History on Nike Nike originated in 1962, and was produced Philip - PowerPoint PPT Presentation

History on Nike • Nike originated in 1962, and was produced Philip H. Knight, a Stanford University business graduate who was a member of the track team at University of Oregon. Traveling in Japan after finishing business school, Knight got in touch with a Japanese firm that made athletic shoes, the Onitsu ka Tiger Co., he arranged to import some of the products to the United States on a small scale. Knight invented Blue Ribbon Sports to satisfy his Japanese partner's expectations Knight was convinced that Japanese running shoes could become significant competitors for the German products that dominated the American market at the time. • Later William Bowerman, chipped in 36,500 to equal Knight's investment. Bowerman experimented with modified running shoes for his team, and worked with runners to improve the designs of the prototypes

History continued • By the end of the decade, Knight's venture had expanded to include several stores and 20 employees and sales were nearing $300,000. • At this time, the company introduced its checkmark trademark and the brand name Nike, the Greek goddess of victory. These new symbols were initially affixed to a soccer shoe, the first Nike product to be sold. • A year later, BRS broke with its old Japanese partner, Onitsuka Tiger , after a disagreement over distribution, and kicked off promotion of its own products at the 1972 U.S. Olympic Trials • In 1974 BRS opened its first U.S. plant, in Exeter, New Hampshire. The company's payroll swelled to 250, and worldwide sales neared $5 million by the end of 1974.

Nike Gets Social • In 1984 Nike moved away from its traditional marketing strategy of support for sporting events and athlete endorsements to a wider- reaching approach, investing more than $10 million in its first national television and magazine advertising campaign.

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Nike Financial Increase • In December 1980, Nike went public, offering two million shares o f stock. With the revenues generated by the stock sale, the company planned continued expansion, particularly in the European market. • In 1991 Nike's Visible Air shoes had enabled it to surpass its rival Reebok in the U.S. market Nike sales surpassed the $3 billion mark, fueled by record sales of 41 million pairs of Nike Air shoes. • May 1997, Nike earned a record $795 .8 million on record revenues of $9.19 billion. Overseas sales played a large role in the 42 percent increase in revenues from 1996 to 1997. • Nike then suffered a Riot and a huge decrease in sails in Asia due to the 1997 financial crisis there. • Nike’s struggle continued into the early 2000s, but by 2002 the company appeared to have turned a corner. Nike was pushing hard into overseas markets, and by 2003 international sales exceeded domestic sales for the first time. • Nike enjoyed record results in 2004, posting profits of $945.6 million, and revenues of $12.25 billion. • Years Past this have continued to steadily Increase.

Nike Copy Cats • In 1990 the company sued two competitors for copying the patented designs of its shoes and found itself engaged in a dispute with the U.S. Customs Service over import duties on its Air Jordan basketball shoes • Recently Nike has discovered that one of they’re top designers had been collaborating with Adidas. Nike has filed a 50 page lawsuit on him because of this, However, they have not yet announce how they recovered these Emails. This Sharing of information could be crucial to the overall outcome of sports accessories sells, since Nike and Adidas are so close in dominance.

What About the Women? • In February 1992 Nike began a $13 million print and television advertising pitch for its women's segment. Sales of Nike women's apparel lines Fitness Essentials, Elite Aerobics, Physical Elements, and All Condition Gear increased by 25 percent in both 1990 and 1991 and jumped by 68 percent in 1992.

Global Sportsware Market 17 % 12 % Nike Adidas Other

Nike Sales Category 6 5 4 Running 3 Basketball Soccer 2 Men's Training Women's Training 1 Action Sports Sportswear 0

1 st products Soccer shoe 1970’s design 1970’s Casual design

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Nike T-shirt Sales Team Sales Manchester United 1.2 – 1.5 Barcelona 1.0 – 1.2 Aresonal 700,000-900,000 Juventus 400,000-600,000 Inter Milan 400,000-600,000