NIKE
TABLE OF CONTENTS 03 OBJECTIVE 05 HISTORY 06 IDENTITY 07 SCOPE & SIZE 08 MARKETING STRATEGIES & SWOT ANALYSIS 10 ADVERTISING 12 SOCIAL MEDIA & APPS 04 TARGET MARKET 15 CUSTOMER PROFILES 18 COMPETITIVE ANALYSIS 20 MARKET THREATS & OPPORTUNITES 22 CORPORATE BUYING PLAN 24 NIKETOWN NYC - PLAN 25 SCOTTSDAL, AZ - PLAN 26 ASSORTMENT PLAN 27 WORKS CITED
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A collaboration by: Emma McKinley Heather Dundey Yejide Enyenema Offord
OBJECTIVE
As the world’s leading athletic footwear, apparel and equipment company, NIKE, Inc. is dedicated to inspiring every athlete to reach their full potential.
NIKE co-founder Bill Bowerman saw endless possibilities for human achievement through sport. His philosophy still guides our mission today: “To bring inspiration and innovation to every athlete in the world.”
We believe if you have a body, you are an athlete.
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HISTORY Nike was founded in 1964 by University of Oregon Track &Field coach Bill Bowerman and University of Oregon track star Phil Knight inBeaverton, Oregon. Today it is known as the #1 manufacturer of footwear and apparel for all athletes and non-athletes. It was originally called Blue RibbonSports until 1971, when the trademark Swoosh became their logo and Nike was coined as the new brand name. In 1964 Nike began producing running shoes for track & field athletes and eventually ventured into apparel in 1972 with the Nike T-shirt. As Bowerman tested different shoe creations and Knight handled the business aspect of the company, Nike became a household name. The company soon began designing shoes for other athletes such as basketball players in 1982. As Nike began expanding their product categories, its growth continued through the buying of other footwear and athletic companies. Today, Nike has 7 other brands under its belt; Converse, Chuck Taylor, All Star, OneStar, Star Chevron, and Jack Purcell, and Hurley. Since its birth, Nike has surpassed the work of Adidas and PUMA through its sustainable technology and constantly keeping their footwear and apparel lines up to date while still sticking to their classic Nike look.
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IDENTITY Nike is a company that has been creating top of the line athletic gear for over 50 years. It started off as a thought to design running sneakers that actually support the runner and turned into a franchise that caters to numerous sports and lifestyles. It survives solely on the constant growth of new found innovation for consumers to accomodate active customer lifestyles. Through this innovation Nike creates products, services and experiences for today’s athlete as well as solving problems for the next generation.
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SCOPE AND SIZE 171 US Nike Factory Stores 33 US Nike In-line Stores 6 US Distribution Centers 6 BUSSINESS SEGMENTS North America + Western Europe + Eastern Europe + Central Europe + Greater China + Japan +
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MARKETING STRATEGIES Nike is an athletic wear company that focuses on fitness and sports while encouraging their customers to get out and be active. Explore. Innovate. Scale. Collaborate. These themes define Nike’s journey towards sustainability, one that considers impacts across their vaule chain including labor, environment, and communities. “Innovation is found everywhere from the heart of our design, to the way products are made, to the communities in which we work and live.” Nike is based on sustainable innovation; to help create a better workplace, a better product, and to help better the environment.
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SWOT ANALYSIS STRENGTHS
+Product Innovation. +Strong Brand Identity and Recognition. +Online Presence and Ad Campaigns. +Social Media and Apps. +Athlete Endorsements.
OPPORTUNITIES
+Favorable Industry Trends. +eCommerce. +Emerging Market Growth. +Product Category Expansion. +Eco-Friendly Efforts.
WEAKNESSES
+High Advertising Costs. +Dependence on Third-Party Manufacturers. +Negative Criticism: Social and Environmental Issues. +High Prices.
THREATS
+Heightened Competition. +Product Cost Inflation. +Price Sensitivity. +Economy Stability.
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ADVERTISING
Nike uses the strategy of emotional branding in their advertisements, which allows the promtotion of Heroism. They make the viewers believe that laziness is the enemy and to challenge yourself, fight back, and become the hero of your own story.
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SOCIAL MEDIA FACEBOOK
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APPS
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TARGET MARKET Nike has no specific target market that they sell their products to. Nike determined that every age, interest, and gender is it’s own category of business, therefore they market to every income and social class out there (e.g. inner city kids, suburbs, weekend athletes, athletes, the fashion aware, and so forth).
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AGE: 16-40 Yrs GENDER: Male / Female STATUS: Single / Married
THE ATHLETE SARAH (ATHLETE) +24 YRS OLD +PRO ATHLETE +PRACTICAL AND STYLISH +NIKE FREE FLYKNIT Sarah is a professional athlete in Track & Field. Her mornings consist of waking at 5am, completing cross training for 2hrs, then another hour of weight training in the gym. Nike’s newest technologies, help her to train at the highest level, and include her favorite NIKE FREE FLYKNITS. Nike is her training and lifestyle company of choice, enabling Sarah to stay on top of her game as well as her fashion.
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THE PARENT HEIDI (PARENT) +40 YR OLD +ACCOUNTANT +YOGA AND HEALTH FANATIC +NIKE STUDIO WRAP Heidi is a mother of two who is all about the healthly, active lifestyle. She works as an accountant from 9-5 for a local company in the suburbs and enjoys her weekends by spending time with her children and partner. Heidi, in keeping with her healthy lifestyle, attends yoga classes at the studio at least three times a week to destress in the evenings and keep active. Her favorite Nike product at the moment is the NIKE STUDIO WRAP which help with support during activity, as well as sanitation.
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THE STUDENT NICK (STUDENT) +19 YR OLD +MAJOR: CINEMA STUDIES + FILMING NYC FASHION +NIKE TECH CREW Nick is an undergraduate film major at NYU in the city. His daily schedule is pretty hectic with school and his part-time job, but he still manages to film street style on the side.
Nick chooses Nike apparel and footwear to fill his wardrobe because of the products style and comfort. The ease of throwing on his NIKE TECH FLEECE allows him to be ready for whatever his busy days throw at him.
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COMPETITIVE ANALYSIS +Strong brand portfolio +Brand Recognition + Research & development on new products + Monitoring Geographical footprint +Celebrity endorsments +Influence from Fashion & Music industry + Product example: Springblade Driver
+Formula One & NASCAR Partnership with BMW & Ferrari + Research & Development on new products + Brand Recognition +Sponsorship with sporting industry + Official sponsorship of the FIFA football World Cup +Product example: FAAS 300 V3 Nightcat
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COMPETITIVE ANALYSIS +Growing Brand Portfolio +Brand Recognition + Advanced Research & Development +Focus on the athlete and performance +Team Contracts (ex: NFL) + Product example: HeatGear ArmourVent Training Apparel
+ Research & Development on new products + Brand Recognition +Specializing in footwear +Product example: Multi-Sport 99
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TREND THREATS Leather Jacket by THEORY
+ALL NATURAL FABRICS The desire for “Eco-friendly” materials could end up threatening Nike, as the company is built on Innovative Tech materials. +UNDER ARMOUR, ADIDAS, PUMA The rising popularity of other athletic companies will likely take away a good amount of Nike’s income. Eco Fashion by Study-NY
+TEXTILE TRENDS The use of textiles such as leathers, suedes, and denim are trends that are not practical to be translated into sportswear.
David Beckham and Akon for Adidas
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TREND OPPORTUNITIES +TECH-WEAR The potential growth of digital accessories in the fashion world could be beneficial to Nike’s wearable technologies that are in the market and in development.
NIKE FUEL BAND
+SPORTSWEAR The Active Sportswear trend is all over the runway and the streets, and will enable Nike to translate their products from the gym, to everyday street style; and even into night life.
Under Armour E39 Biometric Compression Shirt
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CORPORATE BUYING PLAN The NIKE Assortment Plan for the Spring 2015 quarter we designed focuses on Women’s Footwear. The styles of footwear chosen are some of the companies best sellers consistently throughout recent seasons, as well as the addition of some newer technology. Our price point for customers is focused around the average price of the product, $124 US dollars, while our sizes range within the most common shoe sizes for women. The data shown on the charts is based on the Spring 2014 selling season in NIKE IN-LINE stores for the US, taking into account percentages coming from Women’s footwear sales (approx. $280,973,000) as well as our predictions for growth for Spring 2015 (approx. 12.11%). We based our monthly sales percentages, for the Corporate plan as well as our individual store plans, on our predictions for when the target customers mostly shop for women’s footwear (e.g. growth in sales during early spring for warmer weather as well as late summer for back to school shopping).
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CORPORATE BUYING PLAN Focus Product Category: Women's Footwear (000's)
Spring 2015 Plan Net Sales, Spring 2015 Est. Net Sales, Spring 2014 Plan % Last Year: Average Stock, Retail: Inventory Turnover: Planned Reductions, $: Reductions % Sales: Plan IMU %: (000's)
Net Sales % Spring Plan BOM Stock Stock / Sales Ratio Plan EOM Stock Plan Reductions % Spring Purchases, Retail Purchases, Cost
February 44100.0 14.00% 145530.0 3.3 155295.0 6615.0 14.00% 60480.0 24192
315000.0 280973.0 12.11% 153368.6 2.05 47250.0 15.00% 60%
March 53550.0 17.00% 155295.0 2.9 151200.0 7560.0 16.00% 57015.0 57015
Spring 2015 6 Month Buying Plan April May June 50400.0 56700.0 59850.0 16.00% 18.00% 19.00% 151200.0 158760.0 161595.0 3.0 2.8 2.7 158760.0 161595.0 151200.0 7087.5 9450.0 9450.0 15.00% 20.00% 20.00% 65047.5 68985.0 58905.0 65047.5 68985 58905
July 50400.0 16.00% 151200.0 3.0 150000.0 7087.5 15.00% 56287.5 56287.5
Spring 2015 315000.0 100.00% 153368.6
47250.0 100.00% 366720.0 330432
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NYC NIKETOWN
BUYING PLAN
NYC NIKETOWN PLAN Focus Product Category: Women's Footwear (000's)
Spring 2015 Plan Net Sales, Spring 2015 Est. Net Sales, Spring 2014 Plan % Last Year: Average Stock, Retail: Inventory Turnover: Planned Reductions, $: Reductions % Sales: Plan IMU %: (000's)
Net Sales % Spring Plan BOM Stock Stock / Sales Ratio Plan EOM Stock Plan Reductions % Spring Purchases, Retail Purchases, Cost
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February 3920.0 14.00% 11368.0 2.9 12096.0 588.0 14.00% 5236.0 2094.4
28000.0 24975.4 12.11% 12021.7 2.33 4200.0 15.00% 60%
March 4480.0 16.00% 12096.0 2.7 11760.0 672.0 16.00% 4816.0 4816
Spring 2015 6 Month Buying Plan April May June 4200.0 5040.0 5320.0 15.00% 18.00% 19.00% 11760.0 12096.0 12236.0 2.8 2.4 2.3 12096.0 12236.0 12096.0 630.0 840.0 840.0 15.00% 20.00% 20.00% 5166.0 6020.0 6020.0 5166 6020 6020
July 5040.0 18.00% 12096.0 2.4 12500.0 630.0 15.00% 6074.0 6074
Spring 2015 28000.0 100.00% 12021.7
4200.0 100.00% 33332.0 30190.4
SCOTTSDALE, AZ BUYING PLAN
Focus Product Category: Women's Footwear (000's)
Spring 2015 Plan Net Sales, Spring 2015 Est. Net Sales, Spring 2014 Plan % Last Year: Average Stock, Retail: Inventory Turnover: Planned Reductions, $: Reductions % Sales: Plan IMU %: (000's)
Net Sales % Spring Plan BOM Stock Stock / Sales Ratio Plan EOM Stock Plan Reductions % Spring Purchases, Retail Purchases, Cost
February 1200.0 16.00% 4080.0 3.4 4080.0 157.5 14.00% 1357.5 543
7500.0 6689.8 12.11% 4043.9 1.85 1125.0 15.00% 60%
March 1275.0 17.00% 4080.0 3.2 3937.5 180.0 16.00% 1312.5 525
Spring 2015 6 Month Buying Plan April May June 1125.0 1275.0 1275.0 15.00% 17.00% 17.00% 3937.5 4080.0 4080.0 3.5 3.2 3.2 4080.0 4080.0 4050.0 168.8 225.0 225.0 15.00% 20.00% 20.00% 1436.3 1500.0 1470.0 574.5 600 588
July 1350.0 18.00% 4050.0 3.0 4000.0 168.8 15.00% 1468.8 587.5
Spring 2015 7500.0 100.00% 4043.9
1125.0 100.00% 8545.0 3418
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ASSORTMENT PLAN Focus Product Category:
WOMEN'S FOOTWEAR
Planned Purchases, Retail: Average Retail Price:
Sizes 5 5.5 6 6.5 7 7.5 8 8.5 9 9.5 10 10.5
roduct Category:
Purchases, Retail: Retail Price:
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% Total 2% 2% 7%
$ Purchases $7,334,400 $7,334,400 $25,670,400
% Total 2% 2% 7% 10% 15% 13% 15% 13% 15% 4% 2% 2% 100%
$366,720,000.00 $124
$ Purchases $7,334,400 $7,334,400 $25,670,400 $36,672,000 $55,008,000 $47,673,600 $55,008,000 $47,673,600 $55,008,000 $14,668,800 $7,334,400 $7,334,400 $366,720,000
Classification Air Max Flyknit Nike+ Running Free Lunarlon Zoom
% Total 20% 20% 20% 20% 10% 10% 100%
$ Purchases $73,344,000 $73,344,000 $73,344,000 $73,344,000 $36,672,000 $36,672,000 $366,720,000
WOMEN'S FOOTWEAR
$366,720,000.00 $124
Classification Air Max Flyknit Nike+ Running
% Total 20% 20% 20%
$ Purchases $73,344,000 $73,344,000 $73,344,000
WORKS CITED “BRING INSPIRATION AND INNOVATION TO EVERY ATHLETE* IN THE WORLD.” NIKE, Inc. Nike, Inc, n.d. Web. 14 Nov. 2014. Hellman, Justin. “NIKE: A Short SWOT Analysis.” NIKE: A Short SWOT Analysis. Value Line, 10 Mar. 2014. Web. 16 Nov. 2014. Shah, Ima. “The Sneaker Men Autumn/Winter 15/16.” WGSN Fashion Trend Forecasting and Analysis. WGSN, 13 Nov. 14. Web. 16 Nov. 2014.
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