Nike brand equity

1. NIKE BRAND EQUITY

2. NIKE BRAND EQUITY PYRAMID
◼ the commercial value that derives from consumer perception of the brand name of a particular product
or service, rather than from the product or service itself.

3. IS BRAND EQUITY ACCOUNTED FOR THE ANNUAL REPORT?
◼ Brand equity is considered to be an intangible asset because the value of a brand is not a physical
asset and is ultimately determined by consumers' perception of the brand.
◼ A brand's equity contributes to the overall valuation of the company's assets as a whole. Positive brand
equity is achieved when consumers are willing to pay more for a product with a recognizable brand
name than they would pay for a generic version of the product.
◼ Brand equity is more than trademarks that identify products and services.. Branding is a serious, long-
term investment that must deliver Return On Investments (ROI
◼ Using the right metrics to measure brand value, equity and activities are crucial – as KPIs and
benchmarks provide information about business progress and any adjustments needed

4. FINANCIAL FIGURES OF NIKE
◼ In annual report , NIKE’s brand equity is
represented by the goodwill and in tangible
asset value and following factors help us to
identify how strong is the brand equity growing:
◼ Amortization
◼ Trademarks
◼ Identifiable intangible assets
◼ goodwill

5. BRAND EQUITY WITH RESPECT TO SENIOR MANAGEMENT
◼ “NIKE’s success underscores our ability to drive both profitable growth and significant shareholder value. In
fiscal 2016, we not only expanded our leadership position, we also set the foundation for long-term growth
across every dimension of our business. ” said Mark Parker, President and CEO, NIKE, Inc.
◼ Nike senior management believes that investments represent a fundamental shift in how they do business.
They are not only accelerated our mission of serving the athlete – but also envisioned the future of sport. In
fiscal year 2016, the results of this approach came to life like never before:
• Revenues grew 6% to $32.4 billion
• Diluted earnings per share increased 17% to $2.16.
▪ Nike team state that these factors are the main factors for the increasing brand equity :
• Product innovation
• Personalised performance
• Manufacturing revolution

6. Recent Merger and Acquisitions by the company
2016 - Acquisition of Virgin Mega by Nike
▪ Objective behind Acquisition - To help Nike launch a new "digital studio" based in New York City
▪ For expanding the community and functionality of Nike's core mobile experiences.
▪ Nike's commitment to investing in digital to grow its business.
▪ CEO Mark Parker added: "Mobile innovation and personal services are dominating the landscape. That's why
we invest in integrating digital and physical retail seamlessly, giving our consumers better access to the products
they want"

7. HOW BRAND EQUITY SHOULD BE REPORTED IN THE ANNUAL
REPORT
◼ Brand equity should be exclusively be reported in the annual report as it would restore the faith of
investors and stakeholders who are currently unsure of how the value of the brand is impacting the
market performance of the stock
◼ There should be separate notes by the management about the impact of brand on gaining market share
◼ Any merger or acquisition undertaken by the company should be clearly mentioned in the annual report
with specific details as to what “equity” has the acquired brand brought in