the global market share, Many distribution channels, 20,000 retailers worldwide, and Variety of transportation including.
• Consumer Use: Variety of uses, and 300-400 miles per shoe
• Final Disposition: Nike being successful, and loyal customers.

SOURCE:http://www.personal.psu.edu/cdb5278/team1project1/Nike%20Product%20Life%20Cycle_files/frame.htm

Chapter 16: Integrated Marketing Communication

Integrated Marketing Communications is the coordination and intergration of all marketing communication tools, avenues, and sources..
Nike fully includes themselves to the concept of integrated marketing communications. Their integrated approach includes traditional advertising such as, billboards, magazines, and television.

this is an ad from a magazine

Sponsoring sporting players, and events such as World Cup, Euro Cup and Cristiano Ronaldo, Tiger Woods, and LeBron James. With Nike online marketing strategy, Nike ID gives consumers to customize their own product.

this is an ad from a bilboard

Just like other brands Nike wants know about what the receiver thinking about the product so Nike has created a forum where you can discuss or communicate with other people and let other people see you feedback's about the products (http://niketalk.com/f/).

Nike has at least more than 10 stores in many country which make them one of the best in the world.

Chapter 10: Product Concepts

Product concept: Management philosophy that a good product creates its market, and does not require heavy marketing expenditure. Nike's goal is to give customers the best quality products. Nike's first sports product was track running shoes, but after years Nike decided not to focus on just one product, they expanded the idea of including other sports like; Soccer, Football, Baseball, Basketball, Hockey, Tennis, and Golf these are just a few sports that Nike is participating. People use Nike products for many reasons. Many people believe that Nike give out what the costumers wants quality sneakers, jerseys, and shorts. Nike added a technology to most of their products, Dri-FIT is Nike's moisture managing material that expels perspiration from the body to the surface of the garment so the moisture can evaporate. The Dri-FIT technology is found within many of Nike's apparel items such as tops, bottoms and jackets for the ultimate in comfort. Dri-FIT is a high performance fiber made of polyester that is suitable for both cold and hot weather conditions. In hot weather, the Dri-FIT pulls moisture from the skin to the top of the fabric so it can evaporate. During cold weather conditions, the Dri-FIT fabric keeps moisture away from the skin to keep you warm and dry. 

The way Nike markets and advertise their products, the consumers right away creates an idea that Nike is a special product. A lot of people purchases their favorite teams jerseys, shorts, cleats Nike gives their costumers to customize their own cleats and if they want they could add their favorite team logo, which makes people interesting to buy it, this give Nike a huge advantage against their competitors. Nike is trying to create different kind of technology and apply it to their new products.This is how Nike created the technology to make the players faster.

This is how Nike created the technology to make the players faster.

Cristiano Ronaldo racing versus one of the fastest cars in the world and BEATING IT!

Nike shows us what type of materials they use to make a nice shoes.

Chapter 18: Sales Promotion and Personal Selling

        Sales Promotion: is marketing communication activities, other than advertising, personal selling, and public relation. Like all other companies Nike promotes sales every season by season Nike’s percentage of selling products increases because of sales promotion. Nike also, offers people to subscribe their email, monthly sales, and to presents a lot of coupons when there is a season sales. Just like other companies Nike also has franchisee stores like Modell’s, footlocker, and other similar sport store.

This is a running shoe from Nike's official website.

         Personal selling: is a purchase situation involving a personal, paid for communication between people in an attempt to influence each other.

Seven Steps in the Personal Selling

1) Generating Leads                                              

2) Qualifying Leads

3) Approaching the customer and probing needs

4) Developing and proposing solutions

5) Handling objections

6) Closing the sale

7) Following up
                                                                                                                                         As you see on the chart Nike has the lead because of Nike's special created products for World Cup for example the jerseys, t-shirts, soccer balls, and special edition soccer cleats. Nike has a great way to deliver their products to customers when they place their order. For example one of my friend ordered one of these cleats and they told him you will be able to get them in one week, they also told him that he could track his order. After a week he got them, and hes still wearing them even tho it's been two years. Nike's leading the world's sports industry; "the Nike brand is worth $15 billion and has a 38% share of branded footwear industry. Following Nike is ESPN with $11,5 billion, Adidas with $5 billion, Sky Sports, and Gatorade".

(Source: http://society.ezinemark.com/worlds-top-sports-brands-2011-77371273fed0.html )

Chapter 17: Advertising and Public Relations

The next wave are here. Neymar, M'Vila, Götze. Hungry to break through. Unafraid to line up with Ribéry, Sneijder, Ronaldo. Followed by thousands more. Ready for the chance. Are you? Watch the film, then find what it takes to make it.

      

Advertising is impersonal, one-way mass communication about a product or organization that is paid for by a marketer. When a company advertise their product that company needs to have a good Public Relations; the marketing function that evaluates public attitudes identifies areas within the organization the public may be interested in and executes a program of action to earn public understating and acceptance. When Nike advertise they have advertising strategies just like the other competitors.
Advertising Strategies,

• Designed to make a connection to the consumer.
• Seldom pitch the product directly or talk about product attributes.
• Sometimes do not even mention the company's name featuring instead only the swoosh logo.
• Seek to portray the core value of sports.
• Collaboration ADs with another strong branded product such as Apple Ipod.

Source: http://www.scribd.com/doc/77555533/Advertising-Strategy-of-Nike

Also, Nike's strongest way to advertise is employing so many athletes that are famous and everybody in the world knows them, such as; Cristiano Ronaldo, LeBron James, Ronaldinho, Tiger Woods, Serena Williams, and Michael Jordan. These are the athletes from different sports.

Cristiano Ronaldo                     Serena Williams                                            Tiger Woods  

       Its been years since the sweatshop article in the media alleging that factories in China and Indonesia were forcing workers to work long hours for low pay. This cause created a public relations nightmare for Nike Inc. Nike was in huge crises because the didn't know what to do but Nike joined a task force called fair job labor association to access whether companies are abiding by the code and banish sweatshops, in the athletic shoe, and clothes industry. Knight promised to meet the U.S Occupational Safety and Health Administration (OSHA). He said that the minimum worker age for Nike factory would raused to 18 years for full-time employees and 16 for the part-time ones.To better themselves Nike redeemed itself by slashing over time, improve safety and ventilation, and reduce the use of toxic chemicals. Its good to see Nike took steps to improve the accusations they were accused of, but should have been taken care of as soon as it they were aware of them. And that how Nike fixed the problem with the public.

Jim Keady were interviewed by ESPN about the "SweatShops"

Chapter 15: Retailing

         Retailing is all the activities directly related the sale of goods and services to the ultimate consumer for personal, nonbusiness use. Nike is one of the largest sportswear in the world. Nike sells its product over 170 countries; United States through Africa, Asia, Middle East,Europe, and South and North America. Nike also, sells its product through other retail stores such as; Modell's, FootLocker, Dicks Sporting Goods, and etc.

         Nike is focusing on the development and sale of athletic footwear especially on soccer equipments. Nike also uses other retail stores such as; Modell's, FootLocker, and Dicks Sporting Goods. Nike also gives their customers opportunities to shop without visiting the store this action called the non-store retailing. Nike gives chance to their customers to customize their own stuff like; shoes, jerseys, and etc. This way customers could wear what they want.

                                          

Chapter 6: Consumer Decision Making

     Consumer behavior processes a consumer uses to make purchase decision, as well as to use and dispose of purchased goods or service. Consumers make the decision that is the one of the policy every company has. At Nike, their job to know what motivates and inspires the consumers. Nike transforming it’s organizational structure from a product innovation orientation such as equipment, apparel, and shoes, to a consumer experience one such as; soccer, basketball, running, tennis, and golf in order to deliver richer stories for the product. But Nike puts the consumers at the center of everything they do whether it is in global communication, global marketing or brand marketing. In brand marketing, Nike communicates one of the most recognized brands in the world. So Nike have to come up with better ideas than their competitors Nike tries to communicate with the consumers by trying to drive connection through variety of channels. Nike takes several surveys explains why they make their products instead of what are their products through speeches collecting past data on previous products then implying  to products to create a new experience for the customer. Most of the people choose Nike because the way they advertise, try to serve best quality products, or the way they try to connect people.

"The team with one mission to finish what they have started……. became so close to learn one thing when you give everything you lose nothing". WRITE THE FUTURE

      

Chapter 5: Developing Global Vision

Global Vision is how you planing to expand the company but Nike does not really need to do anything from now on because Nike is the one of the best known sports company in the world. Nike is very into its global marketing and selling globally. Internationally, you can find the swoosh symbol anywhere. This is because of their incredible job marketing to different people and environments. A lot of people tend to do a joint venture with Nike because of how recognizable the brand. So that cuts out all of the hard work for Nike because they generally don't have to alter the product or the promotion for the global marketplace. They mainly receive most of their global sales from their futbol (soccer) department because of the popularity of the sport. They sponsor almost every impact player of every country to draw the nations interest in their product. Nike's sales of soccer is current about 1 billion a year, 25 percent of the market.










Especially on soccer brands, Nike signed a lot of players, and people who watches soccer have their own favorite soccer players, they want to buy same gears that the players wearing. For example Mesut Ozil (Germany), Cristiano Ronaldo (Portugal), Wayne Rooney(England), Sergio Ramos(Spain), and much more players from different countries. But its just not the players, Nike also signs sponsorship with the club teams.

Chapter 4: The Marketing Environment

Nike got started in 1964 selling low-priced high-quality shoes that were made by a Japanese company. Its strategy of sourcing shoes from low-wage countries in Asia had been one of the fundamentals of the company’s strategy.As economic conditions changed and wages increased in the countries from which Nike originally bought shoes, the company shifted its sources of supply. Nike shoes were coming from China, Vietnam, and Indonesia. As the company’s visibility increased, so did the scrutiny of its practices.



Nike's management analyzes its internal environment by making decisions based on that analysis, seeing what customers would want in their products also called their target market, and how the external environment shapes and remolds that. But every company has a weaknesses, Nike's weakness is to foresee problems in relation to labor and factory conditions at production locations has resulted in bad publicity and declining sales as society and consumers call for more "socially responsible" companies. Because of that Nike's marketing research, the company has decided to revamp its apparel division to be more fashion savvy, and there shoes to be more innovating. Nike creates designs for men, women, and children, running, basketball, and cross-training is some of its top selling product categories.

Chapter 3: Ethics and Social Responsibility

Over the years Nike has become the biggest leader in athletic shoe industry and global entity, but with it ethical issue has brought up. For instance Nike came up with an contract that offered to St. John University, but there was an issue Jim Keady who's the coach for St. John's soccer team, he didn't want to sign the contract because of Nike's sweatshop in Indonesia and the unfair pay of labors. Because of him rejecting the contract St. John forced him to resign, he wasn't interested wearing Nike product because of unfair pay to the labors.

Jim Keady were interviewed by ESPN three years ago and he went to Indonesia and lived there for couple months but he couldn't do anything then he traveled back to the United States and he went to Oregon, walks in to a restaurant and sees Phil Knight who is CEO for Nike. In this video he was trying to interview Phil but he rejected Jim Keady.

With all this going on the discovery became public knowledge instead of confidential bringing the government of other country's to get involved , making Nike take social responsibility for their actions. Nike joined a task force called fair job labor association to access whether companies are abiding by the code and banish sweatshops, in the athletic shoe, and clothes industry. Knight promised to meet the U.S Occupational Safety and Health Administration (OSHA). He said that the minimum worker age for Nike factory would raused to 18 years for full-time employees and 16 for the part-time ones.To better themselves Nike redeemed itself by slashing over time, improve safety and ventilation, and reduce the use of toxic chemicals. Its good to see Nike took steps to improve the accusations they were accused of, but should have been taken care of as soon as it they were aware of them.

Chapter 2: Strategeic Planning for Competitive Advantage.

Nike uses there athletes as sponsors to advertise their products. Nike created type of products that will appeal to as wide of an audience as possible while using the celebrity  athletes to endorse them. Nike started a shoe company and their mercurial soccer shoe is now the one of the most popular brands for young athletes and professional athletes. Featuring Cristiano Ronaldo the greatest soccer player of all time which is he's still playing at age 27. To young athletes he's like an idol to follow so basically those young athletes want to wear Nike's Mercurial and they wants to play like Ronaldo.








      Nike came up with an slogan "Just Do It". The slogan found in 1988 at the agency ad meeting. The "Just Do It" campaign allowed Nike to further increase its share of the domestic sport-shoe business from 18% to 43%, (from SEK 6109.40 million to SEK 64.09 billion in worldwide sales) from 1988 and 1998.[3] In many Nike-related situations.(http://en.wikipedia.org/wiki/Just_Do_It_(Nike))

The greatest threat for Nike is the inevitable stiff competition from other sports brand, especially Adidas. For a company to succeed in competition there is a continuous need to develop new products with higher quality than its competitors. Competitors like Adidas, Puma, Reebok, Under Armor, Lotto, and alternative brands to take away Nike market share. They compete Nike with in Product design, quality, technology, advertising, and competition price. NIKE’s advantages over their competitors can be summed up
using one strategy, differentiation strategy. This requires their firm to create something about their product or service that is perceived as unique throughout the industry. This can be accomplished by many strategies such as, their warranties, brand image, technology, features, services, quality/ value and more. By always being aware of where new revenue streams will pop up is a big advantage in their industry because the first to patent a new style or product will be the company that sticks in the minds of their customers.

Chapter 1: Mission Statement

Mission Statement; Nike & Nike Soccer
It started with a handshake between tow visionary Oregonians- Bowerman and his University of Oregon runner Phil Knight. Two of them and the people they hired evolved and grew the company that become Nike. Nike is an U.S made and its based on creating and selling like; athletic footwears, clothing, and equipment that is unrivaled in the world. Early years soccer cleats can be traced back to mid late 1500s, but in 1971 Nike created its own made soccer cleats which its going to be huge impact to the world of soccer. Nike and Mr.Bowerman has one simple goal is to give athletes the great  and quality materials. For soccer Nike has very successful brand and it's still improving and creating great quality soccer gears. That's why most of the soccer athlete choose Nike as their sponsors.

References: (http://nikeinc.com/pages/about-nike-inc)
                      (http://www.livestrong.com/article/350275-the-history-of-nike-soccer-cleats/)

Chapter 1: Brief History For Nike and Nike Soccer

1950-1959: Before there was the Swoosh, before there was Nike, there were two visionary men who pioneered a revolution in athletic footwear that redefined the industry. Bill Bowerman was a nationally respected track and field coach at the University of Oregon. He had the idea of innovations in running shoes. But the shoe manufacturers in 1950s ignored his idea.
1960-1969: Later on his ideas linked by a sports company named Blue Ribbon Sports, pledged $500 each and placed their first order of 300 pairs of shoes in January 1964. While his shoes out sold Tiger shoes, also he had an idea of making the shoes lighter and better quality, and he made his University of Oregon runners to wear-test his creation. In Essence, the foundation for what would become Nike had been established.
1970-1979: Between 1950-1979 he's ideas were only Track and Field shoes. But he had success every track and field athlete like Nike's shoes and for me that's when the competition started.

1980-Present: A decade later Nike entered the 1980s on a roll, Nike launch of Nike Air technology in the Tailwind running shoe in 1979. By the end of 1980 Nike became a publicly traded company also, the completed its IPO. Nike also created shoes for other sports for instance; basketball,soccer,tennis,football,and baseball. While Nike had designed footwear and apparel for gold and soccer for a number of years, the mid-1990s Nike signed several individual players from what would be the World Cup-winning Brazilian National team. In 1995 the signed the entire team, and began designing the team's Uniform. In 2000 Nike known as one of the best sportswear in the business. Later on they started signed a lot of players from different sports. For instance one of the highest-paid athlete in the world, he ranked #9 he gets around $12 million a year just from Nike. This is how Nike do their advertising "“Secret Tournament” incorporated advertising, the Internet, public relations, retail and consumer events to create excitement for Nike’s soccer products and athletes in a way no single ad could ever achieve. This new integrated approach has become the cornerstone for Nike marketing and communications." (http://nikeinc.com/pages/history-heritage#tab6-tab)

Manufacturing soccer gears: The  company known as Nike was formed in 1962 as a major distributor for Japanese-made running shoes, starting its import practice in 1963. Next 10 years showed that in a retail shop and name change from Blue Ribbon Sports to NIke, Inc. in 1978. The first Nike soccer shoe design in 1971.

                                                              Nike Mercurial Vapor Superfly III

Resources: http://nikeinc.com/pages/about-nike-inc