...study Objective of the study Scope of the study Methodology Project findings Recommendations 1. 2. 3. 4. 5. 6. References Executive Summary As Prahlad and Hat point out, the economies of vastly populated countries such as China, India,and the former Soviet Union present a profusion of consumers and immense growth potential for multinational corporations. The trick is for senior management to fully understand that this market possibility exists and that tapping into it may require a radical departure from the traditional, developed-economy mindset. As Nike’s financial record indicates, market saturation and intense competition in Tier One economies has squelched Nike’s growth trajectory. While the Swoosh continues to penetrate typical Western markets, tapping into the increasing numbers of “middle and lower class” consumers in emerging markets could offer a phenomenal expansion opportunity if the firm can create the right business model. In addition, beyond the potential economic benefits from this venture, Nike’s World Shoe Project also offers a credible response to the labor issues that have buffeted the company, and leverages their efforts to minimize the environmental impact of their production activities. • Introduction/Background of the study The words “Just make me the shoe!” echoed down the boardroom table to Tom Hartage a 17 – year veteran of the running shoe company, Nike Inc. Tom Clarke, president of the company in 1998, had attended...
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... Nike Nike Inc. was first founded in 1964 as “Blue Ribbon Sports” by Bill Bowerman and Phil Knight. It wasn’t until 1971 that it was re-named “Nike” after the Greek winged goddess of victory, strength, speed, glory, and fame. The Nike “swoosh” is meant to represent the wings of the goddess Nike, as she was often depicted in mythology with. The iconic swoosh was created by Caroline Davidson, an advertising student at Portland University. She was a freelancer asked to design a graphic logo that could fit on the side of a shoe by Phil, and she sold him her design for $35. The first interaction between the founders of Nike was in 1959, when track coach Bill Bowerman met Phil Knight; who was a runner at the University of Oregon where he was coaching. The need for the company arose out of Bill’s desire to find lighter, more durable racing shoes for his university track team, and Phil’s desire to find a way to make a living without having to give up his love of sports. The two put their heads together, and the end product was a company that now dominates the market in its sportswear segment, despite having begun as a small distributing outfit from the back of Phil’s car. While Phil was obtaining his MBA degree at Stanford in the 60’s, Professor Frank Shallenberger assigned his students with a project; the goal of which was to devise a small business and a marketing plan for its success. Building on his earlier brainstorms, Phil’s project consisted of the idea...
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...Murad Tahirov Marketing Spotlight-Nike The Nike story begins with its founder, running enthusiast Phil Knight. In 1962, Knight started Blue Ribbon Sports, the precursor to Nike. At the time, the athletic shoe industry was dominated by two German companies, Adidas and Puma. Knight recognized a neglected segment of serious athletes whose specialized needs were not being addressed. The concept was simple: Provide high-quality running shoes designed especially for athletes by athletes. Knight believed that "high-tech" shoes for runners could be manufactured at competitive prices if imported from abroad. Without much cash to do any advertising for his products, Knight crafted his "grass roots" philosophy of selling athletic shoes: Speaking to athletes in their language and on their level; sharing their true passion for running; and listening to their feedback about his products and the sport. Each weekend Knight would travel from track meet to track meet – both high school and collegiate competitions--talking with athletes and selling Tiger shoes from the trunk of his green Plymouth Valiant. The company's commitment to designing innovative footwear for serious athletes helped it build a cult following that rapidly reached the American consumer. By 1980, after just under two decades in the business, Nike had become the number one athletic shoe company in the United States. Unfortunately for the company, this wave of success was soon to crest as rival companies...
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...share in China – Li Ning. It is worth noting that Nike does not have a Chinese online website store to facilitate customers to come online and learn/buy Nike’s products. b. Price sensitivity – Developing markets are generally price sensitive markets. Nike’s premium and high quality brand image doesn’t sync with the expectations of the customer. In other words, the differentiation strategy might not bring as good results as it had brought in the USA. 3. Significant reliance on IT and sophistication in managing supply chains. Nike is heavily dependent on information technology systems across our supply chain, including product design, production, forecasting, ordering, manufacturing, transportation, sales, and distribution. Nike’s ability to effectively manage and maintain our because the product design and innovation forms the backbone of the company. Nike success 1. The key reasons for the success of Nike are associated with its global brand promotion. Due to its extensive advertising campaigns the Nike’s brand is known in almost every household worldwide. 2. Nike (now, called the unofficial sponsor!) has generated the most buzz online in the lead up to the World Cup. Much greater than Adidas, it’s arch-rival and official sponsor. Coca Cola, Sony, Visa and other FIFA partners are lagging far behind. 3. Nike shoes and other accessories have also become the favorite fashion products for teenagers. 4. Nike is known around the world for being one of the iconic...
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...produce and market their product, but the success of smaller companies is oftentimes shaky. Brand loyalty, ample capital, and broad based sourcing create an environment where the bigger companies such as Nike and Reebok have little trouble maintaining market share. Nike enjoys the largest share, with 42.3% of the nearly $8 billion market in the year 2000. Reebok was second with 11.9%, Adidas had 10.8%, and New Balance had 9.6% of the market. The remaining 25% must be divided among the numerous smaller companies fighting for a shot at survival. NIKE Corporation NIKE Corporation was incorporated in 1968. NIKE has primarily been in the business of designing, developing, and marketing athletic footwear, apparel, equipment and accessories. NIKE Corporation is a well managed company in an attractive industry, the company has a strong brand image, and they are effectively capturing the value created from their investment. NIKE is dependent upon high technology in their effort to stay ahead of their competitors and produce products. ucts and machines that actually make the shoes. Its success had been fueled by the use of low wage labor in developing countries, accompanied by highly acclaimed marketing strategies and advertising campaigns. Key factors that influence success of NIKE If a company is able to establish brand awareness, they will have a significant advantage in grabbing consumer's attention and, therefore, market share. In today's society where consumers have significantly...
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...Nike Fuelband Bracelet and its market shares in Moscow Region Table of content Executive summary………………………………………………….....................................3 Introduction & Methodology…………………………………......................................5 Part 1. Situational analysis (analysis of secondary data)………………………........7 Part 2. Qualitative data analysis.………………………………..................................12 Part 3. Analysis of the survey (experiments)................................................16 Conclusions on Data Analysis........................................................................16 Part 3. Recommendations.............................................................................16 Bibliography..................................................................................................17 Appendices....................................................................................................18 Executive summary The topic of this marketing research is to highlight how can a company such as Nike can improve its market share on a specific product. Thus during this research, we need to have a look on the customer point of view regarding the product and its facilities. The product at stake for this research is the Nike Fuelband Bracelet. This is a sport bracelet that people put on their wrist and it measure during sport activities and everyday life, the footsteps and the calories used during the day. In fact, it is a tool...
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...produce and market their product, but the success of smaller companies is oftentimes shaky. Brand loyalty, ample capital, and broad based sourcing create an environment where the bigger companies such as Nike and Reebok have little trouble maintaining market share. Nike enjoys the largest share, with 42.3% of the nearly $8 billion market in the year 2000. Reebok was second with 11.9%, Adidas had 10.8%, and New Balance had 9.6% of the market. The remaining 25% must be divided among the numerous smaller companies fighting for a shot at survival. NIKE Corporation NIKE Corporation was incorporated in 1968. NIKE has primarily been in the business of designing, developing, and marketing athletic footwear, apparel, equipment and accessories. NIKE Corporation is a well managed company in an attractive industry, the company has a strong brand image, and they are effectively capturing the value created from their investment. NIKE is dependent upon high technology in their effort to stay ahead of their competitors and produce products. ucts and machines that actually make the shoes. Its success had been fueled by the use of low wage labor in developing countries, accompanied by highly acclaimed marketing strategies and advertising campaigns. Key factors that influence success of NIKE If a company is able to establish brand awareness, they will have a significant advantage in grabbing consumer's attention and, therefore, market share. In today's society where consumers have significantly...
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...Math Research Project: Nike, Inc. January 28, 2015 Carl Carlson UNIBE 14-0635 Nike, Inc. is an American multinational corporation that is in charge of development, design, marketing, and selling of innovative footwear, apparel, equipment, accessories and services. Its headquarters are in Beaverton, Oregon. It is one of the world’s largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment. According to Forbes, Nike is considered the world’s most valuable sports brand in 2014, with an estimated brand value of $19 billion. Nike was first founded by track athlete Phillip Knight and his coach Bill Bowerman as Blue Ribbon Sports on January 25, 1964. They started as a distributor for Japanese shoe maker Onitsuka Tiger. By 1971 Blue Ribbon Sports launched its own line of footwear bearing the Swoosh design or what most people know as the Nike tick. It later officially became Nike, Inc on May 30, 1971. Nike sells a wide variety of products, including shoes and apparel for sports. In their annual report they state that they focus in eight key products consisting of Running, Basketball, Football (Soccer), Men’s Training, Women’s Training, Action Sports, Sportswear (our sports-inspired lifestyle products), and Golf. Nike also teamed up with tech giant Apple to produce Nike+ products that monitors a runner’s performance over a period of time. Nike is also well known in hip hop culture for their urban fashion clothing. Nike has also made advancements...
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...Team Project – Part 2 Team 5 – Hawkeye Marketing Stephanie Jensen Moyin Li Joseph Snyder Yuqi Sun Wenzhe Zhang Introduction to Marketing University of Iowa Tippie College of Business 03 April, 2016 Nike Segments Consumers by Athletes and Non-Athletes In a time when most things are no longer in simple black and white, Nike remains binary by segmenting its consumers into two distinct, opposite categories: athletes and non-athletes. While these segments are particularly broad, there’s a reason for it: it would be impractical to target the two groups in the same way. To successfully reach the company’s target markets, Nike employs differentiated marketing strategies. Athletes are mainly targeted with one of Nike’s major marketing strategies: the “hero athlete” (Kalb). The company pairs up with prominent athletes to endorse their brand. Athletes will then wish to be affiliated with these sports figures, so they will go out and buy Nike footwear to accomplish this. Contrastingly, in order to successfully target the non-athletes, Nike employs ad campaigns to inspire and motivate them to continue working hard. Around the London Olympics in 2012, Nike launched a new campaign with ordinary people enjoying themselves in their respective niches. The campaign was titled “Find Your Greatness,” and it included slogans such as, “Greatness doesn’t need a stadium.” This appealed to everyday citizens, because if someone else just like them can enjoy doing something that makes them...
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...Final Marketing Plan NIKE, Inc. Executive Summary As a heavyweight company that manufactures all its own products, NIKE is able to reach into just about every aspect of the sports market. All its’ products are developed, from the apparel to the footwear, and are able to reach women, men, and children throughout the globe. NIKE creates products tailored for just about every sports event: “running, training, basketball, soccer, sport-inspired casual shoes, and kids’ shoes. It also markets footwear designed for baseball, cheerleading, football, golf, lacrosse, outdoor activities, skateboarding, tennis, volleyball, walking, and wrestling”. All this gear is available through NIKE’s retail stores, including, but not limited to, trademarks such as “Cole Haan, Converse, Chuck Taylor, All Star, One Star, Star Chevron, Jack Purcell, Hurley, and Umbro”. Another successful marketing strategy is to implement the face of a famous athlete with the product in order to increase popularity. This has been done with Michael Jordan and the Nike shoes’ “Jordan’s”. Furthermore Nike has even granted customers the ability to have a degree of customization in shoe products that they order. This is yet another successful method that has greatly yielded to the customer’s specific designs. This idea of catering to a customer’s design is considered a breakthrough and currently this appears to be that path Nike is following on. A shop was opened where customers could design shoes that Nike would make...
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...Executive Summary The project was written to observe NIKE sports footwear marketplace as the firm is overly great and the firm differs from its competitors with its extensive variety of products. In this study researcher will also analyse the company by applying PESTEL analysis, SWOT analysis, Porter’s five forces, BCG matrix and generic strategy of the firm. Nike purposes and improves the earth footwear marketing. However the company also manufactures and sells sports gear, sport fashion and accessories. Products of Nike are managed and sold in 180 countries in the world by operating its physical stores and distributers. The company purchases raw materials such as synthetic rubber, plastic compounds, and foam cushioning materials, nylon, and leather to produce Air-Sole lessening parts that is used in production of footwear. The core aim of the firm though they are manufacturing their footwear goods is to avoid the rain and maintain warmth. There are 11 supplies centers that the company has in the world. Company’s four major product line can be listed as footwear, clothing, equipment and other. 32,500 individuals work for Nike. In 2008 the income of the company was $18,627 million, which displays 14.1 per cent increased from 2007. The net profit was $1,883.4 million, and growth of 26.3% over 2007. The variety of goods Nike manufacture for variety of sports and fitness actions, such as; Athletic footwear, golf, cycling, Nike Air, Swoosh Design NIKE, (http://www.nikebiz.com...
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...Athletic Footwear and Apparel Industry GROUP 7: Kirsten Ross April Rust Wenjun Zhao Elizabeth Poe Xaio Li Juexin Feng Friday, February 24, 2012 *link for photo: Deviantart nike 1 NAICS/SIC Codes NAICS code SIC Code 316211 316211 316219 316219 316219 316219 316219 316219 316219 316219 3021 3021 3149 3149 3149 3149 3149 3149 3149 3149 Description Athletic shoes, plastics or plastics soled fabric upper (except cleated), manufacturing. Athletic shoes, rubber or rubber soled fabric upper (except cleated), manufacturing. Athletic shoes (except rubber or plastics soled with fabric upper) manufacturing. Cleated athletic shoes manufacturing. Footwear, athletic (except rubber or plastics soled with fabric upper), manufacturing. Golf shoes, men’s cleated, manufacturing. Golf shoes, women’s cleated, manufacturing. Leather upper athletic footwear manufacturing. Shoes, athletic (except rubber or plastics soled with fabric upper), manufacturing. Vinyl upper athletic footwear manufacturing. Friday, February 24, 2012 2 Major Economic Characteristics of the Industry • Billion dollar industry • This market is beginning to decline somewhat, however experts expect there could still be some small bursts of growth occasionally. • Characterized by having a small number of large players. Friday, February 24, 2012 3 Industry Driving Forces • Fashion trends (+) • Change in society (healthy lifestyle) (+) • Changes in consumer sports preferences (sport popularity)...
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...maintaining an average annual growth of 6% in net sales (giving 1% of their revenues to environmental causes and providing thousands of dollars in looking for technology which could make them reducing the environmental impact of their production) and at the same time they are targeting a 10% annual growth in sales for next five years. The problem is that Patagonia didn’t do much planning scenario on a medium and long-term basis to analyze the impact and viability of this project. • The possible alternatives are: 1) Patagonia should try to increase their revenues by reducing their prices to attain a wider market (their actual niche-market, ‘the dirty-bags’ is about 38 years old and has a 120 K per year). This only represents a very small part of the population. They need to target young customers as well. 2) They may try to go global, but they need to make sure they first understand each region’s business environment, appropriate distribution channels, etc. and determine what they need to modify their products to be relevant in the respective target regions. 3) They may expand more in other distribution channels such as e-commerce. This would reduce their costs and give customers a friendly online experience. 4) They could invest more in marketing (they currently invest less than 1% of their net income in marketing). 5) They may create a new brand with lower price products, and consequently lower quality, to be able to compete with brands such as Nike, and avoid losing...
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...long-term success of a business. The environmental scan continued use by present and future businesses to scan, examine, calculate, and project the internal and external elements of their marketplace. Companies use a SWOT Analysis to establish the performance of the markets environment. The company will analyze consumer and competitor’s behaviors, trends, strengths and weaknesses in the market. Performing an environmental scanning and SWOT Analysis is vital to an organization’s success. SWOT Analysis A) give a detailed assessment of the opportunities, trends, and consumer existing in their market environment. B) Establishes an awareness of their markets environment so that their company can increase the strategic planning and decision-making process. (U.S. Department of Health and Human Services, n.d.). C) Establish the internal resources needed to achieve their organizational goals and objectives. D) Establish the vision and strengths to identify the companies’ strengths, weaknesses, opportunities, and threats. (CPS Human Resource Services, 2007). To show the importance of environmental scanning and the competitive advantages that could arrive from using this assessment tool, this paper will conduct an environmental scan on Nike Inc., and A.O. Smith Water Products Company. The environmental scans of these corporations will a) examine how Nike Inc. and A.O Water Products Company create value and sustain their competitive advantage through business strategy. B) Analyze the measurement...
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...Nike READ THE ARTICLE BELOW ON NIKE. There must be few people in the world who are not aware of the athletic footwear company, Nike. Since 1972, it has earned billions of dollars in the USA and around the world, selling footwear and later other items of clothing. Now the brand has been extended1to watches and many other products. Nike’s success suggests2 that everybody loves Nike, but if you type the name into the search engine3 on your computer, you will find many sites protesting against Nike and calling for a boycott on Nike products. Most of these focus on the employment conditions4 in the factories where the footwear is made. . -\ How does a company react to organised5 negative publicity? What would you do? What has Nike done? Before you read on answer these questions: ■ What does Nike produce? ■ What do you associate6 with the 'brand7' Nike? ■ Why do some people not love Nike? The History of Nike The origins of the company grew from the University of Oregon in the United States. American universities are fiercely proud of8 their achievements9 on the sports held. Promising athletes10 can win 'sports scholarships11’ which fund12 their university education whilst1 they represent the university teams. Universities hire the best 3 sports coaches1 and build the best stadiums. 4 Extended: udvidet • zsuggests: antyder • 3search engine: søgem askine * 4empIoyment conditions: arbejdsforhold * 5organized: organiseret • 6associate:...
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