Overview

• 1. About NIKE• 2. Brand Portfolio• 3. SWOT Analysis of NIKE• 4. Diversity• 5. Segmentation and positioning• 6. Pricing strategy• 7. Promotion strategy• 8. BCG matrix• 9. Key financial data• 10. Competitive strategy• 11. International marketing• 12. Conclusion

• Nike is the U.S-based manufacturer of athletic shoes, apparel and sports equipment.

• Stock symbol: NKE (NYSE) • Annual revenue (2008): more than $18billion • Founders: Bill Bowerman, Philip Knight • Year established: 1964 (as Blue Ribbon Sports) • Industry: Sportswear/equipment • HQ: Beaverton, Oregon • President/CEO: Mark Parker • Staff: 30,200 • Products: shoes, apparel and sports equipment, accessories • Slogan: Just Do It!

About Nike

Brand portfolio

• Cole Haan, designs and distributes dress and casual footwear, apparel, and accessories for men and women

• Converse Inc., offers a diverse portfolio including premium lifestyle men's and women's footwear and apparel.

• Hurley International LLC., designs and distributes a line of action sports apparel for surfing, skateboarding and snowboarding, and youth lifestyle apparel and footwear

• NIKE Golf, designs and markets golf equipment, apparel, balls, footwear, bags and accessories worldwide.

• Umbro.Ltd., designs, distributes, and licenses athletic and casual footwear, apparel and equipment, primarily for the sport of football (soccer)

SWOT Analysis of NIKE

• Strengths• Nike, Inc is listed in NYSE;• Contracts with about 700 shops worldwide,

runs offices in 45 countries; manages factories in China, Indonesia, Taiwan, Thailand, India, Vietnam, Philippines, Pakistan, and Malaysia.

• Belongs to Fortune 500 companies which 2008 total revenue exceeded 18 b. USD

• Employs more than 30.000 people worldwide;

• Strong marketing strategy. • Operates a chain of Niketown retail stores; • Nike’s premium brand is used to

manufacture and promote a wide variety of products for all types of sport-oriented and leisure activities;

• Applies lunarlite foam and flywire materials.

• Weaknesses• The income of the business is still heavily

dependent upon its share of the footwear market.

• The retail sector is very price sensitive. Most of NIKE’s income is derived from selling into retailers.

• Violated overtime laws minimum wage rates, Vietnam, 1996

• Provides poor working conditions, and tends to exploit cheap workforce overseas, especially in free trade zones.

• Contracts overseas companies that apply non-transparent and inadequate labor regulations, involving child labor.

• Positioned as a permanent subject of criticism by anti-globalization groups;

• Forced Labour applications in partnering apparel factories in Malaysia, involving forced Labour and poor living conditions

SWOT Analysis of Nike

• Opportunities• Nike is a fashion brand. Consumers

that wear Nike product do not always buy it to participate in sport.

• The opportunity to develop products such as sport wear, sunglasses and jewelry.

• The business could also be developed internationally, building upon its strong global brand recognition.

• Producing sportswear products from manufacturing waste;

• Emphasis on corporate marketing strategy through the promotion of corporate brand and sponsorship agreements;

• Threats• Nike is exposed to the international

nature of trade. • The market for sports shoes and

garments is very competitive. • The retail sector is becoming price

competitive. • Financial crisis may lead to job

shortages in a number of Nike’s worldwide subsidiaries;

• The company has experienced negative publicity feedbacks due to its extensive advertising in mass media

• Textile industry adversely affects the environment, and therefore the company is permanently striving to maintain its eco-friendly reputation;

SWOT Analysis of Nike

Diversity and Inclusion is what drives creativity and innovation. Nike’s ability to lead in innovation and creativity hinges on their ability to attract and retain the best global talent. To achieve this vision, the strategy is to:• Cultivate diversity and inclusion to develop world-class, high-performing teams• Ignite change and inspire critical conversations around diversity, inclusion and innovation• Create venues and environments for open dialogue, diverse opinions and a multitude of

perspectives

The Diversity and Inclusion team focuses on three areas:• Engaging Employees • Providing Business Consultation • Developing Innovative Tools, Models and Designs

Diversity

Segmentation and positioning

Segmentation

• Benefit segmentation The Nike mission: To bring inspiration and innovation to every athlete in the

world.• Consumers also might be segmented based on loyalty to company. Customer service mission: To represent the highest service standard within and

beyond our industry, building loyal consumer relationships around the world.• Nike segment the international markets by geographic location; the United States,

the Americas, Asia Pacific and Europe, Middle East and Africa (EMEA).

Positioning

• Highly differentiated products (based on style and design)• “More for more”• Consumer products

Product, price, promotion decisions

Product strategy• Several lines of athletic shoes and

apparel• Product mix width consist of

athletic shoes, apparel and sports equipment

• Product mix depth, for example, in athletic shoes are basketball, running, baseball etc.

Pricing strategy• Nike use market skimming pricing

strategy • Product line pricing

Promotion strategy• Advertizing (repeat messages at

low cost many times)• Direct marketing (through e-shop)• Public relations (sponsorship of

Manchester United)

BCG matrix

• Nike is established within its markets, benefiting from economies of scale.

• This places them in the Cash Cows category on the Matrix.

• Cash cows market growth has slowed, and the products hold a fairly stable market share

Key financial data

• In 2008 sales revenue of Nike was 14% more than that in the previous year

Chart 1: Revenue performance (fiscal year 2004-2008, 5-year CAGR 11%)

12,25313,740 14,955

16,32618,627

-

5,000

10,000

15,000

20,000

2004 2005 2006 2007 2008

Source: Nike,Inc. 2008

Key financial data

As we see from chart 2 the earning per share of Nike in 2008 is 28% more in comparison to the previous year.

Chart 2: Nike,Inc. EPS performance (fiscal year 2004-2008, 5-year CAGR 22%)

$1.75$2.24

$2.64$2.93

$3.74

$0.00

$1.00

$2.00

$3.00

$4.00

2004 2005 2006 2007 2008

Source: Nike,Inc. 2008

Competitive advantage

• As competitive strategy Nike use product differentiation.

• Nike is known for its technologically advanced products.

• Nike will also focus on making a strong effort in price leadership.

Chart 4: Revenue Performance

713

8,225

13,262

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Nike Adidas Puma

Source: Nike,Inc; Puma.Inc; Adidas,Inc

Rev

enu

e in

mln

€

Chart 5: Earning per share

2.66 2.96

5.81

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Nike Adidas Puma

Source: Nike,Inc; Puma,Inc; Adidas,Inc

EP

S,

€

Other businesse

s, 14%

International, 52%

US, 34%

2008

International marketing

Chart 3: Revenue distribution (Fiscal Year 2008 vs 2004)

• We can conclude that revenue increased by 6% at international markets.

Other

businesses, 12%

International, 49%

US, 39%

2004

Conclusion

• Nike, Inc. is a company rooted in competition. From equipping athletes with the finest sports equipment in the world to continuously improving their financial performance, Nike dominates its competitors. Phil Knight and Bill Bowerman probably could not have imagined in 1962 to what degree their $500 investments would yield in 2008. They did know that product quality and innovation would help athletes to achieve greater goals. Nike still operates on this philosophy today. It is one that has helped athletes and stakeholders alike to realize athletic and financial greatness. Despite a changing marketplace for athletic footwear, Nike wants to expand their product lines and marketing reach to become a more powerful global brand.

Thank you for attention.

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