Nike Inc. Air Jordan Sneakers: Overview

Nike Inc. Air Jordan Sneakers Student’s Name Institutional Affiliation Nike Inc. Air Jordan Sneakers Company Overview Nike Inc. is a leading apparel and footwear company that was incorporated in 1969. The company’s main functions include designing, developing, marketing and distributing sports apparel and footwear. The company also provides sports services, equipment, and other accessories. Nike has set up various shops across East, West and Central Europe as well as North America and other parts of Japan and China (Ahmed, Brohi, Bhutto & Abbas, 2016). The main brands owned by the company include the Converse, Hurley, Jordan Brand and the NIKE brand. Manufacturing of these brands is carried out by independent contractors. However, the sale of the products is done through the company’s online store, retail stores, and accounts, and licensed independent retailers who are spread across the globe. Additionally, the company also sells its products using direct to consumer operations using its distribution centers, which are located in various parts of the world apart from the U.S. Nike Inc. headquarters is located on a four hundred acre piece of land in Beaverton, Oregon. During the end of the financial year June 2016, Nike sold 46% of its products in the U.S., 12% in China, 18% in Western Europe, 3% in Japan, 4% in Central and Eastern Europe and 11% in the upcoming markets across the world (Ahmed, Brohi, Bhutto & Abbas, 2016). This means that the United States accounts for a majority of its sales and for this reason, it has set up a full product distribution line in parts of Tennessee, Memphis, and other locations. Nike Inc. has also leased its distribution centers in the United States and other centers outside of the U.S. (Ahmed, Brohi, Bhutto & Abbas, 2016). Product Overview The Jordan brand is part of Nike Inc., which produces apparels and basketball shoes (Andrews & Jackson, 2001). The brand was formed in early 1984 through Nike’s partnership with a retired professional basketball player, Michael Jordan (Andrews & Jackson, 2001). The partnership led to the design of the Air Jordan 1 sneakers, which was specifically made for the professional basketball player. From the manufacture of first Air Jordan sneakers, the brand has released several models of the sneaker shoes up to date. The Jordan brand has been sponsored by various basketball players, who enabled the brand to make a significant amount of sales over the years. The players act as an inspiration for the majority of basketball lovers and for this reason, the brand is able to attract both players and fans. Since the Air Jordan sneakers were designed for basketball, the brand has mostly focused on athletic players and teams as the main markets for its products. Judging by its online store, the Jordan brand also targets all age groups, ranging from toddlers to adults. Their sneakers come in a variety of different colors and shapes, and they are available in male and female designs. The price of the sneakers is approximately $400 for adults and $45 for children, which would mean that the company targets the middle and upper-class individuals (Nike, 2018). The distribution of the Air Jordan sneakers is done through Nike’s licensed independent distributors, the company’s online store and other retail stores across the globe. The main distributor of raw materials used for manufacturing the Air Jordan sneakers is China. Materials such as polyester, leather, cotton, and Eva Foam are all imported from China, whereas other materials such as rubber are imported from Thailand, Malaysia, and Pakistan (Locke, 2002). Majority of the manufacturing is carried out in China since the Jordan brand does not have any factory. For this reason, Nike has contracted manufacturers in China to make the products and then export them to the U.S. Distribution is carried out by the company through its direct to customer operations, using its online retail store, as well as indirectly through its intermediaries (Angioni, Cabiddu & Guardo, 2012). Product Features and Packaging The success of the Air Jordan sneakers has been contributed by the company’s incorporation of innovation, performance, sustainability, and authenticity in their product. Nike has greatly valued its customers, and for this reason, the company has been constantly designing products that will improve the performance of athletes. The main feature of the Air Jordan sneakers is comfortability. This has been made possible through the company’s embrace of technology, which has allowed them to manufacture unique sneakers. The brand has incorporated features such as the neoprene inner booty, which reduces the noise and weight of the shoes, fluid-filled bladder for comfort, and elastic brand lacing system into their sneaker designs (Nike, 2018). The incorporation of these features led to the design of the lightest and comfortable sports sneakers, and this has greatly resulted in customer satisfaction. The features of the sneakers enabled Michael Jordan to win successive championships and medals during his season in the National Basketball Association. Compared to other brands, the Jordan brand has managed to release different models over the years from the original Air Jordan 1. Nike has been able to improve the design and performance of the brand in the different models by incorporating different features in each model. The wide variety of the Air Jordan sneakers also give it a more competitive edge since its product come in different colors, designs, and sizes to fit all ages and both female and male. Regarding the augmented product, the Air Jordan sneakers are considered more than a sneaker for some individuals. Apart from their use in sports, the shoes also represent status. Owning the brand comes with certain stature and pride since they are famously associated with the professional basketball player Michael Jordan. The shoes can also be customized according to the consumer’s specifications. Customers can buy the sneakers online through the Nike online store and request for full customization before the product is delivered to them. Also, the brand offers good after sale services such as the two-year warranty from the date of manufacture and effective customer care services. This distinctiveness of the product and the after sale services are the augmented products that enable the brand to sell more products and retain its customers. The packaging of the Air Jordan sneakers is equally important to the sneakers. Nike has retained its packaging in a rectangular box since its first release of the Air Jordan 1 to date. However, although the shape of the box has not changed, the logo and texture of the box have varied in various models of the Air Jordan sneakers. The Air Jordan 1 packaging box had the Nike logo and matched the color of the sneaker inside it. The packaging for the second release of the Air Jordan sneakers incorporated a logo of a basketball with wings and the name Air Jordan on the front side of the box. The other models that followed included the Jump man logo at the top of the box. The logo has been incorporated in all other boxes to date as well as on the sneakers. Nonetheless, the color of the boxes varies depending on the color of the sneakers since the box matches the sneakers inside. The Jump man logo represents Michael Jordan, who is the main brand promoter. Since Michael Jordan is famously known among most basketball fans and players, incorporating the logo on the boxes attracts the fans and the players who admire Michael Jordan. Aside from that, the inclusion of the logo and the design of the box is also visually appealing to other customers such as women and children regardless of their admiration for basketball. Distribution Since the Jordan Brand is under Nike Inc., the company is responsible for the distribution of the sneakers to its customers. Nike has over 20,000 retail accounts spread across the U.S, which enable the company to make use of their channel to distribute the sneakers (Ahmed, Brohi, Bhutto & Abbas, 2016). The Air Jordan sneakers are distributed through both direct channels and indirect channels (Keller, 2010). The indirect channel involves the use of various sportswear and footwear retail stores, including the local sneaker stores, Finish Line, Champs and Foot Locker, who are regarded as intermediaries (Keller, 2010). These intermediaries are supplied with the sneakers from Nike and then sell the products to customers directly. Alternatively, Nike also sells the Air Jordan sneakers directly to customers through its retail stores called Nike Town, which are located in various parts across the United States and other parts of Europe and Asia (Keller, 2010). The company’s website is also an important platform for selling the Jordan sneakers since it enables customers to shop from all over the world and select from a variety of available designs, colors, and sizes. Using direct and indirect channels of distribution has proven useful for the company. The company uses footwear and sportswear stores since the shoes are designed for sporting purposes. However, their design also makes them suitable for use as luxury wear. The use of intermediaries enables the company to sell to unreachable markets while s...