Nikes brand image and sources of brand equity in the United States
Nike company
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Nike’s brand image and sources of brand equity in the United States
The increased demand for the products in the sporting clothing market in USA over the last 20 years provided a great opportunity for Nike Shoe Company. This economic situation provided a very good environment for Nike brand to take root very quickly due to its availability and affordability (Booch, 1996).
Nike’s efforts to become a global corporation
These include such factors as climate and weather changes in a period. Changes in environment are hard to determine or control and they have greater impact on businesses either directly or indirectly. The environmental plan exhibited by Nike has helped in building very strong public relations and has enticed many customers and investors (Bigelow, 1980). Nike shoes are greener and more ethical as compared with other products in the USA market. Nike shoes are easier to recycle, and the solvent use of reduced by over 85% when compared with other brands like tiger and Adidas.
Nike has benefited from product development. This gives Nike the opportunity of its products not becoming unfashionable before they wear out. Building of strong global brand recognition is another opportunity of developing the business internationally. Emerging markets like china and India has new generations of consumers so penetrating such markets is a great opportunity. Worked cup and world Olympic events are well positioned to market Nike brand. Increased female participation in athletics is an opportunity for the aerobic female wear product from Nike. Expiration of new technology and innovation makes Nike to remain top in the market.
What Nike should do different to defend its position
Nike has a lot of competitors as far as sportswear industry is concerned. The companies have expanded globally due to emergences of internet marketing and e-commerce. Competition is fierce particularly in footwear industry and the competitors who dominate the market do so with strategic marketing, strong brand identity, aggressive sales, and very high capital expenditure (Booch, 1996). The recent emergency of Adidas-Reebok merge has posed a lot of challenge to Nike. Nike had dominated the footwear market in US making then a dominate force worldwide. However, with the recent merger of Adidas and Reebok has posed a threat to Nike market share.
Innovation
Nike should keep on with the pace of techno innovation. This will improve its products differentiation and increase the customer base. Innovations of foot wear for the athletics that makes runner fill like they are bear footed will compete Adidas and other brands which produce products which are heavy.
Marketing
Marketing will help the company to increase sales and reduce costs. Utilization of internet for marketing will provide Nike with an intangible asset such as market research and consumer buying trends. Through data retrieved from consumer’s Nike will be able to analyze and monitor the buying behaviors. Market research helps them to generate data to be used in analyzing the market trends to organize promotions and marketing campaigns (Bigelow, 1980).
Price
Nike has no problem with the price, this is because it acts as prices setter alongside Adidas and Reebok. Nike sells its products at whatever price because of an inelastic demand for its products. Expensive promotions don for Nike produced tuned consumers to believe that Nike produces quality products, which are worthy whichever price they will charge. More so, Nike does not gain competitive advantage through the prices they charge customers.
Works cited
Bigelow, J. (1980) Strategies of Evolutionary and Revolutionary Organizational Change,Academy of Management Proceedings, 4p, 1 diagram.
Booch, G. (1996) Object Solutions: Managing the Object Oriented Project, Addison-Wesley,London UK.
Nike: Building a global brand.
