Nike Marketing Strategies and Current Company Status

Who would grant imagined it? aft(prenominal) years on top, Nike absolutely looks like a frontmost marathoner who, in midrace, questions whether hes got what it takes to concur on running. Nikes symptoms of distress: a global englut of habilitates, flavorless sales in secernate markets, and declining profits. Moreover, the global brand jaw that captured its own winning bodily mindset with the Just do it ad slogan has a new pitch, I pot--to which investors seem to be retorting, No, you cant. Losing faith, they have knocked Nike stock from its all-time mettlesome of $76 about a year ago to a recent $46.\n\nWhat happened? While Nike has tripped on fickle fashion trends and heightened ambition before, its main obstacle like a shot appears to be its own success. Heres wherefore:\n\nBIG-BRAND BACKLASH. When he founded Nike in 1972, chief executive officer Phil Knight contended that if five coolheaded guys--the best and most best-selling(predicate) athletes--wore his shoes , other people would penury to as well. The strategy worked wonder bounteousy, of course, and straightaway Nike controls an astounding 47% of the U.S. athletic-shoe market. moreover the brand has become withal common to be cool. I call it the Izod syndrome, says John Horan, newspaper of Sporting Goods Intelligence, referring to the once-hip golf shirt. Nike is everywhere. shuffle expert Watts Wacker, chairman of the consulting menage FirstMatter, believes that the ubiquity of the Nike logo--the over-Swooshing of America--turns off master(prenominal) core consumers, the 12- to 24-year-olds. When I was increment up, we used to say that root for the Yankees is like grow for U.S. Steel, Wacker says. Today, rooting for Nike is like rooting for Microsoft.\n\nTHE MARLBORO MISTAKE. Indeed, umpteen cool-conscious youngsters have gravitated to other brands much(prenominal) as Adidas (which sells sneakers at inflict wrongs) and Timberland (a leader in the outdoorsy brown shoe tren d). Instead of responding with hotter products or refuse prices, Nike did what many overconfident giants do (think Marlboro, pre-Marlboro Friday): It raised its prices ahead of inflation. Retailers steamed up, but the products werent necessarily arrive at consumers closets, says Josie Esquivel, who follows Nike for Morgan Stanley Dean Witter. Now, Nike is paying with price cuts--in the 50% range--on last years models (except the unruly Air Jordan line).\n\nTHE (ASIAN) ECONOMY, STUPID. Nikes inventory glut is messiest in Asia, largely because the phoner operates few outlet stores there. (In the U.S., Nike sells just about half of its leftover shoes...If you want to get a full essay, order it on our website:

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