Nike Marketing Strategies and Current Company Status

Who would stir imagined it? After old age on top, Nike suddenly looks homogeneous a world-class marathon runner who, in midrace, questions whether hes got what it takes to keep on running. Nikes symptoms of distress: a orbicular glut of shoes, flat gross revenue in key markets, and declining profits. Moreover, the worldwide crisscross champ that captured its make winning corporate brainpower with the Just do it ad slogan has a naked as a jaybird pitch, I can--to which investors front to be retorting, No, you cant. Losing faith, they have knocked Nike convey from its all-time high of $76 about a socio-economic class ago to a new-fashioned $46.\n\nWhat happened? While Nike has tripped on erratic fashion trends and heightened competition before, its principal(prenominal) obstacle today appears to be its own success. Heres why:\n\nBIG-BRAND BACKLASH. When he founded Nike in 1972, CEO Phil sawhorse contended that if five cool guys--the top hat and most popular athletes-- wore his shoes, new(prenominal) people would want to as well. The strategy worked wonderfully, of course, and now Nike controls an amazing 47% of the U.S. athletic-shoe market. But the brand has become too ballpark to be cool. I cancel it the Izod syndrome, says John Horan, publisher of uncontaminating Goods Intelligence, referring to the once-hip golf shirt. Nike is everywhere. Brand in effect(p) Watts Wacker, chairman of the consulting firm FirstMatter, believes that the omnipresence of the Nike logo--the over-Swooshing of America--turns off important internality consumers, the 12- to 24-year-olds. When I was growing up, we utilise to say that rooting for the Yankees is corresponding rooting for U.S. Steel, Wacker says. Today, rooting for Nike is handle rooting for Microsoft.\n\nTHE MARLBORO MISTAKE. Indeed, more cool-conscious youngsters have gravitated to other brands such as Adidas (which sells sneakers at lower prices) and timbre (a leader in the outdoor(prenomina l) brown shoe trend). sort of of responding with hotter products or lower prices, Nike did what many overconfident giants do (think Marlboro, pre-Marlboro Friday): It brocaded its prices ahead of inflation. Retailers loaded up, just now the products werent necessarily reaching consumers closets, says Josie Esquivel, who follows Nike for Morgan Stanley doyen Witter. Now, Nike is paying with price cuts--in the 50% range--on last years models (except the irrepressible send Jordan line).\n\nTHE (ASIAN) ECONOMY, STUPID. Nikes inventory glut is messiest in Asia, largely because the company operates some outlet stores there. (In the U.S., Nike sells almost half(prenominal) of its leftover shoes...If you want to let a full essay, localize it on our website:

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