nike marketing plan
TRANSCRIPT
The Indian Footwear Industry - A Sectoral Analysis
• Pegged at INR 10,000 Crore in value terms
• Expected growth at a CAGR of over 20% for the period spanning from 2008 to 2011
• Men's footwear occupies nearly 58% of the total Indian footwear retail market.
• Casual footwear occupies nearly 70% of the total Indian footwear retail market
• Untapped opportunity in an exclusive women, kid or other functional category
Market Share of Key Players
Future market of Sports Footwear-
Key Drivers
Future market of Sports Footwear-
Key Drivers
Future market of Sports Footwear-
Key Drivers
Porter’s Five Forces Model
• Bargaining Power of Suppliers
-Subcontracts to more than 500 small scale factories -Low bargaining power due to Nike’s big volume
• Bargaining Power of Buyers
-Competitive products all compete on differentiation-Low switching costs
• Threat of Substitute Products
-Non-existent
Porter’s Five Forces Model
• Threat of Potential New Entrants
-Economies of Scale-Strong and Well Established Brand Name-High Capital requirements-Low threat
• Intensity of Rivalry between Firms in the Industry
-High competitive in an Oligopoly (other leading firms include Adidas, Puma, Fila, New Balance) -Strong brand identity and product differentiation -Intensity of Rivalry is moderate
Porter’s Five Forces ModelHigh Moderate Low
Bargaining Power of Suppliers
Bargaining Power of Buyers
Threat of Substitutes
Threat of New Entry
Intensity of Rivalry Between Firms
Segmentation , Targeting and Brand Positioning
Segmentation , Targeting and Brand Positioning
Segmentation , Targeting and Brand Positioning
• Sense of belonging to the Indian and global Sporting,
Fitness and Youth legacy• Confluence the Passion of Sports and subtle Fashion … A genre of “ Sports Fashion”
4Ps – Price , Place , Product, Promotion
Category Cluster Price Range( in INR )
Mode Price Range
( in INR )
Sports Shoes (Multi
category Retailers)
Bata / Liberty / Action /
Lotte
800 - 1600 1000-1200
Sports Shoes( In House
Labels)
Vishal Megamart / Shopper’s Stop /Big Bazaar
700 – 1400 800-1000
Sports Shoes ( Sportswear
Brands)
Reebok /Adidas /Puma
1200 – 2800 1800 -2200
Sports Shoes ( Sportswear
Brands)
Reebok /Adidas /Puma
1200 – 2800 1800 -2200
4Ps – Price , Place , Product, Promotion
4Ps – Price , Place , Product, Promotion
Location Median Property Value (in INR/sq feet)
Chandigarh 6500
Ludhiana 1600
Surat 2000
Lucknow 2250
Mumbai-Marine Drive-Opera House-Malabar Hill
20,00026,00038,000
Delhi- Pitampura-Ashok Vihar
-Rohini
10,00011,00012,800
4Ps – Price , Place , Product, Promotion
4Ps – Price , Place , Product, Promotion
4Ps – Price , Place , Product, Promotion
1) EVENTS
Year 2008
• Mumbai Marathon – 30,000 runners• Bangalore Marathon - 25,000 runners• Delhi Marathon - 30,000 runners
Upcoming Events
• Mumbai, Delhi and other City and Cross-Country Marathons•Commonwealth Games
•Asian Table Tennis Championship (New Delhi)
•Formula One race 2009•World Badminton Championship 2009
4Ps – Price , Place , Product, Promotion
2) Gaming
4Ps – Price , Place , Product, Promotion
Catch them young
4Ps – Price , Place , Product, Promotion
• Social marketing is cheaper, spreads faster and connects better
• Workout advice, online communities and local sports competitions
• Internationalization of Advertising Strategy, use of Local Brand Ambassadors
• Increase Nike.com/India hits
33 %
4Ps – Price , Place , Product, Promotion