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How Internal Value has made a difference to a Foreign Brand. Brand : Nike Inc. Definition Of Internal Value: A unique combination of systems, processes and networks within the organization to provide a sustainable differentiating factor among competitors and customers. Introduction: Nike was founded in the year 1964 when it was called by the name ‘Blue Ribbon Sports’ , by Bill Bowerman and Philip Knight , and later became known as Nike Inc. , (derived from the Greek Goddess of victory)in 1978. Explanation: Nike is one of the biggest sports shoes manufacturer in the world.
The competition between Nike and Reebok has given rise to many interesting analysis and the strategies followed by them are worth the mention. Nike has been a leading brand in the United States with nearly 37% of the market share. As the brand grew global, it adopted different strategies to retain its numero-uno status across various nations. Nike has made a huge impact on people’s minds with the launch of the tagline “Just Do It” during the 1988 launch. From sports shoes aimed at only sports stars to casual shoes and other range of sports accessories aimed at the retail customers , Nike has come a long way.
The themes followed in the promotional campaigns have been very specific to the point in time. Hoardings , team sponsorship(Nike is the official kit sponsor for Indian cricket team from 2005-2010 ; it beat Adidad and Puma by being the highest bidder of US$43million). Nike has been sponsoring some of the leading football clubs in the world. The strategies to compete in the sports segment and those in the casual/retail segment are widely different and the nation of operation also make a difference.
The logo implemented by Nike (the swoosh) is one of the world’s most instantly recognizable logos and has grown to the extent of being identified as a separate entity without the brand name Nike accompanying it. It has gained a lot of Brand Equity for the brand. As a player in the sports shoes/apparel segment that faces big competition across the globe , the need for the hour has been innovation , re-targeting , re-segmentation , re-promoting and staying ahead of the competitors by leveraging its core competencies. Celebrity endorsements were another major promotion tool that helped Nike retain its market share.
Nike operates in both exclusive stores as well as in multi brand outlets. As the consciousness about one’s fitness is increasing among the younger generation , there has been a shift in the style of launching a new product – attention to detail and the internal design of the product(diff angles of shoe / 3D graphical pictures of the footwear) etc are shown. When international brands were allowed entry into the Indian turf , the challenge of the world class players like Nike , Reebok , Adidas etc was not just to retain their present position but to understand the consumers better to target them aptly.
Reebok , who started off by associating with Indian players gave an edge to others. Nike which initially focused on retaining its global top status , could reach only to the selected segment of society. With the growing awareness to western culture , desire to stay fit and various other changes in Indian mindset , Nike has been able to create a brand value for itself even in the Indian context , owing to its innovation and fast adaptability.