Marketing Organization Reform Of Nike

Nowadays, jogging is becoming more and more popular as a way of urban fitness. The elderly, children, men and women are all keen on this.

Whenever I see sweaty and cheerful fitness workers, I will think of the world-famous Nike company.

In those days, Nike was catching up with the American jogging and fitness craze, and it seemed that the domestic enterprises still could not feel the huge market space.

First, the innovative Nike Nike (Nike) company was founded in 1964 by an accountant Phil knight and a sports coach, Bill Ballman, and has become a leading world class brand.

Mr. Knight only spent $35 on the design of a Nike logo. Now the famous crooked logo has exceeded $10 billion.

40 years of development, Nike has become a business legend. The success of Taoist people is known as the business mode of virtual production. Nike controls the market with excellent product design and excellent marketing FromEMKT.com.cn techniques, and outsourcing the production process.

Many companies are copying Nike's virtual production, but few are successful.

Why?

It should be said that it is not the mystery of virtual production, but because everyone knows that the production line is at the bottom of the "smile curve" and the profit is the thinnest. It wants to develop towards the high end of the curve. Design and marketing itself is a very creative field. If we want to keep the competitive advantage, we must maintain the continuous and outstanding innovation ability.

Behind the virtual production of Nike, it is the spirit of innovation that the two founders praised.

The well-known story is that Mr. Bill Bowerman inspired his wife's baked cookies and eventually designed a new soles for athletic shoes.

Today, Nike's product design studio is still known as "InnovationKitchen".

The innovative kitchen is forbidden to most of the visitors and even the staff of most Nike companies. The company wrote in a banter tone on the sign of the door: "the kitchen is heavy, and the idle people are free from it."

In the think tank with sneakers as the working center, designers find creative inspiration from various fields, from Irish style architecture to the circular arc of violin on the Viola family.

On the wall of the office shows every pair of Jordan shoes made by Nike (AirJordan), and the workshops are filled with new design sketches of sneakers.

More profound innovation comes from Phil knight, known as the father of Nike, as a recognized marketing master.

An expert in sports industry in the United States sighed with emotion: Mr. Nate can say that he has created a new industry with his power.

He made sportsmen a star and a rich man. He made sportswear a fashionable commodity, and he made a small business an international company.

Nike was the first company to take the lead in celebrity endorsement. As early as 1973, it hired long distance runner Steve pry van DIN to speak for his sports shoes.

In 1985, he hired Jordan (Jordan) as spokesperson, which made Nike fame and success.

And Nike is also the first to combine pop music with sports marketing. In 1987, it first took the music of the Beatles (Beatles) to create a sensation in Nike's sports shoes advertisements.

Two, the pformation of marketing organization. In the past few years, Nike has vigorously expanded its product line and added new brands.

The main products of Nike were mainly basketball shoes. In recent years, a series of golf sporting goods was launched, and tiger Woods was the spokesman. At the same time, the promotion of football shoes was intensified to cater for the increase of football sports population.

At present, the turnover of football sporting goods series has reached US $1 billion, occupying 25% of the world's market, and the market share of the football market is 35% higher.

Nike has acquired famous brand name COLEHAAN, hockey brand name BAUER, first sports shoe brand name CONVERSE and slippery board famous brand HURLY, and let each famous brand run alone, and achieved good results.

Nike's achievements in sports marketing are unquestionable, but doubts about Nike's marketing have never stopped.

There are several suggestions that Nike has to consider seriously: first, with the expansion of brand, Nike brand is no longer "cool"; two, Nike's style of throwing money at the expense of marketing, exposing the loopholes in marketing management; three, Nike in emerging markets, localization of marketing is not enough, the marketing effect is not ideal.

According to the latest corporate financial annual report released in June, Nike's annual operating income reached 16 billion 300 million US dollars, an increase of 9%, net income of 1 billion 500 million dollars, an increase of 7%, net income of $2.93 per share, an increase of 11%, which is another record result.

But as a publicly traded public company, growth is a constant pressure. Wall Street only focuses on where your future growth will come from.

Mike, chairman and chief executive of Nike, is full of confidence: Nike is now facing unprecedented opportunities for development. We have the unique ability to pform consumer insight into an advantageous product, which is the important reason why Nike has become the global industry leader in MarkParker. (Nike)

Parke's self-confidence stems from Nike's marketing organizational change.

In August last year, Nike brand President CharlieDenson announced that Nike will carry out marketing organization and management reforms to strengthen Nike's brand ties with emerging markets, core products and consumer segments.

With this change, Nike has gradually shifted from a product driven business model supported by brand innovation to a consumer oriented organizational form, and achieved rapid and effective growth through the global category management of key market segments.

CharlieDenson believes that this is a time when consumers have power. Any company must turn to consumer centered.

This consumer centric approach has begun to play a role, for example, Nike's stores now have Nike +iPod sales portfolio to meet the fashion of young consumers.

Nike has strengthened four regional operations centers, set up five core product operation centers, and four regional operation centers: the US, Europe, Asia Pacific, Middle East and Africa. The five core product operation centers are: running sports, football, basketball, men training, and women's health.

This is a matrix management. The goal is to concentrate the resources of the enterprises to the key areas and core products, so as to seize the largest market opportunities of the enterprises.

Unlike traditional matrix management, the key is to achieve cross regional and inter departmental collaboration.

In fact, Nike has already had successful experience. It is the management method of this synergy matrix that Nike set up a special team to expand the business volume of the company's football products market from 1994 US $40 million to US $1 billion 500 million today.

CharlieDenson said: in this way, we can better serve the athletes, better deepen ties with consumers, expand our market share, achieve effective growth and enhance our global competitiveness.

For example, China's basketball market is coordinated by the Asia Pacific operations center and the global basketball operation center.

Mr. Zhang Ruimin said that the question he most wanted to ask Mr. Welch was how to make big companies smaller.

Now, led by Mr. Zhang Ruimin, Haier is undergoing large-scale organizational change, which is quite similar to Nike's pformation. The core is synergy matrix.

Perhaps there is an old saying: great minds think alike.