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- Jincey Jose (A009)- Shraddha Bhatt (A024)- Richa Tupsakhare (A022)

OverviewOverview• About NIKE• Brand Portfolio• Nike product range and description• SWOT Analysis of NIKE• Diversity• Product, Customer, Relationship and Presentation Strategy• Segmentation and positioning• Channel Distribution• Key financial data• Competitors• Conclusion• References 2

• Nike is the U.S-based manufacturer of athletic shoes, apparel and sports equipment.

• Stock symbol: NKE (NYSE) • Annual revenue (2013): increase of 8% on 6.7 billion $ • Founders: Bill Bowerman, Philip Knight • Year established: 1964 (as Blue Ribbon Sports) • Industry: Sportswear/equipment • HQ: Beaverton, Oregon • President/CEO: Mark Parker • Staff: 30,200 • Products: shoes, apparel and sports equipment, accessories • Slogan: Just Do It!

Baby to GIANT..

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Brand Portfolio• Cole Haan, designs and distributes dress

and casual footwear, apparel, and accessories for men and women

• Converse Inc., offers a diverse portfolio including premium lifestyle men's and women's footwear and apparel.

• Hurley International LLC., designs and distributes a line of action sports apparel for surfing, skateboarding and snowboarding, and youth lifestyle apparel and footwear

• NIKE Golf, designs and markets golf equipment, apparel, balls, footwear, bags and accessories worldwide.

• Umbro.Ltd., designs, distributes, and licenses athletic and casual footwear, apparel and equipment, primarily for the sport of football (soccer) 5

NIKE Product Range

• NIKE+• NIKE FOOTBALL (SOCCER)• NIKE ATHLETIC TRAINING• NIKE GOLF• NIKE FOOTBALL• NIKE RUNNING• NIKE BASKETBALL• NIKE SB• NIKE SPORTWEAR• NIKE WOMEN’S

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• Runners performance monitored via a radio device in the shoe which links to a iPod nano

• Software tracks- Distance, Pace, Time and Calories burnt during a workout

• Two ways to use effectively:NIKE+ Fuel Band (USB pendrive)NIKE+ iPod (sensor & reciever)NIKE+ iPod gym (no sensor required)

Product DescriptionNIKE+

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Product Range of NIKE+

• NIKE+ Connect• NIKE+ Fuelband• NIKE+ Running App• NIKE+ IPOD Nano• NIKE+ IPOD Sensor• NIKE+ IPOD Watch Remote• NIKE+ Kinect Training• NIKE+ Move• NIKE+ Sportband• NIKE+ Stopwatch GPS

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Brand Ambassador

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LE Bron James

American Professional Basket Ball Player

SWOT Analysis of NIKE

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• Strengths

• First of its kind• Unique, convenient and technologically

advanced (iPod nano, fuel band)• Strong partnership of NIKE+ and iPod• No additional settings or adjustments needed• It is safe to comprehend the desirability of

the product• Runner may customize their own workout• Sync to motivational songs

• Weaknesses

• The income of the business is still heavily dependent upon its share of the footwear market.

• The retail sector is very price sensitive. Most of NIKE’s income is derived from selling into retailers.

• Limited target market• Not widely publicized• Costly for beginners

SWOT Analysis of Nike+

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• Opportunities

• Nike is a fashion brand. • The business could also be developed

internationally, building upon its strong global brand recognition.

• Producing sportswear products from manufacturing waste;

• Emphasis on corporate marketing strategy through the promotion of corporate brand and sponsorship agreements

• Can be included in workout and weight loss programs due to obesity crisis

• Room for advancement

• Threats

• The market for sports shoes and garments is very competitive.

• The retail sector is becoming price competitive.

• Financial crisis may lead to job shortages in a number of Nike’s worldwide subsidiaries;

• The company has experienced negative publicity feedbacks due to its extensive advertising in mass media

• Extensive competition and imminent reduction in profit margins as first of its kind

SWOT Analysis of Nike+

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Diversity and Inclusion is what drives creativity and innovation. Nike’s ability to lead in innovation and creativity hinges on their ability to attract and retain the best global talent. To achieve this vision, the strategy is to:• Cultivate diversity and inclusion to develop world-class, high-performing teams• Ignite change and inspire critical conversations around diversity, inclusion and innovation• Create venues and environments for open dialogue, diverse opinions and a multitude of

perspectives

The Diversity and Inclusion team focuses on three areas:• Engaging Employees • Providing Business Consultation • Developing Innovative Tools, Models and Designs

Diversity

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• Key to Nike+ system is Nike shoe and its resident accelerometer( water proof and shock resistant pedometer).

• Fuel band- USB chip from watch attached to computer for statistics

• 2 hours charging gives 14 hours output

• iPod- For motivation, resistant to hard disc failure

Product Strategy

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Customer Strategy

• Awareness of product being superior to future competition.

• This leads to patronage buying motive• Quality of product should be highlighted

so that consumers recommend.• By providing excellent consumer service.• By providing toll free number• By providing website details• Surveys to randomly selected group of

customers who have purchased the product

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Relationship Strategy • Prospecting new customers.• Strengthening current relationships.• Awareness of the product’s true potential rather than its

existence.• Joint customer relationship between Apple and Nike.• Provides gift vouchers and discounts on further products.

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• Demo of product in action to capture attention

• Increase awareness (iPod and nike shoes)

• Highlight products features and benefits

• Eliminate buyer’s resistance to price by showing them how money is saved

• Change consumer’s perception that Nike+ is a want into a need

• Allow more buyer seller interaction (interactive demo)

Presentation Strategy

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NIKE’s Marks.. Even in Olympics

•NIKE has been adopting parasitic marketing techniques.

•NIKE wasn’t an official sponsor of 1996 summer Olympics but constructed a building overlooking the Olympic park to associate themselves with it.

NIKE’s 4 P’sProduct• (As explained before)Price• Product line pricing• Value added pricing strategy,

segmented and psychological pricing

• Shoes range from 4000-7500 INR

Promotion• Advertizing (repeat messages at

low cost many times)• Direct marketing (through e-

shop)• Public relations (sponsorship of

Manchester United)• Sponsors of Indian Cricket team

since December 2005Place• Leads US market• Started in India through

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Segmentation and Positioning

Segmentation

• Benefit segmentation The Nike mission: To bring inspiration and innovation to every athlete in the world.• Consumers also might be segmented based on loyalty to company. Customer service mission: To represent the highest service standard within and

beyond our industry, building loyal consumer relationships around the world.• Nike segment the international markets by geographic location; the United States,

the Americas, Asia Pacific and Europe, Middle East and Africa (EMEA).

Positioning

• Highly differentiated products (based on style and design)• “More for more”• Consumer products

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Channel Distribution

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Key Financial Data

• In 2013 there is a gradual increase in nike plus’s revenue and pre tax income.

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Key Financial Data

• The chart below is showing an increase in earning per share and future of Nike +

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Competitive advantage

• As competitive strategy Nike use product differentiation.

• Nike is known for its technologically advanced products.

• Nike will also focus on making a strong effort in price leadership.

Chart 4: Revenue Performance

713

8,225

13,262

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2,000

4,000

6,0008,000

10,000

12,000

14,000

Nike Adidas Puma

Source: Nike,Inc; Puma.Inc; Adidas,Inc

Reve

nue

in m

ln €

Chart 5: Earning per share

2.66 2.96

5.81

0.00

1.002.00

3.00

4.00

5.006.00

7.00

Nike Adidas Puma

Source: Nike,Inc; Puma,Inc; Adidas,Inc

EPS,

€

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• Apple recently patented a future Nike+ system that would utilize a combination of GPS sensors and a processor unit to monitor an athlete's performance in real time and give the runner feedback based on his or her age, weight, and gender.

• The system would also keep track of a shoe's durability, alerting the runner when the shoes have become too worn out and could increase the risk of injury.

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Advancement..

Conclusion• Nike, Inc. is a company rooted in

competition. • They did know that product quality and

innovation would help athletes to achieve greater goals.

• Nike still operates on this philosophy today.

• It is one that has helped athletes and stakeholders alike to realize athletic and financial greatness.

• Despite a changing marketplace for athletic footwear, Nike wants to expand their product lines and marketing reach to become a more powerful global brand.

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•http://www.nikebiz.com/media/pr/2011/06/27_Q4FY11Earnings.htm• http://www.nike.com/nikeos/p/nike/en_IN/•http://www.marketingteacher.com/swot/nike-swot.html•http://www.degree-essays.com/essays/marketingessays/nike-marketingstrategies.•http://business.mapsofindia.com/top-brands-india/top-shoe-brands-in- india.html•http://www.fibre2fashion.com/news/leathersnews/newsdetails.aspx?news_id=31395

•White paper ―Winning Value Propositions and Sustainable Business Performance‖ – by Eric Balinski

Thank you for attentionThank you for attention..

• Questions?• Comments?

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