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PREPARED BY:

Jadav Nidhi 09bba018 Jepal Vinod 09bba019 Joshi Helly 09bba020

OVERVIEW OF THE PROJECT


Internal
History, Nike overview Key Factors Vision and Mission

Analysis
SWOT analysis Graphical presentation

External
Research & development Advertisement Other external practices

Evaluation & findings


Suggestions Conclusion References

HISTORY
1962: 1962: Phillip Knight, a Stanford University business graduate and former member of the track team, arranges to import athletic shoes from Japan and sell them in the U.S.. Knight created Blue Ribbon Sports as a cover name for his small-scale shoe-selling operations. 1964: William Bowerman becomes a partner by matching Knight's investment of $500. 1965: Hires a full time employee, and annual sales reach $2,000. 1978: The company changes its name to Nike. 2001: Nike opens its first Nike Goddess store, a unit targeting women, in Newport Beach, CA.

ORIGIN OF THE NAME AND THE SWOOSH


Nike is the Ancient Greek goddess of victory. It is one of the most recognized symbols in the world The Swoosh, Simple, Fluid, Fast.
(Quote from Nike s website)

EVOLUTION OF THE SWOOSH LOGO

BRAND AND LOGO


The Swoosh only cost $35. Memorable, simple in form, workable in all sizes, invokes a strong signal.

NIKE OVERVIEW
Headquarter: Beaverton, OR, Washington Country. Type: Public Ltd. Industry: Textile Apparel, Footwear & Accessories. Market Cap: 21.738 billion (F.Y. 2010) Ranked 173 in the Annual ranking of America's largest corporations (Fortune 500 magazine)

CONTu
Nike s principal business activity is the design, development and worldwide marketing of high quality footwear, apparel, equipment, and accessory product Distributed in over 160 countries around the world: (Asia, Australia, Canada, Europe, Latin America, and the United States) Nike is the largest seller of athletic footwear and athletic apparel in the world. Employees: 26,000 worldwide. 6,50,000 in Nike contracted factories around the globe.

CONTu
Headquarters of Nike Key people:
Philip Knight (Chairman)

Mark Parker (President & CEO)

BUSINESS STRUCTURE
Operating Segments:
Footwear Apparel Equipment

Operating Regions:
U.S.A. Europe, Middle East and Africa (EMEA) Asia Pacific America

VISION STATEMENT
To bring inspiration and innovation to every athlete* in the world
( *If you have a body, you are an athlete Bill Bowerman, co-founder)

PROPOSED VISION STATEMENT


Continue to bring inspiration to present and future athletes, while maintaining the company's standard of quality for its products.

MISSION STATEMENT
The company aims to " lead in corporate citizenship through proactive programs that reflect caring for the world family of Nike, our teammates, our consumers, and those who provide services to Nike."

PROPOSED MISSION STATEMENT


To continue to offer quality products with increasing growth in the industry and expanding globally. Our mission has always been to provide a competitive edge by developing the most technological products. We also believe our employees are one of our most important assets. To increase the responsibility towards the environment by evaluating the impact of day to day operation and attempts to change operations that have a negative impact.

PRINCIPLE PRODUCTS
Began with long distance running shoes in 1963. Past 17 years: Air Jordan basketball shoes & carry bags. Wide range of shoes, apparel and equipment.

OTHER BRANDS
Cole Haan sells dress and casual footwear and accessories for men and women under the brand names of Cole Haan, g Series, and Bragano Nike Bauer Hockey, manufactures and distributes hockey ice skates, apparel and equipment. Hurley International, based in California, designs and distributes a line of action sports apparel for surfing, skateboarding and snowboarding, and youth lifestyle apparel and footwear. Converse, based in Massachusetts, designs and distributes athletic and casual footwear, apparel, and accessories.

|BRAND AMBASSADORS} OF NIKE


Michael Jordan Michael Jhonson Johnson

Tiger Woods

Maria Sharapova

Mia Hamm Rafael Nadal

ATHLETIC SHOE MARKET SHARE (2008)

NIKE DOMINANCE
Comparison of Annual Revenue
10

2001 Annual Sales (In Billions)

9 8 7 6 5 4 3 2 1 0

Nike

Fila

Reebok

New Balance

Adidas

Corporation

MARKETING STRATEGIES OF NIKE


Focus on finding the most promising customers (kids and women) and introduce more products or improve current ones to satisfy potential increase in demand. Create fact sheets outlining minimum wage discrepancies among countries. Circulate Letters to the Editor highlighting positive aspects of Nike s labor practices. Bring a visible Nike representative to college campuses.

CONTu

Aggressively target budget consumers through sales promotions and discounts on mid-priced shoes. Build a stronger relationship with moderately priced retailers through sales associates. Increase number of Nike outlet stores offering discounted merchandise. Create advertisements that showcase Nike s female shoes by featuring professional athletes and non-celebrity females who use Nike products. Develop a shoe named for a celebrity female athlete, such as Mia Hamm, comparable to Air Jordan s.

WHY THIS STRATEGY?


U.S. Women: Prefer fashion, not footwear, they prefer clothing, we must create a shopping style based in athletic shopping. U.S. Kids: E-commerce, influenced by innovation and design, not only comfort or sports. We need to consolidate U.S sales compared to international sales and international competitors. Difficult to expand towards other sports or population segments.

SWOT ANALYSIS

INTERNAL STRENGTHS AND WEAKNESSES


STRENGTHS:
Strong brand recognition Internet sales Growing international presence Superior research and development department Strong sense of culture in the working environment Successful experience being competitive Successful marketing campaigns

WEAKNESSES:
Lack of stores catering to the active females Poor employment practices at their international manufacturing sites giving a bad reputation Heavy dependency on footwear sales Issues with Footlocker

EXTERNAL OPPORTUNITIES AND THREATS


OPPORTUNITIES: THREATS:

Customer use of company s products change from athletic purpose to a fashion item. General demand for clothing/footwear for leisure activities continues to increase. Growing e-commerce s positive effect since one of company s competitive advantages is Internet sales. Women demand for athletic footwear and clothing is increasing significantly.

Competitors which copy company's business model (high value branded product manufactured at a low cost) Adidas-Salomon AG, top European competitor. The impact of foreign currency fluctuation and interest rates, and political instability. Labor and political unrest in the suppliers countries. Cost orientated customers vs. company s higher-end market.

THE GRAND STRATEGY MATRIX

EVALUATION
Repeat surveys at six month intervals to gauge public perception. Measure growth of domestic shoe sales at six month intervals. Revisit with focus groups to record their opinions of improvements. Separately record sales of mid-priced shoes and women s shoes.

CONCLUSION
Nike is a very strong brand which covers maximum share of its industry, there are also some important points which are lacking in the industry. Nike company facing very tough competition with other popular brands so its very necessary for nike to promote & advertise their product very well.

REFERENCES
www.nikebiz.com www.marketing strategies of nike.com Nike Annual Reports (2008)

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