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Nike Athletes

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					       Overview of Presentation
•   International Sport Marketing Issues
•   History of Nike
•   Athlete Representation/Endorsement Deals
•   Event Sponsorship
•   Nike as a company in the global age
•   Examples of Nike Advertisements
•   Why is this important to sport managers?
•   Concluding Remarks
  International Sport Marketing
• Marketing has shifted in the last 20 years from
  country-specific to more international.
• Sport marketing follows the same trends.
• World is becoming smaller—more competition,
  need to find new markets for products.
• Nike is an excellent example of shifting priorities
  from the domestic market to a more global
  approach.
History of Nike
              Overview
• Founded by Bill Bowerman and Phil Knight
• Been in the industry for over 30 years
• World‘s most competitive sports and
  fitness company
• Nike employees over 23,000 people
        The Nike ―Swoosh‖
• Created by graphic design student at
  Portland State University in 1971
• Received $35 for the design and unknown
  amount of stock in Nike
• Now one of most famous logos and
  trademarks in the world
          Nike International
• In 1972, Canada becomes Nike‘s first
  foreign market
• In 1974, Nike begins operating in
  Australia
• In 1977, Nike sets up manufacturing
  factories in Taiwan and Korea
  – Much controversy over fair worker‘s pay
  – Sweatshop controversy continues today
         Nike International
• 1978-Nike sells shoes in South America
  and distribution outlets are set up in
  Europe

• Revenues exceed $71 million dollars
         Nike International
• Nike‘s World Headquarters are in
  Beaverton Oregon.
• Opened in 1979
          Nike International
• 1980- Nike begins negotiations with China
  to set up production of shoes in this
  country
• Nike becomes the number one selling
  shoe in Canada
• 1981-Nike International Ltd. Is formed to
  service a growing market of up to 40
  countries
         Nike International
• 1984- Global market reaches $158 million
• 1985- Michael Jordan is signed and
  becomes the biggest endorser in Nike
  history
• 1987- Nike is introduced in the USSR
• 1991- International Revenue tops $860
  million
            Nike International
• 1994- A new Eastern European region based in
  Vienna is formed at the $138 million Laakdal
  Customer Service Center
  – Shane Warne, Australia's preeminent cricket
    superstar, signs with Nike
  – NIKE assumes distribution rights in Japan in Korea
  – Nike signs 10 members of Brazil's soccer team along
    with Italy's, China's and U.S.'s soccer team.
  – In Latin America, Chile and Argentina join the NIKE-
    owned family
                Nike Today
• Internationally recognized company with annual
  revenue in 2004 of almost $13.7 billion dollars.
• Owns subsidiaries such as Starter, Nike Golf,
  Converse, and others.
• Has some sort of presence in almost every
  country in the world.
• Endorsement deals for professional athletes
  reached over $500 million in 2004, as well as
  spending on advertising reaching $213 million in
  2004.
Athlete Endorsements
   Top Ten Wealthiest Athletes
• Tiger Woods        • David Beckham

• Shaquille O'Neal   • Michael Vick

• Lance Armstrong    • Derek Jeter

• Michael Jordan
                     • LeBron James
• Alex Rodriguez
                     • Kobe Bryant
Steve Prefontaine
         • First major track star to
           wear Nike
         • Blue Ribbon Tiger Shoes
         • At the time held several
           records, including the
           2,000 and 10,000 meter
           dash
         • Known simply as ―Pre‖
         • Died in a car crash in
           1975
Michael Jordan
       • Signed with Nike in
         1984
       • Has own brand of
         Nike gear, The
         Jordan Brand
       • Number 3 pick in NBA
         Draft
       • One of the most well
         known athletes in the
         world
             LeBron James
• Signed with Nike Prior
  to being drafted into
  the NBA
• Seven year deal
  worth $90 million
• Jordan‘s First
  Contract in 1984 2.5
  Million for 5 years
• Won 2003-04 NBA
  Rookie of the Year
                Mia Hamm
• Regarded as one of the
  best Women‘s Soccer
  players to ever have lived
• Member of U.S. National
  Team, played in Olympics
  from 1996-2004, founding
  member of WUSA
• Mia Hamm Foundation
  and other charitable
  works, including excellent
  role model for female
  athletes.
         lanceARMSTRONG
• liveSTRONG
  campaign raised
  millions
• Goal was $5 million
• Over $9.4 million in
  grants
• 50 Million wristbands
  sold as of May 2005
• Eight time Tour de
  France champion
Tiger Woods
      • Signed with Nike in
        1996, giving up his
        amateur status
      • Signed his first deal
        for a 5 years at $40
        million.
      • New Contract is $90
        million
      • Considered the best
        male athlete in the
        world
               Serena Williams
• Signed a lifetime deal in
  2003
• Worth just over $60
  Million
• Was one of the first
  women signed to Nike
  Goddess (now Nike
  Women)
• Consistently one of the
  top Women‘s tennis
  players in the world
Freddy Adu
     • Signed a $1.5 Million
       contract in 2003
     • Was age 13 when he
       first signed
     • Plays for DC United of
       Major League Soccer.
     • Considered one of the
       best young players in
       the world.
               Michael Vick
• Signed with Nike in
  2004
• Endorses NikePro
  Sphere
• $62 Million over 6
  years
• Quarterback for the
  Atlanta Falcons of the
  NFL, top QB.
Maria Sharapova
        • Signed a $55 Million
          deal
        • Contract is for 5 years
          and started in 2003,
          with a 3 year
          extension
        • Highest contract for
          any women athlete
        • 2004 Wimbledon
          champion
Kobe Bryant
      • Signed contract with Nike
        in 2003 for 5 years and
        $40 Million
      • Nike signed him even
        though he was going
        through a trial for rape
      • However he has not been
        in a television
        advertisement since, for
        any of his corporate deals
      • Nike has stood behind
        Kobe, as they do all their
        athletes
  Alex Rodriguez & Derek Jeter
• Derek Jeter signed with
  Nike‘s Jordan Brand
• 10 Year $100 million deal



                              • A-Rod signed to Nike
                              • Has been with Nike
                                for over 14 years
                              • Gets about $1 million
                                a year
                Yang Yang
• Chinese Olympic
  Speedskater
• Was China‘s first Winter
  Olympic Games champion in
  2002
• Earned gold in the 500m
  event, as well as the 1000m.
  Also finished 4th in the
  1500m by a tenth of a
  second
           Fernando Torres
• Member of Spanish
  National Football
  team
• One of the most
  sought after
  European football
  players of his
  generation.
• Currently plays for
  At. Madrid in
  addition to for Spain
         Yelena Slesarenko
• Russian Women‘s High
  Jumper
• Won Gold at the 2004
  Athens Olympics
• Broke former Olympic
  Record with a jump of
  2.06m
• Also is current World
  Indoor Champion
                  Robinho
• Dubbed the successor to
  Pele, the great Brazilian
  soccer player
• Hails from Brazil, plays
  for Real Madrid,
  alongside David
  Beckham
• Only 20 years old and his
  signing attracted
  international attention
  from many European
  football clubs
          Wayne Rooney
• Football player for
  Manchester United FC
• Member of English
  National Team, plays
  forward position
• Nicknamed ―Roonaldo‖
  because of his
  playmaking ability
         Hicham El Guerrouj
• Olympic distance
  runner—Morocco
• Athens 2004 Olympic
  Games: Won Gold in
  5000m and 1500m
  races
• Multi-time world
  champion in distance
  events, great
  humanitarian
   Other Internationally Endorsed
              Athletes
• Asafa Powell-Jamaican Runner, 2004 Olympic
  Games
• Shiqiang Guo—Member, Chinese National
  Basketball team
• Thomas Voeckler—Cyclist
• Sanya Richards—Track and Field, University of
  Texas
• Diego de Cunha—Football Player--Brazil
• Ronaldo—Football Player—Manchester United
Sponsorship/League
  Endorsements
 Sponsorship in the United States
• Professional Sport
• Colleges and Universities
• Youth and Community Programs
     Major Professional Sport
• Major League Baseball
  – Majestic
• National Football League
  – adidas-Solomon/ Reebok
• National Basketball Association
  – adidas-Solomon/ Reebok
• National Hockey League
  – adidas-Solomon/ Reebok
Colleges and Universities
        Youth & Community
• Nike Foundation
• Community Giving
    International Sponsorship
• Events and Leagues
• Soccer
• Manchester United
           Events & Leagues
•   International Inline Skating Association
    Marathon Tour
•   Ironman Competitions
•   Canadian Hockey Association
•   Nike Tour (golf)
                 Soccer
•   Nike ‗arrived‘ on the soccer by
    sponsoring the 1994 Word Cup
•   Continue to look up to adidas, but
    gaining ground
•   Sponsors numerous national teams
•   Sponsors Manchester United
          Manchester United
•   Widely regarded as the ―world‘s most
    famous football club‖
•   Nike entered a $553 million, 13-year
    sponsorship deal in 2000
•   United‘s fortunes have waned since then
               Other Causes
• AIDS.com
• Livestrong
                 Ambush Tactics
•       2002 Boston Marathon
•       Olympics
    –     1992
    –     1996
Nike as a Sport Marketing
       Case Study
 Nike in the Overseas Marketplace
• Appeal of Nike brand overseas
  – Running
  – Football (soccer)
  – Other brands that Nike owns
  – Advertising
  – Marketing Campaigns
  – Athlete Representation—using local stars to
    appeal to international customers
 Nike as an Global Powerhouse
• Over half of business is in international
  markets.
• Growing number of subsidiaries (Bauer
  Hockey, Starter, etc.)
• Footwear market-share leader in Europe
• Success in international events
  (Olympics, World Cup, Tour De France)
• Product placement
             Global Competition
• Adidas-Solomon/Reebok
    – Merger in 2005 to attack Nike‘s position in the
      domestic and international marketplace
•   FILA
•   K-Swiss
•   Puma
•   New Balance
•   Other smaller brands in Europe and around the
    world
    Evolution of Product Lines
• Footwear
• Clothing/Merchandise
• Subsidiary product lines
  – Cole Haan
  – Starter
  – Nike Golf
  – Converse
  – Bauer NIKE Hockey
  – Hurley Surfing
     Why is Nike so Successful?
•   Superior Advertising
•   Brand Recognition
•   Quality Products
•   Subsidiary Development
•   Marketing Strategy
•   Employees of Company (commitment)
•   Business strategy (recognizing
    opportunities)
    Nike Global Commercials
• TV advertisement from Australia
  – http://www.nike.com.au/nikefree/home.html
• TV advertisement from Europe
  – http://www.nike.com/freeeurope/?l=en_gb&cid
    =r2002&ref=global_home
• TV advertisement from Canada
  – http://www.nike.com/canada/nikehockey/main
    _en.jsp
      Global Commercials, Cont.
• Football (soccer) is the most popular sport in the
  world. Needless to say, Nike excels in these
  commercials that appeal to the world market.

•   Ole
•   Brazil Airport
•   Nutmegs
•   Are You Ready
•   Nike Streetball
   Global Commercials, Cont.
• Football commercials appeal to the largest
  population of sporting individuals. Other
  commercials like basketball and baseball
  commercials are more for American tastes.
• A wide and diverse taste of commercials
  appeals to the global image that Nike takes
  on to succeed.
• Image is everything.
• Marketing campaigns are effective.
Implications for Sport Managers
• Internationally recognized—logo and
  slogans
• Competition with growing international
  market
• Increasing advertising costs (product
  differentiation)
• Global sport is wave of future
• Nike as a model for success
• Will impact every part of sport
  management, not just marketing and
  sponsorship.
• Something to think about:

• Even with the merger of Adidas and Reebok,
  Nike still controls a large market share of
  products around the world

• …America has 290 million people…the world
  has 6 billion…lots of room for expansion and to
  break into new markets….
   An Analysis of Nike's Influence
      over Sport in the Global
           Marketplace
• Nike will continue to grow and expand their
  influence in all aspects of sport.
• Endorsement deals with high profile teams and
  athletes will continue.
• Competition from other companies like Adidas-
  Reebok and others will grow.
• Nike has advanced global sport to a new level
  and has made a commitment to making sure
  that they remain on top of the footwear game for
  years to come.
      Questions???




―If you have a body, you are an
  athlete. As long as there are
   athletes, there will be Nike‖

				
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posted:5/16/2010
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