PowerPoint Presentation

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 locationsDistribution 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

WomenYoung AthletesRunners

Brand Building Assessment

Strong brand resonance

Well-established behavioral loyalty

Attitudinal attachment is positive

Powerful sense of community

Brand Growth Assessment

PEST Analysis

SWOT Analysis

StrengthsWeaknessesNumber 1 sports brand globallyStrong research and development: Innovative product designs and manufacturing processesBrand transcends past sports/athletics focus; consumers also utilize as casual fashion/lifestyle brandCustomizable offerings: NIKEiD, very easy to use, virtual customization tool for many shoe models and some bag modelsOngoing perceptions of poor labor practices (despite widely improved conditions in recent years)High, premium prices: alienates lower income consumers, especially in emerging marketsHigh promotions costs: Endorsements from athletes costed 11% of sales in FY13

OpportunitiesThreatsEmerging markets: BRIC countriesCurrently realigning portfolio and boosting promotions in ChinaCurrent, favorable industry trendsMinimalist footwearFashionable activewear for more than just exercise: athleisure wear or low performance activewearWearable technologyObtain more female athlete endorsements (currently many more males than females)Offer Nike ID for more productsCompetitionUnder Armour is relatively new and showing extremely strong growthLululemon is strong competitor in women's athletic wear marketCurrency volatility: Over half of Nikes sales come from international markets. Recent reports were hurt by strengthening of USD

Extremely high brand awareness and customer loyaltyHighly valuable logo: Swoosh is instantly recognizable around the worldMaintains and enhances iconic sub brands like Jordan basketball shoesVery strong current sales and future projections

Competition

Recommendations

Emerging markets: BRIC countriesCurrently realigning portfolio and boosting promotions in ChinaObtain more female athlete endorsements (currently many more males than females)Offer Nike ID for more productsAddress improved labor conditionsAcquire a competitor to gain market share - Lululemon

Questions?