Nike case study

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CASE STUDY


Visual Merchandising NIKE

Bhavana Sawant Saurav Oraon Fashion Communication - 5


NIKE Nike, Inc. is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and sales of footwear, apparel, equipment, accessories and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area. It is one of the world’s largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment. As of 2012, it employed more than 44,000 people worldwide. In 2014 the brand alone was valued at $19 billion, making it the most valuable brand among sports businesses. Nike has a strong network of retailers in 200 countries worldwide through distributors, licensing and subsidiaries. Within the USA there are 18000 stores that retail Nike products. 
Nike’s customers include a variety of people from different ages and genders of upper middle class and affluent audience. The company targets active people and their customers wear the fashionable shoes for sports, leisure, and other activities. Nike’s segmenting market typically target’s athletes, both women and male generally from the ages 15 to 35. Nike’s targeting market is people who enjoy high quality sporting goods, especially footwear. To do so Nike focuses on creating premium consumer experiences on product innovation, brand leadership and elevated retail presence.


Nike is further targeting geographic expansion and farther marketing penetration in all regions. Though disciplined operating management, the company still continues to target long range mid teen earnings per share growth. In Greek Mythology, the word Nike” is associated to the goddess of success, representing ‘honored conquest’ on the battleground. When Bill Bowerman and Phile Knight founded Nike, they aspired to inspire this myth in every product. Primarily, Nike focused on top quality sports shoes but then branched out quickly to all kinds of sportswear. Their objective was not just to aid the world’s finest sportsmen find new degree of accomplishment, but to morph the normal person into a new place of Nike athleticism. The founder wanted each client to believe that through purchasing Nike products, they would obtain success, power and happiness. Nike stores are consistent with this dream. As a money making business, the branding strategy of Nike is to persuade its client into buying merchandise.


Store experience

THE STORE


CASE STUDY: Nike in Khar, Mumbai Nike is a globally recognized sports and fashion brand that is well known for their quality and trendy sportswear all over the world.

Store Details: Format: Specialty Store Size: 1160 square feet Operation Hours: 11:00 am - 09:30 pm Address: Shop No 2 & 3, Shyam Vihar Building, Linking Road, Khar West, Mumbai 400052, Opposite Khar Telephone Exchange Contact: +(91)-22-26461696


The Sport

This sports brand has been in the fashion line for many years and has been doing a great job by offering the people with the best. The products of the company are crafted for comfort, style and performance. The brand is one of the most admired and preferred brand globally by the leading sport stars of all kinds of sports around the world. It is endorsed by some of the most leading sports teams and individuals around the world. Nike India is one of the best and the most preferred brand of the people in the country. Its sports shops in Mumbai are located at all the prime locations for better feasibility to the consumers. For the brand freaks in Mumbai one of the leading stores of the brand is situated at Khar.

The Sports Wear

This brand has a wide range of products for all the needs of the consumers that goes well on the sports ground as well as for casual wear. They have a huge collection of accessories for each and every sport as per the changing needs of the consumers. Nike Cricket range of accessories is crafted for the cricketers of the nation and is also the official sponsor of the Indian cricket team. They even have the Nike Football range of goods that has the designs, colours and the combination of performance and precision. Nike shoes store have the Nike Running accessories that are well admired brand for the athletes and for the people who love walking with comfort. Nike Basketball range is also preferred by many leading basket ball teams around the world with a slam dunk.

Other Collections by Nike The brand also has the Nike + range of products that symbolize style and performance. They have sportswear that can be used for sports as well as casual use. Nike Store has products like T-shirts, sweat shirts and other such accessories that look stylish but also give the feel good comfort. The collection has the best and the most vibrant colours and designs that go well on every occasion. The brand is a constant eye catcher amongst the youth crowd who always want the best. They have been the sponsors of many other sports like ice hockey, hockey and tennis. Nike is the best brand that gives you the oomph and comfort factor at the same time. http://www.justdial.com/Mumbai/Nike-Store-%3Cnear%3E-Opposite-Khar-Telephone-Exchange-Khar-West/022P1927564_BZDET


Giral Jain Chowk at Linkin Road, Bandra

Location at the cross roads

Opposite the store

From across the street


Graphics to the left of the store

Facade neon lighting and graphics

Display window promoting Lunar Flyknit

Entrance of the store


Merchandise displayed on wooden shelves, face-out bars and D-bars on hangers.

Shoes of different uses in sports kept on foot pads in a wall setting for full display.Graphics used to promote the products in the background and centre.


Different merchandise display using hangers on bars.

Use of only one full body manequin for Sports wear. Reference images: http://www.justdial.com/Mumbai/Nike-Store-%3Cnear%3E-OppositeKhar-Telephone-Exchange-Khar-West/022P1927564_BZDET


LUNAR FLYKNIT In-store Promotions are done for Lunar Flyknit in the form of Display, and for Nike Air Max in the form on a small installation inside the store, with graphics.


NIKE AIR MAX


Customer Experience The store chosen for this case study is located in a prime location of Bandra, Mumbai. It lies at a crossroads at Giral Jain Chowk, at Linkin Road. The front facade is covered in graphics promoting its latest technologically advanced sports’ shoes: Lunar Flyknit. The display at the front uses attractive neon lighting giving it a very sporty look. The entrance is a glass door with large graphic boards on either side. On the extreme right of the front enrance is the window display setting showcasing the Lunar Flyknit with visuals in the background. As soon as you enter, the store gives you a sporty vibe. With NIKE’s latest promotional song ”DA DA DING” playing in the background, the store gives a very positive feel. There are two pillars on either side of the store that create a visual block for a couple of merchandise. These pillars are used effectively for adding posters and photographs of famous sportsmen. The sports shoes, either ways, remain undisturbed in sight. You get to see a lot of graphics in the store. From inspirational quotes made my sportsmen of important people, to promotional pictures of the products, the store is well covered. You also get to see one tiny installation near the right pillar in a glass case promoting the NIKE Air Max, which shows a shoe hanging from a balloon. It is trying to show that the shoe is lighter than air, which is a brilliant way of display according to us. There is enough space for good circulation in the store and your eye movement is clockwise in direction which gives perfect results for customer purchases. The lighting in the store is mostly bright with a lot of neon lights used to give the store an active feel and sporty look.


The first thing you notice when you enter the store is the foot padded wall used to display all of the sports shoes. The variety of different types of shoes of different uses, and price range sets in a need to know more about the products. There were six salesmen at work who were delightfully helpful. The manager of the store was also available at all times to give us information about the particular store. After the foot padded wall, you get to notice the wall to the right which has all kinds of merchandise. Dri-fit jerseys, footballs, caps, joggers, etc. are to name a few products that are either hanging on hangers or kept on wooden shelves, Each rack consists of at least 10-12 articles. A small door leads into the stoage room of the store. From the right, we move onto the back side of the store, when is typically the part of the store that faces outside the front entrance. This section mostly has a lot of Gym wear clothing such as cycling shorts, tights, t shirts, etc. To the right of that, is another section which consists of the new range of sports shoes displayed beautifully over grass textured base and graphic background. On the left wall of the store, you will find more merchandise of the same kind stacked on shelves, hung on racks, or folded neatly on flat surface fixtures. The cash counter is a small counter behind a pillar between two upright metal stands that have small merchandises such as gloves, belts, wrist bands, socks, etc., hanging on it. There are two seating couches. One in front of the foot padded wall, and one infront of the new range of shoes collection.


Back Door

Wall Television

Foot paded wall

PLAN

Storage area

General floor plan of the store

Seating Storage area

Shelves

Shelves

Gondola

Cash Counter

Gondola

Shelves

Face - out Bar

D - Bar

Shelves

Mannequin Seating

Shelves

Front Entrance Foot paded wall

Installation

Installation

Shelves

Storage Entrance

Pillars

The store is strategically mapped out to help in a spaceous and comfortable circulation pattern, with fixtures for display of its products to improve customer experience. It has a comfortable seating for trial of footwear and installations for promotion of products along with the television and graphics.


Manager Interview: Manager Name: Nazim Sheikh Why is this location chosen?: Market Area Area: Bandra, Linkin Road, Khar West


Target group: 15-35 year old Role of Graphics in Branding: Awareness, attraction and giving direction. Use of interactive technology: None. Only sales men interact with customers. Promotions: Promotion schemes aren’t used by the particular outlet. No discounts. Theme Setting: Fall - Winter/ Drop side line collections Customer Response: Very good response since the customer service is friendly, helpful and informative. Customer choices: Mostly running, training and soccer wear and shoes. Competitive Brands: Reebok and Adidas. The competitive brands had a store close to this outlet, but they shut down recently causing higher footfall at Nike. Conversion Rate: 30-35% Recall Value: 10 % Emotional Feel: Sporty look Footfall: 120 customers


Designer’s General Observations : Why is this location chosen: Since the market area is close by, it is very easy to attract customers. It has more potential to sell its products due to the rich market hence helping in raising economic growth and profit margins. Theme: Sporty. Façade and Window: Simple glass entrance with posters on either side of the entrance door. Use of protional graphics. Display window to the right of the store, showcasing promotional product. Positive/Negative Space: 60% positive space for easy circulation. Circulation: Comfortable walking space except near the pillars. Anti - Clockwise store circulation. Integration of Architectural Space: Pillars used effectively to display graphics. Grooves in walls used to install torso mannequins productively. Cone of visibility: Two pillars on either side of the store act as visual barriers to the products placed behind them. Materials used in VM: Acrylic, Glass, Plastic, Thermacoal, Steel, Sunboard, Fake grass, Cloth.


Back Door

PLAN Circulation inside the store

Storage Entrance

Storage area

Storage area

Front Entrance

The circulation inside the store is very spaceous, except near the left hand side pillar. There is ample amount of positive space (approximately 60%) for easy movement. Circulation happens in the anti-clockwise direction.


Back Door

Storage area

Storage Entrance

Storage area

PLAN Cone of visibility from inside the store

Front Entrance

The two pillars block the view of the products displayed behind them. The visibilty is restricted to the front graphics, television and the cash counter.


Back Door

Storage area

Storage Entrance

Storage area

PLAN Cone of visibility from outside the store

Front Entrance

The two pillars again block the view of the products displayed behind them. The visibilty is restricted to the front graphics, entrance and television. A few products displayed on the foot padded wall can also be seen on the right.


Back Door

Storage area

Storage Entrance

Storage area

PLAN Cone of visibility from inside the store to the right

Front Entrance

The pillar to the right blocks visibility of the mannequin behind it. Cone of vision is clear for the products displayed on this side of the store.


Back Door

Storage area

Storage Entrance

Storage area

PLAN Cone of visibility from inside the store to the left

Front Entrance

No visual block to the left of the store. Cone of vision is clear for the products displayed on this side of the store.


Zoning: Products placed according to the type or the category it belongs to. For example, all running shoes were were placed on the foot pad setting on the front wall as soon as the customer enters the door. Whereas, the speciatlity range of soccer shoes were placed on a different foot pad setting to the left of the entrance with neon lighting and a grass textured base. All the apparel was placed to the right of the store on D-bars and other fixtures. Types of Display: D-bars for hangers, foot pad wall for shoes, high rise stands and face out bars for sports wear. Wooden shelves for sports items and hangers on rods for clothing. Mannequins: Two torso mannequins and one full body mannequin. Graphics: Pictures of famous footballers and quotes in frames on walls. Imagery related to the brand used. Posters on each shelf. Pillars also consisted of graphics, mostly imagery. Graphic is the main element used in the store. Placement of forms and props: 1. Glass box for an conceptual installation next to a pillar to show the lightweight comfort of the show in the form of a thermacoal ball suspended by a string. Done for the promotion of the new NIKE AirMax 1 – Ultra Flyknit 2. One neon light installation at the entrance with the shoe on top. Lighting: Use of neon lights and fluorescent neon strips in installtions and for back-lighting graphics and one pillar. The store is well-lit using many ceiling swivel down lighters at alternate distances.


Back Door

PLAN Zoning of the store The store has been divided into men and womens category seperately for gym wear as well as for sports shoes.

Storage area

Key

Storage area

Symbol

Representation Impulse Buying Gondola Reception Desk/ Cash Counter Unisex Specialty Sports Footwear

Storage Entrance

Men’s sports and gym wear Unisex sports and gym gear Seating Area Unisex Sports Footwear Pillars Front Entrance


Back Door

PLAN Fixtures and props The store has a variety of props and fixtures in the store for enhancing the customer experience. Most of them are wall fixtures but some remain lonestanding. Storage area

Key Symbol

Representation

Storage area

Impulse Buying Gondola Wooden shelves and cabinets for hangers Installations

Storage Entrance

Foot padded wall set up Wall set up with television for display Seating Area D bars, face out bars, rods and mirrors Pillars Front Entrance

Mannequins


Back Door

PLAN Store Graphics The store used differernt types of graphic visuals to communicate about the brand identity and it’s use worldwide. It showcased international footballers’ quotes, inspirational dialogues as well as promotional graphics.

Storage Entrance

Storage area

Storage area

Key Symbol

Representation Promotional Graphics Inspirational Quotes of Celebrities Infographics Photoframes of quotes and footballers Nike backlit sinage

Front Entrance


Back Door

PLAN Lighting of the store Storage area

Storage Entrance

Storage area

The store has been divided uniformly for lighting with overhead swivel down lighters placed at alternate distances. Also, a lot of back lighting is used for attraction purposes, mostly placed alongside or behind the graphics.

Key Symbol

Representation Fluorescent strip lighting Neon Backlighting Swivel down lighters Spot light

Front Entrance


Designer’s Critical Observations : Layout: The layout is evenly distributed, spaceous and well planned with good intergration of wall grooves and use of empty spaces for installtions. Shopping Experience: Good experience with helpful and informative staff members ready to help at every point of purchase. Customer is given top most priority in the store. Payment and packaging of the proctucts are done smoothly improving the experience. Management Perspective: The management is well co-ordinated. Staff is very helpful and friendly. Manager is available throughout the visit for any queries and doubts. The salesmen are genlte and kind. The housekeeping maintains the store cleanliness up to the mark. Communication Design: The promtional graphics, info graphics and inspirational grapgics communicate the brand identity perectly. Neon lighting gives the store that sporty feel.


Appreciation: Good use of graphics. Neon lights superbly communicate the sporty feel. The store is consumer-centric which helps the customer feel important, whether he buys a product or comes for gathering information. Helpful and friendly staff and management. Criticism: Too many swivel lights. Very less product emphasis. Problem: No changing room available. The television was not working. Only one registrar on the small cash counter. Suggestions: Use better lighting. More neon lights with spot lighting for products would enhance product purchases.


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