Nike hit the ground running in 1962. Originally known as Blue Ribbon Sports, the
company focused on providing high-quality running shoes designed for athletes by
athletes. Founder Philip Knight believed high-tech shoes for runners could be
manufactured at competitive prices if imported from abroad. Nike’s commitment to
designing innovative footwear for serious athletes helped build a cult following
among U.S. consumers. Nike believed in a “pyramid of influence” where the
preferences of a small percentage of top athletes influenced the product and brand
choices of others. Nike’s marketing campaigns have always featured accomplished
athletes. For example, runner Steve Prefontaine, Marketing Discussion Shifts in
Marketing � �Consider the three key forces driving the new marketing realities. How
are they likely to change in the future? What other major trends or forces might affect
marketing? the company’s first spokesperson, had an irreverent attitude that matched
Nike’s spirit. In 1985, Nike signed up then-rookie guard Michael Jordan as a
spokesperson. Jordan was still an up-and comer, but he personified superior
performance. Nike’s bet paid off—the Air Jordan line of basketball shoes flew off the
shelves and revenues hit more than $100 mil lion in the first year alone. As one
reporter stated, “Few marketers have so reliably been able to identify and sign athletes
who transcend their sports to such great effect.” In 1988, Nike aired the first ads in its
$20 million “Just Do It” ad campaign. The campaign, which ultimately featured 12
TV spots in all, subtly challenged a generation of athletic enthusiasts to chase their
goals. It was a natural manifestation of Nike’s attitude of self-empowerment through
sports. As Nike began expanding overseas, the company learned that its U.S.-style ads
were seen as too aggressive in Europe, Asia, and South America. Nike realized it had
to “authenticate” its brand in other countries, so it focused on soccer (called football
outside the United States) and became active as a sponsor of youth leagues, local
clubs, and national teams. However, for Nike to build authenticity among the soccer
audience, consumers had to see professional athletes using its product, especially
athletes who won. Nike’s big break came in 1994 when the Brazilian team (the only
national team for which Nike had any real sponsorship) won the World Cup. That
victory transformed Nike’s international image from a sneaker company into a brand
that represented emotion, allegiance, and identification. Nike’s new alliance with
soccer helped propel the brand’s growth internationally. In 2003, overseas revenues
surpassed U.S. revenues for the first time, and in 2007, Nike acquires Umbro, a
British maker of soccer-related footwear, apparel, and equipment. The acquisition
made Nike the sole supplier to more than 100 professional soccer teams around the
world and boosted Nike’s international presence and authenticity in soccer. The
company sold Umbro in 2012 for $225 million. In recent years, Nike’s international
efforts have been focused on emerging markets. During the 2008 Summer Olympics
in Beijing, Nike honed in on China and developed an aggressive marketing strategy
that countered Adidas’s sponsorship of the Olympic Games. Nike received special
