Culty of tourism customer relationship management topic crm of nike air jordan brand

Part 1 : OverviewIntroduction 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 Mic

HOA SEN UNIVERSITY

Customer Relationship Management

Subject: Customer sevice management

Lecturers: Dang Truong Thuy Anh

Student name: Hoang Tran Quang Dai

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

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

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

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

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”

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

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 “3 party” contracts with manufacturers mostly located in China rd

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

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 3 party with manufacturers similar to others brand like Adidas and Under rd

Amour The Major suppliers include Pol chen , Pt Pan Brothers , Fulgent Sun International , Delta galil and Eagle nice and other smaller suppliers

=> 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

Materials

name

name

Rubbers Vietnam

China Thailand

Pou Chen corp.

Fulgent Sun group

Delta Galil industries

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

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 4 time NBA champion Especially with a marketplace like Vietnam Nike not th

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

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

2.2.2.3 Natural

Nike use many different kinds of material to make all of their products , but rubber takes the majoruty of productiong mass In 2018 Vietnam is the world;s third largest producver and exporter of the material (Christiansen ,2019) As rubber rise

in prices , Vietnamese rubber manufacrers reported large revenue and profit gains Rubber prices in 2023 expected to go even higher and rises strong , the analysts have explain due to robust demand and limited supply (VNS ,2021) Nike barely take the advantage of this high-yield natural rubber production to flourish in Vietnam As for result Nike now uses over 70% evironmentally preferred rubber

in their shoes (OSU ,2015) This specific eco-friendly rubber is made by using vegetable oils instead of human made synthetic oil and toxic chemicals Nike’s evironmental and sustainability allow them to address climate change , which impact on supply chains and the suitability of Nike products in diffierent places Firms are threatening Nike by placing pressure on the entie sector to enhance its evironmental efforts (Rowland ,2017) They are now acknowledged as one of the best in the industry at usuing sustainability as a strategic growth engine by reducing the negative impact to the Earth environtment , ehancing product innovationt and reforming production Nike converted 54 million pouns of industrial trash into premium material in 2015 ( Imran,2017)

2.2.2.4 Technological

Technology has became one of the critical reasons for Nike’s success Through technology and innovation , the brand assures that they will lead to improved athletic performance The lastest nike innovation is Nike fit , a foot-scanning app that use data analytics ,artificical intelligence and recommendation protucts that could be the idel fit for each individual (Nike News , 2019) Throughout these innovations , Nike’s shoes intergrated a tech that can help monitor your health activities , especially Zoom air , air Max , Lunarlon these technology help to support the users to improve their perfomance Nike being well known for how masterful they are in using social media to raise brand awareness and connect with potential customers

2.2.2.5 Political

The Vietnamese Government avid to make it easier for Nike to operate in Vietnam

in long terms ( VNA,2019) Vietnam present President Vuong Dinh Hue has made

an effort to improve foreignt investors’ business investmen environtment and development The government will not pursue any policies on trade surplus and monetary manipulation with the U.S Government hoped that Nike woluld likely to help Vietnamese enterprises strengthen their capabilitites to joint the group’s supply chains by expandin the list of raw material souces in Vietnam (VNA,2019) Furthermore , expandin free trade policies allows for greater international market penetration (Rowland,2017) By diversifying its supply chain to include

manafacturing facilities in other Asian countries such as Vientma and China The