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

About Nike
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!

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

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; Nikes 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 NIKEs 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 Nikes 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;

Diversity
Diversity and Inclusion is what drives creativity and innovation. Nikes 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

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
C h a rt 1 : R e v e n u e p e rfo rm a n c e (fis c a l y e a r 2 0 0 4 -2 0 0 8 , 5 -y e a r C AGR 11% )
2 0 ,0 0 0 1 5 ,0 0 0 1 0 ,0 0 0 5 ,0 0 0 2004 2005 2006 2007 2008 1 2 ,2 5 3 1 3 ,7 4 0 1 4 ,9 5 5 1 6 ,3 2 6 1 8 ,6 2 7

S o u rc e : N ik e ,In c . 2 0 0 8

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, 5year CAGR 22% )
$4.00 $3.00 $2.00 $1.00 $0.00 2004 2005 2006 2007 2008 Source : Nike ,Inc. 2008 $1.75 $2.24 $2.64 $2.93 $3.74

Competitive advantage
Chart 4: Revenue Performance
14,000 Revenue in mln 13,262

As competitive strategy Nike use product differentiation.

12,000 10,000 8,000 6,000 4,000 2,000 Nike Adidas 713 Puma 8,225

Nike is known for its technologically advanced products.

7.00 6.00 5.00 EPS, 4.00 3.00 2.00 1.00 0.00

Source: Nike,Inc; Pum a.Inc; Adidas,Inc

Chart 5: Earning per share

5.81

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

2.66

2.96

Nike

Adidas

Puma

Source: Nike,Inc; Pum a,Inc; Adidas,Inc

International marketing
Chart 3: Revenue distribution (Fiscal Year 2008 vs 2004) We can conclude that revenue increased by 6% at international markets.
Other businesse s, 12% US, 39%
Other businesse s, 14% US, 34%

2004
Internation al, 49%

2008

Internation al, 52%

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.

Questions? Comments?