Nike Brand Study Analysis overall
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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
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MILESTONE EVENTS
Source: xroads.virginia.edu
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1964
1996 1993 1984
19741971
2003
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LOGO EVOLUTION
1971 1978 1995
Source : thisisparachute.com,2016
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”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
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”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
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”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
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”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
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”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
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ORGANIZATIONAL STRUCTURE
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Geographical breakdown of NIKE’S revenue.
48%
20%
5%
11%
3%
14%
North AmericaWestern EuropeCentral & Eastern EuropeGreater ChinaJapan Emerging Markets
Source : Nike Annual Report 2015
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Nike hierarchical decision making pyramid.
Global Headquarters
Regional Headquarters
Subsidiaries
Source : Inside the NIKE matrix,WU university 2013
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• Matrix organizational structure or flat organizational structure.
What is Matrix Structure ?
Source : Inside the NIKE matrix,WU university 2013
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Regional Matrix Structure
Source : courses.lumenlearning.com
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VISUALMERCHANDISING
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Store location: SaketSize: 1200 sq. ft.No. of employees hired: 13No of employees on duty: 8
Displays changed monthlyDecorated for upcoming events.
Merchandise organised:gender first and then usage.
Well lit, low-key music.
FIRST STORE
Source: tiinfotech.co.in
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SECOND STORE
Store location: Connaught PlaceSize: 1600 sq. ft.No. of employees hired: 14No. of employees on duty: 10
Displays are changed monthly
Merchandise organised: gender, design and sizes.
Source: magicpin.in
Bright and somewhat noisy.
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THIRD STORE
Store location: Ashok vihar Size: 1000 sq. ft.No. of employees hired: 10No 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
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COMPETITOR ANALYSIS
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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 storesworldwide
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
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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
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MARKETING MIX
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Shoes Apparel Equipments
Product
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Niketown retail
outlets
Official Online store
Retailstores
Place
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Advertising
Personal selling
Direct marketing
Sales promotions
Public relations
Promotion
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Average price range : 4,000 - 20,000 INR
Value-based pricing strategy
Price
Customers Value Price Cost Product
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The BCG Growth-Share Matrix
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2011 2012 2013 2014 20150
5
10
15
20
25
Nike's athletic footwear share from 2011 to 2015
Glo
bal m
arke
t sha
re (%
)
Source :Statista.com,2016
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2011 2012 2013 2014 2015$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
1151913428
1463516208
18318
NIKE Inc. Athletic foortwear revenue ( $ in million)
Source: NIKE annual report (2014,2015)
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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
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BCG Matrix
Source : Self Developed
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STP (Segmentation, Targeting and
Positioning)
Source : Strategic Marketing,2016
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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
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Aggressive Marketing
Desired products through customization process
Sports team or celebrities.
Nike cross training.
Target Strategies
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Market PositioningSp
orts
Util
ity
LOW
HIG
H
LOW HIGH
Price Source: Self Developed
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DEMOGRAHPIC AND PSYCHOGRAPHIC
NAME: Muskan Puri Gender: FEMALEAge: 20Marital Status: UNMARRIEDOccupation: STUDENT (Psychology Hons, DU)City: NEW DELHIFamily income:Rs. 4,00,00,000-Rs. 6,00,00,000 (per annum) Motto: Live life to the fullest
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CONSUMER DILO
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MOOD BOARD
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Corporate Social Responsibilities
Source : about.nike.com
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“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
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Minimize environmental footprint. Transform Manufacturing
Unleash human potential Source : about.nike.com
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PRODUCT RANGE
Source : store.nike.com
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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 & Mitts• Belts• Drawstring Bags• Duffel Bags• Tote Bags
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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
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POSTERS
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Source: Self Developed
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Source: Self Developed
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Product Detailing
Fall/Winter 2016
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Women Wear NIKE INTERNATIONALWOMEN'S GRAPHIC LEGGINGS
₹3,095Elastic waistband Reflective logo stands out in low lightFabric: 57% cotton/32% polyester/11% elastane
NIKE POWER LEGENDARYWOMEN'S PRINTED MID-RISE TRAINING TIGHTS
₹6,495Fabric: Body: Dri-FIT 80% nylon/20% elastane. Flat seams Pocket at waistband for storing small items
NIKE TECH FLYKNIT JOGGING PANTSINR 7538Drawstring waistbandBiker stitching detailsFabric69%Cotton 31%Polyester
NIKE X KIM JONES SWEATPANTSINR 15589Ribbed cuffs at hemElastic strap for roll-up carryingFabric :70%Cotton 30%Polyester
Source: store.nike.com
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NIKE X Kim JonesNIKELAB WINDRUNNER X KIM JONES TOP
INR 17639Front half snap button placketHigh collar,Short sleevesFabric : 100% POLYESTER
NIKE PRO HYPERWARMWOMEN'S LONG-SLEEVE TRAINING TOP
₹3,595Dropped hemFabric: Body: Dri-FIT 87% polyester/13% elastane.
NIKE SPORTSWEAR RALLYWOMEN'S CREW
₹4,195Dropped back hem Raglan sleevesFabric: 63% cotton/19% polyester/18% rayon
NIKE PRO HYPERCOOLWOMEN'S 3" (7.5CM APPROX.) TRAINING SHORTS
₹2,495Elastic waistbandFlat seams Fabric: Body: Dri-FIT 80% polyester/20% elastane.
Source: store.nike.com
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NikeLab X Riccardo TisciNIKELAB X RT FLORAL PRINTED JACKETINR 19468Non-detachable drawstring hoodAll over print placement Fabric: 100 % POLYESTER
NIKE COOLWOMEN'S RUNNING TOP
₹1,895Cap sleevesFabric: Dri-FIT 100% recycled polyester
NIKE DRY TEMPOWOMEN'S 3" RUNNING SHORTS
₹2,295Interior drop pocket and back zip pocketFabric: Dri-FIT 100% polyester
NIKE PRO INDYWOMEN'S LIGHT SPORTS BRA
₹2,295Thin, adjustable straps for a personalised fitFor light-impact sportsFabric: Body: Dri-FIT 88% recycled polyester/12% elastane.
Source: store.nike.com
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Men wear NIKE DRI-FITMEN'S TRAINING TOP
₹1,795Ultra-soft Dri-FIT Fabric: Dri-FIT 100% polyester
NIKE LEBRON MAXMEN'S TROUSERS
₹5,295Tailored fit for streamlined comfortSide zip pockets and back pocketFabric: Dri-FIT 92% polyester/8% elastane
NIKE FLEXMEN'S 7" RUNNING SHORTS
₹2,195Vented hemMultiple pocketsFabric: Body: Dri-FIT 100% polyester.
NIKE ELITEMEN'S BASKETBALL SHORTS
₹2,595Stretch waistSide welt pocketsFabric: Dri-FIT 100% polyester
Source: store.nike.com
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NIKE THERMA HYPER ELITEMEN'S BASKETBALL HOODIE
₹5,495Tapered fit and dropped back hemZip kangaroo pocketFabric: 100% polyester
NIKE DRY CONTOURSHORT-SLEEVE RUNNING TOP
₹2,795Crew neck with interior tapingFabric: Dri-FIT 100% polyester
NIKE AEROLOFT HYBRIDMEN'S BASKETBALL JACKET
₹17,995Articulated cuffs designed for ball handlingDropped back Fabric: 100% Polyester
AIR JORDAN 11MEN'S JACKET
₹6,995Elastic cuffs and drawcord hem Foldover collar for a classic lookFabric: 50% nylon/50% cotton
Source: store.nike.com
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JORDAN CLOUDED NIGHTMARESMEN'S T-SHIRT
₹2,195Rib crew neck with interior tapingFabric: 100% cotton
NIKE POWER SPEED FLASHMEN'S RUNNING TIGHTS
₹7,295Drawcord offers a snug, Zip pocket on right hipFabric: 74% polyester/26% elastane
KYRIE ELITE SWEATSHIRTMEN'S BASKETBALL HOODIE
₹4,595Multi-panel hood Kangaroo pocket with internal media-cord portFabric: Dri-FIT 100% polyester
NIKE WINDRUNNERMEN'S JACKET
₹4,99526-degree chevron Fabric: 100% polyester
Source: store.nike.com
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• 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
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• 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
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• 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/nke-5312014x10k.htm (Accessed: 21 November 2016).
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• 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.