Nike Case study

presented by
Group # 7
1. M. Ibrar
2. Rameesha
3. Faiza
4. Asad
5. Farwa
6. Haider
7. Faiz
 INTRODUCTION
► It is engaged in designing and worldwide marketing and
selling of footwear, apparel, equipment and accessories

► Nike is a American Multinational corporation

► It was founded on May 30 ,1978 by Bill Bowerman and

Phil Knight.

► Nike in Greek means Goddess of Victory.

 CONT…

• Nike has become one of most recognizable

companies in the entire world.

• Nike is now the most popular brand in, not just

America, but through out the whole world.

• Nike offers all the athletic shoes, clothes, and

other accessories one would need to wear in their
certain sport.
 SLOGAN OF THE LOGO
►SLOGAN “JUST DO IT”
►The slogan was coined in 1988 at an ad agency meeting.
 HISTORY OF LOGO
• The Nike "Swoosh" taken from the Greek mythological
Goddess (Nike) as one of her wings. The ideology was
that the goddess Nike was actually a symbol of victory.
Hence conceptually Athlete Nike logo design meant
victory or winning.
• This design created in 1971 by Carolyn Davidson, a
graphic design student at Portland State University, She
met Phil Knight while he was teaching accounting
classes and she started doing some freelance work for
his company, Blue Ribbon Sports (BRS).
• Nike logo is also known as Nike Swoosh.
"To bring inspiration and innovation to every athlete in the
world“ If you have a body, you are an athlete.

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To equip every athlete with products that combine
performance, quality, and fashion.

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To lead in corporate citizenship through
proactive programs that reflect caring for the
world family of Nike, our teammates, our
consumers, and those who provide services to
Nike.

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At Nike, we desire to deliver superior products to customers and athletes
that are both safe and dependable. Our well trained employees and
experienced executives will ensure a competitive advantage for our
markets, growth for the company, and profits for our shareholders. We will
continue to utilize innovation and technology to provide our employees
with the best possible work environment while adapting to the many
changes in the global market.

1. Customers
2. Products or services
3. Markets
4. Technology.
5. Concern for survival, growth, & profitability
6. Philosophy
7. Self-concept
8. Concern for public image
9. Concern for employees
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• To continue being the world leader in sports equipment
and apparel.
• To complete brand reorganization within market regions
that will lower cost of sales.
• To create sportswear that would incorporate recycled
material.
• To develop new alliances with companies who are well
respected regarding social responsibility.
• To invest in additional marketing of existing products
that will appeal to new demographic groups.
• To promote products as fashion wear, not just
sportswear.

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 Philip H. Knight
Chairman of
the Board

Mark G. Parker
CEO and
President

Donald W. Blair Ronald D. McCray Trevor Edwards

David J. Ayre Bernard F. Pliska John Slusher
Gary M. Destefano Vice
Vice President
Vice President
Vice President Eric D. Sprunk
Vice President Vice President President Global
President of Global Chief Vice President
and Global Human Corporate Global
Operationsitle Administrative Brand & Category Global Footwear
CFO Resoursces Controller Sports Marketing
officer Management

Hans van Alebeek Charles D.

Lewis L. Bird III
Vice President, Denson
President
Global operations & President Nike
Affiliates
Technology Brand

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 IT
Department

Department
Admin
of
Management Department

Security HR
Department Department

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 Competitors
• Adidas is about to launch a new innovative campaign
praising the Team Spirit in sports

• "It takes 5IVE" - celebrating the concept of team over

individual or "we over me“

• Nike has always been big on marketing the individual as

the passport to selling basketball shoes.
 Market Share’s
• Nike owns over 80% of the U.S.'s $2.6 Billion basketball
market and its share is also growing year over year

• Adidas’ share of the market is only about 14%

• Adidas has a growing market share, but it remains to be

seen whether it will grow at the cost of Nike, or other lesser
brands.
 NIKEiD
• NIKEiD is a sub brand which allows customers to
design and personalize their Nike footwear, and is
available online at NIKEiD.com.

• The NIKEID brand also has boutique stores in New

York City, London, Paris, Osaka, and Berlin. It has
been reported that the NIKEID business has more than
tripled since 2004. Presently, there are over 3,000,000
unique visitors at NIKEiD.com per month.
 Adidas Marketing

• One of Adidas biggest Marketing schemes was to merge

with Reebok to compete with the powerhouse Nike.

• The NHL will also add the Reebok logo to its uniforms.

• Reebok in 2001 signed a 10-year deal to outfit the

NBA, WNBA and NBA Development League.

• As of the 2008 football season, Reebok still has their

logo on all NFL jerseys.
 Cont…
• In an industry known for motivational advertising,
Adidas' current theme is "Impossible is nothing."
• It also dominates soccer, having endorsement deals with
superstars such as David Beckham and sponsorship of
top events including the FIFA World Cup.
Under Armour Marketing
• According to their Annual Report, their marketing and
promotion efforts begin with a strategy of selling their
products to high performing athletes and teams on the
collegiate and professional levels.
• They implement this strategy through collegiate sponsorships,
individual athlete agreements, and by selling their products
directly to team equipment managers and to individual
athletes.
• As a result, their uniforms, batting gloves, socks and other
items of apparel are seen on the field, giving their products
exposure to various consumer audiences, through television,
magazines and live at sporting events.
• This exposure to consumers helps them establish on-field
authenticity as consumers can see their products being worn
by high-performing athletes.
Cont…
• They are the official uniform supplier of the University of
Maryland and Texas Tech Football Team
• They supply uniforms, sideline apparel and fan gear for the
following
• Auburn University
• South Carolina University
• University of Utah
• University of Delaware
• University of Hawaii
• University of South Florida
 Cont…
• In 2008 hey launched the New Prototype cross-trainer
shoe.

• Analysts hailed the launch as successful, and the New

Prototype outperformed Nike's new cross-trainer line,
which was backed with a hefty campaign of its own
(with a tagline "My better is better than your better,"
which many observers took for trash talk).
• Strength
• Weakness
• Opportunity
• Threats
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 STRENGHT
• Strong in research & development innovative product
development.
• Strong marketing campaign sponsors top athletes.
• Marketing practices enables them to expand the athletic
market.
• Successful advertising campaigns.
• Customer loyalty
• Strong financial position
• Strong international presence

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• Products are highly priced
• Revenues are still mostly dependent upon footwear
sales
• History for violations of minimum wages, child
labor and over times in its manufacturing countries.
• Little control over quality of products from 3rd
party contractors
• Anti-globalization groups
• Price sensitivity of products

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• Creating sportswear that would incorporate recycled
materials from their own production lines and other places.
• Promotion as a fashionable wear, not just sportswear.
• Growing segment of the female athletes.
• International expansion into emerging markets – e.g.. India
• Additional marketing of existing products to appeal to new
demographic groups.
• Develop new alliances with companies that are respected
regarding social responsibility.
• Brand reorganization by market regions

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►High competitive industry
►Failure to respond to market trends in timely manner could
greatly affect financial position.
►Production of counterfeit goods, and generic products.
►Negative public perception created by environmental, child
labor, contracted manufacturing issues, and sponsored athletes.
►International currency changes could decrease profits.
►Federal Trade regulations in dealing with foreign manufactures.

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PEST ANALYSIS
►
►
►
►
 Political
• In the estimation of some observers, Nike has
benefited considerably from the growth-orientated
policies of the US government, which has
maintained low interest rates, currency exchange
stability, and internationally competitive tax
arrangements (Whitehead, 2012).
• As will be discussed further below, political
pressures have featured more negatively in
concerns over Nike’s employment practices
(Whitehead, 2012).
 Economic
• In common with all consumer-facing
organizations, Nike faced challenging trading conditions
since the financial crises of 2008-9 and contingent
economic slowdown; this has applied in both Western
markets (such as the US) and the Asia-Pacific region
(Whitehead, 2012).

• Conversely, Nike has used its established brand equity to

take advantage of growing consumer demand in
emerging economies (Whitehead, 2012).
 Social/Societal
• In the macro-economic sense, Nike (and its competitors
in the sportswear sector) are the beneficiaries of a
growing societal preoccupation with health and fitness
(Davis, 1992).
• As Elliot and Percy (2007, p.52) indicate, ‘Brands can
also be used to counter some of the threats to the self
posed by post-modernity, such as fragmentation, loss of
meaning and loss of individuality’.
• However, Nike also faces continuing challenges arising
from its CSR (corporate social responsibility) position,
chiefly related to the nature of its global value chain
(Foster and Harney, 2005).
 Technology

• In common with most consumer-facing

corporations, Nike has been able to use enhanced
levels of digital metrics to analyze customer
demand and revise its segmentation accordingly
(Myerson, 2007).

• In the optimum model, transaction and supply chain

event management are linked via SOAP (Simple
Object Access Protocol) and MPPS (Massively
Parallel Processor System) systems (Myerson
2007).
Cont…
• Meanwhile consumers will be able to make contact-
less payments via mobile phone platforms
(Myerson, 2007).

• These processes may however accelerate the

speeding-up of the hollowing-out of the workforce,
reducing the amount of employment on offer
(Davies, 2006).
Where is Nike’s
Target Now?
 Nike’s Target
• To move its large and global organization into organizational
learning and sustainable practices.

• Their goal is to spread the understanding of sustainability

throughout the company and demonstrate its value to the
business and its customers.

• In 21st century, you must successfully integrate corporate

responsibility into the heart of the business.
 Environmental Efforts
►Nike strives to minimize the environmental impact
of each product throughout its product life cycle
from design to manufacturing, post-consumer use
and ultimate disposal.
►NEAT programs now recycle shoe manufacturing
waste.
►Nike shoes produces solid waste. The largest of
these by weight is cured rubber used in shoe soling.
►Nike employees engineered a creative way to keep
it out of landfills and convert it into more outsoles
called REGRIND, is available to the public.
Human Resource and Management

• Designed Employee Networks to separate them

from their competition

• Employee Networks promote diversity within the

organization
 Human Resource and
Management
► Intended role of network:
► Foster professional development
► Enhance work performance
► Identify mentors
► Assist in recruiting diverse professionals
► Develop community interaction
► Encourage increased teamwork
 Nike’s Vision
►For every team to be high-performing, diverse, and
inclusive
►To achieve this vision, the strategy is to:
►Cultivate diversity and inclusion to develop world-class,
high-performing teams
►Ignite change and inspire critical conversations around
diversity, inclusion and innovation
►Create venues and environments for open dialogue,
diverse opinions and a multitude of perspectives
 Open a new Nike
Super store in each
of India’s largest
cities: Mumbai,
Delhi, and Bangalore
at $5 million per
store.

Sign an endorsement bat

sponsorship deal with Invest $500 million in India
Sachin Tendulkar, India’s that will increase revenue by
biggest cricket star to a Invest $235 million in
multi-year contract. The 4.5% through product R&D and
terms include apparel, development, market manufacturing contracts
footwear, and his own over the next 3 years.
name brand. The deal is development, and market
worth $30 million over 3 penetration in the next 3 years.
years.

Invest $220 million

on marketing and
advertisement over
the next 3 years.
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Key Issues Nike Needs to Face
►Nike's products are viewed as higher quality and
command higher prices than its competitors, sometimes
though consumers do not agree to this line of thinking.
►Its high quality/high price lines, Nike is placing emphasis
on the latest technology and applying innovation towards
the development of new products, particularly the Nike
Alpha Project which is a new line of athletic shoes. In the
past, Nike has overlooked the mid to lower price point
products, which could be a possible weakness too.
 Conclusion
• Formulating a strategic plan for the corporations’ future
is key in determining the all around goals of the
company.

• Nike, with there marketing, innovation, technological

advancements, and equitable manufacturing
departments, has created an al around dominant
strategic plan

• Nike has built there competitive advantage to the

highest form possible.