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Brand Royalty in Sports Industry: Nike Company - Case Study Example

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This case study "Brand Royalty in Sports Industry: Nike Company" establishes how Nike, a sports industry brand can remain competitive in the face of global competition using CRM and consumer behavior to build client loyalty and brand equity through primary and secondary research…
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 Using Сustоmеr Rеlаtiоnshiр Маnаgеmеnt and Соnsumеr Bеhаviоr to build brand equity and brand royalty in Sроrt industry: The Case of Nike Company TABLE OF CONTENTS Introduction 2 Research Background 3 Key Elements 5 Aims and objectives 6 Research question 6 Case study 7 Company Background 7 Nike Inc United States 11 CRM Process in Nike 13 Nike United States focus on excellence in customer service 14 A Consumer-Focused Brand 18 Nike Brand Equity 19 Analysis and Findings 22 Limitations and future research 23 References 25 Introduction In today’s highly competitive market, businesses have understood the importance of satisfying their customers as customer retention ensures constant demand for goods and services. Building brand equity and enhancing customer loyalty have been deemed as the most sustainable means towards long-term profitability and competitiveness. Customer relationship management (CRM) is termed as a multidimensional process where various information technologies are applied. CRM focuses on a proper understanding of client’s needs, wishes, wants and behavior and thereafter addressing them effectively. It helps businesses or companies understand the present and future needs of their clients, which allow proper planning (Injazz & Popvich, 2003). The importance of CRM is that it lowers the costs that could have otherwise been incurred in mass marketing. Other factors that have increased the importance of CRM in the contemporary times are the increased importance of the concept of ‘customer share’, as opposed to ‘market share’. Additionally; one to one marketing, customer satisfaction, customer loyalty and information technology developments promote CRM. Availability of information regarding the various products offered in the market in the face of cut throat competition sees organizations refocus their strategies to remain profitable (Russell, 2001). Combining modern technology in CRM programs promotes accurate planning both in the short, as well as, long term. Research Background From the early 1980’s, several researchers have tried to understand ways in which consumers make choices. However, many of them agree that making profits and giving consumers what they want forms the basic principles of marketing. Universally, all the researchers agree that it may be too pricey for clients who undertake their purchase process blindly. According to Cova and Cova (2002), the costs and benefits of meeting individual customer preference are less deterministic and extremely complex than has been assumed. This is because what customers prioritize on is susceptible to different influences and is often ill-defined. Additionally, in many cases, customers have little understanding of their preferences. In one of their recent research work, Delpy and Bosetti, (1998) tackle the issue of customer relationship management and how it influences brand equity. Nonetheless, many supporters of this marketing approach have agreed that maintaining a good relationship with customers and also by meeting their needs will build an insurmountable barrier against competitors and enhance customer loyalty. For instance, during major sporting events such as athletics and football, the sporting superstar characters are run on billboards and through shopping malls portraying NIKE brand hence enticing the entire public to identify with the brand. In this regard, Ferrand and Pages (1999) argues that due to the fact that consumer preferences are unstable and fuzzy, the companies should not only promote their brand, but also ensure that they meet the client’s needs. However, these methods of providing customers with specifically what they require have been overly exaggerated. According to Jacoby and Chestnut (1978), when customers receive offers that fit their preferences and also have well-defined preferences then with effective customer relationship, the offers available will consistently be more favorable compared to those directed at entire market segments. A consumer who maintains good customer relationship with the company has got a well-defined preference and is highly skeptical that the marketer should meet the desired expectations. However, customers who do not maintain effective customer relationship may not ever see the fit with what the seller is offering. So, to build on the buyer and seller trust, strong customer relationship should be maintained. This should be enhanced through effective individual marketing processes that require a thorough understanding of various factors that influence customer responses and matching offers to individual preferences. As a tall order, several companies have managed to fill it and if not wholly at least to some point. For instance, Amazon not only follows its customer's purchases but also suggests other texts that they might find useful. Further, Dell, a manufactures of computers produces even manufactures customized brands to customer specifications. However, as Lieberman (1991) commented, exaggerate the concept of customer relationship management. For instance Custom Foot shoe stores design one-of-a-kind shoes by taking detailed specifications and measurements from each customer. Disappointingly, Custom Foot failed to note that a considerable number of customers were disappointed by the individualized shoe brand. Regrettably, the stores lost most of its customers who were not satisfied with such overly customized brands and had to close down. In this regard, customer relationship management revolves around proper understanding of client’s needs, wishes, wants and behavior and thereafter addressing them effectively and not only knowing about customer preferences. More so, it is significant to understand other concept of customer behavior. As such, the present study tries to establish how customer relationship management and consumer behavior build on brand equity and loyalty focusing on Nike brand. Key Elements In the modern business panorama, the role of customer relationship management cannot be underestimated. Every customer no matter what industry they are doing business with needs to be happy so that they can continue doing business. When they are happy they become loyal and even assist the company with free marketing as they tell other people about their good experiences with the company. This calls for businesses to win customers from competitors and then retain and grow them by delivering greater value for money. For a business to satisfy its customers it must first be able to understand their needs and wants, and this requires careful analysis. A business must know their customers well enough to be able to satisfy them (Keller, 1993). Customer relationship management has been defined as one of the most powerful tools of communication used by many organizations. Organizations spend volumes of money to develop customer relationship management programs. These programs are meant to influence the consumer’s behavior positively. Organizations use rewards and incentives to influence consumer buying behavior. An example of reward system is when the purchase of one item results to an extra free item. This system continues to be applied in various industries and has been very successful in obtaining loyalty for organizations because it encourages repeat purchases. Some organizations have credit facilities for their regular customers enabling them to acquire items even when they don’t have money. This system is meant to make the customer feel indebted to the organization so that they can make repeat purchases. This is an example of a customer relationship management program that links CRM to brand loyalty. Customer relationship is particularly useful in sports industry because the competition that prevails require the business players to have good customer service, advertising and good public relations. It takes care of the above mentioned strategies by ensuring that they have been put in place. (Hoffman and Novak, 1996). Although many theories about customer relationship management exist, little effort has gone into studying its impact on sport industry. An assessment of how CRM influences the performance of sports industry is, therefore; overdue. With this regards, the purpose of this study is to determine the impact of CRM and its impact on sports industry, specifically the Nike Company. Aims and objectives The core aim of this task is to establish how Nike, a sports industry brand can remain competitive in the face of global competition using the customer relationship management and consumer behaviour to build client loyalty and brand equity through primary and secondary research. In addition, the following are the objectives that the present study aims to meet: Establish how customer relationship management programs affect and enhance brand equity in the sports industry. Analyse the effects of customer relationship management in promoting customer satisfaction and hence client retention. To explore how the sports industry, in this case Nike, uses the information to develop customer relationship management programs tailored to address customer’s needs. Research question How best can a sports industry such as Nike use consumer relationship management to enhance a long term and sustainable global brand equity and client loyalty? Case study Company Background Before Nike, there was the Swoosh. However, there were two visionary men who revolutionized athletic footwear hence redefining the industry. One of them was Bill Bower man was widely known as a field and track coach at the University of Oregon. Bower man constantly sought ways that could give his athletes leverage over the competitors. He conducted an experiment by use of re-hydration drinks, track surfaces and more importantly by innovations in running shoes and track suits. However, the established foot and sportswear manufacturers that had dominated the industry by that time ignored his ideas driving Bower man to cobble sporting shoes for his runners. Later on, Phil Knight, a talented distance runner competed Bower man’s branded track outfits program. After graduating from Oregon University, Knight worked on a paper where he proposed manufacture of quality branded sporting outfits in Japan that could offer competition to other established brands like Adidas. Though no firm immediately responded to his proposal, Knight approached Onitsuka Co. in, Japan, and persuaded the manufacturer to brand its sporting wears for the customers can identify with. Knight offered to be a distributor in the US and the customers’ response was quite encouraging. Later, on Knight partnered with Bower man and Nike Inc was founded. Nike was incorporated in 1968 and engages in the development, design and worldwide selling and marketing of sporting apparel and footwear, accessories, equipment and other services. As a re-known seller of athletic apparel and footwear, the company sells its products to retailers, through its retail stores, via the internet, and through independent licensees and distributors in nearly 190 countries across the globe. Notably, Nike focuses on seven key categories of sporting apparel and footwear including; athletics, football, basketball, men and women’s training track suits. In addition, it also deals with products designed for children, as well as for other, recreational sporting activities, such as cricket, baseball, golf, lacrosse, wrestling, volleyball and even outdoor activities such as walking. However, most of Nike's athletic foot wears are primarily designed specifically for athletic use. Other than sports apparel and accessories, the company sells bags and accessory items, as well. Interestingly, it also engages in apparel for professional teams and licensed colleges. Other than Nike brand, the company was also operating other brands such as Umbro brand which was sold in December 2012 to Iconix Brand Group Inc. More recently in February 2013 also sold its Cole Haan affiliate brand to APAX Partners LLP. Under Nike brand, the company sells a couple of performance equipment, including socks, bags, sport balls, eyewear, electronic devices, timepieces, bats, hand gloves, golf clubs, protective equipment and other equipments designed for sporting activities. In addition, it also sells various plastic products through Nike IHM Inc, its wholly owned subsidiary. Further, the company also sells directly to other customers through its direct to consumer division. More so, the company permits unaffiliated parties through license agreements to manufacture and sell certain apparels, digital applications and devices and other equipment meant for sports activities. According to Gladden and Milne (1999), Converse Inc. popularly known as Converse Designs, which is a wholly owned subsidiary, licenses and distributes casual and athletic apparel, footwear such as Chuck Taylor, One star, All Star, Star, Jack Purcell and Chevron trademarks. As a company Nike not only gives its customers just good athletic gears, but the truthful and original sporting gears. According to its website (www.nike.com), it notes that it is not so much about the shoes, but where they take you. Beyond the production of apparel, shoes, and equipments, brands equal others in the market as a way of life, as enshrined in its famous logo labeled “Just Do It”. Phil Knight, Nike’s chief executive and cofounder, argued that Nike’s culture and style act as a rebel. The company was founded on maverick disregard for convention and on a platform for sports hard work, performance and serious passion for sports. Compared to other famous and widely known sporting brands, when you purchase a Nike gear, you share Michael Jordan’s popularity, Tiger Woods’ cool nature and confidence, Jackie Joyner gritty and endurance, Ken Griffey selfless and consistency and Michael Johnson’s heroism in athletics. Interestingly, Nike is widely associated with athletes and athletics are sports meaning that Nike is basically sports. As a good customer relationship management, Nike is seen to care as much about its clients’ lives by minding their bodies. Notably, it not only promotes sales, but promotes sports in general. For instance, in its “If you let me play” campaign it showed strong support for women’s sports including for young girls. Alternatively, Nike also invests in little known sporting activities, despite providing less-lucrative business opportunities. Such initiatives portray Nike not only as a producer of popular athletic gears, but also as a caring and good organization. Thus, putting the customers’ interest first has paid off handsomely for Nike. In this regard, Nike’s sales have continuously grown at an incredible annual rate. Also, its brand popularity has enabled it to dominate the sporting apparel and footwear industry. For instance, Nike enjoys about 45 percent share of the U.S. market, twice that of Reebok, the nearest competitor (Allaway, et al., 2011). Overtime, Nike has aggressively moved into new products and markets across the world. Surprisingly, Nike’s sports apparel line of business has explosively grown and now accounts for the bigger stake of the $9 billion annual sales. Moreover, Nike’s familiar swoosh logo currently appears on every of their products ranging from soccer balls, sunglasses, hockey sticks and batting gloves. Nike Inc United States Upon gaining popularity of Nike branded sportswear, Nike, Inc has grown to be one of the world leading manufacturer of athletic apparel, shoes and equipment. Further, the company has created around 30,000 jobs globally with 6,000 employees working at Nike Headquarters based at Oregon. By the year 2006, Nike had seven hundred factories located in 52 different countries. Notably, in the year 1998, Nike agreed to apply sustainability principles to enhance its business operations. This was done by formalizing its policy, which was included in its mission statement. Further, Nike embarked on training its employees on how to use the natural step framework thereby encouraging more innovative programs that could further its sustainability objectives. Again, in the year 2008, Nike collaborated with The Natural Step to help further develop its product innovation and to define a long-term vision that could enhance sustainable products. This collaboration gave rise to North Star brand of Nike thereby positioning Nike as a leader in sustainable products that could navigate all through towards a sustainable future. After the success of Nike brand, the company was publicly listed, and by that time, the company had acquired about 50% of the US shoe market. Interestingly, by the year 1982, nearly all world record were being set by those athletes wearing Nike branded sportswear. This enabled Nike to gain dominance as a leading athletic apparel and shoes manufacturers. Mostly, sports footwear and apparel production are hardly managed by brand owners. Basically, branding work is contracted to other factories. Unfortunately, in early 1990s, the apparel industry was hit by workers unrest, as it became clear that most of these companies were not observing the human rights. In this regard, Nike drew intense criticism for contracting branding companies which allegedly violated overtime and minimum wage provisions. However, as a dominant player in this market and one of the most visible brands across the world, such revelations brought Nike into the center of unprecedented controversy. Geissler (2001) went ahead to explain the grounds on which several activists were directing much of their efforts towards Nike. Further, the author suggested that if Nike undertakes reforms, such reforms will trumpet across the industry forcing other manufacturers to follow suit. This controversy of 1990 made Nike’s board of management re-examine the organization standards of operation. Nike prepared its first code of conduct that encouraged consumer relation management and were all distributed to factories. Interestingly, this was the in the sporting apparel industry. To encourage positive customer relationship, all Nike’s branding companies were required to desist from utilizing child labor and to fully comply with local laws on overtime, environmental protection, wages and benefits. As another customer relationship program, Nike publicly released supplier details of its all Nike branded products. Further, in 1993, the Nike Environmental Action Team (NEAT) was constituted to coordinate all environmental functions and staff in the company. To match with other brands such as Reebok and Adidas, NEAT‟s was not only envisaged to come up with solutions to the problems that Nike's production posed to the environment, but also integrate the suggested workable ways into the company's operations. In this regard, many at Nike saw the formation of NEAT division environment conservation as one of their key priorities. CRM Process in Nike In 1998 sale of Nike branded products slipped. Factors such as outdoor styles such as Timberland and “brown shoe” craze for hiking contributed to dip in Nike business. More so, a revitalized competition saw its Nike brand sales in the U.S decline. However, Nike’s biggest obstacle was found to be its incredible success since it may have over swooshed the entire America. Surprisingly, the brand appears to have suffered from severe brand backlash, and the swoosh turned to common rather. According to Cova and Cova (2002), when Tiger Woods appeared in Nike sporting gear, there were numerous Nike logos on his apparel that made him look as if he had been stuck in an embroidering machine. In addition, one Nike executive admitted that, there have been a serious backlash about the number of swooshes. Nevertheless, considering the current average sales of about $9 billion, Nike can be said to have shifted from maverick to mainstream. However, to address such problems, Nike has invested heavily in customer relation management to achieve Nike brand equity and loyalty from its customers (Chaudhuri, 1999). Further, the company is also considering development of new products, innovation, and establishment of sub brands such as the Michael Jordan brand that appears with its “Jumping Man” logo while at the same time deemphasizing the Swoosh. Besides, with positive customer behavior towards Nike brands, the company is also entering new overseas markets aggressively. For instance, in the year 2011, Nike sales in overseas markets increased by 11percent from 38 percent to about 49 percent of total sales. To dominate the global market, Nike has dominated soccer sport, world’s most popular sport as it did in the US. Notably, the multibillion-dollar world football market accounts for 3 percent of its Nike brand sales. Currently, stand as one of Nike’s top priorities. Traditionally, world soccer has ever been dominated by Adidas that claimed more than 80 percent global market share in production of soccer branded sporting gears. To gain market share, Nike resolved to apply the philosophy that it has attached to other leading products and influence customers’ behavior by giving the athletes what they want (Christopher, Payne and Ballantyne, 1991). Unlike adida’s, Nike does not enjoy such a brand popularity, but it has a vision which will enable them succeed in the new millennium competitor that Adidas will reckon. Many people hope that Nike’s slump, but fail to understand Nike’s marketing prowess. According to Bitner, Booms and Mohr (1994), Fila’s advertising vice-president lamented that Nike remains a formidable force in the sporting industry and no matter how well the competition executes their strategies, their voices will never be as loud as that of Nike. Similarly, the president of Puma North acknowledges Nike’s tactics of building formidable customer relationship as a superb marketing approach. Nonetheless, to remain on top, Nike will have to deliver innovative and quality brand that will influence the customer behavior. Nike United States focus on excellence in customer service In the American market, there are only two types of brands: product and consumer-focused brands. The rules guiding on how to work around each brand extend to messaging, new channel selection, product development, product benefits and features and are quite different based on marketing choice or product development. The biggest question that arises is whether these branded companies should focus on the product or consumer the product? In this vein, having a clear understanding of customer needs will assist Nike to focus on new market opportunities that drives its revenue growth and innovation. Basically, the underlying marketing approach is that of first understanding the human needs. According to Aaker (1996), human needs are basically states of felt deprivation. Based on this, customer logic is achieved by evaluating the company based on customer benefits, customer needs and product features. For branded athletic sportswear, Nike had to understand the diverse customer needs from a global level perspective. However, with such sportswear being sold in many countries, different consumers have varied needs as the product is viewed differently. Based on this ground, to determine the demographic profile, Nike performs its market research from a global point of view. In American market, Air Jordan basketball branded Nike shoes are re-known for their performance characteristic and their association with famous star of that sport, Michael Jordan (Galbreath and Rogers, 1999). However, despite the existence of such awareness of basketball, such technical aspects and identification of this brand of the shoe is non-existent. Surprisingly, the Europeans are widely known for their affiliation to western culture and associate with fashion familiar to them. On this note, the marketing strategy to apply in different markets is considered a key success factor for the overall company success. The popularly known rivals for Nike have been Reebok and Adidas. Their brands are equal to Nike and are only differentiated by virtue of marketing and creating well designed athletics and non-athletic apparels and footwear. Nike has managed to establish and distinguish its brand by putting in place strong customer relationship and improving customer awareness and brand identity. In the year 2006, its two main rivals merged in an effort to consolidate their market share to 22% as Nike had 36%. Based on this, Nike developed a different strategy to keep pace with its rivals. Notably, they coupled sporting icons such as Michal Jordan and also they resolved to use Tiger Woods to introduce its new golf sporting gears. Moreover, the intense use of motivational slogan "Just Do It" that encourages athletes by emphasizing on body fitness, competition, and sportsmanship, enabled the company to maintain good customer relationship to achieve brand equity. However, the advantage that Nike enjoys is of their competitors' inability to copy its quality products (Russell, 2001). Nonetheless, the company continues to introduce new brands, which help them to maintain a lead while at the same time giving positive customer relationship. Nike’s promotion mainly concentrates on finding accessible store locations. To attract many customers, the company engages in strategic alliances advertises and advertises its product brands in the newspaper (Ramaswamy, 2008). More importantly, Nike has a number of popularly re-known athletes who act as brand ambassadors by representing positive customer relationships in eyes of the public. Brand loyalty, customer awareness and brand equity are associated to a product price; therefore, the relationship between product quality, price and brand equity has to be maintained consistent. On this front, the Nike name, trademarks swoosh, and the Nike's brand images make Nike one of the widely recognized brands across the world. Undeniably, Nike's brand superiority is the reason behind its high revenues. Nike's good public relations, quality products, loyal superb marketing skills and strong customer base all contribute to the company’s success. Knight managed to offer Nike’s customers a good personal experience through offering sponsorship to local sporting events which makes them feel how valuable they are. Luckily, this showed to the customers how Nike is committed to them. More importantly, Nike further tries to extend its good customer relationship by engaging in philanthropic causes and by sponsoring sporting events that are totally unrelated to the company. However, to achieve such a milestone, Nike tries to understand its customers' needs by utilizing customer’s information that helps in inviting clients to desired events, sending personalized mails, or even let them know of any new product in the market. According to Bernd (2006), corporate social responsibility is defined as the organization’s commitment to engage in community welfare by practicing discretionary business practices through the use of corporate resources. In this regard, corporate social responsibility concerns proper environmental maintenance, respect for people, commitment to ethical behavior, and good concern for the entire society. On this ground, the advantages of a socially responsible firm include: enhanced brand and company image, easiness in attracting and retaining employees, lower operation costs, increased market share and ease of attracting more investments. Basically, a firm that is socially responsible cares for its employees, customers, suppliers and the entire society. According to Campbell (2003), Phil Knight, owner of the Nike Company is more concerned about the corporate image after Nike suffered a backlash by using offshore subcontractors with extremely poor working conditions and very little wages. Notably, many customers demanded respect and accountability by engaging its product boycotts and also complained through letter-writing. Nike ultimately followed such customers by changing its business practices. This was after understanding that corporate image and product attributes that drives consumer willingness to purchase its product brands was actually falling into the negative (Madhoushi, Saghari, & Madhoushi, 2011). Since then, Nike developed Corporate Social Responsibility Policy that requires the company to release a CSR report annually in order to tackle such issues of client’s interest. A Consumer-Focused Brand According to Chen (2001), customer-focused brand helps in identifying the type of product user in order to deliver products that meet such user’s needs. The figure below how such user needs are identified: A picture showing Nike delivers multiples In regard to Nike, much attention is given to the Athlete by delivering not only shoes, but also other surrounding products that an Athlete requires for sporting. For example, in basketball Nike mostly produces shoes, shorts, the warm-ups, headband, jersey, athletic bag, water bottle, , towel, and balls. However, the only things they do not produce are the basketball playing ground, but in most cases sponsor it. Nevertheless, producing and selling all these basketball products makes Nike one of the popular consumer-focused brands. Interestingly, they started as a shoe manufacturing company, and have now turned into athletics Products Company of choice. To reach this far, they have multiple product lines and uses multiple technologies that have turned the idea of world class apparel and footwear a reality. Nike Brand Equity Since its inception, primarily Nike has been in the business of developing, designing, and marketing athletic apparel, footwear, accessories and other sporting equipments. Compared to other players in the industry, Nike Corporation is a well managed. It has a strong brand image, and also it continues to effectively capture the brand value shape (Leuthesser, 1988). To be a notch higher in today’s modern world, apparel manufacturing companies needs to be efficient and to embrace latest technologies in production of different product brands. Based on this, Nike is dependent has embraced modern technology in their effort to keep ahead of their competition. As such, the modern advanced technologies include the use of computers to develop and design products. In addition, Nike has а highly developed Web site that is key for its sales and marketing purposes. Primarily, Nike competes in the footwear industry. However, the major competitors include Adidas and Reebok though there is some other companies that stiff offers competition in this industry (Light, 1997). Notably, competition within this industry remains stiff and is highly dynamic due to varying customer preferences and superior technology. Pictures of sportsmen sponsored by Nike Analysis and Findings As pointed out, the purpose of this study was to under-stand the role of customer relationship management and consumer behavior in acquiring brand equity and loyalty. Notably, people could be willing to buy Nike’s branded products at a higher rate than normal, since they are not purchasing shoes or apparel, but instead are purchasing based on emotions, experiences, styles and trends (Larson, 2011). The brand equity is derived from culmination of several factors that influences consumers. Simply, Nike’s could cost a bit higher due to the value that the customer attaches to the brand. However, Nike’s prices tend to be high due to the large amount of investments in regard to sponsorship, testimonials, websites and advertisement campaigns (Injazz, & Popvich, 2003). Such investments position Nike uniquely in the minds of its customer. Further, such a unique brand positioning enhances the company reputation hence the quality of its products. Latest research works emphasizes on the concept of love mark. According to Hadzagas (2011), love mark is a concept that goes beyond the brand. With the advent of modern technology, the market is becoming highly competitive and with internet, the world has become a global village. Many companies are modeling their business strategies into one marketing direction thus considering each customer is unique. The destiny of Nike is not based on the fact that they have become globally competitive and successful, but they must also work to conquer the virtual world. In this regard, Nike has to keep evolving its brands into something whose absence cannot even be imagined. Limitations and future research The main limitation of this study is that it suffers the shortcomings of actual information necessary to explore the existing relationship between different constructs influencing customers’ behavior. However, the study overlooked some factors such as customers purchase intention, product choice and brand image. Another limitation is that the personality characteristics used in this study are too general to give a clear description of consumer behavior. Therefore, further research becomes necessary to gain more knowledge in respect to these constructs. Conclusion The purchasing process is influenced by a number of factors making it absolutely difficult to understand the role of brand in this process. However, we can affirm that positive customer relationship and behavior plays a greater role in enhancing not only brand equity, but also loyalty. Presently there is increased research in branding. In this paper, it is noted that development of consumer based brand equity is one of the key considerations in CRM as it increases brand equity and loyalty for branded sporting gear. Many researches indicate the need to gather sufficient information concerning the consumer as it is increasingly becoming important for sport marketers to understand the preferences, attitudes and behaviors of their potential clients. Nonetheless, the present research suggests that sport s apparel and footwear marketers should note the following; that branded interactive websites could be utilized in enhancing customer relationships hence pulling the customers closer to the company’s branded products. Further, by enhancing customer brand identification, chances of increasing the brand image becomes high hence an increase in merchandise sale. References Aaker, D.A. (1996). Measuring Brand Equity across Products and Markets. California Management Review, 38(3), 102-20. Allaway, A. W., Huddleston, P., Whipple, J., & Ellinger, A. E. (2011). Customer-based brand equity, equity drivers, and customer loyalty in the supermarket industry. The Journal of Product and Brand Management, 20(3), 190-204. doi:http://dx.doi.org/10.1108/10610421111134923 Bernd, H. (2006). Are brands forever? How brand knowledge and relationships affect current and future purchases. Journal of Product and Brand Management. 15(2): 98-105. 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The ISM Journal of International Business, 1(3), 14-1D,2D,3D,4D,5D,6D,7D,8D,9D,10D,11D,12D,13D,14D. Retrieved from http://search.proquest.com/docview/921620384?accountid=45049 Leuthesser, L. (1988), "Defining, measuring and managing brand equity: A conference summary, " Cambridge, MA: Marketing Science Institute. Light, L. (1997). Brand loyalty management: The basis for enduring profitable growth. Direct Marketing, 59(11), 36-43. Retrieved from http://search.proquest.com/docview/212806474?accountid=45049 Madhoushi, M., Saghari, F., & Madhoushi, Z. (2011). Survey of Customer Knowledge Management Impact on Customer Relationship Management: (Iranian study). International Journal Of Business & Social Science, 2(20), 215-226. Ramaswamy, V. (2008). Co-creating value through customers' experiences: The nike case. Strategy & Leadership, 36(5), 9-14. doi:http://dx.doi.org/10.1108/10878570810902068 Russell, S. W. (2001). A framework for customer relationship management. 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Sports Equipment Company Strategic Analysis

The paper "Sports Equipment company Strategic Analysis" is focused on Nike Inc founded in 1962 by two partners Bowerman and Knight.... The company's name was changed to Nike Inc in 1978; it is derived from the Greek goddess of victory's name.... The 'swoosh' logo and the slogan 'Just do it' have become recognizable everywhere due to the company's worldwide presence and quality goods.... hil Knight was responsible for entering into their first ever agreement with a Japanese manufacturing company named Onitsuka Tiger company....
14 Pages (3500 words) Assignment

Sports Sponsorship Issues

In Spain, for example, the industry accounts for 1.... Running Head: sports Sponsorship sports Sponsorship Name: Course Instructor: Course Name: Date: Introduction In recent times, there has been an increase in the need for sponsorship in both sports and recreation.... The funding for the sports has not been confined only at the elite level but has also been at the grass-root.... The growth in the sports sponsorship sector has been accompanied by the need for its better understanding with the view of maximizing its potential....
6 Pages (1500 words) Term Paper

CONTEMPORARY BRAND MANAGEMENT

It was his name that constituted the title of the company.... The company's brand portfolio comprises three major brands including: Adidas, Reebok and TaylorMade.... The company's key competitors include Nike and PUMA.... Brand architecture strategy refers to the structure employed in organizing a company's portfolio.... It identifies the number and functions of brand names which the company utilises for its product range and also the target markets or target groups....
14 Pages (3500 words) Assignment

Adidas Market Position Analysis

he paper will start by exploring historical events that have shaped strategy in the company,major acquisitions and changes in market strategy.... The paper will start by exploring historical events that have shaped strategy in the company, major acquisitions, new product developments and changes in market strategy.... The paper will then focus on the SWOT analysis and highlight the strengths, weaknesses, opportunities and threats that face the company....
8 Pages (2000 words) Case Study

The Crown Sports Company

The crown company is well known for their health services like gymnasiums, swimming pools and their environment areas crown sports plc was formed with the merging of the golf club holdings a famous golf course operating company in U.... The company has nearly 50,000 club members with 22 mid sized health and fitness clubs across England on a whole all over U.... The crown company is well known for their health services like gymnasiums, swimming pools and their environment areas crown sports plc was formed with the merging of the golf club holdings a famous golf course operating company in U....
6 Pages (1500 words) Essay

Starting a High-End Female Sports Underwear in the UK Market

This group is an opportunity for the company, as it provides it with an opportunity to tailor its products, and offer wool underwear in line with sports underwear.... By entering the market as an untraditional retailer, the company will build a strong brand and manage to enter the UK market successfully.... An agent will be highly suitable, as this will offer the high-end female sport underwear company with sufficient information about the market....
20 Pages (5000 words) Essay

English Sportswear Companies Cash in on Brands

The company may also take advantage of the brand to allow the customers to pay high prices so that they receive the goods and services.... The company owns a sporting cloth line of high rankings and of high and competitive buying prices.... In every part of the world consumers always, tend to choose different services and sports wears, without knowing much about that sportswear's specification and the proper pricing.... The author of this coursework "English Sportswear Companies Cash in on Brands" describes the sense of the impact of brand endurance on European sportswear associations, advantages of brand and brand tendency....
10 Pages (2500 words) Coursework

Investigation of Footwear Industry: Nike Incorporated's Strategic Decision Making

This report "Investigation of Footwear Industry: Nike Incorporated's Strategic Decision Making" is about embracing changes in technology, that changes in consumer taste, globalization among other developments in the market have not prevented the company from posting impressive financial reports.... As of 2008, the company recorded revenues of $4.... Business analysts have used the company as a benchmark for marketers most notably through the 'Just Do It' campaign that commenced in the 1980s....
9 Pages (2250 words) Report
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