Prepared by M. Onur KALYONCUUniversity of Applied Sciences OFFENBURG

02.12.2009

-Mini Quiz-

When was the company founded?

1884

1999

1906

1968

What is the first name of Nike company?

- Ekin

- Mike

- Red Ribbon Sports

- Blue Ribbon Sports

-Mini Quiz-

What is the meaning of Nike?

Sport

Freedom

Fighter

Greek winged Goddess of victory

-Mini Quiz-

The Journey

• 1960s-Phillip Knight(ceo) & William Bowerman partnered to sell running shoes to athletes

• 1970s- cash in on America’s running craze:

1)1972- $ 3 million

2)1980- $ 270 million

3)1986- $ 1 billion

• Problems in mid 1980s:

1. Demographic changes - baby boomers pushed into their late forties & felt less like running.2. Market for running shoes become highly segmented (mature market)

-many different models for every nuisance of customer need.3. Competition

-Reebok create new market orientations to sell sneakers based on fashion rather than performance

• Results from the problem1. 1984- Nike’s unit sales decreased 17%

- market share declined 31% to 24%2. 1987- have only 18.6 % share of shoes market

• Action taken1. Introduced technological features to enhance shoes performance.2. Use of celebrities as spokesperson. Air Jordan was a major hit. 3. Using advertising as marketing strategy

Challenge in late 1990s

1) Shoe market had changed-younger customer favors of hiking boots & more casual footwear.-teens began participating in nontraditional ‘extreme’ sport.

• NIKE responded by introducing ACG (all-condition gear)

2) Controversy surrounding its overseas labour practices-Nike being accused of utilizing sweatshop labour in developed nations. Protest sprang.

• NIKE created corporate & social responsibility department.

Nike’s focus

• Create authentic athletic footwear, apparel, equipment and accessories for sports and fitness enthusiasts

• Through subsidiaries, design and sell a line of men’s and women’s dress and casual shoes and accessories

•   Converse•   NikeTown

•   Cole Haan •   Nike Football

•   Nike Basketball•   Nike All Conditions Gear (ACG)

•   Nike+ •   Hurley International

•   Jordan Brand •   Nike Golf

BRANDS

•Nike Manufacturing

As of May 2009, Nike’s three main product engines - footwear, apparel and equipment - used almost 700 contract factories in 52 countries to manufacture all Nike products, employing close to 800,000 workers. It is Nike’s mission to make responsible sourcing a business reality that enhances the lives of these workers.

Nike Products

Product Mix for Nike FootballEquipment• Ball • Bags• Watches

National Team Gear• Jersey for Brazil, England… .,

Club Gear • Club Jerseys like Man U, Real Madrid, • Barcelona

Footwear • Studs for Striker• Mid fielders • Defenders

Apparel• Headwear• Tops/Polo• Jersey• Jackets• Shorts • Shocks

Who are wearing Nike products?

NBA players Club teams Colleges and universities Baseball players Boxing Cycling American football players Golf players Tennis players Football playersSwimming…… Everybody!

New ProductsNike have to face when Nike introduces a new attributes and new products frequently.

Advantages

+ Nike will able to improve their performance in searching new design and styles of shoes.+ Customers will have a lot of choice in making selection depends on their wants.+ Nike will improve their company and brand image at the same time expand their market share.

Disadvantages- Increase the cost in handling inventory, designing, advertising and

production

Customer reaction• They will get the latest design of shoes.• A lot of choice in making selection depends on their

prefer.• Customers will find the Nike shoes are trendy.• In contras sometimes Customer maybe feel ‘fed up’

because they can’t follow the changing of Nike shoes.• Not all the customers can follow the changing of Nike.

Nike’s Overall Reputation

Quality of Nike’s Products

+ Increased sales due to the strengthening economy+ More positive public perception of Nike’s social responsibility+ Growth through increased presence in low- to mid-priced shoe market+ New athlete name recognition

- Growing competition- Competitors attracting female consumers- Human rights concerns

OPPORTUNITIES&THREATS

Advertising Strategy

• Designed to make a connection to the consumer

• Seldom pitch the product directly or talk about product attributes

• Sometimes don’t even mention the company’s name featuring instead only the swoosh logo

• Making new contracts with sportsmen

• Collaboration ads with another strong branded product, such as Apple iPod

• http://www.nikepedia.com• https://www.nikemedia.com/• http://www.nikeid.nike.com•http://www.apple.com/ipod/nike/• http:// www.nikesportswearmedia.com

Nike and Media

• SAN FRANCISCO, Calif. (October 18, 2009) –Over 20,000 women from 50 states and 25 countries completed the Nike Women’s Marathon (NWM), the largest race of its kind in the world, raising more than $14 million for The Leukemia & Lymphoma Society (LLS).

• November 30th, 2009 One the day before World Aids da some of the world’s best footballers joined U2 frontman Bono Bono at announcement of partnership between NIKE, Inc. and (RED).

• Didier Drogba (Chelsea) • Joe Cole (Chelsea)• Andrei Arshavin (Arsenal)• Marco Materazzi (Inter Milan)• Denilson (Arsenal)• Lucas Neill (Everton)• Clint Dempsey (Fulham)

Let the Clean Economy Begin

In 2007 for reducing its annual CO2 emissions to 18 percent below its 1998 levels

Summary

Type Public (NYSE:NKE)Founded: 24 January 1968Founder(s): William J. “Bill” Bowerman Philip H. KnightHeadquarters Beaverton , Oregon,United StatesArea served: WorldwideKey people: Philip H. Knight (Chairman) Mark Parker (CEO) & (President)Industry Designing and Manufacturing: Sportswear Sports equipment Products: Athletic shoes Apparel Sports equipment AccessoriesRevenue▲ US$ 18.627 billion (2008)Operating income▲ US$ 2.199 billion (2007)Net income▲ US$ 1.883 billion (2008)Total assets▲ US$ 12.443 billion (2008)Total equity▲ US$ 7.825 billion (2008)Employees 30,200 (2008)

Just Do It!!!!