Nike Marketing Strategies and Current Company Status

Who would keep up imagined it? later years on top, Nike unawares looks like a initiative marathoner who, in midrace, questions whether hes got what it takes to economize on running. Nikes symptoms of distress: a global flood of togs, flavourless sales in signalise markets, and declining profits. Moreover, the global brand hotshot that captured its own winning corporal mindset with the Just do it ad slogan has a new pitch, I puke--to which investors seem to be retorting, No, you cant. Losing faith, they have knocked Nike stock from its all-time laid-back of $76 about a year ago to a recent $46.\n\nWhat happened? While Nike has tripped on fickle fashion trends and heightened opposition before, its main obstacle straight off appears to be its own success. Heres why:\n\nBIG-BRAND BACKLASH. When he founded Nike in 1972, chief executive officer Phil Knight contended that if five chill guys--the best and most frequent athletes--wore his shoes, other people would necessita te to as well. The strategy worked wonder fully, of course, and nowadays Nike controls an astounding 47% of the U.S. athletic-shoe market. however the brand has become excessively common to be cool. I call it the Izod syndrome, says John Horan, publishing phoner of Sporting Goods Intelligence, referring to the once-hip golf shirt. Nike is everywhere. print expert Watts Wacker, chairman of the consulting blind drunk FirstMatter, believes that the ubiquity of the Nike logo--the over-Swooshing of America--turns off significant core consumers, the 12- to 24-year-olds. When I was maturation up, we used to say that grow for the Yankees is like root for U.S. Steel, Wacker says. Today, rooting for Nike is like rooting for Microsoft.\n\nTHE MARLBORO MISTAKE. Indeed, some(prenominal) cool-conscious youngsters have gravitated to other brands much(prenominal) as Adidas (which sells sneakers at pull down legal injurys) and Timberland (a leader in the outdoorsy brown shoe trend). In stead of responding with hotter products or glare prices, Nike did what many overconfident giants do (think Marlboro, pre-Marlboro Friday): It raised its prices ahead of inflation. Retailers mischievous up, but the products werent necessarily arrive at 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 last years models (except the indocile Air Jordan line).\n\nTHE (ASIAN) ECONOMY, STUPID. Nikes inventory glut is messiest in Asia, largely because the company operates few outlet stores there. (In the U.S., Nike sells nigh half of its leftover shoes...If you fatality to get a full essay, order it on our website:

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