Faculty of tourismCustomer Relationship Management- Tài liệu tham khảo | Đại học Hoa Sen

HOA SEN UNIVERSITY Faculty of tourism
Customer Relationship Management
Topic: CRM OF NIKE AIR JORDAN BRAND
Subject: Customer sevice management
Lecturers: Dang Truong Thuy Anh
Student name: Hoang Tran Quang Dai 1 Thank you
I would like to thanks miss Dang Truong Thuy Anh for giving me more educated
about the CRM subject and to complete my report . By the time, I am participate in
your class I have learned a lot of useful knowledge not only in the subject but also
share the experience that the forerunner have from work , study abroad . This will
helped me a lot for my future and from the bottom of my heart thank you .
The CRM subject it’s very new and interesting for me personally contains many
factors that could help me in marketing specialization . However , my knowledge
about the subject still need to be fix and cultivate more , i have bring everything I
have learned from class into the report but it might be missing and imcomplete at
some point , I hope that you will examine and giving me feedback so that my
report became more wrapped up . 2 Catalog
Part 1 : Overview............................................................................................................................................................3
Introduction about the Air Jordan brand.........................................................................................................................3
1. Area of business activities of the brand......................................................................................................................3
1.1. Achievements , Highlights of the brand...................................................................................................................3
1.2. Brand organization structure....................................................................................................................................4
1.3 . Brand vision and mission........................................................................................................................................4
1.4 . Brand logo...............................................................................................................................................................5
Part II: CRM STRATEGY ANALYSIS..........................................................................................................................6
2.1. Overview of CRM strategy of the brand..................................................................................................................6
2.2 . Factors impacting CRM strategy............................................................................................................................7
2.2.1 . Microenvirontment...............................................................................................................................................7
2.2.2 . Macro Environtment..........................................................................................................................................10
Part III : Conclusion......................................................................................................................................................14 3 Part 1 : Overview
Introduction about the Air Jordan brand
The Air Jordan brand was a smaller brand of footwear and sports equipment
established by Nike in April ,1985 exclusively for Micheal Jordan whose being known
as the “Greatest Basketball player ever” . Although being known as a smaller brand of
Nike but “Jordan Brand” have made massive impact and bring back so many
achievement for the “Giant of sports ” . .The result of how the brand being so successful
was a symbiotic relationship between Micheal Jordan and Nike, and together they grew
into two of the most popular sports brands in the word . Which goes beyond the actual
game of basketball and into sports , entertainment , streetwear culture , fashion and lifestyle.
1. Area of business activities of the brand
Manufacturing business for sports wear , fashion , accessories
Building customs product for sports Player , influencer , consumer
1.1. Achievements , Highlights of the brand 4
In 2022 , Jordan Brand has achieved the FN Achievement award for Brand
of the year in New York City and letting one of them ambassador NBA
superstar Carmelo Anthony doing the speech . Also in this year Jordan
Brand eclipsed 5$ billion dollars in sales for Nike Inc.’s fiscal. But this is not
the first time Jordan Brand brought success for Nike .
Between 2019-2020 . By using the Jordan Brand Nike was able to catapult
in sales and market share to levels well beyond its rival . Nike’s 40 billion
Dollars revenue was 60% higher than their rival Adidas. According to
Forbes this success was built on the foundation laid by the Jordan brand
1.2. Brand organization structure
Being a brand that was owned by Nike in the first place the Jordan Brand still run
with a strong preference for geographic and regional divisions matrix
oganzizational structure . Including global coporate leader ship headquartered in
Beaverton , Oregon . Senior executives head seven functional groups that
manage operations in the USA , Americas , and Asia Pacific . The brand also has
reigional headquarters in the Netherlands that manages Europe , Middle East , and Africa . 1.3 . Brand vision and mission
The mission of Jordan Brand as one of the world’s most successful footwear
brands , focuses on “ flight” as it aims to support creative potential and influence
style in relation to basketball ,acting as a “ bridge” between sport and life culture 5 1.4 . Brand logo
Air Jordan being iconic especially by the “Jumpman” logo base on the silhouette
of the basketball legend Micheal Jordan . In 1984, Nike decided to name their first
shoes made for “Mike” Air Jordan and trademarked this famous brand in 1985 .
The first 2 basketball shoes of the legend which is the called the Air Jordan 1 and
the Air Jordan 2 was still using the basic Nike Logo. Until 1988 , the third line of
the shoes came out with the “Jumpman” logo was first being introduced and became Iconic until todays . Slogan AIR JORDAN : “ ”
Who said man was not meant to fly 6
Part II: CRM STRATEGY ANALYSIS
2.1. Overview of CRM strategy of the brand
Air Jordan was a brand of Nike that will lead to the strategy will also be
similar to the “ Mother brand”. As a brand with a huge number followers and
fans , Air Jordan is very ambitious about interaction with customers . At the heart
of its customer relationship management lies creation of a community , in other
words , it’s the lifestyle for the brand’s customers. Whereby figuring out their
needs it tries to help them being better at what they love to do . To serve this
target , Nike has established some programs such as Nike Fuel and Nike + , and
most recently is the Nike SNKRs which also included for the products of the Air
Jordan Brand . These Programs help to collect data and store data relating to its
customer trends , needs , and other personal information .
For example , throughout the Nike’s Fuelband , the brand is able to gather a great
amount of information where the user has it on , how far he or she walks , how
often are the owners work out , or even the heart rate of the owner it can easily measure as well .
The brand has also made a lot of collaboration with other Giant in fashion such as
Dior , OFF-WHITE,etc.. making the products even more hype in order to sell it at
a bigger price than the normal version of it .
But what really stand out it’s the Nike+ system allowed the Brand to offers loyalty
customer specific benefits such as knowing the “early” released date of the
upcoming product to keep the customer to continue shopping with them 7
2.2 . Factors impacting CRM strategy 2.2.1 . Microenvirontment 2.2.1.1 Enterprise
Brand reputation : Air Jordan has successfully build a trademark of their own and
have gave trust to customer throughout 38 years experience in the industry of
Sports wear , sport accessories .
Distribution system : Jordan brand does not owned any manufactured factory ,
however they use “3rd party” contracts with manufacturers mostly located in China and Vietnam .
Sales system : The strategy is mainly knowning about what customer really want
and Nike has done it with ease by training employess with Nike’s Lean Thinking
making their employess being able to learn evenmore about their products and to
continue the success Nike also applies this strategy to the Jordan brand as well.
The leaders of Nike does not stop by the success of one strategy , they created
Nike.com is an internationally online store that generates Ecommerce net sales
primarily in the USA as well as the United Kingdom and South Korea.
=> After 38 years of the Jordan brand , In 1984 ,“Nike” from a brand
predominantly known for long-distance running shoes and was no match for
Converse and Adidas at any other category at that time to a “Sport Giants” by
signing the rookie Micheal Jordan and they succesfuly slipped onto popular culture as the edgy must- have sneaker 8 2.2.1.2 Suppliers
All of the Jordan Brand manufacturing facilities are located in Asia , mostly in
China and Vietnam . It’s not hard to understand because these two are the world
leaders in manufacturing “Rubbers” the material that mainly use on an Air Jordan sneakers
But instead completely owned the manufacturing facilities the brand chose to use
an 3rd party with manufacturers similar to others brand like Adidas and Under
Amour .The Major suppliers include Pol chen , Pt Pan Brothers , Fulgent Sun
International , Delta galil and Eagle nice and other smaller suppliers . Materials Origin Suppliers name name Rubbers Vietnam Pou Chen corp. China Fulgent Sun group Thailand Delta Galil industries
=> The reason that Nike has all of its major factories in Asia is due to the low cost
of wages and high quality materials with the ability to produce high quality
products for a fraction of the cost due to in North America .
Nike has more than 100 suppliers in Vietnam , with 96 factories concentrated in the
southern region . Jordan Brand is a subsidiary of Nike , and like other big
footwear and sports brands , they have factories located in China where they make
their products . That doesn’t mean all Jordans imported from China are fake . In 9
fact , many authenthic Jordans sneaker are made in China , which is also home to several Nike factories
2.2.1.3. Marketing intermediaries
Nike puts up their products for sale in 3 main ways : retail distribution , wholesale
distribuition , and licensee distribution, In Vietnam, sportswear retail stores can be
seen in almos every corner commonly in major cities like Ho Chi Minh and Ha
Noi. Nike offers the most amount of products in more marketplaces thank any
other competior sportswear company . They also can grasp more and more
customers for their business. Knowing the fact that there are considerably large
groups of customers who ready to buy the products because of their sports idol ,
Nike has been investing billions dollars contracts to the biggest sports stars like
Lebron James, Kobe Bryant and espicially Micheal Jordan and create the Jordan
Brand . These endorsers completely dominate on so many social media platforms
with their enormous number of followers and deliver the newest product’s image to new customers. 2.2.1.4 . Customers
Vietnam ‘s Gen Z is filled with adolescents who are greatly enegetic and always
ready to express themselves through apparel and footwear or others ways
eventually , they tend to have high concious about their looks and appearances,
espically those in Hanoi . Hundred s of Nike stores “grown” in many cities like Ho
Chi Minh and Hanoi . The sports Giant also launched the “AIM DA MAX”
campain in 2019 . It’s a fascimatimg event for “sneakerheads” to seek for iconic
Nike sneakers through AR virtual reality technology, whtihc is available in seven
different locations across Ho Chi Minh City , Hanoi , Da Nang . The event quickly
received thousands of attendess after a month .
As time flies , more and more cosumer come to buy Nike and Jordans products and
like that they becomes thriving in the marketplace . Their designs can satisfy both
genders of all ages. Nike really knows how to satisfy customers by utillizing
customers lifestyles aspect to keep on attracting attention and love of the products
frome their buyers and potential customers 10 2.2.1.5 . Competitors
Nike is currently the world’s biggest sportswear seller along with Adidas and New
Balance . They are currently leading the race of footwear industry , but there are
upcoming runners like Puma , Under Amour having so much potential to grown
even stronger. Nike’s brand still remains to be the most superior compared to any
other brand . Since then , they are holding the most share in the market . At the
second place theres no other brand than the only brand that have a timeless rivalry
with Nike in the name of Adidas . Both have a long history, However Nike remains
undefeated due to the overwhelmings sales of their products. In 2022 , the total
revenue of Nike was 46.7 billion US dollars and expected to deliver 50.3 billion
Us dollars total revenue for the end of 2023 . Despite the gap between Nike and
other brands or aguably huge for now but Nike still need to stay aware because
Adidas coming at Nike strongly by signing contract with many NBA all star to be
the ambassador for their product like Derrick Rose , Damian Lillard , James
Harden. Under Amour countinue the success of the signature shoes made for NBA
superstars Stephen Curry by creating a smaller brand name “Curry” exclusively for
the 4th time NBA champion . Especially with a marketplace like Vietnam Nike not
only facing other foreign brands but also have due with local brands like Bitis .
Dincox . In couple of recent years local brands of Vietnam have built a “stand” in
consumer mind for having a great design at a medium budget and can compared with worldwide brand. 11 2.2.2 . Macro Environtment 2.2.2.1 Demographic
Nike’s main target is young people from the age of 15-39 for both genders , aside
from that , the brands also caters into education levels nationality , race , religon
and levels . The occupation might be extensive but still mainly for sporst players
and athlete . People that looks to wear Nike clothing want them to be looking
“sporty” and attractive ( Gaille , 2015) 2.2.2.2 Economic
Nike is a Giant in producing sport products that impacts the economy locally and
across the world by creating job opportinities for people . Vietnams’ cheap labor
cost compared to Eu and US , the brand managaed to lower the manufacturing cost
of products to be competiive and appealing to the consumer . Therefore , Nike got
accused of cheap labor for running a “sweatshop” where they employed a large
amount of wokers paying at low wages that they could use to survive through
pandemic and the price increase in materials and labor cost in other religion ,
customer standards literally can impact the sales of Nike’s products . The result of
this make Nike face diffculty with cheaper products and fake brands , low cost and
medium budgets products are preffered over the Products of the brand 12