Jayaprakash

Keyur

Murali

Senthil

04/17/2023 1

2

Nike - characterize brand image & sources of brand equity in U.S • Nike brand image that the company initially was building is a pure American

icon, high performance, innovative aggressive brand, associated with high notch athletes, achievers and winners; mainly serious males.

• Nike is perceived as a high performance brand, since Nike considered performance as top priority.

• Innovative image in the minds of consumers (Innovative Strategy)– 1965 - Debut of First Marathon Shoe– 70's - Innovative new cushioning technology– 1988 - Introduction of Air technology in basketball shoes– Later alpha line high tech products

• They used brand associated with achievers through getting the endorsement of high notch athletes in the US.

• Nike’s image was totally different from other US local competitors - They portrait the American spirit of competition, superiority and even Arrogance

04/17/2023

04/17/2023 3

• Nike is associating its brand with famous athletic celebrities (Michel Jordan, McEnroe, Michel Johnson) ; they are achievers, winners, determinant, and accomplishment oriented, nontraditional (out of the box).

• The most famous example for brand association ever was the collaboration between Nike and Jordan - amazing top performing brand

• Brand Awareness - Nike communicated this association through their TV ads (Jordan air ad)

• Perceived quality - Public that used their shoes just for walking around yet Nike was committed to design their shoes according to the high standards of professional competition.

• Brand credibility - in the 80’s when Aerobics games were rising and the trend in the shoe design was shifting toward more fashionable, less durable line. Nike still kept up its promise by delivering high performance and high quality shoes.

• Brand loyalty – Knight communicating in the language by athetic.• “Finger on the pulse strategy” where Nike have some of its employees

hitting the street finding out what is in the minds of their consumers and following their needs and tracking their brand perception.

04/17/2023 4

• Challenges in Europe : – Adidas and Puma with 75 % of Market share– Adidas and Puma had alliances with local sports teams and athletes.– Nike’s image as aggressive and expensive American brand

• Nike’s Strategy– Became sponsor of athletes, local clubs, soccer leagues.– Repurchasing licenses from distributors. – Focused attention on Barcelona Olympics.– Raised global advertisement budget to $ 240 Million.– Used apparels for building Nike franchise. – Sponsorship of Brazil soccer team which won 1994 world cup.– Two tier marketing approach, by featuring local players and Global

players.– Studied foot morphology for design of flagship soccer shoes, Mercurial in

1998.

Global Brand Building : Europe

04/17/2023 5

• Nike Commercials:– “Nasty boy” image of American tennis star, John

McEnroe in 1981.– Launched centralized print campaign to introduce

Air technology in 1988.– Launched its gospel campaign, “True to its [Nike]

soul” in 1989– Featured Jimi Hendrix with tagline “Play Hard Die

Old”.– The Wall Commercial for soccer 1994 world cup.– Controversial “Nike vs. Evil” Ad in 1996.

Global Brand Building : Europe

04/17/2023 6

• Nike’s Strategy:– Japan as primary market with import of 100

million of Nike products in 1992.– Attention on China.– Softer ads for Asia with celebrated local athletes

as heroes.

Global Brand Building : Asia

04/17/2023 7

Sponsorships and Endorsements vital to Nike’s business?

• Sponsorships and endorsements are very vital to Nike business. Nike has built a strong brand image along the years through successful brand associations with legendary athletic heroes (American and non Americans).

• The successful brand association strategy of Nike is based on three main pillars, the attractiveness of the celebrity, the credibility of the celebrity and the personality match between the celebrity and the brand.

• Generated $9.5 Bn with relation between Jordan & Nike

04/17/2023 8

• Be Innovators and keep Investing in R&D to give new products to customers.

• Enter into growing economy like Nike’s Entry into Asia.• For International growth take Two tier marketing approach,

by featuring local players and Global players.• Strategic entry into new segments as Nike entered into

apparel segment.• Take previous learning into account for designing market

campaigning programs as Nike’s Ads campaign Asia.• Listen to customers as Nike’s Women centric approach.• Management of public perception of logo as it should not

be ubiquitous

Learning from the case

14/10/2011 9

Thank You !!!