nike - the comapny

NIKE INC.’s History Timeline:

Bill Bowerman and his University of Oregon runner Phil Knight from Blue Ribbon Sports to distribute athletic shoes.

Knight approaches Jeff Johnson to sell shoes for BRS. Johnson starts selling T-shirts as well.

Knight and Johnson open the first BRS retail store in Santa Monica, California.

Steve Prefontaine becomes Nike’s first endorser.

Nike signs basketball superstar Michael Jordan

Nike hit by allegations of sweetshop labor.

Nike signs Brazilian football superstar Ronaldinho

BRS launches its own Nike shoe under the famous “Swoosh” giving birth to Nike brand.

BRS officially changes its name to Nike and in 1980, Nike takes over from Adidas, capturing more

than 50% of US market share.

Niketown:The 1st home to a new retail-as-theater

experience.

Nike sales top $3 Billion

Net sales top $21 billion Global Expansion, including a strong growth in

China

2012-

1991-

1990-

1979-

1965-

-2006

-1990

-1984

-1973

-1966

-1962

1971-

The Nike Foundation:

The Girl Effect

• In 2008, the girl effect launched as a concept to radically change the way policymakers and funders viewed girls’ development issues.

• In 2010 - Girl Hub, a strategic collaboration with the U.K. Department for International Development (DFID) aimed at transforming the lives of adolescent girls living in poverty by engaging girls themselves as active participants.

• Partnered with some of the most respected organizations and leaders in the development community toward a vision: that adolescent girls are embedded in – and integral to – the eradication of global poverty.

The Acquisition Timeline:

| | |

| | | | | 1988 2002 2004 2007 2013

1998 2003 2008

CONVERSE

HURLEY SOLD

Company Growth:

• Nike Inc.’s shares rose as much as 11 percent to a record high after the world's largest sportswear maker.

• Strength in wholesale orders underscores Nike's brand momentum relative to other market participants.

• Nike's gross margin grew to 46.6 percent from 44.9 percent in the first quarter even as the company spent heavily on promotions during the soccer World Cup.

• Athletic Footwear -54 % of total revenue-Casual Footwear Line

• Apparel-27 % of total revenue

• Rest-Equipment-Sports related business

Core Business Unit:

Market Share:

SWOT ANALYSIS:

• Aggressive• Signs star Athletes• Strong R&D budget• “Swoosh” logo

• Narrow line of products• Primarily Footwear• A very price sensitive biz.• labor and wage laws with

employees

• Innovations in the pipeline• Sports fashion goods• Online Market• Enhance brand visibility by

opening sports academies

• Smart Competitors• Fake products • Adaption of new techniques

and innovation by other brands

MARKETING STRATEGY:

• Product: NIKE has all range of products from sports footwear, apparel, accessories and equipment. They also market head gear under the brand name Sports Specialties through Nike team manufactures.

• Price: NIKE is positioning itself in terms of design, quality and technology, so

definitely commands premium pricing across product categories.

• Place: NIKE started its India business through licensing route. It also avails of targeted advertising in the newspaper eventually spread to all the major metro cities in India.

• Promotion: NIKE discovered that cricket is religion in India and for it to create its brand awareness it has to associate itself with cricket (not with US sports like basketball, tennis, etc.)It also avails of targeted advertising in the newspaper and creating strategic alliances.

• Advertising

• New Media Marketing

• NIKE 6.0

COMPETITORS:

• NIKE dominates a majority of the market share for athletic shoes.

• NIKE has a few clear-cut competitors in the market for athletic shoes. Adidas stands as NIKE’s top competitor.

• The Reebok brand is a subsidiary of Adidas that also owns a decent portion of the market.

• The American-owned company New Balance poses a viable risk to NIKE’s market holdings.

• .Adidas controls the largest portion of the athletic shoe market outside of NIKE and its subsidiaries. Their newer “Adidas is All In” advertisements seek to position their brand as an exciting product that can make any person feel like a rock star

CAMPAIGNS:

RECOMMENDATIONS:

• Nike could look into different markets, for example Rock Climbing, Hiking, etc.• Nike could attempt joint ventures or acquisitions with companies to expand their product portfolio and

also achieve economies of scale and access to markets.• Nike could take their collaboration with Apple one step ahead by forming exclusive gamepads featuring

games like soccer, cricket, golf, NHL, NBA, etc.• Focus on different segments as well. e.g. Age group 50+ with shoes specially meant for walking, custom footwear for women athletes.• Nike should start ‘Ethical’ campaign against the counterfeit production to improve on its image.• Nike could get into partnerships with other firms and setup sporting academies in developing markets as

a brand building exercise.• Nike could make available online training videos of sporting stars and give their access to customers

complementary along with certain range of products.• Nike could also get into sporting accessories like sunglasses which are highly profitable and are

complementary in nature.• Nike could cut down on the contracting in order to avoid threat of imitation and future competition.

NIKE EXTREME+