Nike

Marketing Audit

Yi Gong
Mercede Ogan
Josh Staten
Matt Wolford
 Company Description
The Idea: Phil Knight

The Partnership: Bill Bowerman

The Foundation: Blue Ribbon Sports

Birth of Nike: Jeff Johnson and Steve

Prefontaine
 Cont.
Nike Grows Exponentially

Product Line
- More than footwear

Expansion
- Cole Haan, Nike Bauer Hockey, Hurley
International, and Converse

The Internet: Its affect on growth

 Business Mission
“To bring Inspiration and innovation to every athlete in the
world”
“If you have a body, you are an athlete” – Bill Bowerman

• Commitment to integrity and high ethical standards

• Nike’s change in mission over last decade

Philip H. Knight
 Marketing Objective
• Global Dominance
• Brand Image
• Strong advertising
- Leave Nothing Ads
- Example
http://www.nike.com/usnikefootball/?sitesrc=uslanding
 Strengths
• Competitive Organization
• Lean Organization
– No factories
– No cash tie ups with building and
manufacturing workers
• Global Brand
 Weaknesses
• Income dependent on footwear market
• Retail sector is very price sensitive
 Opportunities
• Product development provides many
opportunities
– Fashion brand
• Develop accessory products
• Internationally develop
– Global brand recognition
 Threats
• Exposed to the international nature of
trade
• Very competitive market
• Price sensitive
 Product
• Product Research
– Design and functional
• “Tune Your Run”
– Working together with Apple
• “House of Hoops”
– Partnership with Foot Locker
• Acquired Umbro
• Mass customization
 Place
• 25,000 retailers in the U.S. and sold in 140
countries
• Online retailer
• Subsidiaries
– Converse
– Cole Haan
– Nike Golf
– Nike Bauer Hockey
– Hurley Int.
 Promotion
• Web marketing
– Updated interactive website
– Facebook profile
• Slogan: Just Do It
• Logo: Swoosh
• Professional Athletes/Celebrity
Endorsements
 Price
• High price for high quality
• Move away from low end market
• High tech, performance driven, &
exclusive products
 Financial projection
    Income Statement          

(In millions US % % % predict %

dollar) 2004 increase 2005 increase 2006 increase 2007 increase 2008

Revenue $12,253.1 12.0% $13,739.7 8.8% $14,954.9 9.1% $16,325.9 8.9% $17,795.2

Gross Profit $ 5,251.7 16.4% $ 6,115.4 7.7% $ 6,587.0 8.7% $ 7,160.5 8.5% $ 7,776.3

Net income $ 945.6 28.1% $ 1,211.6 14.9% $ 1,392.0 7.1% $ 1,491.5 7.1% $ 1,597.4

18,000.00

16,000.00

14,000.00

12,000.00

10,000.00
Revenue
8,000.00 Gross profit
Net income
6,000.00

4,000.00

2,000.00

0.00
2004 2005 2006 2007 2008
 Implementation, Evaluation, and control

Strength the 4 Ps on Nike’s future plan:

• Price—offer economical price to variable consumers around the world
• Placement—open up more stores and franchise to reach maximum
buyers, expand Nike’s contribution channels toward online marketing
and e-commerce.
• Promotion—maintain the visibility of consumers by spend extra
revenue for sponsorship, sport event and advertising. Having more
communicate with customers and receive feedback from them to help
create imagine about Nike care their customers.
• Product—come up new design ideas for variable consumers and
customize special sport product for different age, gender and cultural
background consumers. Nike.com allows people to design their
shoes.
 Mission
“To bring Inspiration and innovation to
every athlete in the world
* If you have a body, you are an athlete”

JUST DO IT