Business Marketing Management

Business Marketing Management

NIKE Presented by:Rupesh kumar, Dayanand Sagar Business School Bangalore

Contents       

Introduction Success of Nike Market Share Swot Analysis Strategy Policies Competitive Analysis Conclusion

Introduction     

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It started as Blue Ribbon Sports in 1962 It was incorporated as ‘Nike’ in 1973 Founders Philip Knight Bill Bowerman Headquarters - Beaverton, Oregon United States Products - Athletic Sports, Apparels,

Revenue Slogan Ranking

Sports Equipments & Accessories - 15 Billion $ - Just Do It - 163 in Fortune 500

Brand Ambassador : Michael Jordan ,Roger Federer , Tiger Woods, Maria Sharapova and Michael Schumacher > Nike recently teamed up with Apple Inc. to produce the Nike+ product which monitors a runner's performance via a radio device in the shoe which links to the iPod nano > Employees : 30,200

Nike’s Mission Statement "To bring inspiration and innovation to every athlete in the world. If you have a body, you are an athlete." Nike Subsidiaries : Cole Haan , Bauer Nike , Hurley Intl & Converse Inc. It has 184 US Nike Stores Such as NikeTown, Nike Factory Stores & Nike stores

Success of Nike  In the year 1980 Nike surpassed Adidas  Nike had a sales of 270 million $ that was

almost 50% of the U.S market  It had very good product positioning.  Tracking shoes & Basket-ball shoes were huge hit  Nike’s core competencies were marketing, Styling ,technology and close relationship

Nike Products

Market Share Nike - 47 % Reebok -16 % Adidas -6% Converse - 3 % New Balance -3 % Others -25 %

Total Revenue is $ 16.3 billion

U.S-5.7 Europe-4.3 Asia-Pacific-2.0 America -1.0 Others-1.9

In Billion $

Total Revenue of Products FootWear-7.8 Apparel-4.1 Athletic-1.1 others-3

In Billion $

BCG Matrix of Nike

Swot Analysis Strengths  Global Reach  Globally competitive brand image  Globally competitive manufacturing costs  Cutting-edge technology / R&D  Dominant market share at high-end price points

Swot Analysis Weakness  Dependency on 12-24 age demographic  Negative image from manufacturing practices  Increasing reliance on EU and Asia for growth  Leadership turmoil

Swot Analysis Opportunities  Beijing Olympics  China  Companies/Brands may present other acquisition candidates  Increased sales due to strengthening of economy

Swot Analysis Threats  Growing Competition  Fashion Shifts in Footwear market  Adidas/Reebok Merger

4 P’s of Nike 

Product – athletes shoes, apparel, accessories.

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Price – Premium range (INDIA).

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Place – Outlets (globally).

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Promotion – Integrated Marketing communication (IMC).

Strategies Policies  Accelerating growth through focused

execution.  Delivering superior, innovative products.  Supply Chain a Competitive advantage  Deepening relationships with customers.

Market Entry Strategy Representatives in own Country

Market Entry Strategy

Joint Venture Licensing or Franchising Own Subsidiary

Competitive Analysis Adidas & Puma – The two companies controlled over 75% of Europe’s athletic shoe and apparel market. Adidas, in particular, was respected for the quality of its shoes and had earned the reputation as the European performance brand For decades, the two companies had developed the grassroots allegiance of local sports teams

Competitive Analysis Reebok Reebok sold its shoes direct to retailers through seventeen Independent sales organisations Reebok followed a limited distribution strategy Its shoes were sold only specialty athletic retailers, sporting goods stores, and department stores. With the exception of Britain, Sweden, and Denmark, Reebok had relatively little success in Europe.

Pricing Strategy High Price

> Nike Comes under Ceiling price > The cost of making one pair of Shoes is less than $25

Ceiling Price

> But it adds more than $15 for Compensating & paying for R&D, Advertisement and sales team

> To add up the total cost for one pair of shoes will be $80 Low Price

The Three Cs model for Price Setting

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