Nike Marketing Strategies and Current Company Status

Who would confirm imagined it? After geezerhood on top, Nike suddenly looks deal a world-class long-distance runner who, in midrace, questions whether hes got what it takes to keep on running. Nikes symptoms of distress: a world-wide glut of shoes, flat gross sales in key markets, and declining profits. Moreover, the planetary differentiate champ that captured its suffer winning corporate wit with the Just do it ad slogan has a hot pitch, I can--to which investors be to be retorting, No, you cant. Losing faith, they have knocked Nike armory from its all-time high of $76 about a division ago to a upstart $46.\n\nWhat happened? While Nike has tripped on explosive fashion trends and heightened competition before, its of import 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 vanquish and most popular athletes--wore his shoes, different people would wan t to as well. The strategy worked wonderfully, of course, and now Nike controls an astonish 47% of the U.S. athletic-shoe market. But the brand has become too special K to be cool. I call up it the Izod syndrome, says John Horan, publisher of clear Goods Intelligence, referring to the once-hip golf shirt. Nike is everywhere. Brand apt 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 utilize to say that rooting for the Yankees is same(p) rooting for U.S. Steel, Wacker says. Today, rooting for Nike is care rooting for Microsoft.\n\nTHE MARLBORO MISTAKE. Indeed, many an(prenominal) cool-conscious youngsters have gravitated to other brands such as Adidas (which sells sneakers at lower prices) and forest (a leader in the outdoor(prenominal) brown shoe trend). rather of responding with hotter p roducts or lower prices, Nike did what many overconfident giants do (think Marlboro, pre-Marlboro Friday): It raised its prices ahead of inflation. Retailers loaded up, solely 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 appearance Jordan line).\n\nTHE (ASIAN) ECONOMY, STUPID. Nikes inventory glut is messiest in Asia, largely because the company operates a couple of(prenominal) outlet stores there. (In the U.S., Nike sells almost half(prenominal) of its leftover shoes...If you want to sterilise a full essay, assign it on our website:

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