FASM 245 winter 2014 Professor Dan Green Lily McMahon
TABLE OF CONTENTS Brand ID
Company Mission
Company Profile
Scoop & Size
Target Market
Customer Profile
Competitors Addias Puma new Balance
Market Position
Trend Reports
Lifesstyle Active Wear Wearable Tech
6 Month Buying Plan
Nike Parent Plan
High Volume Store
Low volume Store
Product Assortment
FuelBand + Assortment
Opportunity Analysis
COMPANY PROFILE Nike, Inc. was started by Bill Bowerman and Phil Knight originally known as Blue Ribbon Sports, in 1978, Blue Ribbon Sports later became Nike, Inc. Today it is publically traded on the NYSE. It ‘s headquartered in Beaverton, Oregon. Nike Inc is the leading designer, marketer and distributor of athletic footwear, apparel, equipment and accessories for a range of sports and fitness activities. Nikes Inc. Portfolio of brands extends into Sub brands such as Jordan, and Hurley and Converse.
Nike operates in thousands of retail across the world from specialty retail stores, sporting goods stores to department stores.In the Us market Nike operates through 33 Nike retail stores and the Nike online ecommerce.
North America
SCOOP AND SIZE
Dollars in millions Revenuse by: Footwear
U.S Retail Stores
Number
NIKE Brand facotry stores
171
NIKE Brand in-line stores
33
Converse store
72
Hurfey stores
27
TOTAL
303
Apparel Equipment TOTAL REVENUES
Fiscal 2013F
iscal 2012
$6,687 3,0282 6724
$5,887 ,482 70
$10,387
$8,839
$7,838
$6,720
Revenues by: Sales to Wholesale Customers Sales Direct to Consumer TOTAL REVENUES
2,5492 $10,387
,119 $8,839
TARGET MARKET Nike’s target market are active people who enjoy high quality sporting goods with the latest inovations. Nike markets to anyone who enjoys partaking in healthy lifestyles and has sense of style. Most of Nike target audience are sporty individuals who has a casual lifestyle and has sense of fashionable taste as well, they are people that have an active lifr that are involved with gym mebership or in sports like soccer, tennis, football and others.
CUSTOMER PORILFE Nikes customer Profile are for the everyday people, from the CEOs wife to College students. Our customers wants comfort and style. They are willing to pay for premium products.
MARKET POSITION
PRICE
Nike offers premium products made with the latest innovation. Nike positions the company based on the value and quality of it’s products and services.
Market position with indusrty comperitors Fuel Band market position with other retailers Upcoming designer bands
QUALITY
LIFESTYLE Consumers are taking a conscious approach to active lifestyles to better their phyical and mental health as well as to reduce any additional medical costs. Awareness of healthy lifestyle in return yielded to higher demand for activewear related products and services, including active apperal, training equipmentsor gym memberships that allows a healthy life choices . The lifestyle trend of consumers highly impacts our prodcuts.
ACTIVE WEAR TREND Active wear has been a mega trend in the market, therefore active wear accessories such as travel bags, water bottles and other gadets has also been a big trend for the market.
WEARABLE TECHNONOGY Major fashion brands are looking to harness the trend for wearable technology by constantly sourcing out the newest innovation in textiles and digital goods. The newest trend in innovative textile has been high tech fibers that allows the body to adapt for the environment. The big trend for digital goods are innovative “phyitgal “bracelets with a smart processor chip that can detect patterns of daily activities.
The current lifestyle trends is an important factor to the buying plan because it lays the groundwork for the funding. Since there is a mega trend in active wear and health related products and with Nike having been ahead of the curve and has made a continual commitment to be the industry leader in product innovation we feel its necessary to plan for an aggressive inventory at this moment in time beacuse
PARENT PLAN 25000.0 14000.0 79% 16742.9 1.5 2500.0 10% 54%
Plan Net Sales, Fall 2014 Est. Net Sales, Fall 2013 Plan % Last Year: Average Stock, Retail: Inventory Turnover: Planned Reductions, $: Reductions % Sales: Plan IMU %: August 4000.0 16%1 16800 4.24 17000 250.0 10%1 4450.0 2047.0
(000's) Net Sales % Fall Plan BOM Stock Stock / Sales Ratio Plan EOM Stock Plan Reductions % Fall Purchases, Retail Purchases, Cost IMU % =P
September 4250.0 7% 17000 16500 250.0 0% 4000.0 1840.0
15 341 00 rofit + Expenses + Reductions - Cash Discounts + Alt. Costs 1001
54%5
October 3750.0 15%1 16500 4.43 17100 375.0 15%2 4725.0 2173.5
9 110
November 4500.0 8% 17100 .8 18700 550.0 2% 6650.0 3059.0 0
Net Sales + Reductions 0
December January 5500.0 3000.0 22%1 2% 18700 15600 3.4 5.2 15600 15500 700.0 375.0 28%1 5% 3100.0 3275.0 1426.0 1506.5
Fall 2014 25000.0 100% 16742.9
2500.0 100% 26200.0 12052.0
NIKE CALIFORINA Plan Net Sales, Fall 2014 Est. Net Sales, Fall 2013 Plan % Last Year:5 Average Stock, Retail: Inventory Turnover: Planned Reductions, $: Reductions % Sales: Plan IMU %:
Net Sales % Fall Plan BOM Stock Stock / Sales Ratio Plan EOM Stock Plan Reductions % Fall Purchases, Retail Purchases, Cost
1200.0 760.0 8% 667.4 1.8 168.0 14% 53% August 180.0 15%1 666.0 3.73 693.6 7.01 10%1 214.6 98.7
September 204.0 7% 693.6 .4 655.2 0.57 5% 176.1 81.0
October 168.0 14%1 655.2 3.93 706.8 .0 10%2 226.6 104.2
November 228.0 9% 706.8 .1 745.2 15.4 2% 281.8 129.6
December January 276.0 144.0 23%1 2% 745.2 604.8 2.74 .2 604.8 600.0 19.6 10.5 28%1 5% 155.2 149.7 71.4 68.9
California: A Store 278 Post St San Francisco, CA (415) 392-6453
Fall 2014 1200.0 100% 667.4
168.0 100% 1204.0 553.8
NIKE PORTLAND Plan Net Sales, Fall 2014 Est. Net Sales, Fall 2013 Plan % Last Year:5 Average Stock, Retail: Inventory Turnover:1 Planned Reductions, $: Reductions % Sales:1 Plan IMU %:
Net Sales % Fall Plan BOM Stock Stock / Sales Ratio Plan EOM Stock Plan Reductions % Fall Purchases, Retail Purchases, Cost
500.0 320.0 6% 362.4 .4 70.0 4% 53% August 75.0 15%1 375.0 5.04 382.5 7.01 10%1 89.5 41.2
September 85.0 7% 382.5 .5 357.0 0.57 5% 70.0 32.2
October 70.0 14%1 357.0 5.14 389.5 .0 10%2 109.5 50.4
Porland: C Store 2650 NE Martin Luther King Jr Blvd Portland, OR 97212 (503) 281-5901 10:00am – 8:00 pm
November 95.0 9% 389.5 .1 402.5 15.4 2% 123.4 56.8
December January 115.0 60.0 23%1 2% 402.5 330.0 3.55 .5 330.0 300.0 19.6 10.5 28%1 5% 62.1 40.5 28.6 18.6
Fall 2014 500.0 100% 362.4
70.0 100% 495.0 227.7
Product Assortment
FuelBand + Assortment
Product Category Assortment
Planned Purchases, Retail: Total Units:
Classification Fuel Band Digital Watches Tech Devices Bracelets Tech Apparel Other Total
$26,200,000 $642,641
%$ Total Purchases 32%$ 8,384,000 9% $2,358,000 12%$ 3,144,000 8% $2,096,000 27%$ 7,074,0004 12%$ 3,144,000 100% $26,200,000
Unit Purchases 55893 13871 44914$ 29943$ 71600$ 26420 642641
Avg. Retail $150 $170 70 70 15 $119
Fuel Band Assortment Planned Purchases, Retail: Average Retail Price: units needed 5 Sizes Small2 Med/Large3 Large Xlarge
% Total 7% 5% 22%$ 16%$
$8,384,000 $150 5,839
$ Purchases Unit Purchases $2,263,680 15091 $2,934,400 19563 1,844,480 12297 1,341,440 8943
Opportunity/Risk Analysis When creating our buying plan, we planned for significant opportunity for Nike. While there is always a potential risk, we believe that the growth we have planned for the company will be successful due to our rapid advancement in wearable technology market. As Fuel band is among the top development in wearable technology by planning an aggressive plan we believe will allow us to reach to our target customers before other retailers can. We expect a higher percentage in not only sales for 2014, but for season to come. We want Nike to be the first place one would think to go to for good quality, stylish fashion accessories. There is such a range of products in our store that we believe we can reach a multitude of different fashion-forward people, no matter what their style may be.