Nike brand analysis

NIKE- Brand Analysis MBA Presentation

2. Content
•Company profile
•Products offered
•4P’s
•Product line
•Operating countries
•Market share
•Market strategy
•Mode of market entry
•SWOT analysis
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4. Company Profile
•Nike, Inc. is an American multinational corporation that is
engaged in the design, development, manufacturing and
worldwide marketing and selling of footwear, apparel,
equipment, accessories and services. The company is
headquartered near Beaverton, Oregon, in the Portland
metropolitan area, and is one of only two Fortune 500
companies headquartered in Oregon. It is one of the world's
largest suppliers of athletic shoes and apparel and a major
manufacturer of sports equipment, with revenue in excess of
US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As
of 2012, it employed more than 44,000 people worldwide. The
brand alone is valued at $10.7 billion, making it the most
valuable brand among sports businesses.
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5. •The company was founded on January 25, 1964, as Blue Ribbon
Sports, by Bill Bowerman and Phil Knight and officially became
Nike, Inc. on May 30, 1971. The company takes its name from
Nike (Greek , pronounced, the Greek goddess of victory). Nike
markets its products under its own brand, as well as Nike Golf,
Nike Pro, Nike+, Air Jordan, Nike Skateboarding, and
subsidiaries. In addition to manufacturing sportswear and
equipment, the company operates retail stores under the
Niketown name. Nike sponsors many high-profile athletes and
sports teams around the world, with the highly recognized
trademarks of "Just Do It" and the Swoosh logo.
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6. Products Offered
•Nike produces a wide range of sports equipment. Their first
products were track running shoes. They currently also make
shoes, jerseys, shorts, cleats, baselayers, etc. for a wide range of
sports, including track and field, baseball, ice hockey, tennis,
soccer, basketball, and cricket. The most recent additions to
their line are the Nike 6.0, Nike NYX, and Nike SB shoes,
designed for skateboarding. Nike has recently introduced cricket
shoes called Air Zoom Yorker, designed to be 30% lighter than
their competitors'. In 2008, Nike introduced the Air Jordan XX3,
a high-performance basketball shoe designed with the
environment in mind.
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•Several lines of athletic shoes and apparel
•Product mix width consist of athletic shoes, apparel and sports equipment
•Product mix depth, for example, in athletic shoes are basketball, running, baseball etc.
Footwear:
•Running
•Basketball
•Soccer
•Sport-inspired urban shoes
•Children’s Shoes
Performance Equipments:
• Bags
• Socks
• Sport Balls
• Eyewear
• Timepieces
• Electronic Devices
• Bats
• Gloves
• Protective Equipments

8. Price
•Nike’s pricing is designed to be competitive to the other fashion
shoe retailers. The pricing is based on the basis of premium
segment as target customers.
•The price of the products is variable depending on the type and
the size for example a comfortable and good pair of shoes would
cost from 2000 to 18000 rupees.
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9. Place
•Nike shoes are carried by multi-brand stores and the exclusive
Nike stores across the globe. Nike sells its product to about
20,000 retail accounts in the U.S. and in almost 200 countries
around the world. In the international markets, Nike sells its
products through independent distributors, licensees, and
subsidiaries. Independent distributors need not adapt to
local pressures because the 4Ps of marketing are managed by
distributors.
•Nike has contracted with more than 700 shops around the
world and has offices located in 45 countries outside the United
States. Most of the factories are located in Asia, including
Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan,
Philippines, and Malaysia.
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10. Promotion
•Advertizing
•Direct marketing (through e-shop)
•Public relations (sponsorship of many sport teams like football team of
Manchester United, Manchester city, Brazil & many more & India cricket
team)
•Fast Friendly and toll free No :1-800-806-6453.
•E-mail a question : get reply with in 24 hours .
•Nike has a number of famous athletes to create a great deal of attention to
their products. Nike has signed the top athletes in many different sports such
as the Brazilian Soccer Team (especially Ronaldino, Renaldo, and Roberto
Carlos), Lebron James, and Jermane O'Neal for basketball, Lance Armstrong for
cycling, and Tiger Woods for Golf. Sponsoring of events is another great
promotional technique for Nike. It brings attention Nike's products.
•Web sites are a great promotional tool as they cover these events. Nike also
personalize websites. They make the websites exclusively for a sport such as
nikebasketball.com, nikefootball.com, and nikegolf.com.
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11. Product Line
NIKE

Nike Nike + Nike Air Nike
Golf Pro jordan skateboarding
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12. Nike Operating Countries
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United states, India, china, Canada, Pakistan, Bangladesh,
Mexico, Honduras, Dominica Republic, Columbia, Ecuador,
Brazil, Argentina, Chile, South Africa, Lithuania, Belgium, Spain,
Portugal, Morocco, Italy, Bosnia, Tunisia, Moldova, Bulgaria,
Turkey, Greece, Jordan, Israel, Egypt, Sri Lanka, Korea, Japan,
Vietnam, Australia, Indonesia, Thailand, Malaysia, Taiwan,
Hong Kong,
Cambodia,
Argentina,
Chile, Fiji,
Paraguay,

13. Market share
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14. Marketing strategies
•Brand image
•Web site of the Nike
•Customer preferences
•Update itself timely
•Product diffrentiation
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15. Mode of market Entry in India
•NIKE decided to enter into India in the mid-1990s through an
exclusive licensing arrangement with Siera Industrial Enterprise
Private Limited (SIEPL). NIKE positioned itself in the premium
segment. Rather than cricket, the focus was on basketball and
tennis. The performance of NIKE in India was not far below
expectations. This allowed the company to change its plan from
100 percent imports to localization of the product.
•in December 2005, NIKE won the bid to supply official kit to the
Indian cricket team.
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16. SWOT Analysis
STRENGTH
•Almost limitless resources for product development
•Strong at research & development
•Strong marketing campaign - sponsors top athletes. Marketing
practices enables them to expand the athletic market.
•Strong financial position
WEAKNESS
•Offer mostly high range product
•Revenues are still mostly dependent upon footwear sales.
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17. OPPORTUNITIES
•Owners truly believe that Nike is not a “Fashion Brand” but
some consumers feel different.
•Promotion as a fashionable wear, not just sportswear.
•Market share and market capitalization of Adidas and Reebok is
less than that of
Nike 31%,13.4Billion
Adidas 16%,$8.4Billion
Reebok 6 %,$ 4Billion
THREAT
•Allegations of poor corporate social responsibility
•Numerous competition from every sports fashion brands.
•More newcomers in the market
•Negative public perception created by environmental, child
labor, contracted manufacturing issues, and sexual harresment.
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