...Nike Analysis Financial Management Spring 2016 Introduction Nike Inc. is one of the world’s largest marketer of athletic footwear and apparel, holding more than 37 percent of the market share. Nike is a multinational company having factories and retail stores in over 160 countries. However, Nike was not an overnight success as it took years to build the brand and create profitability. The idea of Nike came about in 1962 by Phillip Knight, a Stanford University business graduate. Traveling in Japan after finishing business school, Phillip Knight got in touch with a Japanese firm that made athletic shoes, the Onitsuka Tiger Co., and arranged to import some of its products to the United States on a small scale. This was until 1963, Knight took his shoe delivery to a track meet which sprung a partnership between Knight and William Bowerman, his former track coach. Knight and Bowerman, continued and worked hard on creating the best running shoes that gave the best results. Through development, Bowerman and Knight were able to sell these shoes and gain immense profitability. The business was quickly taking off which in turn, led to Bowerman and Knight hiring employees, who would then sell shoes out their cars. In 1967, the first retail space was purchased and with vast sales, it resulted in expanding the business to other parts of the United States. In 1970 The famous Nike swoosh which adds ultimate value and eye appeal to their shoes was designed by Carolyn Davidson...
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...The ethos is effective because the brand Nike has been around since 1962 and is recognized worldwide to the public. The company is highly respected in many parts of the athletic industry. The brand also has a long list of spokespeople and commercials that built credibility to the brands name. By choosing an average overweight boy, Nike is using someone is can be relatable to mass audience. The audience can feel as though that they can trust the boy using Nike because the boy is just like the audience. Although it is a critical aspect for Nike to have credibility when selling their products such as using celebrity endorsers, it is also important for the consumer to feel that they have logically made a wise investment in purchasing Nike...
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...Technology and Management in Singapore. Nike Inc. was founded in 1962 by Bill Bower man and Philip H. Knight as a partnership under the name, Blue Ribbon Sports. Since Germany conquered the domestic market in America, Nike came with low-cost and high quality products for the American people. Today, Nike manufactures and distributes athletic shoes in the global market and 40% of its sales come from athletic apparel, sports equipment,and subsidiary ventures and they have traditional as well as nontraditional distribution channels in more than 100countries globally. Nike has attained a premier position in the market but in 1998, the company has to face the issue of exploiting overseas workers and the altering consumer needs negatively pretentious the sales of Nike. In this report, I have discussed the case history of Nike that majorly covers the child labor problem and the problem of change in consumer’s preferences after which I have done the SWOT analysis and have come up with strategic objectives, market driven strategy Objectives. Furthermore, the marketing strategy is discussed that covers the segmentation strategy, targeting, positioning and channel distribution of Nike and the product, price and promotional strategy it must approve. In the end, I have given some recommendations to Nike’s management to force it towards success. Contents INTRODUCTION: The company Nike has establish its brand with lot of efforts today almost all knows about Nike it is a world famous brand with a...
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...1.5 Dropbox –Nike Marketing Analysis MKTG 530 Tori Kern Indiana Wesleyan University 1.5 Dropbox – Nike Marketing Analysis Nike Incorporated is one of the world’s leading innovators in athletic footwear, apparel, equipment and accessories (Nike.com, 2014). Nike will design, develop and market all of the above as well as marketing of apparel with licensed professional and college team logos ("IWU Jackson Library Databases," n.d.). Nike can and will clothe and shoe one’s entire family. Nike Incorporated began in 1968 and is now headquartered out of Beaverton, Oregon. Nike Inc. wholly owns affiliates such as Converse Incorporated, Hurley International, LLC and Nike Golf (Nike, Inc., n.d.). Converse is considered and reported as a separate segment while Hurley and Nike Golf are part of the financial reports for the Nike trademark. There is also the Jordan Brand. The Jordan Brand began in 1997and offers performance and lifestyle products. The Jordan Brand offers premium brand footwear, apparel and accessories inspired by the legend himself, Michael Jordan. The Nike Company has roughly 48,000 employees worldwide and operates in more than 170 countries (Global Data, December 2013). From when Nike began to the current status there are opportunities for Nike to improve on and to achieve goals. There will always be threats against the Nike Company that will try to distract or keep them from achieving goals. For a marketing standpoint it is important to identify those threats...
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...Nike Inc. Strategic Analysis ----Eric Overview Nike, Inc. is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area, and is one of only two Fortune 500 companies headquartered in Oregon. It is one of the world's largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. The brand alone is valued at $10.7 billion, making it the most valuable brand among sports businesses. The company was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman and Phil Knight, and officially became Nike, Inc. on May 30, 1971. The company takes its name from Nike (Greek Νίκη), the Greek goddess of victory. Nike markets its products under its own brand, as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding, and subsidiaries including Hurley International and Converse. Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008, and previously owned Cole Haan and Umbro. In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name. Nike sponsors many high-profile...
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...Nike.inc SWOT analysis Strengths: y Nike is a globally recognized for being the number one sportswear brand in the World. Nike being a competitive organization has a healthy aver sion towards its competitors i.e. during Atlanta Olympics, Reebok expensed on sponsoring the games; Nike however sponsored the top athletes and due to this step, it gained valuable coverage. Nike has no factories; rather it uses contract factories to get the work done which makes it quite a lean organization. It has contracts with above 700 shops globally in about 45 different countries. Nike is quite strong regarding its research and development; quite evident regarding its evolving and innovative product range. They manufacture high quality at the lowest possible price, if prices rise due to price hike then the production process is made cheaper by changing the place of produ ction. It has a strong sense of marketing campaign by sponsoring top athletes. It uses lunarlite foam and flywire materials in order to make the manufactured shoes lighter and more controllable. Nike, Inc is listed in NYSE and positioned as a US headquartered worldwide sportswear trader and supplier that: Contracts with about 700 shops worldwide, runs offices in 45 countries, and manages factories in China, Indonesia, Taiwan, Thailand, India, Vietnam, Philippines, Pakistan, and Malaysia. Belongs to Fortune 500 companies which 2007 total re venue exceeded 16 b. USD Employs more than 30.000 people worldwide; Owns strong marketing...
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...Nike: The athletic footwear industry History Nike started out just as plan developed in order to satisfy course work at Stanford University. Mr. Phil Knight a graduate student at Stanford University and a long-distance runner decided that he would make low cost running shoes in Japan and then sell them in the US. Knight solicited the assistance of a past coach Bill Bower man to assist him in his business venture and in 1964 they started Blue Ribbon Sports. Knight called his first shoe Tiger and began distribution at track meets. Blue Ribbon in 1971 earned it's "swoosh" and Knight introduced the first Nike brand line. In 1978 the Blue Ribbon became Nike and each year their profits grew steadily. Due to Nikes concentration in casual shoes in the 1980's, they missed the trend to aerobic shoes and fell behind allowing Reebok to control the market. Due to poor management in the years following and proceeding Reebok's take over things fell apart. Phil Knight repositioned and reestablished Nike following the bumpy years in the 80's. In 1988 Nike purchased Cole Haan for $64 million which allowed them to increase casual footwear sales by 16%, they also purchased the accessories company in 1990. Nike even expanded by opening their own retail store "Nike Town" in 1990. Nike distributes to 123 retail stores in the US and also in 52 retail stores in countries such as, the UK, Japan, France, Italy, Spain, Germany, and Canada. Ribbon Sports officially...
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...chain for consumers is important when promoting products to different market segments of consumers who use the same products in different ways. The consumer who is using the product for athletic activity will be focused on attributes of the product that enhance or improve performance. On the other hand, the consumer who is using the product for casual wear will be focused on the color, style, and overall look of the product. With that being said, the needs of these consumers are different. A marketer has to promote the various needs and benefits of the same product in such a way that different consumers will find the same product attractive. Recently, Nike has been trying to lower its environmental impact by reducing waste and use toxic materials. In your opinion, what are Nike’s ethical responsibilities in this situation? Nike has an ethical...
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...statement of Nike is “For serious athletes, Nike gives confidence that provides the perfect shoe for every sport”. In today’s competitive environment, Nike, one of the global leaders in sporting goods industry, has established a strong position for enhancing athletic life style. It’s the number one sports manufacturer in the world design by Nolan Breitbarth in the 1970s with Phil knight founder of Nike Inc. It is the leading sporting goods Company in the United States and hundred and ten countries. However, it has become the passion for everyone to use its brand products that create the Nike Just Do It feeling for the competition. The consumer’s perception of brand influences their buying decision in sports industry, so Nike always has been able to position to customer’s expectation and athletic fantasy that is endorsed by real athletes. Its Products offer a wide range of choices for the individuals; from sports equipment, athletic shoes, to clothes. But this paper focuses on Nike athletic shoes- how it has created a distinct impression in consumers’ mind and differentiated its products from its competitors. Promotionally, it has continuously tried to target the world’s youth population through basketball most popular game around the world. Nike partnered with Michael Jordan to have his name Jordan shoes for basketball and designed Jordan I, Jordan II and followed by many more. Nike's marketing strategy is accepted to be an important component of the company's success. Nike is positioned...
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...SEPTEMBER 6, 2002 DEBORA L. SPAR Hitting the Wall: Nike and International Labor Practices Moore: Twelve year olds working in [Indonesian] factories? That’s O.K. with you? Knight: They’re not 12-year-olds working in factories... the minimum age is 14. Moore: How about 14 then? Does that bother you? Knight: No. — Phil Knight, Nike CEO, talking to Director Michael Moore in a scene from documentary film The Big One, 1997. Nike is raising the minimum age of footwear factory workers to 18… Nike has zero tolerance for underage workers. 1 — Phil Knight, 1998 In 1997, Nguyen Thi Thu Phuong died while making sneakers. As she was trimming synthetic soles in a Nike contracting factory, a co-worker’s machine broke, spraying metal parts across the factory floor and into Phuong’s heart. The 23 year-old Vietnamese woman died instantly.2 Although it may have been the most dramatic, Phuong’s death was hardly the first misfortune to hit Nike’s far-flung manufacturing empire. Indeed, in the 1980s and 1990s, the corporation had been plagued by a series of labor incidents and public relations nightmares: underage workers in Indonesian plants, allegations of coerced overtime in China, dangerous working conditions in Vietnam. For a while, the stories had been largely confined to labor circles and activist publications. By the time of Phuong’s death, however, labor conditions at Nike had hit the mainstream. Stories of reported abuse at Nike plants had been carried in publications such as Time...
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...Team Project – Part 2 Team 5 – Hawkeye Marketing Stephanie Jensen Moyin Li Joseph Snyder Yuqi Sun Wenzhe Zhang Introduction to Marketing University of Iowa Tippie College of Business 03 April, 2016 Nike Segments Consumers by Athletes and Non-Athletes In a time when most things are no longer in simple black and white, Nike remains binary by segmenting its consumers into two distinct, opposite categories: athletes and non-athletes. While these segments are particularly broad, there’s a reason for it: it would be impractical to target the two groups in the same way. To successfully reach the company’s target markets, Nike employs differentiated marketing strategies. Athletes are mainly targeted with one of Nike’s major marketing strategies: the “hero athlete” (Kalb). The company pairs up with prominent athletes to endorse their brand. Athletes will then wish to be affiliated with these sports figures, so they will go out and buy Nike footwear to accomplish this. Contrastingly, in order to successfully target the non-athletes, Nike employs ad campaigns to inspire and motivate them to continue working hard. Around the London Olympics in 2012, Nike launched a new campaign with ordinary people enjoying themselves in their respective niches. The campaign was titled “Find Your Greatness,” and it included slogans such as, “Greatness doesn’t need a stadium.” This appealed to everyday citizens, because if someone else just like them can enjoy doing something that makes them...
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...Strengths Nike has a strong global brand which everyone will know by its logo. The logo itself needs to be presented without the name and everyone will know what it is, that is how powerful the brand is. Some companies require their names to be present but in this case that is not true. This is garnered a long term customer loyalty base where the products are synonymous with high quality clothing and fitness trainers. The power of the brand is also evident in the fact that Nike has well known athletes and other celebrities which will put further backing to the brand if it is deemed to be “cool” to wear. Athletes like LeBron James, Roger Federer and others such as Andrew Luck where each of these people represent a different sport from basketball to tennis to American football respectively. They promote the company by wearing Nike branded clothes from head to toe to more recently wrist in the form of the Nike FuelBand. Nike FuelBand The company is a clothing brand and there is little to innovate in. However, Nike has managed to find ways to innovate their products and to provide a range for various different price points to cater for different demographics. This shows that the company is versatile in its product offering, whilst also remaining relevant as the industry leader. The new Flyknit running shoes, the FuelBand wristband and the Dri-Fit clothing technology are all innovative and are applicable to different products. The Flyknit trainers are very unique where they allow...
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...comparing the strategies of two companies from the same industry. The strategies of Nike and Adidas have been compared from the textile industry. Nike and Adidas both specialize in footwear, apparel and accessories and their competition is intense as Nike is the market leader and Adidas is the market challenger. The topics in this assignment cover critical incidents of both Nike and Adidas that occurred in the past and the comparison between both their strategies as well their future plans. This assignment shows us the influence the strategy has on the success or failure of companies and how companies craft sustainable strategies that help them to retain their position in the market. Table of Contents Page 1.0 Introduction 1 2.0 Literature review 1 3.0 Backgrounds of Nike and Adidas 2 3.1 Company overview of Nike 2 3.2 Company overview of Adidas 2 4.0 Critical Incidents that occurred in the past 3 4.1 Critical incidents that affected Nike 3 4.2 Critical incidents that affected Adidas 5 5.0 Comparison of the strategies of the companies 8 5.1 Strategies of Nike 8 5.2 Strategies of Adidas 9 5.3 Comparison of the strategies of Nike and Adidas 11 6.0 Future plans of Nike and Adidas 13 7.0 Conclusion 14 8...
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...Nike is most marketable for their motto “Just Do It”, a slogan that continues to successfully sell sports clothes and attract young, potential athletes. With an intemperate amount of athletes and those heavily involved in fitness, Nike remains successful and thriving. Young soccer athletes and vibrant pastels constitute their descriptive advertisements that entice soccer players into purchasing one of their posh cleats. The Neymar advertisement, for example, features the accomplished and talented player in a neon orange with a black contrast uniform running with flames igniting from his Footy Boots Nike cleats. The Nike symbol, a swoosh, is printed in black on the flaming, orange cleats. The name of the cleats, Footy Boots, is depicted on a...
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...Table of Contents Introduction 3 Nike, Inc. 3 Under Armour 4 Porter’s five forces analysis 5 Nike, Inc. and Under Armour innovation strategies comparison 7 Conclusion 9 References 10 Introduction Nowadays, more and more people become concerned about health; they develop special diet that include vitamins and advanced nutrition supplements, and of course they do sports. Any kind of sports demand at least basic sports outfit: a T-shirt, shorts or pants, and a pair of shoes. Industry of sports apparel and footwear is an important part of today’s global business, where big companies have to compete for a customer. It is rather hard to differentiate on this market, because all the goods have to fulfill only one goal: make a person feel comfortable during a workout. Thus, companies have to work harder to develop new innovative products to gain market share advantage. The market of sports apparel is now dominated by several big companies: Nike, Inc., Adidas group (which includes Adidas and Reebok), and Puma. But there is also a new fast-growing and very promising player - Under Armour that managed to enter this saturated market. The key success factor for Under Armour was their innovative approach in creating sports apparel. Observing Under Armour’s success Nike has reconsidered their strategy and made innovation the core part of their mission, and in 2013 Nike was announced a #1 innovative company by fastcompany.com. So now there are two key innovators on the market...
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