When is the Price Too High?

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Basketball shoes endorsed by famous athletes are the latest fix. The shoe stores announced that the shoes will be available for sale on a specified date. Unsuspecting parents are approached with the latest proposition to spend more than is required to keep a child's feet comfortable, protected from the elements and free of dirt and debris. Money for this purchase could be from a budgeted source, however, I do not think this is the case.Who are those who NEED to wear the NIKE shoe? Why is there such a hype to be amongst the first to have the NIKE shoe on the day of release? How far is NIKE willing to go to make a sale? Is honesty, integrity, ethics, and fairness a part of the NIKE marketing plan? Are there any moral consequences associated with the sale of NIKE shoes? What is the Nike true productivity perspective? Has NIKE identified the true opportunities and threats? Are we facing an epidemic similar to that of the tobacco industry? Is the NIKE hoping for a permanent addiction? According to Nike, "specialists do everything in their power to ensure that Nike footwear directly reflects the specific performance needs of both professional and amateur athletes." A review of the Nike web site reveals a commitment to quality and good looks. Research and development starts two to three years before the final product reaches the consumer. There are over 5,000 registered testers in the U.S. alone gathering NIKE data. Nike says, "The only problem is...this entire process takes time and money."Money in this case is an essential element for both the buyer and seller. I am not sure that NIKE knows or for that matter cares about the real impact these shoes have on the market. There is a strategic marketing plan. Athlete's endorsement of the shoe creates a myth about whose the true manufacturer. Although the NIKE "check" no longer appears on the package containing the Jordan shoes, NIKE is still the manufacturer. Jordan has allowed his name to be used as a drawing card for the "image seekers." Shoes are placed in stores based on volume and/or dollars brought in from the retailer. Distribution in this local area is good example. According to the store manager, a store in one our local mall gets 15 pairs of Jordan shoes while the store on Canal Street, in downtown New Orleans, gets 100+ pairs. I am told that Canal Street store is a million-dollar operation.

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Those persons who frequent the Canal Street store live mainly on the lower end of the economic scale in this city. They are usually riding the bus. The money spent could probably be traced back to illegal gains. Although NIKE appears to be a good corporate citizen, the company or might I said its representatives seem to lack conscious. Advertising is geared toward the glory seeking youth. Some are willing to do almost anything to walk in these shoes. Lines gather at the doors of the retail outlets long before it opens for business the first day the Jordan shoes go on sale. The shoe store personnel are fearful to open the store because of the potential for vandalism. Scalpers are present to sell the shoe for an additional profit. Mini auctions are held in the store would be consumers gather around the sales counter while the salesperson calls out a number for the highest bidder and makes a joke about getting paid and what's for lunch. There has even been loss of life reported for a pair of NIKE. Literally, this shoe is to "DIE for". My point exactly. Customer loyalty, clear vision, meticulous details, focuses on profit and well-planned marketing strategies are all present in the NIKE market plan. At what cost? NIKE admits that "Nike might be able to make a cheaper shoe on a quicker timeline, but that would require overlooking the essential details that have made Nike the shoe of choice around the world." Disappointment from a teenages parent is unhealthy for a store that had my shopping commitment, budgeted dollars, trust and word of mouth advertising. Using the NIKE name for personal gain, in my opinion, is both unethical and illegal. NIKE is the hype. Nearly every youngster is willing to approach a breadwinner to make a purchase. To think that the retailer find it OK to charge one price while providing a receipt that reflects the price published by NIKE, raises an important issue. Is this a true win/win situation? Are we willing to sell our soles to the devil for a pair of NIKE? Who do we hold responsible? NIKE or the CONSUMER. REFERENCEShttp/www.nikebiz.com/story/pr_timeline.shtmlhttp/www.nikebiz.com/story/pr_lab4.shtmlhttp/www.nikebiz.com/story/mkg_innov.shtmlhttp/www.nikebiz.com/story/mkg_innov.shtmlhttp/www.nikebiz.com/story/mkg_innov.shtmlhttp/www.nikebiz.com/story/mkg_innov4.shtmlPersonal observation in local store

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