NIKE
Mercedes Gerhardt
“To bring inspiration and innovation to every athlete in the world.”
Nike’s corporate goal is to continue creating inventive new products that will help athletes advance to their full potential, and create business opportunities that will put Nike above their competition, while providing value for their shareholders.
Through adoption of sustainable business practice, Nike is committed to intergenerational life, helping the environment, and increasing quality and value for their customers, shareholders, and business partners.
Philip H. Knight Chairman of the Board of Directors/ Founder
Bill Bowerman Co‐founder
Mark G. Parker President and Chief Executive Officer
Sports equipment Gear (Water bottles, sunglasses) Athletic shoes Apparel Uniforms NikeID (Customize shoes) Live strong Jordan SparQ Timing/Watches Cole Hann Hurley Chuck Taylor All Star Umbro Converse
Geographics:
Region: All regions City Size: Less or more than 100,000 Urban/Rural: Both Climate: Multiple
Demographic:
Age: 16 to 60 Sex: Male and Female Family Life Cycle: 4 or Less Income: $25,000 to over $50,000 Education: College Occupation: Professionals Religion: All Race: All Culture: North America, Western Europe, China, Japan
Psychographics:
Social Class: Middle to Upper Marital Status: Single or Married Personality: Driven, Motivated Life‐Style: Active Interest: Being involved in sports or exercising
Customer Behavior:
Benefits desired: Enhance Performance Usage Rate: Medium Brand Loyalty: Divided Usage Situation: Sports or at home Media Usage: Newspaper, TV, Sports magazines
Adidas/ Reebok Puma
New Balance Athletic Shoe Under Armour K‐Swiss Inc.
Adidas
Comparables to Nike:
They offer a less expensive product than Nike with the same quality. Owns Reebok Does better in Europe/ Large soccer brand Partnering with Samsung in creating a shoe plus a phone scheme that uses wireless biometrics to display information on an adidas‐branded Samsung phone. Wanting to combine technology in apparel Is contracted with several Big Ten college sport teams What Nike Does Better
Nike is now the licensed partner with the NFL. They have control over apparel as well as fan gear. Nike has a better out reach of customers than adidas in the US. Nike has more SBU’s. Nike has better factory conditions. Nike E‐commerce layout is easy to use.
Puma
Comparables to Nike:
Collaborates with high fashion designers worked with Alexander McQueen and Sergio Rossi. Offers sailing apparel. Products are less expensive. Environmentally continuous. Motorsports product.
What Nike Does Better: Nike has more sales in footwear and apparel. Nike sponsors more charitable events, such as the Chicago Shamrock Shuffle. Nike is more popular and purchased more frequently in the US. Nike sponsored more soccer teams in the 2010 World Cup.
Demographics:
Strength‐ The customer can afford to spend money on the products and can afford to be loyal to the brand.
Weakness‐ Nike doesn’t reach out to younger customer, which has a potential for increasing revenue.
Psychographics:
Strength‐The customer lifestyle is revolved around being active and using Nike products.
Weakness‐ The customer is getting bored with the same product.
Geographics:
Strength‐ There are several locations that a Nike product can be sold and bought for example a Niketown store or sporting good store. There are 700 shops in 45 countries, making it convenient for customers across the globe.
Weakness‐ There are very few stores in rural areas.
Behavioral Buying Traits:
Strength‐ Customers are loyal to the brand and keep up with the latest products.
Weakness‐ Nike comes out with few new products in several sporting areas.
Product mix
Strength‐ Customer will venture to other Nike products because of the great customer service associated with the name. Weakness‐ Income of the business is heavily involved in footwear, which makes in vulnerable in the apparel market.
Pricing Strategies
Strength‐ Customers recognize the highest quality at the lowest price. Weakness‐ Nike is not willing to match a competitors lower price on a similar product.
Promotion
Strength‐ The customer will watch sports and commercials where the Nike brand is marketed. An example is Nike shoes being worn by NFL teams or a specific athlete. Weakness‐ Some of Nikes other product and product lines aren’t marketed as well.
Distribution
Strength‐ The store has a wide distribution channel, which allows for on time delivery for customers. Weakness‐ Suppliers in overseas countries can slow down or prolong distribution.
Competition
Opportunities‐ Nike could focus more on fashion forward items and create sunglasses and jewelry. The recent association with the NFL has the potential to drive sales.
Threat‐ Competitors are becoming more aggressive and creating high quality products. There is also an increase in athletic shoe brands.
Economics
Opportunities‐ There is a possibility to expand into other countries and create more jobs.
Threats‐ The recession could result in closing of stores and the loss of numerous jobs.
Nature
Opportunities‐ Economy boosting projects will encourage recycling, helping the fight against global warming. There is also an opportunity to create active wear that is adjustable to weather change.
Threats‐ The textile industry damages the atmosphere. Nike is struggling to retain their eco‐friendly reputation.
Politics
Opportunities‐ An opportunity is donating to a political charity or campaign.
Threats‐ Donating to a controversial campaign could cause loyal customers to no longer support the company, such as donating against gay marriage.
Objectives for Products:
Create 2 new niche products by May 2013 that pushes competition aside.
Strategy 1:
Tactic 1: Offer a new product that has a Garmin gps device in it, with an armband that helps track the customer location, heart rate, mileage, and calories burned. The device will act like a machine found in the gym but for those that like to be out doors. The Garmin device can also send the information to smart phones and keep a daily workout log.
Tactic 2: Create a product by collaborating with Garmin for marathon runs. Create a pacing devise for runners and allow them to see their time compared to other runners.
Strategy 2:
Tactic 1: Create a type of dry fit that keeps the moisture off the person but also maintains a constant cooling temperature once the body temperature reaches a certain point. This would be an essential item for marathons in the summer or warm climates. It could reduce the risk of dehydration and injury.
Tactic 2: Water resistant shoes that allow off terrain runners to keep their feet from getting wet and resisting blisters or other foot conditions.
Collaborate with technology companies for more efficient workouts.
Create a product that keeps the athlete safer and resistant to weather conditions.
Objective for Market‐orientation: Super bowl 2012
Offer 2 new promotions with the new affiliation with the NFL by
Strategy 1:
Tactic 1: By making each new customer fill out a form with name and e‐mail at random or by raffle the winner will be chosen. The company then can offer other promotions through e‐mail. There will be four different winners in a 2‐month time period before Super bowl 2012. The winner can pick their favorite team; we would offer a flight and two‐night stay.
Tactic 2: There can be five winners throughout the football season. The winners get to meet the promotional player for Nike at the time. The Nike promotional player chooses the winners.
Strategy 2:
Tactic 1: Give out a scratch off card to every customer that comes into the store and makes a purchase that has the chance to get 10% off or the chance to win the Super Bowl tickets. Only one customer wins with two tickets available. The scratch off cards will be given out during the holiday season, December through January.
Tactic 2: Offer a limited edition shirt oriented with the two NFL Super bowl teams. When the customer purchases the shirt there is a promotional code on the receipt they will receive. The customer then enters the code on the website for their chance to win the two tickets. This technique brings people into the store to purchase the shirt and potentially other items, as well as brings them to the website. The offer will start in January and end a week before the Super Bowl.
Offer a promotion for a chance to get Nike gear and meet a NFL football player.
Offer a chance for one frequent Nike customer to win Super Bowl 2012 tickets.
The evaluation of the new product is based on the consumer interest in the product. The advertisement and marketing team will be assessing the success of the monokini. The product was a great idea but there wasn’t a large enough market that swims for exercise. Those that do swim for exercise don’t have to buy suits often. The other draw back to the product is that the monokini isn’t stylish enough for women to purchase it for other use. We should have pretested the product by placing it in Niketowns with salespeople suggesting women to check it out. This would have cut cost on production and eliminate spending more on a flop product. The accounting team looked at our product against sales and determined there was no return on investment. The initial sale price was priced reasonably for the company and the quality of the product. There were several IMCs, which allowed for frequency and reach for the product. One major media that marketing missed was exclusive swim magazines, such as “Splash”.