Nike Brand Extension

2006

Nike+

2014

Women’s Training

1972

Footwear

1979

ApparelBrand Extension Over the Years

Footwear62%

Apparel31%

Equipment6%

Global Brand Division0%

NikeRevenue

Distribution

Footwear ApparelEquipment Global Brand Division

Rank: 1st Global Value Share:

2.4%

Industry Analysis: Footwear & ApparelWorld’s Market size:

US$ 268 bnGlobal growth rate(2009-14):

8.5%

Nike Market size:

US$ 25Global growth rate(2009-14):

12.4%

Product

Running and Sport shoes Comfortable shoes Safe and Stylish

What Need does it satisfy ?

What Features does it have to meet these Needs?

Light weight & AgileZoom technology

Support & Cushioning Compressed Air Technology

How is it differentiated versus your competitors?

Lightest and Responsive Best compressed Air technology

Used by Best Athletes across different Sports

How is it Branded ?

First a Player is Branded and then a Brand is created out of that players name eg: Air Jordan

Place Where do buyers look for your product or service?

PriceIs the customer price sensitive? 

No, given the functional value one is deriving out of it

What discounts are offered to trade customers, or to other specific segments of your market?

End of the season sales to the end customers

Are there established price points for products in this area?

Yes, both shoes and Apparel segments have established price points

How will your price compare with your competitors?

Price Leader - Charge a premium for Brand and superior technology

PremiumPrice

Promotion

Promotion

Bill Boards

Promotion

You Tube Channel

Magazine Ad

Target SegmentDemographic:Age: 8-60Gender: Male/FemaleOccupation: Any

Target segment include anyone who is into running or any kind of sports. Also include people looking for sports apparel

Consideration Set of Target Segment

Nike Inc and Adidas Group lead the market, with a combined share of 27% in 2014, up from 24% in 2009. Typically, these two producers hold key global sponsorship deals, and brand equity is supported by massive marketing spend.

Competitor’s Product comparison

Edge Air cushion Technology

Cooling technology - SHOE

Point of Difference

Shopping Mall

Competitor’s Place comparison

Point of Parity

Both have factory outlets where shoes can be bought at lower than the market rate and there is an year round sale !

Multi-Brand & Single Brand Outlet

Nike Adidas

Competitor’s Place comparisonDigital Channel

Nike Adidas Point of Parity

Competitor’s Price comparison

Basket Ball Shoes

Nike

Adidas

Nike is charging premium on shoes over its main competitors

This strategy is consistent with all product range from apparel to gadgets

Point of Difference

Competitor’s Price comparison: Brand Extension

Women Black Tee

Nike is charging premium on a lower range than in the shoe category over its main competitors

Point of Difference

Nike

Adidas

Competitor’s Promotion comparison

Bill Boards

Point of Parity

Nike

Adidas

Competitor’s Promotion comparison

Nike

Adidas

Point of Parity

Sport Sponsorship

Competitor’s Promotion comparison

Point of Parity

Nike

Adidas

Multiple youtube channels

Perceptual Map

PriceLow High

Spor

ts u

tility

Low

High Sport Tees

Nike

Reebok

Adidas

Puma

Nike Brand Extension PositioningPerformance oriented, safe and best in quality Sportswear for Anyone playing sports, running or fitness training

Special innovative solutions for promoting running, exercising and playing sports – Remain Fit Safely

Nike Brand Extension Positioning - Analysis

Earlier Positioning: Safest and fastest shoes for enhancing sportsperson performanceTarget Group: Anyone interested in playing and running

Extension Positioning: Performance oriented, safe and best in quality Sportswear for Anyone playing sports, running or fitness training.Target Group: New customer base have been added from sportsperson to anyone who aspire sports outfit

Perfect FitObservation: In the above figure the Brand Extension of Nike footwear - Both the Sports Appareland Total sports Apparel has been constantly increasing YOY from 2009-2014

Conclusion: Brand extension positioning has been apt and successful as they catered theLatent demand of target segment

Vasu Pal Age: 25 years Previous Work Experience: Deloitte, Accenture Specialization: - Finance, Systems Summer Internship: Standard Chartered

Brand Management Project

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