Nike Marketing Strategies and Current Company Status

Who would imbibe imagined it? After years on top, Nike suddenly looks like a world-class marathoner who, in midrace, questions whether hes got what it takes to keep on running. Nikes symptoms of hurt: a global sate of shoes, flat sales in key markets, and declining profits. Moreover, the global flaw champ that captured its give birth pleasing corporate mindset with the upright do it ad catchword has a new pitch, I can--to which investors seem to be retorting, No, you cant. Losing faith, they have knocked Nike stock from its all-time high of $76 roughly a year agone to a recent $46.\n\nWhat happened? date Nike has tripped on fickle way trends and heightened competition before, its main bar today appears to be its own success. Heres why:\n\nBIG-BRAND BACKLASH. When he founded Nike in 1972, CEO Phil Knight contended that if vanadium cool guys--the best and some popular athletes--wore his shoes, other(a) deal would want to as well. The dodging worked wonderfully, of course , and now Nike controls an astounding 47% of the U.S. athletic-shoe market. But the brand has work too common to be cool. I call it the Izod syndrome, narrates hind end Horan, publisher of Sporting Goods Intelligence, referring to the once-hip golf shirt. Nike is everywhere. Brand expert Watts Wacker, hot seat of the consulting firm FirstMatter, believes that the ubiquity of the Nike logo--the over-Swooshing of America--turns despatch important core consumers, the 12- to 24-year-olds. When I was growing 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, many cool-conscious youngsters have gravitated to other brands such as Adidas (which sells sneakers at lower prices) and Timberland (a attracter in the outdoorsy cook shoe trend). Instead of responding with hotter products or lower prices, Nike did what many cocksure giants do (think Marlboro, pre-Marlb oro Friday): It raised its prices forwards of inflation. Retailers loaded up, but the products werent needfully 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 exist years models (except the irrepressible Air Jordan line).\n\nTHE (ASIAN) ECONOMY, STUPID. Nikes armory glut is messiest in Asia, for the most part because the company operates few take stores there. (In the U.S., Nike sells almost half of its remnant shoes...If you want to get a full essay, order it on our website:

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