Why is Nike so Popular? How Nike become the shoe industry Leader.
Can you imagine Nike was once a Startup? A guy in his mid 20s importing cheap running shoes from Japan and trying to sell these shoes from track to track.
Backstory: So how was Nike formed?
After Graduation in 1962, Phil Knight decided to take a world tour and explore as he was not sure what he wanted to do in life. When he visited japan he came across a shoe brand Ontisuka tiger running shoes. Phil was quite impressed with the quality and cost of the shoes. He contacted the brand and arranged to get the distribution of the running shoes to United States. Phil then went to Portland and signed a partnership with his former coach, Bill Bowerman and start his own company ‘Blue Ribbon Sports’ was formed which was later changed to Nike in 1971, named after a Greek Goddess of Victory.
Now, let us see how NIKE Become the Leader in their Market:-
1. Marketing — No company in the world spends as much money on sports sponsorships like Nike. Nike spends over $3 Billion in Advertising every year.
Nike promotes its products with collaborating with Celebrities and Social media influencers. Some of Nike’s Sponsorships are :
Golf — Tiger Woods
Basketball — Michael Jordan, Lebron James, and Kobe Bryant
Baseball — Albert Pujols and Joe Mauer
Hockey — Alex Ovechkin
Soccer — Ronaldinho and Cristiano Ronaldo
Tennis — Roger Federer and Serena Williams
Football — Peyton Manning, Drew Brees, Eli Manning, and Joe Flacco
2. Nike Focuses on Selling the “Emotional Benefits” of its Product :
Nike sells a lifestyle, it taps into an emotional part of the consumer that wants to aspire to live healthier and to find their own “greatness”. It is noted that Bill Bowerman did not sell his shoes with his marketing strategy, but the emotional benefits of feeling good about jogging and healthy living.
3. Nike Embraces New Technologies :-
Nike is constantly being innovative with the development of their shoes. They have done things to make the shoe lighter and sturdier such as Flyknit. They also have developed a shoe called Nike Air Vapormax that has eliminated foam and has replaced it with airbags.
4. Great Variety:-
Nike has a variety of options for products, but Nike also owns Hurley, Converse, and Jordan. By offering more products to more people, in more markets than any other sports company, they are able to capture a far greater market share.
According to a report by Business Insider Nike and Jordan holds 62% of the US brand share, more than 4 times the other brands combined value.
Some of the Greatest Collaborations which made NIKE really popular:
I hope you have learned and understood the power of Marketing. If you would like to discuss more about Nike feel free to drop me a message :)
