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Prepared by M. Onur KALYONCU University of Applied Sciences OFFENBURG 02.12.2009.

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Presentation on theme: "Prepared by M. Onur KALYONCU University of Applied Sciences OFFENBURG 02.12.2009."— Presentation transcript:

1 Prepared by M. Onur KALYONCU University of Applied Sciences OFFENBURG

2 -Mini Quiz- When was the company founded?

3 What is the first name of Nike company? - Ekin - Mike - Red Ribbon Sports - Blue Ribbon Sports -Mini Quiz-

4 What is the meaning of Nike? Sport Freedom Fighter Greek winged Goddess of victory -Mini Quiz-

5 The Journey 1960s -Phillip Knight(ceo) & William Bowerman partnered to sell running shoes to athletes 1970s - cash in on Americas running craze: 1)1972- $ 3 million 2)1980- $ 270 million 3)1986- $ 1 billion

6 Problems in mid 1980s: 1.Demographic changes - baby boomers pushed into their late forties & felt less like running. 2.Market for running shoes become highly segmented (mature market) -many different models for every nuisance of customer need. 3.Competition -Reebok create new market orientations to sell sneakers based on fashion rather than performance Results from the problem Nikes unit sales decreased 17% - market share declined 31% to 24% have only 18.6 % share of shoes market Action taken 1.Introduced technological features to enhance shoes performance. 2.Use of celebrities as spokesperson. Air Jordan was a major hit. 3.Using advertising as marketing strategy

7 Challenge in late 1990s 1) Shoe market had changed -younger customer favors of hiking boots & more casual footwear. -teens began participating in nontraditional extreme sport. NIKE responded by introducing ACG (all-condition gear) 2) Controversy surrounding its overseas labour practices -Nike being accused of utilizing sweatshop labour in developed nations. Protest sprang. NIKE created corporate & social responsibility department.

8 Nikes focus Create authentic athletic footwear, apparel, equipment and accessories for sports and fitness enthusiasts Through subsidiaries, design and sell a line of mens and womens dress and casual shoes and accessories

9 Converse NikeTown Cole Haan Nike Football Nike Basketball Nike All Conditions Gear (ACG) Nike+ Hurley International Jordan Brand Nike Golf BRANDS

10 Nike Manufacturing As of May 2009, Nikes three main product engines - footwear, apparel and equipment - used almost 700 contract factories in 52 countries to manufacture all Nike products, employing close to 800,000 workers. It is Nikes mission to make responsible sourcing a business reality that enhances the lives of these workers.

11 Nike Products

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13 Product Mix for Nike Football Equipment Ball Bags Watches National Team Gear Jersey for Brazil, England…., Club Gear Club Jerseys like Man U, Real Madrid, Barcelona Footwear Studs for Striker Mid fielders Defenders Apparel Headwear Tops/Polo Jersey Jackets Shorts Shocks

14 Who are wearing Nike products? NBA players Club teams Colleges and universities Baseball players Boxing Cycling American football players Golf players Tennis players Football players Swimming …… Everybody!

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16 New Products Nike have to face when Nike introduces a new attributes and new products frequently. Advantages + Nike will able to improve their performance in searching new design and styles of shoes. + Customers will have a lot of choice in making selection depends on their wants. + Nike will improve their company and brand image at the same time expand their market share.

17 Disadvantages - Increase the cost in handling inventory, designing, advertising and production Customer reaction They will get the latest design of shoes. A lot of choice in making selection depends on their prefer. Customers will find the Nike shoes are trendy. In contras sometimes Customer maybe feel fed up because they cant follow the changing of Nike shoes. Not all the customers can follow the changing of Nike.

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19 Nikes Overall Reputation

20 Quality of Nikes Products

21 + Increased sales due to the strengthening economy + More positive public perception of Nikes social responsibility + Growth through increased presence in low- to mid-priced shoe market + New athlete name recognition - Growing competition - Competitors attracting female consumers - Human rights concerns OPPORTUNITIES&THREATS

22 Advertising Strategy Designed to make a connection to the consumer Seldom pitch the product directly or talk about product attributes Sometimes dont even mention the companys name featuring instead only the swoosh logo Making new contracts with sportsmen Collaboration ads with another strong branded product, such as Apple iPod

23 https://www.nikemedia.com/ Nike and Media

24 SAN FRANCISCO, Calif. (October 18, 2009) –Over 20,000 women from 50 states and 25 countries completed the Nike Womens Marathon (NWM), the largest race of its kind in the world, raising more than $14 million for The Leukemia & Lymphoma Society (LLS).

25 November 30th, 2009 One the day before World Aids da some of the worlds best footballers joined U2 frontman Bono Bono at announcement of partnership between NIKE, Inc. and (RED). Didier Drogba (Chelsea) Joe Cole (Chelsea) Andrei Arshavin (Arsenal) Marco Materazzi (Inter Milan) Denilson (Arsenal) Lucas Neill (Everton) Clint Dempsey (Fulham)

26 Let the Clean Economy Begin In 2007 for reducing its annual CO2 emissions to 18 percent below its 1998 levels

27 Summary Type Public (NYSE:NKE) Founded: 24 January 1968 Founder(s): William J. Bill Bowerman Philip H. Knight Headquarters Beaverton, Oregon,United States Area served: Worldwide Key people: Philip H. Knight (Chairman) Mark Parker (CEO) & (President) Industry Designing and Manufacturing: Sportswear Sports equipment Products: Athletic shoes Apparel Sports equipment Accessories Revenue US$ billion (2008) Operating income US$ billion (2007) Net income US$ billion (2008) Total assets US$ billion (2008) Total equity US$ billion (2008) Employees 30,200 (2008)

28 Just Do It!!!!


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