Nike

Topics: Nike, Inc., Athletic shoe, Bill Bowerman Pages: 6 (1629 words) Published: February 5, 2014

NIKE

Executive Summary

Nike Inc. founded in 1962 by Bill Bowerman and Phil Knight was first named Blue Ribbon sports. Their goal was to distribute high quality Japanese athletic shoes to American consumers in an attempt to compete with Germany’s domination of the athletic wear at that time (Adidas and Puma). Nike manufactures and distributes athletic shoes at every marketable price point to the global market. More than 40% of sales come from athletic apparel and sports equipment. Nike has distribution channels in more than 100 countries targeting primary markets like the United States, Europe, Asia Pacific, and the Americas. Nike uses over 20,000 retailers, Nike Factory stores, Nike Stores, Nike Towns, Cole Haan stores, Nike Golf Stores, and Internet web sites that sell their sport and leisure products. Nike dominates the athletic footwear market with a share of 47%. Nike has been able to maintain their strong position in the market with quality production, innovative products, and aggressive marketing

Market Summary
Nike is a sports company that designs, develops, and markets footwear apparel, equipment and accessory products worldwide. Nike categories of clothing they design are mostly athletic and some casual for men and women. Nike’s footwear products include running, training, basketball, soccer, urban casual shoes, boots, and children shoes. Nike is also involved in sports wear for cricket, lacrosse, golf, outdoors activities, and tennis. Nike offers performance equipment such as bags, socks, gloves, sport balls, eyewear, watches, bats, gloves, protective equipment and golf clubs. They also own companies like Cole Haan with more than 180 retail stores, Converse, Hurley International, and Jordan. Most of Nike’s products are sold to footwear stores, sporting goods stores, athletic specialty stores, and golf shops. Nike currently has 645 DTC (Direct To Consumer) stores.

Target Markets
Nike’s primary target market is people between the ages of 16-45 (the largest are teens). Nike targets people with an active lifestyle, who play sports, live casually, or have a fashionable taste. Nike’s competitive market has expanded in the international market and dominated. Their target strategy includes Nike TV ads during professional and college sports events and during prime time television programs. Nike’s mission statement “ To bring inspiration and innovation to every athlete ” also gives a sense of who their target audience is. The mission statement is the company purpose, what that companies wants and works toward to accomplish. This shows that their primary target markets are athletes.

Competition
Nike has a 47% of the market share of domestic footwear with sales of 3.7 billion. Reebok is the second leading manufacturer of footwear with 1.28 billion in domestic revenues and a market share of 16%. Adidas has a market share of 6 % and revenues of 500 million. These are Nike’s main competitors.

Nike is the most recognizable company in the entire world; it is also the most popular brand in the world when it comes to sports apparel/footwear purchases. Nike and Adidas are the leading players in the global sports apparel market with a combined share of 11% in 2012. Adidas is slightly ahead of Nike with 8.2 billion in apparel sales in the fiscal year of 2012 compared to Nike’s 6.3 billion. During the fiscal 2010-2012 Nike’s apparel sales saw a 12.3% CAGR (Common Annual Growth Rate), which was higher than the growth seen from any of Nike’s main competitors like Adidas, Puma, and Asics. Nike also has 2 small emerging competitors, Under Armour and Lululemon athletica, but they have a long way to go to get anywhere close in the race with Nike.

Product Offering
Nike’s primary product focus is in athletic footwear designed for specific sports and leisure use. Nike also sells athletic apparel carrying the same trademark and brand name as the footwear line. Nike sells a line of...
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