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Nike Case Study: Nike

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Nike Case Study

The apparel powerhouse of the 21st century, and the market leader in athletics, it is no question that business has been booming for Nike. Nike has a massive artillery of recognizable catchphrases and a pair of logos that sum up the brand under one great roof to leave no question on their impact on society. Considering the massive growth that Nike has continued to follow over the last five years their revenue had increased 10%, and $1,775 million just in the last year (Nike Financials 2016). In review of the company’s financials “by deducting all expenses from the topline which in this case is $32.38 billion minus other expenses leaves $3.76 billion for NKE stock” (Nike Annual Income Statement 2016), these figures provide evidence
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Nike’s brand strategy focalizes upon the “emotional branding based upon the story of heroism” (Newell 2014), which creates the most success for Nike as they relate the struggle to everyone and makes us want to prove strength for ourselves and win our inner battle with their products. This message plays powerfully in the market showing strength vs weakness and the battle between success and failure where nobody wants to fall under the weak category so they need to work and alternatively purchase Nike’s products to avoid this failure playing off their motivation. Surely the competition in the athletics market is high with competing products and value, which is why Nike is leading with their product innovations and inventions with material innovations such as Dri-Fit and inventions like their Fuelbands and trackers that cooperate with their Nike apparel. Nike is always targeting the professional athlete markets and the current athlete markets; however, Nike is also aggressively targeting consumers who aspire to be “Fit” and are even increasing their focus (by brand sector) on skateboarders, surfers and much of the youth population who may not be viewed as huge athletes but rather athletic individuals. Nike is very prominent in advertising their products to spark the message of increased athleticism in the motivation towards fitness. Advertising by Nike can be seen throughout many different mediums, including social media, internet, television broadcasting, and branding throughout stadiums, gyms as well as on a massive portion of the populations clothing. Because of the massive success of the brand Nike can have a slightly inflated price over that of their competitors with their association with quality in the mind of the consumer. Considering that Nike has made some effort to increase brand equity in companies like Apple