Week 14: Market Segmentation

     Market segmentation is based on economics and marketing. A market segment is a market made up of people or organizations with one or more characteristics that cause them to demand similar products based on qualities of those products like price or function. It is also used when consumers with the same product are divided up into groups so they can be charged different amounts. The Air Jordan Brand has the perfect example for this. They sell an Air Jordan sneaker that has different colors and design. The one that is black cost 179 dollars and the one thats white cost 120 dollars because they know that people like the black ones over the white ones. Its both sneakers are similar but they have different colors and design on it. the sneaker is call Air Jordans Retro 8. They do this all the time with all the Air Jordans they sell no matter what.    

Air Jordans Retro 8

Week 13: Developing Managing Products

     Product management is an organizational function within a company dealing with the planning or marketing of a products. Air Jordans had a great idea this black Friday when they decided to release the Air Jordan 13 Retro. This wasn't just any Air Jordans its been over 12 years since the original Air Jordan 13 released back when MJ was leading his squad to their sixth championship. Also claiming his sixth Finals MVP award. With its sleek curves and unmistakable cat eye the Air Jordan 13 Retro is a worthwhile reward for those brave enough who battle the Black Friday crowds. This is a new color for the first time and its been 12 years since this kind has been release. The Air Jordan Brand had a great idea because now they are already sold out. This was a good example of developing managing products.

Air Jordans 13 Retro

Carmelo Anthony Encourages Kids To “Be More”

     Last week in Denver was a memorable one for Carmelo Anthony who hosted 15 kids ages 11-14 from the Street Kidz program over three days to celebrate their efforts in overcoming obstacles in their lives in a positive way. The theme of the kids visit was “Be More” encouraging statement for youth to take an active role in creating their own destiny. Each kid in attendance had written an essay on their personal efforts to “Be More” despite the troubles that they have been faced with. The kids joined Melo in handing out food to families in need at a local Boys & Girls Club and had box seats to witness Melo dropping 32 points in Denver’s big win against Los Angeles. On Friday Melo took the kids out to lunch and discussed the “Be More” approach to life. The kids were able to share some of their own stories and gave Melo advice on how he can encourage more kids to “Be More”. The Air Jordan Brand is always proud to see members of Team Jordan making a difference within their communities.

Week 12: Customer Relationship Management (CRM)

     Customer relationship management (CRM) is a strategy for managing a companies relationship with customers, clients and sales prospects. It uses technology to organize business processes and sales activities but also those for marketing, customer service and technical support. The goals are to find, attract and win new clients also get back former clients back into the company and reduce the costs of marketing and client service. Customer relationship management describes a company wide business strategy including customer relationship departments as well as other departments. The Air Jordan Brand uses the social media like facebook. The Air Jordan Brand was pleased to announce the launch of their official facebook page. They were excited to provide their fans with a destination in which they can communicate amongst each other and directly with the Jordan Brand about anything and everything about Jordan.  Be sure to like Jordan to stay up to date with the latest happenings, sneak peeks and special opportunities from the brand. Check The Air Jordan Brand out at http://www.facebook.com/jumpman23.

 

Week 11: Integrated Marketing Communication

     Promotion is one element of integrated marketing communication. Promotional activities include advertising by using different media, sales promotion, trades promotion and personal selling activities. It also includes internet marketing, sponsorship marketing, direct marketing, database marketing and public relations. Integration of all these promotional tool, along with other marketing mix is a way to gain an edge over a competitor. An example of this integrated marketing communication is the Air Jordan Brand. They just came out with a new commercial with Carmelo Anthony promoting their brand. Their new commercial for the Melo M7 is broadcasting tomorrow but they got the sneak peek for you today. In this TV ad they featured Carmelo Anthony’s unique ability to carry a team on his back and “do whatever it takes” to lead his team to victory. Whatever is needed you can depend on Melo to deliver. We know that he can ball with the best of them on the court but Melo’s skills don’t stop there. Take a look at the commercial to see what I mean.


http://www.youtube.com/watch?v=q041NE-foN0

Week 10: Product Concept

     Product concept is of course the product itself. We already know from our early definition of marketing that we are not only in the business of selling products but in the business of satisfying customers needs and wants. As for Air Jordans some consumers want to buy the sneakers because they just like the style and the color. Or sometimes because people around them buy them. Some customers buy it because they actually need it to play basketball they like the feel of the sneaker and if its comfortable. The Air Jordan sneaker is very comfortable but most people rarely use it to play basketball and just use it to go to school. The sneakers always comes in a black sneaker box so customers know its Air Jordans and not any other sneaker. The sneakers are sold almost everywhere anybody goes. So the Air Jordan sneaker just doesn't mean playing basketball but for some people it means style how you wear them and if customers collect all of the Air Jordans. The actual product itself is the sneaker and the core product is it prevents your feet from hurting and its comfortable. The product concept for Air Jordans is very important for the Jordan Brand because they always need to know what the customers want.

Week 9: Sales Promotion And Personal Selling

     Sales Promotions are inducements or gimmicks whose purpose is to encourage the purchase of a product or service immediately. Unlike advertising where the objective is usually to influence long term buying behavior. Sales promotions are concerned with the short term. Some examples of sales promotions aimed at consumers are coupons, free samples, refunds and rebates, demonstrations and premiums. The Air Jordan Brand uses this formula in most of their sales with sneakers. The new black and white Retro 2 Air jordan is on sale now for 134 dollars but usually all new Air Jordans cost around 150-180 dollars. They want people to buy the new sneaker now because its the first time they have come out with this sneaker. On the Air Jordan website if you buy the new Retro 2 black and white with any jordan tracksuit over 75 dollars they will offer you free shipping anywhere in the United States. As you can see the Air Jordan Brand always uses sales promotions to their advantage. 

This Is A Air Jordan Package That Cost 210 Dollars For Two Sneakers

Dominate Another Day

    Did you know that Miami Heats star Dwyane Wade moonlights as a superhero that seems to be made from part Tron and part Iron Man after his duties on the basketball court? As Jordans Brand latest campaign revealed Dwyane Wade had just delivered the king to the court (a code for King James perhaps?) and is well on his way to the court where everyone is waiting for him. Incredible stunts which includes sweeping his way under a gas truck and of course flying. Clearly Wade has made it just in time to pick up his jersey and is well on his way to dominate somewhere else. As for what will happen tomorrow keep checking back for another installment of “Dominate Another Day”. Here is the link to the video:


http://www.youtube.com/user/jumpman23?v=QcX7yJSttrU&feature=pyv&ad=6053531459&kw=dwayne%20wade%20commercial

Air Jordan Retro 2 QF

     This colorway for the Air Jordan Retro 2 hit selves October 22. The Air Jordan Retro 2 always brings back memories of MJ’s most explosive season in 1986-1987 when he averaged a staggering 37 points and won his first slam dunk title. It brings the launch of the black and white Air Jordan Retro 2 QF. Marking the first time that this refined colorway has been released on any Air Jordan 2. A glossy faux lizard overlay and suede upper adds some flash to these original classics. 

Air Jordan Retro 2 Black And White

Week 8: Advertising And Public Relations

    The Air Jordan Brand prides itself with public relations. They like to communicate with the media and the public to see want they think about their product to see how well they are selling and doing as a whole. One example of this is when they came out with the Air Jordans 23. They sold their sneakers for 230 dollars and each store had only 23 pairs of it. The Air Jordan is a powerful sub brand with a great story and by making all the key elements of the public relation campaign revolve around the number 23 Nike is making it very easy for people to remember and share the story. The spokesman for Air Jordan said to the public that "they wanted to make the consumers more hungry to buy it and to be even more into with the brand".  He went on to say "limiting the amount of pairs available to only 23 per store a feeding frenzy is bound to happen, and with it the icing on the cake that media courage would expand their sells after the 23 pairs would run out". So as you can see that the Air Jordan Brand knows how to get to the media and knows how to advertise their product. 

The Air Jordans 23

Week 7: Retail

     I interviewed a salesperson in a Footlocker store about Air Jordans. Her name is Jasmine Martinez i asked her a couple of questions about the product and the different kind of sales they do with the sneaker and how her Footlocker markets the Air Jordan Brand. The first thing she told me was that "a good salesperson knows the product their selling and understand what the customer wants". She went on to say that she continually works because your only as good as last month's sales. She went on to speak about the product she told me that "most of the people that buy sneakers here always buy Air Jordans because of its popularly" so when a sneaker is not selling good they drop it to a low price so they could get sell it. She also said that when new Air Jordans come in they usually sell within about 2 days because they get a limited stocks of it. She told me that the way her Footlocker markets Air Jordans is that they always put up a big sign about the sales it has or a new sneaker thats about to come out. They have all the Air Jordans in the front of the window and have it as soon as you walk in so they can attract customers. The last thing she told me was that all salespersons always try and get you to buy other things even though you don't to and you really don't want to listen to them. She told me "its all part of the job".

Week 6: Consumer Decision Making

     The Air Jordan Brand works on the price and quality of the sneakers so consumers can buy their sneakers. Air Jordans do cost a arm in the leg but it is worth it. The cost of the sneakers range from 120-175 dollars. They  have created new looks to excite the "bored consumers". They always stay ahead of the other brands. They bring in consumers by having sells around the holidays. The quality of the shoe really what makes the consumers buy. It supports the ankles well when running and jumping. So when consumers see their favorite athlete wearing Air Jordans and see how good they play the consumers think that the sneakers help them play better but in reality it doesn't. So Air Jordans also uses athletes so sell it sneakers to the public. 

Inside of a Air Jordan store

Week 5: Global Marketing

     Nike swung into action even before most Chinese knew they had a new hero. "Air Jordans understands why Chinese are proud," says Li Yao a weekend player at Swoosh bedecked basketball courts near Beijing's Tiananmen Square. Such clever marketing tactics have helped make Air Jordan the icon for the new China. According to a recent Hill & Knowlton survey Chinese consider Air Jordans the Middle Kingdom's "coolest brand". Air Jordans products turned out in factories across Asia has become the symbol of success for China's new middle class. Sales rose 66 percent last year to an estimated 300 million dollars and Air Jordans is opening an average of 1.5 new stores a day in China. Yes a day. The goal is to migrate inland from China's richer east coast towns in time for the interest in sports that will accompany in Beijing. How did Air Jordans build such a booming business? For starters the company promoted the right sport which is basketball and launched a series of inspired ad campaigns. The story of how Nike cracked the China code has as much to do with the rise of China's new middle class which is hungry for Western gear and Air Jordans has the ability to tap into that hunger.

A Chinese student poses in front of a poster of Michael Jordan who promotes Air Jordans in China.

Week 2: Strategic Planning- Continue

    As I mention in my older post Air Jordans is coming out with a new sneaker called Jordan Take Flight in the fall thats not the only sneaker thats coming out in the fall. They are coming out with a Ladies’ Air Jordan 2 Retro. Air Jordans wants to pay homage to the ladies who are rocking Jordan kicks on the daily and they teamed up with New York based creative visionary Vashtie Kola to do just that. As an a fashion designer, video director and artist Vashtie has a fresh take on the classic Air Jordan 2. This limited edition shoe brings a lavender and deep purple color to deliver a more feminine style. The details didn’t go overlooked either with hints of silver into the laces to complement the metallic midsole. 

Vashtie Kola Holding The Retro's 2's

Week 4: Marketing Environment

     With the recession in full affect the Air Jordan Brand has not been affected by it and by the looks of it had a positive affect on the company. They had sales of 1 billion dollars in 2009 and is 5 percent of Nike’s overall revenue. Their net revenue as of May 2009 was 19.2 billion. Also 3 out of every 4 pairs of basketball shoes are Air Jordans and 86.5 percent of basketball sneaker sales are Air Jordans. Most sneaker companies are running out of business because they don't have enough money to adapt to marketing environment and change the way they do things. So the bigger companies like Air Jordans are now even more powerful and taking over during the recession. In 2009 Air Jordans commands a staggering 75 percent of the market share of all basketball shoes sold in the U.S. according to SportsOneSource. Not only did the recession have a positive affect on the number of sells but it helped them focus on the "green" aspect of the sneaker which is a more cheaper way useful way to sell them. Officially the Air Jordans 23 is the latest in the three year old line of Nike Considered shoes the company's line of green footwear. So whether the recession here or not Air Jordans have adapt to it.

Corporate Irresponsibility

     A Nike commercial in which Kobe Bryant of the Los Angeles Lakers leaps over a moving car got a lot of attention on the internet. It sure looks real but it's not. Bryant described the sequence to the Los Angeles Times as "Hollywood, baby". He goes on to say "Hollywood. What do expect our here? If Rambo can take on a whole army, I can jump over an Aston Martin." he told the Los Angeles Times. In the ad released on Bryant's website KB24.com Bryant tells viewers to not "try this at home" and afterward says to teammate Ronny Turiaf "That is how you jump over an Aston Martin boy that's how you do it". The video can be seen here http://www.youtube.com/watch?v=BIWeEFV59d4.

Country Of Origin

1. Sneakers- Vietnam
2. Shirt- Pakistan
3. Shorts- Cambodia
4. Socks- No Label
5. Boxers- Costa Rica
6. Fitted Hat- U.S.A.

Week 3: Social & Ethical Responsible

     Air Jordans really are good basketball shoes. The reason Air Jordans were originally made was to provide a supportive but lightweight basketball shoe. Their fashion statement is not the only reason Air Jordans have remained so popular all these years. Novice and professional basketball players perform well when wearing these sneakers. Basketball teams all over the country outfit their players with these sneakers. They will not help a basketball player hit that three pointer or make that amazing block but they sure can provide great support for the feet as players run and jump on the basketball court. It is always interesting to look at a product that is so incredibly popular among consumers. Air Jordans have remained a best seller for decades now. Their excellent quality and timeless look are the reasons why they have remained so popular with both the young and old.


     Jordan's greatest responsibility as a global company is to play a role in bringing about positive systemic change for workers within their own supply chain and in the industry. When they look at our overall footprint in the world the needs of nearly 800,000 workers in their contract supply chain overshadow any other group.They run the course  from establishing codes of conduct and pulling together an internal team to enforce it to working external bodies to monitor factories and engaging with stakeholders. What they learned after nearly a decade is that monitoring alone hasn't solved the problems. And many of the problems are recurring in the industry. Their focus now is getting to the root of the problems. We're looking end to end from the first phase of our product creation process to the outcome in the lives of workers in the factory that bring our product to life. 

     

     Their Code of Conduct elevates the expectations we have of our factory suppliers and lays out the minimum standards we expect each factory to meet. They developed their Code in 1991 as a first step in their effort to improve working conditions in our contract factories. In 2010 their Code has evolved to provide additional consistency across the Jordan Brand and in the industry. It remains a straightforward statement of values, intentions and expectations meant to guide decisions in factories. They require factories to post the Code and have strengthened the standards by which they measure compliance. They share their Code and the accompanying standards to share their journey: keeping factories, workers, the industry and themselves focused on the high expectations they have set and allowing others to understand how they operate and how they can adopt refine or build on their experience.

Week Two: Strategic Planning- Continue

     The Air Jordan Brand is coming out with a new sneaker called the Jordan Take Flight this fall. Whether you are landing from your leap at the free throw line or coming down off of a post move in the paint it’s important that your shoes deliver the impact protection you need to power through the game. With the Jordan Take Flight they deliver on that need with performance cushioning reigning supreme. For the first time ever in a pair of Jordans they are giving you ultimate impact protection through full length 360° Max Air. Its high cut will help you from getting crossed up and as a lightweight performance shoe liftoff is encouraged. Its going to cost 110 dollars. They also have the Jordan Take Flight video http://www.youtube.com/watch?v=KcuOsDB0IVY.

The New Jordan Take Flight

 

Week 2: Strategic Planning

     The Air Jordan Brand uses multiple strategies to sell its brand such as billboards, fundraisers, commercials the most popular and recent ad campaign was called "Become Legendary" starring Team Jordan and All-Star athlete Dwyane Wade. “Nightmares Never Sleep” headlines a marketing campaign debuting the Air Jordan 2010 worn by Dwyane Wade in the ad. The television spot takes viewers to another world view of a basketball player's “nightmares” when dealing with the unstoppable All Star Dwyane Wade on court during an intense basketball game. Wade was the first Team Jordan athlete to debut the Air Jordan 2010 on court during last year’s All Star weekend.

                                           http://www.youtube.com/watch?v=EcXvVUw7Ha4
      


     “We chose the ‘Nightmares Never Sleep’ spot to debut the Air Jordan 2010 and to show how unstoppable Dwyane Wade is as a basketball player,” said Sean Tresvant Marketing Director for Jordan Brand. “The ad also continues the Brand’s celebration of the 25th anniversary of the Air Jordan basketball shoe". Created by W&K New York “Nightmares Never Sleep” aired on major networks including ESPN, TNT, ABC and in other channels nationwide. Print ads was also be featured in Antenna, RISE, Slam, XXL, Dime, Bounce and Sole Collector in the January-March issues.

History And Mission Statement

     Early in 1984 Nike was a struggling shoe company. The running shoe that has fueled their sales in previous years was slowly dying and they needed a way to reinvent themselves in order to stand out to another markets. At the same time rookie player Michael Jordan was already endorsing several products. Meanwhile Nike hoped that his appeal would rocket sales but Jordan had other ideas. He had always preferred Adidas or the Converse shoes and hoped to sign on with those companies. Converse with Larry Bird and Magic Johnson on board as spokesmen were not interested in offering a better deal than Nike and Adidas wasn't interested at all. While Jordan himself did not see the significance of Nike's offer his agent David Falk saw a opportunity in Nike's offer to create a new line of shoes called "Air Jordans" and told him to give Nike a chance. 

Air Jordan Brand Logo

Nike signed Jordan to a $2.5 million deal for 5 years plus royalties and other benefits. Peter Moore created the first AJ Logo with a basketball with wings lifting it. The introduction of the AIr Jordan I turned the athletic shoe industry upside down. Before the AJ I most basketball shoes were white but the bold black and red styling of the Jordan I flouted this convention. The NBA banned the shoe from the league in response but Jordan wore them anyway getting serious fines of up to $5000 a game. Nike was more than happy to pay these to keep the shoes on Jordan's feet and in the public eye. All this controversy and Jordan's numbers that year put the Air Jordan line on the road to becoming a household name.

The First Air Jordan Original Release (OG)

The Air Jordan line is now sold by the Jordan Brand subsidiary of Nike.  Collectors classify the Air Jordan line by release year and model: Originals (OG), Retros (shoes that have been recreated for sale to the general public), Retro-pluses (Retro +, Air Jordans that are similar to the Original product, with more up-to-date changes), Player Exclusive (PE, Air Jordans that are exclusive to certain athletes in the realm of sports) and Samples. Air Jordans Mission Statement is: "To bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete."