Introduction
Across the globe, Nike is well known for its sponsorship programs that majorly target clubs and leagues in different countries. Besides sponsoring teams, the marketer further supports individuals participating in various events. Therefore, the firm is well known for its approach to funding sports events.
For instance, the business organization finances Nigeria, the United States, South Korea, and Brazil soccer teams. In addition, the marketer has dealt with football clubs, including Chelsea, Barcelona, Inter Millan, and many other clubs in the European leagues (Ahmadi Bonabi & Javani, 2021). Nike’s approach to providing sponsorship programs is practical and reaches a significant audience.
Background of Nike Company
Nike Company is a multinational corporation based in the United States, Oregon. The business organization was founded in 1964 and named Blue Ribbon Sports. The firm became officially known as Nike Inc. in the year 1971. The company’s production practices include designing, developing, and manufacturing apparel, accessories, footwear, and equipment. Nike is the largest manufacturer of athletic shoes and other sports-related items globally.
Products
The company produces various products promoting athletes’ fitness, regardless of age and gender. Nike’s products include apparel, shoes, and equipment for soccer, tennis, basketball, marathons, and other sports events. In the market, Nike offers different brands for its customers to give them a variety of commodities to choose from, depending on their preferences.
Nike’s most renowned shoe lines are Air Max, Nike Dunk, Flyknit, Air Jordan, Zoom, and React (Djohannes, 2022). Each item mentioned has unique features that make it suitable for usage. Apart from the shoe products, the company manufactures apparel such as shorts, pants, jackets, and shirts for games. Therefore, it can be noted that Nike mainly focuses on producing excellent sports accessories to suit the needs of athletes worldwide.
Target Market
Nike Company has a significant target market based on its product line and operation region. Its main target is clients who are sports-oriented and prefer an active lifestyle. When marketing, Nike usually promotes its items to people of all ages and genders. For instance, the firm’s products include children and adults and are fashionable to meet the needs of each potential buyer. Nike’s commodities are sold in several countries across the world. With the emergence of e-commerce, the enterprise has established a significant online presence, and most of its products are available on Amazon platforms. In addition, Nike is focused on emerging markets, especially in Asia.
Nike’s Past and Current Marketing Efforts
Nike has remained influential in the sports and athletic apparel sector following its various campaign efforts. In the past, the company relied significantly on the “Just Do It” promotion to inspire athletes and people concerned with fitness issues to continue working hard (Intravia et al., 2020). Following its successful impact, the campaign strategy is still recognizable in its marketing history as one of Nike’s practical marketing approaches.
Nike’s marketing focus is on the sponsorship of various teams and athletes globally. The approach has enabled the company to enhance its brand awareness in different countries (Taskar & Paradkar, 2020). The move to major in sports indicates Nike’s commitment to aspects of fitness and sports in general. In addition, the business organization has created significant social media platforms through various social platforms, including Twitter, Meta, and Instagram. The marketing approach has facilitated its ability to promote and connect with potential clients.
Nike’s Sponsor/Sports Property Relationship
The sponsorship program offered by Nike is a crucial marketing strategy that the company utilizes to attract fans to the sponsored events. Nike’s sponsor/sports property relationship encompasses different activities (Bhaisare, 2021). For instance, the company provides custom uniforms for various teams and sporting clubs. Through the process, Nike can advertise and showcase its brands to sports fans across the globe. In other words, by issuing the teams with sporting apparel, the firm is increasing its image in the market, enhancing its overall awareness in the industry. The connection allows the firm to reinforce its overall position in the apparel and sports sector.
Examples of Ads, Promotions or Products that Capitalized from the Relationship
Nike has enjoyed the sponsorship relationship in promoting its products in the industry. Usually, the business organization features its logo on the custom uniforms of the respective teams or athletes. The approach allows the clubs to display the firm’s product, especially to their fans. Furthermore, based on sales promotion, Nike manufactures footwear for special editions to commemorate upcoming events. During the production of such shoes, the company typically includes its logo to increase its awareness. Lastly, regarding ads, Nike tends to feature renowned athletes. For example, in its ad “Dream With Us,” the firm incorporated Megan Rapinoe.
Effectiveness of Nike’s Marketing Efforts
Over the years, Nike has consistently used various marketing efforts to create awareness of its product. Its sponsorship approach has proven vital in improving its global image. Even though the technique requires the company to use more funds to undertake the activities, it allows the enterprise to display its products in various parts of the world. Similarly, its online marketing has gained significant attention as most sports usually access internet platforms, which allows them to interact with the company’s products. In general, it can be concluded that the firm’s promotion technique is effective and sustainable.
Nike’s Main Competitors
Several companies offer sponsorship programs in the sports and athletic apparel industry. For instance, Adidas and Puma are some of the renowned firms that have sponsored players and teams in different leagues across the globe. Since the mentioned organizations offer similar products and services as Nike, they are considered vital competitors (Yeo et al., 2020). Based on marketing, Adidas uses celebrity endorsement and sponsorship to advertise its products. Similarly, Puma collaborates with athletes to promote its apparel in the market.
Even though all the firms’ promotions are closely related, there are some significant differences. For instance, based on celebrity endorsement, Nike usually focuses on athletes who portray its core values, such as determination and perseverance. For example, Nike sponsored Carl Lewis, an individual who overcame several barriers in her world of sports (Kim, 2020). On the other hand, Puma and Adidas typically consider lifestyle and fashion when choosing their celebrities.
Expectations for Future Relationships and Recent Trends
Generally, the future of sports property relationships depends significantly on the outcome of sponsored teams. In addition, possible changes in the management and regulation of sporting events in different countries might impact the connection. Recent factors that might affect Nike’s operations include changes in media consumption. For instance, with the increasing number of streaming platforms, traditional traditional broadcasting might be rendered obsolete, which could significantly impact the company’s access to fans. In addition, the rising cases of racism in the sports sector may force the firm to incorporate facets of diversity and inclusion to enable it to remain proactive in the industry.
Future Expectations on Nike’s Operations
Over the years, Nike has displayed an outstanding marketing program that has increased its awareness, especially in the sports and athletic apparel industry. However, following technological advancement, the company will face stiff competition from potential competitors, such as Puma (Yeo et al., 2020). The technical know-how, including artificial intelligence, will make it easier for peers to formulate and develop effective marketing strategies.
Therefore, Nike should invest significantly in technology to remain relevant in the market to improve its innovativeness. Similarly, the firm should continue improving its online presence concerning digital marketing since most consumers have adopted the online shopping habit. The approach will allow the entity to capture a large customer base in the industry.
Summary and Conclusion
Nike Company has remained a dominant sports and athletic apparel marketer. Its promotion strategies, including sponsoring sporting events in different parts of the world, have significantly increased its awareness among club fans. Even though the firm is performing effectively, it faces competition from other peers, including Puma and Adidas. To remain relevant in the future, Nike should consider investing in digital marketing and improving its technology to enhance creativity and innovativeness.
References
Ahmadi Bonabi, S., & Javani, V. (2021). Kit sponsors in the stock market: Nike as kit sponsorship of three football club. Sports Business Journal, 1(2), 13-31. Web.
Bhaisare, G. P. (2021). Intellectual property rights in sports and personality rights among sportspersons. Jus Corpus Law Journal, 2, 351. Web.
Djohannes, D. S. (2022). Purchasing decisions Nike sports shoes in students SMKN 1 Painan viewed from country of origin, brand image and product design. Marketing Management Studies, 2(3), 299-308. Web.
Intravia, J., Piquero, A. R., Leeper Piquero, N., & Byers, B. (2020). Just do it? An examination of race on attitudes associated with Nike’s advertisement featuring Colin Kaepernick. Deviant Behavior, 41(10), 1221-1231. Web.
Kim, M. (2020). How Phil Knight made Nike a leader in the sport industry: Examining the success factors. Sport in Society, 23(9), 1512-1523. Web.
Taskar, A., & Paradkar, S. (2020). Significance of intellectual property in the sports sector. Issue 2 International Journals of Law Management & Humanities., 3, 706. Web.
Yeo, S. F., Chelvarayan, A., Cheah, C. S., Ng, S. M., & Shafee, N. B. (2020). Brand loyalty on sports shoes: A study of Nike. International Journal of Accounting, Finance and Business, 5(30), 42-51. Web.