PREPARED BY:

T.Jayakumar

Sunil.s.jain

M.Thanigasalam.

“To bring inspiration and innovation to every athlete in the world”“If you have a body, you are an athlete”

Just Do It

Contents

• NIKE - just do it!!!

• History

• Key Facts

• Products

• Marketing strategy

• SWOT Analysis

• Solutions

NIKE-Just do it!!!

• Nike’s principal business activity is the design, development and

worldwide marketing of high quality footwear, apparel, equipment,

and accessory product.

• Distributed in over 160 countries around the world: (Asia, Australia,

Canada, Europe, Latin America, and the United States)

• Nike is the largest seller of athletic footwear and athletic apparel in

the world.

• Fiscal year ended May 2008: Revenues of $19,176 million.

• Employees: 30,000 worldwide.

650,000 in Nike contracted factories around the globe.

HISTORY

1962: Phillip Knight, a Stanford University business graduate and

former member of the track team, arranges to import athletic shoes

from Japan and sell them in the U.S.. Knight created Blue Ribbon

Sports as a cover name for his small-scale shoe-selling operations

1964: William Bowerman becomes a partner by matching Knight's

investment of $500.

1965: Hires a full time employee, and annual sales reach $2,000.

1971: Nike, capitalizing on the Greek goddess of victory. The first Nike

product sold with the new symbol is a soccer shoe.

1976: The popularity of jogging increases revenue to $14 million.

1978: The company changes its name to Nike.

• 1980: Nike goes public, offering 2 million shares of stock.

• 1988: The world famous slogan “ Just Do It” was coined which is

chosen as one of the top five ad slogans of 20th century.

• 2001: Nike opens its first Nike Goddess store, a unit targeting

women, in Newport Beach, CA.

• 2003: Nike purchases Converse Inc. for $ 305 million.

• 2008: Nike acquired sports apparel supplier Umbro, known as the

manufacturers of the England national football team's kit’s, in a deal

said to be worth £285 million (about US $600 million).

Key facts

• Headquarters : Beaverton.

• Sector : Consumer Goods

• Industry : Textile - Apparel Footwear & Accessories

• Other Brands : ColeHaan, Converse, Hurley,

Bauer Hockey, Starter Apparel

• Market Capital : 21.738 billion.

• Manufacturing plant: Asia, including Indonesia, China, Taiwan,

India, Thailand, Vietnam, Pakistan, Philippines,

and Malaysia.

• Ticker Symbol :NKE

PRODUCTS

• Nike produces a wide range of sports equipment.

– shoes,

– jerseys,

– shorts,

– Base layers, etc..

• The most recent additions to their line are the Nike 6.0, Nike NYX,

and Nike SB shoes designed for skateboarding.

• In 2008, Nike introduced the Air Jordan XX3, a high performance

basketball shoe designed with the environment in mind.

• Nike recently teamed up with Apple Inc. to produce the Nike+ product

which monitors a runner's performance via a radio device in the shoe

which links to the iPod nano

MARKETING STRATERGY

• Nike's marketing strategy is an important component of the company's

success.

• Nike is positioned as a premium-brand, selling well-designed and

expensive products.

• Nike lures customers with a marketing strategy centering around a

brand image which is attained by distinctive logo and the advertising

slogan: "Just do it".

• Nike promotes its products by sponsorship agreements with celebrity

athletes, professional teams and college athletic teams.

• Nike's marketing mix contains many elements besides promotion

activities like Advertising, and sponsorships.

• Advertising:

– In 1982, Nike aired its first national television ads.

– The Cannes Advertising Festival has named Nike its 'advertiser of

the year‘. The first and only company to receive that honor twice.

– Nike also has earned the Emmy Award for best commercial twice.

– In addition to garnering awards, Nike advertising has generated

its fair share of controversy:

• Beatles song.

• Minor Threat Ad

• Chinese Themed Ad

• Sponsorships:

• Nike pays top athletes in many different sports to use their

products and promote/advertise their technology and design.

• Nike's first professional athlete endorser was Romanian tennis

player Ilie Năstase, and the company's first track endorser was

distance running legend Steve Prefontaine.

• During the past 20 years especially, Nike has been one of the

major clothing/footwear sponsors for leading tennis players.

• Nike is also the official kit sponsor for the Indian cricket team for

5 years, from 2006 till end of 2010. Nike beat Adidas and Puma

 by bidding highest (US$43 Million total).

• Nike also sponsors some of the leading clubs in world 

football, such as the US National Team, Manchester United, 

Arsenal, FC Barcelona, Inter Milan, Nike will also sponsor 

Dundee United from summer 2009.

• Nike sponsors several of the world's top golf players,

including Tiger Woods, Trevor Immelman and Paul Casey.

• Nike uses web sites as a promotional tool to cover these events.

Nike also has several websites for individual sports, including

nikebasketball.com, nikefootball.com, and nikerunning.com.

SWOT Analysis

• STRENGTHS:• Strong brand recognition

• Internet sales

• Growing international presence

• Superior research and development department

• Strong financial returns

• Strong sense of culture in the working environment

• Great celebrity spokespersons

• Automatic replenishment system

• Successful experience being competitive

• Nike doesn’t own any factories

• Successful marketing campaigns

• WEAKNESSES:

• Lack of stores catering to the active females.

• Poor employment practices at their international

manufacturing sites giving a bad reputation.

• Heavy dependency on footwear sales.

• Issues with Footlocker.

• OPPORTUNITIES:

• Customer use of company’s products change from athletic

purpose to a fashion item

• Development of international trade (GAAT and NAFTA)

• Generation Y children (born between 1979 and 1994) will

reach 60 million

• General demand for clothing/footwear for leisure activities

continues to increase

• Growing e-commerce’s positive effect since one of company’s

competitive advantages is Internet sales

• Women demand for athletic footwear and clothing is

increasing significantly

• THREATS:

• Competitors which copy company's business model

(high value branded product manufactured at a low cost)

• Reebok's strong presence with 204 factory direct stores

• Adidas-Salomon AG, top European competitor

• The impact of foreign currency fluctuation and interest

rates, and political instability

• Labor and political unrest in the suppliers countries

• Cost orientated customers vs. company’s higher-end

market.

Athletic Shoe Market Share

Solutions

• How Nike’s growth can be attributed to its targeting of diverse market global segments?

• How did Nike penetrate the European soccer footwear market?

• What are the key driving forces behind Nike’s international competitiveness?

THANKS!!!

Just Do It