8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 1/29

TABLE OF CONTENTS

From Greek Myth to Sports and Fitness Powerhouse ............................................................. 4Origins and History ................................................................................................................. 5Acquisitions ............................................................................................................................. 6Products ................................................................................................................................... 8

............................................................................................................................................. 9Headquarters ......................................................................................................................... 10

Nike's world headquarters are surrounded by the city of Beaverton, Oregon but aretechnically within unincorporated Washington County. ................................................... 10

Manufacturing ....................................................................................................................... 12........................................................................................................................................... 13

Environmental record ............................................................................................................ 13Marketing strategy ................................................................................................................ 14Kasky vs. Nike ...................................................................................................................... 16Advertising ............................................................................................................................ 16

Beatles Song ...................................................................................................................... 16Minor Threat Ad ............................................................................................................... 17Horror Ad .......................................................................................................................... 18Chinese-themed Ad ........................................................................................................... 18Pretty ................................................................................................................................. 19

Sponsorship ........................................................................................................................... 20Jordan Brand History ............................................................................................................ 22

In the Beginning ................................................................................................................ 22Really Not That Interested .................................................................................................... 22

A Legacy (and a Controversy) is Born ............................................................................. 23........................................................................................................................................... 24Changes ............................................................................................................................. 24........................................................................................................................................... 25Moving Out ....................................................................................................................... 25Jordan Trainers. From this point on, Jordan Brand products no longer featured the Nikename or Nike Swoosh, and their only connection to Nike,Inc is a fine print address for

Nike headquarters to be used for insurance purposes. ...................................................... 25The Shoes Changed the World .......................................................................................... 25

REUSE-A-SHOE .................................................................................................................. 26Innovation ......................................................................................................................... 27How Old Tread Becomes New Track ............................................................................... 27

1

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 2/29

2

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 3/29

There’s An Athlete in Every One of Us

Generally speaking, I consider that people choose Nike because it's got a good reputation

for making a quality shoe and clothing. For what it's worth people are drawn to the branddue to the athletes it endorses and overtime people feel some sort of brand loyalty.

I have chosen to debate this subject mostly because of the qualities this brand promotes. Nike's advertisements have preached inclusiveness, merit, and spirit in a nation that doesn'talways prize those. For instance, the Tiger Woods promotions have effectively waved ascolding index finger at country-club exclusivity in America. And these ads don't simplysay, "Shame on you." They champion the idea that false authority, exclusivity andarrogance will get walloped by the qualities listed above. Nike Co-founder Bill Bowermanonce said, “If you have a body, you are an athlete.” For Nike, being an athlete doesn’tnecessarily mean participating in competitive sports, it means pushing the physical

limitations of your body to discover its potential. In order to promote their products, Nikestrives to visualize and inspire an active way of life for ordinary human beings so they willdiscover their innate athletic identity and feel more powerful in their shoes or gear. For example, Nike's celebration of female body parts such as big butts, thunder thighs andtomboy knees has pleased the Women's Image Network so much they've named the brand2006 Advertiser of the year. WIN Founder Phyllis Stuart praised Nike, saying, "Nikeadvertising makes women feel good about being female. Since The WIN Awards celebratefilm, television and advertising that dispels female media stereotypes, Nike is an idealhonoree. Their advertising has always encouraged women to participate in sports, whichsignificantly improves women's self-esteem and enhances their chances of success in allareas. When women see a NIKE ad they feel more capable”.

Another reason why I consider Nike owner of a dominant position in the world of sportingshoes,clothing and apparel is the fact that the producers understand the needs and desires of customers and give their best in order to satisfy the consumers. In comparison to other

brands, Nike smokes the competition. They consistently create innovative, memorablemessages to promote their products or brand to a much more diverse range of demographics. They’ve done numerous campaigns like, “enjoy the weather”, “courage”,“my better is better”, and “play”, all offering inspiration to the masses. Other athleticcompanies, like Asics or Underarmor, only appeal to the existing, serious athlete as a wayto promote their products. Nike reaches a much larger customer base since they believe thatthere is an athlete in every one of us.

Nike thinks like runners. Their products are designed by people who use them so they arealways thinking of pioneering ways to better their products and us. By standing for superiority, victory and liberation, Nike gives us the heart and soul we need in order to

3

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 4/29

become a runner or an athlete. Physical activity is not something that comes easy to theaverage person. We make excuses or lose motivation, especially around New Years. Nikeaddresses the issues that slow us down, mentally and physically, to equip us with themotivation and character that we need in order to create a way of life where quitting is not

an option. Visually speaking, Nike is like a coach, always encouraging you to push yourself to Just Do It. As such, their strong brand presence and reputation of endorsing the bestathletes makes people believe they are buying the best gear to make them better. Besides, if

Nike didn’t make physical activity a way of life, do you really think they would be as popular as they are?

From Greek Myth to Sports and Fitness Powerhouse

Nike, Inc is a major publicly traded sportswear and equipment supplier based in the United

States. The company is headquartered in Beaverton, near the Portland metropolitan area of Oregon . It is the world's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment with revenue in excess of $18.6 billion USD in its fiscalyear 2008 (ending May 31, 2008). As of 2008, it employed more than 30,000 peopleworldwide. Nike and Precision Castparts are the only Fortune 500 companiesheadquartered in the state of Oregon, according to The Oregonian .

The company was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman and Philip Knight , andofficially became Nike, Inc.in 1978. The company takes itsname from Nike (Greek Νίκη

pronounced Greek goddess of victory. Nikemarkets its products under itsown brand as well as Nike Golf,

Nike Pro, Nike+, Air Jordan , Nike andsubsidiaries including Cole Haan , Hurley International ,Umbro and Converse . Nikealso owned Bauer Hockey (later renamed Nike Bauer ) between 1995 and 2008. In additionto manufacturing sportswear and equipment, the company operates retail stores under the

Niketown name. Nike sponsors many high profile athletes and sports teams around theworld, with the highly recognized trademarks of "Just do it".

4

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 5/29

Origins and History

Nike, originally known as Blue Ribbon Sports, was founded by University of Oregon track athlete Philip Knight and his coach Bill Bowerman in January 1964. The company initiallyoperated as a distributor for Japanese shoe maker Onitsuka Tiger , making most sales attrack meets out of Knight's automobile.

The company's profits grew quickly, and in 1966,BRS opened its first retail store, located on PicoBoulevard in Santa Monica, California . By 1971, therelationship between BRS and Onitsuka Tiger wasnearing an end. BRS prepared to launch its own lineof footwear, which would bear the newly designedSwoosh .

The first shoe to carry this design that was sold to the public was a football shoe named "Nike", which wasreleased in the summer of 1971. In February 1972,BRS introduced its first line of Nike shoes, with thename Nike derived from the Greek goddess of victory . In 1978, BRS ,Inc. officially renamed itself to Nike, Inc.Beginning with Ilie Nastase , the first

Bowerman. How Nike is born professional athlete to sign with BRS/Nike, thesponsorship of athletes became a key marketing tool for the rapidly growing company.

The company's first self-designed product was based onBowerman's "waffle" design. After the University of Oregon resurfaced the track at Hayward Field ,Bowerman began experimenting with different potentialoutsoles that would grip the new urethane track moreeffectively. His efforts were rewarded one Sundaymorning when he poured liquid urethane into his wife'swaffle iron. Bowerman developed and refined the so-called 'waffle' sole which would evolve into the now-iconic Waffle Trainer in 1974 .

IlieNastase(left)

5

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 6/29

By 1980, Nike had reached a 50% market share in the United States athletic shoe market,and the company went public in December of that year. Its growth was due largely to'word-of-foot' advertising (to quote a Nike print ad from the late 1970s), rather thantelevision ads. Nike's first national television commercials ran in October 1982 during the

broadcast of the New York Marathon . The ads were created by Portland-based advertisingagency Wieden+Kennedy , which had formed several months earlier in April 1982.

Together, Nike and Wieden+Kennedy have created many indelible print and television adsand the agency continues to be Nike's

primary today. It was agency co-founder Dan Wieden who coined thenow-famous slogan "Just Do It" for a1988 Nike ad campaign, which waschosen by Advertising Age as one of the top five ad slogans of the 20th

century, and the campaign has beenenshrined in the SmithsonianInstitution. San Franciscan Walt Stack was featured in Nike's first"Just Do It" advertisement thatdebuted on July 1, 1988. Throughoutthe 1980s, Nike expanded its productline to include many other sports andregions throughout the world.

Acquisitions

• As of November 2008, Nike, Inc. owns four key subsidiaries: Cole Haan, Hurley International , Converse Inc. and Umbro .

• Nike's first acquisition was the upscale footwear company Cole Haan in 1988.

6

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 7/29

• In February 2002, Nike bought surf apparel company Hurley International fromfounder Bob Hurley .

• In July 2003, Nike paid $305 million to acquire Converse Inc. , makers of the iconicChuck Taylor All Stars.

• On March 3, 2008, Nike acquired sports apparel supplier Umbro , known as themanufacturers of the England national football team' s kits , in a deal said to be worth£285 million (about $600m).

7

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 8/29

• Other subsidiaries previously owned and subsequently sold by Nike include Bauer Hockey and Starter.

Products

Nike produces a wide raof sports equipment.Their first productswere track runningshoes. They currentlyalso make shoes, jerseys,shorts, baselayers etc. for awide range of sportsincluding track & field ,

baseball , ice hockey ,tennis , Associationfootball , lacrosse , basketball and cricket. The most recentadditions to their line are the

Nike 6.0, Nike NYX, Nike SB shoes, designed for skateboarding . Nike has recently introduced cricket shoes, called Air Zoom Yorker,designed to be 30% lighter than their competitors'. In 2008, Nike introduced the Air JordanXX3, a high performance basketball shoe designed with the environment in mind.

8

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 9/29

Nike sells an assortment of products, including shoes and apparel for sports activities likeassociation football , basketball , running, combatsports , tennis, American football , athletics , golf and cross training for men, women, and children.

Nike also sells shoes for outdoor activities such astennis, golf, skateboarding , association football , baseball , American football , cycling , volleyball ,wrestling , cheerleading , aquatic activities, autoracing and other athletic and recreational uses.

Nike is well known and popular in youth culture ,chav culture and hip hop culture as they supplyurban fashion clothing. Nike recently teamed upwith Apple Inc. to produce the Nike+ productwhich monitors a runner's performance via a radio

device in the shoe which links to the iPod nano . While the product generates usefulstatistics, it has been criticized by researchers who were able to identify users' RFID devices from 60 feet (18 m) away using small, concealable intelligence motes in a wireless sensor network .

In 2004, they launched the SPARQ Training Program /Division. It is currently the premier training program in the U.S. Some of Nike'snewest shoes contain Flywire and LunarliteFoam. These are materials used to reduce theweight of many types of shoes.

In the video game Gran Turismo 4 there is a car by Nike called the NikeOne 2022, designed byPhil Frank.

9

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 10/29

Headquarters

Nike's world headquarters are surrounded by the city of Beaverton, Oregon but aretechnically within unincorporated Washington County .

This distinction, according to The Oregonian, has been a source of contention between thecity of Beaverton and Nike since the company purchased 74 acres (0.3 km²) of nearbyBeaverton land that soon fronted the Jared Co-operation . When Nike proposed expandingtheir headquarters in that direction, Beaverton at first wanted them to build housing near theMAX station and criss-cross the property with two public roads, expectations defined by

the zoning already in place when Nike bought the land. Beaverton's request was mostlyconsistent with Metro's transit-oriented development plans for the region. After a year,which included a threat by Nike to move 5,000 jobs out of the state, Beaverton backeddown from the requirement for housing, but the lack of accommodation was something that

Nike did not forget.

The annexationstandoff soon ledBeaverton toattempt a forcibleannexation. That led

to a lawsuit by Nike,and lobbying by thecompany thatultimately ended inOregon Senate Bill887 of 2005. Under that bill's terms,Beaverton isspecifically barredfrom forciblyannexing the land

that Nike and Columbia Sportswear occupy in unincorporated Washington County for 35years, while Electro Scientific Industries and Tektronix get that same protection for 30years.

10

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 11/29

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 12/29

Manufacturing

Nike has contracted with more than 700 shops around the world and has offices located in45 countries outside the United States. Most of the factories are located in Asia, includingIndonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines,and Malaysia.

Nike is hesitant to disclose information about the contract companies it works with.However, due to harsh criticism from some organizations like CorpWatch, Nike hasdisclosed information about its contract factories in its Corporate Governance Report.

12

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 13/29

Environmental record

The consistently growing textile industry often negatively impacts the environment.Because Nike is a large participant in this manufacturing, many of their processesnegatively contribute to the environment. One way the expanding textile industry affectsthe environment is by increasing its water deficit, climate change, pollution, and fossil fueland raw material consumption. In addition to this, today's electronic textile plants spendsignificant amounts of energy, while also producing a throw-away mindset due to trendsfounded upon fast fashion and cheap clothing. Although these combined effects cannegatively alter the environment, Nike tries to counteract their influence with different

projects. According to a New England-based environmental organisation Clean Air-Cool

Planet, Nike ranks among the top 3 companies (out of 56) on a survey conducted aboutclimate-friendly companies. Nike has also been praised for its Nike Grind programme(which closes the product lifecycle ) by groups like Climate Counts.

13

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 14/29

In addition to this, one campaign that Nike began for Earth Day 2008 was a commercial that featured Steve

Nash wearing Nike's Trash Talk Shoe, a shoe thathad been constructed in February 2008 from pieces of leather and synthetic leather waste that derived fromthe factory floor. The Trash Talk Shoe also featured asole composed of ground- up rubber from a shoe recycling

program.

Nike claims this is the first performance basketball

shoe that has been created from manufacturing waste, butit only produced 5,000 pairs for sale. Another project Nike has begun is called Nike's Reuse-A-Shoe program.This program, started in 1993, is Nike's longest-running

program that benefits both the environment and thecommunity by collecting old athletic shoes of any type inorder to process and recycle them. The material thatis created from the recycled shoes is then used tohelp create sports surfaces, such as basketballcourts, running tracks, and playgrounds.

Marketing strategy Nike's marketing strategy is an important componentof the company's success. Nike is positioned as a

premium-brand, selling well-designed anexpensive products. Nike lures customers with amarketing strategy centering around a brandimage which is attained by distinctive logo and the

advertising slogan: "Just do it". Nike promotes its products by sponsorship agreements with celebrityathletes, professional teams and college athleticteams. However, Nike's marketing mix containsmany elements besides promotion. These aresummarised below.

14

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 15/29

From 1972 to 1982, Nike relied almost exclusively on print advertising in highly vertical

publications including Track and Field News. Most of the early advertising was focused ona new shoe release, essentially outlining the benefits of the running, basketball or tennisshoe. In 1976, the company hired its first outside ad agency, John Brown and Partners, whocreated what many consider Nike's first 'brand advertising' in 1977. A print ad with thetagline "There is no finish line" featured a lone runner on a rural road and became aninstant classic. The success of this simple ad inspired Nike to create a poster version thatlaunched the company's poster business.

In 1982, Nike aired its first national television ads, created by newly formed ad agency

Wieden+Kennedy , during the New York Marathon. This would mark the beginning of aremarkably successful partnership between Nike and W+K that remains intact today. TheCannes Advertising Festival has named Nike its 'advertiser of the year' on two separateoccasions, the first and only company to receive that honor twice (1994, 2003).

Nike also has earned the Emmy Award for best commercial twice since the award was firstcreated in the 1990s. Thefirst was for "TheMorning After," asatirical look at what arunner might face on the

morning of January 1,2000 if every dire prediction came to fruition. [37]

The second Emmy for advertising earned by

Nike was for a 2002 spcalled "Move,"which featured a series of famous and everydayathletes in a stream of

athletic pursuits.In addition to garnering awards, Nike advertising has generated its fair share of controversy.

15

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 16/29

Kasky vs. Nike

Consumer activist Marc Kasky filed a lawsuit in California in 2002 regarding newspaper advertisements and several letters Nike distributed in response to criticisms of labor conditions in its factories. Kasky claimed that the company made representations thatconstituted false advertising . Nike responded that the false advertising laws did not cover the company's expression of its views on a public issue, and that these were entitled to First Amendment protection. The local court agreed with Nike's lawyers, but the California Supreme Court overturned this ruling, claiming that the corporation's communications werecommercial speech and therefore subject to false advertising laws.

The United States Supreme Court agreed to review the case(Nike v. Kasky) but sent the case back to trial court withoutissuing a substantive ruling on the constitutional issues. The

parties subsequently settled out of court before any finding onthe accuracy of Nike's statements, leaving theCalifornia Supreme Court's denial of Nike's immunityclaim as precedent. The case drew a great deal of attentionfrom groups concerned with civil liberties, as well as anti-sweatshop activists.

Advertising

Beatles Song

Nike was the focus of criticism for its use of the Beatles song " Revolution " in a 1987commercial , against the wishes of Apple Records , the Beatles' recording company. Nike

paid $250,000 to Capitol Records Inc., which held the North American licensing rights tothe Beatles' recordings, for the right to use the Beatles' rendition for a year.

16

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 17/29

According to a July 28, 1987 article written by the Associated Press , Apple sued Nike Inc.,

Capitol Records Inc., EMI Records Inc. and Wieden+Kennedy advertising agency for $15million. Capitol-EMI countered by saying the lawsuit was 'groundless' because Capitol hadlicensed the use of "Revolution" with the "active support and encouragement of Yoko Ono Lennon , a shareholder and director of Apple."

According to a November 9, 1989 article in the Los Angeles Daily News , "a tangle of lawsuits between the Beatles and their American and British record companies has beensettled." One condition of the out-of-court settlement was that terms of the agreementwould be kept secret. The settlement was reached among the three parties involved: George Harrison , Paul McCartney , Ringo Starr ; Yoko Ono; and Apple, EMI and Capitol Records.A spokesman for Yoko Ono noted, "It's such a confusing myriad of issues that even people

who have been close to the principals have a difficult time grasping it. Attorneys on bothsides of the Atlantic have probably put their children through college on this."

Nike discontinued airing ads featuring "Revolution" in March 1988. Yoko Ono later gave permission to Nike to use John Lennon 's "Instant Karma" in another ad.

Minor Threat Ad

In late June 2005, Nike received criticism from Ian MacKaye , owner of Dischord Records ,guitarist/vocalist for Fugazi & The Evens , and front-man of defunct punk band Minor Threat , for appropriating imagery and text from Minor Threat's 1981 self-titled album'scover art in a flyer promoting Nike Skateboarding' s 2005 East Coast demo tour.On June 27, Nike Skateboarding'swebsite issued an apology to Dischord,Minor Threat, and fans of both andannounced that they tried to remove anddispose of all flyers. They state that the

people who designed it wereskateboarders and Minor Threat fans

themselves who created the ad out of respect and appreciation for the band.The dispute was eventually settled out of court between Nike & Minor Threat. Theexact details of the settlement have never

been disclosed.

17

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 18/29

Horror Ad

In this ad, a parody of horror films, Olympic runner Suzy Favor-Hamilton is running a bathin a remote wilderness cabin when a chainsaw-wielding masked killer appears. Hamilton isobviously in much better shape than the would-be killer and, thanks to her Nike gear,sprints away. The final shot shows the killer out of breath, limping away and ends with thetagline, "Why Sport?" which is quickly answered with "You'll live longer."

First aired during the opening ceremony of the 2000 Summer Olympics (Friday), the ad titled "Horror" generated roughly200 complaints (according to NBC) that caused the network to

pull the ad by Sunday. ESPN followed suit, but the adcontinued to air with little or no controversy on several other networks, including FOX, WB, UPN and Comedy Central.

Protesters argued that the ad made light of violence againstwomen, while others claimed it was just too scary to watch,especially for children who enjoy watching the Olympics. Nikespokespeople retorted it was meant to be humorous, and tosatirize the typical horror flick where a helpless woman wasdestined to be slashed. Hamilton herself stated the ad wasinspirational, since it is the woman who defeats the man.

Suzy Favor Hamilton

Chinese-themed Ad

In 2004, an ad about LeBron James beating cartoon martial arts masters and slaying aChinese dragon in martial arts offendedChinese authorities, who called the ad

blasphemous and insulting to nationaldignity and the dragon. The ad was later

banned in China. In early 2007 the ad was re-

instated in China for unknown reasons.

18

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 19/29

Pretty

In the run up to the 2006 U.S. Open , Nike began running Pretty , a television advertisementfeaturing Maria Sharapova. Thead was a popular andcritical success, and went on towin several of the industry'stop awards, including twoCannes Gold Lions .

Nike sells its product to morethan 25,000 retailers in theU.S. (including Nike's ownoutlets and "Niketown"stores) and in approximately160 countries in the world. Thecompany also has a programcalled NIKEiD at nikeid.com,

which allows customers tocustomize designs of somestyles of Nike shoes anddeliver them directly frommanufacturer to the consumer.

Nike sells its products international markets throughindependent distributors,licensees, and subsidiaries.

19

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 20/29

Sponsorship

Nike has signed top athletes in many different professional sports to endorsement deals inorder to further promote their products.

Nike's first professional athlete endorser wasRomanian tennis player Ilie Năstase , and thecompany's first track endorser was distancerunning legend Steve Prefontaine . Prefontainewas the prized pupil of the company's co-founder Bill Bowerman while he coached atthe University of Oregon . Today, the StevePrefontaine Building is named in his honor at

Nike's corporate headquarters.

Besides Prefontaine, Nike has sponsored manyother successful track & field athletes over the

years such as Carl Lewis , Jackie Joyner-Kersee and Sebastian Coe . However, it was thesigning of basketball player Michael Jordan in 1984, with his subsequent promotion of

Nike over the course of his storied career with Spike Lee as Mars Blackmon , that proved to be one of the biggest boosts to Nike's publicity and sales.

During the past 20 yearsespecially, Nike has been one of the major clothing/footwear sponsors for leading tennis

players. Some of the moresuccessful tennis playerscurrently or formerly sponsored

by Nike include: James Blake ,Jim Courier , Roger Federer ,Lleyton Hewitt , Juan Martín delPotro , Andre Agassi, Rafael

Nadal , Pete Sampras , MarionBartoli , Lindsay Davenport , Daniela Hantuchová, Mary Pierce, Maria Sharapova , Serena Williams

20

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 21/29

Nike is also the official kit sponsor for the Indian cricket team for 5 years, from 2006 to2010. Nike was awarded the contract for US$43 Million.

Nike also sponsors some of the leadingclubs in world football , such as Arsenal ,Manchester United , FC Barcelona , Inter Milan, Juventus, Porto , Steaua , Borussia Dortmund , Red Star , Aston Villa , Celtic and PSV Eindhoven . Nike will alsosponsor Dundee United from summer

2009.

Nike sponsors several of the world's topgolf players, including Tiger Woods ,Trevor Immelmen and Paul Casey.

Nike also sponsors various minor events including Hoop It Up (high school basketball) andThe Golden West Invitational (high school track and field). Nike uses web sites as a

promotional tool to cover these events.

21

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 22/29

Jordan Brand History

In the Beginning

Early in 1984, Nike was a struggling shoecompany. The running shoe phenomenon thathas fueled their sales in previous years wasslowly dying and they needed a way torevitalize and reinvent themselves in order to

appeal to another segment of the market. At thesame time, rookie player Michael Jordan wasalready endorsing several products, but Nikehoped that his appeal would generate sales.Jordan, though, had other ideas. He had always

preferred Adidas or the Converse shoesendorsed by North Carolina

Coach, Dean Smith, and hoped to sign on witheither company. Converse, with Larry Bird andMagic Johnson on board as spokesmen, were

not interested in offering a better deal than Nike,and Adidas wasn't interested at all at the time; perhaps due to Kathe Dassler's death the same year. While Jordan, himself, did not initiallysee the significance of Nike's offer, his agent, David Falk, saw a golden opportunity in

Nike's offer to create a new line of shoes called "Air Jordans." and urged him to give Nike achance.

Really Not That Interested

At that time, there was not a tremendous impact from a shoe endorsement, and fewcompanies were willing to risk so much of their marketing budget to bet on one athlete to

promote their products. An athlete as paid for wearing the products but little else resultedfrom an endorsement. It's possible that Jordan's reluctant attitude stemmed from this fact asmuch as his allegiance to Converse and Adidas products

Nike saw something special in Michael Jordan, though. They saw a chance, an opportunity.He was a champion with personality, charisma, and heart, and they were willing to put the

22

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 23/29

company on the line. They knew from the beginning that he would be a star and wanted tohelp him get there. Finally, after much persuasion from his manager

and parents, the reluctant rookie agreed to fly to the Nike headquarters in Portland, Oregonto view a special video presentation and proposal though he later stated in retrospect that hewent with no intention of signing with Nike.

The video presentation featured slow-motion clips of Jordan's college career and some of his high-flying Olympic moves with a background of then hit music "Jump" by the Pointer Sisters. Nike Head Designer, Peter Moore presented sketches of AJ1 shoes, jumpsuits, andsports apparel, all in black and red. Michael's remarks upon seeing the designs were lessthan enthusiastic. He is reported to have said, "I can't wear that shoe, those are Devil

colors".

Throughout the entire meeting Jordan was reported to seem disinterested and bored, but ashe and Falk left the meeting, Jordan said to his agent, "Let's make the deal."

A Legacy (and a Controversy) is Born

With those four words, the Air Jordan legacy was born. Nike signed Jordan to a $2.5million deal for 5 years, plus royalties and other fringe benefits. Peter Moore created thefirst AJ Logo with a basketball with wings lifting it. The introduction of the Air Jordan I turned the athletic shoe industry upside down. Before the AJ I, most basketball shoes werewhite, but the bold black and red styling of the Jordan I flouted this convention.

The NBA banned the shoefrom the league in response, butJordan wore them anyway,racking up serious fines of up to $5000 a game. Nike, of course, was more thanhappy to pay these to keepthe shoes on Jordan's feetand in the public eye. Allthis controversy and Jordan'sspectacular numbers thatyear served to put the Air Jordan line on the road to

becoming a name.

23

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 24/29

Changes

After winning 1986-87 Slam Dunk competition at Seattle Coliseum, the Jordan logochanged to the familiar Jumpman logo of today, but when it came time to talk about the

Air Jordan III , Michael was ready to bolt. Reaction to the Air Jordan II, due in part to thehigh retail price, hadn't been stellar and designers Peter Moore and Rob Strasser had left

Nike to start their own company. They began to court Jordan, hoping to develop the business around him This was a turning point for the line; a make-it-or-break-it moment.

It was at this time that Tinker Hatfield stepped in to help the struggling shoe line.Immediately, Hatfield did something completely new and unheard of. His first instinct wasto sit down and talk with Michael one on one and ask for his input about the design.Hatfield has stated that this was a very tense time. No one had ever approached the businessof designing a shoe like this and Jordan had never had anyone ask his opinion until thattime. Ultimately, though, it was the good advice of Michael's father that saw it through. It'sreported that he advised his son to stay with the people who had done a good job for him.

Eventually the process of designing theshoes and matching apparel drewJordan in and helped reinforce hiscommitment to Nike. At Jordan'srequest, the Air Jordan III was a three-quarter cut basketball shoe made of high quality, lighter than averagematerials. This non-standard approachto the process of designing basketballshoes led the Air Jordan III to rocketoff the charts with its popularity, andTinker went on to design all the Jordanmodels up to the Jordan XV . With therelease of the Air Jordan XV andJordan's second retirement, bothHatfield and Jordan stepped back fromthe Jordan line and other designerstook the reigns to continue to thelegacy.

24

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 25/29

Moving Out

Air Jordan Shoes were a part of the Nike, Inc. family until late in 1997 Nike unveiled a newmarketing plan and Jordan became its own sub-brand of Nike. To mark this change, thenew Jordan Brand released the Air Jordan XIII , Air Jordan Team, and Air

Jordan Trainers. From this point on, Jordan Brand products no longer featured the Nikename or Nike Swoosh, and their only connection to Nike,Inc is a fine print addressfor Nike headquarters to be used for insurance purposes.

The Shoes Changed the World

Air Jordan shoes have consistently been among the best selling basketball shoes since their creation in 1985. The Jordan brandis a household name and people of all ages and social strata line upeagerly for the release of the latestmodel. Some of this success can beattributed to the fact that the shoes,from the Jordan III to the mostrecent model, have always startedwith their namesake, MichaelJordan. The designers take hisideas, hobbies, and life intoaccount and incorporate thesefeelings into the shoes. A number of Jordans have been designed after Jordan's cars and some of the more recent models, likethe Jordan XXI (Jordan 21) on the way, some wonder when the Air Jordan line will beretired while others speculate that, in honor of the man, the last Air Jordan will be theJordan XXIII (Jordan 23).

No matter what happens to the signature Air Jordan line, it's a good bet that the brand andits tradition of quality, high-fashion basketball and athletic shoes will continue long after Air Jordans have retired.

25

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 26/29

REUSE-A-SHOE

Nike company has started an innovative program of recycling called Reuse-A-Shoe in order to reduce its environmental impact that has provided material to nearly 300 sport and

playground surfaces, collecting 22.840.412 pairs of shoes since 1990.

To create these surfaces, Nike partners with top-quality surfacing companies , providing themwith Nike Grind materialsand working together todevelop innovative

products usually containing between 10 and 40 percent Nike Grind:

• Outdoor BasketballCourts – Rebound Ace and Atlas Track & Tennis use

Nike Grind Foam inoutdoor basketballcourts.

• Indoor Basketballand VolleyballCourts – NikeGrind Foam andUpper are used tocreate cushioning

beneath thesesurfaces.

• Tracks – Atlas Track & Tennis mixes Nike GrindRubber with virginrubber to create

synthetic indoor and outdoor running tracks.• Soccer and Football Fields – Turf companies use Nike Grind Rubber granules as the

infill – the “soil” – of a synthetic field.

26

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 27/29

• Playgrounds – Playtop creates impact-absorbing safety surfacing for playgrounds

using Nike Grind Rubber.• Interlocking Flooring Tiles – Using around 90 percent recycled rubber, Training

Ground creates interlocking tiles for use in home gyms. It incorporates more than 25 percent pre-consumer Nike Grind Rubber, which gives it a colorful look as well.

Innovation

Waffle-iron track spikes. Air Jordans. Nike Shox. Innovation has been at the heart of Nike's philosophy since the start. It's what has allowed it to create iconic, game-changing products – time and again.But today, Nike innovation is about more than product performance. It'sabout innovation for a better world.

That's where Reuse-A-Shoe and Nike Grind come in. Part of Nike's Considered design ethos , these programs are helping it on the journey towards its vision of a closed loop

business – where waste at different stages of our operations, from its contract factories totransportation and eventually the product at the end of its life, can be recycled – as much as

possible of it back into new Nike product.

Today your worn-out sports shoes can already live on in something new: a track, a basketball court, a playground. Tomorrow, its goal is that sports shoes, apparel andequipment will also be recycled into new Nike products. This way the materials being usedwill go through many cycles of design, manufacture and use. Just like bottles, cans and

paper do now.

How Old Tread Becomes New Track

Exactly how do your old kicks - and manufacturing waste - get turned into Nike Grindmaterial? It depends which of the next two facilities processes them:

-Wilsonville, Oregon:

Opened in 1993, the Wilsonville facility uses a “slice-and-grind” technique, where eachshoe is cut into three slices - rubber outsole, foam midsole and fabric upper. These slicesare then fed through grinders and purified. Once purified, these substances become threeunique types of Nike Grind:

27

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 28/29

• Nike Grind Rubber, made from the shoe's outsole, is used in track surfaces,

interlocking gym flooring tiles, playground surfacing and consumer products, suchas new footwear outsoles and trim items like buttons and zipper pulls.• Nike Grind Foam, made from the shoe's midsole, is used as a cushion for outdoor

basketball and tennis courts, as well as futsal fields.• Nike Grind Upper, made from the shoe's fabric upper, is used in the creation of

cushioning pads for indoor basketball, volleyball courts and equestrian surfacing products.

-Meerhout, Belgium:

The Belgium facility, which opened in 2005, grinds shoes up whole, then passes the

material through a series of complex separators. This also produces Nike Grind Rubber, Nike Grind Foam and Nike Grind Upper.

No matter how your shoes are processed, the end result is the same - three high-qualitymaterials ready to be put back in the game.

28

8/7/2019 mihaela filip_nike_c

http://slidepdf.com/reader/full/mihaela-filipnikec 29/29

REFERENCESGood to Great: Why Some Companies Make The Leap... and Others Don’t .

Jim Collins.(2001);Out of Nowhere: The Inside Story of How Nike Marketed the Culture of Running

by Geoff Hollister;Just Do It: The Nike Spirit in the Corporate World by Donald R. Katz (1995);Bowerman and the Men of Oregon: The Story of Oregon's Legendary Coach and

Nike's Cofounder by Kenny Moore (2007);Swoosh: Unauthorized Story of Nike and the Men Who Played There by J. B.

Strasser (1993) The Story of Nike (Spirit of Success) by Scott Hays (1999)\ Sole Provider: Thirty Years of NIKE Basketball by Robert "Scoop" Jackson (2002)

Who's Afraid of Niketown?: Nike-urbanism, Branding And the City of Tomorrow by Friedrich Von Borries

Nike by Nicholas Flokos

29