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... become an official Games sponsor, while Nike's budget and marketing strategy is more focused on world sports greatest names. Therefore, as far as Nike corporation spends so much efforts on marketing, it was very important that Nike was present in Beijing for there is much at stake - as the unseemly scrambling to ensure a specific kit is worn during a medal ceremony proves. (Adidas and Nike Vie for Top Place on Podium; BUSINESS OF SPORT, 2008) This fierce marketing competition between Nike and Adidas the companies are involved into to conquer China market it not accidental, as both Nike and Adidas run more than 4, 000 stores across China alone, and plan to expand significantly over the next few years. Therefore, Nike's global marketing plan is aimed not only to establish and maintain world presence and brand awareness, but also to win popularity and to become a number one sports equipment and apparel company, retaining its positions in a highly competitive environment.
However, according to other sources, Nike is not always successful in its marketing endeavors, especially comparing its performance with Adidas. For example, in October 2008 Adidas has announced its new advertising campaign with participation of six Nba's top famous stars. There is an assumption that this campaign, known as Basketball as a Brotherhood, has more chances to become successful, as it eschews the idea of promoting products around a single player. (Adidas and Nike Vie for Top Place on Podium; BUSINESS OF SPORT, 2008) Nike's marketing professionals admit that it may be very difficult to provide a response to Adidas marketing campaign, as Adidas has managed to involve two top stars, Rockets forward Tracy McGrady and Wizards guard Gilbert Arenas. Adidas centers its marketing campaign around the signature shoes for all Nba's six top players. It is different from the Nike's marketing strategy because Nike prefers to get involved into singular advertising campaigns with one player. For example, one of the most famous Nike's campaigns was built around the Cavaliers LeBron James.
This marketing campaign was considered one of the most successful among NBA in the advertising industry, while the marketing campaign that was designed and implemented by Converse (with participation of Heat guard Dwyane Wade), was not so successful due to Heat guard Dwyane Wades shoulder injury (Adidas and Nike Vie for Top Place on Podium; BUSINESS OF SPORT, 2008). Nike's marketing professionals acknowledge that there is a significant risk every time when marketing director decides to focus campaign and all resources on one player. From this point of view, Adidas strategy is wiser, as they do not promote their product through one athlete, thus reducing the risks of failure due to players injury to the lowest possible minimum. Sharing Marketing Experience as a Component of Nike's Global Marketing Strategy Nike Inc. recognizes the importance of being high in the list of giant corporations lending its marketing and branding acumen to its partners.
Other companies such as Apple, IBM and others are also known for their similar contributions to community partners, however, Nike remains the only one company operating in the sport-related industry known for donating its marketing and design expertise to showcase its experience and professionalism (Corporate Marketing Deals Often 'Win-Win', 2008). Although this might seem not very important component of Nike's global marketing plan, active participation in this type of activity adds Nike competitive advantage among its competitors in the industry. Discussion Nike Inc. operates in a highly competitive market. Therefore, the company places high emphasis on global marketing strategy, consistently monitoring all changes to gain competitive advantage in the market. The situation worsens due to current economy slowdown that affects the companys operations.
Yet, it should be noted that economic crisis has negative influence not only on Nike, but both on its competitors and on all other companies and industries. Due to economy slowdown, Nike's marketing, promotions and sales are affected. In addition, the company is in struggle with competitors, as the market for athletic equipment and sport apparel is maturing and becomes over saturated. The situation is aggravated by recession and economical and political instability. In addition, Nike is likely to have problems with its product range, as some Nike's product lines are considered to have lower quality if compared to Reebok or Adidas, thus negatively affecting Nike's brand image and sales growth. As it was already mentioned, Nike operates in a highly competitive environment.
The companys competitors, such as Adidas, New Balance, Reebok and others spend significant amounts on marketing and promotions, placing obstacles on the Nike's way to success. While in 1998 Nike's global market share was extremely impressive, with approximately 30 %, followed by Adidas 15. 5 % and Reebok's 11. 2 %, current situation is not so impressive. According to financial sources, such as Yahoo! Finance, wiki invest and others, Nike's revenue from selling athletic apparel and footwear in fiscal year 2008 made up approximately $ 18. 6 billion (Nike (NKE) - Financial Analysis and Business Overview, 2009). The companys global reach is still impressive, as about 64 % of all Nike's revenue comes from EMEA (Europe, the Middle East and Africa) and the United States. Due to economic recession, the company has decided to reshape its global marketing strategy placing higher emphasis on international markets and pursuing the strategy of growth and development in emerging world markets.
According to financial sources, starting from 2004 till present moment the company continues to invest approximately 11 - 13 percent of its revenue in marketing on an annual basis. In 2008 alone, Nike's spending on marketing campaigns reached approximately 12 percent of the companys revenue. Nike corporation continues to use traditional approaches to marketing, focusing mostly on print and television advertisement with participation of well-known athletes. The company actively involves start in golf, tennis, basketball and soccer into Nike's product promotions. For example, its marketing efforts in European Football Championship and the Beijing Olympics let to additional expenditures, as marketing and advertising budget was surpassed by 15 percent.
When compared to its competitors such as Adidas and Reebok, it becomes obvious that Nike is successful in competing in the sports apparel industry mainly due to the fact that the American giant corporation has managed to remain flexible enough to operate in an unpredictable global market. Nike's product differentiation also contributed to the companys success, as in addition to sports shoes, the companys product line offers a wide range of accessories, equipment and sports clothing, opening new perspectives for marketing. It should be also mentioned that Nike corporation has its own unique marketing tactics providing the company with competitive advantage in the industry. This marketing tactics, obviously, is the core component of Nike's global marketing plan, especially in the aspects related to brand power and consumer brand awareness.
Nike's specific and famous phrases, such as Just Do It, , or its famous logotype Swoosh are now directly associated with Nike and quality sports products. These well-known symbols of Nike empire became a part of the world culture, with its slogan and trademark serving as Nike's fingerprints. By using large-scale marketing campaign the company succeeds to reach customers all over the world. Also, with its advertisement and marketing campaigns with participation of worlds best sports start, the customers, who purchase Nike's products can directly associate themselves with well-known athletes. This tactics is very powerful and it is recommended itself as the one influencing customers decisions and motivating them to choose Nike's brands and become Nike's loyal customers. Conclusion Taking into consideration all information publicly available about Nike Corporation, it is difficult to be sure that Nike will keep leading the industry in shoes, sports apparel, and equipment in the future.
Due to economic slowdown and fierce competition Nike will obviously have to keep pace with the most up-to-date technologies and marketing methods to retain its leadership positions. In the consistently changing and lucrative world of top sports apparel manufacturers the company should undertake all efforts to remain the leader. However, the recent news that Nike's global marketing plan foresees the contract concerning the supply of the national football team in France with Nike kit for seven years from 2011 serves the evidence that Nike corporation has an ambitious intention to remain global shoes, sports apparel, and equipment manufacturer (How Top Sportswear Supplier Goes about Remaining Top Dog; BUSINESS OF SPORT. , 2008). In addition to this contract, during the next World Cup that is supposed to take place in South Africa, Nike Corporation will finally gain a victory over Adidas, its main competitor equipping French sportsmen since the 1970 s. According to media sources, the sportswear giant secured the contract after agreeing to pay the French Football Federation (FFF) EUR 320 million euros (pounds 242 million) over a seven-and-a half year contract term, the equivalent of pounds 32 million a year. In addition, Nike will provide the FFF with pounds 1. 9 million-worth of sporting equipment each season. (How Top Sportswear Supplier Goes about Remaining Top Dog; BUSINESS OF SPORT. , 2008) Although cycling and rugby are quite popular kinds of sports in France, football still is number one in the list; therefore, by signing this contract Nike Corporation has a great chance to achieve more visibility and to gain more recognition not only among French nation but also among other countries.
Nike is already sponsoring French rugby team, and this sponsorship is one of the most valuable points in Nike's global marketing strategy, yet, by sponsoring football Nike gets a chance to be seen on TV, as the World Cup Championship traditionally gains attention of the worlds greatest television audience. Also, if comparing Nike Corporation and its fiercest competitors such as Adidas, Reebok, New Balance and Under Armour, in relation to annual sales Nike is the worlds largest supplier of apparel, equipment and footwear. During the last few years the companys revenues reached 16 billion Euro, and its stock market was worth of over 30 billion Euro. As it was already mentioned, the company spends approximately 11 - 12 percent annually on marketing, and this massive expenditure has aided continuous development of its brand but the weekend's French deal, together with its agreement to buy Umbro, suggests it is focusing upon the European football market. (How Top Sportswear Supplier Goes about Remaining Top Dog; BUSINESS OF SPORT. , 2008) This assumption concerning Nike's decision to keep a closer look at European football market is justified by the fact that Umbro is the brand directly associated with football since the mid 1930 s. Yet, it should be mentioned that although the companys strategy that was designed to "Inspire and Excite the World of Football" and to become one of have top football brands in the world, Umbro seems to enter the endless chain of misfortunes.
Nike corporation wanted to purchase Umbro in October 2007, and when the acquisition will be finalized, Nike will have a unique opportunity to increase its popularity and to continue its way to success, keeping leading the industry in shoes, sports apparel, & equipment in the future. References Adidas and Nike Vie for Top Place on Podium; BUSINESS OF SPORT. (2008, August 23). The Birmingham Post, p. 27. Adidas Teams Up in Ad Campaign; Injured Arenas Part of Company's Savvy Marketing. (2008, February 5). The Washington Times, p. C 03.
Corporate Marketing Deals Often 'Win-Win'. (2008, March 9). The Register-Guard, p. F 47. Court, D. , Feeling, A. , Leiter, M. , & Parsons, A. (1997).
If Nike Can "Just Do It, " Why Can't We. The McKinsey Quarterly, 3, 24. Evans, W. (2008). Social Marketing Campaigns and Children's Media Use. The Future of Children, 18 (1), 181. How Top Sportswear Supplier Goes about Remaining Top Dog; BUSINESS OF SPORT. (2008, March 3).
The Birmingham Post, p. 22. Nike (NKE) - Financial Analysis and Business Overview. (2009, March 15). Retrieved March 16, 2009, from Wikinvest 2006, 2007, 2008, 2009: web (NKE) Nike Puts Its Footprint on Oregon Bach Festival. (2008, March 9). The Register-Guard, p. F 47.
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