Page 52 - Marketing Management

DEFINING MARKETING FOR THE 21ST CENTURY | CHAPTER 1 29

Marketing Excellence Europe from a sneaker company into a brand that repre-
sented emotion, allegiance, and identification. It also
>>Nike helped launch Nike into other international markets over
the next decade, and by 2003, overseas revenues sur-
passed U.S. revenues for the first time.
In 2007, Nike acquired Umbro, a British maker of
soccer-related footwear, apparel, and equipment. The ac-
quisition helped boost Nike’s presence in soccer as the
company became the sole supplier of uniforms to over
100 professional soccer teams around the world.
Nike focused its efforts on international markets, es-
pecially China, during the 2008 Summer Olympics in
Beijing. Although Nike’s rival, Adidas, was the official
sponsor of the Olympic Games, Nike received special
permission from the International Olympic Committee to
run Nike ads featuring Olympic athletes during the games.
In addition, Nike sponsored several teams and athletes,
Nike hit the ground run- including most of the Chinese teams and 11 of the 12
ning in 1962. Originally known as Blue Ribbon Sports, high-profile members on the United States men’s basket-
the company focused on providing high-quality running ball teams. That year, sales in the Asian region grew
shoes designed for athletes by athletes. Founder Philip 15 percent to $3.3 billion and Nike’s international divisions
Knight believed high-tech shoes for runners could be manu- grew to 53 percent of the company’s revenue. Some be-
factured at competitive prices if imported from abroad. Nike’s lieved Nike’s marketing strategy during the Olympics was
commitment to designing innovative footwear for serious ath- more effective than Adidas’s Olympic sponsorship.
letes helped it build a cult following among U.S. consumers. In addition to expanding the brand overseas, Nike
Nike believed in a “pyramid of influence” in which the successfully entered new athletic footwear, apparel, and
preferences of a small percentage of top athletes influenced equipment product categories by using endorsements
the product and brand choices of others. From the start its from high-profile athletes and consumer outreach pro-
marketing campaigns featured accomplished athletes. grams. The Nike Golf brand, endorsed by Tiger Woods,
Runner Steve Prefontaine, the first spokesperson, had an ir- has changed the way professional golfers dress. Tiger’s
reverent attitude that matched the company’s spirit. powerful influence on the game and his Nike emblazoned
In 1985, Nike signed up then-rookie guard Michael style have turned the greens at the majors into “golf’s
Jordan as a spokesperson. Jordan was still an up-and- fashion runway.” In addition, Nike has used the superstar
comer, but he personified superior performance. Nike’s to help build its relationship with consumers. In 2009, it
bet paid off—the Air Jordan line of basketball shoes flew launched a Tiger Web Talkback session at nikegolf.com,
off the shelves and revenues hit over $100 million in the where fans could ask questions and hear Tiger talk about
first year alone. As one reporter stated, “Few marketers golf. The session was part of a nationwide Nike Golf con-
have so reliably been able to identify and sign athletes sumer experience day, which included equipment demos,
who transcend their sports to such great effect.” long-drive contests, and in-store specials.
In 1988, Nike aired the first ads in its $20 million “Just Do In tennis, Nike has aligned with Maria Sharapova,
It” ad campaign. The campaign, which ultimately featured 12 Roger Federer, and Rafael Nadal to push its line of tennis
TV spots in all, subtly challenged a generation of athletic en- clothing and gear. Some called the famous 2008
thusiasts to chase their goals. It was a natural manifestation Wimbledon match between Roger Federer and Rafael
of Nike’s attitude of self-empowerment through sports. Nadal—both dressed in swooshes from head to toe—a
As Nike began expanding overseas to Europe, it five-hour Nike commercial valued at $10.6 million.
found that its U.S.-style ads were seen as too aggressive. Nike teamed up with seven-time Tour de France cham-
Nike realized it had to “authenticate” its brand in Europe, pion Lance Armstrong not only to sell Nike products but also
so it focused on soccer (known as football outside the to help Armstrong’s LIVESTRONG campaign. Nike designed,
United States) and became active as a sponsor of youth manufactured, and sold over 70 million yellow LIVESTRONG
leagues, local clubs, and national teams. However, for bracelets, netting $80 million for the Lance Armstrong
Nike to build authenticity among the soccer audience, Foundation. It also featured Armstrong’s message of survival,
consumers had to see professional athletes using its willpower, and giving in a series of Nike commercials.
product, especially athletes who won. Nike’s big break To promote its line of basketball shoes and apparel, Nike
came in 1994 when the Brazilian team (the only national continues to feature basketball superstars such as Kobe
team for which Nike had any real sponsorship) won the Bryant and LeBron James. In addition, it formed a partner-
World Cup. That victory transformed Nike’s image in ship with Foot Locker to create a new chain of stores, House