Vinu Vineeth Shekhar Shashank Hemanth

NIKE Curriculum Vitae

Name Founded as Nationality Age Products Nike Blue Ribbon Sports American 44* (as of 2006) Athletic Shoes, Apparels, Sports Equipment & Accessories Specialization Athletic Footwear

NIKE in US
1962 Introduced as Blue Ribbon Sports

1967
1968 1973 1974 1978

Marathon- First Running shoe

Cortez & Boston Prefontaine 1st athlete to endorse Nike Waffle Trainer Officially named as Nike,Inc

NIKE in US
1980 1985 1987 1988 No.1 athletic shoe company Signed Michael Jordon Revolution in motion- Beatles Just do it Campaign

1993

265 NBA players, 275 NFL players & 290

baseball players endorsed Nike

1994

US Soccer Team Both Men & Women

Nike - Challenges in US
Current Strategy: Major Focus on Running & Performance based Shoes Unaddressed categories such as fitness & aerobics Positioned as a masculine brand

Consequence: Reebok introduced style, fashion, comfort & for women shoe line and stole market lead New Strategy: Retain focus on performance, more attention to

basketball due to its rising popularity

Change in marketing strategy Marketing formula related to shoes, colors, clothes, logos, etc.

Mass market television advertising

NIKE in Europe
1980 1981 1987 Strategic decision to expand Globally Signed John McEnroe Realized considerable revenues & Started gaining foothold 1988 1989 1989 Focus on Repurchasing License rights 1st Centralized Print Campaign Nike Air Gospel Campaign

NIKE in Europe
1990 1991 Regained 90% control over dist. channels Revenues 6 times to that of 1987 figure; Second only to Adidas 1992 1993 Focus on Barcelona Olympics Change in Marketing Strategy; Launch of Just do it Campaign 1994 1997 Wall Ad; Team Brazil Team Nigeria and Italy

Nike - Challenges in EUROPE

Challenges: Marketing & advertising rights controlled by local distributors Distributors not motivated about selling Nike

Consequence: Inability to control growth of its brand

New Strategy: Restricted its product line to high end shoes Focused on brand building

Increased control of advertising & product

strategies Repurchasing licensing rights from its licensed

distributors

The Euro Image

Brand intimidating and aggressive

Consumers viewed company as arrogant Consumers perception of Nike as expensive, aggressive American Brand

NIKE Elsewhere
1992 Japan First Asian Country to embrace Nike products 1997 Market Leader in Japan; Expanded to other Asian countries, S. America, Africa and the Middle East 1998 Entered Chinese Market; Advertisements with Local

Athletes as Heroes
2004 Sales in China rose to 300 million USD 2008 Market Leader in China

NIKE The Asian Challenge

Recession : Impacts Excess Inventory with the distributors - more than
2 million units
Fall in stock prices Reported first earnings decrease in 13 years

Strategies
Reduction in employee base by 7 percent

Advertising budget reduced by 100 million USD

Dropped low profile endorsers & sponsorships

NIKE Labor Controversy

Unsafe working conditions in Nikes Vietnam

factories Workers forced to work for 65 hours per week Wages less than 10 USD per week No incentives for extra working hours Nikes Measures:

Comprehensive changes in corporate labor

policy Corporate Responsibility Division (CRD) Charter member of Fair Labor Association

Damage Control Mechanism

Create focus groups to assess Nikes labor practices Make changes to improve Nikes current labor conditions Create an anonymous system to protect whistleblowers Specify and inform employees of their rights and responsibilities under the Nike code of conduct Provide employees with time and money to enroll in Nikes educational programs Ensure surprise visits are a surprise Distribute a video news release promoting Nikes efforts in the global community

Evaluation
Repeat surveys at six month intervals to gauge public perception

Revisit with focus groups to record their

opinions of improvements Appointed FLA approved PWC to conduct annual audits Led to a mixed response

Swoosh Logo - Evolution

Logo developed in a hurry; yet became one of the most recognized logos

Accusation: Overuse of swoosh Reaction: Withdrawing the symbol temporarily from the new brand Nike Alpha - and then reintroducing it in a milder form.

Acquisitions

1988 Luxury shoe, handbag and accessory maker

1995 World leader in hockey equipment & skates

2002 Board sport apparel and footwear for teens

Acquisitions

2003 Basketball shoes - Retro look of consumers

2004 Low end athletic apparel

2007 Soccer & casual footware, apparel and equipment

2012 ??

Why Acquisitions?
Diverse Brand Portfolio Risk Mitigation

Additional Avenues for growth

Ability to cater to niche target groups Ability to respond to sudden change in trends Use already existing capacity and expertise Economies of scale

Contribution of Acquisitions

Brand Portfolio

NIKE

Converse

Cole Haan

Nike Range

Hurley

Umbro

Soccer Football Basketball Running Baseball

20

Nike + Nike 6.0 Woman Sportswear Golf

Snowboarding Skateboarding Swim Tennis Vision

Timing SPARK NikeBetterWorld LiveStrong NikeBiz

Endorsements - Individual
1973 Steve Prefontine

1980 John McEnroe

1985 Micheal Jordan 1994 Ronaldo 1996 Tiger Woods 1998 Maria Sharapova 2002 Roger Federer 2006 Rafael Nadal 2010 Virat Kohli

2011 Rohit Sharma

Sponsorships - Teams
1994 US Mens and Womens

Soccer Teams
1994 Brazilian Mens Soccer Team 1997 Italian Mens Soccer Team 1998 Nigerian Mens Soccer Team 2002 Manchester United 2006 Indian Cricket Team

Branding Tool
Nikes way: Celebrity Endorsements Strategy: Identify young budding talent and sign long term deals Celebrity Selection Criteria: Attractiveness Physical Appearance Credibility Expertise in the field Personality Aggression, Stylishness Building Brand Equity Attractiveness Brand Recall Credibility Brand Acceptance Personality Fit Positive Brand Associations Risks Tiger Woods, 2009 Liu Xiang, 2008 Beijing Olympics

Building Global Brand Equity

Brand Association: Excellent endorsements Brand Loyalty: Honest high quality brand Perceived Quality: Meeting consumer expectations Brand Awareness: Simple name & logo; Attractive tagline

Brand Association Map - NIKE

Brand Strength Index

Brand Strength Index
800 700 600 500 400 300 200 100 0 Nike Adidas New Balance Reebok Under Armour

*Brand Strength Index is a function of brand

awareness, brand loyalty and consumers

intentions to buy the brand in the near future As computed by SportsOneSource (2008)

Global Brand Value (2006 2011)

15000 10000 Nike 5000 0 Adidas

Nike 2006 2007 2008 2009 2010 2011 1 1 1 2 1 1

Adidas 7 7 5 5 5 6

Nike Factor 4.67 3.74 2.58 2.42 3.86 4.51

Global Brand Value = Intangible Earnings * Brand Contribution % * Brand Multiplier As computed

by MillwardBrown Brandz (2008)

Market Share (1991 2010)

40

35

30

25 Nike 20 Adidas Reebok 15

10

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19

Fashion Vs Performance
Brands shall do well to maintain their core values Fashion apparel can be designed but not at the cost of performance Nike shall always remain as a performance brand in whatever market they tap; Fashion maybe an additional attribute depending on the needs and perceptions of the target segment Nike Goddess stores

Global Strategy Change

Pre 2009 4 Regions US EMEA Americas Asia Paciffic Post 2009 6 Regions US W Europe E/C Europe Greater China Japan Emerging Markets Strategy: Moving the brand closer to the consumer

Global Constants for Nike

EKINs Passion driven employees Brand Strength Monitor Futures Endorsement Strategy World renowned sportsmen in global campaigns such as Just Do It Brand Ambassador selection process Performance Orientation Corporate Responsibility Division & Reports Sportswear design

Local Variables for Nike

Endorsement Strategy Local sportsmen for regional campaigns is acceptable Overall marketing strategy can be attuned to what the consumer wants to see / hear in that market can be direct / peripheral Fashion oriented but without compromising on performance core value shall not be compromised Regional Partnerships and Alliances with retailers like the footlocker in the US

Future Path
Strive to be part of the top 20 global brands Smartly capture the Final Frontier Europe Consolidate position in other markets and enter all emerging markets Continue with the process of innovation in the sports apparel industry Always be in sync with consumer needs and tune according to changes in consumer behavior; Keep a watch on competitors in all operating markets Acquire but do not make brand extensions out of acquisitions that would not give value back to the core brand Ensure brand is free of controversies a bigger global brand is at stake!

THANK YOU