1. Nike
“Just Do It”

2. The Beginnings 1962 – Phil Knight & Blue Ribbon Sports
1964 – Bill Bowerman (U of Oregon) joined him to design running shoes
Nike – “winged Greek Goddess” & the “fat check mark” was a compromise (cost $35)
Steve Prefontaine (runner) was the first endorsed athlete – against the establishment
Boston Marathon – first event (Jon Anderson won in a pair of Nikes)

3. Formative Years 1974 – Waffle trainer
Brand choice of mass market influenced by top athletes
1980 – surpassed Aidias as the #1 shoe company with 50% market share
Running was the key – aerobics became popular and Reebok reigned
Focus on innovation, males and serious athletes rather than style and females – lost share to Reebok

4. Transitions
Became more marketing oriented – consumer focus rather than product focus
Shoes, colors, clothes, athletes, logos and TV advertising
Up until now, only advertised in peer running journals
Weiden & Kennedy – Air Max “revolution in motion”

5. The Reign of Air Jordan
Focus on basketball – signed rookie Michael Jordan b/c Nike offered more than Aidias
Nike sold $100 million Air Jordans in the first year

6. Just Do It
Reebok paid too little attention to performance so Nike regained market share
1988 – Just Do It $20 million month long blitz (12 TV spots) urged Americans to participate in sports
Attitude of self empowerment through sports – both celebrity and non celebrity endorsers
By 1990 – Sales $2 billion

7. Just Do It
EKINS – sports loving employees who hit the streets to disseminate Nike information
Brand Strength Monitor – tracked consumer perceptions
1991 – Sales $3 billion; by 1993 Nike athletes include 265 basketball players, 275 NFL football players, 290 baseball players and college coaches and players
Emphasis on top line performance wear

8. The Image Crisis Labor practices Ubiquity of the swoosh
Asia plants – unsafe working conditions, uncompensated overtime, underage workers
Boycotts, letters of protest and lawsuits
Nike implemented changes as a result
Ubiquity of the swoosh
Too many swooshes; too aggressive corporate philosophy

9. The Swoosh Downplay logo displays Nike – all small letters
Separate business units for Jordan, All Conditions Gear (ACG) and NikeGolf Brands
Nike Alpha Project – most technologically advanced project

10. The Here and Now
Caught behind the curve for “action sports” and “brown shoes”
Not perceived as “cool”
Revitalize ACG
Now on the upswing for revenue and growth in soccer and apparel
Tigers Woods & Tour Accuracy Ball

11. Challenges What is Nike’s Brand Image and sources of brand equity?
What should Nike do to become “cool” again?
How should Nike attempt to reach young consumers?