Chapter 7. Business Marketing

Nike.com is a major asset to Nike's portion of sales when it comes to everything Nike and the things you are interested in. Nike.com has got you covered from the everyday walking or running shoe right down to the on field cleats. Nike Inc. holds the advantage against its competitors with weekly and monthly release which gather in a rather large amount of demand or hype. Nike has its own twitter handler which goes by @Nikestore on twitter. This aside of Nike's other several twitter such as separate twitter handler for its several location such as @NikeNYC, @21Mercer. Nike has a very reputable amount of followers and even though this is a new feature Nike Inc. knows how to approach and penetrate the young market via the internet. Nike already understands the prestige exclusivity that their products carry now, taking this into a matter of applying the penetration to the internet market Nike releases popular sneakers via twitter link only. 

Nike has been very successful over time as a very well developed and managed brand. Nike saves money due to the fact that Nike Inc. do not make their own shoes instead Nike hires factories in other countries to make their products there for Nike saving by having the products made elsewhere and having to pay less, Nike also benefits from this because now Nike uses a strategic alliance with retailers such as Finishline, Footlocker and even Macy's by supplying them with Nike products to be sold to the consumers. Therefore Nike reaching the public from many different retail chains. Nike also ensures trust of their consumers with the use of warranties on all their products. Nike gives a certain amount of time to return products, although if the product is in new condition, Nike allows you to return the products at any time also Nike allows you to purchase a product anywhere else such as Footlocker, Finishline, and any other place you cant think of the Nike warranty applies to any location. Nike will reimburse you with a Nike gift card and if not, Nike also provides a contact number where you can call and speak to a representative where they will help you with all your needs. 

Chapter 8. Segmenting and Targeting Markets

Nike utilizes the methods of Segmenting and Targeting Markets in order to optimize sales of their products. Nike identifies the market and segment depending on the product that they are selling. Nike mainly uses Demographic Segmentation in order to sell their products. Nike divides up their footwear by the gender of which they are being made for Male/Female. They also base it on the ages of the customer (Infant, Youth Sizes, Big Kid Sizes & Adult Sizes). The prices of the sneakers are usually satisfying to every income class since there are a huge variety of low priced, high priced sneakers. Nike also utilizes Psychographic Segmentation to further their sales of their products. A lot of Nike Sneakers are broken down into lifestyle sections. Sneakers are broken down into, Running, Golfing, Basketball, Football & casual etc. These also serves as Nike target Markets for their sneaker, based on what their interest are. 

Chapter 11. Developing and Managing Products

With Nike, new products are important to sustain growth, increase revenues and profits and replace obsolete items. It's seems like every time you turn on your television computer or even walking around the city, you can't go a day without seeing some type of advertisement  for Nike. all of Nike's new product have become more environment friendly. One of Nike's product that was introduced a couple years that still gets a lot of heads turning are the Nike Free Run. The Nike Free Run product feels like you're walking on clouds. wearing the sneakers literally feels like your barefoot. Th e Nike Free Run product are manufactured with recycled materials and one of the most flexible shoes you will ever wear on your feet. 

Nike doesn't have much of a problem with product life cycle. For example the Nike Air Max series that were manufactured in 1995 are still in high demand today. The only difference between a 1995 pair and today's pair is the material used to manufacture the sneakers. Their now more light weight and composed from different reusable materials. Nike also has begun to start using more technology with all their product, so for the near future expect to hear Nike coming up with new innovations and having their own stamp in the technology world.

Chapter 18. Social Media and Marketing

The new media feature Nike has developed is called "Twitter RSVP". (Only eligible for Twitter account users only) The way it works is Nike stores across the country tweet hash-tags that you will have to message back to, with the following info: Product hash-tag, first & last name, and size, once it's done, Nike will respond back on a fist come first served bases to those who successfully completed the message. With the replied message customers get the opportunity to purchase the product. This makes it easier for Nike to have a more complete interaction with the consumer. This also gives them feed back in areas of populations throughout the country, contributing to future locations in areas not yet explored by Nike Inc. Nike keep coming up with ideas in order to manufacture, sell and satisfy their customers and distribute their product accordingly in favor of the public themselves. 

Chapter 10. Product Concepts

Nike can be seen as a juggernaut when it comes to the strategic planning, retailing an advertising their products, also in the way consumers view their products. Nike products cannot be categorized into just one area. Nike products can be categorized in every kind of retail product. Some footwear can be considered a shopping product, because some are more expensive then other athletic shoes. Due to this fact a person in search for a limited Nike shoe would shop around and compare this product with other highly expensive athletic shoes. Nike athletic apparel can also be seen as a convenience product  because nike products can be found in almost any retail store even if they don't specialize in athletic apparel. 

Nike markets and advertises their products consumers do have the idea that they have a specialty product with a special clientele. Those who buy Nike products are not likely to except a substitute and thats because of design. The creative power of Nike make hundreds of decisions daily that impact thousands of products in their portfolio. Ultimately, these decisions shape Nike’s footprint. Nike gives designers feedback in key areas like materials, waste, chemistry and innovation, this helps them make important decisions. This all shapes up Nike's footwear concept. 

Chapter 17. Personal Selling and Sales Management

Nike's way of persuading consumers is by showcasing the quality of the product. The company doesn't do much discounts. If they do have a sale it would be through retail stores such as Footlocker, Modells, Foot Action and Finishline. They do more of a point of purchase promotion system in such cases. One example would have to be this Nike's new "Nike Hyperdunk" sneakers with the additional "Nike Plus" a system in which you can train and exercise and when your done, you can upload your Nike device to your computer and it will give you all your daily training results instantly and also compares your athleticism with other people in the world. Nike retailers provide their customers with the best one on one customer help/assistance to make the personal sell that much personal. When the customer becomes interested, Nike relies on the salesperson to do what it take, whether its visuals, adds or color scheme or even pitch a new sport gadget to make the sale because it's harder for a company to effectively sell their products if there isn't much discounts or coupons.

                                                                                                            

Chapter 16. Advertising, Public Relations and Sales Promotion

Advertising 

Nike has an enormous amount of sales promotion to advertise all their new products. The four main ways Nike uses sales promotion are currently through television commercials, social media, billboard adds, and using athletes from every major sports league as a representative who represents them. For example, LeBron James for Basketball, Serena Williams for Tennis , Lionel Messi for Soccer, Calvin Johnson for Football & Derek Jeter for baseball. Nike spends millions on advertising alone in a single year to insure that their product is being seen and hopefully it will motivate people to head to the stores to purchase.

Public Relations

Considering Nike’s successful history in sales and athletic sponsorships, they have taken a beating when it comes to public relations and social responsibility, having seen their share of accusations over time.  Problems like these have plagued major corporations, such as Wal-mart and McDonald’s, forcing them to find ways to drive from being associated with greed and corruption. However, in a recent "Corporate Responsibility report". Nike’s focus was recognizing the impacts of declining natural resources. This seems to be a continuation of their goal to reach a model that achieves zero waste with products that can be reused. 

Sales Promotion

Nike isn't known for having much sells but they opened an outlet at the Citadel Outlet in Los Angeles.  Nike's expansion plan calls for a mix of discount type Nike stores in outlet malls and Niketown stores, which sell newer and exclusive items and are often found in upscale shopping centers all across the country. Consumers won't find the latest Nike sneakers or Air Jordans at the Nike Factory Store. Instead, the factory stores sell products left over from past seasons at prices discounted from when the items first arrived in other retail stores. Which would make it easier for customers to purchases previous items they couldn't purchase once before. 

Chapter 14. Marketing Channels and Retailing

Nike has become the world wide leader in expanding and retailing, making it easier to move and sell their product around the world. Nike has set in motion a plan to expand its global retail foothold by opening 250 to 300 new stores over the next five years. That expansion includes a Nike Factory Store that opened at the Citadel Outlet in Los Angeles. This new store is Nike's 15th factory store in California ALONE! Nike currently has 155 factory stores open in the United States. Nike's expansion plan calls for a mix of discount type Nike stores in outlet malls and Niketown stores, which sell newer and exclusive items and are often found in upscale shopping centers all across the country. Consumers won't find the latest Nike sneakers or Air Jordans at the Nike Factory Store. Instead, the factory stores sell products left over from past seasons at prices discounted from when the items first arrived in other retail stores. Which would make it easier for customers to purchases previous items they couldn't purchase once before. The factory stores stock casual clothing, as well as products for sports such as running, training, soccer and basketball. 

For Nike, retailing is based on the customers  desires and or needs. And thats where Niketown comes into place. Niketown stores focus on selling newer footwear and apparel. Select Niketown stores, such as one in New York, Central Park feature NikeiD studios, where consumers can choose custom colors and materials on shoes made to order specifically. As a part of Nike's increased retail efforts, the company recently remodeled a Niketown location in London, expanding it to 42,000 square feet and adding a NIKEiD studio. The London Niketown store spans four floors and is the company's largest. NIke believes in space, the bigger the space the more product they can produce and put out to sell. Nike designs their store according to their market. Each floor is specifically for a certain age group or and sport. so each floor provides something new for the consumer. 

Chapter 6. Consumer Decision Making

Consumer behavior describes how consumers make purchase decisions and how they use and dispose of the purchased goods and services. Five steps that consumers make in decision making are: need recognition, information search, evaluation of alternatives, purchase, and post purchase behavior. Nike is the leader in consumer decision making when it comes to athletic footwear. They have mastered the art of consumer want and thats by offering style. Nike has taken into account that not only do people need but they want! Nike has realized that most of its consumers seek not only shoes that perform but shoe that have style. Most of Nike's basketball footwear sold nowadays are bought by consumers not to wear to play the sport but to wear casually in their everyday lives. The sneakers that Nike sells now carry a hefty retail price with some ranging from $160 to $270. Nike has taken in to account that their consumer market is not necessarily a "need" market but predominantly a "want" consumer market so Nike makes stylish athletic sneakers with a hefty price tag because most of Nike's popular footwear sell out instantly, so as long as the consumer is willing to pay, Nike will continue to charge. 
     
Nike is known for their great innovations and methods of keeping up with the everyday changing trends and the different unique styles. Nike makes it easy for the consumer to know what they want when they want it. Nike does most of their consumer making through advertisements, the athletes, and celebrity who represents them.

Chapter 5. Developing a Global Vision

Nike as a  company is focus on Sustainable business and Innovation. This will be integrated across Nike's business strategies, creating a more sustainable approach aimed at providing greater returns to its business, communities, factory workers, consumers planets across seas.

Nike expects products to have an environmental impact, contract factory workers who will gain from more sustainable manufacturing and their employees and shareholders who will be rewarded by a company that is prepared for the future. Recognizing the impacts of declining natural resources and the need to move to a low-carbon economy. At Nike, the goal is to achieve zero waste in the supply chain and have products and materials that can be continuously reused, no pre or post consumer waste. This vision is designed to drive innovative and sustainable business processes and models.

Other goals remains more challenging such as managing overtime in contract factories. Nike has also revised or clarified targets in a few instances due to a better understanding of the complexities of the issue or a change in strategy over seas with their plants and conditions. 

Improving Performance 

Factories that make footwear, apparel and sports equipment have a wide variety of environmental impacts, including their use of energy, water and diverse materials; the related creation of waste, greenhouse gases and other emissions and release of toxins. They have worked with contract factories for several years to improve their management of energy, water, waste, toxic materials and water discharges. Their committed to a goal of zero discharge of hazardous chemicals by their material vendors and contract manufacturers by 2020. Many of these environmental issues are also social issues as well. They expect the factories that make their products to comply with all legal and Nike requirements set out in their Code of Conduct and Code Leadership Standards and to be good towards the environment. As natural resources come under increasing pressure, a factory’s capability to use resources efficiently and reduce its environmental footprint is an indicator of its potential for long-term success, and at Nike this is what it's all about. Making product thats efficient, environmental and productive. 

Chapter 4. The Marketing Environment

Nike is the ultimate powerhouse in the shoe industry. Brands such as Asics, Reebok, New Balance, Puma and Adidas compete with the brand. Nike has become so successful over the years that they have covered every aspect of the footwear and apparel industry. Nike owns various companies, such as Cole Haan, Hurley International, and Umbro which cover classy, luxury and surf apparel. Nike Inc. also own Air Jordan brand, which is a branch under Nike Inc. driven by the man who's name are revolutionized sports as a whole, Michael Jordan. Nike offers different options and also tries to target every economical class in the economical pyramid. Nike also owns the legendary Converse footwear, which as been making footwear since the early 1900's. Nike's marketing has consisted of one thing and one thing only, Advertising. Nike has always had it's way with professional athletes since the early 80's. Either hiring them or having them wear their equipment. Starting 2012, all football (NFL) apparel is being made by Nike. Making it easier to advertise their name and brand into millions of houses every Sunday and Monday night. 

New Media Marketing

Nike was an early adopter of internet marketing, email management  technologies, and using broadcast and narrowcast communication technologies to create multimedia marketing campaigns and advantages. In 1997, Nike was under fire for their labor practices amidst increased public awareness of the use of sweatshops in outsourced manufacturing. Nike created a website and adopted an email management system where they can confront and diplomatically deal with the influx of email communication and strengthen their public image through one-on-one interactions. This allowed them to mine data, remain sensitive to costumer feedback, and reduce the cost of service. Which is now used for different advertisers utilized the same email management technology for Nike to integrate TV, email, print media and the web in one of the earliest multimedia marketing campaigns, that allowed consumers to email featured athletes. For example, Nike now uses Twitter as a faster and more convenient way to get and purchase sneakers.

The new media feature Nike has developed is called "Twitter RSVP". (Only eligible for Twitter account users only) The way it works is Nike stores across the country tweet hash-tag that you will have to message back to them with the following info: Product hash-tag, first & last name, and size, once it's done, Nike will respond back on a fist come first served bases to those who successfully completed the message. With the replied message customers get the opportunity to purchase the product. This makes it easier for Nike to have a more complete interaction with the consumer. This also gives them feed back in areas of populations throughout the country, contributing to future locations in areas not yet explored by Nike Inc. Nike keep coming up with ideas in order to manufacture, sell and satisfy their customers and distribute their product accordingly in favor of the public themselves. Making this process a marketing advantage by Nike.This new method is purposely used to target age group 18 to 35 years old. Making it easier for teens and middle aged adults to purchase footwear without having to leave their comfort of their own homes to make lines outside retailers overnight. This now makes it safer for the customer to purchase Nike goods without the hassle. 

Chapter 3. Ethics & Social Responsibility

Energy & Climate 

Climate change is perhaps the ultimate systems-wide challenge, in our entire planet. Climate change and the related issue of increasing energy demand pose challenges to their business, their industry and society as a whole.

At NIKE, Inc., reducing their own contributions toward climate change is a primary aim of their sustainability strategy. But they know that doesn’t go far enough, so they have also work to provide leadership in the business community toward climate stability.

Their aim is to drive innovation, collaboration and public policy advocacy to deliver carbon reductions across the value chain. 

Labor

NIKE, Inc. has worked to improve labor conditions in their footwear, apparel and equipment supply chains for more than 15 years. They have been working with contract factories to build their human resources management skills and help them reach even higher levels of economic, social and environmental performance. Their work has centered around three fronts:

- Working conditions in factories: Environment, safety and health

- Labor rights, freedom and protections

- Worker's lives outside of the factory and living conditions in their communities

Their aim is to transform there working relationship with contracted factories to incentivize changes that benefit their workers, instill changes in their code, instigate innovation, educate to build management capabilities, address root causes in their own processes, work with the industry, and reward factories achievement.

Chemistry

Nike is committed to making their products in ways that protect workers, consumers and the environment, all while delivering the high quality and performance for which their are known for. One aspect of this commitment is their work to eliminate, reduce and responsibly manage hazardous chemicals in their supply chain.

Water

Water stewardship including attention to water quantity an quality is an essential part of our sustainability strategy. We are working to design products from materials that require less water to produce, and helping material vendors and contract factories to reduce their water-related impacts and eliminate hazardous substances from discharge into water.

Waste 

At NIKE, Inc. they define waste as any material purchase anywhere in their supply chain that does not ultimately end up as a useful component of product, or cannot be reused at the end of product life. This includes packaging, shipping material and product samples, in addition to a wide range of manufacturing waste, such as scrap fabric, leather and rubber. This definition, which is broader than most companies forces them to think about waste at all points across their value chain.

Their ultimate, long-term vision is the conversion of raw materials into finished products with zero waste, as well as “closing the loop” on materials use that is, using only materials that can be fully recycled.

Community

They believe in the power of human potential. They are leveraging the size and reach of their brands to effect positive long-term changes that empower and support the communities which they live, work and play.

Their aim is to deliver focused areas of impact through innovation, partnership, advocacy and movement making, with a stable source of funding to allow for a portfolio of innovation to scale and flourish.

Chapter 2. Strategic Planning for Competitive Advantage

As the world’s leading athletic footwear, apparel company, NIKE Inc. is dedicated to inspiring every athlete to reach peak performance. Nike co-founder Bill Bowerman sawendless possibilities for human potential embodied through sport. His philosophy still guide sour mission today: “To bring inspiration and innovation to every athlete in the world.” "And if you have a body, you are an athlete."
Through our commitment to innovation and design, they are continually challenging ourselves, and their customers, to reach that next level of achievement. They strive for:

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

Company Portfolio
NIKE, Inc. includes seven distinct brands, each with a powerful connection to its customers:

Nike Brand- Designs, develops and sells high-quality athletic performance gear and sport inspired casual products, including footwear, apparel, equipment and accessories.

Cole Haan- Designs markets and distributes luxury shoes, handbags, accessories and outerwear

Converse- Designs markets and distributes athletic footwear and appeal

Hurley International LLC- Designs marketing and distributes action sports and youth lifestyle footwear, apparel and accessories

Umbro- Designs distributes and licenses athletic and causal footwear, apparel and equipment primarily for football & soccer.

Nike Golf- Designs and markets golf equipment, apparel, balls, footwear, bags and accessories

Jordan Brand- Designs and markets premium footwear, apparel and accessories inspired by the dynamic legacy, vision and direct involvement of Michael Jordan

Cole Haan, Converse, Inc., Hurley International LLC, Umbro international Limited are wholly owned subsidiaries of NIKE, Inc. These affiliate business play a major role in the future growth plans. Together with their Nike Golf division, the company as a whole contributes approximately $2.7 billion of the company's $20.9 billion in revenue.

Plan For Growth
Nike is growth company. But they want to deliver growth in the right way. They seek growth that is:
- Sustainable
- Profitable
- Capital efficient
- Brand enhancing
Like many other business, Nike faced some significant headwinds. Around the world, unemployment was high, especially among youth and governments wrestled with high debt levels. Rising cost of energy and labor sparked inflationary pressures. in turn, higher cost of materials, labor and freight were evident in their margins. While the headwinds they faced were shared across their industry, the competitive advantages they have their unique to the Nike portfolio. In spite of ongoing macroeconomic challenges, they are well positioned to leverage their strengths, including scale, operational capabilities and pricing power – to help mitigate the risks beyond their control and capitalize on opportunities to grow the company.

Integrating Sustainability Into Our Game Plan
A more holistic sustainability strategy that is fully integrated into the business enables Nike to create value, not just through risk mitigation, but also through top-line growth, cost avoidance and better access to capital. As an example, their next portfolio of targets is designed to improve Nike’s environmental and social impacts for them and across their value chain, while also avoiding costs across the value chain by reducing waste, energy and water expenditures. 

At Nike, one way they seek to deliver shareholder value is through sustainable growth. To them, sustainable growth means there long-term vision to deliver profitable growth decoupled from constrained natural resources, even as they work to deliver value to their shareholders in the near term. Meeting these two objectives requires a careful balance – one their stakeholders expect of them – and it remains their commitment. They attempt to strike this balance by leveraging their significant competitive advantages, including their authentic, emotional connections with consumers; innovative product and retail experiences that lead the industry; and a strong NIKE, Inc. portfolio that gives them tremendous opportunities for growth and profitability.

As they set aggressive goals in all areas of their business – financial, social and environmental – they are committed to sharing these goals and to reporting on their performance to consumers, the investment community and others interested in their commitments and progress, including the wider sports and apparel industry, community groups and academia. Over the past 15 years, they have moved from approaching sustainability as a risk management issue to viewing it as an innovation opportunity and a competitive advantage to be integrated into every aspect of their business. 

Target & Performance 
Their vision of the future is one in which they see a world in transition from an industrial economy to a sustainable economy, where renewable sources of energy flourish, water is borrowed responsibly and returned clean to communities, waste is a new asset, workers across the industry are consistently valued and environmental impact will be a critical metric of success.

This is a future that will be good for business, economies and communities, and citizens, workers and consumers. And they are determined to set Nike up to lead and thrive, in this environment.

In order to get there, they will need to move from incremental to disruptive innovation. Their aim of decoupling growth from constrained resources will require change at a systems-wide level. No single company can eliminate toxic chemicals from vast supply chains, nor improve living conditions of workers in low-income communities, nor eliminate waste from consumption. They need step change in collaboration to drive collective understanding of the systemic issues they face and agreement on the solutions. Competitive advantage should be built on a sustainable playing field where getting better faster than the competition raises the bar for everyone. That will require relentless focus on systems innovation and collaboration across government, industry, social influencers and even consumers. It also will require putting sustainability at the heart of innovation.

They operate in a globally competitive industry, where markets change, regional and national policies play into the impacts they have and the way they can address them. In some cases, the kind of large-scale systemic changes needed to make a lasting positive impact in the environment and society. While retaining communities and businesses, this requires movement on all fronts. It sometimes requires agreeing with their common approaches and definitions. One example is in their approach to sourcing and assessing factory performance by including the expectation of progress toward the Fair Labor Association’s definition of “fair wages” into what they consider compliance. That relates to minimum wage, inflation, community vitality and other things beyond their control. It speaks to all efforts needed to bring about a better world.

Their milestones needs is along way, they take their environmental and their social targets seriously. In the same way a company’s business targets are based on the planned, the real, the owned and the predicted. They work to develop targets that organize their efforts, drive and performance to help them to take account of what’s important and how their managing.

Manufacturing

Their value chain is global:

- More than 900 contracts factories

- More than 1 million workers

- More than 500,000 different products, each with its own environmental and social footprint

Their ability to improve their own footprint and shape sustainability solutions at scale relies on fundamentally changing the nature of their relationships across the value chain, including,  importantly with the factories that make their products. Like many global companies that outsource production, their supply chain is complex, fragmented and influenced by factors beyond their power. That’s what makes their work so challenging. They do not own these factories, so they cannot mandate change. Instead, they build and influence positive change through their contracts. 

Chapter 1. Overview of Marketing

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. The company was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman and Phil Knight and officially became Nike, Inc. on May 30, 1978. The company takes its name from Nike, the Greek goddess of victory. Nike, originally known as Blue Ribbon Sports (BRS), was founded by University of Oregon track athlete Philip Knight and his coach Bill Bowerman in January 1964. The company initially operated as a distributor for Japanese shoe maker Onitsuka Tiger (now ASICS), making most sales at track meets out of Knight's automobile. By 1971, the relationship between BRS and Onitsuka Tiger was nearing an end. BRS prepared to launch its own line of footwear, which would bear the Swoosh newly designed by Carolyn Davidson the woman who created the Nike "Swoosh". The Swoosh was first used by Nike on June 18, 1971, and was registered with the U.S. Paten and Trademark Office on January 22, 1974.

In 1976, the company hired John Brown and Partners, based in Seattle, as its first advertising agency. The following year, the agency created the first "brand ad" for Nike, called "There is no finish line," in which no Nike product was shown. By 1980, Nike had attained a 50% market share in the U.S. athletic shoe market, and the company went public in December of that year. 

Together, Nike and Wieden+Kennedy have created many print and television advertisements, and Wieden+Kennedy remains Nike's primary ad agency. It was agency co-founder Dan Wieden who coined the now-famous slogan "Just Do It" for a 1988 Nike ad campaign, which was chosen by Advertising Age as one of the top five ad slogans of the 20th century and enshrined in the Smithsonian Institution. Throughout the 1980s, Nike expanded its product line to encompass many sports and regions throughout the world. In 1990, Nike moved into its eight-building World Headquarters campus in Beaverton, Oregon.

MISSON STATEMENT: To bring inspiration and innovation to every athlete*  

*IF YOU HAVE A BODY, YOU ARE AN ATHLETE