MARKETING STRATEGY OF

NIKE
 NIKE
•NIKE was founded in 1964 with an investment of $500 by Phil
Night and Bill Bowerman.
•In the beginning, Knight’s company was a grassroots
organization. Knight would sell shoes at local track meets out of
his car. His grassroots strategy was born of low capital and
necessity, but became one of the strengths of the company. Blue
Ribbon shoes developed a reputation of authenticity and high
quality somewhat due to this grassroots strategy.
•Initially the name of the company was Blue Ribbon
Sports(BRS)
•They use to import and distribute Japanese specialty running
shoes.
•Nike brand was launched in 1972 and the company officially
changed its name to Nike,inc.in 1978.
 NIKE strategy in China
• Sports simply wasn't a factor in a country where education levels and test scores dictated success.
• So Nike executives set themselves a potentially quixotic challenge: to change China's culture. Terry Rhoads, then director
of sports marketing for Nike in China: thought 'We won't get anything if
they don't play sports.’

• He donated equipment to Shanghai's high schools and paid them to open their basketball courts to the public after hours. He
put together three-on-three tournaments and founded the city's first high school basketball league, the Nike League, which
has spread to 17 cities. At games, Rhoads blasted the recorded sound of cheering to encourage straitlaced fans to loosen up,
and he arranged for the state-run television network to broadcast the finals nationally. The Chinese responded: sales
through the 1990s picked up 60% a year. In this way they were able to hook kids into Nike early and hold them for life.
• Starting in 2001, Nike coined a new phrase for its China marketing, borrowing
from American black street culture: "Hip Hoop." The idea was to "connect Nike
with a creative lifestyle,“. The company's Chinese website even encourages rap-
style trash talk. "Shanghai rubbish, you lose again!" reads a typical posting for a
Nike League high school game. The hip-hop message "connects the disparate
elements of black cool culture and associates it with Nike,"
• Nike unabashedly made American culture its selling point, with ads that challenge
China's traditional, group-oriented ethos. This year the company released Internet
teaser clips showing a faceless but Asian-looking high school basketball player
shaking-and-baking his way through a defense. It was timed to coincide with Nike
tournaments around the country and concluded with the question, "Is this you?"
The viral advertisement drew 5 million e-mails. Nike then aired TV spots
contrasting Chinese-style team-oriented play with a more individualistic American
style, complete with a theme song blending traditional Chinese music and hip-hop.
 NIKE strategy in India
• Nike started its operation in India in 1996.
• Nike accounts for just 25 per cent of the Rs 375-400 crore branded
sportswear market.
• The biggest hurdle for Nike in India was its entry model and its lack of
aggression. When the global sports majors entered the Indian market in
1995-96, government policy dictated that they had to have a local partner.
• Nike agreed to an exclusive distribution agreement with a Delhi-based
trading firm Sierra, in early 1996
• Nike lacked in the strategy while Reebok was the first to understand the
ground realities in the Indian market. It was the first to build its
promotions around cricket, not only through endorsements but also
through sponsorships of regional and local cricket associations.
• Nike clearly didn't think the same way. Right from the start it has
used international ads and sports icons for promotions in India as
well -- and that hasn't changed still. Sports in India largely means
cricket and football. A Michael Jordan is irrelevant to the masses.
• Nike's product range has also been a problem. Globally, the brand is
a trendsetter in terms of design and technology. In India, however,
Nike was relatively slow in bringing the /latest designs. Nike started
importing more international ranges only after 2000.
• The biggest problem with Nike was that decisions on advertising and
store expansion was taken by the distributor.
• Things are finally changing. Last year, Nike ended its over-
dependent agreement with Sierra and became a 100 per cent
subsidiary of the US parent.
• The
New Strategy for India
product innovations have been incorporated thorough
localization and customization. For example, boots have been
specifically designed to match the hard Indian turf.
• Nike has won a Rs 196.66 crore bid to sponsor the Indian cricket
team's clothes for the next five years.
• As per the deal the members of the Indian team will wear only
Nike items on the field. The Nike logo will feature on the sleeves
of the players' non-leading arm. Nike will also become the official
apparel provider to the Indian team and has got the license to sell
Indian team merchandise like travel gear, head gear, t-shirts, caps,
socks, sunglasses and wristbands across the world.
• NIKE has roped in Baichung Bhutia as their brand ambassador
•
NIKE strategy in America
Nike marketing strategy is to show that buying its shoes makes people
inspired,cool,athletic and part of the world where Michael Jordan and
Tiger Woods play.
• Americans closely follow Lawn Tennis,PGA and Basket ball.So Nike
have signed the celebrities from these sports to endorse the product. Few
of them are Michael Jordan,John Macenro,Andre Agasi,Tiger Woods etc.
• Nike have been attacking the feminine demographic for the past few
years through new advertising and print campaigns, redesigned Niketown
stores and higher visibility at department stores, web site, magazine and
a timelier seasonal approach to women's apparel.
• The women's business effort and introduction of the successful new
"Presto" shoe are allowing Nike a certain amount of indifference to the
economy.
• Nike always believed in offering something
new.So they have always come up with the
unique designs to cater the market.
• NIKEiD enables online consumers to design
key elements of the shoes they purchase. The
program represents the first time a company
has offered mass customization of footwear.
• Rapid response to design changes(300 times in
an year).
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