...Director Nike, UK Subject: A study of changes in the Sportswear market in India in the past decade with focus on footwear sector. Analysis and suggestion about the marketing techniques that need to be implemented for the launch of a new product. The study also includes formulating a Pricing strategy and various promotional measures to be opted by Nike. In today's competitive market, companies always try to introduce different types of products and creative marketing approaches so as to showcase the uniqueness in their products and to survive in the dynamic marketing environments. Nike, the American multinational company is a leading manufacturer and supplier of sportswear, apparel, accessories and services and holds the top spot in supplying athletic shoes and apparel throughout the world. The company, today is among the most valued brands. (Skoloda, 2010) The product is due to be launched in India, which holds the top spot in terms of being among the fastest growing economies in Asia and is the most preferred markets for multinational companies. Indian economy is growing at 8.8%, which is among the best in Asia. (Nobrega & Sinha, 2008) Changes in the Sportswear market over the last decade: As Isaac Asimov once said “The only constant is Change” so is it. The current markets are ever changing. Philip Kotler & John Caslione (2009) state that “Turbulence is the new normal”. Companies introducing new products or investing into markets do not just...
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...Situation Analysis Company (Product/Service) Description …Page 4 Situation Analysis SWOT Analysis……Page 5 Situation Analysis SWOT Analysis…Page 6 Situation Analysis Industry Analysis ….Page 7 Situation Analysis Industry Analysis …Page 8 Situation Analysis Target Market Description (Market Segments/Characteristics) …Page 9 Situation Analysis Marketing Mix/ Competitive Analysis……Page 10 Situation Analysis Marketing Mix Marketing Mix/ Competitive Analysis (Advertising strategies of Competition….Page 11 Advertising Objectives : Communication goal…Page 12 Advertising Objectives Communication goals….Page 13 Advertising Objectives Purchasing Behavior/Positioning …Page 14 Advertising Objectives: Purchasing Behavior/Positioning Page 15 Advertising (Creative) Strategy: Product concept…….. Page 16 Advertising (Creative) Target Audience (Who the advertising will address) …Page 17 Advertising (Creative) Strategy Media Objectives/Media Plan…Page 18 Advertising (Creative) Strategy Communication Effectiveness/Advertising Message (Art elements, Production elements) …Page 19 Advertising (Creative) Strategy Testing & Evaluation Advertising Research …Page 20 Works Cited Testing & Evaluation Advertising Research ….Page 21 Reference…. Page 22 Executive Summary Nike has been one of the most successful retailers of their time; therefore we would like to capitalize on their success for a new concept about a product launch. The overall concept is to launch a revamped Nike Shox gym shoe...
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...heavy competition to be a market leader in developing economies, there are quite a few issues to be noted. a. Losing market share in China – Li Ning. It is worth noting that Nike does not have a Chinese online website store to facilitate customers to come online and learn/buy Nike’s products. b. Price sensitivity – Developing markets are generally price sensitive markets. Nike’s premium and high quality brand image doesn’t sync with the expectations of the customer. In other words, the differentiation strategy might not bring as good results as it had brought in the USA. 3. Significant reliance on IT and sophistication in managing supply chains. Nike is heavily dependent on information technology systems across our supply chain, including product design, production, forecasting, ordering, manufacturing, transportation, sales, and distribution. Nike’s ability to effectively manage and maintain our because the product design and innovation forms the backbone of the company. Nike success 1. The key reasons for the success of Nike are associated with its global brand promotion. Due to its extensive advertising campaigns the Nike’s brand is known in almost every household worldwide. 2. Nike (now, called the unofficial sponsor!) has generated the most buzz online in the lead up to the World Cup. Much greater than Adidas, it’s arch-rival and official sponsor. Coca Cola, Sony, Visa and other FIFA partners are lagging far behind. 3. Nike shoes and other accessories...
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...PUMA APPAREL BRAND ANALYSIS Aakriti Arora-W1580466 Arpit Jain-W1579903 EXECUTIVE SUMMARY Business strategy is important for every business growth and it sustainability in the market. A brand’s essential mission is to contribute to the consumer’s happiness and to boost sales. Our contemporary society is characterized by hyper-consumption (Lipovetsky, 2007). The individual is no longer seduced by objects and their discovery; on the contrary, he is attracted by the intimate consumption of products, by a personalized type of happiness and by a value communication of brand .To analyze brand strategies, it is important to analyze the external and internal environment affecting the organization by studying the trends in the market, strengths, weaknesses and core capabilities of any organization. Increasing competition has made it mandatory to focus on customer retention(Hong and John,2010)An organization’s success depends on its strategy decisions and to be successful, it is important to implement out of the box strategies. This report examines the sportswear industry and its major players’ marketing activities and strategies within a competitive environment, which will then lead to a strategic brand direction for a brand. Favorable trends have been observed in the sportswear industry, creating great opportunities for brands to capitalize on. The sector is observed...
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...1.0. Introduction Nikes goal is ‘to bring inspiration and innovation to every athlete around the world’. Therefore, has continuously been putting our efforts to inspire people all around the globe to get fit and become the best athlete they can be. This Report will represent a number of facts and statistics regarding Nike and the sports industry. As the demand for technology and new innovations of products increases, it is Nikes duty to meet the needs and wants of their customers. Nikes mission with this report is to identify what their customers wants, what is missing in the market and how Nike can motivate and encourage everyone to become ‘the best athlete they can be’. This investigation will be carried out over the duration of one year before Nike releases a new product into the market. 2.0 Environmental Scan 2.1. Nikes Organisation In order to fully understand what Nikes customers want, Nike must first consider their strengths and weakness of the company. It is important to minimize the weakness and maximise the strengths and advantages of NIKE. Another aspect that Nike needs to consider is the opportunity and the threat that Nike is facing. (Appendix A for full table) (Nike Facts (SWOT) Strengths analysis, 2008, Randy Peterman, Reference 2) Nike main strength is its ‘Swoosh’ logo. This logo is recognisable in at least 160 countries worldwide. With the growing demand in technology Nike has the opportunity to expand their market and response to this demand...
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...Company’s Market Segments NIKE, INC Dessey Holm MBA6012 u03a1 Due: June 08, 2014 Email: des69sey@hotmail.com Professor: Ted Framan Market segments is a division of a market into smaller submarkets based on characteristics that are in common. For example, there is a segment for noncustomers, customers, level of service, behaviors, and demographics to name a few divisions. In the marketing world, dividing into smaller segments allows businesses to develop a marketing strategy tailored to the individual segments based on their needs and wants. (Marshall & Johnston, 2010) To uncover which market segments that show most promise for the purpose of development is the goal of target marketing. “The decision to invest in developing a segment into a target market represents an important turning point in the marketing planning process because, from this point forward, the direction of a firm’s marketing strategies and related programs are set.” (Marshall & Johnston, 2010) Nike’s Internal Environment of Marketing A company’s internal environment in terms of marketing can include but not limited to marketing capabilities, manufacturing abilities, and distribution capacities. It involves most functions and capabilities inside of the company. To influence positive change within Nike Inc.’s supply chain, they use a variety of approaches. By building an empowered and equitable workforce they hope to add change that is beneficial to the company. “Today we’re in the...
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...from which I used data, ideas or words, either quoted directly or paraphrased. I also certify that this paper was prepared by me specifically for this course. Student's Signature: Brizaida Ribalta, Jessica Halsey and Shereen Hijazi ***************************************************************** Instructor's Grade on Assignment: Instructor's Comments: Table of Contents Executive Summary 4 Company Description 6 The Origin of Nike, Inc. 6 Today’s Nike 7 Mission and Goals 8 Core competencies 10 Situation Analysis 11 Macro-Level External Environmental Factors 11 Competitive Environmental factors 12 SWOT Analysis 15 Competitors 16 Reebok 16 Adidas 17 Puma 17 Target Market 19 Segmentation 19 Target Marketing 19 Marketing Mix 20 Product Strategy 20 Distribution Strategy 21 Promotion Strategy 21 Pricing Strategy 24 Customer Relationship Management 24 Budget and Monitoring 26 Summary and Conclusions 28 List of References 30 EXECUTIVE SUMMARY Nike is a leader in sportswear providing high quality innovative products. Our mission is to continue pushing boundaries with innovation thinking and product development. We create products for...
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...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, customers...
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...Footwear Industry Local Vs Global Footwear Industry Local Vs Global A Secondary Research and Analysis on Local and Global Brands in the Indian Footwear Industry Submitted to: Prepared By: Chirag Bansal Deepti Tripathi(IMT-G) Saurav Mishra (IIM-L) Contents 1. Industry Highlights………………………………………………………………………………………………………3 2. Timeline of the Global Footwear Industry……………………………………………………………………....4 3. Categories in Footwear Industry………………………………………………………………………………….… 6 3.1. Trends…………………………………… ……………………………………………………………………………6 4. Porter’s Five Force Analysis….………………………………………………………………………………….8 5. Market & Competition Analysis……………………………………………………………………………12 6. Success Factors of Global Brands Vs the Failure Factors of the Local Brands………………......17 7.References………………………………………………………………………………………………………………………19 1. Overview FOOTWEAR INDUSTRY SPECIFICS: Primary activities of industry: | Major products and services in industry: | • Athletic shoes manufacturing• Ballet slippers manufacturing• Children's shoes manufacturing• Cleated athletic shoes manufacturing• House slipper manufacturing• Infants'...
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...pp. 36–41. In some instances we have been unable to trace the owners of copyright material, and we would appreciate any information that would enable us to do so. Case 1 Nike sprints ahead of the competition? Nike was founded by Bill Bowerman, the legendary University of Oregon track and field coach, and Phil Knight, a University of Oregon business student and middle-distance runner under Bowerman. The partnership began in 1962 as Blue Ribbon Sports (BRS); their first-year sales totalled $8,000. In 1972 BRS changed its name to Nike, named after the Greek winged goddess of victory. Nike employs 22,000 people worldwide, from Nike World Headquarters in Oregon. With 1,500 employees working at the Laakdal Customer Service Centre, Belgium has the most employees of any EMEA (Europe, Middle East and Africa) country. The Netherlands is a close second, with 1,200 employees working at the European HQ in Hilversum. Nike is the number one athletic footwear company in the US and the number two American brand in terms of name recognition among overseas consumers, a status shared with IBM and second only to Coca-Cola. This high degree of recognition is probably one of the main reasons Nike has been so immensely successful. For the 2001 fiscal year sales in the US were $4,819m, up 2% from 2000. 51% of Nike revenue is generated by sales in the US. In Europe, sales were $2,585m, up 7% from 2000. Despite their healthy levels of growth, analysts forecast a change in Nike’s future. Although...
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...pp. 36–41. In some instances we have been unable to trace the owners of copyright material, and we would appreciate any information that would enable us to do so. Case 1 Nike sprints ahead of the competition? Nike was founded by Bill Bowerman, the legendary University of Oregon track and field coach, and Phil Knight, a University of Oregon business student and middle-distance runner under Bowerman. The partnership began in 1962 as Blue Ribbon Sports (BRS); their first-year sales totalled $8,000. In 1972 BRS changed its name to Nike, named after the Greek winged goddess of victory. Nike employs 22,000 people worldwide, from Nike World Headquarters in Oregon. With 1,500 employees working at the Laakdal Customer Service Centre, Belgium has the most employees of any EMEA (Europe, Middle East and Africa) country. The Netherlands is a close second, with 1,200 employees working at the European HQ in Hilversum. Nike is the number one athletic footwear company in the US and the number two American brand in terms of name recognition among overseas consumers, a status shared with IBM and second only to Coca-Cola. This high degree of recognition is probably one of the main reasons Nike has been so immensely successful. For the 2001 fiscal year sales in the US were $4,819m, up 2% from 2000. 51% of Nike revenue is generated by sales in the US. In Europe, sales were $2,585m, up 7% from 2000. Despite their healthy levels of growth, analysts forecast a change in Nike’s future. Although...
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...Nike Air Got U KiCks Joshua Gayle Strayer University Instructor Melody Kelley Marketing Management March 13, 2011 Identify the marketing segment for the product and explain why this segment was selected; The product is a called (Nike Air Got U KiCks) and is a branch off from the Nike Air Jordan Brand line. The segment was selected because the product fits the need in the market. The product is targeted to specific identifiable groups of individuals, families, firms, or organizations, sharing one or more characteristics or needs in an otherwise homogenous market. Market segments generally respond in a predictable manner to a marketing or promotion offer. Nike is a major sportswear and equipment supplier based in the United States, and is the world's leading supplier of athletic shoes and apparel. Nike markets its products under its own brand as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding and subsidiaries including Cole Haan, Hurley International, Umbro and Converse. In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name. Nike sponsors many high profile athletes and sports teams around the world, with the highly recognized trademarks of "Just do it" and the Swoosh logo. Nike Air Got U KiCks has been chosen to be launched because of its design and its marketability. The product design is based on convenience, because of the concept. The concept is model around several different...
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...Background: Portfolio manager at NorthPoint Group, Kimi Ford, pored over analysts’ write-ups of Nike, Inc. NorthPoint Large Cap fund was deciding on whether it would be wise to purchase stock from Nike. The issue was that Nike has experienced sales growth decline, where not only was there a decline in profits, but a decrease in their market share as well. In attempt to recuperate from this situation, Nike then suppressed their concern for their company by creating more merchandise. Here, Nike would enhance their exposure in mid-price footwear and apparel lines where they would then commit to cut down various expenses that were occurring. The stock market was responding to various signals to the changes Nike was making therefore, Ford did a cash flow estimation while she asked for help. Ford asked her new assistant, Joanna Cohen to estimate Nike’s cost of capital because her forecast seemed to be incorrect. Ford’s forecast showed that Nike had a discount rate of 12% and was undervalued at it current share price of $42.09. On the other hand, Ford conducted a quick sensitivity analysis that revealed Nike was undervalued at discount rates below 11.17%. What is the weighted average cost of capital (WACC)? The weighted average cost of capital otherwise known as the “WACC” is the capital finding of a company, that which has been developed in two aspects, debt and equity. Lenders as well as equity holders expect to have a certain return on the funds/capital they have provided....
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...CASE I - MARKETING SPOTLIGHT- NIKE 1. Nike one the top listed shoe company in the current world begun their business in 1962. The company focused on high-quality running shoes designed especially for the athletes. The key factor for Nike was that they have been able to create strong brand preferences among the customers. Nike created their brand image into consumers mind by using celebrity. The company’s commitments to designing innovative footwear for serious athletes help it build a cult following among American consumers. They run their marketing by using top athletes in their advertisement all over America and found that it put a huge influence to the consumer mind. Nike found that product and brand choices of consumers are hugely influenced by the preferences and behavior of their beloved celebrities. So the company signed an upcoming popular runner named Steve Prefontaine for their advertisement in 1973 and Prefontaine’s irreverent attitude matched Nike’s spirit. At the end the thought of using professional athletes in their advertising campaign proved both efficient and effective. Another important reason for Nike’s success was that they read the consumers mind perfectly. Nike does not sell “Nike air max” shoes, it sold a way of life, which is key to its success. This flag is the incentive for the people, and the philosophy behind the energy and determination, is that everyone concerned, whether you are not athletes. Nike uses a motivational type of language to inspire...
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...identifies the strengths, weaknesses, opportunities and threats of an organization. SWOT analysis also refers to the process through which decision makers develop their awareness of organizational environments so as to influence performance now and in the future (Naryanan & Nath, 1993: 197). Specifically, SWOT is a basic, straightforward model that assesses what an organization can and cannot do as well as its potential opportunities and threats. The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal (strengths and weaknesses) and external issues (opportunities and threats). Once this is completed, SWOT analysis determines what may assist the firm in accomplishing its objectives, and what obstacles must be overcome or minimized to achieve desired results. According to Investopedia, when using SWOT analysis, be realistic about the strengths and weaknesses of your organization. Distinguish between where your organization is today, and where it could be in the future. Also remember to be specific by avoiding gray areas and always analyze whether the company is better or worse than competition. Finally, keep your SWOT analysis short and simple, and avoid complexity and over-analysis since much of the information is subjective. Thus, use it as a guide and not a prescription. This paper seeks to evaluate the strategic implications of the SWOT analysis model of the Driver and Vehicle Licensing Authority (DVLA). The paper will give...
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