Nike brand extension_vasu_pal_pgp30117

Analyzing brand extension positioning through brand management concepts and competitors analysis

1. Nike Brand Extension

2. 2006 Nike+ 2014 Women’s Training 1972 Footwear 1979 Apparel Brand Extension Over the Years

3. Rank: 1 st Global Value Share: 2.4% Industry Analysis: Footwear & Apparel World’s Market size: US$ 268 bn Global growth rate(2009-14): 8.5% Nike Market size: US$ 25 Global growth rate(2009-14): 12.4%

4. Product What Need does it satisfy ? What Features does it have to meet these Needs? How is it differentiated versus your competitors ? How is it Branded ? First a Player is Branded and then a Brand is created out of that players name eg : Air Jordan

5. Place Where do buyers look for your product or service?

6. Price Is the customer price sensitive ?  No, given the functional value one is deriving out of it What discounts are offered to trade customers, or to other specific segments of your market ? End of the season sales to the end customers Are there established price points for products in this area? Yes, both shoes and Apparel segments have established price points How will your price compare with your competitors ? Price Leader - Charge a premium for Brand and superior technology Premium Price

7. Promotion

8. Promotion Bill Boards

9. Promotion You Tube Channel Magazine Ad

10. Target Segment Demographic: Age: 8-60 Gender: Male/Female Occupation: Any Target segment include anyone who is into running or any kind of sports. Also include people looking for sports apparel

11. Consideration Set of Target Segment Nike Inc and Adidas Group lead the market, with a combined share of 27% in 2014, up from 24% in 2009. Typically, these two producers hold key global sponsorship deals, and brand equity is supported by massive marketing spend.

12. Competitor’s Product comparison Edge Air cushion Technology Cooling technology - SHOE Point of Difference

13. Shopping Mall Competitor’s Place comparison Point of Parity Both have factory outlets where shoes can be bought at lower than the market rate and there is an year round sale ! Multi-Brand & Single Brand Outlet Nike Adidas

14. Competitor’s Place comparison Digital Channel Nike Adidas Point of Parity

15. Competitor’s Price comparison Basket Ball Shoes Nike Adidas Nike is charging premium on shoes over its main competitors This strategy is consistent with all product range from apparel to gadgets Point of Difference

16. Competitor’s Price comparison: Brand Extension Women Black Tee Nike is charging premium on a lower range than in the shoe category over its main competitors Point of Difference Nike Adidas

17. Competitor’s Promotion comparison Bill Boards Point of Parity Nike Adidas

18. Competitor’s Promotion comparison Nike Adidas Point of Parity Sport Sponsorship

19. Competitor’s Promotion comparison Point of Parity Nike Adidas Multiple youtube channels

20. Perceptual Map Price Low High Sports utility Low High Sport Tees Nike Reebok Adidas Puma

21. Nike Brand Extension Positioning Performance oriented, safe and best in quality Sportswear for Anyone playing sports, running or fitness training Special innovative solutions for promoting running, exercising and playing sports – Remain Fit Safely

22. Nike Brand Extension Positioning - Analysis Earlier Positioning : Safest and fastest shoes for enhancing sportsperson performance Target Group : Anyone interested in playing and running Extension Positioning : Performance oriented, safe and best in quality Sportswear for Anyone playing sports, running or fitness training. Target Group : New customer base have been added from sportsperson to anyone who aspire sports outfit Perfect Fit Observation : In the above figure the Brand Extension of Nike footwear - Both the Sports Apparel and Total sports Apparel has been constantly increasing YOY from 2009-2014 Conclusion: Brand extension positioning has been apt and successful as they catered the Latent demand of target segment

23. Vasu Pal Age: 25 years Previous Work Experience: Deloitte, Accenture Specialization: - Finance, Systems Summer Internship: Standard Chartered Brand Management Project

24. THANK YOU