A report on consumer behaviour in nike

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Content

1. A brief history of Nike
2. Segmentation, Positioning and Targeting of Nike
3. Nike’s Research Program
4. Corporate Social Responsibility
5. The Marketing Mix of Nike
6. Nike SWOT Analysis
7. Brand : Nike
8. Product Mix
9. Culture in Organization “Nike”


A Brief History of Nike

The Nike athletic machine began as a small distributing outfit located in the trunk
of Phil Knight's car. From these rather inauspicious beginnings, Knight's brainchild
grew to become the shoe and athletic company that would come to define many
aspects of popular culture and myriad varieties of 'cool.'

Nike emanated from two sources: Bill Bowerman's quest for lighter, more durable
racing shoes for his Oregon runners, and Knight's search for a way to make a living
without having to give up his love of athletics. Bowerman coached track at the
University of Oregon where Phil Knight ran in 1959. Bowerman's desire for better
quality running shoes clearly influenced Knight in his search for a marketing
strategy. Between them, the seed of the most influential sporting company grew.

The story goes like this: while getting his MBA at Stanford in the early '60s, Knight
took a class with Frank Shallenberger. The semester-long project was to devise a
small business, including a marketing plan. Synthesizing Bowerman's attention to
quality running shoes and the burgeoning opinion that high-quality/low cost
products could be produced in Japan and shipped to the U.S. for distribution,


Knight found his market niche. Shallenberger thought the idea interesting, but
certainly no business jackpot. Nothing more became of Knight's project.

Cut to 1963. Phil Knight traveled to Japan on a world-tour, filled with
the wanderlust of young men seeking a way to delay the inevitable call of
professional life. Seemingly on a whim, Knight scheduled an interview with a
Japanese running shoe manufacturer, Tiger--a subsidiary of the Onitsuka
Company. Presenting himself as the representative of an American distributor
interested in selling Tiger shoes to American runners, Knight told the businessmen
of his interest in their product. Blue Ribbon Sports--the name Knight thought of
moments after being asked who he represented--was born. The Tiger executives
liked what they heard and Knight placed his first order for Tigers soon thereafter.

By 1964, Knight had sold $8,000 worth of Tigers and placed an order for more.
Coach Bowerman and Knight worked together, but ended up hiring a full-time
salesman, Jeff Johnson. After cresting $1 million in sales and riding the wave of
the success, Knight et. al. devised the Nike name and trademark Swoosh in 1971.

By the late '70s, Blue Ribbon Sports officially became Nike and went from $10
million to $270 million in sales. Katz (1994) describes the success via Nike's
placement within the matrix of the fitness revolution: 'the idea of exercise and
game-playing ceased to be something the average American did for fun,' instead
Americans turned to working out as a cultural signifier of status. Clearly, the
circumstances surrounding the shift are not this simple; it is one of the aims of
this project to discover other generators of popular attention to health.

If Nike didn't start the fitness revolution, Knight says, "We were at least right
there. And we sure rode it for one hell of a ride" (Katz, 66). The 80s and 90s would
yield greater and greater profits as Nike began to assume the appearance of
athletic juggernaut, rather than the underdog of old. "Advertising Age" named
Nike the 1996 Marketer of the Year, citing the "ubiquitous swoosh...was more
recognized and coveted by consumers than any other sports brand--arguably any
brand" (Jensen, 12/96). That same year Nike's revenues were a staggering $6.74
billion. Expecting $8 billion sales in fiscal 1997, Nike has targeted $12 billion in
sales by the year 2000.

Few can question Nike's financial hegemony. But nearly $7 billion in revenues
clearly begs the question, what sells these shoes? It is my assertion that Nike's


power to sell comes from deep-rooted yearnings for cultural inclusiveness and
individual athletic accomplishment. These seemingly paradoxical desires collide in
consumer’s hearts and minds and produce the unyielding zeal for Nike shoes and
apparel. Unfortunate effects of this zeal can be found in the rash of Nike apparel
killings in 1991 and the profusion of Nike collectors and WebPages designed
around the company's products. Nike appeals to these disparate elements of
Americans' personalities through an advertising philosophy that is, at once, simple
and sublime. In addition, Nike's practice of top-level athletes promoting their
products appeals to countless ages and creeds as a way to identify with and
emulate their athletic heroes. These forces work powerfully upon the individual
consumer, but one should not lose sight of the cultural context in which the
individual moves.

Segmentation, Targeting and Positioning of
Nike

Nike has been in the market for a long period now. Thus it has already soughted
out the STP analysis that it would use to promote and sell its products.

Market Segments:

The market segments that Nike can mainly differentiate are high, medium and
low end customers with varying income levels. Thus, Nike needs to segment on
various fronts such as economic, demographic, geographical differentiations.

Economic segmentation:

High, medium and low income levels that can be clubbed with there lifestyles of
high, medium and low end customers.


Demographic segmentation:

The company can segment the market into age, gender and class segments.

Geographical segmentation:

The company can segment the market into segments of north, west, east and
south.

Target Market:

The company needs to target the market as per the brand image and equity in
different markets. Thus, the company has targeted the market of high-end, high
income level between the age of 16-55 with a pan India location. Thus the market
segment it is targeting is quite essential to differentiate itself from its competitors
i.e. Reebok, Puma, Fila and local brands like Bata.

Positioning:

The brand Nike has positioned itself in the minds of the consumer as a high-end
product which is quite costly but gives the value for money with its service,
quality and designs.

All this analysis provides Nike with the customer satisfaction and thus loyalty that
it needs to achieve high volumes and profitability.


Nike’s Research Program
Nike has been in the Research & Development in the market for quite a long time.
The research that it has been carrying out relates to the earlier STP analysis which
allows Nike to create a market for its products.

Also Nike has a history of constantly innovating new products and attain the first-
in-the-market advantage and charge a premium price. Nike spends a lot out of its
revenue into R & D of new products and designs to constantly stay ahead of the
competition.

Nike conducts both qualitative and quantitative research for gathering vital
information for its products and new launches. The qualitative research refers to
the consumer purchasing behavior like why, how, what do they decide on the
basis of Nike’s image as well as products. The quantitative research deals with
what are the results of the company i.e. revenue against cost and other financial
analysis.

Nike indulges into research analysis of consumer markets as well as competitor’s
analysis and thus understanding the consumer behavior and their buying pattern.

Nike does extensive research in the attitudes and tastes and preferences and
their changing pattern by having questionnaires filled up by its customers online
as well as personally. It also indulges into personal interviews with its valued-


customers to make some necessary changes that they might require. This is how
the company came to be recognized as a high valued by its customers and thus
attain maximum loyalty. Also the company came up with the idea of
customization of their products online through this type of research itself which
has yielded high results.

Nike products undergo a rigorous testing process that covers a huge variety of
testing surfaces (regular basketball hardwood, soccer turf, a running track, and
endless outdoor testing on various terrain), and takes into account four major
factors, geography, gender, age, and skill level as well as profession. All of this
combined with the results of about a dozen other tests are use to develop new,
user-friendly products like the Nike Shox, Nike Air, and other Nike basketball and
running shoes. This is mainly because Nike needs to constantly be aware of the
changes in the consumer buying behavior which can only be done through various
researches. Nike also utilizes information from various other research analysts like
http://www.sneakerhead.com/nike-research.html.


Corporate Social Responsibility undertaken by
Nike

Nike has been in the market for over 5 decades now and has understood the
importance of maintaining the environment through corporate social
responsibility.

The firm has been in news for last decade for its innovativeness to develop such
facilities that are waste free and use renewable sources of energy.

A statement by Sarah Savern, director of corporate responsibility horizons, Nike
Inc. states “We have a target to be climate neutral in Nike owned facilities and
business travel by 2011.By 2015, we aim to be climate neutral in all Nike Inc.
facilities. A 17% reduction in footwear waste by 2011. A 30% reduction in
packaging and point-of-purchase waste.”

As per the current CEO Mark Parker, “We see corporate responsibility as a
catalyst for growth and innovation.” Also, “We are challenging our assumptions,
evolving our perspective and building a new approach.”


The Marketing Mix Adopted By Nike

Nike has been developing its marketing mix consisting of the four P’s i.e. product,
price, place and promotion. Thus Nike has soughted out the mix that will best
help it achieve its goals of maximum profitability.

Product:

Nike takes into consideration various aspects of its products as it is in a product or
consumer market. Thus it needs to have extensive range of products to withstand
its competition.

Nike provides features, designs, various brands, packaging along with some extra
features like warranties and after sales service. This all aspects can be included in
the product analysis.

Nike has various products as well as brands that cater to different market
segments which varies according to requirement of particular segments as well as
individuals. Also they offer customized designs of their products wherein
customer designs their product as per their requirements.

Eg: Nike provides customization of their shoe range on their site Nike.com.

Nike also offers a one year warranty for their products. Also they provide an
option for replacement in all their products if any defects or problems occur after
purchase which is a part of after sales service.

Nike has been designing world class shoes for over 5 decades. Yet it has a
tendency of changing the designs and patterns after a particular period or
quantity. It also has a range of classic Nike shoes which are available all the time.

Nike also provides packaging with collaboration with other brands.

Eg. Selling i-pods with their jogging shoes range.


Price:

Nike has a high-end consumer market with high disposable income asking for
better service and satisfaction as there target market. Thus their pricing strategy
is to provide value at high cost with maximum profitability. Thus they have high
margins but this can be justifiable due to its advertising and research costs.

Nike also provides with discounts during various festive seasons on its products
like Diwali in India. This is also a part of its pricing decisions.

Place:

Nike is a multi-national organization. Thus it needs to develop a wide range of
distribution channel which can support its retail business. Thus Nike has some of
the following distribution outlets:

Retail: Nike sells through its retail stores, brand outlets, exclusive showrooms as
well as hyper markets in metropolitan areas.

Online shopping: Nike also provides with online shopping facility for its various
products and services.

Distributors: Nike has a wide coverage of its distributors across the globe to
support its retail outlets.

Factory outlets: Nike also sells its merchandise through factory outlets that sell
some of its products at a discounted rate.

Promotion:

Nike is extensively involved in Promotion and advertising. Nike uses advertising,
sales promotion, advertisement campaigns, public relations and publicity and
sales offers to build awareness and brand image and loyalty.

Nike endorses various celebrities such as athletes, football players, cricketers,
tennis etc.


Eg. Roger Federer, Tiger Woods, Ronaldinho, Ronaldo.

Nike also endorses various teams as well as clubs such as Barcelona Football Club.

It places its products in various movies and shows using product placement.

Nike also sponsors various events such as tour de France, FIFA World Cup, Delhi
Marathon and various others.

Nike promotes its products also utilizing other products brand equity such as
promoting its range of shoes alongwith I-pod.

The “Just-do-it” campaign of Nike has been since nearly 3 decades and has got
them worldwide fame.

Nike also advertises by using various celebs in their advertisements to increase
brand loyalty while utilizing the brand image of such celebs.

Nike has also gone to the extent of sponsoring a stadium called “the Alliance
Arena”, which is by far the biggest football ground in the whole world.

Thus Nike can be viewed as an organization that utilizes advertisements
extensively for promotions which can be viewed from its advertisement budget of
approximately US $ 150 million.

Nike SWOT Analysis

STRENGTHS:

Contracts with Universities: Nike has contracts with universities nationwide to
supply apparel for athletes. These university sponsorships are beneficial to Nike
because they give the company the right to sell merchandise with these schools’
logos, tap into the market of collegiate sports apparel, and form relationships
with young consumers.


Analyst Confidence in Stock: According to press releases issued by Bloomberg,
analysts from Bank of America, CSFB, and Wells Fargo recently called Nike a
“buy.” After a lackluster financial year, this news could potentially affect stock
price in a positive way.

Michael Jordan Returns to Basketball: Nike received press coverage throughout
Jordan’s decision-making process and continues to make press regarding the
impact of Jordan’s return. Nike was able to capitalize on this strength by debuting
a new shoe – the Air Jordan XVI – and by making new commercials with Jordan
that will hit the airwaves soon. Michael Jordan is perhaps the most recognized
athlete in the world and markets Air Jordan apparel for Nike.

Corporate Responsibility Report: According to the Nike Web site, in October Nike
released its first Corporate Responsibility Report. The document states that
Nike’s focus points, in terms of corporate responsibility, are the environment and
labor. Since these are two areas that cause protests against Nike, it is important
for Nike to label them as areas to focus on and for Nike to give the public this
information.

Strict Environmental Standards: According to Bloomberg, Nike has accepted strict
environmental standards to comply with by 2005. These standards were part of
the Kyoto treaty that President Bush refused to sign and are supposed to help in
the fight against global warming. Nike has made other efforts to be energy
efficient; its office in the Netherlands is the most energy efficient office in that
country by 35%. Nike also uses organically grown cotton, promotes the Eco-class
program with Delta Airlines, and founded N.E.A.T. in 1993 to, as the Nike Web site
maintains, “Reduce Nike’s impact on the planet.”


Reducing Operating Costs: In a report from Business Wire, Nike is taking
advantage of the new cost-cutting methods of electricity management from
Portland General Electric. This method allows Nike to continually get an update
on its energy use and see if there are any problem areas. Nike is utilizing
technological advance to streamline operations at its facilities, increasing
productivity and cutting costs.

Philanthropy: Nike is committed to philanthropic endeavors such as “Reuse a
Shoe,” “Project Dreams” and “Habitat for Humanity.” These efforts, along with
other programs such as the “Shadow” program and the Bower man Foundation,
show Nike’s commitment to the community. Nike employees also benefit from
these philanthropic opportunities. Recently, Nike continued to give back to the
community by giving $1 million to the World Trade Center Disaster.

The Nike “Swoosh”: One of the biggest strengths of Nike is its brand identification
and corporate identity. The Swoosh resonates in the minds of consumers who
recognize that logo as representing quality, first-rate athletic apparel. The Nike
Swoosh is recognizable and identifies all Nike products and sponsored
universities.

Nike Icons: Nike uses athletic icons and heroes to market its company goods.
Examples of Nike icons are: Michael Jordan, Tiger Woods, Mia Hamm, Marion
Jones, and Lance Armstrong. Not only do these athletes adorn print and
television advertisements, but they also appear on the Nike Web site and are
called “Our Heroes.” This is strength because consumers begin to identify the


athlete with Nike. Nike’s popularity is connected to the popularity of these
athletes.

Event Marketing: Nike successfully uses event marketing in the realm of fitness to
bring more brand recognition to its name. These sponsorships ensure that
consumers see the Nike Swoosh in places other than television advertisements,
on products, and in stores. Nike sponsors fitness challenges at universities and
also sponsors nationwide athletic tournaments, including some for charity.

Niketown: Nike town stores, located in 15 major cities across the world,
demonstrate that Nike has become a part of American and world culture. These
famous stores represent the true strength of the Nike brand and the popularity of
the athletes who advertise Nike apparel.

WEAKNESSES:

Labor Practices: Activist groups and student organizations have made Nike a
symbol of labor exploitation. These groups blame Nike for poor conditions in its
third world factories, under-paying workers, employing children, and ignoring the
basic rights of its workers. Nike is often in conflict with labor unions; most
recently, Nike bucked heads with a factory workers’ union in Mexico.
Accordingly, the public associates Nike with sweatshop labor and accuses it of
sidestepping human rights in order to secure the greatest profit.

Advertising: Nike spent over $1 billion on advertising, sports marketing, and
promotional spending in 1999, and, although popular, some of its advertising
strategies were considered controversial, according to an article titled “Channel


Conflict.” Feminist groups accusing Nike of degrading women have attacked Nike
commercials that stress winning above everything else and show women
submissively. Although the majority of Nike’s commercials are cutting edge and
creative, those very commercials can be weaknesses in Nike’s reputation.

Consumer Cost: Nike has been accused of outrageously marking-up prices on
many of its products to cover the costs of advertising and sponsoring. The public
feels that Nike overcharges its consumers and should lower prices. According to
an article from the Graduate School of Business at Stanford University, a shoe
whose net factory price is $24.71 is sold retail by Nike for $100.

Endorsements: The public questions the amount of money that Nike spends on
sponsoring athletes. People do not agree with the multi-million dollar, multi-year
contracts that Nike extends to athletes such as Tiger Woods, Ken Griffey Jr., and
Michael Jordan and are disillusioned with Nike’s preoccupation with these
athletes.

Global Community and Outsourcing: Nike’s efforts toward global expansion have
become a weakness in its reputation. Nike has operated in the Asian region for
25 years and uses subcontractors throughout the globe to manufacture its
products. Factories in China, Indonesia, Vietnam, Italy, the Philippines, Taiwan,
and South Korea produce the majority of Nike goods. Nike has little control over
its extended product line because it is such a large company with the majority of
its operations overseas. Additionally, many people in the United States see Nike’s
outsourcing as taking away jobs from Americans.


OPPORTUNITIES:

Wide Range of Products: Nike not only has the ability to succeed in the basketball
shoe market, but in virtually every other athletic market from golf apparel to
women’s workout gear. This diversity of products presents Nike with a great
opportunity – to build up strength in all of its product lines and also to be flexible
when the market shifts, making demand in some areas higher than others.

Winter Olympics: This year’s Winter Olympics, in Salt Lake City, Utah, will provide
excellent opportunities for Nike to advertise. The Winter Olympics will also bring
publicity if Nike-sponsored athletes are competing in events, displaying the Nike
Swoosh all over the world. Nike has been a major contributor to many of the past
Olympics as well. In Sydney, for instance, Nike designed over 2000 athletes’
uniforms in 25 Olympic sports.

Foreign Market: While Nike has become a major part of American culture, there
is international strength in the Nike brand. According to one Nike press release,
worldwide orders for Nike products are up 6%. This is an opportunity because it
means Nike can expand globally and depend less on the American market for its
successes or failures.

NIKEgoddess Opened in Newport Beach, California: This marks Nike’s expansion
into the women’s apparel market. Because women wear athletic apparel for
more than just working out, this is an opportunity for Nike to jump into the
mainstream clothing market.


Hype of Advertising: Nike’s advertisements make waves. People enjoy them and
wait for new ones. Nike’s newest advertising campaign is “Enjoy the Weather,”
which features athletes conquering weather conditions to perform their sport.
The hype of Nike advertising brings with it the opportunity to reach the public
through the promotion of Nike’s newest advertising endeavor.

Expansion into Outdoors Clothing: The expansion into outdoor clothing is an
opportunity for Nike because this will allow Nike to become more of a part of the
apparel market. The fitness, innovation, and technology clothing line keeps in
Nike’s tradition of providing superior products.

Web site: Nike’s massive Web site will prove to be an opportunity for Nike
consumers to get up-to-date news coverage and to buy into the online purchasing
market. It is one of the most comprehensive and interactive sites on the Internet.
Nike should be able to capitalize on its Web site and emphasize those issues that
Nike publics would not otherwise be exposed to by other media.

THREATS:

Las Americas: Nike is funding part of the first-ever privately funded U.S.-Mexico
port of entry into the United States. Nike’s involvement in this project could open
them to public criticism concerning immigrant labor. Additionally, in the wake of
the events of September 11, Americans are wearier of foreigners and more
concerned with homeland security. The bridge might threaten Nike’s reputation.

University Campus Groups: Student groups are gaining strength and becoming a
larger presence on university campuses across America. For example, an article
stated that the University of Connecticut decided to allow students with protest
signs to attend athletic events only after the school was approached by a student


organization requesting this measure. If Nike cannot reconcile its differences with
student groups, it will face more and more threats to its reputation as these
groups gain more and more of a following on campuses.

Competition: According to various Web sites, Nike competes with Converse, Fila,
Adidas, New Balance, and Reebok. Nike currently dominates the market, but
these companies pose a potential threat to its reputation. If Nike cannot stay one
step ahead of these companies in terms of product design and customer
satisfaction the corporation could flounder. Reebok, for instance, has already
taken over Nike’s contracts with the WNBA and the NFL.

Industry Trends: In the past, Nike has been unable to keep up with changes in the
industry. According to a report concerning Nike’s weaknesses, the corporation
was one of the last athletic footwear companies to move into e-commerce and
was late recognizing other trends in the market. Nike can ill afford to be viewed as
a complacent company and cannot let this threaten its reputation.

Manufacturing Network and Global Economy: Nike Inc. is the parent company of
numerous subsidiaries and is imbedded in an intricate global manufacturing
network. Additionally, Nike relies heavily on the global economy to succeed.
What is more, the corporation grew so fast that it developed organizational
dilemmas, causing Phil Knight to admit in a news release “four years ago, we
(Nike) had outgrown our ability to manage the business.” If Nike and its publics
cannot understand the intricacies in Nike’s corporate system, they might lose
faith in the organization.

Management: Since its conception in 1964, Phil Knight has held close control of
the company and “ruled with a mix of closely allied senior managers,” according


to a business report entitled “Channel Conflict.” Nike management has also gone
to tremendous lengths to identify with competition and victory. Management
wants to be in complete control; however, this is not always a positive in the eyes
of stakeholders and could threaten its reputation.

Internet Boom: An Internet search with the phrase “anti-Nike” showed thousands
of links to anti-Nike Web sites appear. With the click of a mouse, anyone without
any accreditation or legitimacy can post anti-Nike sentiment or have access to
anti-Nike material. This has made it easier for activists to express their negative
opinions of Nike and is making it harder for Nike to overcome some of its less
flattering reputations.

Lawsuits: Nike has been involved in many lawsuits that also threaten its
reputation. Most recently, the United States Court of Appeals for the Second
Circuit affirmed the dismissal of a case against Nike and St. Johns University by a
Mr. Keady. According to a report by Vada Manager, Director, Global Issues
Management, “Mr. Keady had made numerous attempts to discredit Nike’s
considerable efforts at improving conditions in the factories and communities
around the world where our products are made.” Although Nike won the lawsuit,
Keady’s efforts, and others like them, to discredit Nike pose a threat to the strides
it has made in the way it does business.


Branding: The essence of the business

Many people view branding as purely a logo or a name; however branding is far
more than this. A brand should capture the true meaning of the business and is
created jointly by the efforts of business and through consumer’s perceptions.
Many of these perceptions will be given to the consumer initially by the business.
However, in some situations the perceptions can arise from situations outside the
business’s control, for instance through bad press.

To explore this idea think about all the attributes you associate with:

At a recent workshop the logo provoked the following comments: competition,
physical activity, quality, and role model, expensive, slave labor and modern.
Some of these attributes will be the Nike brand; others are the result of consumer
perceptions created by bad press, quite possibly resulting from ill-thought out
management decisions.


Mission

Why do you do
what you do,
beyond the money?

Product Vision

What do you Were do you plan
actually do? to be in the future?
Bigger, more
We produce beef
specialised etc
etc

Brand Essence

Positioning Values

How do you want What will you never
to be seen? compromise on?
Quality,
Value for money etc provenance, etc
Style

How do you
interact with our
customer?

Relaxed, business-


Branding: powerful marketing mechanism used by Nike

• Leads to higher and more consistent product quality.

• Increases innovation by giving producers an incentive to look for more new
features that can be safeguarded by the patent.

• Branding results in more product variety and choice for consumers.

• Branding provides consumer information about products and where to find
them.

Brand Image

A strong brand creates a preference to purchase and an inclination to
continue purchasing (brand loyalty).

We most commonly think of branding as something the big guys do with
their large ad budgets and extravagant television commercials. In recent
years some observers have noted that branding is losing its power. We see
more and more people buying generic prescriptions over the label brands.
"Would generic be ok with you sir?" But in truth, when you go to buy a new
vehicle, don't you consider the brand? Would you buy a $18,000 generic
brand over a $22,000 Ford?

As a small business owner what should you do? The concept of branding is
an ideal method of forcing you to focus on what it is that you do, what you
want to do, and what you want to become. To create a brand you must
develop a set of guidelines for your business and identify how you want
your business perceived. How do you want to be seen by the public?

You might think that your brand image is your logo. Like the Nike logo, or
the Disney logo, or any other famous logo. But in truth your brand image is


every customer/prospect's interaction with your company that creates an
impression. It's your company's character. It's a conglomeration of
interaction and observation by people outside your organization: how your
phone is answered, the quality of customer service, how your trucks look,
or even how your web site looks. It's what makes your company unique
among the hundreds of competitors.

Your brand image should communicate the difference between you and the
competition— your reason for being. Your brand image should reinforce
your corporate message so that it helps make you stand out in a crowd of
look-a-likes.

Brand equity

• Brand equity is defined as the positive differential effect that knowing the
brand name has on customer response to the product or service.

• Brands represent the consumers’ perceptions and feelings about products
and their performance.

• The real value of branding is the ability to capture consumer preference
and loyalty.

• Brands vary in power and value and have varying degrees of brand
awareness, brand preference and brand loyalty.


 Brand personality

Personification.

Michael Jordan

Put Nike on the map

– 1984-1985 Nike saw a decrease in their earnings for the first time
ever

– Influenced them to make their first specialty basketball shoe

– Since then, Michael and Nike together have generated billions of
dollars in revenue

– “World Sports Hero No. 1”

– Jumpman logo is one of the most easily recognized symbols
throughout the world


Tiger Woods

The newest Nike sensation

– Estimated that Nike paid him $40 million

– More attention than Michael Jordan and Bo Jackson

– 3 pg. ad in Wall Street Journal

– 30- and 60- second TV spots

Aired during college football, major league baseball, the U.S. Open,
SportsCenter and Monday Night Football


Consumer Behavior and Managerial Issues

Nike.com is by all means a great place to do online shopping but I found
that it can be just as good for the consumer who wants to do there shopping
offline. With the many online departments and adjustable features you can
decide what you want and then use the store locater to get directions to the
nearest retailer.
Nike uses secured socket layer technology to ensure you that your credit
information is secured.
Nike also uses cookies as an information gatherer to see what your
preferences or tendencies may be, which enables them to supply a better service
to there customers. If you don’t want your information to be used in this form
Nike also shows you how to deactivate cookies or even how to opt-out of
receiving e-mails for them.
In conclusion the group thought Nike.com was a really well put together web site,
while some may find it a little difficult to navigate, it has great customer service to
help you, and many features to keep there customers happy and searching there
site for long periods of time.


Nike: Porter’s Five Forces


Product Mix

A product mix is the set of all products and items that a particular seller offers
for sale to buyers also known as product assortment.

• Product Width

It refers to how many product lines the company carries.

• Product line

A product line is a group of products that are closely related because they
perform similar functions

• Product length

It refers to the total number of items in its product mix

• Product depth

It refers to how many products are offered of each product line.

Product mix of Nike

• Footwear

• Studs for Striker

• Mid fielders

• Defenders

• Apparel

• Headwear


• Tops/Polo

• Jersey

• Jackets

• Shorts

• Shocks

• Equipment

• Ball

• Bags

• Watches

• National Team Gear

• Jersey for Brazil, England, etc.

• Club Gear

• Club Jerseys like Man U, Real Madrid, etc

Culture in organization “Nike”

A culture of any organization can be viewed as the shared cognitions, values,
norms and beliefs. Thus they function as symbols of a society or subgroup. Thus
every organization has its own culture and values on which they perform.

Nike is seen as an organization of innovativeness and health conscious and fitness
oriented organization.


Nike can also be viewed as an organization promoting hard work and young
talents which is communicated to the customers through its advertisements also
like ads of Ronaldinho, Rafael Nadal etc.

Nike also has a culture of promoting high achievers so as to keep an image for the
organization itself.

Nike’s culture is spread over all its Nike Inc. facilities all over the world. Thus it is
culture has been affected by cultures of various countries and influenced by there
subcultures too as it is the same people that for the organization that live in the
society too.

A report on consumer behaviour in nike

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A report on consumer behaviour in nike