1. What makes Nike a “marketing machine?”
Nike is a marketing machine for many reasons. They are constantly coming up with new ideas for shoes and products. They are an extremely innovative company. They have great advertisements that appeal to a huge range of markets. They don’t limit themselves to a single target market. They make products. along with comical, sentimental, and interesting promotions that appeal to a wide range of customers.
2. Why was Nike willing to take such a huge risk on Michael Jordan?
Although when they signed MIchael Jordan, he had not yet even played in the NBA, they saw potential in him. They believed that with his growth in basketball it would help their company grow. They knew that taking risks results in profit.
3. How has the Air Jordan brand impacted Nike?
The Air Jordan brand was the first brand that really set the company into action. It helped created a customer base, and was the start of their sponsored lines. It was also the spark of clever advertisement and promotion. It continues to grow today with the Air Jordan 23 for the NBA All Star Game in New Orleans. In addition, the signing of Michael Jordan helped Nike overcome their fierce competitor Adidas.
4. What was it that made Michael Jordan choose to sign with Nike over Adidas?
Michael Jordan had always worn Adidas and Converse shoes when playing basketball, making his favorite shoe an Adidas brand. He almost didn’t sign with Nike because he had never worn their brand in his life. However, he realized that Nike would let him have input and create his own line. The main reason however, was that Adidas was a European brand and wasn’t looking as much for an American athlete.
5. How has Underarmour affected Nike?
They sold athletic apparel and caused Nike to grow as a company and create clothing in addition to shoes in order to compete.
6. How many products does Nike make?
More than 3,000
7. Where do the sales of more than half of Nike products come from?
The Nike Jordan Line
8. What made Nike’s advertising strategies so controversial?
Instead of making textbook advertisements, they tried to make their commercials seem less like they were trying to get their customers to buy the product, and more like they were giving them “insider information”. Things really began to become controversial when Nike was sued for using the song Revelations by the Beatles without permission.
9. What impact did Nike’s slogan “Just Do It” have on our society?
The first time they used the slogan was in the commercial for the cross trainers. Nike realized that this slogan not only encouraged and inspired athletes to push themselves in sports, but everyday people in whatever activities or problems in their lives. The three words inspired and moved society. It made people believe in themselves.
10. What debate did the Charles Barkley ad campaign spark? Which side of the debate do you agree with and why?
Charles Barkley made a commercial in which he clearly stated that he wasn’t a role model, and that parents should be role models. This started a controversy because many children saw him and other NBA stars as role models. It made people ask themselves: What is a role model? What makes them so? Barkley explained that he didn’t want children to dream about becoming a basketball player when they should be becoming doctors, lawyers,engineers, teachers, etc. I agree that children should have aspirations that aren’t just about sports and that parents should be role models to their children. Still, kids need someone they can look up to that has achieved the unachievable even if them doing the same may be unrealistic.
11. Where did the inspiration for the Tiger Woods commercial come from?
During down time, Tiger Woods was playing around with a golf ball by bouncing it off his club. The director saw him on his way to the bathroom and asked him to do it on camera. Fromt here the commercial was created.
12. Who has become the “modern day” Michael Jordan?
P-Rod seems to be becoming the modern day Michael Jordan, as he is the face of Nike’s new line of skate shoes.
13. How is Nike changing the way it advertises in light of declining TV viewership?
They sponsor atletes that they know their customers will relate to. They also use the internet (twitter and Facebook) for advertisement.
14. How did Nike handle their “sweatshop” public relations disaster? How would you have handled this negative press if you were a Nike PR executive?
They tried to downplay it by saying that they disagreed with how bad the conditions were. However, at the same time they pledged to make the factories better each and every year. They hired a staff of over a 100 people to monitor each plant, and publish their findings to the public. It was smart because they defended their company while still fixing the problem. I would act in a similar way although I would try to make it seem like we cared about the problem more than Nike did.
15. Describe the relationship Nike has with the factory workers in Vietnam.
10 out of the 35 factors went on a strike in 2008. That shows that many workers are not happy with the working conditions. However, there are also workers who say that the conditions are very comfortable and that they enjoy working with the Nike company and truly believe that the company cares about their wellbeing.
16. What are the areas that Nike needs to improve upon in terms of improving their labor relations with the factory workers of Vietnam?
They should increase the wages as well as have CEOS and managers visit the factories and talk to employees. They need to show them that they care and aren’t just “improving” working conditions because they were caught being unethical.
17. Do you think Nike has a responsibility to pay their factory workers higher wages?
Definitely. With the ridiculous amount of profit that Nike makes, there is no reason that they should not be paying their workers higher wages. Not doing so not only creates a bad image for their company, but is ethically wrong in my opinion. AN important factor of a successful company is dependent workers, and depriving them of fair wages will not result in that,
18. Now that you have seen this video, do you view Nike more positively, negatively, or is your view the same?
I view it slightly more negatively after learning about how badly they treated their employees and how little it seems they care. It seems as if they’re only trying to improve them because they got caught in the act and need to save face. At the same time, Nike is an incredible marketing machine and this video proved that.
19. What part of the Nike video surprised you the most and why.
I was surprised that the company started with a few guys selling shoes out of their trunk at track meets and also that when they signed Michael Jordan he hadn’t even had any playing time in the NBA. It was a much larger risk than I was aware of.