Kadee Anja Quincey

Corey Kathleen

Nike’s Reputation

• Consumer Loyalty

• Innovation

• Cutting Edge Research and Development

• The Incorporation of Technology

History

• First incarnation began in 1964 under the name “Blue Ribbon Sports”

History

• Originally, Nike focused solely on athletic 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 International, and Converse.

Our Research Objectives

• 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 Distribution

Sales Volumes for Key Items

Market Share / Market Rank • Nike has over 30% of the athletic footwear

makers market worldwide

0%

5%

10%

15%

20%

25%

30%

35%

Nike Addidas Puma New Balance Reebock Asics Skechers Converse K-Swiss Other

Running Shoe Market - 2008

0%

10%

20%

30%

40%

50%

60%

70%

Nike Asics New Balance Other

Athletic 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 Marketing

• Switched from print and television -> online

• Social Media

• Nike +, Nike Fuel Band

• Online communities

• “We want to inspire consumers to seek out our content” – Simon Pestridge, UK marking chief

Current Brand Advertising

• 2000- advertising was split from one sole agency to multiple

• Specialize in new technology

• Increase their social and digital media efforts

• Past 3 years, 40% spending decrease on television advertising

• 2010- Nike spent $800 million on “nontraditional” advertising

Current Advertising 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 conversation” -Former Nike Executive

Target Audience

Demographics % of

100

Men 52

Race: White 68.7

Graduated college 29.9

No college 38.7

Age 25-34 (non-gender specific) 25.2

Age 35-44 (non-gender specific) 22.4

Occupation: Professional and related 16.5

Occupation: Sales & Office 17.3

House Hold Income $75,000-$149,999 9.9

House Hold Income $30,000-$39,999 8.9

Census region: South 36.6

Now married 50.7

Have children 12-17 years old 26.5

Have children <6 years old 24.7

Home owners 64.7

Value of home $200,000-$499,999 25.9

Psychographic Information

• Nike consumer:

– Heath conscious

– Fitness driven

– Concerned with wellbeing

– Improve physical condition

– Active in online communities, fitness forums

– Goal driven

– Overcomes challenges

CATEGORY/COMPETITION

Five Year Growth History

• Nike’s sales have increased.

Growth Continued

• Current Stock is : $96.52 USD and is down -.2 %

Category Life Cycle Stage

• Nike is in the growth stage.

Information on Key Competitors Nike is number one in the market when looking at revenue compared to competitors.

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 Positioning

• Nike associates with high level athletes. • Nike is number one in performance. • number one in its industry of fine sporting

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, athletic

and pricey.

• Nike being high performance which equals a better experience, quality clothes and it is the top of the line sports apparel.

• Traditional 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: After the initial negative response

participants explained they

– Loved the shoe style just not the color.

– They liked the clean look of slip on.

Shoe-2 • Shoe #2: Positive. They liked leather/style.

–Clean cut and sophisticated.

– This group believed an entry level professional would wear these shoes.

Shoe-3 • Shoe #3: Older age group.

–Boring, conservative,

–Plain but they did like the color.

–Didn’t stand out.

Type of Research, Why?

• Self-administered survey

• 16 questions

• Females were filtered out

• Most efficient: time and money

• Disadvantage: lack of probing, participant cannot ask surveyor question

Research Objectives: 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 Objective 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 Objective 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 silhouette/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 Collection and Why?

• Surveymonkey.com

• Mass and individual messages containing survey link

• Facebook, emails, twitter

• Awareness email to urge participation

• Self-administered

Sampling Plan and Why?

• Non-probability sampling

• Convenient sampling

• Judgment based, gender (males only)

• 1430 N. Dearborn Ave. building lobby

Final Sample

Interesting Characteristics • Out of the total 66 responses, 47 male participants currently

own business shoes.

Interesting Characteristics Continued

Interesting Characteristics Continued

Interesting Characteristics Continued

Interesting Characteristics Continued

Interesting Characteristics Continued

• More than half our participants purchased their last business casual shoe less than a year ago.

• If Nike release a business casual shoe 3/4th of participants would expect to pay anywhere from $75-$124 dollars.

SUMMARY OF RESEARCH FINDINGS

Research Objectives Findings

Research Objective Findings

How often do you wear your business casual shoe?

Research Objectives Findings The most important trait in a business shoe

Research Objectives Findings

Research Objectives Findings

Research Objectives Findings

Survey Error

• Random sampling error

• Non-response error

• Administrative error

• Sponsorship bias

• Interviewer bias

• Prestige bias

• Threat bias

Survey: Recommendations

• Increase participation to meet or exceed quota

• Incentive for completed surveys

• Different locations for better representative sample

Nike: Recommendations

• 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 promotion