marketing plan nike - copy

8/2/2019 Marketing Plan Nike - Copy

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NAME PROGRAMME MATRIC NO

1 ALEXSON ANAK ALI SAH1_1 A11A019

2 AHAMAD IQBAL BIN KAMARUZZAMAN SAB1_1 A11A009

FAKULTI KEUSAHAWANAN DAN PERNIAGAANFUNDAMENTALS OF MARKETING

(AFT 1053)TASK 1

GROUP ASSIGNMENT

NIKE MARKETING PLANLECTURE NAME : AHMAD SYAKIR BIN JUNOH@ISMAILDUE DATE : 11 MARCH 2012


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EXECUTIVE SUMMARY

(Nike Inc. 1999)


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NIKE HISTORY

Bill Bowerman and Phil Knight founded Nike Inc. as BlueRibbon Sports in 1962.

The partners began their relationship at the University ofOregon where Bowerman was Knights track and field

coach. While attending Stanford University, Knight wrote a paper

about breaking the German dominance of the U.S. athleticshoe industry with low-priced Japanese shoes.

Knight visited Japan and engineered an agreement with the

Onitsuka Tiger company, a manufacturer of quality athleticshoes, to be their sole distributor in the United States.


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In 1962, Knight received the first shipment of 200 pairsof Tiger shoes to his parents garage in Oregon. Theshoes were bought by Blue Ribbon Sports (BRS), the

name of the partnership between Knight andBowerman that they formed with only $1,000 incapital.

In 1966, Bowerman, who had previously designedshoes for his university athletes, worked with Tiger to

design the Cortez running shoe. The shoe was aworldwide success for the Onitsuka Tiger Company andwas sold at the first BRS store.

In 1971, BRS, with creditor support, started

manufacturing their own line of shoes. Later that year, the first BRS shoe was introduced. The

shoe was a soccer shoe that bore the Nike brand name,referring to the Greek Goddess of Victory, and theSwoosh trademark.


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1972 marked the breakup of the BRS/Tigerrelationship. BRS soon changed its name to Nike, Inc.and debuted itself at the 1972 Olympic trials.

In 1973, Steve Prefontaine was the first prominenttrack star to wear Nike shoes. The late 70s and early

80s also saw John McEnroe, Carl Lewis, and Joan

Benoit sporting Nike shoes.

Nike popularity grew so much that in 1979 theyclaimed 50% of the U.S. running market. A year laterwith 2,700 employees, Nike went public selling 2million shares on the New York Stock Exchange.

The 1980s were marked by the signing of MichaelJordan as a product spokesperson, revenues in excessof $1 billion, the formation of Nike International Ltd.,and the "Just Do It" campaign.


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In 1990, Nike surpassed the $2 billion mark inconsolidated revenue with 5,300 employeesworldwide. In addition,they opened the NikeWorld Campus in Beaverton, Oregon.

In 1991, Nike pushed revenues to $3 billion, upfrom $2 billion the prior year

International revenues fueled a great portion ofthis growth with an 80% increase in 1991 fromthe prior year. In 1992 international revenuestopped $1 billion for the first time and accounted

for over one-third of our total revenues. At the end of the 90s, Nikes goal, as stated in our

company web site, is to become a truly globalbrand.


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CURRENT MARKETING SITUATION


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1.MARKET DESCRIPTION


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Student (consumer market)

-Perform many teenager design.

-Express style and individuality.

Professional (consumer market)

- Athlete can make choose many quality of theproduct.

-Sponsorship.

Entrepreneur (business market)-Easy to booker the new product from nikesupplier.


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2.PRODUCT REVIEW


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Products

Nike primary product focus is athletic footweardesigned for specific-sport and/or leisure use(s).

Nike also sell athletic apparel carrying the sametrademarks and brand names as many of they footwear

lines. Nike sell a line of performance equipment under the

Nike brand name that includes sport balls, timepieces,eyewear, skates, bats, and other equipment designedfor sports activities.

In addition,nike utilize the following wholly-ownedsubsidiaries to sell additional sports-relatedmerchandise and raw materials: Cole Haan HoldingsInc., Nike Team Sports, Inc., Nike IHM, Inc., and Bauer

Nike Hockey Inc.


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Nike most popular product categories includethe following:

Running

Basketball Cross-Training

Outdoor Activities

Tennis

Golf

Soccer

Baseball Football

Bicycling

Volleyball

Wrestling

Cheerleading

Aquatic Activities Auto Racing

Other athletic and recreational uses


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3.COMPETITIVE REVIEW


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Reebok in terms of their products, is not entirely different from Nike.

Adidas and Puma also are top competitor in market .

Top Competitor Analysis

-Distinctive Competency - Marketing (Consumer Loyalty)

*Reebok has managed to hold the loyalty of a large portion of the

industrys female consumers market.

Competitor Key Weakness (Advertising/Promotion)

-The leading cause of Reeboks recent tumbles stemmed from problems

relating to poor marketing. Reeboks shortcoming in the area of marketing

is their key weakness.


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STRENGTHS, WEAKNESSES,

OPPORTUNITIES, AND TREAT ANALYSIS.


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STRENGTHS A very competitive organization.

It has no factories.

It is a famous for its development and researchwhich is depicted in their wide range of newproducts with new designs.

Its swoosh logo make it recognizable in all overthe world.

It promises to provide the high quality products

at reasonable prices. Its products are globally available in all leading

marketing places of World.


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Nike Inc. 1999 Board of Directors

Thomas E. Clarke President and Chief Operating Officer, Nike, Inc., Beaverton, OR

Jill K. Conway Visiting Scholar, Massachusetts Institute of Technology, Boston, MA

Ralph D. DeNunzio President, Harbor Point Associates, Inc., New York City, NY

Richard K. Donahue Vice Chairman of the Board, Lowell, Massachusetts Delbert J. Hayes, Newberg, OR

Douglas G. Houser Assistant Secretary, Nike, Inc., Partner Bullivant, Houser, Bailey, Pendergrass & Hoffman Attorneys,Portland, OR

John E. Jaqua Secretary, Nike, Inc., Partner Jaqua & Wheatley, P.C. Attorneys, Eugene, OR

Philip H. Knight Chairman of the Board and Chief Executive Officer, Nike, Inc., Beaverton, OR

Charles W. Robinson President, Robinson & Associates, Santa Fe, NM

Michael Spence Dean, Graduate School of Business, Stanford University, Palo Alto, CA

John R. Thompson, Jr. Former Head Coach, Georgetown University, Washington, D.C.

William J. Bowerman Director Emeritus


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WEAKNESS

Less diversity in the sport products.

The company does not have its own

retailers therefore retailers are pricesensitive.

All sizes are not present in every design

of shoes.


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OPPORTUNITIES

The athletic footwear and apparel industries will benefit from the currently strong economic

backdrop in the United States. Spending is high and is expected to result in sales growth

industry-wide.

Athletic shoes and apparel have become a staple in wardrobes worldwide. This is due to both

the increasing numbers of people exercising and the trend towards casual apparel.

Competition is fierce at all levels in within the industry, especially among the leaders. This

creates a sense of security for the companies that have been able to create a niche.

Cost cutting due to restructuring of operations will give many companies the chance to price

products more competitively.

One area in the industry that is ever changing is research and development. The strong

departments will surely capitalize on the trends of tomorrow if their efforts are successful.

Increasing financial recovery in overseas markets proves to be an area of expansion for the

athletic footwear and apparel industry.

E-tailing, or customer-designed internet merchandise, is threatening the traditional

distribution channels, thus eliminating the "middle-man" distributors and allowing for

increasing profitability


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THREATS

The industry has reached a level of maturity. While style and technology in athletic apparel

and footwear has reached a leveling-off point, the important aspect now is for companies to

differentiate their lines.

Inflation is looming over the U.S. economy, which may spark a cutback in consumer spending.

Consumers are becoming savvier and may lean towards discounted items.

In terms of market saturation, many of the key manufacturers in this industry have been

around for many years. Consumers may be scanning the market for new and different

footwear and apparel products.


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MARKETING MIX


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Products

i. Nikes foremost focus is athletic footwear

and apparels designed for sports every dayusage with the brand name.

ii. The production facilities are located close to

the raw material to have low labor prices.iii. New product offerings under the name of

brand include sport balls, timepieces,

eyewear, skates, bats, and other equipmentdesigned for sports activities.

iv. The most famous product categories of Nike

includes:


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Price

i. The company has designed its prising

structure in a way to make it competitive toother shoe sellers.

ii. The prices of the products are variable

depending on the type and the size forexample a comfortable and good pair of

shoes would cost from 70 to 150 dollars.


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Place

i. Nike has its individual strores and also

avaible at major malls and departmentalstores selling all over the globe.

ii. They have more than 20,000 retailers inUnited States and also in other 200

countries.

iii. The companies also sell its products throughindividuals, auxiliaries and licensees.

iv. The company has its production units,customer services and operational units in allover the World.


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Promotion

i. The company has used electronic media

(commrcials, official website of Nike andnewspapers) to promote their brand.

ii. Many well known athletes have also worked

for the advertisement of brand like BrazilianSoccer Team ( especially Ronaldo)

iii. They sponsor events (e.g. Hoop It Up) for the

marketing of brand.iv. The Brands swoosh logo and image played

an important role in its advertisement.


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OBJECTIVE


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Long-Term Corporate Objectives

The following are Nike Inc.'s 5-Year long-term corporate objectives: Continue our improvement in stockholders' return on equity to

achieve a 20.0% return in 2004. This would be an increase of almost6.5% from 1999.

Increase earnings per share to $2.70 per diluted share by 2004 in anoverall effort to bolster the long-term resilience of our stock's value.This would surpass our 1997 record high.

Short-Term Corporate Objectives

The following are Nike Inc.'s short-term corporate objectives for

fiscal year 2000: Increase net income to $550 million by the end of fiscal year 2000 in

order to reach our long-term goals of improved return on equity andhigher EPS. This 22% increase from 1999 is realistic in light ofcombined 1st & 2nd Quarter income already 32% higher compared tothe same time last year.

Recover the market price of our stock from its 52-week low of $26.50per share on February 8, 2000, to a value that approximates its 52-week average of $50 per share.


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Issues

i. Many competitor has same prices as their

productii. The buying behavior of consumer.(reaction)

iii. Economic problem.


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MARKETING STRATEGY


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EXAMPLE BROADCAST MEDIA


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Positioning-Nike is the one of the worlds greatest brand in the eye of the

consumer.

-Nike product are considered to be high quality, unique

convinient.

-Nike has innovative culture.


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Product Strategy

i. Use all modern design

ii. Brand image(swooh logo corporate)iii. Packaging (interesting box)

iv. Colour


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Pricing Strategy

i. Use a little bit of psychological pricing.


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BUDGETS


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Sales and Income Trends


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marketing plan nike - copy

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