MARKETING ANALYSIS OF NIKE

• S Mahesh

• Sachin Agarwal

• Sahil Handa

• Saloni Chaudhary

• Sanchit Juneja

• Manoj Kumar

• Shriram Khandelwal

SPORTS INDUSTRY ANALYSIS• Sports is an integral part of modern society

• Affiliated to perseverance, discipline and dedication

• Sportspersons treated as national heroes

• Sportsmen need specialized superior quality gear

• Target Company: NIKE Major Competitor: ADIDAS

• Started of as footwear manufacturers for athletes

• Products have now diversified to apparels, accessories and equipment.

ABOUT THE COMPANY• MISSION: To bring inspiration and innovation to every athlete* in the

world

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

• Two visionaries revolutionized and redefined the athletic footwear industry in 1964.

• Originally knows as ‘Blue Ribbon Sports’

• In 1978 the name was changed to Nike coming from Greek Goddess of Victory.

• Headquartered at Oregon, USA.

• Trades under the code NKE in the New York Stock Exchange.

THE SYMBOL

• Known as the SWOOSH, created by Carolyn Davidson in 1971

• Drew a sloppy check mark on her paper out of frustration while working with Philip Night

• Became the signature of Nike, is the most recognizable symbol in the sports industry.

COMPANIES OWNED

1. Umbro: English based sportswear and football equipment supplier. Umbro designs, sources and markets sports related footwear, apparel and equipment.

2. Converse: American shoe company that makes shoes, athletic and fashion apparel.

3. Cole Haan: US based Global lifestyle brand that defines style beauty and luxury.

4.Hurley International: California based clothing company, which puts emphasis on skateboarding, surfing, music and fun.

MARKET SEGMENTATIONMajor consumer market comprises of sportspersons

GEOGRAPHIC

DEMOGRAPHIC

PSYCHOGRAPHICLOGO: Just Do It

BEHAVIORAL

TARGETING STRATEGIES1. SPONSORSHIP OF PRODUCTS BY PROFESSIONAL ATHLETIC TEAMS

2. DESIGNING OF PRODUCT DESTINATION

3.TARGET CUSTOMERS WITH PRODUCT INTIMACY

POSITIONING STRATEGY • Nike appeals to all demographics

• Products ooze style, attitude and confidence

• Positioning statement is “For serious athletes, Nike gives confidence that provides the perfect shoe for every sport

• Nike positions athletic fantasy in consumers

• Uses strong brand advertisement.

• Positions itself as a premium brand selling well designed athletic products

SWOT ANALYSISSTRENGTHS

• Professionally competitive organisation

• Strong global brand image

• Loyal customer base

• Efficient R&D department

• Fast service to customers

• Outstanding promotional and marketing campaign

WEAKNESS• Heavy dependency on footwear• Dependence on retailers• Marketing depends on celebrity

endorsements• Have been accused of violation

of law

OPPORTUNITIES

• Venture into electronic accessories segment

• Venture into fashion industry

• Huge potential in developing countries

• Create eco-friendly products

THREATS• Stiff competition• Increase in price of raw

materials• Loss due to currency

fluctuations

4P ANALYSISPRODUCT

• Produce shoes, jerseys, shorts etc.

• Produce products for different games like hockey, cricket, football etc.

• Introduced Air Zoom Yorker for cricket

• Air Jordan XX3 for basketball

• Developed Nike+ with Apple Inc.

PRICE

• Pricing based on vertical integration

• Competitive prices as compared to other retailers

• Demands high premium

• PLACE

• Uses independent distributors and subsidiaries in international markets

• Factories are situated in India, Thailand, Vietnam, Pakistan etc.

• PROMOTION

• Famous athletes promote their products

• Sponsors large-scale events

• Personalizes its websites

• Brand logo and slogan strengthen brand image

• Depends on T.V. and print media

NIKE ADIDAS

Headquarters USA Germany

Major Markets Basketball, Cross training, running, women and children’s shoes. Soccer, tennis and athletics.

Key Sponsorships Michael Jordan, Cristiano Ronaldo, Virat Kohli and England Soccer. New York Yankees, Real Madrid, Leo Messi

Strategies - Focus on footwear

- Shifted focus to soccer in order to gain international

recognition

- Started athlete sponsorship frenzy

- Innovation is the key to the company’s success

- Nike team sports

- Changes shoe designs frequently to stay ahead of

competitors

- Customized products

- Uses overseas manufacturing factories to cut production

costs

- Perfected its internet site with custom footwear options

- Has lead the industry in advertising and marketing strategies

- Focus on apparels

- Adidas still dominates the soccer market which is

considered the world’s sport

- Followed Nike in sponsoring professional athletes and

athletic teams

- Tries to cut production time in order to be more efficient

- Uses low wage labour to cut production cost

- Has enhanced marketing and advertising budget

- Has recently tried to expand its market to sports

equipment and apparel

Outsourcing - Nike is not a production company, almost all shoes are

outsourced

- The company only develops and markets the goods

- Adidas also outsources its production but the design and

development process is based in Germany

NIKE & ADIDAS: WHERE THEY STAND

CONCLUSION/RECOMMENDATIONS• Nike has shown good growth momentum & increase in stock prices• Nike should move forward with the changing trend of the market• Company has good brand image but at present most of the revenue comes

from footwear segment• Nike should capitalize on its brand image to capture the market share of

apparel product line as well.• Should target countries with growing markets like India, China, and Brazil

etc.• Need to establish a proper ecommerce network to sell directly to

customers• Should keep in mind the labor laws in order to avoid repeating past mistake• Keep the innovative culture alive, as that is the essence of the company

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