NIKE BRAND AUDITBy Sydney Abbott, Tyler Jones, and Andrew GIles

About NIKE

● Largest manufacturer of athletic footwear, apparel, and equipment worldwide

● $30 Billion in revenue ● 700 factories in 42 countries ● 57 distribution centers ● 140,000 retail locations● Distribution methods:

○ Wholesale ○ Direct-to-consumer ○ Sales to global brand divisions

19711962 - Phil Knight and Bill Bowerman

Today

Stock Price and Market Share

Marketing Strategy● Channels: Television commercials, digital

advertisements, celebrity endorsements, sponsorships, and social media

● Associations: High quality, performance, victory, comfort, attractive personal image, market leader and celebrities

● Demand Creation: spent $2.75 billion, 11% of total revenue

● Athlete Endorsements: $856 million

Target Audience

Women Young Athletes Runners

Brand Building Assessment

● Strong brand resonance

● Well-established behavioral loyalty

● Attitudinal attachment is positive

● Powerful sense of community

Brand Growth Assessment

Strengths Weaknesses

● Number 1 sports brand globally● Strong research and development: Innovative

product designs and manufacturing processes● Brand transcends past sports/athletics focus;

consumers also utilize as casual fashion/lifestyle brand

● Customizable offerings: “NIKEiD”, very easy to use, virtual customization tool for many shoe models and some bag models

● Ongoing perceptions of poor labor practices (despite widely improved conditions in recent years)

● High, premium prices: alienates lower income consumers, especially in emerging markets

● High promotions costs: Endorsements from athletes costed 11% of sales in FY13

Opportunities Threats

● Emerging markets: BRIC countries○ Currently realigning portfolio and boosting

promotions in China● Current, favorable industry trends

○ Minimalist footwear○ Fashionable activewear for more than just

exercise: “athleisure wear” or “low performance activewear”

○ Wearable technology● Obtain more female athlete endorsements

(currently many more males than females)● Offer Nike ID for more products

● Competition○ Under Armour is relatively new and

showing extremely strong growth○ Lululemon is strong competitor in women's

athletic wear market● Currency volatility: Over half of Nike’s sales come

from international markets. Recent reports were hurt by strengthening of USD

Competition

Recommendations● Emerging markets: BRIC countries

○ Currently realigning portfolio and boosting promotions in China● Obtain more female athlete endorsements (currently many more males than females)● Offer Nike ID for more products● Address improved labor conditions● Acquire a competitor to gain market share - Lululemon

Questions?