Download - BUS 467 - Nike Brand Audit Presentation
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
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
Brand Building Assessment
● Strong brand resonance
● Well-established behavioral loyalty
● Attitudinal attachment is positive
● Powerful sense of community
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
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