PLACE

Type of Distribution for Air Jordan

The Air Jordan can be found through a variety of different outlets. As I said before, the Air Jordan line is a sub brand under Nike Inc. making Nike the manufacture of the Air Jordan brand. Nike distributes the Air Jordan through various footwear and sportswear retail stores such as Foot Locker, Champs, Finish Line and many local sneaker stores. This type of distribution channel is called indirect distribution. When using indirect distribution a company must find intermediaries to sell their product. For example, Nike supplies a sportswear retail store such as Foot Locker who then sells the Air Jordan to the final consumer. Indirect distribution cost less to establish and can often help manufactures serve customers needs better by providing quality customer service (254). Although the majority of Air Jordans are sold through footwear stores, Nike has its own retail store called Niketown. Air Jordans can also be purchased directly through the Nike website. This channel of distribution can be described as direct distribution. In direct distribution a company sells its product directly to the final consumer without intermediaries. This gives the company more control over their product and can give their product more emphasis than other retailers might do (251). Furthermore Nike not only distributes the Air Jordan indirectly to its consumers but also directly.

Type of Intermediaries
According to William D. Perreault, author of essentials of marketing, an intermediate is defined as someone who specializes in trade rather than production and plays a role in the exchange process (10). Air Jordan has many intermediates; it supplies many footwear and sportswear retail stores such as Footlocker, Champs, Finish Line, Eastbay and Footaction. There are also a plethora of websites where exclusive and rare Air Jordans can be found. Websites such as pickyourshoes.com, ubiqlife.com, flighclub.com are the most popular among consumers.

Main Distribution Activities

Nike has established a variety of ways of distributing the Air Jordan. Moreover, Nike distributes the Air Jordan to many retailers and web-based ecommerce but also directly through Nike stores and website. Being a Nike employee myself, I will explain our process of receiving our products.

Niketown Miami receives shipment Monday through Friday at 9:00 am by means of FedEx Ground. An employee then scans each box with a handheld terminal (HHT) which registers the merchandise inside the boxes into Niketowns system. The merchandise is then taken out the boxes and stored inside Niketowns warehouse. Each product has its own universal product code (UPC) that lets Niketowns information system know where and when the product was received (289). This is all executed in the most efficient and effective way possible to reduce the total cost of physical distribution (276). Considering consumers feel the need to inspect for quality and suitability and also are willing to make a special effort to find the Air Jordan makes it a Specialty product (210). This is why Nike does not release an extensive amount of Air Jordans throughout the year. Although when Nike does manufacture a new Air Jordan it goes through the same physical distribution as any other Nike product.

Market Exposure
Nike distributes the Air Jordan through various retailers, websites, and specialty shops that are located throughout the world. Although the Air Jordan can be found in almost any major footwear store, you will not see the Air Jordan being sold in off-price department stores such as Marshalls, T.J. Maxx, or Kmart. This in turn gives the Air Jordan an image of a specialty product that is sold in selective locations. Therefore Nike uses selective distribution and believes it is an ideal market exposure (262). In conclusion, Nike carefully seeks out retailers and specialty shops that will provide great customer service and will devote special attention to the Air Jordan (298).

PORMOTION
Promotion Methods used for Air Jordan
In 1984 Michael Jordan signed a 5 year, $2.5 million dollar endorsement deal with Nike. On September 18, 1984 Nike introduced the ground breaking Air Jordan I in a black and red color way that was later banned by the NBA

because it violated the NBAs uniform regulations. Although the shoes were banned from the NBA, Jordan continued to wear the Air Jordan I and was fined $5000 each time he wore them. Nike gladly paid the fine in return for the controversial publicity (324). Consequently, every kid on the playground wanted a pair of Air Jordans. It sparked awareness of the product which is the first objective in the AIDA model (329). The Air Jordan became the industries bestselling basketball shoe. Nike then made a 30 sec. commercial that simply said. On September 15, Nike created a revolutionary new basketball shoe. On October 18, the NBA threw them out of the game. Fortunately the NBA cant stop you from wearing them. The Air Jordan continued with its success, in 1988 the Air Jordan III were released along with the Mars and Mike ad campaign. The Mars and Mike ad campaign featured director Spike Lee playing the role of Mars Blackmon; one of the characters from his movie Shes gotta have it. These ads were aired during prime time television hours. The campaign is still one of the most successful ad campaigns of Nike. This method of Promotion can be described as Mass selling. Nike targeted a large number of potential customers by using one of the greatest basketball players as an endorser of the Air Jordan (323).

Current Promotion Objectives

The Air Jordan continued with its success even after Michael Jordan retired. Seven years after his retirement, Nike realizes the Air Jordan needs a new endorser for its products. In 2010 Nike launches the Dominant Another Day ad campaign, who features point guard Dwayne Wade from the Miami Heat as agent D3 and comedian Kevin Hart as specialist H. Nike uses this ad campaign to provide awareness and to grab the attention of its potential consumers (329). The objective is to inform the consumer about the new Air Jordan 2011 (328). The ad campaign features specialist H describing all the new features of the shoe in a funny secret agent type of way. The ads also points out the unique features, and makes it seem as though you need the shoe to be quick and explosive, furthermore persuading the consumer in buying the product (328).

Actual Message used and Medium used

The first Air Jordan Commercial was used as pioneering advertising (383). No other basketball shoe at the time matched the design of the Air Jordan I. Moreover, no other basketball shoe was in black and red two tone color way.

In 1990 Michael Jordan was on his way to winning his first NBA championship, 1990 was also the year the Mars and Mike ad campaign released the its gotta be the shoes commercial. The commercial starts off with Mars Blackmon asking Jordan what makes him the best player of the universe. Mars goes on by asking if its the vicious dunk or the Haircut or the shoes. Michael repeatedly answers No Mars! but Mars continues asking repeatedly is it the shoes. This ad uses a persuasive technique towards the potential consumer by mentioning that its gotta be the shoes, making it seem as though Michael Jordan wouldnt be as great as he was if he didnt have a pair of the Air Jordans (330). In addition, the commercial ends with a black and white text stating Mr. Jordans opinions do not
necessarily reflect those of Nike, Inc.. This statement clearly emphasizes that Nike believes and markets the product as being a tool you need to have to become a great basketball player. http://www.youtube.com/watch?v=5_5EQd34WHM

Recommendation

In my opinion, Nike has marketed the Air Jordan flawlessly from day one. From the controversial black and red Air Jordan I color way to the dominant another day ad campaign. The major problem I feel Nike has with the Air Jordan is the price! The first Air Jordans sold for $65, not even half of what the new Air Jordans are sold for today. In 2002 the Air Jordan XVII were released. The shoes did not come in a regular cardboard box but in an embossed jumpman metallic briefcase. The briefcase also included an interactive CD-ROM. At the price of $200 for one pair, the Air Jordan XVII became the most expensive basketball shoe ever. The problem resides when all the marketing for the Air Jordan was targeted to young hip kids that idolized Michael Jordan. Many of these young fans lived in low income households and could not afford a pair of Air Jordans. Nike was criticized but it did not stop them from overpricing the sneakers. The overpricing did not stop there. The Air Jordan XXIII were the most innovated and complex Air Jordans to date. It featured a water-based bonding process that allowed the carbon fiber plate of the shoe to be attached without the use of solvent based cements. Moreover, the Air Jordan was not just a complete innovation but it was also a record breaker. The Air Jordan was sold for $230, the most expensive basketball shoe ever sold.