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