The Nike Brand Name - Case Study Example

Demographic Changes and Social Influence 1. Changes in Men Men shoes accounts for a substantial portion of footwear industry. Compared to women who possess more than one pair of shoe at a single time, a man can stay with the same shoe for sometimes without purchasing a new pair (Allen, 2008). Men are associated with numerous sporting activities such as running, basketball and football while they like wearing sport shoes. Due to changing environmental requirements and technology, many organisations and institutions have started appreciating the presence of sport shoe that is related to casual work attire. This has made the demand of sport shoe to soar resulting in shoe companies such as Nike benefiting. The increase prevalence of sport activities such as soccer, football, running and International games such as cricket and European leagues has resulted in many men wearing sports shoe to watch these games. Moreover, the awareness of health and many men been health conscious have seen the importance of frequent exercises to improve their health resulting in increase in demand of sports shoe (Allen, 2008). 2. The Slogan A slogan is an important component in defining and organisation and is usually associated with brand. Kotler et al. (2009) defines a brand as “is a name term, sign, symbol or design, or a combination of these, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of competitors” (p. 283). The Nike brand name provides means of marketing other products that include footwear and clothing line. Just Do it slogan is the most famous and easily recognised slogans that can be found in the advertising industry. The Nike brand is a strong brand that can be placed in the same sector such as brands of companies such as Coca-Cola, Proctor & Gamble, and Gillette. The slogan plus the brand name makes consumers to purchase the product because of style, superior quality and reliability. The strong brand name makes the owners' brand to command higher prices, expand market share and generate more revenues compared to competitors (Allen, 2008). The Just Do It slogan attracts different consumers from across consumer lifestyles. The slogan is based on the fundamentals of the Nike Company because the company ads are in terms of intense and inwardly focused competitor. This means that the product does not focus on the product rather it focuses on the person wearing the product. The campaign slogan instilled the corporate philosophy of determination, grit and passion but also expounded on the idea of humour. The ads that are associated with this slogan incorporate jokes, implicit and explicit, to make their point. For example, the ad that shows Bob Jackson stands out because he is seen working in different activities using the same shoe product. This means that the slogan helped and helps the company to succeed in its advertising strategies. The Nike slogan expounded on the consumers make them to become permanent customers through associating them with the slogan and shoes. The slogan is not determined by the consequences rather it champions the fundamentals of actions - Just Do It analogy. Thus, men are told to purchase and use the product while the consequences will take care of itself. However, the slogan has been used since 1988, and with time, changes are inherent and should be factor into the development of a new slogan (Allen, 2008). 3. Communication In the footwear industry, there are numerous competitors especially those of Reebok and addidas producing shoes that are directed to men. An environment that requires rigorous marketing strategies links with the consumers. Nike employs different strategies in ensuring that their products are known and resulting in the purchase of their products (Allen, 2008). The company uses different communication media ranging from audio, video and print media to the current social networking technology. All their communication strategies are associated with the Just Do It slogan that brings together famous celebrity figures in sport industry such as Michael Jordan, John McEnroe and Bo Johnson. Thus, the incorporation of celebrates and ordinary people in the Nike's ads makes men to relate themselves with the people in the ads. Nike company understands that requirements and needs of consumers change frequently and thus has employed a research agency to advice them (Sweeney and Soutar, 2003). Wieden and Kennedy is a company that deals with consumer behaviour research and the company has been able to explore the needs and wants of the consumers resulting in development of ads that relates with the consumers resulting in profitability of Nike's company. The numerous advertising techniques that are used by company to affect male society that ranges from broadcast, print to Internet has resulted in the company accessing a large market share. The communication approach does not only embrace purpose and resolve but also drama, beauty and moral uplift of sport activities. 4. Customer Perceived Value Business Dictionary (2009) defines customer perceived value as “customer's opinion of a product's value to him or her. It may have little or nothing to do with the product's market price, and depends on the product's ability to satisfy his or her needs or requirements”. Thus, customer perceived value is the benefit that will be gained by a consumer from the Nike shoe. The perceived value links the tangible aspect of the shoe with psychological nature of the shoe such as the ads incorporates both celebrities and ordinary people. The tangible aspect of the shoe is associated with the superior quality, reliability and style (Sweeney and Soutar, 2003). For example, Michael Johnson was able to play a full season with a pair of Nike shoe shows that a person uses a single pair of Nike shoe for a long period, and thus translates into durability. Moreover, the endorsements by celebrates has appealed to the customers sense of belonging and making the Nike brand a self-fulfilling image. The impression created by the ads slogan as turned paid-ridden, sweaty, time consuming sports exercise into something that is sexy and exciting. The Nike Town is a city that explores the potential and capability of Nike shoe through utilisation of video, sound and interactive models that capture the attention of the consumers and increase the chances of persuading them to purchase the product. The Nike Town has championed men and boys shoe since it is the major segment that is associated with numerous games. Nike shoe product is manufactured in different countries and the country-of-origin ideology proves the better quality (Aby, 2002). The quality is also associated with the price and sometimes can be perceived as higher or lower depending on the consumer behaviour. It is crucial for Nike to maintain the top quality and also value for money through consistency and also the post-purchase evaluation syndrome. Moreover, the relationship between the company and consumers, customers verses the reference groups, and the quality of the shoe verses the consumers (Aby, 2002). For example, Nike endorsed a certain skateboard group to illustrate that the Nike shoe can be used with skateboard. This resulted in word of mouth marketing of Nike shoe resulting in the improvement of consumer perceived value. 5. Social Responsibility Social responsibility is an important factor for any industry since it determines its image and consumers perception. Social responsibility is based on not only companies should make profits but also to ensure that the components that make the company are within the social obligations. For example in his book Social Responsibilities of the Businessman, Bowen Howard (1953) presents five main components of social responsibilities that are ethical duties, business should improve civic life, utilisation of power within social contract, improvement of the society and negating the negative perceptions by the society. These provisions are entangled into the Nike's mission statement that states “to bring inspiration and innovation to every athlete in the world” (Nike Website, 2009) while the corporate responsibility mission is “We must help the company achieve profitability and sustainable growth. We must protect and enhance the brand and company” (Nike website, 2009). Nike Company has improved supply chain and environmental conservation strategies. The company has continuously disclosed their suppliers, conditions of their supply chain and commitment to change (Allen, 2008). Moreover, the advertising strategies that they use plus their social responsibility has ensured that the company is profitable. However, conflicts are inherent in any advertising strategy and for example; the Chinese consumers did not appreciated the “Chamber of Fear” strategy. This is because the consumers saw it as against their culture and thus insulting their community. Thus, it is imperative for Nike to understand different cultures and develop strategies that will not have conflict with these markets. References Allen, F. 2008. The Shoe Industry. New York: Bibliobazaar Publishers. Aby, A. 2002. The North Star State: a Minnesota History Reader. Minnesota: Minnesota Historical Society press. Bowen, H. 1953. Social Responsibilities of the Businessman, no. 3. New York: Harper and Brothers Publishers. Business Dictionary. 2009. Perceived Value. Access at: http://www.businessdictionary.com/definition/perceived-value.html [accessed 29 October 2009] Kotler, P., Adam, S., Denize, S., & Armstrong, G. 2009. Principles of Marketing (4th ed.). Frenchs Forest, NSW: Pearson Education. Nike. 2009. Home. Access at: http://www.nike.com/nikeos/p/nike/en_EMEA/? [Accessed 30 October 2009] Sweeney, J. and Soutar, G. 2003. “Consumer Perceived Value: The Development of Multiple Item Scale.” Journal Retailing, 77(2): 203-220 Read More