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Pages
7. Conclusions 20
8. Appendices 21 - 41
- Product & Price
- Place
- The improvement of Nike
- Save the environment
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1. Introduction
In the sports market, there are many brands in it, such as Nike, Adidas and Reebok
and so on. But most people choose Nike this brand, the good example is the NBA,
you can see all the basketball team clothes is wear Nike product. And other example is
the football team; you can see Nike is sponsor many team such as Arsenal,
Manchester United and Barcelona and so on. The football market is belong to Adidas
at the beginning, but now Nike is also enter the football market, maybe
“monopolization” the hole football market. Beside the sport market, we also can see
Nike is successful too, such as in the street, we are so easy to find a person who wear
Nike shoe, even boy or girl.
Beside football and basketball, Nike is also have many product, such as all type of
sport shoe, football, basketball, bags, many product about sport Nike also have.
Recent year, Nike is preparing to enter the fashion market; you can see Nike is always
crossover with another fashion brand such as I.T., Bape. Nike get the market share in
the sport product, and now they enter the fashion market is get the market share
bigger and bigger, but the most important is Nike want to disperse the risk, so that
Nike want to enter the fashion market.
On the television, we can see many sports star to do the spokesman, such as David
Beckham for Adidas, Micheal Jordan, Fabregas, Sergio Ramos for Nike. In 2002,
Lebron James sign a big contract with Nike, the price is more than 1 billion. This
contract is astonish the world. You may ask why Nike will offer the big contract to
Lebron James. Why Nike is believes him can bring the market profit to the company?
In this Project, we will confer Nike how to use the market tactic successfully, SWOT
Analysis of the product, Target Market, Marketing Strategy. After you see the project,
you may identify Nike is one of the successful companies in the world.
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2. The Company
Vision:
The vision of Nike is “If you have a body, you are an athlete”. It means everybody
can do anything, don’t just think but do it.
Mission:
- Purpose of Nike:
Nike’s goal is to carry on Bill Bowerman legacy of innovative thinking, to
develop products that help athletes of every level of ability to explore their
potentials, or to create business opportunities that set Nike apart from the
competitors and to provide value for its shareholders.
- Other products:
Watch
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Water vessel
Glasses
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3. SWOT Analysis of the product
S - Strengths
Nike has a big competitor, which is Adidas. Adidas and Nike are also selling sports
goods, sportswear, and sports shoes. How can Nike lead the sports market for many
years? Nike owns advantageous position in the market of sportswear as it stressed on
excellent materials to protect our legs. Nike keeps on developing running shoes for
many years, that means Nike owns the best skills and tactics to produce the running
shoe. Meanwhile, Nike also aims at diversifying its products, such as Nike Golf and
basketball. Nike is a well-known brand name; it is equipped with much international
business experiences. Nike also possesses the skills of so-called “Air mix”. Such skill
is not yet known to others. Nike materials nylon is 100% recycled polyester, it is good
for environmental protection.
W – Weakness
Sole ownership of Nike: risk of bearing all loss.
O - Opportunities
Nike is a clever company. Why do I say that? It is because Nike can find many
opportunities to earn money. In 2008, there is Beijing Olympics. Nike took this
chance of earning money. Nike sponsored the sportsman with many player shoes,
clothes and so on. Nike used the Olympic games to promote their products since
many people would enjoyed watching the Olympic games. Also Nike sponsored the
English and Spanish football leagues. England is one the best football leagues in the
world. Many people will watch this football league in which the brand name of
“Nike” will draw the attention of the spectators. In addition, the NBA market is
another success to Nike because Nike monopolizes the whole NBA market. All the
team players are dressed in Nike sport wears. The youth feel that sporty products are
stylish and thus are willing to buy. Developing countries are growing and they are
able to buy high-valued goods.
T – Threats
Complaint about employing children and low-paid staff in China. Complaints about
the adverse impact on environment. Short product life cycle. Low customer royalty.
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4. Target Market
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5. Current Marketing Mix Strategy
-Product Strategy
Three levels
Core benefit: First, the core benefit of Nike is to let customers unleash their potential
energy when they are doing exercises. In addition, another core benefit is to let
customers do exercises under a safety environment.
Actual product: Nike is a fashionable brand nowadays. Many people wish to collect
the product. Also, they used to show off.
Augmented product: Nike offers some discounts to the old customers
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Brand extension
-Nike was already get into the market of fashion, body soap and watches.
Multiband
-Cons, Cole Haan, Umbro
Packaging: Nike uses a plain packing method. It just put a tick label on the pocket or
shoebox. Also, this can bring customer to an idea that you are right and
be a promotion.
Labeling: The label of Nike is a tick. The uses of the tick are identify, promotes and
tell customer that they do the right thing or their products are good
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Product life cycle
Nike tennis classic
Product development: In 1980’s, Nike begins to develop this product. It put
many resources to test and investigate this product. The cost is going up.
Introduction: It starts to produce a large number and put many promotions
to attract wholesaling. In this period, the product starts to sale on the market
and have lower profit.
Growth: The profit is going up to the maximum. It tries to upgrade the
product and put more promotion.
Maturity Stage: In this stage, it reduces the price since there are many
competitors. Many customers buy the product. But, the profit is going to
decrease because it put many advertisements on the product.
Decline Stage: The profit and the sales are decreasing. Many new product
replace the product.
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-Pricing Strategy
Three Pricing Approaches
Value-Based Approach: Nike has used the value-based approach. The price is
considered along with the other marketing mix variables. For
example, the set of air is using this approach. It is because it
obtains the patent of this unique technology. Therefore, it has
a value of customer. The average price of basketball shoes is
$599-$1,199
Competition-Based Approach: Nike has using the going- rate pricing. The shoes of
fashion are using the method. It uses the basic price on
what competitors charge for their products.
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-Distribution Strategy
Levels of Distribution Intensity
Selective Distribution: Nike is using selective distribution strategy. The products of
Nike are shopping goods. Also, it has higher professional. It
screens dealers to eliminate all but a few in any single area,
such as Marathon or Giga Sport.
Wholesaling: The wholesaling of Nike is BELLE.
Retailing:
1) Ownership
-Nike distributes its products to some chain stores. For example, Marathon,
Gigasports and Royal Sports House.
2) Product Line
-Moreover, it distributes the sport fashion of product line to some specialty stores.
For example, the Nike Sportswear Store.
3) Relative Prices
-There are some warehouse club in Hong Kong, such as kwun tong. It offers a
deep discount to the customers.
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-Promotion Strategy
1) Advertising
In 2008 Nike aims to the Olympic Game, which makes many advertising
about the sportsman. They believe the Olympic game can make the people to
focus on sports. When the people focus on sports and see their advertising,
who will stimuli and buy Nike product.
Nike makes the advertising into the television, website, newspaper, and
magazine.
2) Sale Promotion
Nike uses many sale promotions, which sale the product cheaper. If the
consumers buy a quota of product, Nike will free of the translation fee.
3) Public Relations
Nike also uses the PR to build good relations with the people. They sponsor the
sportsman, and use their name to develop a new product line, for example,
NBA sportsman - Lebron James. James also is the spokesperson of Nike.
Nike also sponsors the sport race. For example, Nike sponsors the 2008 Olympic
Game. This action can help Nike to build up a good sport image.
Nike Hong Kong 10K Challenge 08 is a running race, which attract a many
running sportsmen/sportswomen to join the game. In this case, Nike can build
up a good running image.
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4) Personal Selling
Nike usually uses the personal selling. In the Nike shop, the sales always promote the
product to consumer.
i) Push or Pull Strategy
Nike is a famous international company and has higher brand equity. They can
use the pull strategy, because they use the heavily promotion to attract the
consumer.
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6. Proposed Marketing Mix Strategy
- Product strategy
In 2009 the fashion become force on environmental, so Nike also force on
environmental. They will use the 100% recycled polyester to do all the products.
The 100% recycled polyester is not easy to bread, and also can recycling when
customers throw it. Nike will use the Considered Design – can reduce the materiel,
Nike will throw.
Because of the 2008 Olympic Games in Beijing, people feel interested in the sport
game. So that in 2009 Nike will force on this group of this people. Nike will develop
some training product for the new sport players. Nike can create some sports teaching
DVD, which can help the new sports player to play the sports game. Not only the
2008 Olympic Games can attract the new sport players, but also the 2010 World Cup
can attract the people to buy the football products. So Nike must launch more “track
and field” football product to cater to 2010 World Cup.
People forces on their health, so that I think Nike must develop some health food or
drink. Nike can use strategic alliances to cooperate with some beverage companies to
produce some sports drinks or food, to attract more peoples, e.g. Coco-Cola and .
Nowadays, many teenagers are force on Nike product. The teenager hope to be the
special one, so I think Nike can provide the fashion designer service. The service can
help the teenagers to design their image, who use the Nike products. Nike can also
help the customers to change the color of their product.
In several years, people focus on Nike old product. Because of the fashion of those
years are classic products. Nike may provide the classic products in 2009. I think
many teenagers will buy the classic products.
Nike should improve the development and technical, to make the products become
more comfortable and protective.
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- Pricing strategy
In customer views, Nike should higher price than other sportswear company, because
Nike can keep the good quality in a range. So people will to use more money to buy
Nike products.
In my opinion, Nike must keep the product quality and addition the selling price.
Because of the strange of Nike is the quality. If Nike does not keep the quality, no
people will buy their product on high price. Nike need to addition the selling price,
which can provide a lager capital to keep the quality and development. Because of the
cost of development and keep the quality is very high.
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- Distribution strategy
Hong Kong
In 2009, I think Nike will build the e-shop of Hong Kong. Because the internet
become safe and the customers will see the product of e-shop is cheaper than the
shop. So people will use the e-shop to buy the products.
International
In 2009 Nike not only focused on U.S and China, but also focused on Russia and
Brazil. Because in 2008 Nike saw the market in China, Russia and Brazil market
grow.
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- Promotion strategy
Because of the next year products, Nike should create more advertisement about
training products and football products. Also, Nike should sponsor more football
teams and football stars. Nike should increase more difference media of advertisement
and increase broadcast numbers. Nike also can create some sports teaching TV
programs, which can attract more new sports players to watch the programs.
Because of the environmental pretention policy, Nike should not use many papers to
promote their products. If they need to use paper, they can use the reusing papers to
print the advertising. They can use the internet to promote their products. For
example, they can make banner ads into the Xanga web site – is a famous wed site of
teenagers.
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Conclusion
As a result, we find that Nike is the leader of sports market. Firstly, Nike can catch the
chance, for example the Beijing Olympic Games and NBA market. Secondly, Nike tries
the best on improving materials, technologies and quality. In addition, Nike holds on
it’s vision.
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7. Appendices
Product & Price
Nike has different lines of products, which are specifically designed for different
kinds of sports or users. They are “Running”, “Basketball”, “Football”, “Woman”,
“Training”.
“Running Shoes”
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Name: Air Pegasus +25 Price: $659
22
Name: Air Max Moto +6 Price: $699
“Basketball Shoes”
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Name: Air Force 25 Low Price: $699
24
Name: Zoom LeBron James Ambassador Price: $699
“Football Shoes”
25
Name: Total90 Laser II FG Price: $1199
26
Name: Tiempo Super Ligera K-HE Price: $1199
“Training Shoes”
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Name: Air Zoom Vapor V Price: $819
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Name: Nike Air Troupe Mid Price: $649
“Women Shoes”
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Name: Air Max Adrenaline Price: $659
30
Name: Air Rejuven8 Mule Price: $449
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Name: Tennis Classic SI Price: $479
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Place
Nike Central
Shop 38-40, Manning House, 38-40 Queen’s Road Central, Central, H.K.
Nike Gateway
Shop 2612, 2/F, The Gateway, Harbour City, Tsim Sha Tsui, Kowloon.
Nike Silvercord
Shop G04-05, 30 Canton Road, Tsim Sha Tsui, Kowloon.
Nike Sogo
Shop 402, 4/F, Sogo Department Store, 555 Hennessy Road, Causeway Bay, H.K
Nike Sportswear Store
G/F, 7 Pak Sha Road, Causeway Bay, H.K.
Apex
G/F, 42 Granville Road, Tsim Sha Tsui, Kowloon.
Gigasports
Shop 1044-45, 1/F, Metro City plaza 2, Tseung Kwan O.
Marathon Sports
Shop 2118, 2/F, Sunshine City, Ma On Shan, N.T.
N Sports
G/F, 339 Shui Hang Mei Street, Macau.
New Youth
Shop G13, Telford Plaza, Kowloon Bay.
New Youth
Shop 129, 1/F, East Point City, Tseung Kwan O.
New Youth
Shop 9-10 & 73-74, G/F, City Landmark I, 68 Chung On Street, Tsuen Wan.
New Youth
G/F, 67 Fa Yuen Street, Mong Kok, Kowloon.
Nike Basketball (Wan Kee)
G/F, 68 Fa Yuen Street, Mong Kok, Kowloon.
Royal Sporting House
Shop 602, Times Square, Causeway Bay.
Sportshouse
Shop 9, 2/F, APM, Millennium City 5, 418 Kwun Tong Road, Kowloon.
Sportshouse
Shop 3209, 3/F, Tuen Mun Town Plaza, N.T.
Sportshouse
Shop 538-539, New Town Plaza Phase 1, Sha Tin, N.T.
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Sportshouse
Shop 276, 2/F, Zone B, Tai Po Mega Mall, N.T.
Sportshouse
Shop 18A, G/F, Fashion World, Site 2, Whampoa Garden, Hung Hom, Kowloon
Toronto
Shop 06-07, 7/F, Langham Place, Argyle Street, Mong Kok, Kowloon.
Toronto
G/F, 76A Fa Yuen Street, Mong Kok, Kowloon.
Toronto
Shop 118, Metroplaza, Kwai Fong.
Wan Kee
Shop 2-08, Sogo Department Store, 12 Salisbury Road, Tsim Sha Tsui.
Wan Kee
114, Castle Peak Road–Yuen Long, Yuen Long, N.T.
Gigasports
Shop 1, 8/F, Megabox, 38 Wang Chiu Road, Kowloon Bay
Sport Corners
Shop 387-8, 3/F, Grand Century Place, Mong Kok, Kowloon
Toronto
G/F, 80A Nelson Street, Mong Kok, Kowloon
Sportshouse
Shop 18, G/F, 61-65 Chatham Road South, Tsim Sha Tsui, Kowloon.
Toronto
Shop A1, 78 Fa Yuen Street, Mong Kok, Kowloon.
Toronto
1/F, 76A Fa Yuen Street, Mong Kok, Kowloon.
8five2
Room 3, 2/F, United Success Commercial Centre, 506-508 Jaffe Road, Causeway
Bay, H.K.
Catalog
Shop L1-12, Level 1, APM, Millennium City 5, 418 Kwun Tong Road, Kwun Tong,
Kowloon.
Catalog
Shop 513, New Town Plaza Phase 1, Sha Tin.
Catalog
Shop 2111-2112, Harbour City, Tsim Sha Tsui.
Catalog
Shop 372, 3/F, Grand Century Place, Mong Kok, Kowloon.
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Catalog
Shop 607-608, Times Square, Causeway Bay
Catalog
Shop 29, Basement, Festival Walk, Kowloon Tong.
Catalog
Shop 405, 4/F, CityPlaza 1, H.K.
Catalog
Shop 129 & 132, G/F, New Jade Garden Shopping Arcade, Chai Wan
Catalog
Shop 03-05, Level 6, Langham Place, Mong Kok.
Catalog
Shop G12, Telford Plaza, Kowloon Bay
Catalog
Shop 312-315, Metroplaza, Kwai Fong.
Catalog
Shop 157, 1/F, Maritime Square, Tsing Yi
Catalog
Shop 3213, 3/F, Tuen Mun Town Plaza, NT.
Catalog
Shop 021-023, G/F, Yuen Long Plaza, N.T.
Catalog
Shop 560, 2/F, Zone C, Tai Po Mega Mall, N.T.
Catalog
Shop 214, Metropolis Plaza, Sheung Shui.
Catalog
Shop 151-152A, 1/F, East Point City, Tseung Kwan O.
CPU
Shop 529-530, 5/F, New Town Plaza, Sha Tin, N.T.
CPU
Shop 19, G/F, 61-65 Chatham Road South, Tsim Sha Tsui, Kowloon.
CPU
Shop G23-25, G/F, Silvercord Centre, 30 Canton Road, Tsim Sha Tsui.
CPU
Shop 58, 58A, 60, 60A, G/F, 60 Granville Road, Tsim Sha Tsui, Kowloon.
CPU
Shop A, 2/F, Windsor House, 311 Gloucester Road, Causeway Bay
CPU
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67A Shantung Street, Mong Kok, Kowloon.
D-mop
Shop UC21, Millennium City 5, 418 Kwun Tong Road.
D-mop
Shop 411, 4/F, New Town Plaza, Sha Tin.
D-mop
Shop B, 8 Kingston Street, Causeway Bay
D-mop
Shop B03, Basement 1, Lippo Sun Plaza, 28 Canton Road, Tsim Sha Tsui.
D-mop
Shop 9, 2/F, Silvercord Centre, 30 Canton Road, Tsim Sha Tsui.
D-mop
Shop 301, Times Square, 1 Matheson Street, Causeway Bay.
Dahood
G/F, Tak Sing Alliance Building, 115 Chatham Road South, Tsim Sha Tsui, Kowloon.
Dahood
Shop 06, Level 5, Langham Place, 8 Argyle Street, Mong Kok.
Dahood
G/F, 60 Fa Yuen Street, Mong Kok.
Double Park
Shop 37, 39-42, Basement 1, Silvercord Cetnre, Tsim Sha Tsui.
double-park
Shop 631, Times Square, 1 Matheson Street, Causeway Bay, H.K.
double-park
Shop 360, Grand Century Place, Mong Kok, Kowloon.
double-park
Shop 1090, 1/F, Metro City plaza 2, Tseung Kwan O, Kowloon.
double-park
Shop 12-15, Level 5, Langham Place, 8 Argyle Street, Mong Kok, Kowloon.
double-park
Shop 3210-3211, Tuen Mun Town Plaza, 1 Tuen Shun Street, Tuen Mun, N.T.
Evergreen
9/f, Capital Commercial Building, 26 Leighton Road, Causeway Bay, H.K.
Exit
Basement, 73-75 Chatham Road South, Tsim Sha Tsui.
Fingercroxx
Shop 29, Silvercord Centre, 30 Canton Road, Tsim Sha Tsui, Kowloon.
Fingercroxx
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Shop UC-15, 17, 19, APM, Millennium City 5, 418 Kwun Tong Road, Kwun Tong,
Kowloon.
Fingercroxx
Shop 201-211, Yuen Long Plaza, Yuen Long, N.T
i.t
Shop C-2 & C-16, Millennium City 5, 418 Kwun Tong Road.
i.t
Shop 1030, Miramar Shopping Arcade, Tsim Sha Tsui.
i.t
Shop 27, 2/F, Silvercord Centre, 30 Canton Road, Tsim Sha Tsui.
i.t
G/F, 6-10 Cleveland Street, Causeway Bay, H.K.
i.t
2/F, In’s Square, 26 Sai Yeung Choi Street, Mong Kok, Kowloon.
i.t
Shop 10-19, Level 3, Langham Place, Argyle Street, Mong Kok, Kowloon.
i.t
Shop 412, New Town Plaza, Sha Tin.
J-01
Shop 18B-19, G/F, Miramar Shopping Arcade, 132 Nathan Road, Tsim Sha Tsui.
J-01
Shop B, G/F, 57 Paterson Street, Causeway Bay.
Juice
Shop A, 2/F, 53 Paterson Street, Causeway Bay.
Lane Crawford
Level 3, IFC, Central.
Lane Crawford
Pacific Place, Queensway.
Lane Crawford
3 Canton Road, Tsim Sha Tsui.
MVP Plus
37 Sai Yee Street, Mong Kok, Kowloon.
MVP Plus
Shop 391-392, Level 3, Grand Century Place, Mong Kok.
New Youth
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G/F, 13 Lee Garden Road, Causeway Bay.
New Youth
Shop 1033-1035A, 1/F, Metro City plaza 2, Tseung Kwan O, Kowloon.
New Youth
G/F, 84 Fa Yuen Street, Mong Kok.
Seibu
Kowloon Hotel, 17-21 Nathan Road, Tsim Sha Tsui.
Sportshouse
Shop 529-530, New Town Plaza, Sha Tin, N.T.
Sportshouse
Shop 26-27, Citylink Plaza, Sha Tin, N.T.
Sportshouse
Shop 1007-8, 1/F, Metro City plaza 2, 8 Yan King Road, Tseung Kwan O, Kowloon.
Sportshouse
Shop 220-222, 2/F, Metropolis Plaza, Sheung Shui, N.T.
Toronto
G/F, 8-8A Nelson Street, Mong Kok, Kowloon.
Wan Kee
G/F, 17 Nelson Street, Mong Kok, Kowloon.
Gigasports
Shop OT244-247, Level 2, Ocean Terminal, Tsim Sha Tsui.
Gigasports
Shop 1046-47, 1047A, 1/F, Metro City plaza 2, Tseung Kwan O, Kowloon.
Gigasports
Shop 124, Pacific Place 2, Queensway.
Gigasports
Shop B14-15, Basement, Fashion World, Site 2, Whampoa Garden, Hung Hom.
Gigasports
Shop 352-353, Telford Plaza, Kowloon Bay.
Gigasports
Shop B01-03, Basement, Sheraton Hotel Shopping Mall, 20 Nathan Road, Tsim Sha
Tsui.
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The improvement of Nike
Nowadays, Nike is not only a shop which sells shoes or clothes, but also a new
technology. Nike + is a good example.
Nike + is a timekeeper which is connected to the specific shoes. It can record time and
running speed, calculate calories burnt. It makes running more fun since then and
helps individuals to build a habit of running. Thus each of them can take a bigger step
towards a healthier life.
Nike takes an “outside-in” perspective, it really care about what customer needs and
always try the best to enhance the customer’s satisfactions.
Nike has found some experts to produce a video which teach buyers how to use Nike +.
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Save the environment
Earlier December 2008 in New York, Nike introduced the next evolution in their goal
to lessen their environmental impact. This new evolution is Nike Considered Design,
which will combine sustainability principles with the newest innovations for sport.
For Spring 2009 Nike Considered Design will be featured in all six of Nike key
categories including ACG, tennis, running, soccer, women’s training, men’s training,
sportswear and basketball. The Huarache basketball line will be a Nike Considered
Design product in its 2009 version, the Nike Huarache 09. The sneaker uses
Environmentally Preferred Materials (EPMs), with a high recycled content, wherever
possible. The stitching details and embroidery create structural support, eliminating
the need for excessive overlays, embellishments and backing materials. A smarter
pattern design allowed for a cutting efficiency of 70 percent on the upper,
substantially reducing waste.
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Information Provided by:
2008 Nike annual report
http://www.nikebiz.com/ Nike Official Site
http://www.theregalcourier.com/features/story.php?story_id=117277503832682800
Nike product test
http://www.kitidea.net/bbs/viewthread.php?tid=11692 Nike 2009 design
http://www.afrbiz.com.au/page.asp?
3652=419432&E_Page=416317&3648=417811&case=417829 R&D
http://www.nikefuns.com/category/marketing
http://store.nike.com/index.jsp?sitesrc=USLP&country=US&lang_locale=en_US
~The End~
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