Business Marketing Management

NIKE
Presented by:-
Rupesh kumar,
Dayanand Sagar Business
School
Bangalore
 Contents
 Introduction
 Success of Nike
 Market Share
 Swot Analysis
 Strategy Policies
 Competitive Analysis
 Conclusion
 Introduction
 It started as Blue Ribbon Sports in 1962
 It was incorporated as ‘Nike’ in 1973
 Founders - Philip Knight
Bill Bowerman
 Headquarters - Beaverton, Oregon United States
 Products - Athletic Sports, Apparels,

Sports Equipments & Accessories

 Revenue - 15 Billion $
 Slogan - Just Do It
 Ranking - 163 in Fortune 500
Brand Ambassador : Michael Jordan ,Roger
Federer , Tiger Woods, Maria
Sharapova and Michael Schumacher
> Nike recently teamed up with Apple Inc. to
produce the Nike+ product which monitors a
runner's performance via a radio device in
the shoe which links to the iPod nano
> Employees : 30,200
 Nike’s Mission Statement

"To bring inspiration and innovation to every

athlete in the world. If you have a body, you
are an athlete."

Nike Subsidiaries : Cole Haan , Bauer Nike ,

Hurley Intl & Converse Inc.

It has 184 US Nike Stores Such as NikeTown,

Nike Factory Stores & Nike stores
 Success of Nike
 In the year 1980 Nike surpassed Adidas
 Nike had a sales of 270 million $ that was
almost 50% of the U.S market
 It had very good product positioning.
 Tracking shoes & Basket-ball shoes were
huge hit
 Nike’s core competencies were marketing,
Styling ,technology and close relationship
Nike Products
Market Share
Nike - 47 %

Reebok -16 %

Adidas -6%

Converse - 3 %

New Balance -3
%
Others -25 %
Total Revenue is $ 16.3 billion

U.S-5.7
Europe-4.3
Asia-Pacific-2.0
America -1.0
Others-1.9

In Billion $
Total Revenue of Products

FootWear-7.8
Apparel-4.1
Athletic-1.1
others-3

In Billion $
BCG Matrix of Nike
 Swot Analysis
Strengths
 Global Reach
 Globally competitive brand image
 Globally competitive manufacturing
costs
 Cutting-edge technology / R&D
 Dominant market share at high-end
price points
 Swot Analysis
Weakness
 Dependency on 12-24 age demographic
 Negative image from manufacturing
practices
 Increasing reliance on EU and Asia for
growth
 Leadership turmoil
 Swot Analysis
Opportunities
 Beijing Olympics
 China
 Companies/Brands may present other
acquisition candidates
 Increased sales due to strengthening of
economy
 Swot Analysis
Threats

 Growing Competition
 Fashion Shifts in Footwear market
 Adidas/Reebok Merger
 4 P’s of Nike
 Product – athletes shoes, apparel,
accessories.

 Price – Premium range (INDIA).

 Place – Outlets (globally).

 Promotion – Integrated Marketing

communication (IMC).
 Strategies Policies
 Accelerating growth through focused
execution.
 Delivering superior, innovative products.
 Supply Chain a Competitive advantage
 Deepening relationships with customers.
 Market Entry Strategy

Representatives in own Country

Market Entry Joint Venture

Strategy Licensing or Franchising

Own Subsidiary
 Competitive Analysis
Adidas & Puma –
The two companies controlled over 75% of Europe’s
athletic shoe and apparel market.
Adidas, in particular, was respected for the quality of its
shoes and had earned the reputation as the European
performance brand
For decades, the two companies had developed the
grassroots allegiance of local sports teams
 Competitive Analysis
Reebok

Reebok sold its shoes direct to retailers through seventeen

Independent sales organisations

Reebok followed a limited distribution strategy Its shoes were

sold only specialty athletic retailers, sporting goods stores,
and department stores.

With the exception of Britain, Sweden, and Denmark,

Reebok had relatively little success in Europe.
 Pricing Strategy
High Price
> Nike Comes under Ceiling price
> The cost of making one pair of Shoes
is less than $25
> But it adds more than $15 for
Ceiling Price Compensating & paying for R&D,
Advertisement and sales team

> To add up the total cost for one

pair of shoes will be $80
Low Price

The Three Cs model for Price Setting

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