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Nike: The Worlds Leading Designer

A report said to be formal when it's supported by sound or authoritatively recorded resource of information. So to get ready a formal survey we need to carry out research work supported by piece of evidence or reality. This report is all about evaluating the specific brand "NIKE" predicated on its talents and weaknesses with a view to determining its effectiveness. This statement will mainly give attention to inspecting brand value, brand image and brand placement of Nike. Inside the later part of the survey, methodologies such as SWOT research will be used to evaluate the brand effectiveness from owner possible and then customer-based collateral pyramid will be utilized to evaluate the potency of the preferred brand from customer's possible. Brand value will illustrate the brand value chain of Nike. Brand positioning will identify the brand placement value, plan and put into action brand market programs, measure and use brand performance, development and sustainability of brand equity, marketplace and costing strategy. In brand image part, Memorability, Meaningfulness, Likability, Transferability, Adaptability and Protectability of the picked brands will be included. Previous but not minimal, this statement have backed by reliable resources of websites, articles, catalogs and publications as personal references.


Nike is the world's leading artist, distributor and merchant of athletic footwear, attire, equipment and accessories for an array of athletics and fitness activities. Matching to data keep an eye on the business mainly functions in Americas, Europe, Midsection East, Africa and Asia pacific. The top 1 / 4 of Nike is positioned in USA and there are about 32, 000 people who did the trick in Nike as an employee. Data monitor also suggested that the business able to increase their earnings up to 14% from season 2007 to 2008. In addition the net revenue also improves by 26. 3% on that period. The Companies key products and services include:

Brand value

Brand value can be explained as potential income, position and market value of any particular brand. (Keller, 1998) The bigger the brand value is, the more it becomes asset for just about any company. Within an article Mullman, Jeremy recognizes that Nike become second for the publication's 2007 internet entrepreneur of the the entire year. This content highlights the brand value of Nike. In addition corresponding to data screen Nike's revenues increases atlanta divorce attorneys sector and it justify that the brand value of Nike is increasing day by day.

Source- http://www. sdrnet. com

To display the brand value, brand value chain model can be used. The brand value chain model is a planned approach for assessing the sources and results of brand equity and is just how by which marketing activities create brand value.

Source- Keller, K. L. 1998

The brand value string has several basic grounds. Fundamentally it presumes that the value of brand eventually resides in the side of customers. Brand value creation process get started when the company decided to invest in a marketing programme, the linked marketing activities then affects the customer mind and lastly the investment community think about this market performance. In an article, Madden, Normandy stated that a Chinese sports brand known as Anta aims to be the next Nike. Form article we can suppose the brand value of Nike specifically segments. Marketing program investment, customer mind set, market performance and shareholder's value are the key value stages for value string program. Marketing programs include product, communication, trade and worker. Customer mind-set includes the recognition, associations, attachment and attitudes a customer is shown towards any particular brand. Matching to articles of Marketing (00253650), a marketing executive of Nike reportedly got the facts of company's customer service through telephonic talk. Through this activity, Nike proves their brand consciousness towards the customers. Program quality multiplayer in the value chain model is design to have an effect on the mind-set of the clients. By using this tools quality, relevance, distinctiveness and consistency of any brand can be assessed.

Brand Image

Brand image is the reflection of market setting for just about any particular brand. Positive brand image can bring glory for just about any particular brand. Generally there are six requirements for choosing brand elements. (Keller, 2009)They are-







The first three criteria are the marker's unpleasant strategy and build brand collateral; however the later three play a defensive role for leveraging and maintaining brand collateral. (Keller, 2009)


It is a necessary condition for building brand collateral for achieving brand awareness, (Keller, 2009) brand element that promote the target and make easy for brand recall or acknowledgement in your brain of customer. Fitzgerald, Kate in his article shown the studies in a study of customer advertising recall in the United States where Pepsi-Cola have outperformed Nike as an marketer reminded. So based on that article we can say that Nike need to improve their brand consciousness in order to maintain their top position.


Brand meaningfulness means all kind of interpretation with either descriptive or persuasive content. You will discover mainly two important requirements by which the meaningfulness of the brand can be measured. (Keller, 2009) They are-

General information about the type of the merchandise category

Specific information about particular features and benefit of the brand

According to data monitor Nike is the world's leading creator, manufacturer and marketer of activities equipment. So from that information we can say that whenever we speak about this is of Nike, one term that comes in to our head is "sports". The reflection of that we can see in activities of Nike where they sponsor many of the world activities.


Any particular brand becomes likable when it has achieved rich aesthetic and verbal imagery. In that prospective brand's logo can play an important role for increasing the image of any brand. Relating to Light, Larry, in his article he brought up that, Nike is using brand image which is appears to like the clips of Olympic Video games. In justification of that one executive of Nike stated that Olympic is all about sports activities and the name Nike is actually with sports activities.


Transferability means the degree of which the brand factor increases the brand collateral of services of an brand. (Keller, 2009) which means when any new product of existing brand will come in the market with the same name, could it be acceptable to the customer or not. For the reason that regard Nike always in a position to copy their brand efficiently. For instance we can say from data screen is the fact that, the profile of Nike brand is actually increasing.


As the customer's value and option can be transformed any moment, brand adaptability can play an important role for the reason that regard. The simple is the brand Logo and name is simple is for the company to adapt. In that perspective Nike must have strong adaptability, as their name and company logo are incredibly simple.


Protectability means how covered the brand is from legal and competitive sense. In case of international brand it's important to find the brand elements that are legally secured and officially listed with suited legal government bodies.

Brand Positioning

Brand positioning reaches the heart of online marketing strategy. As the name signifies, placing means finding a proper place in the imagination of customers or market portion, so that company can increase potential gain for the company. (Keller, 2009)

Before establishing or deciding about positioning the marketers need to check out the following issues: (Keller, 2009)

Who the target consumer is

Who the primary competitors are

How the brand is comparable to those competitors and finally

How the brand is different from them.

Target Market

According to data keep an eye on Nike is the world's leading artist, company and distributor of athletic shoes, garments and equipment for selection of sports activities and fitness activities. From that information we can believe what forms of customer Nike is targeting. According to Marketing campaign (UK) the articles released that Nike is planning to launch a fresh television campaign in UK boasting Wayne Rooney and Fernando Torres. Form that news article we can expect that brand association can play an important role in case of improving target market for brand such as Nike.

Nature of Competition

Nature of your competition means degree of rivalry one of the established firms. In that possible Nike's main rivals are Adidas, Puma, Finish off Series Inc, New Balance Athletic Boot and Rebook. In an article Pereira, Joseph Signifies that several rivals have used innovations in technology, design and marketing to make their products more competitive with Nike, as Nike's vendors bought way too many shoes in advance. From that article we think about how rivalry Nike is facing from other competitors.

Updating positing over time

For more developed brand, competitive causes often determine shifts in positioning strategy over time. (Keller, 2009) From that time we can recognize that Nike should revise their setting strategy the perfect time to time in order to be continued to be top on the market. This strategy is vital for Nike whenever we look back again to the previous article of Pereira, Joseph Where it advised that Nike's rivals are taking the opportunity of advancement in design and technology.

Analysis and findings

In the research part methodologies such as SWOT research will be used to evaluate the effectiveness of Nike as brand from the owner's potential and customer-based equity pyramid will be used to evaluate the effectiveness of the determined brand from customer's possible.


SWOT Analysis

By using SWOT analysis we will able to measure the Nike's Power, Weakness, Opportunities and Threats from the Owner's potential.


Vertical Integration

All the marketing activities of Nike are vertically integrated. From making to sales, Nike has their existence in every segment of the value chain. Nike has contracted alternative party supplier located in low priced countries such as, China, Vietnam and Indonesia. Furthermore Nike sells its goods to the international dealer all over the world. This sort of vertical integration reduces the price tag on Nike and also increases the revenue for the business.

Diversified earnings steams

Nike generates income from various physical locations and this mix of earnings generation has well balanced their position in the world market and helps them to make diversification. By doing diversification Nike is reducing their business risk and provides opportunities for themselves for cross advertising opportunities.

Wide product portfolio

Wide product collection means wide range of products in several market segment. The product profile of Nike is huge. Beginning with athletic footwear to clothes, Nike produces sports activities equipment and accessories.


High pension liabilities

Nike supplies the largest employee benefit for his or her employees. Because of this large amount pension they have to give every year, corresponding to data monitor their unfunded liabilities increases to 37% in 2008, which can hamper the growth for the company.


Brand reorganization Initiative

According to data keep an eye on, Nike required a reorganizational strategy in '09 2009 where they might separate its brand directly into a fresh model consist of reduced management layer in six different geographical locations.

Market view of global sports activities equipment

According to data keep an eye on report, global sports market is increasing day by day. In order market head of athletics industry Nike gets the opportunity to increase their market share by creating series extension.

Growth in sneakers market

The boots market across the world has shown positive improvements in the modern times. So with the movements of globalization progress Nike gets the chance to offer various kinds of athletic boots to their potential and loyal customer.


Intense competition

The sports activities industry is greatly competitive throughout the world. Any competitive steps taken by the company can easily be imitated. Which means this kind of extreme competition can reduce the success of Nike.

Limited Control over agreement manufacturer

As earlier mentioned that Nike has contracted third part company from whom they might face certain threats as they have got hardly any control over them.

Customer- structured brand collateral pyramid

Brand equity pyramid model can be explained as customer's response based on their knowledge regarding any particular brand. (Kevin, 2009) by inspecting this model we will be able measure the performance of Nike as a brand from the customer's point of view.

Source- Keller, KL, 2003

Brand Resonance

Are the devotion, connection and felling customer having for just about any particular brand. Corresponding to Duguid, Sid, in his article he advised that brand have advanced forwards from relying on profits on return to return on loyalty. For example this information also mentions that Nike has threatened Top league side Manchester United regarding cancellation of the sponsorship if indeed they failed to gain any trophies next season. So form that example we can believe that how valuable brand commitment is suggest to Nike.

Brand feelings

Brand feelings are closely related to the brand. Generally brand sense is the view of customer when they at first heard the brand. It symbolizes fun and pleasure. Corresponding to William D. Wells, feelings can play an important role in case purchasing of any particular brand.

Brand performance

Through brand performance company can estimate product's steadfastness, competence and service performance. Form the customer's point of view, Nike is world leading position in case of sports related boots and apparels.

Brand Imagery

It is the strategy when marketer use customers profile and background to bazaar their product. On that regard Nike uses different kinds of strategy to collect just as much data as you possibly can so that in future they can used those data for personal marketing.

Brand Salience

It is the strategy used for category identification and need satisfaction. Maslow's hierarchy of needs is the idea used for calculating different kinds of dependence on different segment of individuals. In that potential Nike's goal customer are sports activities person throughout the world with self esteem need.

Critical evaluation of the report

If we critically measure the report right from the start, we can say that professional summary and track record were well organized and can provide necessary information regarding the report to the readers. If we go downwards, the report will cover the issues such as brand value, brand image and brand setting. Within the later part methodologies such as SWOT research and customer-based pyramid model can be used to evaluate the brand success.

Important theory developed

Important idea developed through the prep of the report are uses of brand value string in the brand value section, by which value of any brand can be assessed. In such a part this statement tried to judge brand value of Nike against available books. In the brand positioning part, concepts such as target market, rivalry one of the established companies in the activities market were generated and then compared with available books. In the brand image part, notion such as memorability, likability, meaningfulness, likability and transferability were implanted and examined. Inside the later part of the statement methodologies such as SWOT research and equity pyramid were developed to evaluate the Nike brand's efficiency.

Evaluation of the sources used

The articles of journals and newspaper, literature and web links has been used as, the burkha and secondary source of supporting are extremely acceptable and well respected.

Evaluation of reasonable errors

The report has some illogical problems in various sections. Including the analysis of brand value chain is not well enough to evaluate the brand value of Nike. In the placement sector, market segmentation was not discussed as well as for brand image only standards for choosing brand elements shouldn't be well enough to judge any particular brand.

Recommendation and conclusion

Recommendations are always helpful for any company, through which they can make new ideas. So after concluding this formal article the following recommendations can be generated-

Nike should enhance their techniques in terms of measuring their recognized value with their customer.

To add more value with their brand, Nike should try to attach more international stars as brand association

In case placement, Nike should make cheap products to capture the low and mid level markets by taking benefits of low labour cost of their third party suppliers.

Finally Nike shouldn't threat their brand devoted customer such as Manchester United, in case of certain bad times. It could have an effect on the brand image of Nike.

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