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Nike Brand Extension
2006
Nike+
2014
Women’s Training
1972
Footwear
1979
ApparelBrand Extension Over the Years
Footwear62%
Apparel31%
Equipment6%
Global Brand Division0%
NikeRevenue
Distribution
Footwear ApparelEquipment Global Brand Division
Rank: 1st Global Value Share:
2.4%
Industry Analysis: Footwear & ApparelWorld’s Market size:
US$ 268 bnGlobal growth rate(2009-14):
8.5%
Nike Market size:
US$ 25Global growth rate(2009-14):
12.4%
Product
Running and Sport shoes Comfortable shoes Safe and Stylish
What Need does it satisfy ?
What Features does it have to meet these Needs?
Light weight & AgileZoom technology
Support & Cushioning Compressed Air Technology
How is it differentiated versus your competitors?
Lightest and Responsive Best compressed Air technology
Used by Best Athletes across different Sports
How is it Branded ?
First a Player is Branded and then a Brand is created out of that players name eg: Air Jordan
Place Where do buyers look for your product or service?
PriceIs the customer price sensitive?
No, given the functional value one is deriving out of it
What discounts are offered to trade customers, or to other specific segments of your market?
End of the season sales to the end customers
Are there established price points for products in this area?
Yes, both shoes and Apparel segments have established price points
How will your price compare with your competitors?
Price Leader - Charge a premium for Brand and superior technology
PremiumPrice
Promotion
Promotion
Bill Boards
Promotion
You Tube Channel
Magazine Ad
Target SegmentDemographic:Age: 8-60Gender: Male/FemaleOccupation: Any
Target segment include anyone who is into running or any kind of sports. Also include people looking for sports apparel
Consideration Set of Target Segment
Nike Inc and Adidas Group lead the market, with a combined share of 27% in 2014, up from 24% in 2009. Typically, these two producers hold key global sponsorship deals, and brand equity is supported by massive marketing spend.
Competitor’s Product comparison
Edge Air cushion Technology
Cooling technology - SHOE
Point of Difference
Shopping Mall
Competitor’s Place comparison
Point of Parity
Both have factory outlets where shoes can be bought at lower than the market rate and there is an year round sale !
Multi-Brand & Single Brand Outlet
Nike Adidas
Competitor’s Place comparisonDigital Channel
Nike Adidas Point of Parity
Competitor’s Price comparison
Basket Ball Shoes
Nike
Adidas
Nike is charging premium on shoes over its main competitors
This strategy is consistent with all product range from apparel to gadgets
Point of Difference
Competitor’s Price comparison: Brand Extension
Women Black Tee
Nike is charging premium on a lower range than in the shoe category over its main competitors
Point of Difference
Nike
Adidas
Competitor’s Promotion comparison
Bill Boards
Point of Parity
Nike
Adidas
Competitor’s Promotion comparison
Nike
Adidas
Point of Parity
Sport Sponsorship
Competitor’s Promotion comparison
Point of Parity
Nike
Adidas
Multiple youtube channels
Perceptual Map
PriceLow High
Spor
ts u
tility
Low
High Sport Tees
Nike
Reebok
Adidas
Puma
Nike Brand Extension PositioningPerformance oriented, safe and best in quality Sportswear for Anyone playing sports, running or fitness training
Special innovative solutions for promoting running, exercising and playing sports – Remain Fit Safely
Nike Brand Extension Positioning - Analysis
Earlier Positioning: Safest and fastest shoes for enhancing sportsperson performanceTarget Group: Anyone interested in playing and running
Extension Positioning: Performance oriented, safe and best in quality Sportswear for Anyone playing sports, running or fitness training.Target Group: New customer base have been added from sportsperson to anyone who aspire sports outfit
Perfect FitObservation: In the above figure the Brand Extension of Nike footwear - Both the Sports Appareland Total sports Apparel has been constantly increasing YOY from 2009-2014
Conclusion: Brand extension positioning has been apt and successful as they catered theLatent demand of target segment
Vasu Pal Age: 25 years Previous Work Experience: Deloitte, Accenture Specialization: - Finance, Systems Summer Internship: Standard Chartered
Brand Management Project
THANK YOU