MARKETING AUDIT PROJECT ON:
SUBMITTED BY: ANOOP KHURANA -2012081
SHASHANK MAKKAR -2012***
MANRAJ SINGH SANDHU-2012136
OJASWI SHARMA-2012154
SUSHANT SHARMA-2012156
INDEX
SR. NO.
CONTENT
PAGE NO.
1
INTRODUCTION
2
2
ENVIRONMENTAL ASPECTS
• ECONOMIC
• CUSTOMER
• COMPETITION 3
MARKETING ASPECTS
• OBJECTIVES
• STRATEGIES
• TACTICS
6
4
4P’S
• PRODUCT
• PRICE
• PLACE
• PROMOTION
9
5
MANAGEMENT INFORMATION SYSTEMS
11
6
ENVIRONMENTAL ANALYSIS 12
7
CONCLUSION
16
8
RECOMMENDATION
16
9
BIBLIOGRAPHY
18
INTRODUCTION Nike is an incorporated company
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The company believes that demands from international markets will increase in future. Nike must cater to a large portion of the new generation that demands the latest trends and styles. Nike should take into account the changing US demographics due to the rising proportion of Hispanics, Asians, and African Americans. These groups have different preferences that Nike should be able to satisfy. Nike should identify the next generation of loyal customers and provide for their needs.
COMPETITION Who are the companies or brands with which the organization or brand competes? What are their sales and market share trends? How do their approaches to the market differ from the organizations, and from each other? Are there any specific weaknesses in any competitors that can be turned into opportunities? Are there any specific strength that are major threats? What adjustments have been made? Succeeded or not? What other changes are being contemplated? Why? Competition is very fierce due to the number of companies competing for sales. Lots of money goes to marketing and promotions using various channels to reach the young demographic group of consumers who spend the most money on Nike’s products. Growth is slowing down in the athletic footwear industry. But new markets are emerging with high growth rates. These markets include extreme sports market and the corporate merchandise market.
Nike’s global market share was an impressive 30.4% in 1998. The
The report focuses on the Economic Value Added of Nike Inc. The analysis is conducted through a detailed assessment of the financial statements including income statement, balance sheet, and cash flow. Such financial statements are then applied to derive common-size statements for income statement and balance. The trends and predictions obtained from the common-size statements predict the future economic value. Similarly, the Pro-forma financial statements derived provide vital future economic performances of Nike Inc. According to the regression analysis and the assessment of the common-size and Pro-forma financial statements; Nike Inc. has a growth in revenue and earnings per share. The EVA computed using WACC, Net Operating Profit after Taxes (NOPAT), and Invested Capital is positive (+$391.24); this shows that Nike Inc. is financially stable and will grow in the next three years.
In this paper, we present an elaborate analysis of the marketing mix employed by Nike in its marketing strategy. The marketing mix is conducted on the basis of the concept of "marketing mix" which is usually referred to as the "4Ps" as an important means of effectively interpreting as well as translating the marketing strategy into practice as noted by Bennett (1997).A recommendation is also provided.
To conduct this study on Nike I used a mix of primary sources, books, and websites that are all dedicated to Nike Brand’s past and present history. All of the sources I used have proven to be credible in the sneakerhead world and are sources that Nike will leak information to so they can publish it and make it known to everyone it may interest. Additionally, I used a connection I have with the District Loss Prevention Manager at Nike, Inc for the greater New York City Area to obtain an interview in order to gain insight into why Nike conducts limited releases the way they do. To protect his identity, for this paper I will be referring to him as “Bill Harris” as he provided me with insider information that is classified and
Nike considers their structure a “Matrix Organization” (Nikebiz.com, 2010). This structure allows Nike to deal with the fast-moving market and keep their industry leading position. It can be costly, but has proven to be well worth the money for Nike. All work is collaborative; team members report to two areas; known as, geography and the global function area (Nikebiz.com, 2010).
This Capstone paper will explore the challenges inside the business arena of superpower, Nike, Inc. (Nike). Statements and references within this paper are supported with information gained through extensive research of business journals, financial reports, and various other news sources. The author will describe business and marketing challenges inherent in the world of sportswear and sporting goods manufacturing and more specifically, some that Nike has directly faced and overcome. From a very humble beginning in 1964, Nike has grown into a worldwide multi-billion-dollar company that sets the bar as leader of the sportswear and athletic shoe industry (Forbes, 2016). This paper will examine how Nike has become the industry leader and most
The market for athletic shoes has grown into a multi-billion dollar global enterprise in the last several decades. Athletic shoes comprise about 33% of a $48 billion market, growing annually (National Shoe Retailers Association, 2012)
Nike is one of the world’s largest footwear & athletic apparel manufacturer and supplier. Nike markets athletic wear, footwear, accessories and sports equipment for all types of sports and training. Nike started out named Blue Ribbon Sports Inc. and changed its name in 1971 to Nike. The famous company is headquartered in Beaverton, Oregon. Nike sells its products in all Nike belongs to the ‘apparel footwear and accessories’ industry, and is one of the leading company when it comes to profitability. In 2015, Nike’s global revenue was around 30.6 billion dollars. Nike focuses on invention of products for athletes to solve problems leading into the next generation. A few of Nike’s largest competitors are Under-armor, Adidas, and Reebok. This essay uses key financial ratios to measure Nike’s strength or weakness as a company, and ultimately decide if Nike is worth investing in.
Nike currently stands as a dominant leader in the global athletic retail industry. Particularly amongst females Nike is seen as a popular choice for apparel yet has had trouble solidifying itself as a top choice for footwear, with competitor ASICS seen as the preferred
Those who enjoy the sport of basketball or fashion prefer various types of footwear and therefore are the major consumers. For instance, brand loyalty such as Nike, Jordan, Adidas, and athlete endorsements influence a buyer’s decision. The marketers do not target individuals who dislike basketball, and people who are above or below the age of the target market. As a result, it is a source of opportunity because it introduces a product line such as socks, insoles, and cleaning spray for consumers outside of the target market.
Nike Inc. is a global sportswear manufacturer with about $25 billion sales revenues in fiscal 2013. Nike is clearly a market leader of sport footwear compare with Adidas, Puma, New Balance and others. The global athletic footwear market share of Nike is estimated almost 20% in 2012. The U.S represents the biggest market for Nike, with nearly 60% of market share in 2013 (Powell, 2014; Team, 2014). The marketing plan is important for Nike understands the market environment and review strategies in order to maintain its competitiveness.
Under Armour will be able to take advantage of this large population of buyers by creating a shoe that appeals to them. The ability to attract and retain at least half of this generation will increase their profits. Under Armour must understand the shopping habits of this group of buyers. They desire brand name products that are unique and stylish. Also, being socially accepted is very important to them but they must also be different. This generation is used to relying on their parents to select and purchase their shoes now they are the decision makers and the purchasers. Under Armour has the opportunity to attract a generation of buyers who are new to the athletic shoe market. Successfully attracting this group of buyers to Under Armour will
Nike's pricing is intended to be competitive to the next style Shoe retailer. The pricing depends on the premise of premium section as target clients. Nike's pricing system makes utilization of vertical combination in pricing wherein they possess members at contrasting channel levels or tune in more than one channel level operations. This can control expenses and impact item pricing.
This strategy of Nike has made this company to gain maximum number of customers and profit. Nike is a very competitive brand and its policy “The consumer decides” is one of critical policy that defines how to compete as a company. Nike's athletic footwear products are designed for specific athletic use, though some of its products are worn for casual or leisure purposes also. The company creates designs for men, women and children. Company's top-selling product categories are running, basketball, children's, cross-training and women's shoes, due to which Nike has a healthy dislike of its competitors. The athletic footwear industry is a very mature and competitive market. The leaders of this industry are very well established. Leaders like Nike, Adidas and Reebok have made the industry what it is today which forms an entry barrier to new entrants. Nike’s brand images, including the Nike name and its trademark "Swoosh", are considered to represent one of the most recognizable brands in the world. This brand power translates into bottom-line revenues. Due to increased emphasis by consumers on fashion in relation to sportswear, Nike has made strides to appeal to a fashion savvy
Nike Inc. has many sources of revenue streams which is that broken down into different segments. Each segment represents the different fields in which Nike operates. The segments are targeted towards design for men, women and children. Running, basketball, cross training and women’s shoes are the company’s top-selling products categories. Nike also produces shoes for the outdoor categories, tennis, golf, football, baseball, cycling and other athletic and recreational uses. Today Nike, Inc. is now the world’s prominent innovator
* Nike’s objective has been to grow globally by grasping the three main market segments, which are the performance athletes, participant athletes and those that influence the world and the culture of sport. They also adapt their global strategies in a way that fits locally.