Wednesday, February 15, 2017

Nike Marketing Strategies and Current Company Status

Who would hold imagined it? After age on top, Nike suddenly looks ilk a world-class road runner who, in midrace, questions whether hes got what it takes to keep on running. Nikes symptoms of distress: a planetary glut of shoes, flat sales in key markets, and declining profits. Moreover, the planetary bulls eye champ that captured its aver winning corporate wit with the Just do it ad slogan has a un utilise pitch, I can--to which investors see to be retorting, No, you cant. Losing faith, they have knocked Nike logical argument from its all-time high of $76 about a grade ago to a recent $46.\n\nWhat happened? While Nike has tripped on fickle fashion trends and heightened competition before, its master(prenominal) obstacle today appears to be its own success. Heres why:\n\nBIG-BRAND BACKLASH. When he founded Nike in 1972, CEO Phil nickname contended that if five cool guys--the better(p) and most popular athletes--wore his shoes, separate people would want to as well. The strategy worked wonderfully, of course, and now Nike controls an astound 47% of the U.S. athletic-shoe market. But the brand has become too cat valium to be cool. I handle it the Izod syndrome, says John Horan, publisher of jazzy Goods Intelligence, referring to the once-hip golf shirt. Nike is everywhere. Brand good Watts Wacker, chairman of the consulting firm FirstMatter, believes that the omnipresence of the Nike logo--the over-Swooshing of America--turns off important lens nucleus consumers, the 12- to 24-year-olds. When I was growing up, we used to say that rooting for the Yankees is give care rooting for U.S. Steel, Wacker says. Today, rooting for Nike is wish well rooting for Microsoft.\n\nTHE MARLBORO MISTAKE. Indeed, many a(prenominal) cool-conscious youngsters have gravitated to other brands such as Adidas (which sells sneakers at lower prices) and lumber (a leader in the outdoor(prenominal) brown shoe trend). quite of responding with hotter products or lo wer prices, Nike did what many overconfident giants do (think Marlboro, pre-Marlboro Friday): It raise its prices ahead of inflation. Retailers loaded up, still the products werent necessarily reaching 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 irrepressible rail line Jordan line).\n\nTHE (ASIAN) ECONOMY, STUPID. Nikes inventory glut is messiest in Asia, largely because the company operates hardly a(prenominal) outlet stores there. (In the U.S., Nike sells almost half of its leftover shoes...If you want to sit a full essay, severalise it on our website:

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