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

1. GROUP NO. 2
Group Members:
Elizabath Paul
Saranya S
Neha Raj
Abdul Nafiy A
Shipin P

2. Can you recognise this?

3. HOW WE PROCEED?
Birth of Nike Inc.
Company Strategies
Marketing Strategy
Manufacturing Strategy
Innovation Strategy
Business Strategy
Human Resource Strategy

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. COMPANY STRATEGY
• Nike is listed among the best marketed
brands.
• Nike’s strategy has kept it as the most
valuables sports brand

6. MARKETING STRATEGY

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. 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.

10. 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.

11. 3. Promotional Strategy
a) Sponsorship of Teams and Players
– Football (Clubs): Manchester United, Arsenal,
Barcelona
– Football (National Teams):Brazil, England,
Netherlands, France
– Cricket: India

13. 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.

15. 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.

16. MANUFACTURING STRATEGY

17. 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.

19. 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.

20. •
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.

21. INNOVATION STRATEGY

22. 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.

23. 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.

24. 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.

25. BUSINESS STRATEGY

26. 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.

27. 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.

28. HUMAN-RESOURCE STRATEGY

29. 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

30. • Can you guess the biggest but the
simplest strategy of Nike?

32. Nike THANKS TO ALL