What Has Led Nike To Becoming The #1 Brand

Many factors can influence a company’s future, and can make or break the company as a whole. In respects to Nike, it is clear that this company has really fine-tuned their marketing, management, and product skills. This is obvious, especially in the sports category, as many athletes and colleges around the world are displayed with that crest known as the Nike Swoosh. These accomplishments are not all so obvious, and a deeper investigation into the topic of becoming the number one brand is necessary.

Nike is always coming out with new products, and promotions to get new customers (primary demand), conversion customers (secondary demand), and for existing customers (tertiary demand) to all buy their products. This is why Nike is the number one brand, because people are concerned with their health and fashion, Nike targets this to create what appeals to their customers. This rolling out of innovative products, paired with a strong brand and marketing presence, which Nike has created with athletes, allows Nike to charge more for its products. This allows for higher margin products, and because of their marketing presence they can now use these profits to consume and acquire more of the market share and of the share of wallet of consumers and athletes. With this said, Nike now can dominant the athletic wear industry, and that’s exactly what they have done.

Having your brand recognizable does not alone allow a company such as Nike to have become the number one brand. In fact, logistics is a key aspect that consumers everywhere consider when buying from distributors. Nike uses a tactic known as direct-to-consumers, or DTC. DTC is when sales are made through the company’s websites, or through the company’s retail outlets. The reason why this is popular with athletic gear firms is that it allows more contact with the consumers. This is relevant because e-commerce channels are a very significant part of the total retail sales worldwide. With DTC, it has allowed Nike to earn higher revenues on products, and this expands Nike’s margin of profit. This profit, as I said before, allows Nike to acquire “hero” athletes to help promote them-selves even further. And according to the video, this is exactly what Nike did. Professional athletes like Michael Jordan and LeBron James, were and are a huge part of boosting Nike sales, as people look to these athletes as role models.

    In conclusion, the three biggest weapons that Nike uses for its marketing strategy are the Nike Swoosh logo. This logo appears on the uniforms of athletes and their gear, and in turn creates more attention, as it is visually prominent while the athletes perform on media. Second, Nike promotes itself with its strong brand and marketing strategies with the help of focusing on “hero” athletes, such as Michael Jordan and LeBron James. Third, Nike created commerce that has benefited the consumer to want to keep buying from Nike, which creates benefits for Nike as a company. These factors have lead to Nike becoming the number one athletic brand as well as a market leader.

Nike's logo and symbol known worldwide