NIKE Kadee Anja Quincey Corey Kathleen
Nike’s Reputa<on • • • •
Consumer Loyalty Innova<on Cu@ng Edge Research and Development The Incorpora<on of Technology
History • First incarna<on began in 1964 under the name “Blue Ribbon Sports”
History • Originally, Nike focused solely on athle<c shoes • They have since expanded to include apparel, sports equipment, and other accessories in 170 countries around the world. • Subsidiaries include Umbro, Cole Haan, Hurley Interna<onal, and Converse.
Our Research Objec<ves • Demographics indicate the majority of Nike’s customers are young professionals. • Given that data, we want to determine if it would be profitable for Nike to introduce a Business Casual Men’s Shoe into their product line.
Sales by Key Distribu<on
Sales Volumes for Key Items
Market Share / Market Rank • Nike has over 30% of the athle<c footwear makers market worldwide 35%
30%
25%
20%
15%
10%
5%
0% Nike
Addidas
Puma
New Balance Reebock
Asics
Skechers
Converse
K-‐Swiss
Other
Running Shoe Market -‐ 2008 70%
60%
50%
40%
30%
20%
10%
0% Nike
Asics
New Balance
Other
Athle<c Shoe Brands Bought in Past 12 Months : Fall 2010-‐2011 Brand
Sales past 12 months % of Total Industry
Nike
$44,505,000
19.3%
New Balance
$26,304,000
11.4%
Adidas
$16,802,000
7.3%
Sketchers
$12,977,000
5.6%
Puma
$5,402,000
2.3%
Other
$124,426,000
54.1%
Total Industry
$230,416,000
100%
Current Brand Marke<ng • • • • •
Switched from print and television -‐> online Social Media Nike +, Nike Fuel Band Online communi<es “We want to inspire consumers to seek out our content” – Simon Pestridge, UK marking chief
Current Brand Adver<sing • 2000-‐ adver<sing was split from one sole agency to mul<ple • Specialize in new technology • Increase their social and digital media efforts • Past 3 years, 40% spending decrease on television adver<sing • 2010-‐ Nike spent $800 million on “nontradi<onal” adver<sing
Current Adver<sing Strategy • May 23, 2010: Nike launched a commercial shot by Oscar-‐nominated director and aired via • Nike Football’s Facebook Page • Reaching 8 million viewers a week • Viral-‐video record • Features soccer players sponsored by Nike
Why Nike Football Video? “less about hero worship and more about consumer-‐driven conversa<on” -‐Former Nike Execu<ve
Target Audience
Demographics Men Race: White Graduated college No college Age 25-34 (non-gender specific) Age 35-44 (non-gender specific) Occupation: Professional and related Occupation: Sales & Office House Hold Income $75,000-$149,999 House Hold Income $30,000-$39,999 Census region: South Now married Have children 12-17 years old Have children <6 years old Home owners Value of home $200,000-$499,999
% of 100 52 68.7 29.9 38.7 25.2 22.4 16.5 17.3 9.9 8.9 36.6 50.7 26.5 24.7 64.7 25.9
Psychographic Informa<on • Nike consumer: – Heath conscious – Fitness driven – Concerned with wellbeing – Improve physical condi<on – Ac<ve in online communi<es, fitness forums – Goal driven – Overcomes challenges
CATEGORY/COMPETITION
Five Year Growth History • Nike’s sales have increased.
Growth Con<nued • Current Stock is : $96.52 USD and is down -‐.2 %
Category Life Cycle Stage • Nike is in the growth stage.
Informa<on on Key Compe<tors Nike is number one in the market when looking at revenue compared to compe<tors.
Annual Sales Volume • Nike’s Annual Sales total is $24,128 million dollars.
Market Share/Market Rank 5 Year; Nike
Earnings from 1990-‐2012
Current Brand Posi<oning • Nike associates with high level athletes. • Nike is number one in performance. • number one in its industry of fine spor<ng equipment. • Nike overtakes some of the other major brands such as Reebok, Adidas, UnderArmor and Puma. • Nike has 346 retail outlets across the US. • Also, the company operates 106 Cole Haan stores, 51 Converse factory stores, and 18 Hurley stores in the US.
Why? Business Casual Shoe • Reasons for market research (product or service)
Focus Group Results • Opinions Nike brand; value, durability, brand hype, athle<c and pricey. • Nike being high performance which equals a berer experience, quality clothes and it is the top of the line sports apparel. • Tradi<onal style shoe and colors (black, brown and tan). • Price not exceeding $130 for a pair. • Buying Nike products at; outlet stores, Macy’s, DSW and Sports Authority. • Monday through Friday, semi-‐casual. • No Nike swoosh logo visible.
Shoe-‐1 • Shoe #1: Ater the ini<al nega<ve response par<cipants explained they – Loved the shoe style just not the color. – They liked the clean look of slip on.
Shoe-‐2
• Shoe #2: Posi<ve. They liked leather/style. – Clean cut and sophis<cated. – This group believed an entry level professional would wear these shoes.
Shoe-‐3
• Shoe #3: Older age group. – Boring, conserva<ve, – Plain but they did like the color. – Didn’t stand out.
Type of Research, Why? • • • • •
Self-‐administered survey 16 ques<ons Females were filtered out Most efficient: <me and money Disadvantage: lack of probing, par<cipant cannot ask surveyor ques<on
Research Objec<ves: TOPICS • 1. Measure the percent of males ages 18-‐30 would purchase a business casual shoe from Nike. • 2. Measure the percent of males ages 18-‐30 who needs a business casual shoe. • 3. Measure the preference of materials that customers like to see in a business casual shoe.
Research Objec<ve Cont. • 4. Determine the age bracket of males who are more likely to purchase a Nike business casual shoe. • 5. Measure the age bracket who is more willing to purchase a Nike business casual shoe between the price ranges of $75-‐125 • 6. Measure the age bracket that is more willing to purchase a Nike Business casual shoe between the price ranges of $125-‐200?
Research Objec<ve Cont. • 7. Measure the age bracket who is more willing to purchase a Nike Business causal shoe between the price ranges of $200-‐275? • 8. Measure the percent of males who currently purchase a business casual shoe that prefer a rounded or square silhouere/details? • 9. Measure the percent of current Nike customers between the ages of 18-‐30 who purchase Nike products for the style rather than the comfort. • 10. Measure the percent of males who purchase a Nike business casual shoe that would prefer the swoosh logo visible when worn.
Data Collec<on and Why? • Surveymonkey.com • Mass and individual messages containing survey link • Facebook, emails, twirer • Awareness email to urge par<cipa<on • Self-‐administered
Sampling Plan and Why? • • • •
Non-‐probability sampling Convenient sampling Judgment based, gender (males only) 1430 N. Dearborn Ave. building lobby
Final Sample
Interes<ng Characteris<cs • Out of the total 66 responses, 47 male par<cipants currently own business shoes.
Interes<ng Characteris<cs Con<nued
Interes<ng Characteris<cs Con<nued
Interes<ng Characteris<cs Con<nued
Interes<ng Characteris<cs Con<nued
Interes<ng Characteris<cs Con<nued • More than half our par<cipants purchased their last business casual shoe less than a year ago. • If Nike release a business casual shoe 3/4th of par<cipants would expect to pay anywhere from $75-‐$124 dollars.
SUMMARY OF RESEARCH FINDINGS
Research Objec<ves Findings
Research Objec<ve Findings How oten do you wear your business casual shoe?
Research Objec<ves Findings The most important trait in a business shoe
Research Objec<ves Findings
Research Objec<ves Findings
Research Objec<ves Findings
Survey Error • • • • • • •
Random sampling error Non-‐response error Administra<ve error Sponsorship bias Interviewer bias Pres<ge bias Threat bias
Survey: Recommenda<ons • Increase par<cipa<on to meet or exceed quota • Incen<ve for completed surveys • Different loca<ons for berer representa<ve sample
Nike: Recommenda<ons • Expand product line adding a business casual shoe • Males ages 17-‐24 willing to pay $75-‐$124 • Comfortable, leather, rounded toe box shoe • Nike Swoosh not visible • Online promo<on