Nike +
“Innovation is at the heart of Nike” and this is the company’s main approach to business. (US Securities and Exchange Commission, 2012).
One of the most recent inventions that I personally use and find very interesting is the Nike+ (Nike plus). Nike+ is an innovative tool that was developed in cooperation with Apple. Nike+ allows consumers to count their calories and track their speed and distance during physical activity. Nike CEO Mark Parker and the late CEO of Apple Steve Jobs, unveiled Nike+iPod partnership on 5/23/ 2006. (Apple, 2012).
Nike + is one of the first products developed as a wireless system which allowed Nike + gadget attached to the shoes to “talk” or sync with an iPod nano. With the Nike+ footwear connected to iPod nano, information on time, distance, calories burned and pace is stored on iPod and displayed on the screen. Nike + sensor that is attached to the shoes allows user to track their data and allows them to connect and upload stats to the web site, where the information is analyzed. Using Nike+ website, the users can then set goals or join challenges (For example, my husband and I compare our runs).
Exchange process “An exchange process is simply when an individual or an organization decides to satisfy a need or want by offering goods or services in exchange.” (Fraisner, 2012)
Exchange is the basic tenant of marketing and it refers to sharing of the ‘values’ between two parties.
When it comes to Nike+, Nike Inc. leadership realized that there is a need for a daily activity monitor in the market and they seized the window of opportunity. Thanks to a great marketing campaign, fairly inexpensive price of the gadget and knowledge of the staff selling the product, in the stores around the country, Nike and Apple leadership were able to exchange their innovative product for the consumer acceptance and market recognition.
(The product success was ensured thanks to a great marketing campaign, but also due to the knowledge, communication and the exchange process between the salesmen and the buyers.)
4Ps
The Modern Marketing Management Four Ps refer to: people, processes, programs and performance. It appears to me that the most important factor in the case of Nike+ were people. Prior to developing a new product Nike leadership had one idea in mind “Consumer decides”. Nike’s Brand President, Charlie Denson stated “Consumers like to be a part of a community, whether it's a digital community or a virtual community, or whether it's a physical community. They want to feel like they're a part of something. They want to be engaged.” Allowing users to download running routes, upload their own favorite routes, participate in social networking and share information about upcoming events and races allowed for the product to create a better running experience.
In the case of Nike + 4 Ps of marketing were aligned.
People who were marketing the product new enough about the development and functionality of the product,
The process of marketing was ensured on both sides between Apple and Nike. (Nike promoted the product in the stores and Apple via Apple website, Apple events and Apple concerts)
Programs- The market status of each of these two organizations can be viewed as a marketing tool itself, not to mention that both companies are well known for the very high customer satisfaction. (For example Apple is very well known for their awesome customer service and just the fact that it was involved in the production of Nike+ ensured success of the product even before the product came out.)
Performance- Refers to a range of possible outcome measures, anything from profitability to customer equity ( Kotler& Keller, 2012) . In the case of Nike + profitability increased 8.1 % the second quarter after the gadget came out, however the customer satisfaction did not remain. Although the product was initially successful and sales increased, the consumers complained. Some of the major
Related Documents: Nike+: Marketing and Nike Essay
industry, health and fitness industry also proceeds with some appropriate strategies. Nike is considered to be one of the top 10 companies in fitness business. Let us take an example of the company Nike to illustrate the marketing, segmentation and positioning of this company. Segmentation Nike is mainly famous for making specially sports apparel. People play different kinds of sports. Keeping this in mind, Nike needs to segment their business strategies. Geographical segmentation: Companies do their…
Austin Wang Dr. Sean Jasso Section 22 May 24, 2012 Marketing Plan Stage 2 Nike: Executive Summary: - Bill Bowerman and Phillip Knight found the company as Blue Ribbon Sports in 1964 - Changed the name to Nike in 1978 - Nike Headquarter is located in Beaverton Oregon - Global marketer of footwear, apparel, equipment and accessory products - Offers footwear and products to sports such as tennis,golf, baseball, football, bicycling, volleyball, wrestling, cheerleading, aquatic activities…
Political PEST -The main countries that Nike sell their products in are U.S.A, the UK and European countries such as France and Germany, these all have stable political environments where there is a democracy. -Nike has to be aware of pressure groups who disagree with aspects of the business such as setting up factories in underdeveloped countries and using certain leathers for trainers. Social -Customer research so Nike knows how much and how often the customer buys a product and whether delivering…
Description of marketing strategies applied by Nike Air Force 4.1 Challenges Forcing Nike to Focus More on Marketing Sportswear is defined primarily as apparel and footwear made for sports participation, though is now also includes casual clothes worn by people for daily activities (E. Ko, C. R. Taylor, et al., 2012). The sportswear market is one of the most price-competitive markets throughout the globe. Within the UK, items of sportswear are purchased by almost 90% of people under 35 years of…
Nike We compared how males and females viewed the price of Nike and its competitors. What we found in both cases is that both males and females thought that Nike was more expensive than its competitors. We determined that there is not a significant difference between the way that males and females thought of the prices. Even though we did not find a significant difference we still found that females thought that the price was slightly lower in both cases. The theory that we have to explain…
Nike Inc. sales fell by 11 percent in China in the second quarter, but company executives said some of that is part of a broader strategy to reduce inventory and streamline product introductions into the market. Sponsored Links Planning for Retirement? $500,000 portfolio? Download the guide by Forbes Columnist Ken Fisher's firm. www.FisherInvestments.com Get Listed Here Erik Siemers Managing editor- Portland Business Journal Email | Twitter | Google+ Nike Inc. executives…
NIKE BY JONATHAN DOGBO MARKETING PLAN • Mission . • Marketing objective. • Marketing environment. • S.w.o.t Analysis • Target market. • Market strategy. • features MISSION STATEMENT Nike’s mission statement is "To bring inspiration and innovation to every athlete* in the world." • The legendary University of Oregon track and field coach, and Nike co-founder, Bill Bowerman said, "If you have a body, you are an athlete." NIKE • Nike was founded in January 25, 1964 by Phil Knight…
Nike “What It Takes To Become The Most Successful Athletic Company In The World” “What It Takes To Become The Most Successful Athletic Company In The World” Starting off as Blue Ribbon Sports, Bill Bowerman successfully used his passion for athletics and marketing to establish the worldly company, Nike. Persevering through negative media attention because of the sweatshop scandal, Nike has been able to rebuild their reputation and focus on…
Executive Summary Introduction Review of related Theories Analysis Conclusion Executive Summary This report is an analysis of Nike studio Wrap shoes to Adidas. In this report I will be using model concepts such as porter’s five forces and market structure. I will be comparing how well Nike will succeed in comparison to Adidas and how Nike can overcome certain boundaries that may bring to a halt to the sales of their shoes. I will be analysing what makes both of these brand work…
Environmental Factors for Nike Micah Flores MKT/421 May 6, 2014 Gina Owens-Ricks Environmental Factors for Nike Nike, Inc. is one of the most recognizable athletic apparel and footwear companies in the world today. Some even suggest Nike is the global leader in high quality sports performance clothing and shoes. Looking beyond the global stronghold Nike has on athletic apparel, there are environmental factors that affect Nike’s ability to market themselves to the world. The company must operate…