CI 3

able of Contents
Identification of Problem

Company Description

Industry Analysis/Competition

Market Plan & Sales Strategy

Operations/Management

Financials

Long - term Development

Identification of
Problem
Problem

Excess Inventory

Decreasing Basketballs Popu

What Nike Has Been Trying To Do

Inventory at discounts:
Outlets
Factory Stores
Online Websites

Revenue
To minimize its losses in 2017
 Company
Description
Subsidiary
Company Description

Sept. 8, 1969

Athletic apparel manufacturer

Estimated Value : $19 billion

Market cap : $83.6 million

Expectations (By 2020)

Company Location

Beaverton,
Oregon
Company Description

Revenue $5.7 billion $11 billion

Overall sales : $50 billion

E-commerce sales $7 billion

Mission Statement

To bring inspiration and

innovation to every athlete* in the
world * If you have a body, you are an athlete.
Nikes Financial Status

6% to $8.2 billion (2017)

Up 8% on a currency neutral basis

Net income increased 7% to $842 million

Effective Date of Business

Fiscal 2016 6 % to $32.4 billion

Worldwide futures orders 8%

Inventories as of May, 2016 12%

 Industrial
Analysis/Competition
Industrial Analysis/Competition

Footwear market projected to reach $371.8 billion

by 2020

Casual footwear 6.1%

Average household spending : ~$21 (USD)

Increased rivalry between major manufacturers

Industrial Analysis/Competition
Global Athletic Footwear Market
(2015)

Nike: 22.9%
Adidas 9.7%
New Balance 4.4%
Puma 2.1%
Under Amour 0.8%
Adidas
Strength Weakness
Expensive
Collection
Partnershi Production - Asia
ps

Complaints
Diverse Competition
product
lines
Under Armour
Strength Weakness
High Price
Partnershi
ps Limit Product
line

Female
Speaker Low
Market
Share
New Balance
Strength Weakness
Expensive
Recycle

Environme Production - Asia

nt friendly

Complaints
Wide foot
Competition
Puma
Strength Weakness
Financial
Strength
Rich
Innovative Developme Poor Durability
nt team

Limited Market
Share
SWOT Analysis
S (strength): W (weakness):

Competitive organization Diverse range of sports products heavily dependent

High brand loyalty on share of the footwear market
Sponsors top athletes & gained valuable coverage Retail sector very sensitive, squeezes the margin
due to lower price of retailers

O (opportunity): T (threats):

Product development builds upon its strong global Currency change sets unstable costs and margins
brand recognition Market for sports shoes and garments is competitive
Ex. sportswear, sunglasses and jewellery Competitive retail sector.
Can be developed internationally Consumers seeking for better deal
Manufacture opportunities closer to US
Increase in Mexico where cost of manufacturing &
transportation cost is low
Market Plan & Sales
Strategy
NIKE GO & NIKE KINESIS
NIKE GO

Location-based augmented reality game

Solve Excess Inventory

NIKE GO Character

Nikki
Kennie

Nik
NIKE GO Mechanism

Nikki - Coupons (Sales, giveaway)

Kennie - Footwear (leftovers from inventory)

Tap to
Catch
Nik - Limited Footwear (Jordan Line Shoes)

*Some are blank(contain no prize)*

NIKE GO: How it Works

Spread Gathe Get

r
Pop Up Store (World wide)

Worldwide

Exposure from Pokmon Go

Pop up Store
Market Plan & Sales Strategy: NIKE GO

Internal purchase Convenience Stores

items Ex) 7 Eleven,

Walmart,
points
Speedway

Google Map
Advertisements within
Navigation Chain Restaurants
Minor ones so
Ex) Subway,
users arent
McDonald's, Burger
distracted by it
King
Marketing Plan & Sales Strategy : NIKE GO

Advertisements
Offline & Online Stores Social Media
Facebook, Instagram, Snapchat, etc...
Operation &
Management
NIKE KINESIS: What is it

Website/Network based app

Syncs available products

Prevents situations unable to find desired product

NIKE KINESIS: How it works
Used as online retailer (ex. Amazon, eBay)

Continuously used

Early access to Nike releases

Main Priority

Promote un-selling merchandise/excess inventory

NIKE KINESIS: Why Good

Easily accessible

Able to look at inventory at one glance

Cheap options provided

Nike Next : What is it?
A youth basketball competition held twice a year
Once each in summer and winter.
Athletes must be between 15-19 years of age

Tournament-type competition
A tournament held in the US
Aimed towards recruiting and exposing younger
players
NIKE Next: How does it work?

State Competition Regional League Finals

Nike Next Tournament Structure

Northwest

West

Mid-West

South-West

North East

South East

Mid-Atlantic

Hawaii &
Alaska
Market Plan & Sales Strategy: Nike Next

Attracts young basketball players nationally

Provides future opportunities

Nike sponsorship for winning team

Scholarship for college

Higher chance to get scouted

Nike Next: Key Participants

Key participants:
Special professional athlete
appearances who are contracted
with Nike
Nike Next : Market Plan & Sales Strategy

Sales Plans

Diverse channels of commercial

TV, radio, newspaper, Super Bowl, banners, flyers, online store
promotions, etc.
Tickets to matches
Bought online, through magazines/newspapers

 Nike Next: Mission Statement

Nike Next strives to inspire and create for the next generation
of athletes through exposure and opportunities .
Finance
Business Profit
Compensation & Incentives

Nike Next
Provided with temporary EMT to
prevent potential damage
If any prize contains defection
instant returning merchandise
Nike customer service available
24/7
Compensation & Incentives

Nike KINESIS
Backup program: restore data in
the event of data loss
prevent the possibility of Nike
Kinesis server going down
Long-term Development

Nike Go
Nike technical forces : In stand
24/7 to fix problems
Frequent update of application
Prevent GPS hacking

NO Compensating for the loss of

redeem code/id/password
Long-term Development

Nike Go
Continuously sell remaining
inventory
When the app has passed its
trend:
change the program to a
business server
Long-term Development
Nike Kinesis

Inventory in real time for efficiency

Connection with customer & build positive

relation
Long-term Development

Nike Next
Goals
Create a Nike family: produce NBA
and professional-players whove
gone through Nike NEXT
Successfully promote basketball &
Nike productions
Supporting Documents
http://www.valueline.com/Stocks/Highlights/Under_Armour__A_Short_SWOT_Analysis.aspx#.WIm3YbFh2L8
https://www.statista.com/statistics/241683/nikes-sales-worldwide-since-2004/
http://www.strategyr.com/MarketResearch/Footwear_Market_Trends.asp
http://www.strategyr.com/MarketResearch/Sports_and_Fitness_Clothing_Market_Trends.asp
http://www.marketingteacher.com/nike-swot/
http://visual.ly/history-athletic-shoe
http://finance.yahoo.com/news/swot-analysis-balancing-under-armour-210030961.html
http://www.freeswotanalysis.com/apparel-industry-swot/63-swot-analysis-of-under-armour.html
http://www.usatoday.com/story/money/2015/11/08/nikes-11-billion-dollar-plan-to-create-a-womens-fitness-empire/74740318/
http://news.nike.com/news/nike-inc-reports-fiscal-2016-fourth-quarter-and-full-year-results
http://www.gurufocus.com/news/325905/nike-analysis-of-strengths-weaknesses-opportunities-threats
http://www.usatoday.com/story/money/business/2015/10/14/how-nike-plans-to-hit-50-billion-in-revenue-by-2020/73940104/
https://www.trefis.com/stock/nke/model/trefis?easyAccessToken=PROVIDER_649d6ec3ff8c75f73b6dc24ad5580e60ac2b2ff3#
http://marketrealist.com/2014/12/overview-nikes-supply-chain-manufacturing-strategies/