Brief study on the Nike Sneakers revolution in the sports industry, Background of the company, Founders of the Nike, HARVARD CASE STUDY ON NIKE, SNKRS APP/application revolution, Nike Marketing Strategies, Nike colabaration with NBA Championship,

1. NIKE
CHANGING THE SNEAKERS GAME
*CASE STUDY*

2. COMPANY BACKGROUND

3.  The company was founded on January 25, 1964, as Blue Ribbon Sports,
by Bill Bowerman and Phil Knight, and officially became “Nike Inc.”, after the
Greek goddess of ‘VICTORY’ on May 30, 1971.
 Nike headquarters are located in- Beaverton, Oregon (US) , and led by
President, Chairman and CEO – “MARK PARKER”.
 Employed 73000 people and sold its products across globe ( in more than 190
countries across 6 Continent).
 2017- Nike global revenue - $34 billion.
 World’s largest manufacture and seller of Athletic shoes, Apparel , and other
sport equipment.

4. NIKE SUBSIDIARIES
In order to refocus on its core business lines, Nike began divesting of some of its subsidiaries in
the 2000s. It sold Starter in between 2007-2008. The company sold Umbro and Cole Haan in
between 2012-2013. As of 2017, Nike owns two key subsidiaries: Converse Inc. and Hurley
International.

5. MARKET SHARE (US) 2017
36%
16%
11%
5%
4% 4%
3%
0%
5%
10%
15%
20%
25%
30%
35%
40%
NIKE JORDAN ADIDAS SKECHERS NEW BALANCE CONVERSE UNDER ARMOUR
PERCENTAGE
COMPANY
COMPANY

7. Nike’s Initiative – ‘Consumer Direct Offence’, Cut Back the no. of Retailers
The Goal is to better serve the Consumer Personally, but at scale, in a way that
leverages the power of digital.
President of Nike Direct oversaw more than 7000 Nike direct to consumer retail
outlets around the world
Nike service model is simple : Make consumers feel loved by Nike through their
DIGITAL PLATFORM.

8. NIKE APP
NIKEPLUS MEMBERSHIP &
NIKE.COM
NIKE RUN
CLUB
NIKE TRAINING
CLUB
SNKRS

9. SNEAKER CULTURE

10. First Sneaker - (Soft shoe with Rubber soles) – made in 19th century.
Converse - First Sneaker Brand – made Athletic Shoes in 1915.
Nike done the contract with MICHAEL JORDAN & released his debut shoe ‘Air
Jordan’ in 1984 which earned more than $100 million in first 10 months alone.
In the early 1980’s Nike sneakers became a Fashion Symbol.
Nike worked with Supreme (Famous Skateboard Fashion Brand).
Sneakerheads used to wait in lines for hours and paid top dollar for the most
coveted sneakers & in the year 2015, the sneakers outsold female heels sandal in
Europe.

11. NIKE STRATEGY & THE MARKET FOR
SNEAKERS IN 2018
• By 2018, the global market for Athletic footwear was estimated to be close to
$50 Billion annually.
• Nike partnered with famous streetwear designer Virgil Abloh – luxury label
Off White.
• Nike’s business targets to plan the Right Product at the Right Time and at the
Right Price.
• Nike’s Sneaker launches fall into 3 categories:
Explore Invest Scale

12. S23NYC & The SNKRS APP

13. A Tweet by Jordan Shoe Fan caught the attention of Nike Executives
which in turn ends in Acquisition of Virgin Mega - Digital Studio S23NYC
in August 2016.
S23NYC created a feature – ‘MEGALINE’ – that used Gamification – to
make waiting in line in store more Enjoyable.
After getting acquired by Nike the S23NYC added the gamification
feature in the SNKRS APP which is available on all digital platform.
The vision of S23NYC was to make the SNKRS app “ The Ultimate
Sneakers Source”

14. PEEK ON
SNKRS
APPLICATION

16. SEASON 1

17. SNKRS GESTURE UNLOCK

18. SNKRS STASH

19. SNKRS CAM

21. SNKRS SHOCKDROP

22. SEASON 2

23. THE ART OF CHAMPIONS CAMPAIGN
 S23NYC organize the Nike Basketball’s Art of Champions campaign digitally.
 Mission was to bring back the best stories about Nike with Basketball to life
through a series of digital & physical moments.
 In 2015, Nike has signed an 8 year contract with the NBA, worth around $1
Billion and also partnershiped with many Professional Basketball Players.
 During NBA championship Nike has used its SNKRS app and all the 4 features in
order to attract the customers from USA as well as from China.

24. THE CAMPAIGN FOR KENDRICK LAMAR’S
TOUR
 S23NYC teamed up with Superstar Hip-Hop artist ‘Kendrick Lamar’ because of
his Musical Tour and Nike grabbed the opportunity to launch its New Sneakers
range.
 Kendrick and his artists would play 30 shows across the US and Canada.
 S23NYC has launched Various Sneakers range while during the concert and all
the pairs has been sold out in less than 3 minutes.
 Audience in the event get the exclusive access to Limited Products

25. COMPETITORS

27. NIKE INC. REVENUE

28. SOURCE THREE MONTHS
ENDED (28-02-2017)
( in $Million)
THREE MONTHS
ENDED (28-02-2018)
( in $Million)
PERCENTAGE
CHANGE
( in $Million)
NORTH AMERICA 3782 3571 - 6%
EUROPE, MIDDLE EAST, AND
AFRICA
1925 2299 19%
GREAT CHINA 1075 1393 24%
ASIA PACIFIC AND LATIN
AMERICA
1122 1268 13%
GLOBAL BRAND DIVISION 19 21 11%
TOTAL NIKE BRAND REVENUE 7923 8495 7%
CONVERSE BRAND REVENUE 498 483 - 3%
CORPORATE REVENUE 11 `6 -
TOTAL NIKE INC.
REVENUE
8432 8984 7%

29. SUGGESTIONS
• Nike should Widen the Access of SNKRS app in almost all Developed countries ( Currently
present in 19 Countries only).
• In Developing countries like India , they should introduce their Affordable Range of Sneakers
for Middle Class People.
• Rather than Basketball they should focus more on Other Games also like Cricket , Soccer,
Baseball etc.
• As sneakers are now Fashion symbol so in order to Acquire more potential customers they
should get into Partnership with Famous Celebrities Worldwide also.
• Dependency on one product line is not good in Long Run.

30. Executed By-
Vinish Sharma
PIBM College