Nike Brand Study Analysis overall

BRAND PROFILE

Parent Company : Nike Inc. Category : Apparel, Sports Equipment and

Accessories Tagline/ Slogan : Just do it USP : Shoes that are made for professional athletes Segment :Sports enthusiasts Target Group : Men, women and children from

urban upper-middle and upper class

MILESTONE EVENTS

Source: xroads.virginia.edu

1964

1996 1993 1984

19741971

2003

LOGO EVOLUTION

1971 1978 1995

Source : thisisparachute.com,2016

”To bring inspiration and innovation to every athlete* in the world.”

* If you have a body, you are an athlete .

MISSION STATEMENT

Source : us.nike.com



MISSION STATEMENT

Inspires people to adopt a winner mindset

Source : Self Developed



MISSION STATEMENT

Continuous improvement of products through new technologies.




MISSION STATEMENT

Target every consumer around the world




MISSION STATEMENT

Every existing person is potential customer


ORGANIZATIONAL STRUCTURE

Geographical breakdown of NIKE’S revenue.

48%

20%

5%

11%

3%

14%

North AmericaWestern EuropeCentral & Eastern EuropeGreater ChinaJapan Emerging Markets

Source : Nike Annual Report 2015

Nike hierarchical decision making pyramid.

Global Headquarters

Regional Headquarters

Subsidiaries

Source : Inside the NIKE matrix,WU university 2013

• Matrix organizational structure or flat organizational structure.

What is Matrix Structure ?

Source : Inside the NIKE matrix,WU university 2013

Regional Matrix Structure

Source : courses.lumenlearning.com

VISUALMERCHANDISING

Store location: SaketSize: 1200 sq. ft.No. of employees hired: 13No of employees on duty: 8

Displays changed monthlyDecorated for upcoming events.

Merchandise organised:gender first and then usage.

Well lit, low-key music.

FIRST STORE

Source: tiinfotech.co.in

SECOND STORE

Store location: Connaught PlaceSize: 1600 sq. ft.No. of employees hired: 14No. of employees on duty: 10

Displays are changed monthly

Merchandise organised: gender, design and sizes.

Source: magicpin.in

Bright and somewhat noisy.

THIRD STORE

Store location: Ashok vihar Size: 1000 sq. ft.No. of employees hired: 10No of employees on duty: 6

Displays changed quarterly according to season.

Merchandise organised: sale, gender and size.

dim lights ,bright light on certain products. Music was soft and soothing.

Source: nike.ssiplgroup.com

COMPETITOR ANALYSIS

Basis

Market share in India

Retail value share of 4%



Types of merchandise

Foot wear, Sports apparel , Sports equipment and Accessories

Foot wear, Sports apparel and accessories

Foot wear, Sports apparel and accessories

Number of retail storesworldwide

1045 1352 600

Average size of store

Starting 400 square feet Starting 350-400 square feet Starting 250 square feet

Average Pricing AVERAGE 4,000 - 20,000 INR AVERAGE 3,500- 20,000 INR AVERAGE 2500- 17,000 INR

Raw materials used

Polyester , Elastane ,rubber, eva foam,cotton,leather

Recycled Polyester, Nylon ,Polystrene, sustainable cotton, leather

Recycled Polyester ,thermoplastic polyurethane(TPU), cotton

Revenue in India (Per Annum )

624 crore INR 737 crore INR 766 crore INR

Overall Worldwide sales

$32.01 Billion $18.76 Billion $ 3.8 Billion dollars

SWOT Analysis

• Product Innovation

• Strong global brand

• Low manufacturing cost

• Proficient leadership

• Excessive dependence on footwear

• High prices

• High Spending on advertising

• Sweatshop issue

• Emerging markets

• E-commerce trade

• Product expansion

• Sustainable innovation

• Intense competition

• Fluctuating international market

• counterfeit cases

• Risky supply chain management

MARKETING MIX

Shoes Apparel Equipments

Product

Niketown retail

outlets

Official Online store

Retailstores

Place

Advertising

Personal selling

Direct marketing

Sales promotions

Public relations

Promotion

Average price range : 4,000 - 20,000 INR

Value-based pricing strategy

Price

Customers Value Price Cost Product

The BCG Growth-Share Matrix

2011 2012 2013 2014 20150

5

10

15

20

25

Nike's athletic footwear share from 2011 to 2015

Glo

bal m

arke

t sha

re (%

)

Source :Statista.com,2016

2011 2012 2013 2014 2015$0.00

$2,000.00$4,000.00$6,000.00$8,000.00

$10,000.00$12,000.00$14,000.00$16,000.00$18,000.00$20,000.00

1151913428

1463516208

18318

NIKE Inc. Athletic foortwear revenue ( $ in million)

Source: NIKE annual report (2014,2015)

Global athletic footwear

market, value worth USD

74.7 billion in 2011

Compound Annual Growth Rate(CAGR) –

1.8%

Will reach market value worth USD

84.4 billion by 2018.

Source: prnewswire.com,2015

BCG Matrix


STP (Segmentation, Targeting and

Positioning)

Source : Strategic Marketing,2016

Segmentation

Demographics segmentation

Age range of 15-55

Psychographics and behavioural

Sports or athletic oriented

Active lifestyle Geographic segmentation

USA, Asia-pacific Europe, Africa

Objective:North-America, China, Japan, and Middle-

East.

Source : Strategic Marketing,2016

Aggressive Marketing

Desired products through customization process

Sports team or celebrities.

Nike cross training.

Target Strategies

Market PositioningSp

orts

Util

ity

LOW

HIG

H

LOW HIGH

Price Source: Self Developed

DEMOGRAHPIC AND PSYCHOGRAPHIC

NAME: Muskan Puri Gender: FEMALEAge: 20Marital Status: UNMARRIEDOccupation: STUDENT (Psychology Hons, DU)City: NEW DELHIFamily income:Rs. 4,00,00,000-Rs. 6,00,00,000 (per annum) Motto: Live life to the fullest

CONSUMER DILO

MOOD BOARD

Corporate Social Responsibilities

Source : about.nike.com

“AT NIKE, WE BELIEVE IT IS NOT ENOUGH TO ADAPT TO WHAT THE FUTURE MAY BRING – WE’RE CREATING THE FUTURE WE WANT TO SEE THROUGH SUSTAINABLE INNOVATION.”

Mark Parker, President and CEO, NIKE, Inc.

Source : about.nike.com

Minimize environmental footprint. Transform Manufacturing

Unleash human potential Source : about.nike.com

PRODUCT RANGE

Source : store.nike.com

MEN’S SHOES • Cleats & Spikes• Sandals• Boots• Running• Basketball• Customize with

NIKEiD• Soccer• Jordan• Tennis

Source : store.nike.com

MENS’s CLOTHING

• Tops & T-Shirts• Jackets• Shorts• Hoodies• Sweatshirts• Pants• Joggers & Sweatpants• Compression & Nike Pro• Sweaters

MEN'S GEAR

• Socks• Bags• Balls• Hats & Caps• Gloves & Mitts• Belts• Drawstring Bags• Duffel Bags• Tote Bags

WOMEN’S CLOTHING

• Tops & T-Shirts• Jackets• Shorts• Hoodies• Joggers &

Sweatpants• Leggings & Tights• Tanks & Sleeveless

Shirts

WOMEN’S SHOES

• Running• Basketball• Tennis• High Tops• Training• Customize with NIKEiD• Nike Air Max• Nike Flyknit• Nike Air Max Thea

ACCESSORIES & EQUIPMENT

• Bags and bag packs• Hats and caps• Gloves• Sunglasses• Socks

POSTERS

Source: Self Developed

Product Detailing

Fall/Winter 2016

Women Wear NIKE INTERNATIONALWOMEN'S GRAPHIC LEGGINGS

₹3,095Elastic waistband Reflective logo stands out in low lightFabric: 57% cotton/32% polyester/11% elastane

NIKE POWER LEGENDARYWOMEN'S PRINTED MID-RISE TRAINING TIGHTS

₹6,495Fabric: Body: Dri-FIT 80% nylon/20% elastane. Flat seams Pocket at waistband for storing small items

NIKE TECH FLYKNIT JOGGING PANTSINR 7538Drawstring waistbandBiker stitching detailsFabric69%Cotton 31%Polyester

NIKE X KIM JONES SWEATPANTSINR 15589Ribbed cuffs at hemElastic strap for roll-up carryingFabric :70%Cotton 30%Polyester

Source: store.nike.com

NIKE X Kim JonesNIKELAB WINDRUNNER X KIM JONES TOP

INR 17639Front half snap button placketHigh collar,Short sleevesFabric : 100% POLYESTER

NIKE PRO HYPERWARMWOMEN'S LONG-SLEEVE TRAINING TOP

₹3,595Dropped hemFabric: Body: Dri-FIT 87% polyester/13% elastane.

NIKE SPORTSWEAR RALLYWOMEN'S CREW

₹4,195Dropped back hem Raglan sleevesFabric: 63% cotton/19% polyester/18% rayon

NIKE PRO HYPERCOOLWOMEN'S 3" (7.5CM APPROX.) TRAINING SHORTS

₹2,495Elastic waistbandFlat seams Fabric: Body: Dri-FIT 80% polyester/20% elastane.


NikeLab X Riccardo TisciNIKELAB X RT FLORAL PRINTED JACKETINR 19468Non-detachable drawstring hoodAll over print placement Fabric: 100 % POLYESTER

NIKE COOLWOMEN'S RUNNING TOP

₹1,895Cap sleevesFabric: Dri-FIT 100% recycled polyester

NIKE DRY TEMPOWOMEN'S 3" RUNNING SHORTS

₹2,295Interior drop pocket and back zip pocketFabric: Dri-FIT 100% polyester

NIKE PRO INDYWOMEN'S LIGHT SPORTS BRA

₹2,295Thin, adjustable straps for a personalised fitFor light-impact sportsFabric: Body: Dri-FIT 88% recycled polyester/12% elastane.


Men wear NIKE DRI-FITMEN'S TRAINING TOP

₹1,795Ultra-soft Dri-FIT Fabric: Dri-FIT 100% polyester

NIKE LEBRON MAXMEN'S TROUSERS

₹5,295Tailored fit for streamlined comfortSide zip pockets and back pocketFabric: Dri-FIT 92% polyester/8% elastane

NIKE FLEXMEN'S 7" RUNNING SHORTS

₹2,195Vented hemMultiple pocketsFabric: Body: Dri-FIT 100% polyester.

NIKE ELITEMEN'S BASKETBALL SHORTS

₹2,595Stretch waistSide welt pocketsFabric: Dri-FIT 100% polyester


NIKE THERMA HYPER ELITEMEN'S BASKETBALL HOODIE

₹5,495Tapered fit and dropped back hemZip kangaroo pocketFabric: 100% polyester

NIKE DRY CONTOURSHORT-SLEEVE RUNNING TOP

₹2,795Crew neck with interior tapingFabric: Dri-FIT 100% polyester

NIKE AEROLOFT HYBRIDMEN'S BASKETBALL JACKET

₹17,995Articulated cuffs designed for ball handlingDropped back Fabric: 100% Polyester

AIR JORDAN 11MEN'S JACKET

₹6,995Elastic cuffs and drawcord hem Foldover collar for a classic lookFabric: 50% nylon/50% cotton


JORDAN CLOUDED NIGHTMARESMEN'S T-SHIRT

₹2,195Rib crew neck with interior tapingFabric: 100% cotton

NIKE POWER SPEED FLASHMEN'S RUNNING TIGHTS

₹7,295Drawcord offers a snug, Zip pocket on right hipFabric: 74% polyester/26% elastane

KYRIE ELITE SWEATSHIRTMEN'S BASKETBALL HOODIE

₹4,595Multi-panel hood Kangaroo pocket with internal media-cord portFabric: Dri-FIT 100% polyester

NIKE WINDRUNNERMEN'S JACKET

₹4,99526-degree chevron Fabric: 100% polyester


• In this project we used 2 theoretical models – SWOT analysis, BCG Matrix.

• Models were applied on Nike and showed and explained main aspects of brand building of Nike.

• Revealed strong and weak sides of thecompany in brand building.

• We learnt to develop- Consumer Dilo, Mood Board.• Learnt Harvard Referencing.

Reflections

• Nike Timeline (no date) Available at: http://xroads.virginia.edu/~class/am483_97/projects/hincker/timeline.html (Accessed: 7 October 2016).

• Smith, A. (2016) The evolution of Nike - parachute. Available at: https://www.thisisparachute.com/2016/04/15/the-evolution-of-nike/ (Accessed: 22 October 2016).

• Nike mission statement (no date) Available at: http://help-en-us.nike.com/app/answers/detail/a_id/113/~/nike-mission-statement (Accessed: 26 October 2016).

• Learning, L. (no date) Reading: The organization chart and reporting structure. Available at: https://courses.lumenlearning.com/introbusinesswmopen/chapter/the-organization-chart-and-reporting-structure/ (Accessed: 5 November 2016).

References

• Topic: Nike (2016) Available at: https://www.statista.com/topics/1243/nike/ (Accessed: 7 November 2016).

• EDU, O.U.U. (2015) Nikeshoes. Available at: https://u.osu.edu/nikeshoes/raw-materials/ (Accessed: 10 November 2016).

• 2015, Available at: http://s1.q4cdn.com/806093406/files/doc_financials/2015/ar/docs/nike-2015-form-10K.pdf (Accessed: 21 November 2016).

•2013, Available at: http://s1.q4cdn.com/806093406/files/doc_financials/2013/docs/nike-2013-form-10K.pdf (Accessed: 21 November 2016).

• 2014, Available at: https://www.sec.gov/Archives/edgar/data/320187/000032018714000097/nke-5312014x10k.htm (Accessed: 21 November 2016).

• Ahmed, R. (2016) Strategic Marketing. Available at: https://www.researchgate.net/publication/299889166_Strategic_Marketing_Plan_of_Nike (Accessed: 18 November 2016).

• Goi, C. L. (2009). A review of marketing mix: 4Ps or more? International Journal of Marketing Studies, 1(1), 2.

Nike Brand Study Analysis overall

Lifestyle

Transcript of Nike Brand Study Analysis overall