...COMPANY SYNOPSIS NIKE, Inc. NIKE is a multinational recognized company that is coined as one of the largest sellers of athletics footwear and apparel with revenues grossing $30,601 million. (Marketline, 2016) Its management team consists of an executive board of directors, corporate governance team and a board of directors. Its Board of Directors Philip H. Knight, is one of its co-founders. Knight and his partner Bill Bowerman founded at that time Blue Ribbon Sports in 1964 and changed its name officially to NIKE, Inc. in 1971. NIKE is known for its strong brands like NIKE, Jordan, Converse, and Hurley and has partnered with many high profile athletes such as Michael Jordan, Kobe Bryant, and LeBron James to test and market its strong portfolio of brands. NIKE also incorporates a team of coaches, athletes, trainers, equipment managers, orthopedists, podiatrists, and a slewful of other experts to ensure they’re focused primarily on R&D activities that propel their brand to the forefront. (MarketLine, 2016) This focus and their alignment with external forces is vital due the intense competition and a growing number of counterfeit products. Another approach of NIKE that has deemed lucrative in their market is their Multi-Channel Approach. NIKE sells its products through various channels such as retailing online and in-store. At the end of 2015 NIKE’s portfolio consisted of 592 retail stores, which includes 512 factory stores and 73 online stores internationally. In addition...
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...comprehensive market research that is designed to examine the different demographics that make up the consumer base, their shopping trends, and economic activities is thoroughly carried out. Further, given the diverse nature of socio-economic variables ranging from age, sex, education and income level, to mention a few, it is equally important that specifics demographics factors that are applicable to the unique aspects of the organization are exclusively examined as the organization lays out its objectives, strategies, and operational procedures. In this paper, based on a benchmark research, we will describe the effect of demographic factors on organizational planning, analyze the role that they play in organizational conflicts, and examine their influence on individual rewards and recognitions. Various companies utilize demographics to establish organizational cultures, while minimizing the conflicts that accompany each unique demographic factor. Executives plan strategies that will implement change that can produce the diversity within their organization that can yield a broader range of consumer and workforce that will bring longevity to each organization in an ever-changing global business world. Certain key concepts allow us to identify these concepts within each of these companies such as changing the patterns and views of...
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...Advertising Strategies Nike and Under Armour Contemporary Business BUS08 December 6, 2014 Promotional and Advertising strategies are similar but at the same time very different. The advertising strategy is designed to sell a product. It is basically one way communications from the company to the consumer. This provides the consumer information to make a purchasing decision (Schermerhorn, Osborn, Uhl-Bien, & Hunt, 2012). Where as a promotional strategy is two way communications designed to increase sales and attract new customers. This is can be referred to as Branding. One key difference is promotional strategies give away something; this could be a free product or money off attracting consumers who would not be attracted under normal circumstances. This paper will investigate two top athletic apparel companies to understand their strategies. The two companies chosen for this project are Nike Incorporated and Under Armour. These two companies are two of the leading sports apparel companies. Both of these company’s focus their products on the athlete and specific sports. Nike Incorporated has been in business since 1964 and has a much longer history in the industry than Under Armour (UA) which joined the picture in 1996. Both companies make a variety of athletic apparel and a number of athletic shoes. This project will provide details on how each company compares in the athletic shoe market. 1. Compare and contrast the promotional strategies used by two...
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...XXXXX Semester : XXXXX CONTENTS PAGE Introduction 02 A Brief Overview of Nike, Inc. 02 A Brief History 02 Section LO1 - Process of marketing 03 Elements of marketing process 03 Costs and benefits of marketing 04 Section LO2 - Segmenting, Targeting and Positioning 05 Macro and Micro environments factors that influence marketing 05 Segmenting strategies 05 Targeting strategy 06 Buyers’ behaviour activities that affect marketing 07 Positioning strategy 07 Section LO3 - Marketing Mix 08 Extended marketing mix 08 Product development and sustainable competitive advantage 09 Distribution strategy 09 Pricing strategy 09 Promotional strategy 10 Section LO4 - Marketing Mix in different context (activity) 11 Planning marketing mix for two different segments in consumer markets 11 Marketing products and services for B2B markets 11 International marketing strategy 11 Credits and references 12 A BRIEF OVERVIEW OF NIKE, INC. Nike, Inc. is a major publicly traded sportswear and equipment supplier based in the United States. The company is headquartered near Beaverton, Oregon. It is the world's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment with revenue in excess of US$18.6 billion in its fiscal year 2008 (ending May 31, 2008). As of 2008, it employed more than 30,000 people worldwide. Nike and Precision Castparts are the only Fortune 500 companies headquartered in the...
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...Analysis: 6 McKinsey’s 7 S Strategy: 6 Using a clear and identified screening criterion, select two recommended markets with clear justification as to why these markets have been selected 6 Recommended and justified market entry strategy to take Nike Inc. into each of these markets 8 Recommended adaptations to Nike’s marketing mix for the proposed markets, ensuring differences in culture and consumer behaviour are recognised in their marketing mix activity 9 Conclusion 11 References 12 Appendix 15 Introduction International market expansion requires thorough understanding of market and its dynamics for ensuring expected profit and performance. In context to that, the case of Nike Inc. would be analysed. The company wants to increase their brand value and sales through international expansion. Therefore, cities from two developing markets have been selected as prospective destinations. These are Panadura (Sri Lanka) and Agrinio (Greece). These cities would be analysed to check their suitability for being locations of Nike stores. An analysis of the macro and micro factors impacting on the sports retail market and the market recommendations The sports retail market could be analysed in proposed markets through vivid understanding of macro and micro factors affecting it. PEST Political: The current political state in Sri Lanka is stable. The sports policy of the Sri Lankan government provides extensive support in developing sports infrastructure across...
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...Marketing Strategy Chaunte Rhone MKT/421 March 23, 2011 Instructor Rebecca Robbins Marketing is a process that encompasses every aspect of an organization’s ability to provide products or services to customers, suppliers, and communities. An organization’s marketing mix is crucial to producing successful results that will increase consumer patronage, sales, and profits. The four elements of the marketing mix, which includes product, place, price, and promotions affects the development of an organization’s marketing strategy and tactics. How an organization implements the elements of the marketing mix is dependent on the objectives of the marketing strategy. In a recent article the writer explains the reasoning for the revision for the American Marketing Association’s definition of marketing by writing, “Marketing is the activity, conducted by organizations and individuals, that operates through a set of institutions and processes for creating, communicating, delivering, and exchanging market offerings that have value for customers, clients, marketers, and society at large” (Gundlach G, 2009, p. 260). Elements of the Marketing Mix Product Products are important to the marketing mix and whether an organization supplies products or services they must satisfy customer needs to be successful. Products can come in different shapes, sizes, with different features, and for different usages. Whatever the product or service an organization provides for a target market implementation...
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...IBM 302 05-23-11 Jana Haman Jonathan Chou Andrew Chareunsouk Brent Shannn Zenia Villa Jed Wu Target market Because Nike is such a large and globally recognized company, they offer a large variety of products and thus have many target markets. They market not only footwear but apparel, equipment, and accessory products for men, women, and children. Nike is like Coca-Cola, in the sense that they design and market their products for every possible group imaginable. The different groups of footwear they design for include: running, training, basketball, soccer, sport-inspired casual shoes, kids shoes, aquatic activities, baseball, cheerleading, football, golf, lacrosse, outdoor activities, skateboarding, tennis, volleyball, walking, wrestling, and other athletic activities. Basically, they market their products to anyone who does any physical activity or likes the look of their shoes without being active. Even though Nike promotes itself through every sport and physical activity imaginable, they still have a demographic that they target. They try to create and market their products to people of all ages and sex, regardless of where they live. This is why Nike is successful. They not only start with the youth but progressively make footwear and accessories for people as they age and start to pick up other sports also. Because they market to every sport and physical activity, they also know that with each activity/sport there are a different group of...
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...MOUNT KENYAUNIVERSITY NAME : COURS : LECTURER : COURSE UNIT : DATE : 00/06/2013 TASKS : Introduction (Public Relation theory) Public relations are a management function separate from other functions. Many organizations splinter the public relations function by making it a supporting tool for other departments such as marketing, human resources, law, or finance. When the public relations function is sublimated to other functions, it cannot move communication resources from one strategic public to another as an integrated public relations function can. Public relations manager, are obliged to have knowledge of different theories so that they can make the right decisions for their public relations plans and programs. The value to their employer or client will be directly related to how well they use theory in your work. Not any single theory covers all you need to know in public relations or any other discipline; therefore, it is valuable to look at theories by grouping them according to how they are used. We start with theories of relationships, then, we discuss theories of persuasion and social influence. Systems Theory Systems theory is useful in public relations because it gives a way to think about relationships. Generally, systems theory looks at organizations as made up of interrelated parts, adapting and adjusting to changes in the political, economic, and social environments in which they operate. Organizations have to recognizable boundaries, within...
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...an analysis and evaluation of the role of the Internet on the fashion industry as well as comparing and contrasting the e-marketing mix strategies of two competing e-businesses Nike Inc and Sass & Bide. Firstly, the report will critically analysis the roles of the Internet on the Fashion Industry. Secondly, the report will highlight ways in which the Internet has significantly changed the way the Fashion industry operates. Thirdly, the report will analysis and compare the product mix strategies of both Nike and Sass & Bide. Fourthly, the report will analysis and compare the price mix strategies of both Nike and Sass & Bide. Fifthly, the report will analysis and compare the promotion mix strategies of both Nike and Sass & Bide. Sixthly, the report will analysis and compare the place mix strategies of both Nike and Sass & Bide. Seventhly, the report will summarise the key findings from the analysis of Nike and Sass & Bide. Lastly, the report will outline whether superior marketing mix strategies are found in either Nike or Sass & Bide. * The report is successful in highlighting the varied roles the Internet has within the Fashion industry and how it has significantly changed the way the industry operates. * The report demonstrates differences between the e-marketing mix strategies of Nike and Sass & Bide that allow each business to have success, profitability and growth * The report allows for an interesting critical...
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...Nike was established in 1972 by former University of Oregon track star Phil Knight. Nike has $10 billion in annual revenues and sells its products in 140 countries. Nike has been dogged for more than a decade by repeated accusations that its products are made in sweatshops where workers, many of them children, slave away in hazardous conditions for less than subsistence wages. Many reporters, TV shows, companies and organizations have repeatedly exposed negative comments towards Nike. For example, a “48 Hours” news report aired on October 17, 1996 regarding a Nike factory in Vietnam, which was visited by reporter Roberta Baskin. The reporter discovered that Nike hired millions of workers who are literate, disciplined, and desperate for jobs at wages lower than minimum wage. Another example of the criticism against Nike came from a newsletter published by Global Exchange. The newsletter uncovered that the majority of Nike shoes were made in Indonesia and China, countries with governments that prohibit independent unions and set the minimum wage at rock bottom. Nike formulated a number of strategies and tactics to deal with the problems of working conditions and pay in subcontractors. In early 1997, Nike also began to commission independent organizations such as Ernst & Young to audit the factories of its subcontractors. Finally, on May 12, 1998 Nike founder Phil Knight spelled out a series of initiatives designed...
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...Description of marketing strategies applied by Nike Air Force 4.1 Challenges Forcing Nike to Focus More on Marketing Sportswear is defined primarily as apparel and footwear made for sports participation, though is now also includes casual clothes worn by people for daily activities (E. Ko, C. R. Taylor, et al., 2012). The sportswear market is one of the most price-competitive markets throughout the globe. Within the UK, items of sportswear are purchased by almost 90% of people under 35 years of age, and by 76% of the population as a whole (Mintel forecasts, 2006). The international sportswear market is worth nearly 41.5 billion US dollars at the wholesale level, with Nike, Adidas, as well Reebok comprising some 14% of this market (Jeroen, 2004) and more details are shown in Figure 1. International Athletic sportswear market: Share by brand in Millions of US dollars (Source: Sporting good intelligence, 2003) 4.1.1 Overview of sportswear industry through Porter’s Five Forces analysis Before the study regarding the marketing strategy of Nike Air Force, it is important to have a clear view of sportswear industry as a whole. Based on Porter's Five Forces model, the general characteristics of the industry can be described in the figure as follow. Based on the analysis, it can be concluded that the sportswear industry as a whole can be characterized as competitive and easy for new entrants. Such truth has raised challenges for existed companies, such as Nike. In addition to that...
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... Swot and Tow matrix................................................................................................ 7-10 4.0 Market Selection......................................................................................................... .11 5.0 Recommended Markets and Market entre Strategies............................................11-12 6.0 Marketing Strategies....................................................................................................12 7.0 Marketing Mix..........................................................................................................13-14 8.0...
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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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...Case Title: Nike Inc. Developing an effective public relations strategy 1. SHORT CYCLE PROCESS | Who | Nike´s Corporation | What | La imagen de la compañía fue muy negativa, por lo que sus ventas bajaron considerablemente | Why | En los medios de comunicación afirmaron que las fábricas subcontratadas para Nike en China e Indonesia obligaban a los trabajadores a tener largas horas por bajos salarios y los gerentes abusaban verbalmente | When | En 1990 | Case difficulty cube How: x Analytical Conceptual Presentation 2. LONG CYCLE PROCESS | Problema | Raíz del problema | La mala publicidad perjudica a la organización terriblemente, ya que los consumidores toman la postura de prohibir la compra de sus productos. | El público fue informado de que Nike estaba maltratando a sus trabajadores en el extranjero | Nike ignoró los problemas y negó su responsabilidad hacia su fabricación por contrato | La compañía no se quería hacer responsable de las acusaciones que se le hacían, ya que culpaban a los contratistas en los países asiáticos | Nike no puede equilibrar entre el objetivo de actividades y cuestiones prácticas laborales | Nike no era coherente entre lo que tenía por escrito en su código de conducta y lo que realmente estaba pasando en las fábricas de China e Indonesia | Los grupos activistas no se convencieron con la implementación de su código de conducta y problemas de administración...
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...Introduction: Vision and mission statements play an important role in strategy development by providing vehicles to generate and screen strategic options. They also provide organizational identity and understanding of business directions. A vision is an attempt to articulate what a desired future for a company would look like. It gives the company direction and it's the basic premise for the success of the mission statement. It stretches the imagination and motivates people to rethink what is possible. A mission statement is a brief explanation of the organization's purpose. It tells who we are and what we are. Mission statements should articulate the principles that will guide the business and its employees to grow, advance, and prosper. Definition of Mission and Vision statement: A mission statement, or simply a mission, is a public declaration that schools or other educational organizations use to describe their founding purpose and major organizational commitments—i.e., what they do and why they do it. A mission statement may describe a school’s day-to-day operational objectives, its instructional values, or its public commitments to its students and community. Figure 1.1: Image of Mission and Vision A vision statement, or simply a vision, is a public declaration that schools or other educational organizations use to describe their high-level goals for the future—what they hope to achieve if they successfully fulfill their organizational purpose or mission. A vision...
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