[Name of the Writer]
[Name of Instructor]
Prior to 1984, the basketball world used to have very simple and in fact boring kind of sneakers. There was no modernism, and to be very true, no innovation in the field of basketball shoes present for the players. The only color that was available in the market for the players was a white one with little or no aesthetic addition or designing. The manufacturers were least interested in adding any designing or innovation to the already present in the market as they considered it a wastage of resources to put a design in the sports shoes.
It all changed when Nike hired Michael Jordan as a brand ambassador of their basketball sneakers. In 1984, Nike signed a contract with the famous basketball player that he will only wear the sneakers manufactured by Nike in every game. Although Michael Jordan had just entered the world of NBA he immediately got famous due to his excellent gaming skills and sharp preciseness. Nike even offered young Jordan to start his own product line of sportswear. Although Michael Jordan always wore Adidas till now in his every game, now he made a contract with Nike and introduced his own line of basketball shoes or sneakers labeled as Air Jordans.
The product adoption curve of the Nike shoes depicts that initially, Nike was not a much popular brand, even in the sportspersons. The basketball players were reluctant to accept the newly introduced brand in the market but gradually, the attractive design and the comfortable style of the shoes, attracted everyone and the athletes started using it at large. The ease of carrying the shoes impressed not only the sports people but the general public as well and they also started purchasing the newly introduced sportswear, very fondly.
When Nike started the production of Its sports shoes or sneakers, it did not use much of the marketing strategies. As the shoes were specifically targeted for a specific target market, and the company intended to market them to a specific class of people, they required someone from the same area as well. The best choice that came to their mind was Michael Jordan. Jordan, although new to the NBA scenario, had become extremely popular. He got fame in a very short period of time, which is why the company found it best to get the products marketed through a newly rising star. Michael Jordan basically represents a serious of product lines related to sportswear and sport sneakers. In the initiation, when the company reached Michael Jordan with the agenda of marketing its products, he simply refused, because he was only using Adidas shoes recommended by his coach, but he finally agreed to do so.
Nike has a marketing strategy of always choosing athletes for its marketing especially the marketing of its footwear. There are two reasons behind this marketing strategy, Firstly, the products especially the footwear are specifically targeted and produced for a special class of the consumers, the sportspeople. These are shoes are specifically manufactured keeping in mind the ease and comfort of the sports class. Secondly, even there is no restriction on the consumer class to use them or an ordinary man to the Nike products, which is why Nike decided to take help from the athletes in this respect. The shoe-making company wanted to show to the people that how strong and durable their shoes were, which is why they showed it in the feet of athletes and making full use of it while running, jogging and playing sports. This clearly depicted the toughness of these shoes and the clarified any doubts about durability.
a. Keeping in mind the current brand value and the worth of the Nike products, I would like to apply two types of pricing strategies for its products. Both the pricing strategies suit the products of the sportswear producer and justify the cost incurred on the production and marketing of the products;
The first and foremost pricing strategy I would like to suggest against the products of Nike is “Premium Pricing”. Premium pricing refers to deciding the price of the product according to the hype or popularity of the product in the market
The second type of pricing strategy that I would like to recommend for the Nike products is the “Differential Pricing” Strategy. This pricing strategy refers to determine the price of the product, based on the uniqueness of the products being offered CITATION Sco17 \l 1033 (Dadich). As Nike products are very much different and unique as compared to the other similar products in the market, thus a strategy of differential pricing gets applied to its products.
b. Nike, being a quality producer of sportswear all over the world, uses the strategies of premium pricing and differential pricing which is totally justified. Nike offers a wide range of footwear and apparel related to sports which is very much different and unique from the other products found in the market. Nike has kept a name and goodwill in the market regarding its products and various kinds of promotional activities.
c. Although the prices of the products offered by Nike is pretty high and not everyone can afford them, still, the company does not use any means of discounts or promotions to promote its products. The class for which these products are meant and for which they are produced are able to afford it any cost, even if the cost is higher.
BIBLIOGRAPHY \l 1033 The Art of Design. Dir. Scott Dadich. 2017.
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