NIKEMercedesGerhardt

“Tobringinspirationandinnovationtoeveryathleteintheworld.”

  Nike’scorporategoalistocontinuecreatinginventivenewproductsthatwillhelpathletesadvancetotheirfullpotential,andcreatebusinessopportunitiesthatwillputNikeabovetheircompetition,whileprovidingvaluefortheirshareholders.

  Throughadoptionofsustainablebusinesspractice,Nikeiscommittedtointergenerationallife,helpingtheenvironment,andincreasingqualityandvaluefortheircustomers,shareholders,andbusinesspartners.

  PhilipH.KnightChairmanoftheBoardofDirectors/Founder

  BillBowermanCo‐founder

  MarkG.ParkerPresidentandChiefExecutiveOfficer

  Sportsequipment  Gear(Waterbottles,sunglasses)  Athleticshoes  Apparel  Uniforms  NikeID(Customizeshoes)  Livestrong  Jordan  SparQ  Timing/Watches  ColeHann  Hurley  ChuckTaylor  AllStar  Umbro  Converse

Geographics:

  Region:Allregions  CitySize:Lessormorethan100,000  Urban/Rural:Both  Climate:Multiple

Demographic:

  Age:16to60  Sex:MaleandFemale  FamilyLifeCycle:4orLess  Income:$25,000toover$50,000  Education:College  Occupation:Professionals  Religion:All  Race:All  Culture:NorthAmerica,WesternEurope,China,Japan

Psychographics:

  SocialClass:MiddletoUpper  MaritalStatus:SingleorMarried  Personality:Driven,Motivated  Life‐Style:Active  Interest:Beinginvolvedinsportsorexercising

CustomerBehavior:

  Benefitsdesired:EnhancePerformance  UsageRate:Medium  BrandLoyalty:Divided  UsageSituation:Sportsorathome  MediaUsage:Newspaper,TV,Sportsmagazines

  Adidas/Reebok  Puma  NewBalanceAthleticShoe  UnderArmour  K‐SwissInc.

Adidas

  ComparablestoNike:

  TheyofferalessexpensiveproductthanNikewiththesamequality.  OwnsReebok  DoesbetterinEurope/Largesoccerbrand  PartneringwithSamsungincreatingashoeplusaphoneschemethatuseswirelessbiometricstodisplayinformationon

anadidas‐brandedSamsungphone.  Wantingtocombinetechnologyinapparel  IscontractedwithseveralBigTencollegesportteams    WhatNikeDoesBetter

  NikeisnowthelicensedpartnerwiththeNFL.Theyhavecontroloverapparelaswellasfangear.  NikehasabetteroutreachofcustomersthanadidasintheUS.  NikehasmoreSBU’s.  Nikehasbetterfactoryconditions.  NikeE‐commercelayoutiseasytouse.

Puma

  ComparablestoNike:

  CollaborateswithhighfashiondesignersworkedwithAlexanderMcQueenandSergioRossi.  Offerssailingapparel.  Productsarelessexpensive.  Environmentallycontinuous.  Motorsportsproduct.

  WhatNikeDoesBetter:    Nikehasmoresalesinfootwearandapparel.  Nikesponsorsmorecharitableevents,suchastheChicagoShamrockShuffle.  NikeismorepopularandpurchasedmorefrequentlyintheUS.  Nikesponsoredmoresoccerteamsinthe2010WorldCup.

Demographics:

  Strength‐Thecustomercanaffordtospendmoneyontheproductsandcanaffordtobeloyaltothebrand.

  Weakness‐Nikedoesn’treachouttoyoungercustomer,whichhasapotentialforincreasingrevenue.

Psychographics:

  Strength‐ThecustomerlifestyleisrevolvedaroundbeingactiveandusingNikeproducts.

  Weakness‐Thecustomerisgettingboredwiththesameproduct.

Geographics:

  Strength‐ThereareseverallocationsthataNikeproductcanbesoldandboughtforexampleaNiketownstoreorsportinggoodstore.Thereare700shopsin45countries,makingitconvenientforcustomersacrosstheglobe.

  Weakness‐Thereareveryfewstoresinruralareas.

BehavioralBuyingTraits:

  Strength‐Customersareloyaltothebrandandkeepupwiththelatestproducts.

  Weakness‐Nikecomesoutwithfewnewproductsinseveralsportingareas.

Productmix

  Strength‐CustomerwillventuretootherNikeproductsbecauseofthegreatcustomerserviceassociatedwiththename.    Weakness‐Incomeofthebusinessisheavilyinvolvedinfootwear,whichmakesinvulnerableintheapparelmarket. 

PricingStrategies

    Strength‐Customersrecognizethehighestqualityatthelowestprice.    Weakness‐Nikeisnotwillingtomatchacompetitorslowerpriceonasimilarproduct.

Promotion

    Strength‐ThecustomerwillwatchsportsandcommercialswheretheNikebrandismarketed.AnexampleisNikeshoes

beingwornbyNFLteamsoraspecificathlete.    Weakness‐SomeofNikesotherproductandproductlinesaren’tmarketedaswell.

Distribution

  Strength‐Thestorehasawidedistributionchannel,whichallowsforontimedeliveryforcustomers.    Weakness‐Suppliersinoverseascountriescanslowdownorprolongdistribution.

Competition

  Opportunities‐Nikecouldfocusmoreonfashionforwarditemsandcreatesunglassesandjewelry.TherecentassociationwiththeNFLhasthepotentialtodrivesales.

  Threat‐Competitorsarebecomingmoreaggressiveandcreatinghighqualityproducts.Thereisalsoanincreaseinathleticshoebrands.

Economics

  Opportunities‐Thereisapossibilitytoexpandintoothercountriesandcreatemorejobs.

  Threats‐Therecessioncouldresultinclosingofstoresandthelossofnumerousjobs.

Nature

  Opportunities‐Economyboostingprojectswillencouragerecycling,helpingthefightagainstglobalwarming.Thereisalsoanopportunitytocreateactivewearthatisadjustabletoweatherchange.

  Threats‐Thetextileindustrydamagestheatmosphere.Nikeisstrugglingtoretaintheireco‐friendlyreputation.

Politics

  Opportunities‐Anopportunityisdonatingtoapoliticalcharityorcampaign.

  Threats‐Donatingtoacontroversialcampaigncouldcauseloyalcustomerstonolongersupportthecompany,suchasdonatingagainstgaymarriage.

  ObjectivesforProducts: Create2newnicheproductsbyMay2013thatpushescompetitionaside.

  Strategy1: Collaboratewithtechnologycompaniesformoreefficientworkouts.

  Tactic1: OfferanewproductthathasaGarmingpsdeviceinit,withanarmbandthathelpstrackthecustomerlocation,heartrate,mileage,andcaloriesburned.Thedevicewillactlikeamachinefoundinthegymbutforthosethatliketobeoutdoors.TheGarmindevicecanalsosendtheinformationtosmartphonesandkeepadailyworkoutlog.

  Tactic2: CreateaproductbycollaboratingwithGarminformarathonruns.Createapacingdeviseforrunnersandallowthemtoseetheirtimecomparedtootherrunners.

  Strategy2: Createaproductthatkeepstheathletesaferandresistanttoweatherconditions.

  Tactic1: Createatypeofdryfitthatkeepsthemoistureoffthepersonbutalsomaintainsaconstantcoolingtemperatureoncethebodytemperaturereachesacertainpoint.Thiswouldbeanessentialitemformarathonsinthesummerorwarmclimates.Itcouldreducetheriskofdehydrationandinjury.

  Tactic2: Waterresistantshoesthatallowoffterrainrunnerstokeeptheirfeetfromgettingwetandresistingblistersorotherfootconditions.

  ObjectiveforMarket‐orientation: Offer2newpromotionswiththenewaffiliationwiththeNFLbySuperbowl2012

  Strategy1: OfferapromotionforachancetogetNikegearandmeetaNFLfootballplayer.

  Tactic1: Bymakingeachnewcustomerfilloutaformwithnameande‐mailatrandomorbyrafflethewinnerwillbechosen.Thecompanythencanofferotherpromotionsthroughe‐mail.Therewillbefourdifferentwinnersina2‐monthtimeperiodbeforeSuperbowl2012.Thewinnercanpicktheirfavoriteteam;wewouldofferaflightandtwo‐nightstay.

  Tactic2: Therecanbefivewinnersthroughoutthefootballseason.ThewinnersgettomeetthepromotionalplayerforNikeatthetime.TheNikepromotionalplayerchoosesthewinners.

  Strategy2: OfferachanceforonefrequentNikecustomertowinSuperBowl2012tickets.

  Tactic1: Giveoutascratchoffcardtoeverycustomerthatcomesintothestoreandmakesapurchasethathasthechancetoget10%offorthechancetowintheSuperBowltickets.Onlyonecustomerwinswithtwoticketsavailable.Thescratchoffcardswillbegivenoutduringtheholidayseason,DecemberthroughJanuary.

  Tactic2: OfferalimitededitionshirtorientedwiththetwoNFLSuperbowlteams.Whenthecustomerpurchasestheshirtthereisapromotionalcodeonthereceipttheywillreceive.Thecustomerthenentersthecodeonthewebsitefortheirchancetowinthetwotickets.Thistechniquebringspeopleintothestoretopurchasetheshirtandpotentiallyotheritems,aswellasbringsthemtothewebsite.TheofferwillstartinJanuaryandendaweekbeforetheSuperBowl.

  Theevaluationofthenewproductisbasedontheconsumerinterestintheproduct.Theadvertisementandmarketingteamwillbeassessingthesuccessofthemonokini.Theproductwasagreatideabuttherewasn’talargeenoughmarketthatswimsforexercise.Thosethatdoswimforexercisedon’thavetobuysuitsoften.Theotherdrawbacktotheproductisthatthemonokiniisn’tstylishenoughforwomentopurchaseitforotheruse.WeshouldhavepretestedtheproductbyplacingitinNiketownswithsalespeoplesuggestingwomentocheckitout.Thiswouldhavecutcostonproductionandeliminatespendingmoreonaflopproduct.

  Theaccountingteamlookedatourproductagainstsalesanddeterminedtherewasnoreturnoninvestment.Theinitialsalepricewaspricedreasonablyforthecompanyandthequalityoftheproduct.

  TherewereseveralIMCs,whichallowedforfrequencyandreachfortheproduct.

  Onemajormediathatmarketingmissedwasexclusiveswimmagazines,suchas“Splash”.