Project Report

How does Nike

keep hold of its
market because of
its great marketing?
Submitted By: - Submitted to: -

MBA(DB) 2th SEMISTER Prof. Kranti Shingate

Name of Students Roll No.

Sachin R Sharma 20210305011

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 DECLARATION

Project Title: How does Nike keep hold of its market because of
its great marketing?

The project is submitted by Sachin Ramnivas Sharma . All sections of

the text and results, which have been obtained from other sources, are
fully referenced.

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 CERTIFICATE

This is to certify that the project work entitled

How does Nike keep hold of its market because of its
great marketing?
being submitted by Sachin Ramnivas Sharma is the
work carried out under the supervision of
Prof. Kranti Shingate at (DY PATIL
INTERNATIONAL UNIVERSITY AKURDI).
It is further certified that we have not submitted this
report to any other organization for any other degree.

Prof. Kranti Shingate

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 ACKNOWLEDGEMENT

This project reports on “How does Nike keep hold of its

market because of its great marketing?” has been
developed by Sachin Ramnivas Sharma under the
supervision and guidance of Prof. Kranti Shingate.

We thank Prof. Kranti Shingate for her pains taking effort,

which helped us throughout the working of the project. It's
our privilege to acknowledge our deepest sense of gratitude to
her for his inspiration, which has helped us immensely. The
project could not have taken its present form sans her
endeavor and numerous suggestions. We are extremely
grateful for her unstinted support and encouragement in the
preparation of this project.

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 Contents

Topic Page No.

Introduction
6
Nike Products 7

SWOT 8-9
Conclusion 10
Bibliography 11

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 INTRODUCTION

Nike, Inc. is a major publicly trade sportswear and equipment supplier based in
the United States. The company is headquartered near Beaverton, Oregon,
which is part of the Portland metropolitan area. It is the world's leading
supplier of athletic shoes and apparel.

'Iƒ you have a body, you are an athlete' - Bill Bowerman

When Nike co-founder Bill Bowerman made this observation many years ago,
he was defining how he viewed the endless possibilities for human potential in
sports. He set the tone and direction for a young company created in 1972,
called Nike, and today those same words inspire a new generation of Nike
employees.

Their goal is to carry on his legacy of innovative thinking, whether to develop

products that help athletes of every level of abil ity reach their potential, or to
create business opportunities that set Nike apart from the competition and
provide value for our shareholders.

It started with a handshake between two visionary Oregonians - Bowerman and

his University of Oregon runner Phil Knight. They and the people they hired
evolved and grew the company that became Nike from a US -based footwear
distributor to a global marketer of athletic footwear, apparel and equipment that
is unrivaled in the world.

Along the way, Nike has established a strong Brand Portfolio with
several wholly-owned subsidiaries including Cole Haan, Converse Inc.,
Hurley International LLC, NIKE Golf, and Umbro Ltd.

Nike world headquarters is located near Beaverton, Oregon, a suburb of

Portland. So while the Pacific Northwest is the birthplace to Nike, today
operate in more than 160 countries around the globe. Through their suppliers,
shippers, retailers and other service providers, nike directly or indirectly
employ nearly one million people.

That includes more than 30,000 Nike employees across six continents, each of
whom make their own contribution to fulfill nike mission statement: to bring
inspiration and innovation to every athlete* in the world. For the fiscal year
ending May 31, 2009, nike reported record revenues of $19.2 billion, a 3
percent increase over last year's earnings
Nike Products
Nike produces a wide range of sports equipment. Their first products were
track running shoes. They currently also make shoes, jerseys, shorts, base
layers etc. for a wide range of sports including track and field, baseball, ice

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hockey, tennis, association football (soccer), lacrosse, basketball and cricket.
Nike Air Max is a line of shoes first released by Nike, Inc. in 1987. The most
recent additions to their line are the Nike 6.0, Nike NYX, and Nike SB shoes,
designed for skateboarding. Nike has recently introduced cricket shoes, called
Air Zoom Yorker, designed to be 30% lighter than their competitors'. In 2008,
Nike introduced the Air Jordan XX3, a high-performance basketball shoe
designed with the environment in mind.

Nike sells an assortment of products, including shoes and apparel for sports
activities like association football, basketball, running, combat sports, tennis,
American football, athletics, golf and cross training for men, women, and
children. Nike also sells shoes for outdoor activities such as tennis, golf,
skateboarding, association football, baseball, American football, cycling,
volleyball, wrestling, cheerleading, aquatic activities, auto racing and other
athletic and recreational uses. Nike is well known and popular in youth
culture, chav culture and hip hop culture as they supply urban fashion
clothing. Nike recently teamed up with Apple Inc. to produce the Nike+
product which monitors a runner's performance via a radio device in the shoe
which links to the iPod nano. While the product generates useful statistics, it
has been criticized by researchers who were able to identify users' RFID
devices from 60 feet (18 m) away using small, concealable intelligence
motes in a wireless sensor network.

In 2004, they launched the SPARQ Training Program/Division.

Some of Nike's newest shoes contain Flywire and Lunarlite Foam. These are
materials used to reduce the weight of many types of shoes.

The 2010 Nike Pro Combat jersey collection will be worn by Miami, Alabama,
Boise State, Florida, Ohio State, Oregon State, TCU, Virginia Tech, West
Virginia and Pittsburgh. Teams will wear these jerseys in key match ups as
well as any time the athletic department deems necessary.

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 is hesitant to disclose information
about the contract companies it works with. However, due to harsh criticism
from some organizations like CorpWatch, Nike has disclosed information
about its contract factories in its Corporate Governance Report.

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SWOT ANALYSIS OF NIKE

Strengths.

• Nike is a very competitive organization. Phil Knight (Founder and CEO)

is often quoted as saying that 'Business is war without bullets.' Nike has
a healthy dislike of is competitors. At the Atlanta Olympics, Reebok
went to the expense of sponsoring the games. Nike did not. However
Nike sponsored the top athletes and gained valuable coverage.
• Nike has no factories. It does not tie up cash in buildings and
manufacturing workers. This makes a very lean organization. Nike is
strong at research and development, as is evidenced by its evolving and
innovative product range. They then manufacture wherever they can
produce high quality product at the lowest possible price. If prices rise,
and products can be made more cheaply elsewhere (to the same or
better specification), Nike will move production.
• Nike is a global brand. It is the number one sports brand in the World.
Its famous 'Swoosh' is instantly recognisable, and Phil Knight even has
it tattooed on his ankle.

Weaknesses.

• The organization does have a diversified range of sports products.

However, the income of the business is still heavily dependent upon
its share of the footwear market. This may leave it vulnerable if for
any reason its market share erodes.
• The retail sector is very price sensitive. Nike does have its own retailer
in Nike Town. However, most of its income is derived from selling into
retailers. Retailers tend to offer a very similar experience to the
consumer. Can you tell one sports retailer from another? So margins
tend to get squeezed as retailers try to pass some of the low price
competition pressure onto Nike.

Opportunities.

• Product development offers Nike many opportunities. The brand is

fiercely defended by its owners whom truly believe that Nike is not
a fashion brand. However, like it or not, consumers that wear Nike
product do not always buy it to participate in sport. Some would
argue that in youth culture especially, Nike is a fashion brand. This
creates its own opportunities, since product could become
unfashionable before it wears out i.e. consumers need to replace
shoes.
• There is also the opportunity to develop products such as sport
wear, sunglasses and jewellery. Such high value items do tend to

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 have associated with them, high profits.
• The business could also be developed internationally, building upon its
strong global brand recognition. There are many markets that have the
disposable income to spend on high value sports goods. For example,
emerging markets such as China and India have a new richer generation
of consumers. There are also global marketing events that can be
utilised to support the brand such as the World Cup (soccer) and The
Olympics.

Threats.

• Nike is exposed to the international nature of trade. It buys and sells

in different currencies and so costs and margins are not stable over
long periods of time. Such an exposure could mean that Nike may be
manufacturing and/or selling at a loss. This is an issue that faces all
global brands.
• The market for sports shoes and garments is very competitive. The
model developed by Phil Knight in his Stamford Business School days
(high value branded product manufactured at a low cost) is now
commonly used and to an extent is no longer a basis for sustainable
competitive advantage. Competitors are developing alternative brand s
to take away Nike's market share.
• As discussed above in weaknesses, the retail sector is becoming price
competitive. This ultimately means that consumers are shopping around
for a better deal. So if one store charges a price for a pair of sports shoes,
the consumer could go to the store along the street to compare prices for
the exactly the same item, and buy the cheaper of the two. Such
consumer price sensitivity is a potential external threat to Nike.

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 Conclusion

By catering to the target market's specific needs in fields of sports, fashion, and
lifestyle, Nike will be able to widen its consumer base and generate more
revenue. This is done by closely monitoring the implementation of the proposed
marketing and development strategies. The gap between the marketing work
done with the goals expected is minimal .

Customer satisfaction with respect to quality and usage is the highest which in
turn boosts the morale of the executives working hard with their marketing
strategies.

Nike has always changed its marketing strategies appropriately by absorbing

the global and national changes in any region and hence coming out to meet
their individual needs.

Thus boosting the faith on the brand “NIKE”.

These all when combined becomes the USP of Nike and holds up its market
share globally in proportion.

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 BIBLIOGRAPHY

Websites:

➢ www.nike.com
➢ www.newsnike.com
➢ www.google.com
➢ www.webcrawler.com

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THANK YOU

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