Ch. 7 - Business Marketing

Nike's products are typically consumer products, as they are for personal use and consumption rather than used for a business. Nike makes shoes and clothes and other items that are all consumer products and are used for those purposes only. Technology is used in the form of Nike + and the Nike Fuel Band but it would inno way shape or benefit an overall company in anyway, as none of their products are considered business products by any means. Most of Nike's products are for specific athletic use and have differing uses, as they make products for many different sports. Nike also sells their products through many different retailers and companies such as Macy's, Sears, JCPenney, Modell's and other types of places. The good thing about that is that wherever these stores are the Nike brand is always seen and is always available to you, and it being sold in these stores always has it in the sight of customers. As for manufacturing, Nike has many contact factories throughout the world, and estimated more than 800 factories world wide that manufacture their products, and even have an interactive manufacturing map on their official website. Nike being one of the best companies in practicing e-commerce through B2B tactics takes huge advantage in the effectiveness of their marketing, as other companies related to them struggle more with B2B .

Ch. 8 - Segmenting and Targeting Markets

Nike Inc. started out as a small US company just dealing with athletes of America at their inception, but as they grew and expanded over time, they now target people everywhere. Nike's target market is now very simple, as the founders stated they are looking to "bring inspiration and innovation to every athlete in the world". With that being said, Nike's target market is all athletes all over the world. With that in mind, Nike targets these athletes with a Geographic Segmentation strategy. Nike is able to segment its market throughout the entire world. Nike has very strong market representation in the US, Japan and Europe and the Africas. Numbers to show for follow as at Nike Inc. EMEA HQ (Europe, Middle East and Africa), this HQ accounts for more than 1,000 employees, 68 different nationalities and covers 75 different countries in this region of the HQ. In Japan the HQ Nike Japan since its arrival in the country has been consistently supported and is considered Japan's leading global sports brand. Japan is very crucial and important to Nike's global plans, as it accounts for over 500 employees, and runs and operates 9 retail stores and 16 factory outlet stores across Japan. Most recently opening a flagship store in Harajuku, one of Japan's most fashion frenzied areas. Nike has more stores and contact factories in these parts of the world than in any other, as the other parts may only have a handful of these Nike outlets at most.

Chapter 11: Developing And Managing Products

Nike "Easter" Basketball shoes released for Easter 2013. (LeBron's, Kobe's and KD's)

Nike typically comes out with a new product(s) every year and release certain products every few months such as basketball sneakers. Nike like most successful companies do, plans ahead and plans well for products. Nike is very good at this, as they usually plan releases and completion of new products anywhere from 6-10 months in advance of the release date and make the consumer more anxious to buy the new thing by releasing info on it little by little. When Nike usually releases a product, they will already have the next one planned out at the same time they release this first product. Nike always has the next series or improved version of that product planned out as well. Innovation is constant at Nike and is an everyday ideal in the Nike Inc game plan. Nike is one company for example that usually practices simultaneous product development, specifically with their sneakers. Nike will usually release anywhere up to 3 different types of their basketball sneakers at the same time and anywhere from 5-7 different athletic/casual sneakers at one time, and even do this based on seasons, holidays, and even schedules of the professional/amateur sports involved, for example releasing numerous shoes inspired by the upcoming NBA playoffs. Nike also does holiday inspired products and releases them in time for the holidays, mostly Easter and Christmas seasons.

Nike "Elite" Basketball Series sneakers released in time for the NBA Playoffs of the 2012-2013 Season. (LeBrons, Kobe's and KD's)

One thing Nike does well in terms of product development and management is the use of Test Marketing its products. I personally was apart of a Nike test market when a father of a team mate of mine who worked for Nike as a sales rep at the time was chosen to test market 2 different types of baseball cleats and batting gloves that they had been deciding on on our team. We were each given a mix of the two pairs of cleats and batting gloves, got to use them for the better part of our season and at the end were asked to and offered our feedback and experience in testing them with him to give to the company for further study on which ones to release. It was a real good experience for us and a good way for a consumer to experience how Nike does its business and gathers valuable information on a product.

Ch. 18 -Social Media and Marketing

Nike's Instagram page

Nike Inc being a large brand on the market understands the importance of a lot of things that contribute to the companies success such as customer service, product concept and retailing, but not to be forgotten, Nike is a brand that fully understands the importance of using Social Media to market themselves. Nike brand has done a great job with creating an outlet in social media for themselves. Nike has teamed up with social media mega sites like Facebook, Twitter, Instagram and others to make themselves more well known and recognizable throughout the entire world. One thing Nike does is that they don't only have one single Nike page available to people on social media on each site, but they have multiple ones that represent a different aspect or sport in the Nike brand. Nike has the general Nike page and then gives the consumer an array of more specific and targeted pages on these Social Media sites such as Nike Football, Baseball, Basketball and Running pages, which helps them communicate specifically with the consumers and athletes of that given sport. You as the consumer are able to find out new information and up to date news on a specific product made by Nike for whichever sport you play or buy products for. Nike on these pages also offers information on upcoming events, product releases and even contests for customers. Through this, Nike allows their consumers to collect and gather specific information about their products, and also is able to allow the consumer to give feedback to them directly through communication on the page(s) Nike has to offer.

Ch. 10 - Product Concepts

LeBron James posing with his newly released "LeBron XI".

Nike Inc. has been apart of the athletic apparel market ever since its inception as Nike Inc. on May 30th, 1971, and has always been known for innovating and making better a product that exists. Bill Bowerman the co-founder of Nike started his run of product concepts back when he would pull apart the then modern running shoes of his day and try and see how he could make them lighter while at the same time not losing the durability and flexibility that a running shoe has to offer the athlete. Bowerman was always striving to make the current running shoe better in his day, and had that attitude to make better and innovate an existing product throughout his company. Innovation is a very important factor, probably the most important when it comes to Nike's product concept approach. Personalized collections lie in that field of their concepts as well, having athletes from various sports custom design products for Nike to sell to consumers.

Kobe Bryant discussing design concepts with Nike a design team member.

 Nike through its sale of sneakers is probably the biggest of products for them, as they draw the most attention and bring in the most revenue for the company. Nike preaching innovation is well applied as Nike is able to instill and put forth the best and latest fashionable, technological and design trends and patterns and directions that are "in" in today's world and today's consumer base. One thing Nike does well is having a series of numerous top athletes being represented by them, and having them design apparel and especially sneakers for them to sell. The Nike basketball shoes sold by them that are designed by and represent stars such as Kobe Bryant, LeBron James and Kevin Durant sell especially well. They have these super star athletes sit down with a designer and they then go ahead and design the sneaker and select the color ways and everything from the laces to the sole of the sneaker and put it out for the concumer. The fact that Nike has these athletes design these sneakers personally not only makes the sneaker more appealing to consumers, but gives it more reason to be purchased. 

The designs of these players are very unique as most of their designs have a story or a meaning behind them as well as a direction for the consumers, which most other athletes from other companies do not have or really apply. The personal ties and stories and the personalization done by them is huge for Nike's product concepts. Kevin Durant especially always has a personal tie and a back story and a direction for the consumer's feeling to why and how he designed a certain sneaker and gave it certain colors and features, and offers his personal story to it. As all these factors play in, Nike's shoes I would consider to be a shopping product, as consumers are constantly looking up info on them and are willing to spend more on them, as these products are more expensive than others and are not found in all stores or are hard to find or only have limited availability. Nike is always updating and modifying and improving their products on a regular basis, and releasing new sneakers as often as possible. For example,every winter Nike will release a newly designed line of sneakers for the winter season, and does the same for the summer season as well. They are constantly making new and improved designs available for a consumer. As well as the actual design of the shoe Nike keeps intact the idea of using environmentally safe and beneficiary materials when making sneakers, as most of the materials they use in the designing are from recycled sneakers.  

Ch.17- Personal Selling and Sales Management

As most of the top companies in a market would act, Nike Inc. does all it can possibly to maximize and expand its sales in their market and through their numerous retailers. Through Personal Selling, Nike is able to go the less expensive route (in comparison to advertisement) and the more direct and convincing route when dealing with customers and trying to sell their brand products to consumers. Nike generally makes most of its money from selling its products to many retailers to go and sell in their stores, such as Foot Locker, Modell's, Champs, Finish Line and other large athletic sneaker and apparel stores. These retailers are all usually very well knowledgeable in Nike products and really help sell the product to a customer based on their employees' impressive knowledge of the products rather than just the actual consumers loyalty to the Nike brand. Besides the in person, in store impact, the websites of Nike and their retailers offer a very well presented and put together place for the consumer to research and look at what they may want to purchase before actually entering a store in person and being taught about the product. This is very important in today's world since most people go online and shop around and look at different retailers and websites for information on a specific product rather than go to numerous stores in person to conduct research. Online options offer these customers more of a variety and size of stock to look at and consider purchasing. Nike's brand and its "Swoosh" logo is the way how  Personal Sales emphasizes to the customer of Nike products. Nike does this through its own website as mentioned above, but most importantly through its employees in their stores and the other employees at various retailers of theirs. Whether in the Nike store or in a Nike retailers, these employees are always available and are always able to offer the best and quickest information of a product. There is always someone available to personally and correctly inform you as a customer of the product you are interested in, whether it be an actual sales representative in the stores/retailers, an online chat operator or a telephone operator. Nike being able to offer all of these different types of personal sales tactics, not only saves money for them, but also helps sell more products of theirs and makes the consumer feel good about their purchase, as a consumer is usually more willing to buy a product if they are well informed of the product by a representative or expert before they go to purchase it.

Ch. 16 - Advertising, Public Relations and Sales Promotion

Nike billboard in Times Square featuring Kobe Bryant

Nike Inc. being the powerhouse and the number one brand in its market which it controls a majority of, obviously spends a lot of money, time and resources on advertisements and the different channels of advertisement they use. As of this July, Nike has been projected to have spent about $2.8 million on marketing. In a further mathematical breakdown of the numbers spent, Nike spends about $8 million a day, $300,000 per hour, $100 a second in advertising. Nike goes far beyond your traditional type of advertising as it not only spends a large amount of money on it, but it uses many types of advertising such as billboard and print advertising, social media and television commercials. Nike posts billboards all over cities such as in train stations, on buildings and buses and even on park benches in towns across the country. On social media, Nike has its Twitter, Facebook and Instagram profiles available for consumers to follow and be a part of on that form of social media, and even has its own separate accounts for several of the categories of Nike brand products such as Nike Basketball, Nike Football and Nike Baseball. These pages that they have made available on social media are used to constantly inform consumers of new products, release dates and any information on current or upcoming Nike products. The fact that in today's world, most people get information from the internet through social media is considered key as to how Nike has continued to take advantage of that situation. But it is mainly in television ads and commercials is where Nike does its best work. As many people in today's world watch television, it is almost guaranteed that a person can't go sit through a single program on television without seeing a Nike advertisement on their screens. Nike generates its consumer interest through commercials and the people that are used in them. Nike is very good at using their top superstar athletes and celebrities in their ads and commercials such as NBA players and Pro Golfers to further show how the Super Star athlete model that they run by is very successful and continues to draw the interest of the consumers

As the Super Star athlete technique comes into play, Nike has been able to utilize its Super Star athletes into their advertising schemes no matter what type of scrutiny that athlete may be under in the eyes of the public.That alone is rather impressive in Nike's continued ventures in advertising with Super Star athletes. For example, Tiger Woods' affair scandal that lit up the media a few years back saw the threat of Nike possibly considering dumping Woods based on his conduct being detrimental and inappropriate to the consumer world, much like when they dumped football star Michael Vick following his arrest. Nike however decided to hold onto and stick by Tiger Woods and today he continues to be a successful super star athlete advertising model for the company. Following the speculation of his affair and during the inception of Tiger Woods' return to golf after his brief hiatus, Nike released a much controversial commercial featuring Woods listening to his deceased father's voice questioning him about his return and his hiatus in the commercial.

As the use of the Super Star athlete continues to play as an advantage in their advertising schemes, Nike continues to find new ways to make great commercials that lead to successful consumer reactions. The most recent commercial came from the hands of the Nike Basketball group. Nike in the past has done very well with the basketball marketing and advertising schemes they implement in their commercials, print and billboard ads, and the most recent one featuring LeBron James is another big hit for the advertising department at Nike Inc. They were able to shoot this commercial of LeBron and fans biking, swimming and running freely through the city of Miami, and in the background were able to sample a new song by artist John Legend that hasn't even been released to the public yet, as it has only been made available through the bits and pieces that play in the background of this single commercial. Nike yet again has successfully made a much criticized, hated and controversial super star athlete look like a very likable and adored figure in the city he or she represents. Nike not only preaches innovation in its product development but implements it and preaches it in its advertising schemes, leading to successful advertisements with great consumer reaction.

Ch. 14 - Marketing Channels and Retailing

Nike Inc. products mostly deal with a selective distribution system of retailing. By choosing this system of retailing, Nike is screening dealers and retailers of their products and is eliminating all but a few in any single. They in lesser terms are making their products available to the few consumers in a given target market.Nike Inc. makes a majority of its money selling its products to retailers for them to sell in stores and online. Given this, it is highly unlikely that you are able to find Nike brand products in every retail location, but it is more likely that you as the consumer are able to find it in selected stores, websites and locations. To start, a consumer would probably go directly to a Nike store or the Nike website to purchase a Nike brand product, being that it is the store that is operated by Nike itself. Besides the Nike Inc. controlled outlets of retail, you are more likely to be able to find Nike brand products in stores such as Modell's, Foot Locker, Champs and other small and big sporting good stores/websites that sell athletic wear and shoes, but you are also able to find Nike brand products in department stores as well like Macy's, Sears and JCPenney, who carry a limited amount of Nike brand shoes and apparel. To add to that availability of these Nike products, all of the Nike products are sold at fixed prices, so as a consumer you will be paying the same price for the product as you would in any of the other retail outlets listed above.

Niketown NYC's interior design for the World Basketball Festival

Like any other athletic apparel and shoe producer, Nike's products sell mainly because of the vast innovation and use of form utility on the product, but also get a helping hand with the way the products are displayed in the retail stores too. As far as the form utility of the actual product, Nike's sneakers being environmentally designed and having numerous colorways and designs available makes it desirable and would make a customer want to purchase it. Its products appearance make their products very desirable to buy. Nike's "iD" process available online plays into form utility as well as it allows these customers to design their own shoes with the colors and factors they want as I stated in my previous blog post. Before Nike had launched, all running shoes were almost the same in weight and color and design, but once Nike came out with an innovated and improved running shoe, the rest was history, as Nike's shoes offer unique colorways, lighter body and quicker feel, and technologically advanced aspects to the sneaker, but also produce the sneakers with environmentally sound processes which is a huge plus. Nike being able to produce the best possible shoes with the best possible materials while keeping the environment unharmed is one of the biggest factors in their form utility. Nike knew what it wanted to do with its products and had ideas such as lighter and environmentally sound and just production processes, and put it all in place to create the Nike shoes they are known well for. The in store environment and design plays another huge role as when you enter stores that sell Nike products, the display they have of the products is top notch and really appeals to customers. In Niketown NYC, the store is broken into different rooms for different sports, and the walls and everything around it are designed with photos and art that help aide the atmosphere presented in that given part of the store. The use of manikins and other related display tools Nike stores are able to present a very distinct and well presented image of Nike clothing and shoes. Niketown NYC and my experience with shopping in there have always done a good job with the interior design of the store in terms of the form utility. Not only with that, but the Nike store retailers know their stuff well. Whenever I am shopping for a Nike product in these retailers, they are very much educated in the products and offer the customer top notch opinionated and informative stuff on a product or aspect of the Nike product I am looking to buy. I would characterize most of these retailers of Nike products as go getters, as they are always very attentive in stores and very knowledgeable and frenziedly to customers shopping Nike products, and truly resemble the Nike Inc. name proudly and to the highest standard of performance just as their apparel and sneakers are held to.

Ch. 6- Consumer Decision Making

A lot of factors weigh in as to why a consumer would want to buy a Nike product. As Nike co-founder Bill Bowerman once said, "If you have a body, you are an athlete." Bowerman here made a very big statement in targeting athletes everywhere to sell his products to, and made the Nike product more appealing to a greater consumer base by just that statement. Nike Inc is the most successful and top selling athletic brand in the entire world, and truthfully and clearly stands above the rest of its stiff competition in the athletic apparel and footwear market in the world. Like any other product, consumers of Nike products are faced with the same elements such as cultural, societal and individual needs and factors, but despite that are heavily effected on external information and stimuli such as the ever changing innovations of Nike products and Market controlled and non market controlled information sources. Nike Inc mission stresses heavily the idea and motive of innovation to its consumers, as Nike itself started with Bill Bowerman ripping apart running shoes of his era and finding ways to make them lighter and quicker. Innovation is the sole engine behind Nike's vastly successful approach, and is the largest reason as to how consumers stay attracted and interested in their priduct, as innovation in Nike is always occuring, and makes its brand unique among the rest.

Nike + graphic

Nike innovates its products by using technology and personalization as key factors in effecting the consumers behavior when they are contemplating and deciding whether or not to purchase their products. Nike uses the Nike + technology in their sneakers, which is able to track vital information and play music for you throughout your workout. It is started with an electronic chip, almost SIM card like technology that is made by Apple that you insert into the slot provided in the insole of the sneaker that syncs with your iPod and is able to track your miles traveled and your distance, and even has a voice over command such as a Nav systems in most cars do. Originally Nike was only using this Nike + technology with running sneakers but it has now expanded into their basketball sneakers, such as the Kobe 8 System Elite + basketball sneakers which I as a consumer of Nike happen to own.

Along with the technology, the personalization of sneakers that Nike makes available to consumers is a huge plus to their decision making, as Nike allows you to take the shoe you want, and put in any colorway you want and design the show from top to bottom. This allows you as the consumer the freedom to be the designer of your own signature shoe, and even have them displayed for sale on the Nike website. Nike calls this the Nike iD process, where you as the consumer are able to design the shoe top to bottom from the lace color to the bottom soles and small details like paint drop design in the mid soles, with the colors of your choice for a reasonable $180 per pair. You the consumer are in control of the very critical design process of the given sneaker. Nike makes this available with almost every new basketball shoe that it releases, currently you are able to "iD" the new Kevin Durant sneakers along with the new LeBron James sneakers too.

Nike iD layout

Nike is able to advertise its products through many channels. For the market controlled sources, Nike is able to promote and advertise through elements such as numerous television commercials, print ads, billboards, and social media sites. In the sneaker market especially, the non-market controlled information sources seem to hold the most important in the ability for not only Nike but any sneaker brand to sell to and effect its consumers decisions successfully. Today we have factors such as YouTube, various blogs and review websites and sneaker news sites that help make a sneaker appealing to a consumer and effect their decision to purchase. You have thousands of YouTube accounts dedicated to purchasing and reviewing every single aspect of  Nike and other sneakers on the market where they are posting the reviews for very large audiences to see. The sneaker news and review websites such as Sneaker Files, Sneaker News and Kicks on Fire are very important, as they offer again a vary of different sneaker brands and the information and early photos of these soon to be released and existing shoes for consumers to see and look at before buying. The information from other consumers of sneakers like themselves help convince a consumer to purchase a sneaker, I myself as a consumer went out and saw and read reviews and blogs from these various sources on the Nike Kobe 8 sneakers I purchased before buying them to see how others who had purchased them thought they performed and such. As a consumer of Nike shoes, my expierience with the non-market controlled info sources really made an impact on my purchasing the Nike shoes I had looked at and read up on through the help of these various sources. I feel as if these factors of the blogs and YouTube and websites really help push and drive the purchase decision of the consumer. Above I have  provided the video review that I watched on YouTube to help make the decision for me to purchase the Nike shoes I did.

Ch. 5 - Developing a Global Vision Nike Inc.

Globally, the signature Nike "swoosh" is known by all people in all countries, and once seen, these people are quick to know and realize who's logo this is that they are seeing. The Nike "swoosh" logo alone is a huge reason and motive as to how Nike Inc. is able to further develop themselves further globally. Nike Inc. began its global development strongly in part through global events such as the Olympics and the World Cup. Nike has done this by designing the uniforms for World Cup contenders such as Brazil , and even were able to sign some Brazilian soccer players to apparel deals with the company. Nike was able to reveal the Nike Shox brand to the world in Sydney, Australia in 2000, the same year in which that summer's Olympics was to be hosted in Sydney. Nike's biggest, most truly integrated global development came in the form of a "Secret Tournament" in 2002. This correlated again with the World Cup, and through this  "Secret Tournament" Nike was able to give consumers what was called, a multi-faced experience in support of that years World Cup. Nike in the past has had successful global developments and they continue to do so today, by placing factories and stores, and promoting in different countries all over the world.

Nike Store in Harajuku

Nike Inc. has factories, headquarters and stores located in many countries all over Europe, Asia, and Africa, including: France, Italy, Germany and South Africa. In Nike Inc. EMEA HQ (Europe, Middle East and Africa), this HQ accounts for more than 1,000 employees, 68 different nationalities and covers 75 different countries in this region of the HQ, located just 16 miles away from Amsterdam in the town of Hilversum. In Japan, one of Nike Inc. more powerful and successful global brand countries, The HQ Nike Japan, was founded in 1981 in Tokyo, and since its arrival in the country has been consistently supported and is considered Japan's leading global sports brand. Japan is very crucial and important to Nike's global plans, as it accounts for over 500 employees, and runs and operates 9 retail stores and 16 factory outlet stores across Japan. Most recently opening a flagship store in Harajuku, one of Japan's most fashion frenzied areas. It even earned the award for the METI (Ministry for Economy, Trade, and Industry) award at the Ministry's 53rd annual Japan Magazine Advertisement Awards.

Kobe Bryant greeting fans in China

While Nike has great success in their current Japanese and European and Middle Eastern markets, Nike is still working on today their approach to globally expand themselves successfully in the region of China. Although Nike is still considered China's leading brand of sportswear, Nike is facing very stiff competition from Chinese companies Li-Ning and Anta which I had mentioned in my previous post. But I now have learned that Nike is losing younger Chinese athletes to its main competitor, Adidas through their NEO brand products which have targeted these young Chinese athletes that are seeking to spend less money on these goods. As recent as September of 2013, Nike reported very good numbers in sales but only was it in China where the sales dropped, despite Nike selling $574 million worth of its goods in China. In order to make themselves more globally known and desired in China, Nike through its Nike Basketball apparel and shoe lines, have sent basketball superstar Kobe Bryant out on tour of China, and even have sent over Kevin Durant and LeBron James as well to help capture and spread the Nike brand in the country. The main man for this to work though is Kobe Bryant, who over the years has been more than admired and adored by his Chinese fans and had even considered playing in China during the NBA lockout of 2011. Kobe Bryant's name and presence in the Chinese community given his popularity there is very crucial to the companies success in China, given that he is the most recent Nike superstar to go on tour of China on their behalf. Kobe Bryant and Nike have teamed together in China and have released signature Kobe "China" inspired sneakers, and this past summer held workouts and coached young Chinese basketball players during his visit, and even had a commercial recently released of him coaching these Chinese athletes, which is displayed below.

Overall, Nike and its global branches are very unique in the fact that all the products sold in the USA are the same ones of same value in that country of choice, and that Nike is successfully able to keep in line their code of ethics and devotion to preserving and protecting the environment when developing the best product possible in all of these countries. Nike truly expresses its dominance worldwide in the success they have to show in numbers and sales and growth in these countries, while more importantly being able to play by the rules of the game and getting things done their way. It goes to show how much a brand like Nike is respected and treated across the world when things like that continue to progress in foreign markets and business structures within their company.

Ch. 4 - The Marketing Environment Nike Inc.

Over the years, Nike Inc. has been known to serve all athletes all over the world, and provide them with the best possible footwear, apparel and other accessories they would be interested in. Nike Inc. naturally targets all athletes, men and women, boys and girls, of all ages, while continuing to successfully be able to offer a multiple amount of products that this athlete would need in their respective field of play. Nike Inc. still successfully applies several of it's marketing strategies while doing this. Their relevancy to both male and female athletes around the world stretches far beyond what most realize, as Nike Inc. successfully is able to obtain and sponsor female athletes along with the male ones they have, including members of the LPGA tour and the USA women's soccer team. CEO Mark Parker said yesterday at their investor conference that the Nike Inc. women's business is now worth $4 billion, and is being projected to be worth $7 billion by 2017. At the same time while being able to successfully use their athletes as a way to apply their strategy in their market environment, Nike Inc. is still able to keep their morals and ethics in place but keep the emphasis on sustainability and keeping themselves environmentally and socially sound. Nike Inc. is able to offer a broad array of products suitable for an athletes lifestyle. Nike Inc. has successfully been able to maintain its powerhouse status in an ever changing market, and adjusting themselves and finding ways to avoid problems and keep themselves the steady and dominant company they have been in the market since its inception by continually catering to and creating and innovating products for the needs of athletes everywhere. Nike by continually finding better ways to improve existing products and making them better, keeps their current markets in tact, and keeps them buying their product.

Nike Inc. World HQ, Based in Beaverton,OR

Nike Inc. is a well known powerhouse in most of the world, but Nike continues to successfully help stimulate innovation and growth in existing markets and audiences such as the ones in North America, Western Europe and Japan. According to current market projections from Nike Inc, Nike Inc. projected their brand to reach over $14 billion in the USA and $6 billion in Western Europe by 2017, as announced at their Investors Conference yesterday, their first in 2 years. As Nike Inc. strives to build on this market in place strength of growth for them, Nike continues to further encourage innovation and growth and expansion of the Nike Brand in newer markets such as China and other parts of Europe.

Statue of Kobe Bryant in Guangzhou, China

Part of this innovation in their new markets was having Basketball superstar Kobe Bryant tour China during the summer to promote Nike Basketball, who faces stiff competition in China from the Li-Ning Company, who have recently launched a new Basketball shoe campaign being headlined by a former Nike Inc. athlete, American basketball superstar Dwyane Wade, and also face competition from the Chinese company Anta, who have just recently announced a new shoe release based on the signature design of American Basketball star Rajon Rondo and had signed superstar Basketball player Kevin Garnett to a 5 year shoe deal this past April. Nike Inc. while continuing to reach abroad to create growth and innovation throughout China have projected for themselves a geographical growth of up to their average double digit rate in China by the year of 2017.

As successful as Nike Inc. is, it did face struggles, like most major powerful companies did during the Recession. According to my research, Nike Inc. stock dropped 40% during the Recession, going from a high of $35.30 to a low of $21.34. While taking a drop like that was very much a hard thing to go through, Nike's stock surprisingly went from "negative to euphoric" as from 2010 on, Nike's stock went up from a high of $46.24(2010) to a high of $60.25(2013). Given the recent rise in success for Nike on the stock market, its no surprise that Nike Inc. is still the leader in the market.

CEO Mark Parker at Nike Inc. Investor's Conference 10/9/13

Yesterday as I had stated previously, Nike had its first Investor's Conference in nearly two years, and discussed their projections for the fiscal years of 2015 and 2017, and presented the media and their investors with very impressive and promising projections and numbers. The projections and numbers that were presented only backup the fact that Nike remains the main powerhouse in the market. Nike projected that the direct to consumer growth would reach $5 billion by 2015 and eclipse over $8 million in 2017, while expecting to deliver $10 billion in incremental revenue by 2017 through women, apparel and e-commerce sales, which alone account for $2 billion in growth alone. Also, they announced that they were expected to have a revenue of $30 billion by 2015, and have a revenue of $36 million by 2017. What makes that projection interesting to me is that in 1983, Nike's revenue was $199 million, and given the projections presented yesterday, Nike Inc. has had an annual growth rate over 35 years of 13.2%, and have seen themselves have 15 consecutive quarters of double digit growth in Running. At the same time, Converse, one of Nike's subsidiaries is projected to be worth $3 billion by 2017. When Nike originally purchased Converse, they paid $300 million for it in 2003, showing how much its grown these past 10 years. A key thing here with these projections is that Nike Inc. long term model of high single digit growth is still in tact and is still very effective. Given this,over the last 3 years, Nike Inc. has grown up to 40% and has seen its website revenue jump up 35%. They've also seen individual businesses, such as the Elite socks grow well, as it is today a reported $100 million business, while their Youth athlete business is worth $3 billion. Nike Inc. truly has mastered and maintained their successful and powerful status on top of their market and their market environment.

Source: nikeinc.com

Ch. 3 - Ethics & Social Responsibility

At Nike Inc. the code of ethics is unique and innovative, just as many of Nike's products are.  The words of co-founder Phil Knight in regards to Nike Inc. idea of ethics is that: "We play hard, we play to win, and we play by the rules of the game." Knight states that no matter how challenging and dynamic Nike may become, their actions and decisions will fit with their shared values among the company. Their code takes very seriously the actions they take and how their employees act in certain situations. Nike states that all employees must resemble the standard set in place for them, which are loyalty, trustworthiness, honesty, fairness an responsibility, and are responsible to present and make the workplace one of non harassment, and respect the diversity that Nike Inc. makes. Nike on its website states a full code of ethics labeled "Inside the Lines" that thoroughly goes through the expectations of Nike Inc. and morals involved in their belief in ethics within the company. "Inside the Lines" has many key points, another in relation to employees at the workplace, protecting their rights as workers and stressing the idea of non harassment, and providing safe and healthy workplaces for their employees. A unique factor to Nike Inc. code of ethics is that they fully expect that the outside business partners and other persons doing business with Nike Inc., are to follow and observe the same standards of ethics that a Nike employee would when doing business for Nike. As I have stated before, Nike is big on its belief in protecting and conserving the environment around it when doing business. Nike states in the code that they are: "committed to minimizing the impact of our business on the environment with methods that are socially responsible, scientifically based and economically sound." Nike as well through this code provides Alertlines to all Nike Inc workplaces around the country and also outside of the US, including:  France, Italy, Germany and South Africa. Nike Inc. by doing this successfully enables their overseas branches to successfully spread and practice and the code of ethics outlined in "Inside the Lines".

Niketown NYC

As a consumer of Nike Inc products myself, whether its clothing, performance wear and mainly sneakers,  I have had nothing but positive experiences and was taken care of and handled well in the stores by a team representative or salesman at Niketown NYC and other retailers. The unique thing to me is that it was not only at Niketown NYC where I had very positive experiences when purchasing a Nike product. As Nike makes a lot of its money off of selling to retailers, I remember how like the product, these retailers handled me with the same regard that Nike Inc. states is appropriate in terms of their code of ethics.To be specific I was at Footlocker. While here, I was not only well informed of the benefits of my Nike product, but was also introduced to new ones I didn't know much about, and was offered Nike brand products along with the sneakers I was purchasing, when in the store they carried many non-Nike brand products that were either of same value and performance or better. I found it very much a great point of interest in my experience purchasing this product because I as the consumer was seeing a retailer who was selling me a Nike product, pushing and encouraging me to purchase the Nike brand product they were presenting me with while they had numerous amounts of the same product  in similar colors and styles manufactured by other companies in store. It shows a prime example of how Nike had successfully maintained their code of ethics beliefs with persons doing business for Nike outside of the company.

Nike Employee Store in Beaverton,OR

Nike Inc. further promotes and encourages growth and opportunity to employees in stores by allowing them to personally inform us on new products ready to launch, sell to us and ultimately compensate personally from dealing with consumers on a first hand basis. Through extensive training, Nike teaches its employees to not only engage a costumer the minute they walk in the store or up to a Nike brand product, but also to answer questions that customers may have about a product or service of Nike, by allowing this, the encourages and motivates a Nike employee in this setting to perform as a Nike employee to their highest ability, within the code of conduct and ethics presented to and instilled in them from their inception as an employee with Nike. Nike even has an exclusive Nike Employee Store in Beaverton, OR, where the store is only available to Nike Inc. employees and their families, where they are offered the same Nike products online and in stores with a 50% discount. Overall, Nike Inc. encouraging and motivating employees through extensive training, continued motivation and allowing the freedom to inform and deal with customers in a personal matter, help spread and keep in line the basis for an employee to act in according to the code established by the company.

Ch. 2: Strategic Planning for Competitive Advantage Nike Inc.

Phil Knight

Nike co-founder Phil Knight was once famously quoted as saying, "Business is war without bullets.", and with that statement, Nike Inc. runs its business on the idea that they are, "Dedicated to inspire every athlete to reach peak performance." And of course to continue to spread their mission: "To bring inspiration and innovation to every athlete in the world." With that being said, Nike Inc. core beliefs and practices are to strive for :

- Innovation to serve the athlete.
- Innovation to grow the company.
- Innovation to inspire the world.

SWOT Analysis:

Strengths:  Nike Inc. has many strengths as a business, one in particular is that they are a global brand, having over 750 retail stores in the world, and having contact factories all throughout the world including the US, Europe, Asia and Africa. Nike has the strength of attracting and sponsoring the top athletes in the world, and having the ability to use those athletes as spokespersons in ads for their new sneakers and related apparel. Possibly one of the biggest factors of strength in the Nike Inc. arsenal is the signature "swoosh" logo. The logo is recognized worldwide and easily stands above the rest since it's inception in 1971. Most importantly, Nike Inc. heavy belief in "innovation" has to be the most unique strength they have out of all. Nike Inc. idea of "innovation" and "innovating" runs through more than just to the customer through their products, as Nike Inc. is known to instigate innovation within the corporation, to the employees, to the contact factories and to the retailers they sell their product to. Innovation is very much the base for success in the Nike Inc. The wholly owned subsidiaries that Nike Inc. includes is a huge strength  for sales, as Cole Haan, Hurley International, Umbro, Nike Golf and Jordan Brand all account for and contributed to $2.7 billion out of the $20.9 billion revenue.

Weaknesses:  While Nike Inc. has many strengths, there as weaknesses as well, including the counterfeit sale of fake Nike sneakers on websites from overseas, which only damages the quality and opinion of Nike Inc. sneaker product based on customers and their satisfaction, and can effect the company's sales. Nike Inc. while they do have a retail store in Nike Town, still rely heavily on and make most of their income of their products off of retailers.

Opportunity: Nike Inc. continually reaches abroad in their pursuit to interest the markets outside the USA. Nike Inc. has contact factories in countries such as Asia, Africa and Europe. Nike Inc through its many athletes they sponsor have overseas ties and relations in the media, an example being Kobe Bryant's tour of China this past Summer. As far as the actual products, although Nike Inc. strongly considers it self an athletic apparel manufacturer their products aren't only bought by athletes, and is somewhat becoming a fashion thing. Nike Inc. not only makes their athletic shoes but also creates casual and skateboard shoes and apparel. With that in mind, Nike Inc. will be able to capitalize off of the non athletes that purchase their apparel and shoes.

Threats:  Besides the sales of fake and counterfeit sneakers, the market for athletic sneakers and shoes being extremely tight and competitive is a threat. Since Adidas had purchased Reebok and made is a subsidiary to its company in 2005, it has been Nike Inc. main competitor in the shoe and apparel market.

Competitive Advantage :
Nike Inc. has a competitive advantage suited not only for the consumer but also for the environment and people and culture around it all. Nike Inc. has been known and continues to make known their efforts to produce products only in a manner using goods and supplies and fabrics that further prevent harm on the environment as a whole. Nike Inc. for example has a concept called Nike MSI, which primarily was designed to help create products with lower harm to the environment, and also have other programs such as being considerate of the environmental and social impacts around them, and doing works through Nike Better World on Nikebetterworld.com, whose main goal is to serve the athlete and serve the environment at the same time. Nike Inc. overall is able to improve the environment while still using products that will maintain the absolute highest standard of performance. Another advantage is Nike Inc. appreciation for the people and culture around them. Nike Inc. both within and outside the incorporation, producers and consumers alike, Nike Inc. considers the people their most powerful source of innovation and change. Nike Inc. ownership of the NFL's uniform licensing rights only becomes even more of a strength, as the NFL is the most marketable professional sports league in America. Finally a huge advantage Nike Inc. has, is the top athletes they sponsor and have advertise their products that they use. Specifically in Basketball shoes and apparel, Nike is king in that market, having worldwide and renown basketball stars such as Kobe Bryant, Kevin Durant and LeBron James on their team, to not only advertise within the US but outside the US as well. Being worldwide superstars, Bryant, Durant and James only help maximize Nike Inc. horizon worldwide even more, through both their advertisements and sneaker and apparel deals with the incorporation, and having their products being widely coveted and purchased by consumers.

 (Bryant #24 , James #6, Durant #35)

Strategic Directions: While Nike Inc. continues to produce new products for the same market and consumer base, its current plans are to have a completely new and improved clothing, apparel and sneaker line of products by as early as projected in 2015. Nike Inc. prides itself on the terms "Make today better" and "Strive for the Future". While these new and current productions go on, Nike Inc. still keeps intact its ability to properly serve the athlete and the environment at the same time. For example, recently Nike Inc. started an Amazon Leather Policy, where the corporation does not use leather from cattle in the Amazon because of the cattling leading to Tropical Deforestation in the region. Another thing is the use of recycled bottles and plastic to create products, most recently notable were the 2010 World Cup Jerseys made from recycled plastic.

The 4 P's

Nike Elite "Superhero" Collection

Product: While Nike Inc. offers a wide number of unique and inspired sneaker designs, color ways, collections and sport packs, they have set names of sneakers and colors making them more of an individually designed sneaker, and even work technology into their shoes. Nike + being a key component to technology being placed into a shoe. Specifically Nike +, which is a component that records and tracks miles ran or walked in a setting. Nike Basketball is the most successful and coveted of all sneaker products, with Nike Running behind it. Nike Inc. also has 6 wholly owned subsidiaries specifically : Cole Haan, Converse, and Jordan Brand which also produce athletic/casual shoes and apparel.

Place : Though Nike Inc. does distribute to retailers, they do have all of these contact factories in the US and around the world and even

Price : Nike Inc. prices vary, but accordingly follow the code of the best product being available for purchase for the lowest and best price possible.

Kobe Bryant at Bishop Loughlin

Promotion : Nike Inc. is known worldwide through Social Media (Facebook, Twitter), but also from television ads and billboards, as well as public and private special in person events and world tours. Examples of the in person promotions are specifically the recent tour of Kobe Bryant through China over the summer, and one of personal experience. It was when Kobe Bryant and Nike Basketball came to my job to sponsor the schools basketball team, giving them sneakers and socks and having a Q&A and meeting and photo op with the kids from the two teams being sponsored. The term "Just Do It" is widely known as often used by Nike as one of their main slogans, and can be seen all over or in any Nike ad or commercial.

Ch. 1 - Overview of Marketing (Brief History and Mission Statement) Nike Inc.

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, who experimented with different track surfaces, re-hydration drinks and – most importantly – innovations in running shoes. But the established footwear manufacturers of the 1950s ignored the ideas he tried to offer them, so Bowerman began cobbling shoes for his runners.

Phil Knight was a talented middle-distance runner from Portland, who enrolled at Oregon in the fall of 1955 and competed for Bowerman’s track program. Upon graduating from Oregon, Knight earned his MBA in finance from Stanford University, where he wrote a paper that proposed quality running shoes could be manufactured in Japan that would compete with more established German brands. But his letters to manufacturers in Japan and Asia went unanswered, so Knight took a chance. 

He made a cold-call on the Onitsuka Co. in Kobe, Japan, and persuaded the manufacturer of Tiger shoes to make Knight a distributor of Tiger running shoes in the United States. When the first set of sample shoes arrived, Knight sent several pairs to Bowerman, hoping to make a sale. Instead, Bowerman stunned Knight by offering to become his partner, and to provide his footwear design ideas to Tiger.

They shook hands to form Blue Ribbon Sports, pledged $500 each and placed their first order of 300 pairs of shoes in January 1964. Knight sold the shoes out of the trunk of his green Plymouth Valiant. In essence, the foundation for what would become Nike had been established.

But Bowerman and Knight each had full-time jobs - Bowerman at Oregon and Knight at a Portland accounting firm - so they needed someone to manage the growing requirements of Blue Ribbon Sports. Enter Jeff Johnson, whom Knight had met at Stanford. A runner himself, Johnson became the first full-time employee of Blue Ribbon Sports in 1965, and quickly became an invaluable utility man for the start-up company.

Johnson created the first product brochures, print ads and marketing materials, and even shot the photographs for the company’s catalogues. He also designed several early Nike shoes, and even conjured up the name Nike in 1971. Around this same time, the relationship between BRS and Onitsuka was falling apart. Knight and Bowerman were ready to make the jump from being a footwear distributor to designing and manufacturing their own brand of athletic shoes, and went and selected a brand mark today known internationally as the “Swoosh,” which was created by a graphic design student at Portland State University named Carolyn Davidson. The new Nike line of footwear debuted in 1972, and the rest is history from there....... 

Overall, Nike is an innovative, top flight incorporation that caters to any type of athlete, and any type of person. Not only does it cater to athletes everywhere but also to an everyday person. They represent and make products for professional sports leagues, most notably the NBA and ownership of the Licensing Rights to the NFL for the next 10 years.

As President and CEO Mark Parker once  said: “At NIKE, Inc. we run a complete offense, and it’s based on a core commitment to innovation. That’s how we stay opportunistic, serve the athlete, reward our shareholders, and continue to lead our industry.” Nike as a power in the merchandise in sports market have a simply put, concise mission statement that reads : "Our Mission: To bring inspiration and innovation to every athlete* in the world."  The asterisk meaning, as said by founder Bill Bowerman: "If you have a body, you are an athlete."