NIKE INC CASE STUDY

ADITYA RANJAN - 4A
HARSHIT TIWARI – 24A
NEHA GUPTA – 45A
SATYA VEER SINGH – 61A
NIKE HISTORY
▪ Nike has grown from an $8000 company in 1963 to a company with revenues of $13.74
billion for the year ended May 31, 2005

▪ Nike Inc. designs, develops, and markets footwear, apparel, equipment, and accessory
products

▪ 30% market share worldwide

▪ sells its products through a mix of independent distributors, licensees, and subsidiaries in
approximately 120 countries worldwide

▪ It signed the first athletes to wear its shoes in 1973

▪ Nike’s shift from marketing in the more traditional sports (basketball and running) to
other sports (golf and soccer) where it has not been strong traditionally

▪ Nike also uses the athletes to design new products by attempting to meet their individual
goals

▪ All of these methods have allowed Nike to become recognizable by 97% of US citizens
and its sales have soared in the process
MARKET RESEARCH FINDINGS
▪ Marketing research revealed that the awareness of Nike among soccer and golf players
was low and it has decided to work on increasing these numbers

▪ Through marketing research, Nike discovered the pyramid influence, which shows that
the mass market can be influenced by the preference of a small group of top athletes

▪ Nike placed its focus on major sporting events (World Cups and Olympics) and celebrity
athletes that are relevant to the European consumers

▪ best positioning for Nike shoes was one that enhanced performance in sport

▪ Segmentation on the basis of Market research

(i) ultimate athlete

(ii) athletics participants

(iii) consumer that is influenced by the sports culture

 business research to determine the lifestyles and product usage characteristics of a

particular market segment and then design products for that segment
PRESENT POSITION & CHALLENGES
▪ All of these methods have allowed Nike to become recognizable by 97% of US citizens
and its sales have soared in the process

▪ lost its traditional image of a smaller, innovative company

▪ future obstacles in maintaining brand equity and brand meaning

PROBLEMS & SOLUTIONS
▪ Nike would like to increase its share of the athletic shoe market. Define the management
decision problem

▪ The management decision problem is how to increase its share of the athletic shoe
market

▪ Define the appropriate research problems corresponding to the management decision

problem you have identified in A.

▪ To achieve increase its share of the athletic shoe market

(i) Which segment to choose

(ii) is brand equity and brand meaning has impact on athletic shoe market

(iii) If yes how to retain it ?

PROBLEMS & SOLUTIONS
▪ How can qualitative research (exploratory design) be used to study the image of Nike?
Which qualitative research technique/s should be used and why?

▪ The Focused Group interview followed by a questionnaire survey will helpful in study

▪ Give the salient features of the proposed technique.

▪ Salient Features of FGI are fast, reliability of information, systematic, structured

▪ Salient features of Questionnaire survey are it translate problem statement into

answerable questions, motivate target population to reply and minimize response error

▪ Should Nike invest by opening more upscale company retail stores such as Nike Town?
Management is wondering if survey research (descriptive design) can provide an answer.
If Yes, How should such a survey be administered? Discuss

▪ Yes , descriptive design will be able to answer the question. The survey should be
administered targeting the segment and their preference i.e. buying preference, use
preference etc.
PROBLEMS & SOLUTIONS
 Develop a questionnaire for measuring the image of Nike. (make only psychographic
questions with mention of complete scale)

 Develop a sampling plan for administering the survey as proposed in “D”. Also propose
the sample size, after taking valid assumptions. Give the salient features of the proposed
sampling design.
THANK YOU