Overview of Nike, Competitors, Customers, 4P's, STP, Value Proposition

1. NIKE
Presented By:
Saksham Chawla(20DM256)
Yaman Mittal(20DM250)
Vikas Dagar(20DM244)
Tarannum Aurora(20DM226)
Vaishali Agarwal(20DM238)
Utkarsh Singhal(20DM232)

2. COMPANY
OVERVIEW

3. Company History
o Founded by University of Oregon track
athlete Phil Knight and his coach Bill Bowerman in
January 1964.
o Original name was Blue Ribbon Sports (BRS).
o Operated as a distributor for Japanese shoemaker
Onitsuka Tiger.
o In 1966, BRS opened its first retail store at
California and renamed NIKE in 1971.
o In 1974, the company NIKE registered with the U.S.
Patent and Trademark Office.
o Afterwards Nike had made itself as a leading brand
in U.S. athletic market and covered half of its
market share.

4. Mission & Vision Statement
 Mission Statement
‘To bring inspiration and innovation to every
athlete in the world
If you have a body, you are an athlete.'
 Vision Statement
‘The Nike goal is to carry on his legacy of
innovative thinking, whether to develop products
that help athletes of every level of ability to reach
their potential, or to create business opportunities
that set Nike apart from the competition and
provide value for the shareholders.’

5. Current Status
o Today Nike products available
throughout the world.
o The company 4th Quarter Revenue in
2019-20 was $6.3 billion
o CEO - John Donahoe.
o Subsidiary- Converse Inc.
o Nike has obtained a strong name or title
in the market of running, basketball and
football categories in North America
and Central and Eastern Europe.

6. Source: Statista

7. Future Orientation
o Opening a massive new innovation center at its world
headquarters.
o Planning to expand Jordan Brand outside basketball and double
its sales.
o Trying to ignite female sneaker culture.
o Collaborating with Dreamworks to change the way it designs
products.

8. SITUATION ANALYSIS

10. Customers
o Nike annual footwear sales total is $90
million. In total, the global market share for
Nike is expected to be over 27% by 2020.
o Nike primarily targets consumers who are
between 15-50 years of age.
o The company caters to both men and
women athletes equally, and is placing an
increasing focus on teens to build long-
term brand loyalty
o Women are an important part of Nike’s
target market. In fiscal 2019, the Women’s
Training shoe segment grew faster than the
Men’s Training segment.

11. o No single customer segment accounted for more
than 10% of Nike’s overall sales in the last year,
proving that the company has a very diversified
market.
o The goal is to equip teens under the age of 20
with athletic spirit, especially in sports like
football and basketball.
o As a brand with a huge number of followers and
fans, Nike is very ambitious about interaction with
its customers.
o At the heart of its customer relationships
management, lies creation of a community, or in
other words, the lifestyle for the brand’s
customers, hereby figuring out their needs it tries
to help them be better at what they love to do.

12. Consumer Behavior

13. Fig. 1
Fig. 4Fig. 3
Fig. 2

14. Fig. 6
Fig. 5
Fig. 7 Fig. 8

15. MARKET STRUCTURE
• The Footwear Industry is a mature industry; it consists of giant
players like Nike, Adidas, Asics, Reebok, Puma etc.
• Nike is the market leader in the global footwear market with a market
share of 27.4%
• The competition in this industry is mostly non-price mainly for the
established legendary players like Nike and Adidas.
• Adidas is the market challenger followed by Asics.

16. COMPETITORS
CORE COMPETENCY
Nike’s core competency exists in their unique market strategy and
innovative products which are very hard to Imitate by
competitors.
STRATEGIC GROUPS
o Adidas
o Puma
o Under armor
o Reebok
o New Balance

17. ADIDAS - Challenger
Marketing strategy of Adidas:
o Adidas strives to penetrate Nike's market. They use
subsequent digitalization as the
key part of their marketing strategy.
o Speed: Being fast to react to consumer's demand enables
it to grow faster.
o Cities: Adidas is trying to improve its sales in major cities
to compete with Nike
o Open sources : They let consumers enjoy higher
participation in the products the company makes.

18. COMPETITION OF TOP
BRANDS (Nike vs Adidas) At the top of the sneaker game, two
iconic brands are facing off:​
o Kanye West’s Yeezy line with
adidas and Nike’s Air Jordans.
o The greatest current rapper
challenges the shoe made for
the greatest basketball player of
all time, Michael Jordan.
o Kanye seems certain he can
overtake the Jordan brand. But
Jordans outsold Adidas.

19. INDIAN MARKETS
 India has traditionally seen lower levels of interest in activities that constitute Nike’s main product
portfolio.
 The premium-brand sportswear market in India is estimated to be near $1 billion, 75% of which is
controlled by Reebok and Adidas. Nike’s market share is closer to 15% to 20%, India accounts for 1% of
Nike’s total sales.
 MARKET LEADER IN INDIA - REEBOK
o A versatile shoe at a decent price point.
o Reebok holds a 46% market share in India.
o Reebok's main advantage has been that it understood the Indian consumer very well.
o When Reebok came to India, all that the consumers wanted was an international brand of footwear.
o Tie-ups with cricketers like Rahul Dravid, Yuvraj Singh and Harbhajan Singh.
o Despite several challenges ahead in the Indian market it is still the market leader.

20. Source: Statista
Source: Creately

21. PORTERS 5 FORCES
o Competitive rivalry is high as the competitors have a
stronger hold in the market.
o Bargaining power of supplier is low.
o Bargaining power of buyer is moderate to low.
o Threat of new entrants is low.
o Threat of substitutes is moderate to high

24. SEGMENTATION, TARGETING & POSITIONING
Segmentation
Market segmentation is the
process of dividing up mass
markets into different groups of
similar needs and wants.

25. o Psychographic segmentation divides markets according to peoples’ lifestyle,
their social or personality characteristics.
o Behavioral segmentation divides consumers according to behavior patterns as
they interact with a company.
Nike:
o Sports or athletic oriented
o Active lifestyle oriented
o Fashion oriented
Psychographic and Behavioral Segmentation

26. Demographic Segmentation:
Segmentation according to demography is based on consumer's demographic variables
such as age, income, family size, socio-economic status, etc.
o Both genders between 15-50.
o Upper-middle income class and upper income class population.
Geographic segmentation :
Geographic segmentation divides a market by location so marketers can better serve
customers in a particular area.
o Geographic segmentation to market nations differently.
o Products to suit the regional customer’s needs.

27. Targeting
Targeting refers to grouping of potential customers
to whom a company wants to sell its products and
services.
Nike's Targeting :
• Relatively Niche market to serve
• People who regularly exercise
• Youngsters seeking funky and trendy sneakers

28. Positioning
After segmentation and targeting, next step for any company is to position
its offerings so the target markets recognizes its distinctive offerings.
Nike's Positioning :
• Inspirational and innovative brand .
• Slogan “just do it” .
• Swoosh logo.
• Perfect shoe for every sport.

29. MARKETING MIX STRATEGY
• 4 P's of Marketing

30. Product
o Nike provide wide variety of products including
apparel, shoes and equipment.
o Shoes are the most popular products from Nike
Inc. The business gradually adds more product
lines in this category
o Nike has collaborated with apple to design and
sell smart products which have capability of
connect to iPod nano bringing out a
combination of products.

31. Price
o The pricing is based on the basis of
target customers as a premium
segment.(Nike brand commands a
high premium)
o Pricing strategy makes use of vertical
integration by participating in
different channel levels.
o Cost based/ Value based pricing-Nike
has become so well known that most
people will pay more for quality of
the product.

32. Place
Nike uses these channels to sells its wide variety of the
products to its consumers:
o approximately 150 outlets of Nike spread all over India.
o Consumers can buy Nike products even without physically
visiting their stores through Nike's online stores.
o Nike's website is really customer friendly and easy to use
which attracts a lot of new customers.
o Nike also sells its products through online shopping sites
like Myntra, Ajio, Flip Kart etc.
o Nike Factory outlets are the stores through which
manufacturer sells their stock directly to the customers.
o To attract new customers Nike offers its products through
various multi brand stores like Lifestyle and Shopper Stop.

33. Promotion
o Nike uses popular athletes,
commercials, celebrities
or billboards to promote its
product.
o Major chunk of marketing is
done in sports leagues
by sponsorship or providing
the players with official kits
o Nike’s brand images, the
Nike name and the
trademark swoosh; make it
one of the most recognizable
brands in the world.

34. VALUE
PROPOSITION
Innovative and Aesthetic Designs
Quality Product
Customization
Brand/Status

36. Conclusion-In a nut shell, we performed
different types of analysis on Nike and came to the
conclusion that Nike holds a powerful share of market
and taps a niche market and deploys a rigorous pricing
policy but at the same time makes sure that it delivers
quality product and invests in customer value
relationship.
Suggestion- The market research conducted by
us showed that 52% people find the product overpriced,
to tackle this problem we recommend in order to
expand into a bigger market, Nike should reduce the
price of its products but at the same time this action will
reduce its brand value. Therefore, Nike can launch a
new line of products that are comparatively low priced
through its subsidiary. Taking this route, Nike can expand
its overall market base while retaining its brand value.