NIKE – INTRODUCTION :

Nike, Inc. is a major publicly traded sportswear and equipment supplier based in the
United States. The company is headquartered in the Portland metropolitan area of Oregon,
near Beaverton. It is the world's leading supplier of athletic shoes and apparel and a major
manufacturer of sports equipment with revenue in excess of $16 billion USD in 2007. As of
2008, it employed over 30,000 people world-wide. Nike and Precision Castparts are the only
Fortune 500 companies headquartered in the state of Oregon.
The company was founded in 1962 as Blue Ribbon Sports by Bill Bowerman and Philip
Knight, and officially became Nike, Inc. in 1978. The company takes its name from Nike, the
Greek goddess of victory. Nike markets its products under its own brand as well as Nike Golf,
Nike Pro, Nike+, Air Jordan, Nike Skateboarding, Team Starter, and subsidiaries including Cole
Haan, Hurley International, Umbro and Converse. Nike also owned Bauer Hockey (later
renamed Nike Bauer) between 1995 and 2008. In addition to manufacturing sportswear and
equipment, the company operates retail stores under the name Niketown. Nike sponsors many
high profile athletes and sports teams around the world, with the highly recognized trademarks
of "Just do it" and the Swoosh logo.

MISSION: “To bring inspiration and innovation to every athlete in the world”

VISION: “Innovate for better world”

Unleashing potential through sport. In the last two years, Nike has invested $100 million
worldwide in community-based sports initiatives. By 2011, NIKE is expected to invest another
$315 million. These investments will be used to give excluded youth around the world the
chance to play because as access to sport can enhance their lives.
Nike will provide products, resurface playing fields, support community-based
programs, and help young people create their own communities. This is all will be the NIKE “Let
Me Play commitment.”
 Three core values of the company are honesty, competitiveness, and teamwork.
Despite its size, Nike operates with a minimum of hierarchy. As a result, there is a lot of
collaboration and consensus decision-making. Commonly held values are imperative in such a
matrix organization.

NIKE’S PRESENCE IN INDIA :

NIKE has been present in India from 1996 and headquartered in Bengaluru. India is a
cricket crazy nation, NIKE understood the importance of cricket and in December 2005, it tied
up with coaching schools like the BCCI's National Cricket Academy. Now NIKE became official kit
sponsor for BCCI Indian Cricket Team.

By paying Rs.196 Crores (Rs. 1.6 Bn) to BCCI, NIKE wrested the rights to become the kit
sponsor upto 2011.

The first "Just Do It" cricket ad also made its appearance during the Champions Trophy."

We want to look at what drives the passion for cricket in India. We aim to connect
emotionally with our customers," - Sanjay Gangopadhyay, marketing director, Nike India.

Target Market :

 Nike is targeting young people in India.

 Paying attention to other popular games in India.
 Partnership with the All India Football Federation in March 2006.
 Signed on India's leading football star Bhaichung Bhutia
 Entered into a deal with Bhupathi Tennis Academy

The target market of NIKE is the urban youth with the brand proposition ‘competition to
lifestyle’.

The principle consumption centres namely the metros are also a potential target market.
TYPES OF OWNERSHIP:

1. Licensing
2. Franchising
3. Own Subsidiary

MARKET SEGMENTS

Geographic segmentation
Density: Urban and semi-urban cities

Demographic segmentation

✔ Age: 16 to 35
✔ Income level: >Rs. 15,000
✔ Social class: Upper middle, lower upper and upper class
✔ Gender: Male and female

Customer Profile :

✔ Athletes
✔ Gym regulars
✔ Sports enthusiasts
✔ Brand freaks
✔ Image seekers
Segmentation, Targeting and Positioning of Nike
Nike has been in the market for a long period now. Thus it has already sought out the STP
analysis that it would use to promote and sell its products.
Market Segments:
The market segments that Nike can mainly differentiate are high, medium and low end
customers with varying income levels. Thus, Nike needs to segment on various fronts such as
economic, demographic, geographical differentiations.
Economic segmentation:
High, medium and low income levels that can be clubbed with there lifestyles of high, medium
and low end customers.
Demographic segmentation:
The company can segment the market into age, gender and class
segments.

Geographical segmentation:
The company can segment the market into segments of north, west, east and south in india.

Target Market:
The company needs to target the market as per the brand image and equity in different
markets. Thus, the company has targeted the market of high-end, high income level between
the age of 16- 55 with a pan India location. Thus the market segment it is targeting is quite
essential to differentiate itself from its competitors i.e. Reebok, Puma, Fila and local brands like
Bata.

Positioning:
The brand Nike has positioned itself in the minds of the consumer as a high-end product which
is quite costly but gives the value for money with its service, quality and designs. All this
analysis provides Nike with the customer satisfaction and thus loyalty that it needs to achieve
high volumes and profitability.
 Sportswear major Nike is way ahead in the race for leadership in sportswear. It shot to a
40 per cent share of the US sportswear market -- the biggest in the world -- which gives it a lead
in the global market, even though Adidas leads in Europe.

But the head start hasn't helped the global sports brand in the Indian market so far. And
that's despite the huge brand awareness the brand enjoyed in India even before it set up shop
here in 1996.

According to retail consultancy KSA Technopak, while Reebok has a 45 per cent share,
Adidas has 30 per cent and Nike accounts for just 25 per cent of the Rs 375-400 crore branded
sportswear market.

Indian Market Presence

5%
24%

42%
Reebok
Adidas
NIKE
Others

29%

How did the swoosh lose its sheen? The biggest hurdles for Nike in India were its entry
model and its lack of aggression. When the global sports majors entered the Indian market in
1995-96, government policy dictated that they had to have a local partner.

Nike agreed to an exclusive distribution agreement with a Delhi-based trading firm

Sierra, in early 1996; Adidas signed up a licensing agreement with Bata for retailing at its huge
network of stores; only Reebok entered India as a subsidiary with a 20 per cent equity stake by
Phoenix, a distribution and trading firm and Reebok's distribution partner.

(http://www.rediff.com/money/2004/nov/09spec.htm)
Financial Information :

 Revenue : US$19.2 billion (FY 2009)

 Operating Income : US$1.87 billion (FY 2009)
 Net Income : US$1.49 billion (FY 2009)
 Total Equity : US$8.69 billion (FY 2009)
 Employees : 30,200 (2008)
 Nike has contracted with more than 700 shops around the world and has offices located in 45
countries outside the United States. Most of the factories are located in Asia, including Indonesia,
China, Taiwan, India, Thailand, Vietnam, Pakistan, Philippines, and Malaysia.

NIKE Supply Chain :

NIKE @ BENGALURU :

Nike India launched its destination store in Bangalore. The 5,500-sq ft store, the brand's
largest in India, is completely Bluetooth-enabled. There is also a running area in the store,
where consumers can get their foot scanned. The ‘Foot Scan' is a pressure measurement
system that gives out information on the kind of feet runners have so that they can match their
foot type with the right kind of footwear. There is the ‘running space' where consumers get the
‘Nike +' experience wherein they obtain ‘instant' feedback on their workout.

  While the concept of experiential retailing is yet to find its foothold in the Indian market
globally it is creating waves especially in the fashion and lifestyle segment.
Category:  Sports Wear , Footwear
Phone:  (080) 22067664 , (080) 32485638
Address: The Forum Mall, Shop-17, Ground Floor, Hosur Main Road, 21, Koramangala ,
Bangalore- 560095, Karnataka
Landmark: In The Forum Mall
References :
1. http://www.rediff.com/money/2006/nov/14spec1.htm
2. http://www.scribd.com/33798000-Consumer-Behavior-of-Nike-Final
3. http://www.scribd.com/ 26327135-BATCH3-NIKE-Presentation