Nike Brand Extension

Topics: Trademark, Branding, Nike, Inc. Pages: 5 (897 words) Published: January 18, 2015


Matt Junk
January 16, 2015
Nike’s Brand Extensions
Stephen Grothe, Instructor
Consumer Behavior
Upper Iowa University

Introduction
Brand extension is defined as “the practice of using a well-known brand name to promote new products or services in unrelated fields” (Collins English Dictionary, 2015). Nike was once a startup company that only manufactured and distributed shoes after Phil Knight founded the company in 1964. Since Nike was founded in 1964, their brand has extended from just manufacturing shoes to sweatpants; the highly popular Dri-fit t-shirts, backpacks, and the new Fuel bands which I will explain their purpose later. Nike seems to keep evolving with the ever-changing market in order to keep up with the competition such as Under Armor and Adidas. There are many people who simply will not wear a certain item if it is not a popular brand name. The Evolution of Nike

Since the day Nike was founded in 1964 in Beaverton, Oregon by Bill Bowerman and Phil Knight by using rubber and a waffle iron to make the sole of the first shoe, Nike has exploded onto the scene as one of the most popular brands on the market. Nike has gone from a few employees working in a garage to thousands of employees across the globe. “Nike directly employs more than 30,000 people across the globe, from designers and marketers to compliance monitors and accountants, to retail employees. In addition, Nike contracts with manufacturers that employ more than 800,000 workers” (NIKE, Inc., 2015). Nike’s Brand Extension

Nike has extended their brand name from running shoes to just about every piece of clothing known to man as well as golf balls, basketballs, sunglasses and now the most technologically advanced product, the Nike Fuel band which tracks the distance of a walk or run, calories burned, time tracking, and new online programs for the Fuel band to show different running styles. Nike know how to keep up with the ever-changing market competition such as Under Armour who is normally known for their sports performance enhancing undershirts and compression shorts recently came out with their first line of running shoes. Nike and Under Armour seem to go back and for the exchanging punches to see who can produce the next hot item. In 2013, Under Armour filed a lawsuit against Nike for trademark infringement. “Under Armour filed a complaint against Nike, alleging trademark infringement. The trademark in question is Under Armour’s advertising phrase, “I Will,” which is part of a brand new marketing campaign. It is the first time that Under Armour has ever sued Nike” (Burke, 2013). Despite the competition from other up and coming brand names such as Under Armour and Adidas, Nike is still at the top of the apparel industry at an estimated worth of $22 billion. Potential Brand Extensions

As stated earlier, Nike is known for their shoes and the famous Dri-fit apparel that every consumer enjoys. “Nike Dri-FIT is a high-performance, microfiber, polyester fabric that moves sweat away from the body and to the fabric surface, where it evaporates. As a result, Dri-FIT keeps athletes dry and comfortable” (Nike, 2015). So why not give that sense of comfort to the consumer on a nightly basis by producing a new product such as bedding? The Dri-fit material that is used in socks, shorts, underwear and t-shirts produced by Nike is revolutionary to the sporting industry so why not allow the consumer to be able to use this material to stay comfortable and dry during the hot summer nights when the windows are open. Another potential brand extension for Nike could potentially be Dri-fit covers for the consumer’s car seats. After playing a sport or being active, when player’s sweat, wouldn’t it be nice for the consumer to be able to sit on a comfortable seat cover that can gather the sweat and evaporate it instead of the consumer sitting in their sweat the whole way home and soaking into the seats. Overall,...

References: brand extension. (n.d.). Collins English Dictionary - Complete & Unabridged 10th Edition. Retrieved January 14, 2015, from Dictionary.com website:http://dictionary.reference.com/browse/brand extension
Burke, M. (2013, February 21). Under Armour Files Lawsuit Against Nike For Trademark Infringement. Retrieved from Forbes.com: http://www.forbes.com/sites/monteburke/2013/02/21/under-armour-files-lawsuit-against-nike-for-trademark-infringement/
Collins English Dictionary. (2015, January 14). brand extension. Retrieved from Dictionary.com: http://dictionary.reference.com/browse/brand extension
Nike. (2015, January 16). WHAT IS NIKE DRI-FIT? Retrieved from Nike.com: http://help-en-us.nike.com/app/answers/detail/a_id/204/~/what-is-nike-dri-fit%3F
NIKE, Inc. (2015, January 16). People and Culture. Retrieved from Nikebiz.com: http://www.nikebiz.com/crreport/content/people-and-culture/6-1-0-our-workforce.php?cat=our-workforce
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