Nike Brand Study Analysis overall
- 2. 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
- 5. LOGO EVOLUTION 1971 1978 1995 Source : thisisparachute.com,2016
- 6. ”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
- 7. ”To bring inspiration and innovation to every athlete* in the world.” * If you have a body, you are an athlete . MISSION STATEMENT Inspires people to adopt a winner mindset Source : Self Developed
- 8. ”To bring inspiration and innovation to every athlete* in the world.” * If you have a body, you are an athlete . MISSION STATEMENT Continuous improvement of products through new technologies. Source : Self Developed
- 9. ”To bring inspiration and innovation to every athlete* in the world.” * If you have a body, you are an athlete . MISSION STATEMENT Target every consumer around the world Source : Self Developed
- 10. ”To bring inspiration and innovation to every athlete* in the world.” * If you have a body, you are an athlete . MISSION STATEMENT Every existing person is potential customer Source : Self Developed
- 12. Geographical breakdown of NIKE’S revenue. 48% 20% 5% 11% 3% 13% North America Western Europe Central & Eastern Europe Greater China Japan Emerging Markets Source : Nike Annual Report 2015
- 13. Nike hierarchical decision making pyramid. Global Headquarters Regional Headquarters Subsidiaries Source : Inside the NIKE matrix,WU university 2013
- 14. • Matrix organizational structure or flat organizational structure. What is Matrix Structure ? Source : Inside the NIKE matrix,WU university 2013
- 15. Regional Matrix Structure Source : courses.lumenlearning.com
- 17. Store location: Saket Size: 1200 sq. ft. No. of employees hired: 13 No of employees on duty: 8 Displays changed monthly Decorated for upcoming events. Merchandise organised: gender first and then usage. Well lit, low-key music. FIRST STORE Source: tiinfotech.co.in
- 18. SECOND STORE Store location: Connaught Place Size: 1600 sq. ft. No. of employees hired: 14 No. of employees on duty: 10 Displays are changed monthly Merchandise organised: gender, design and sizes. Source: magicpin.in Bright and somewhat noisy.
- 19. THIRD STORE Store location: Ashok vihar Size: 1000 sq. ft. No. of employees hired: 10 No 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
- 21. Basis Market share in India Retail value share of 4% Retail value share of 4% Retail value share of 3% 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 stores worldwide 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
- 22. 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
- 23. MARKETING MIX
- 26. Advertising Personal selling Direct marketing Sales promotions Public relations Promotion
- 27. Average price range : 4,000 - 20,000 INR Value-based pricing strategy Price Customers Value Price Cost Product
- 28. The BCG Growth-Share Matrix
- 29. 0 5 10 15 20 25 2011 2012 2013 2014 2015 Nike's athletic footwear share from 2011 to 2015 17 18.6 19.7 20.8 21.8 Globalmarketshare(%) Nike's athletic footwear share from 2011 to 2015 Source :Statista.com,2016
- 30. $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 2011 2012 2013 2014 2015 11519 13428 14635 16208 18318 NIKE Inc. Athletic foortwear revenue ( $ in million) Source: NIKE annual report (2014,2015)
- 31. 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
- 32. BCG Matrix Source : Self Developed
- 33. STP (Segmentation, Targeting and Positioning) Source : Strategic Marketing,2016
- 34. 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
- 35. Aggressive Marketing Desired products through customization process Sports team or celebrities. Nike cross training. Target Strategies
- 36. Market PositioningSportsUtilityLOWHIGH LOW HIGH Price Source: Self Developed
- 37. DEMOGRAHPIC AND PSYCHOGRAPHIC NAME: Muskan Puri Gender: FEMALE Age: 20 Marital Status: UNMARRIED Occupation: STUDENT (Psychology Hons, DU) City: NEW DELHI Family income: Rs. 4,00,00,000-Rs. 6,00,00,000 (per annum) Motto: Live life to the fullest
- 38. CONSUMER DILO
- 39. MOOD BOARD
- 40. Corporate Social Responsibilities Source : about.nike.com
- 41. “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
- 42. Minimize environmental footprint. Transform Manufacturing Unleash human potential Source : about.nike.com
- 43. PRODUCT RANGE Source : store.nike.com
- 44. 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 & Mitt • Belts • Drawstring Bags • Duffel Bags • Tote Bags
- 45. 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
- 46. POSTERS
- 50. Women Wear NIKE INTERNATIONAL WOMEN'S GRAPHIC LEGGINGS ₹3,095 Elastic waistband Reflective logo stands out in low light Fabric: 57% cotton/32% polyester/11% elastane NIKE POWER LEGENDARY WOMEN'S PRINTED MID- RISE TRAINING TIGHTS ₹6,495 Fabric: Body: Dri-FIT 80% nylon/20% elastane. Flat seams Pocket at waistband for storing small items NIKE TECH FLYKNIT JOGGING PANTS INR 7538 Drawstring waistband Biker stitching details Fabric69%Cotton 31%Polyester NIKE X KIM JONES SWEATPANTS INR 15589 Ribbed cuffs at hem Elastic strap for roll-up carrying Fabric :70%Cotton 30%Polyester Source: store.nike.com
- 51. NIKE X Kim Jones NIKELAB WINDRUNNER X KIM JONES TOP INR 17639 Front half snap button placket High collar,Short sleeves Fabric : 100% POLYESTER NIKE PRO HYPERWARM WOMEN'S LONG-SLEEVE TRAINING TOP ₹3,595 Dropped hem Fabric: Body: Dri-FIT 87% polyester/13% elastane. NIKE SPORTSWEAR RALLY WOMEN'S CREW ₹4,195 Dropped back hem Raglan sleeves Fabric: 63% cotton/19% polyester/18% rayon NIKE PRO HYPERCOOL WOMEN'S 3" (7.5CM APPROX.) TRAINING SHORTS ₹2,495 Elastic waistband Flat seams Fabric: Body: Dri-FIT 80% polyester/20% elastane. Source: store.nike.com
- 52. NikeLab X Riccardo Tisci NIKELAB X RT FLORAL PRINTED JACKET INR 19468 Non-detachable drawstring hood All over print placement Fabric: 100 % POLYESTER NIKE COOL WOMEN'S RUNNING TOP ₹1,895 Cap sleeves Fabric: Dri-FIT 100% recycled polyester NIKE DRY TEMPO WOMEN'S 3" RUNNING SHORTS ₹2,295 Interior drop pocket and back zip pocket Fabric: Dri-FIT 100% polyester NIKE PRO INDY WOMEN'S LIGHT SPORTS BRA ₹2,295 Thin, adjustable straps for a personalised fit For light-impact sports Fabric: Body: Dri-FIT 88% recycled polyester/12% elastane. Source: store.nike.com
- 53. Men wear NIKE DRI-FIT MEN'S TRAINING TOP ₹1,795 Ultra-soft Dri-FIT Fabric: Dri-FIT 100% polyester NIKE LEBRON MAX MEN'S TROUSERS ₹5,295 Tailored fit for streamlined comfort Side zip pockets and back pocket Fabric: Dri-FIT 92% polyester/8% elastane NIKE FLEX MEN'S 7" RUNNING SHORTS ₹2,195 Vented hem Multiple pockets Fabric: Body: Dri-FIT 100% polyester. NIKE ELITE MEN'S BASKETBALL SHORTS ₹2,595 Stretch waist Side welt pockets Fabric: Dri-FIT 100% polyester Source: store.nike.com
- 54. NIKE THERMA HYPER ELITE MEN'S BASKETBALL HOODIE ₹5,495 Tapered fit and dropped back hem Zip kangaroo pocket Fabric: 100% polyester NIKE DRY CONTOUR SHORT-SLEEVE RUNNING TOP ₹2,795 Crew neck with interior taping Fabric: Dri-FIT 100% polyester NIKE AEROLOFT HYBRID MEN'S BASKETBALL JACKET ₹17,995 Articulated cuffs designed for ball handling Dropped back Fabric: 100% Polyester AIR JORDAN 11 MEN'S JACKET ₹6,995 Elastic cuffs and drawcord hem Foldover collar for a classic look Fabric: 50% nylon/50% cotton Source: store.nike.com
- 55. JORDAN CLOUDED NIGHTMARES MEN'S T-SHIRT ₹2,195 Rib crew neck with interior taping Fabric: 100% cotton NIKE POWER SPEED FLASH MEN'S RUNNING TIGHTS ₹7,295 Drawcord offers a snug, Zip pocket on right hip Fabric: 74% polyester/26% elastane KYRIE ELITE SWEATSHIRT MEN'S BASKETBALL HOODIE ₹4,595 Multi-panel hood Kangaroo pocket with internal media-cord port Fabric: Dri-FIT 100% polyester NIKE WINDRUNNER MEN'S JACKET ₹4,995 26-degree chevron Fabric: 100% polyester Source: store.nike.com
- 56. • 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
- 57. • 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
- 58. • 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/nk e-5312014x10k.htm (Accessed: 21 November 2016).
- 59. • 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.
Editor's Notes
- #15: Geogrophical breakdown 4 regions US EMEA Asia Americas
- #16: A matrix organizational structure is a company structure in which the reporting relationships are set up as a grid, or matrix, rather than in the traditional hierarchy. In other words, employees have dual reporting relationships - generally to both a functional manager and a product manager.