Profile of Factories

At the end of FY09, Nike contracted with approximately 600 factories in 46 countries to manufacture Nike products.

Our contracted manufacturing base is changing. Nike is executing a long-term sourcing consolidation strategy and
streamlining its supply chain operations, which has, thus far, resulted in a 10-percent decrease in suppliers from
FY06 to FY09. In 2007 we began assessing the contract manufacturing base and undertaking a multi-year strategy
to:

1. Streamline our supply chain to do business with a focused number of contract manufacturing groups

2. Build a strong and sustainable sourcing base for greater operational efficiencies and future growth

3. Align with contract manufacturing groups best positioned to deliver performance product and innovation
that Nike consumers have come to expect

4. Continue to partner with contract manufacturers committed to Nike's corporate responsibility principles

Nike Brand Factories by Region and Product (at FY close, May 31 each year)

Nike contracted with 618 factories to manufacture product in FY09, down from previous years and reflective of our
consolidation strategy that focuses on contract manufacturing group optimization to build a long-term sustainable sourcing
base capable of delivering product, innovation and reinforcing relationships with factories committed to our corporate
responsibility principles.

When you look at the reach of Nike's contracted manufacturing base and the potential risk, it becomes clear why
global supply chains face such serious issues around working conditions. Working in different countries, each with
different regulations and operating environments means there is no one-size-fits-all approach.

Contract Manufacturing Base

Our overall manufacturing base is generally comprised of long-term partnerships, with some fluctuation based on
product sourcing requirements, changing business and fashion trends or general factory performance.

Contract Factory Disclosure

In 2005, Nike was the first company in the industry to disclose its factory list. Nike is committed to supply chain
transparency by updating public disclosure of the contract factories worldwide that are producing Nike-branded
product. We also disclose those factories that make licensed collegiate apparel. Our goal in disclosing our factory
base is to encourage transparency and collaboration with other companies to improve conditions across the industry.
All NIKE, Inc. affiliates are also working to increase transparency around their supply chains. This work will continue
as we anticipate future reporting on all contracted factories serving NIKE, Inc. affiliates.
 Focus Factories
In FY07-09, we prioritized monitoring by focusing on the 20 percent of key contracted factories that account for
approximately 80 percent of Nike's production by volume.

To identify focus factories, we rate high-volume factories using a risk index that assesses five primary factors
designed to focus on the most vulnerable workers:

 Country in which the factory is located

 Factory worker population

 Type of factory operation

 Manufacturing process

 Management and environmental, safety and health (ESH) compliance performance

This index has evolved from FY05/06, as we continue to refine our approach to assessing risk. To further understand
the full range and nature of risks across the NIKE, Inc., supply chain, in 2009 we partnered with Maplecroft, a firm
specializing in global risk assessment around areas such as climate change, pandemics, resource security, terrorism
and human rights. The Maplecroft work will supplement Nike's current risk criteria around focus factories by
providing an additional geographic and specialized issue lens to our current analysis. We expect our relationship with
Maplecroft will deepen our understanding of existing and emerging challenges in work force and environmental,
health and safety management.
In FY09, approximately 180 factories met the criteria of focus factories. For many of our assessments and business
targets, we report on efforts with these focus factories.

We continue to evaluate our risk-based monitoring approach. We anticipate revising our risk index to cover additional
areas, including new source approval, new country approval and other factors.

New Sources
For new factories to enter Nike's supply chain, they must go through our new source approval process. Factories that
have not actively produced with Nike in the past 18 months also must go through this process. In FY07, we added 67
new factories to our contract manufacturing base through this process. In FY08, we added 57 new factories and in
FY09 we added 42.

The majority of new factories were in apparel, due mostly to additions by licensed and agent business and sources
needed for the local market.

Discontinued Orders
In FY05/06 we released details about our process for discontinued orders. In FY08, we created a more formalized
process for discontinuing orders at contracted factories. We discontinue orders based on factory performance,
compliance performance or business consolidation.

The process includes notice to relevant departments within Nike of the closure, assessment to determine an action
plan or response, appointment of a factory exit response team, and development and execution of a Nike action plan.

In March of 2009, Nike announced it would discontinue orders with four footwear factories and a number of apparel
factories within the year. In apparel contract factories, Nike is often one of several buyers and therefore does not
comprise a majority buyer at any one factory. We anticipate further consolidation will occur across all product areas.
As we implement these plans and respond to new and changing business needs, we continue orders over six to 12
months as we engage with stakeholders and government on a responsible transition out of these factories.

To evaluate where to discontinue orders, Nike considers a variety of factors such as innovation, overall performance,
management, strategic capabilities, productivity, quality, craftsmanship and commitment to 
Nike The marketing Environment

Global - Apparel giant said its range of environmentally friendly products will help reduce waste in the supply chain by
nearly 20%.

Nike, previously flamed for using child labour to manufacture its products like soccer balls in Pakistan, has stepped up its
supplier audits and made a more conscious effort to clean up its supply chain and introduce more environmentally-
friendly products.

Nike said these improvements, including waste reduction, will result in some 20% savings in the supply chain, local media
said. 

"We're trying to reduce costs and improve margins," said president and CEO Mark Parker at a sustainability event hosted in
New York. "To make the company more profitable while reducing the footprint we have on the planet."

Nike said that with the "Nike Considered" line, it will work toward the target of ensuring that all its shoes meet strict
environmental standards by 2011, with all clothing meeting the same "Considered" criteria by 2015.

Parker, quoted in local media, said the increased procurement costs incurred by using more expensive environmentally
sound materials would be offset by a more streamlined supply chain. 

Nike said its long-term vision for its "Considered" business is to design products that are fully closed-loop: produced using
the fewest possible materials, designed for easy disassembly while allowing them to be recycled into new product or
safely returned to the nature at the end of their life. 

"As we look at how we design and develop products and run our global business, it's not enough to be solving the
challenges of today," Parker said. "We are designing for the sustainable economy of tomorrow, and for us that means
using fewer resources, more sustainable materials and renewable energy to produce new products."

Product Development & Engineering 

Nike’s Product Creation and Development team are involved in the first stages
of creating new products, commercialization and getting them to our
consumers. This involves everything from idea generation, materials and
construction, materials sourcing, product testing and product confirmation.
They work directly with overseas factories to facilitate product samples, testing
 of color fastness, garment construction, fit, and much more. This team works
closely with Product Merchandising and Product Design. Their main goal is to
get the best product at the best cost point, and delivered on time.

Nike pricing strategy

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Marketing Communications Mix

A company's marketing communications mix consists of its advertising, sales promotions, personal
selling, public relations, and direct marketing. This can and should be different for different companies
and should be something that distinctly identifies one company from another. With all these aspects
coming together, the goal is to communicate customer value and build customer relationships to
strengthen the company (Armstrong and Kotler).

Advertising:

Nike as a whole, does a great job at advertising in my opinion. The swoosh symbol is found on everyone
of their products and is recognized worldwide, especially their running shoes. Every Nike running shoe
has the swoosh sign front and center and there is usually no questioning of whether it is a Nike shoe or
not. And of course, who does not recognize the famous saying, "Just do it." Not only does Nike do a great
job with advertising with just its logo and simple saying, they also utilize famous athletes to wear and use
their products. Advertising can be broad and general at times, but if Nike sponsors an athlete in a
particular sport, people watching that sport will see the products the athlete is displaying. This can allow
Nike to advertise some of their products that are more geared to a certain sport to the consumers that are
particularly interested in that sport (http://www.nike.com/nikeos/p/nike/en_US/). I am aware that Nike is
not the only brand that utilizes this form of advertising, but they have certainly mastered it with athletes
such as golf star, Tiger Woods.

Personal selling:

Nike utilizes a personal selling method in every one of their retail stores. The sales associates in these
stores have direct contact and interaction with the buyers of Nike products. Because they are the
individuals that directly communicate with the consumers who are interested in Nike products, they must
be able to aid in the process of a successful sale. They are knowledgable of the brand and should be
trained in asking customers the 'right' questions in order to figure out what they are looking for. To ensure
optimal performance from the sales teams, Nike will often send Nike representatives to retail stores that
sell their sneakers to give little presentations to keep the sales associates up-to-date on the products and
the technology behind them. I know this from a first hand experience because of my job at a sneaker
retail store. We recently had a Nike representative give us a mini training session on the Nike running
shoes and then we discussed what the customers in our store looked for most of the time and then gave
feedback on the Nike running shoes as well as some competitor brands.

Personal selling allows sales associates to create a relationship with the customer, though it may be brief.
From the time a customer walks in a store until they leave, it is the sales associate's job to try to establish
a relationship with that customer and figure out what he or she is looking to purchase. The sales force
acts as a bridge between the customers and the company. The company looks for feedback from the
sales associates about their customers, and the customers look to the sales associates to relay relevant
and useful information about the product (Armstrong and Kotler).

In my opinion, Nike does a good job at their personal selling because they are the only company I have
seen so far that has had represenatives travel to retail store locations to hold training sessions on their
products. Also, often times Nike places a small insert in the running shoe boxes that gives some
information on the particular product as well.

Sales promotions:

As far as sales promotions for Nike, they utilize marking down their prices and putting them on sale.
Regularly, the Nike Shox are priced no lower than $100.00. Another tactic they use is to have their regular
prices end in zero and then when they mark them down for a sale, the price will change to something like,
$89.99. This is definitely a type of consumer promotion. I would also catagorize this method as a cent-off
deal because the consumer is buying a product that has reduced the price right on the actual product
such as having a sales tag on the actual sneaker (Armstrong and Kotler). Regular consumers of Nike
Shox are aware of how expensive they usually are so when they see one on sale, I think they are more
likely to make an impulsive purchase just because of the reduced price, whether they really need the
sneaker or not. 

Public relations:
PR can be used for many purposes and one of the purposes that Nike has used PR for has been to
enhance and maintain a responsible corporate image. Nike has been accused in the past decade of
paying low wages and running sweat shops in their Asian factories to produce their products
(http://www.usatoday.com/news/opinion/editorials/2002-10-13-oplede_x.htm). They took this accusation
very seriously and have made it their duty to ensure that these conditions would not happen. They have a
written code of ethics called Inside the Lines and this is what all their employees must read, sign, and
abide by to ensure ethics are followed at all times. The also have a Nike Code of Conduct in which the
contractors who manufacture their products must abide by to ensure the rights of their employees are
respected and that they are given a safe and healthy working environment
(http://www.nikebiz.com/responsibility/cr_governance.html). Now the world can see that Nike is
monitoring its business outside of the country and trying its best to not be accused of unethical working
conditions ever again. 

Direct Marketing:

Nike as an entire company has recently launched a new way of direct marketing in the past four years or
so. They introduced a print catalog specifically geared to females that would be sent to them directly
through their mail. Female athletes expressed interest in this catalog and actually brought it to Nike's
attention and Nike took it from there. This catalog focuses on athletic footwear and clothing/apparel for
running, yoga, and fitness training. Now women who are loyal to the Nike product can have direct and
personal access to the products they want through their very own catalog delivered right to their home
(http://multichannelmerchant.com/news/marketing_nike_competing_mail/). For some, this offeres great
convenience. It appears that the catalog is going over very well and I would imagine so because with a
paper catalog, you can take it with you and shop at you leizure. I think nike will continue to get a good
response from this particular example of direct marketing.

Consumer behavior of the nike

Here’s a thought. If Nike decided to remove the swoosh from the outside and engrave it on the inside, would you
still buy a pair?

I owe this thought to a friend of mine, who called two days ago. He wanted my take on consumer insights about
shoes in the Indian market. Lets take Nike for an example. Quality is, of course the most important criterion. The
swoosh, in Nike, is extremely important and has a lot of emotions attached to it. But, here’s something more! A pair
of Nike with the swoosh on the outside is 10 times more likely to be purchased than a similar pair, offering equal
levels of comfort with the swoosh engraved on the inside. With more than 50 responses, I have listed below a couple
of points that became full fledged discussions (Thank you guys!)
 Q: If Nike decided to remove the swoosh from the outside and engrave it on the inside, would you still buy a pair?

Respondent 8: Hey! They charge me a lot and Im paying premium for the swoosh. It better be on the outside. 
Analysis – During the entire conversation, there was no mention of the product attribute at all. Has the visual
identity taken over core characteristics? Also, is the premium paid for the swoosh or for brand promise (which is
definitely beyond a coolness quotient). The brand Nike can be associated with world class quality. Now, this seems
to be taken for granted. Vanity sure is important. But, at the cost of what?

Respondent 15: This is similar to you paying your one year salary on a Louis Vuitton bag. Would you buy the
bag without LV logo? 
Analysis – Good point. But I still think Nike and LV are poles apart. I wear my Nike shoes to the gym every
morning because they are so comfortable. My size 3 feet dont hurt when I run with them. The main purpose is not
for other people to notice. Au contraire, I carry my Louis Vuitton for people to notice and talk about. Vanity is the
main purpose here. If I was to use it as a bag, I would carry it everywhere. My LV is reserved only for parties where
I want to show off.
Respondent 18: Comfort reduces my dissonance, but the swoosh is for people to see and relate. 
Analysis – For all the non-MBA-jargon-folks (respect!) the dissonance referred to here, is called post purchase
cognitive dissonance. This is the “have I spent too much?”, “Is it worth it?” syndrome that remains in the head after
purchase. Product attributes like comfort (“Of course they are worth it. They are so comfortable, it was a great buy”)
help reduce the dissonance. Personally, this response is my favorite. We have now come to the level of looking at
the core product attribute as a reason to feel good and not a reason to buy!

Respondent 34: I am buying Nike for the product, not for the swoosh.
Analysis – Very very few people are on this side. One of them replied, “As long as the shoe meets my exacting
standards, I dont care. I still know it is a pair of Nike.” This set hunt for brand experience and attributes. They go
beyond the face value and brand loyalists can be carved out of this lot.

What about you? If Nike decided to remove the swoosh from the outside and engrave it on the inside, would you
still buy a pair?

Consumer Database Analyst - Nike

Description
As our Consumer Database Marketing Analyst, you'll serve as the subject matter expert regarding consumer
data and develop standard reports that provide Business Users consumer specific statistics required to track
performance against objectives. You'll apply various data modeling techniques to mine the data warehouse
to identify trends that suggest new marketing opportunities. You'll serve as the functional expert around key
data sources such as transactional and demographic consumer behavior and educate stakeholders regarding
how best to utilize and take action against this information. You'll educate the regions on the global
analytical standards and best practices and continually communicate how to utilize the data and analyses to
drive actionable insights for the business. You'll audit and validate data after it has been loaded into the
data warehouse to ensure the database accurately reflects Nike's internal marketing warehouse. In addition,
you'll also have the opportunity to participate in primary research by developing surveys and
compiling/analyzing results on the back end.

Qualifications
Requirements for this position include:

 Masters in quantitative degree (Statistics, Decisions Sciences, Economics etc.) preferred

 Between 2-4 years' professional experience and minimum of 6 years' database analytics experience
required
 An additional 3 years' relevant professional experience is accepted in lieu of a Masters degree
 Demonstrated level of expertise with SAS preferred
 Experience in SPSS and writing SQL queries an added plus
 Analysis and data interpretation in support of understanding and identifying unique trends of
consumer behavior required
 Proven ability to sift through data, identify critical information, analyze, develop hypothesis and
make recommendations to broader audience required
 Strong presentation skills, and excellent written and verbal communication skills
 Prior experience with generating SAS code/logic to manipulate large complex data tables a plus
 Highly proficient with Excel
 Prior experience with developing surveys and analyzing results a plus

We're interested in learning more about you and appreciate you taking the time to apply online.

Nike, Inc. is an equal opportunity employer (EOE) that strives to create a diverse workforce and an inclusive
culture.