Nike Compressed Apparel

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Nike Compressed Apparel

  1. 1. NIKE PROTON THE COMPRESSED APPAREL RANGE Group 6 BM - A
  2. 2. PRODUCT DESCRIPTION <ul><li>TECHNICAL ANGLE </li></ul><ul><ul><li>100% Pure Cotton manufactured under High Temperature and Pressure Treatment </li></ul></ul><ul><ul><li>THE EXPANSION PROCESS </li></ul></ul>10 Seconds Compressed Ordinary status
  3. 3. LEVELS OF PRODUCT
  4. 4. STRATEGIC FIT…ARGUMENTS <ul><li>Nike’s focus is on continuous worldwide expansion </li></ul><ul><ul><li>Product diversification and development </li></ul></ul><ul><ul><li>Customer loyalty </li></ul></ul><ul><li>NIKE is now stretching the traditional boundaries of what it considers sports and fitness. </li></ul><ul><ul><li>Majority spending on fitness activities such as golf, aerobics and biking, which are fueling the market is not intended for athletic activities, but for comfort and fashion </li></ul></ul><ul><ul><li>A lot of people are now seeing working out as melding into the rest of their lives </li></ul></ul>
  5. 5. STRATEGIC FIT…ARGUMENTS <ul><li>How NIKE is doing it: </li></ul><ul><li>Nike announced the kick off of its annual grass root initiative for football in India - the  Manchester United Premier Cup (MUPC)  - India 2009 </li></ul><ul><li>Officially sponsoring the Indian Cricket team’s kit </li></ul><ul><li>NIKE is also in for selling IPL merchandise </li></ul>
  6. 6. STRATEGIC FIT …CONCLUSION <ul><li>Let other companies worry about the traditional boundaries between sport and fashion. </li></ul><ul><li>Nike has built its empire by transforming the technology and design of its high performance sports gear into high fashion, vastly expanding its pool of potential customers. </li></ul>
  7. 7. MARKET RESEARCH
  8. 8. MARKET RESEARCH <ul><ul><li>Objective 1: To understand the market trends of apparels in India. </li></ul></ul><ul><ul><li>Data Collection: </li></ul></ul><ul><ul><li>Published Reports (Secondary source) </li></ul></ul><ul><ul><ul><li>Men’s and women’s apparel industry will increase at a CAGR of 14.86% and 17.79% respectively during 2008-10. </li></ul></ul></ul><ul><ul><ul><li>Branded apparel industry for men increasing at a CAGR of 24% will cross Rs. 25000 crores by 2010. </li></ul></ul></ul><ul><ul><li>Results: </li></ul></ul><ul><ul><ul><li>Market for branded apparels is growing very fast in India. </li></ul></ul></ul>
  9. 9. MARKET RESEARCH <ul><ul><li>Objective 2: To determine the market acceptance of compressed apparels in India. </li></ul></ul><ul><ul><li>Objective 3: Access which parameters of the product compressed apparels would attract the customers the most. </li></ul></ul><ul><ul><li>Data Collection: </li></ul></ul><ul><ul><li>Primary </li></ul></ul><ul><ul><ul><li>Interviews </li></ul></ul></ul><ul><ul><ul><li>Surveys </li></ul></ul></ul>
  10. 10. MARKET RESEARCH – DATA ANALYSIS <ul><ul><li>Around 35% of respondents travelled for a duration of more than 3 days. (10% for more than a week) </li></ul></ul>Around 45% of respondents spend in excess of Rs.1000 per month for purchasing new apparels <ul><ul><li>More than 50% of respondents liked the idea of gifting designer compressed apparels. </li></ul></ul>
  11. 11. MARKET RESEARCH - RESULTS <ul><ul><li>The idea of gifting apparels in the shapes of Guitar, Balls, Racquets or other designs appealed the most to the respondents. </li></ul></ul><ul><ul><li>Considerable number of respondents spend in excess of Rs. 1000 for apparels which coupled with the fact that about 72% of them purchase atmost one apparel a month gives a substantial customer base for the product. </li></ul></ul>
  12. 12. SEGMENTATION, TARGETING, POSITIONING
  13. 13. SEGMENTS AND THEIR ATTRACTIVENESS B2B (Promotional Gift Item) B2C (Sports ) B2C (Travelling Customers) B2C (High Income Group) Identifiable YES YES YES YES Reachable HIGH MEDIUM MEDIUM HIGH Profitable HIGH HIGH HIGH HIGH Responsive MEDIUM HIGH LOW MEDIUM Substantial HIGH LOW LOW MEDIUM
  14. 14. TARGETING
  15. 15. POSITIONING B2C Customers B2B Customers
  16. 16. PROMOTIONAL CAMPAIGN
  17. 17. PHASE 1 <ul><li>A teaser campaign to generate curiosity about the product will be launched. </li></ul><ul><li>A print ad campaign with hoardings in tier 1 and 2 cities . </li></ul><ul><li>Ads in sports, fitness and lifestyle magazines. </li></ul><ul><li>Popup and banner ads on popular sites. </li></ul><ul><li>Duration – 15 days </li></ul>
  18. 18. WARNING !! YOUR CLOTHES ARE ABOUT TO SHRINK !!
  19. 20. PHASE 2 <ul><li>The actual launch of the product . </li></ul><ul><li>The advertisements to focus more on creating awareness and highlighting the benefits of the product. </li></ul><ul><li>Celebrity sponsorship : Sreesanth, Christiano Ronaldo etc </li></ul><ul><li>Surrogate marketing : Films, MTV, Channel V </li></ul><ul><li>Advertisements in print media like Corporate and travel magazines, In Flight magazines. </li></ul>
  20. 21. VALENTINES DAY FOOTBALL WORLD CUP IPL SPECIAL EVENTS
  21. 22. NIKEID.COM <ul><li>Existing and upcoming product lines </li></ul><ul><li>Customization through a digital designer software </li></ul><ul><li>- Allow customers to create different designs which can be saved in the user’s account or shared with other enthusiasts online </li></ul><ul><li>The designed wear could then be ordered online. </li></ul><ul><li>An official blog encouraging consumers to post ideas, answer surveys online about new products and give opinions on how existing products can be improved. </li></ul>
  22. 23. B2B MARKETING <ul><li>A separate division handling B2B marketing </li></ul><ul><li>Catalogues with appealing product images. </li></ul><ul><li>Specially prepared pitches giving out a few sample designs associated with the company. </li></ul>
  23. 24. MARKETING CHANNELS
  24. 25. MARKETING CHANNELS – B2C
  25. 26. MARKETING CHANNELS – B2B
  26. 27. PROFITABILITY ANALYSIS
  27. 28. PRICING STRATEGY <ul><li>VALUE BASED PRICING METHOD </li></ul><ul><ul><li>Normal Nike T-shirt costs >Rs. 700 </li></ul></ul><ul><ul><li>Quality product with the added feature of convenience (Carriage & Storage) </li></ul></ul><ul><ul><li>PRICE SKIMMING STRATEGY </li></ul></ul><ul><ul><ul><li>Premium Price Product </li></ul></ul></ul><ul><ul><ul><li>A Product offering which is innovative and new to Indian Scenario </li></ul></ul></ul><ul><ul><ul><li>Convenience Offering : currently unavailable in alternate products </li></ul></ul></ul>
  28. 29. PROFITABILITY FROM THE PROPOSAL <ul><li>Current Scenario </li></ul><ul><li>Total Market for Branded Apparels in India is around 25000 crores </li></ul><ul><li>Nike has a Market share of 15% </li></ul><ul><li>Revenue from India is around 411 crores </li></ul>
  29. 30. EXPECTED PROFIT <ul><li>Price of the T shirt would be approx. Rs. 1000/- </li></ul><ul><li>Total B2B Revenue would be 153 crores </li></ul><ul><li>Total B2C Revenue would be 125 crores </li></ul><ul><li>Net Profit of 37.5 crores would be earned from total revenue from 278 crores </li></ul>
  30. 31. DEMAND ESTIMATE FOR PROTON
  31. 32. DEMAND ESTIMATE FOR PROTON
  32. 33. NIKE, INC. THE PROTON RANGE (IN CRORES) ESTIMATED PROFITABILITY
  33. 34. QUESTIONS??
  34. 35. THANK YOU

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