Post on 06-Jul-2015
transcript
BA401
Nike‟s Global Women‟s Fitness Business
REORGANIZATION
Organization Structure
Before After
Primary Business Units
Geographic Regions
Sports Categories
Nike
Running
Men‟s Training
Basketball
Soccer
Women‟s Fitness
Sportswear
Organization Structure - Before
Primary Business Units
Geographic Regions
Sports Categories
Footwear
Apparel
Equipment
66%
28%
6%
Organization Structure - Before
Primary Business Units
Geographic Regions
Sports Categories
US
Europe, Middle East and Africa
Asia-Pacific
Americas
44%
33%
7%
16%
Decision Making
Product
Design
Product
Development
Demand
PlanningManufacturing Distribution Sale
Customer
Service
Footwear C C D C D D D
Apparel D D D C D D D
C = Centralized
D = Decentralized
Organization Structure - After
Nike
Running
Men‟s Training
Basketball
Soccer
Women‟s Fitness
Sportswear
CHANGING THE GAME
Changing The Game
Changing The
Game
Outdoor
Bags
Man Training
Value footwear
Women
Changing The Game
Plan Do Check Act
Phase I - April
Making it happen
January
Feb-Mar
Phase II - July
Phase III - Oct
Looking Forward
Phase I
Internal
External
Consumer
.
Phase I
Phase I
• Great initiatives.
• blurry boundaries btw fitness and active wear
• > Women’s fitness market = Encompassing all of the Activities women performed to keep fit in the gym
• Huge business opportunity. Size of $ 13 billion. U.S. > B5 EU > Asia
• 25% FW, 70% AP, 5% EQ
• 5-8% Growth rate
Phase I
• Leading brands in some categories (e.g. footwear)
• AP market is fragmented business.
• Competitors
– Reebok > Women’s aerobics
– Ads > Fashionable athletic wear
– Puma > Yoga
– SME > Lulu Lemon, Under Armour, Danskin
• Competitors > Changing dramatically > Plan!!!
Phase I
• In U.S., Women spent $ 7 trillion a year.
• Target group
– 22 year-old
– Confident
– Want to work out hard and look good (optional)
– >>> “Sweat Beauty”
• Next
– Wanted, Shopped, Connect, Approached sports
Phase I
• Thing she wanted.
– Micro-segmentation approach
• The way she shopped.
– Mall, catalogs, boutiques
– Not sporting goods retails
• Connected
– Emotional Connection
– Not “Hero-worship”
Phase I
From “Initiative”
• Inconsistent relationship with consumer
• Color-based collections
• Inconsistent retail experience
• Isolated initiatives
• Inconsistent, Inadequate commitment and
To “Aspiration brand of choice ”
“Sustainable” „n “Profitable”
• The dominate brand in her mind
• Integrated, concept-based collections
• Consistent defining retail experience – Globally
• Aligned Global Strategy
• Integrated, Fully Resourced Global Team
• Accelerated Global Business Opportunities
Phase I
Great revenue potential
No leading brand
Nike 'ownership, some
Brand expand‟ opportunities
Nike presence
Elevate to tier two over time
Store within a store
Phase II
• Focused on developing an overarching plan (tier one and two)
• Integrated collections from head to toe.
• Problem: Difference timelines
– > Front-end
– > Back-end
• 21 month calendar
21month calendar
Brand Execution
„n
Post-Season Review
PrelinesGo-to-Market Strategy
Prototype Review
Design Review
Seasonal kick off
„n Creative direction
Phase III
Organize
• How we would organize
• Semi-virtual organization
• Job descriptions
Fund
• How much money we needed >Incremental investment
Phase III
Semi-virtual organization
Virtual Team
Core Team
Semi-virtual
Business LeadsFunctional Leads
(Leveraged)
Virtual leadership
team
Phase III
Making it happen
• Global GM Women’s Fitness
• Global Directory Strategic Planning
• Global Director Marketplace Development
Winslow
Minto
Sittig
Making it happen
• Women’s Creative Director
• Women’s Innovation Director
• Women’s Merchandising Director
• Director Operations &
Making it happen
• Global Director Women’s Footwear
• Global Director Women’s Apparel
• Global Director Women’s Equipment
• Director Women’s Brand Initiatives
Making it happen
•USA
•EMEA
•Asia Pac
Making it happen
“Captain”
Virtual fitness sport team
LOOKING FORWARD
The change was slow
Uncover challenges
THANKS FOR UR ATTENTION