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Nike Case Study

Nike's brand image is viewed as one of the most recognizable around the world as well as a symbol of high quality and style. Starting from the 1970s, Nike's worldwide popularity has been growing, and by the early 1980s it surpassed Adidas sales (Keller & Sichol 2015). Since that time, Nike's main goal in establishing the brand was to sponsor the world's most popular athletes, who advertised it by wearing the footwear and clothes of the label (Keller & Sichol 2015). As the 1980s' most popular sports were “soccer, track and field, tennis, and rugby”, the company started to manufacture particular sports products to enter the market. The biggest problem of that time was competition with Adidas in Europe (Keller & Sichol 2015).

 

The strategy of Nike was to learn the demands of the market. They established EKINs, whose primary goal was to work with retailers and consumers and find out their demands and tendencies of the market (Keller & Sichol 2015). Another successful strategy of the company was to provide retailers with a chance not only to see new products before they are introduced to the market, but also to sell some new models exclusively at their sales points (Keller & Sichol 2015). Due to the “Futures” campaign and others, more ads with famous sports representatives appeared (Keller & Sichol 2015).

 

Nike was also criticized for the use of the unfair labor according to the world's policy against cheap labor established in the Asian world (Beder 26). Being accused of using child labor, the company started checking its employees' age more carefully (Beder 26). Nike signed the Global Compact and spent significant sums of money on educational programmes for its workers in Indonesia (Beder 26). Moreover, it donates millions of dollars for gym equipment and scholarship programs in American learning institutions as well as sponsors children's television and the national organization Boys and Girls Club of America (Beder 27).

 

Among the most famous brands under Nike's control one can find Hurley International, Converse, and Umbro. However, the last one is not as successful as Converse, the sales of which are rising annually.

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