MITTAL SCHOOL OF BUSINESS MBA (GEN)

Continuous Assessment -2 Analysis Report On

NIKE COMPANY
Course: Research Methodology - 1

Submitted By
Student Name Roll No
Masthan Shaik RQ2141B29
Priyanka Singh RQ2141B30
Vishvjeet Singh panwar RQ2141A83
Abhishek Kharwar RQ2141B32

Submitted To
Dr Pooja Kansra
UID: 12526
Course Instructor
Course Code: QTTM509
Research Methodology I

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Declaration:

We declare that this Assignment is our individual work. We have not copied it from any other student’s work or
from any other source except where due acknowledgement is made explicitly in the text, nor has any part been
written for us by any other person.

Student’s Signature: Student Registration No Student Signature

1. Masthan shaik RQ2141B29

2. Priyanka Singh RQ2141B30

3. Vishvjeet Singh panwar RQ2141A83

4. Abhishek Karwar RQ2141B32

Date of Allotment: -0-2021 Date of submission: 14-10-2021

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Priyanka Singh
Vishvjeet Singh panwar
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 INTRODUCTION

Nike, Inc. is an American multinational business enterprise this is engaged withinside the design, development,
production, and international advertising and income of footwear, garb, equipment, accessories, and services.
The Company is cantered close to Beaverton, Oregon, withinside the Portland metropolitan area. It is the
world’s biggest provider of athletic footwear and garb and a main producer of sports activities equipment, with
sales in extra of US$37.four billion in its monetary yr 2020. As of 2020, it hired 76, seven hundred humans
international. In 2020 the emblem on my own become valued in extra of $32 billion, making it the maximum
precious emblem amongst sports activities businesses. Previously, in 2017, the Nike emblem become valued at
$29.6 billion. Nike ranked 89th withinside the 2018 Fortune 500 listing of the biggest United States businesses
via way of means of overall sales.

The business enterprise become based on January 25, 1964, as “Blue Ribbon Sports”, via way of means of Bill
Bowerman and Phil Knight, and formally have become Nike, Inc. on May 30, 1971. In addition to production
sports wear and equipment, the business enterprise operates retail shops beneath Neath the Nike town name.
Nike sponsors many excessive profile athletes and sports activities groups across the world, with the
surprisingly diagnosed logos of “Just Do It” and Swoosh logo.

Nike, at first called Blue Ribbon Sports (BRS), became based via way of means of University of Oregon music
athlete Phil Knight and his educate, Bill Bowerman, on January 25, 1964. The organization to begin with
operated in Eugene, Oregon as a distributer for Japanese shoe maker Onitsuka Tiger, making maximum income
at music meets out of Knight’s automobile. According Otis Davis, a University of Oregon scholar athlete
coached via way of means of Bowerman and Olympic gold medallist on the 1960 Summer Olympics, his
educate made the primary pair of Nike footwear for him, contradicting a declare that they have been made for
Phil Knight.

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Footwear

Shoes are Nike’s flagship product. The corporation manufactures distinctive footwear for a extensive style of
sports activities, along with basketball, football, golfing, soccer, baseball, snowboarding, hockey, tennis and
volleyball. It additionally makes patron style footwear along with Mary Janes and flip-slops. Nike footwear are
designed for green sports activities overall performance in addition to for aesthetics.

Apparel

Nike additionally produces clothing for sports activities sports, in addition to different sports together with
dance and yoga. If capabilities distinctive collections for its clothing, together with Livestrong, NikePro, Nike
Free and SPARQ. In addition, Nike makes informal garments for guys and women. Many customers put on
Nike garments now no longer only for sports activities sports however additionally for logo status.

Equipment

Aside from footwear, Nike additionally sells sports activities equipment, along with baseball bats, balls,
swimming caps, rackets and golfing clubs. Nike additionally sells gloves and yoga mats, in addition to agility
cones. Other sports activities gadget it sells consists of weights and sports activities guards along with knee
pads, wrap sleeves and shin guards.

Accessories

The corporation is likewise famous for add-ons along with watches, luggage and socks, in addition to patron
generation along with the Nike+ complement for the iPod. Nike additionally sells rubber bracelets, education
DVDs and athletic belts. Many of the luggage it sells characteristic a selected group along with Manchester
United or a college along with UCLA.

785 MORE THAN MORE THAN

CONTRACT 1 MILLION 500,000
FACTORIES FACTORY DIFFERENT
WORKERS PRODUCTS

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Almost all Nike footwear are synthetic outdoor of the United States. The main producer of Nike footwear is
China and Vietnam every accounting for 36% of the entire synthetic international wide. Indonesia bills for 22%
and Thailand for 6% of the Nike footwear which might be being produced international wide. There are 785
settlement factories with extra then 1 million workers. Manufacturing extra then 500,000 distinct products. To
make the shoe the employee first cuts all of the fabric in shapes and paperwork they want to be in, they then
stitch the portions collectively at the higher phase above the only additionally referred to as inventory fitting,
observed with the aid of using getting ready the attachment of higher to the only additionally understand as
lasting. Then the employee attaches and shapes the button heel to its very last shape this procedure is referred to
as heeling. The completing touches are made and any vital add-ons are then connected withinside the procedure
referred to as treeing.

NIKE LOCATIONS
1. Beaverton, United States
2. Byhalia, United States
3. Memphis, United States
4. Olivos, Argentina
5. East Melbourne, Australia
6. Bruxelles, Belgium
7. Sao Paulo, Brazil
8. Markham, Canada
9. Las Condes, Chile
10. Shanghai, China
11. Cergy, France
12. Saint-Ouen-I’Aumone, France
13. Frankfurt, Germany
14. Hong Kong
15. Budapest, Hungary
16. Herzliya, Israel
17. Minato City, Japan
18. Guadalajara, Mexico
19. Hilversum, Netherland
20. Warszawa, Poland
21. Singapore
22. Midrand, South Africa
23. Seoul, Korea
24. Solna, Sweden
25. Taipei City, Taiwan
26. Istanbul, Turkey
27. London, United Kindom
28. Ho Chi Minh, Viet Nam

ADIDAS
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Established in 1949, Adidas is a worldwide logo and Nike’s pinnacle competitor. Nike vs. Adidas contention
cuts throughout extraordinary sectors from shoes, apparel, and sports activities equipment, and accessories.

The logo price of Adidas has extended yr-on-yr for 5 consecutive years and reached $12.07 billion in 2020.

It extended its marketing and marketing spending withinside the US to $688 million in 2019 to capture up with
Nike and additionally partnered with excessive profile celebrities like Kanye West, Pharell Williams, Run
DMC, and Beyonce.

NEW BALANCE

Founded in1906, New Balance extended to turn out to be one of the pinnacle shoes manufacturers withinside
the world. It gives its merchandise in over a hundred and twenty international locations international and
reached $four billion in sales in 2019.

Its proportion of the baseball phase in MLB extended through 1% from 18% in 2018 to 19% in 2019.

Even aleven though New Balance nonetheless trails Nike with 43% of the marketplace proportion and Adidas
at 22%, its current cognizance on the world can assist boom its proportion in 2021 and beyond.

PUMA

Puma and Adidas have a protracted records that is going lower back to 1948. Just like its estranged brother,
Puma has been placing stress on Nike for decades. In 2019, Puma’s internet profits changed into up 40% in
comparison to a 108% boom for Nike.

Puma’s income in Q2 of 2020 dropped through 31% with a internet lack of over $one hundred million because
of the crisis.

Diversity is one of the most up to date troubles for purchasers in 2020. Currently, Puma’s supervisory board is
16% black and 33male, even as Nike’s board of administrators is 15% black and 31male.

This places Puma in a higher function to trap Black Americans and ladies higher than different Nike
competition and alternatives.

REEBOK

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Adidas-owned Reebok is a British sports activities logo that dominated the Nineties with cool shoes and tracks.
The logo has differentiated itself from Nike and different competition with the aid of using presenting premium,
high-cease variety, and mid-variety shoes options. In Q2 pronounced in August 2020, Reebok published a 42
cline in income, and its contracts with the NFL and NBA have additionally expired, that may hinder its
recovery. According to reports, Adidas is seeking to promote Reebok in 2021 for around $1 billion. This is
about $2.eight billion decrease than the $3.eight billion Adidas shelled out for the logo in 2005. five.

FILA

Fila rose to reputation withinside the Nineteen Eighties and became famous amongst city youths and causal
basketball players. The logo declined withinside the past due Nineties however is coming round again because
it became offered with the aid of using Korea Fila in 2007. It is rising because the favored logo for influential
trendsetters like Rihanna and additionally were given an area withinside the 2019 Milan Fashion Week. It
published a brand new income document in 2018 at $2.6 billion and accelerated its sales with the aid of using
205% from 2016 to 2018 alone. Fila is again to compete for marketplace share.

UNDER ARMOUR

With a logo valuation of $four billion, Under Armour has been withinside the enterprise for much less than 25
years however has claimed its role withinside the shoes sector. Both Nike and Under Armour have loved 12
months-over-12 months will increase in income withinside the beyond five years. It has invested over $one
hundred thirty million in restructuring on the grounds that 2017. In the primary 1/2 of of 2020, Under Armour’s
restructuring has deepened its internet loss to $773 million.

LULULEMON

Even aleven though 22-yr-antique Lululemon does now no longer promote shoes, it competes towards Nike
withinside the yoga-stimulated basics. Its trademarked fabric like Nulu and Everlux offers it an top surrender
Nike.

In Q1 2020 ended on May three, e-trade accounted for 54% of its sales in comparison to 30% for Nike all
through the equal period. Overall income boom for Lululemon is better than Nike’s despite the fact that their e-
trade boom fees are similar. Lululemon is catching up quickly.

SKECHERS

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Founded in 1992, Skechers has constructed a worldwide emblem famend for offering less costly way of life and
overall performance shoes. In 2019, its worldwide internet income amounted to nearly $5.2 billion and feature
improved its internet income through over $three billion from 2014 to 2020.

The common charge for Skechers’ shoes manufacturers in 2019 became $21.67, that is decrease than Nike
through a extensive margin.

Nike and Asics have a protracted records that is going again to the Nineteen Sixties whilst Nike’s founder Phil
Knight dispensed footwear made through Onitsuka Tiger, which later have become Asics. It now gives jogging
footwear in Asia, Australia, the US, the UK, and numerous different countries.

About 84% of contestants in 2019 desired Nike’s Vaporfly Next% sneakers, which has reduced Asics’s
reputation amongst athletes from 51% in 2018 to 7% in 2019. But the organization has sufficient revel in to
reclaim its marketplace share...

GYMSHARK

Gymshark is a $1.four billion sports activities emblem based through 28-yr-antique Ben Francis, a former pizza
shipping man from a small English town. Known because the Nike of Gen Z, Gymshark rose to repute through
supplying high-quality $25 athletic shorts and leveraging influencer advertising on TikTok.

In 2020, Gymshark’s sales improved through 40% to reach $330 million. The organization became additionally
boosted through a $three hundred million funding in August 2020 through General Atlantic for 21% of the
emblem.

It can pay eighty ripped health influencers between $6,000 and $100,000 in line with yr to stay and promote the
Gymshark way of life on TikTok and Instagram.

NIKE REVENUE

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Nike manufactures and sells a extensive series of sports clothing and informal wear, along with athletic
footwear, informal sneakers, sports activities apparel, accessories, and gadget. It additionally gives loads of
sport-associated services.

In FY 2020, Nike made $41.three billion in sales, internet profits of $four. Three billion, and has over 76,000
employees. Nike’s gadget sales withinside the U.S. has been declining regularly considering 2014 and changed
into down 14% yr-over-yr from 2019.

It generates round 43% of overall sales from North America, that is its number one market . Since its founding,
Nike has improved internationally and its logo cost has multiplied yr-on-yr considering 2010 to round $34.four
billion in 2020.

It dropped through 60% in Q4 of 2020 amid the disaster and stiff competition. Nike additionally fends off
numerous competitions throughout exceptional sectors from footwear, sports activities apparel, athleisure,
informal wear, and accessories.

TABLE: 1

NIKE Annual Revenue

2021 $44,538
2020 $37,403
2019 $39,117
2018 $36,397
2017 $34,350
2016 $32,376
2015 $30,601
2014 $27,799
2013 $25,313
2012 $23,331
2011 $20,117
2010 $19,014
2009 $19,176
2008 $18,627
2007 $16,326
2006 $14,955
2005 $13,740
FOOT NOTE: Numbers are in Millions of US $
SOURCE: https://www.macrotrends.net

CHART 1
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 NIKE ANNUAL REVENUE
50000
44,538
45000

40000 39,117
37,403 36,397
AMOUNT IN DOLLARS

34,350
35000 32,376
30,601
30000 27,799
25,313
25000 23,331
20,117 19,014 19,176
20000 18,627
16,326
14,955 13,740
15000

10000

5000

0
2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005

YEARS

YEAR AMOUNT

INTERPRETATION

From the above table we can get to know that annual revenue of the nike company been
increasing every year. From year to year the change in revenue is making significant
change. The raise of the graph is increasing.

We can know that the Nike company was performing well ,Nike business was going well
so that the reason the sale was increasing by the sale of the things the revenue of the
company is also increasing simultaneously.

We can see here from year of 2005 to 2006 the change is 1,215, from the year

TABLE : 2

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 NIKE Quarterly Revenue
31-08-2021 12,248

31-05-2021 12,344
28-02-2021 10,357
30-11-2020 11,243
31-08-2020 10,594
31-05-2020 6,313
29-02-2020 10,104
30-11-2019 10,326
31-08-2019 10,660
31-05-2019 10,184
28-02-2019 9,611
30-11-2018 9,374
31-08-2018 9,948
31-05-2018 9,789
28-02-2018 8,984
30-11-2017 8,554
31-08-2017 9,070
31-05-2017 8,677
28-02-2017 8,432
30-11-2016 8,180
31-08-2016 9,061
31-05-2016 8,244
29-02-2016 8,032
30-11-2015 7,686
31-08-2015 8,414
31-05-2015 7,779
28-02-2015 7,460

FOOT NOTE: Values are in Millions of US $

SOURCE: https://www.macrotrends.net

CHART: 2

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 NIKE QUARTERLY REVENUE
14,000

12,000
AMOUNT IN DOLLARS

10,000

8,000

6,000

4,000

2,000

0
21 21 21 20 20 20 20 19 19 19 19 18 18 18 18 17 17 17 17 16 16 16 16 15 15 15 15
/ 20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20
31 31 28 30 31 31 29 30 31 31 28 30 31 31 28 30 31 31 28 30 31 31 29 30 31 31 28
8/ 5/ 2/ 11/ 8/ 5/ 2/ 11/ 8/ 5/ 2/ 11/ 8/ 5/ 2/ 11/ 8/ 5/ 2/ 11/ 8/ 5/ 2/ 11/ 8/ 5/ 2/

QUARTELY

0NIKE INC COMPETITION DATA

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 COMPANY NAME MARKET CAP REVENUE INCOME

Nike Inc 2,48,349 7,37,891 97,173

Lululemon Athleica Inc 50,374 5,02,187 75,137

Deckers Outdoor Corn 9,280 7,90,614 2,83,933
Garmin Ltd 29,681 4,34,495 1,05,855
Crocs Inc 8,120 3,47,058 1,22,698
Ralph Lauren Corporation 8,674 2,11,584 6,852
Pvh Corp 7,740 4,88,659 16,642
Ross Stores Inc 37,715 2,43,850 18,766
Columbia Sportwear 6,329 4,69,838 30,672
Oxford Industries Ince 1,501 1,80,170 10,383
V F Corporation 28,516 1,75,544 17,250
Rocky Brands Inc 365 1,57,201 10,511
Steven Madden Ltd 3,434 4,07,701 21,335
Skechers USA Inc 6,436 6,20,847 47,458
Wolverine World Wide Inc 2,530 3,27,527 -
Perry Eillis International Inc 419 3,26,172 18,475
Callaway Golf Company 5,331 13,75,186 1,46,443
Delta Apparel Inc 187 59,284 2,474
Levi Strauss and Co 10,113 - -
Weyco Group Inc. 219 3,31,736 6,618
carleres Inc 870 2,30,237 -
Guess Inc 1,325 1,66,289 24,068
Fifth & Pacific companies Inc 287 6,99,801 20,856
Under Armour 8,192 5,08,927 33,678
Lconix Brand Group Inc 100 7,61,015 1,79,715
Innovative Designs Inc 13 40,597 -
Ironclad Performance Wear Crop 6 6,24,672 -
J Crew Group Inc 0 1,65,160 -

FOOT NOTE: In $ except Market cap in Millions of $

SOURCE: https://www.macrotrends.net

Question 1. How the revenue of the nike company affecting its marketing cost?

Answer : Nike Revenue and marketing cost OCCURRED FROM YEAR-2005 TO 2018
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 Year Revenue Marketing Cost
2018 $36,397 $3,577.00

2017 $34,350 $3,341.00

2016 $32,376 $3,278.00

2015 $30,601 $3,213.00

2014 $27,799 $3,031.00

2013 $25,313 $2,745.00

2012 $23,331 $2,607.00

2011 $20,117 $2,448.00

2010 $19,014 $2,356.00

2009 $19,176 $2,352.00

2008 $18,627 $2,309.00

2007 $16,326 $1,912.40

2006 $14,955 $1,740.20

2005 $13,740 $1,600.70

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.983228
R Square 0.966736
Adjusted R
Square 0.963965
Standard
Error 1420.672
Observation
s 14

ANOVA
Significan
  df SS MS F ce F
7.04E+0 348.755
Regression 1 7.04E+08 8 6 3.1E-10
2421970 201830
Residual 12 6 9
Total 13 7.28E+08      

Coefficien Standard Lower Upper Lower Upper

  ts Error t Stat P-value 95% 95% 95.0% 95.0%
-
4.2691 - - -
Intercept -7267.66 1702.356 8 0.00109 -10976.8 3558.54 10976.8 3558.54
13.2699 10.4970 13.2699
X Variable 1 11.88347 0.636331 18.675 3.1E-10 10.49703 2 3 2
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INTERPRETATION: -

According to the above output of revenue and marketing cost/advertisement exp from year 2005-2018. We can see
that there is a perfect or strong relationship between the revenue and expenditures by observing the value of Multiple R
i.e., 0.983(approx.).

Values of both R-square and adjusted R-square are same which indicates that 96% of the change occurred in the
revenues due to advertisement expenditure and 2% due to some another factors.

Moreover, the number of observations is 14. And significance F i.e., 3.1% is shows that, it is significant.

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