marketing strategies nike 0c vivek
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Nokia marketingTRANSCRIPT
Manoj Kaushik (S11MMMMM00453)Sudip Kumar Das (S11MMMMM00765)Vivek Wamorkar (S11MMMMM00416)SMP-07, NIIT Imperia Bangalore Center
Jul-07-2011
Prepared and Submitted By – Ashish Kasangottuwar (S11MMMMM00405)Paresh Ashara (S11MMMMM00440)Ranjeet Shriwastva (S11MMMMM00452)
Introduction Sportswear is a niche segment of retailing
Retailing of sportswear products in India is growing due to the rise in per capita income, changing lifestyle, and consumer preferences
India has been a manufacturing hub for sports products and the number of brands sourcing from India has tremendously increased after liberalization
RNCOS research paper “Sports Wear Market in India”, anticipates the current size of the Indian sportswear industry to be worth INR365.8 Billion, which is expected to grow at a CAGR of around 33% during 2010-2014
The top sports shoe brands in India are Reebok, NIKE and Adidas
NIKE, the largest seller of athletic footwear and athletic apparel in the world with subsidiaries in over 200 countries across the world, has attempted to keep itself on the cutting edge of technology
Entry StrategyBusiness Model conceptualized leveraging outsourcing from
Japanese manufacturers for low-cost and high marginNIKE brand launched in 1972Entered Indian market in 1995 via licensing route through
Sierra GroupEstablished good distribution network and retail channels Initial days didn’t yield any success due to ignorance of
Indian consumer preferencesNIKE was wasting dollars on promoting its brand through
international sports persons, Reebok roped in top Indian cricket players to endorse its brand
Realizing the importance of localizing its brand, in December 2005, NIKE won the bid to supply official kit to the Indian cricket team
CompetitionConsumer Decision Making - Model
Need recognition Information searchEvaluation of alternativesPurchase decisionPost purchase behavior
Unique Value PropositionNIKE’s unique value proposition has been on the innovative
design, durability and quality Innovation has been a contact mantra of NIKE since its
inceptionNIKE’s 3 Value creating resources - Design/R&D for new
products Marketing – to create
and drive the demand, and
Distribution – to make certain they are getting the latest most innovative products to customers quickly
Unique Value Proposition (Contd.)
Great Value Creator –Concentration of resources, Processes, and People
It grew the depth of these critical expertise and competencies rather than grew the breath of what it did for more diverse customer types
Outstanding job of achieving –maximum profitable growth, high productivity, low cost and the flexibility to respond to a fast changing consumer
taste
Strategic PositioningNIKE is one of most respected brand in footwear industry
throughout the world. It reaches to maximum number of people through strong brand endorsement
4 P’s of Marketing - Product - range of products from sports footwear, apparel, timewear
and equipment
Promotion - Apparel sponsors of Indian Cricket Team since December 2005, Brand Ambassador in Baichung Bhutia for football
Price - positioning itself in terms of design, quality and technology, so commands premium pricing across product categories
Place - started its India business through licensing route initially and soon established itself as a subsidiary of the parent US company in 2005
Strategic Positioning
• Uses Price Leadership Strategy and Value Based Pricing• NIKE spends lot of money to promote its brand as top of the range• Customers buy the product for the NIKE “swoosh” symbol and are
willing to pay high prices regardless of actual value• Psychological pricing strategy for premium shoes (e.g. Air Max) to
convey superior quality• Price range ending with 99 e.g. INR 3999.00
• Segmented pricing strategy for the same product category/brand based on target customer (e.g. Air Max for adults and children) • Price difference could vary by one third
• Used Price skimming to gradually soften/reduce the price after the product has been in the market for some time and new products are launched
Pricing
Channels & Distribution NIKE is a highly centralized and extremely focused company Management concentrated on a few core corporate functions, such as brand
building and supply chain management A dedicated sales force sold NIKE products to retailers or, in a limited number of
countries, to distributors NIKE has relocated production of its footwear and clothing to 600+ contract
factories in 40 countries (as of 2011 list) where its third party production units employ more than 800,000 workers
From its headquarters in Beaverton, Oregon, NIKE manages a worldwide virtual company combining internal R&D functions with a low cost manufacturing strategy
NIKE has 15 contract manufacturers in India (located in Karnataka, Tamil Nadu, Andhra Pradesh, Madhya Pradesh, Uttar Pradesh, Maharashtra, Uttrakhand, and Haryana) that it has outsourced the manufacturing of its footwear and apparel
Market Expansion strategies Shared distribution channels among varied product lines lowering cost Large Size provides opportunity for more leverage against competition Efficient use of production facilities lowers cost
Market CommunicationsMission Statement
“To bring inspiration and innovation to every athlete in the world.”"If you have a body, you are an athlete." - Bill BowermanGoal
To carry on Bill Bowerman’s legacy of innovative thinking, whether to develop products that help athletes of every level of ability reach their potential, or to create business opportunities that set Nike apart from the competition and provide value for our shareholders
Logo The Nike "Swoosh" is designed by Carolyn Davidson in 1971,
represents the wing of the Greek Goddess Slogan
“Just Do It” - campaign seemed to capture the corporate philosophy of grit, determination and passion.
Market CommunicationsAdvertising and Campaigns
Just Do it - “Just Do It” succeeded in that it convinced consumers that wearing Nike for every part of your life was smart (the shoes are designed for comfort) and hip (everyone else is wearing them, you too can belong to this group)
Bleed Blue- Interactive sport marketing campaign, Bleed Blue, to support the 2011 Cricket World Cup in India
Brand Ambassadors – S Sreesanth – Cricket – Air Zoom Yorker – Cricket shoes Baichung Bhutia – football Indian Cricket Team from BCCI – Official Kit Sponsor
United By Blue – campaign post India’s win in the 2011 Cricket World Cup
Tennis – tie up with Bhupathi Tennis Academy for tournament sponsorship
Market CommunicationsAdvertising Conventional / Traditional Media
Besides TV, the traditional kinds included billboards, magazines, newspapers, radio and movie theater commercials.
Digital / New Generation MediaThe digital kinds included e-mail messages,
Internet banner ads, social networking Web sites, video games and video-sharing Web sites like YouTube.
Nike’s Promotional History1970’s
1980’s
1990’s
2000’s
Global 10 km race series participating in 25 global cities. The idea was to see how many people from around the world
would do a 10,000-meter race, all starting at the same time. Advertised as a perfect opportunity to enjoy all that the world has
to offer as well as keeping fit and healthy while raising money for charity.
Nike + Human Race
Nike + Human Race• Over 800,000 runners logged on• Participants logged about 3,000,000 miles• Created Buzz amongst the media and bloggers• Increased consumer interaction by bring runners
together under the Nike banner• Increased traffic to stores worldwide• Sold more Nike Sport Bands• Sold Human Race gear• Raised money for charity
Nike ID Campaign
Market Communications
Future The consumer goods industry is highly volatile and the sales development
is impacted by the consumer confidence and spending Growing importance of sports to fight obesity Ongoing fusion of Sports and Lifestyle Emerging markets as long-term growth drivers Word of Caution
Beware of Government action in low-wage countries for labor employment (avoid child labor)
Beware of political threats in countries they operate Aging population in western economies could lead to shift in demand from sports
athletics shoes to comfort shoes Technology – leverage for all future marketing strategies Beware of competition commission Price rises of raw materials and supply shortages
Thank You!