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By- Rimanshu patel Under the guidance of- Mr. Amitava chowdhury
Company profile & background
• NIKE, Inc. is engaged in the design, development and worldwide marketing of footwear, apparel, equipment and accessory products. . • It sells its products to around 18,000 retail accounts in the United States and through a mix of independent distributors, licensees and subsidiaries in nearly 200 countries. • NIKE is the largest seller of athletic footwear and athletic apparel in the world. • The Company creates designs for men, women and children. • The top selling product category includes running, basketball, children's, cross-training and women's shoes.
eyewear. • In addition to NIKE’s footwear. basic sport equipment. $2. apparel.5 billion. protective equipment. .Products • NIKE sells sports attire and accessories relevant to each sport and sports-inspired lifestyle apparel. in fiscal 2009. socks. sport balls. and accessories businesses. etc. • These subsidiaries combined together account for 13% of total revenues. like bags. the Company sells products under other brand names in particular markets.
developing new products. coaches. . • Its primary areas of marketing remain Net TV and magazines. and leagues like Michael Jordan. styles and categories.to popularize its footwear. • In order to sustain its dominance in the industry and stay competitive. NIKE actively responds to trends and changes in consumer preferences by adjusting the mix of existing product.Marketing and Advertising • NIKE places a significant weight on marketing the company and its products. • NIKE aggressively bonds the contracts with highly successful and influential athletes. and influencing sports through aggressive marketing. apparel and sports accessories. teams.
NIKE competes with numerous athletic and leisure shoe companies worldwide. marketing expenditures. and customer services. costs of production. . technologies. pricing.Competitors • The rivalry in the sports wear industry is very high. • It faces fierce competition in product offerings.
SWOT Analysis Strong customer relationship/satisfaction High product quality Capacity of innovation S Effective marketing strategy trength Strong distribution chain Strong R&D Brand recognition .
SWOT Analysis Overseas manufacturing dependency Decreasing United States market share High product price compared to Adidas W Currency exposure eakness Medium retail presence .
But the consumers that wear NIKE product do not always buy it to participate in a sport event. • The brand is intensely defended by its owners who truly believe that NIKE is not a fashion brand.e. NIKE. attracts the sports as well as non-sports population. being a sports brand. • For the younger generation i. NIKE is a fashion brand.SWOT Analysis Expansion into emerging markets Increased demand in product innovation O Growing segment of women athletes pportunities Biggest opportunity for NIKE Increase in the number of sports events like Olympic. . FIFA • Product development offers NIKE a great opportunity. youth especially. The youths spent a large amount of money in these accessories.
• The dynamic needs and demands of consumers serve as a challenge to the management. . • For a company to succeed in competition there is a continuous need to develop new products with higher quality than its competitors. especially Adidas.SWOT Analysis Fierce industry competition Revenue relies on consumers’ discretionary income T Economic rescession hreats Fluctuation in the currency Biggest threat for NIKE • The greatest threat for NIKE is the inevitable stiff competition from other sports brand. • NIKE operates in the sports shoe and garment industry which is one of the most competitive marketplaces.
Micro environment Demographic Company Cultural Publics Economic Suppliers Company Political Competitors Customers Intermediaries Natural Technological .
Customer analysis (micro environment) • • • • • • • Customer Satisfaction -Good • Customer Loyalty -Good • Customer retention ratio -Good • Market Share -Good • Competitive Price -bad • Number of Customers -Good • Design own shoes optio -Good • NIKE focus has always been on the customer satisfaction. Physiology (study of the integration of the body’s energy systems and responses to the environmental stresses). and Sensory/Perception (subjective evaluation of product attributes. It invests a lot in its product research and development in order to offer better sports apparels to the customers. usability and durability). • The researchers work on the three primary area: Biomechanics (study of human movement). . • It has always striven to provide a competitive edge to foster the best possible performance in its athletes.
. • Its efficient distribution capacity and use of IT to control inventory can be seen in better inventory turnover ratio.03%. extensive research and development effort to design premium concert athletic products for customers.Good NIKE growth: 7% vs. volume manufacturing capacity.5% -Good High advertising cost -bad Better COGS% than competitors -Good Internal analysis • NIKE’s efficient internal operations are reflected through its better financial ratios. industry growth 4. Marketing capability through celebrity endorsement has always been the core competency of NIKE. product differentiation and innovation and distribution capabilities.Financial analysis (micro environment) • • • • Profit Margin :10. • The key success factors associated with NIKE’s success are its distinctive marketing capability.
Internal analysis (micro environment) • Marketing Innovative Products -Good Celebrity endorsement -Good Diversity of online product -Good R&D Integrated researches -Good Product technology -Good High quality product design -Good Good supplier relation -Good IT for inventory control -Good • • • .
Macro environment national & International Economy Government & Politics The Natural Environment Macro environment Technology The Social Structure Demographic Structure .
Global Economy • • • • • • • • • THREATS Economic recession Consumer purchases slowing down Falling international economy. strong economic conditions in other countries . fluctuation in foreign currency & exchange rates OPPORTUNITIES International expansion. building upon its strong global brand recognition.
Ankle Range of Motion etc . Foot-pressure Measurement. Scientific research in products quality & innovation like Motion Analysis (kinematics).Technology • • • • • • OPPORTUNITIES Use of IT in marketing information system.
stable currency conditions and international competitiveness of the tax system . Customer right OPPORTUNITIES Macroeconomic stability. low interest rates.Government/Politics • • • • • • • THREATS Increased legislation Higher price of products.
resulting in customer loss OPPORTUNITIES • Cold/Rainy climatic condition creates a demand for shoes. .Natural Environment THREATS • Natural disasters like earthquake in Japan resulted in loss of lives.
large population more customers. ethnic mix of some countries OPPORTUNITIES Young generation inclination in sports & fitness.Demographic • • • • • • THREATS Baby boomers pushed into late forties are less inclined for sporty activities like running. high income customer buying at premium price . lower income of customers.
Socio-Cultural OPPORTUNITIES • Inclination towards fitness leading to demand for fitness products particularly exerciseapparel. shoes and equipments .
.T H A N K Y O U S I R … .