Nike Strategy: Indian Context

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The presentation tries to capture an overview of Nike's Strategy from a students's point of view.

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Nike Strategy: Indian Context

  1. 1. GROUP NO. 2 Group Members: Elizabath Paul Saranya S Neha Raj Abdul Nafiy A Shipin P
  2. 2. Can you recognise this?
  3. 3. HOW WE PROCEED? Birth of Nike Inc. Company Strategies Marketing Strategy Manufacturing Strategy Innovation Strategy Business Strategy Human Resource Strategy
  4. 4. BABY TO GIANT • Nike, Inc. is an American multinational corporation engaged in the business of footwear, apparel, equipment, accessories and services. • Born as Blue Ribbon Sports in 1964 by Bill Bowerman and Phil Knight and officially became Nike. • The Nike brand is valued at $10.7 billion, making it the most valuable sports brand.
  5. 5. COMPANY STRATEGY • Nike is listed among the best marketed brands. • Nike’s strategy has kept it as the most valuables sports brand
  6. 6. MARKETING STRATEGY
  7. 7. 1. REGION-WISE SPORTS CONCENTRATION • Nike follows a strategy of concentrating in sports which is widely followed in a particular region. • In India Cricket is widely followed, so Nike has endorsed the brand called Nike Cricket.
  8. 8. 2. SELLING STRATEGY a) Nike Stores – Nike stores are the flagship direct retail outlets of Nike. – Nike Stores are strategically located in the busiest and most posh commercial areas of major towns and inside big malls.
  9. 9. b) Counters in High-end Retail Outlets – Nike follows the Store-within-a-store concept inside Fashion retail outlets like Lifestyle and Central. – This helps Nike to capture customers who wish to satisfy all their apparel needs under one roof.
  10. 10. 3. Promotional Strategy a) Sponsorship of Teams and Players – Football (Clubs): Manchester United, Arsenal, Barcelona – Football (National Teams):Brazil, England, Netherlands, France – Cricket: India
  11. 11. b) Nike Sponsored Events – Nike sponsors major sports events like Marathons. For example: The Nike We Run 2014, Bangalore Marathon is scheduled this month. – Nike has an advantage to sell apparel for this marathon as it has given a common dress code for the event.
  12. 12. 4. PRICING STRATEGY • Nike follows a prestige pricing strategy. • This strategy is widely successful because of its brand value and brand loyalty. • For example: Volkswagen has 15 times turnover of Porsche, but in profit margin Porsche has 7 times more than Volkswagen.
  13. 13. MANUFACTURING STRATEGY
  14. 14. 1. LOW-COST CONTRACT MANUFACTURERS • Due to its Supply Chain capability Nike has concentrated its manufacturing hub in low- cost countries like China, Vietnam. • In India, Nike procures widely from garment producing hubs like Tirupur. • The advantage of this for Nike is that they get products made cheaply due to the economies of scale experienced by these low-cost contract manufacturers.
  15. 15. 2. PATENTS • Nike uses patents to protect their innovations and brands. • For example: Nike Dri-Fit, Nike Stay-Cool, Nike Free and Nike Flyknit. • These patents not only protect their innovations but also create a quality perception and brand value in the minds of consumers.
  16. 16. • Dri-FIT is a high- performance, microfiber, polyester fabric that moves sweat away from the body and to the fabric surface, where it evaporates. • As a result, Dri-FIT keeps athletes dry and comfortable.
  17. 17. INNOVATION STRATEGY
  18. 18. 1. EXTENSIVE R&D • Nike R&D comes up with constant innovations in sports goods and these come in at the right time. • For example, Cristiano Ronaldo has unveiled his 2014 world cup boots, the Nike Mercurial Superfly.
  19. 19. 2. INVOLVING PLAYERS IN INNOVATION • Nike gets athletes involved in their innovations. • This helps them to customize products according to their needs and in turn bring new products to the customers with these innovations.
  20. 20. 3. COUPLING TECHNOLOGY WITH SPORTS • Example: Nike+ is a Sports tracking equipment which involves a sensor kept inside a shoe. • Technology enhances the brand value of the firm.
  21. 21. BUSINESS STRATEGY
  22. 22. 1. ACQUISITIONS • Nike acquired Converse for US$ 309 million. This would allow Nike to try a “buy rather than build” strategy and to develop leisure shoes separately from the hard-core Nike sports image.
  23. 23. 2. FINANCIAL STRATEGY • Nike proposed to buy back $8 billion of its class B stock in 4 years. This strategy will generate long-term profitable growth and strong cash-flow and will deliver value to shareholders.
  24. 24. HUMAN-RESOURCE STRATEGY
  25. 25. 1. TAKING CARE OF LABOUR OF CONTRACT MANUFACTURERS • Nike as a part of its responsibility takes care of the health and education of labour working in the Contract Manufacturers. • Nike can influence the wages provided by the contract manufacturers as the wages are influenced by the prices they pay to these manufacturers. • Such a sustainability strategy will add to the brand value of Nike
  26. 26. • Can you guess the biggest but the simplest strategy of Nike?
  27. 27. Nike THANKS TO ALL

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