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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

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overview of presentation
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
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.
overview
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
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
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 international8
Nike International
  • 1978-Nike sells shoes in South America and distribution outlets are set up in Europe
  • Revenues exceed $71 million dollars
nike international9
Nike International
  • Nike’s World Headquarters are in Beaverton Oregon.
  • Opened in 1979
nike international10
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 international11
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 international12
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
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.
top ten wealthiest athletes
Tiger Woods

Shaquille O'Neal

Lance Armstrong

Michael Jordan

Alex Rodriguez

David Beckham

Michael Vick

Derek Jeter

LeBron James

Kobe Bryant

Top Ten Wealthiest Athletes
steve prefontaine
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
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
LeBronJames
  • 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
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.
lance armstrong
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

Tiger Woods
serena williams
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
FreddyAdu
  • Signed a $1.5 Millioncontract 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
MichaelVick
  • 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
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
KobeBryant
  • 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

Alex Rodriguez & Derek Jeter
yang yang
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
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
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
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
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
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
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 in the united states
Sponsorship in the United States
  • Professional Sport
  • Colleges and Universities
  • Youth and Community Programs
major professional sport
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
youth community
Youth & Community
  • Nike Foundation
  • Community Giving
international sponsorship
International Sponsorship
  • Events and Leagues
  • Soccer
  • Manchester United
events leagues
Events & Leagues
  • International Inline Skating Association Marathon Tour
  • Ironman Competitions
  • Canadian Hockey Association
  • Nike Tour (golf)
soccer
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
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
Other Causes
  • AIDS.com
  • Livestrong
ambush tactics
Ambush Tactics
  • 2002 Boston Marathon
  • Olympics
    • 1992
    • 1996
nike in the overseas marketplace
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
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
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
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
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
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
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 cont54
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
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.
slide56
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
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

Questions???

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