Nike always adopts latest technology for its product manufacturing and development. This can be seen from the fact that Nike has a website where consumers can design their shoes according to their requirements and tastes. Please authenticate by going to "My account" → "Administration". As Nike stated on February 10th, this organizational change is part of a wider company restructuring that may result in an overall reduction of up to 4% of the company’s workforce. On the basis of age, Nike targets a variety of age groups from young adolescent to middle-aged adults. Started as a small re-seller of an obscure Japanese running shoe (which later became Asics) line in a small shop in Santa Monica, NIKE has grown exponentially over the years into one of the world's most recognizable (and profitable) brands. The company Nike was founded in 1964 by Bill Bowerman and Phil Knight who had located their headquarters near Beaverton, Oregon. People today are more brand conscious where they prefer to buy products which have brand value associated with them. This gives Nike an advantage over its competitors as its name and logo is recognized globally. Looking for a flexible role? Due to the diversified product range, Nike is unable to focus on one main product. Another weakness of Nike is the negative image portrayed by reduced working conditions in the overseas factories. Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of UKEssays.com. Nike’s target market for its shoes, clothes and other accessories are males and females between the age of 13 and 35 years. How many global employees Nike has 2009-2020, Value of the leading global apparel brands 2020. This involves breaking large markets into segments that can be reached more effectively. Although Nike has a large product portfolio, its income is still profoundly dependent on its share of footwear market. Nike promotes products that ooze with style, attitude and self-confidence. NIKE apparel and accessories are designed to complement our athletic footwear products, feature the same trademarks and are sold through the same marketing and distribution channels. While Nike occasionally focuses on Free delivery and returns on every order with Nike Membership On the basis of benefits sought, Nike provides shoes, apparel and equipment for an extensive variety of sports all over the world. However in March 2009, Nike announced its plan to reorganize its global business in order to bring goods closer to the markets and in turn consumers as well as to reduce management overlap. In the fiscal year 2020, Vietnam produced 50%, China produced 22%, and Indonesia produced 24% of total Nike’s footwear. Blog. Nike is exposed to the international nature of trade. CBBE is built exclusively through recall, relevance, and esteem (Keller 1993). Register in seconds and access exclusive features. (July 24, 2020). Nike has different advertisements for men and women of every race and nationality separately. Its famous logo ‘SWOOSH’ can be recognized instantly by anyone. Currently Nike is focusing more on Generation Y market and women. Nike segments its markets on the basis of age, gender, geographic locations, psychographic, benefits sought, and usage. There are different ways to segment markets, these are: Geographic segmentation, demographic segmentation, psychographic segmentation, and behavioral segmentation. Nike infested their market with bright colors, new styles, and technology information pertaining to their products. It also offers products to many different people who have different tastes, interests and needs. Both goals extend NIKE Inc.’s long term financial model of high single-digit revenue growth, mid-teens earnings per share growth and expanding returns on capital. China is another key market for Nike. 2015, Central & Eastern Europe, Greater China, Japan, North America, Other, Total, Western Europe Sales - CSIMarket dollars)." Product development is in its own an opportunity for Nike. The company's headquarters are located near Beaverton, Oregon. Nowadays people are more brand conscious. Hence, this poses a threat to Nike. Nike delivers innovative products, experiences and services to inspire athletes. Since consumers in the footwear industry are price conscious and the market is highly competitive, companies are striving to provide the best possible deals to the consumers. Contents:Letter to Our Shareholders, page 1• Operations Review, pages 2-3 • Financial Highlights, page 4 • 2001 Annual Report on Form 10-K, Insert • Corporate Information, inside back cover therightfocus Stage Stores, Inc. (Nasdaq: STGS) is a Houston, Texas-based regional specialty Also the amount of time and resources in maintaining each of its product line is very high. This caused bad publicity which resulted in decline in sales as people and society demand more socially responsible firm. Principles Of Marketing. By 1984 Nike had supplanted Adidas as the number one selling running shoe company in America. This means it doesn’t have any expenses that may arise out of maintenance of any of the above. (Kotler et al 2010, p277) After evaluating different segments, Adidas adopts market coverage strategy which is differentiated marketing. This creates opportunities as people may think the product could become unfashionable before it wears out, i.e., consumer may think that they need to replace it. You only have access to basic statistics. Along with the decelerated sales labor cost and raw materials prices are increasing, which in turn will affect the profit margin of the company. From simple essay plans, through to full dissertations, you can guarantee we have a service perfectly matched to your needs. Products are mostly sold through its retail stores, independent distributors, franchisees, licensees and also through e-commerce. The largest of these by weight is cured rubber used in shoes soling. “With our acquisition of Umbro, NIKE has extended its position as the biggest football Company in the world,” Parker said. Due to this cost and profit margins are not stable over long periods. The company’s operations are divided into segments based on regional markets. This is not an example of the work produced by our Essay Writing Service. According to Mark Parker, Nike Inc. President and CEO, Nike has competitive advantages in its portfolio with innovative, compelling products that are distinct and relevant to consumers. Nike employees engineered a creative way to keep it out of landfills and convert it into more outsoles, called REGRIND, and are available to public. Nike Inc. specializes in footwear, apparel, equipment and accessory products for men, women and children. Registered office: Venture House, Cross Street, Arnold, Nottingham, Nottinghamshire, NG5 7PJ. Nike derived ~44% of its … Nike’s geographic market consists of major markets throughout the globe. Then you will be able to mark statistics as favourites and use personal statistics alerts. Browse this series on Market Realist: Part 1 - Nike in 2015: An Earnings Smash, a Widening Moat, and Record Highs. High level of competition with Adidas and Reebok is also a threat to Nike as these companies have almost the same product range and target markets. The support accorded to Nike by the US government, particularly in the general macroeconomic stability, low-interest rates, stable currency conditions and the international competitiveness of the tax system, form the foundation critical to Nike’s growth. Nike … Nike's market penetration and geographic expansion strategy are predicated upon building consumer-based brand equity (CBBE) and utilizing specific tactics to diffuse it across unreached demographic and psychographic sets. Since Nike outsources its manufacturing to other manufacturers, it doesn’t have any capital tied up in machinery or equipment, which results in fewer expenses. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! The product could become unfashionable before it wears out, i.e., consumers need to replace shoes. Profit from additional features by authenticating your Admin account. Nike segments its markets on the basis of age, gender, geographic locations, psychographic, benefits sought, and usage. This means Nike has to move closer to the market and continue creating new solutions and product customization. Nike also lays heavy emphasis on Differentiation. In these geographies Nike’s marketing efforts are largely focused on urban areas with high market densities. This means that a company derives 80 percent of its sales from 20 percent of its consumers who always purchase the product of that particular company or brand. The company offers footwear for football, basketball, soccer, baseball, tennis, golf, walking, sport-inspired casual shoes, kids’ shoes and other athletic and recreational purposes. While the south is passionate abo… Overview and forecasts on trending topics, Key figures and rankings about brands and companies, Consumer insights and preferences in various industries, Detailed information about political and social topics, All key figures about regions and countries, Everything you need to know about Consumer Goods, Identify market potentials of the digital future, Technology Market Outlook Please log in to access our additional functions, *Duration: 12 months, billed annually, single license, The ideal entry-level account for individual users. Nike does not have any control over the political and legal environment in that country. The biggest threat for Nike is the economic downturn which will result in the slowdown in purchases. The government of any country must enforce economic policies that will benefit the growth of industries and businesses in that particular country. Nike has different advertisements for men and w… Marketing North American sales for Nike are still 2.5x greater than the next closest market, which is Western Europe. Nike segments market based on world and country region, city and popularity density in different way. Update, Insights into the world's most important technology markets, Advertising & Media Outlook Since Nike is a fashion brand and fashions keep changing. This means that companies are trying to cut down costs from every perspective. It buys and sells in different currencies and hence, costs and margins are not stable over long periods of time due to changing exchange rates. Geographic divisions are a major organizational structure characteristic of Nike, Inc. Other brands of Nike Inc. also continue to increase their contribution to the company’s overall growth strategy. Although owners may deny that Nike is a fashion brand but many people think otherwise. The NIKE Brand is the most powerful asset in the Nike Inc. portfolio which accounts for approximately 85 percent of total revenue. In the first part, we will begin by covering the history o f the company and w e will go over an in-depth Though disciplined operating management, the company still continues to target long range mid teen earnings per share growth. Nike delivered 24% currency-neutral revenue growth in Greater China, led by NIKE Direct, with digital commerce up over 60%. Since Nike outsources its manufacturing to other countries, it doesn’t have any capital tied up in machinery, equipment or factories. Following this plan Nike then decided to develop its market share in North America, Western Europe, Eastern/Central Europe, Greater China, Japan and Emerging Markets. ANNUAL REPORT ON FORM 10-K Table of Contents Page PART I 1 ITEM 1. Business 1 General 1 Products 1 Sales and Marketing 2 United States Market 2 International Markets 2 Significant Customer 3 Orders 3 Product Research, Design and Development 3 Nike’s aim is to push its products in countries that apply to certain sports, which are popular in that particular country. Nike acquired Converse to provide for the increasing demand from Generation Y for retro and classical footwear. NIKE, Inc. is engaged in the design, development, marketing and selling of athletic footwear, apparel, equipment, accessories and services. Statista. Nike is the world market leader in athletic shoes and apparel and operates in more than 200 countries. Nike also operates a ‘futures’ option wherein the retailer can order up to 6 months in advance. Please contact us to get started with full access to dossiers, forecasts, studies and international data. Copyright © 2003 - 2020 - UKEssays is a trading name of All Answers Ltd, a company registered in England and Wales. This is why Steve Prefontaine and Nike were a tremendous tandem in the early years of Nike's existence. Nike in North America Most of Nike’s (NKE) incremental revenue was recorded in its North America market, Nike’s largest geographical segment. Geographic Geographic is simple, yet powerful segmentation basis. Along with these Nike also offers performance equipments which include bags, socks, sport balls, eyewear, electronic devices, bats, gloves, golf clubs, and other equipments designed for sports activities under the brand name NIKE. In 2020, Nike's North American revenue amounted to about 14.48 billion U.S. dollars. Why your go-to-market strategy should be industry focused; Dec. 1, 2020. Europe, Asia, North and Latin America are the main markets in which Nike sells its products, which makes it a truly global organisation. This message clearly defines Nike’s image which is a positive and self-confident nature. *You can also browse our support articles here >. 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