Nike Departmental Study in Surat City
Nike Departmental Study in Surat City
NIKE
SUBMITTED BY:
TYBBA (SEM-5)
GUIDED BY:
OF BBA PROGRAMME
(2023-2024)
AFFLIATED TO
Place: Bilimora.
Date:
Sign. of Examiner: _______________
DECLARATION
I hereby declare that this project report entitled “DEPARTMENTAL STUDY OF NIKE
IN SURAT CITY” Is result of authentic work carried out during the period of 8 weeks
under the guidance/supervision of staff B.B.A department of [Link] COLLEGE OF
ARTS AND SCIENCE (BCA & B.B.A SELF FINANCE COURSE,BILIMORA). I also
declare that the data provided in this report are to the best of my knowledge, the study
carried out by me as a part of programmed structure.
I further declare that the personal data and information received from all respondent
during the survey has not been submitted to any other university or institute for any
other purpose and it is used for academic purpose only.
ACKNOWLEDGEMENT
I take this opportunity to thank all those who have contributed their support in preparing
this report. Firstly, I would like to express my deep sense of gratitude towards
[Link] COLLEGE OF ARTS & SCIENCE (BBA & BCA SELF FINANCE
COURSE, BILIMORA) for providing me this opportunity to study marketing depth as
part of course curriculum.
I am very thankful to our principal sir [Link] SIR for his keen interest and for
providing me the opportunities as well as the facilities in my project work.
Last but not least, I am also grateful to my parents, colleagues, friends whose
continuous support has always boosted my moral towards working on this project and I
am also grateful to the co-operation of respondent of survey, without their sincere
response was not possible.
EXECUTIVE SUMMARY
This report is all about to show a Marketing plan for Nike‘s products; with reference to
older offerings the report shows the plan that how can Nike offer new products in the
market. With respect to this the report contains comprehensive marketing plan
components including company analysis (Nike‘s current and future status), situation or
market analysis and competitors analysis; the report shows the Nike‘s objectives and
marketing strategies in terms of its 4ps that is it is shown that Nike can offer and
increase its product range by offering other related products as aerobic products to its
customers and set value-based pricing strategy accordingly, and for new offerings it can
increase its other media other than commercials that is it can focus more on social
media to promote its new products and it may expand its business in other countries as
China, Middle-East etc. Beside this, the financial budget of this marketing plan has been
discussed which is been forecasted by reviewing Nike‘s previous years revenue and
marketing expenses figures. Also execution plan as well as contingency plan has been
shown which is thoroughly depends upon Nike‘s senior management and team work
which would make its objectives possible new offerings.
INDEX;-
SR PAGE
NO. CONTENT NO.
01 CHAPTER 1: GENRAL INFORMATION 1
Name and location of company 2
Name and location of other branches 4
Year of Establishment 4
Brief history 5
Founders 7
Key peoples of Nike 9
Vision and mission statement 9
Values shared 10
Organization structure 10
Hierarchy 11
Controlling systems 11
08 BIBLIOGRAPHY 65
CHAPTER 1:-
GENERAL
INFORMATION
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[Link] COLLEGE OF ARTS & SCIENCE, BILIMORA Page 1
NAME & LOCATION OF THE COMPANY
Type Public
ISIN US6541061031
Industry Apparel
Accessories
Sports equipment
Subsidiaries ↑Converse
Website [Link]
YEAR OF ESTABLISHMENT
Nike was founded in, 25 January 1964, Eugene, Oregon, United States.
Nike, originally known as Blue Ribbon Sports (BRS), was founded by University of
Oregon track athlete Phil Knight and his coach, Bill Bower man, on January 25,
1964. The company initially operated in Eugene, Oregon as a distributor for Japanese
Shoe maker Onitsuka Tiger, making most sales at track meets out of Knight's auto
mobile.
In its first year in business, BRS sold 1,300 pairs of Japanese running shoes grossing
$8,[Link] 1965, sales had reached $20,000. In 1966, BRS opened its first retail store at
3107 pico Boulevard in Santa Monica, California. In 1967, due to increasing sales, BRS
Expanded retail and distribution operations on the East Coast, in Wellesley
Massachusetts.
By 1971, the relationship between BRS and Onitsuka Tiger came to an end. BRS
Prepared to launch its own line of footwear, which was rebranded as Nike, and would
Bear the Swoosh newly designed by Carolyn Davidson. ] The Swoosh was first used by
Nike on June 18, 1971, and was registered with the U.S. Patent and Trademark
Office on January 22, 1974
In 1976, the company hired John Brown and Partners, based in Seattle, as its
first advertising agency. The following year, the agency created the first "brand ad" for
Nike, called "There is no finish line", in which no Nike product was shown by 1980, Nike
Had attained a 50% market share in the U.S. athletic shoe market, and the
Company went public in December of that year.
Through out the 1980s, Nike expanded its product line to encompass many sports and
Regions throughout the world n 1990, Nike moved into its eight-building World
Headquarters campus in Beaverton, Oregon. The first Nike retail store, dubbed Nike
town, opened in down town Portland in November of that year.
Phil Knight announced in mid-2015 that he would step down as chairman of Nike in
2016. He officially stepped down from all duties with the company on June 30, [Link] a
company public announcement on March 15, 2018, Nike CEO Mark Parker said Trevor
Edwards, a top Nike executive who was seen as a potential successor to the Chief
executive, was relinquishing his position as Nike's brand president and would Retire in
August.
In October 2019, John Dona hoe was announced as the next CEO, and succeeded
Parker on January 13, 2020 In November 2019, the company stopped selling directly
Through Amazon, focusing more on direct relationships with customers On June 24,
2021, during an earnings call with investors, CEO John Dona hoe stated that "Nike is a
Brand that is of China and for China", in response to a question about competing
Against Chinese brand.
William Jay Bower man was an American track and field coach and co-founder of
Nike,Inc. Over his career, he trained 31 Olympic athletes, 51 All-Americans, 12
American record- holders, 22 NCAA champions and 16 sub-4 minute milers.
VISION STATEMENT
MISSION STATEMENT
Our mission is to bring inspiration and innovation to every athlete in the world. [If
you Have a body, you are an athlete.] This mission drives us to do everything possible
to Expand human potential. We do that by creating groundbreaking sport innovations,
by Making our products more sustainably, by building a creative and diverse global
team And by making a positive impact in communities where we live and work.
ORGANISATIONAL STRUCTURE
HIERARCHY
North America, Western Europe, Central & Eastern Europe, Greater China, Japan
and Emerging markets are the regional divisions of Nike structure. The operations of
each division are separate from each other. The regional divisions are given autonomy
in taking decisions in their regions.
CONTROLLING SYSTEMS
The Nike Company currently uses flow charts to depict step by step processes when
Mapping out ideas for events such as new product launch or holiday transitions, run
(Trend charts) to show what items are selling more/better in a particular area and cause
And effect(fishbone diagrams) to show the outcome of the selected reports or ideas.
Continuous improvement is used in the company so that it can continue to grow and
Prosper.
Through the use of opinions in which customers lend during customer service surveys as
Well as their store visits help to keep the company aware of how to become the best in the
Retail Clothing market. Supplier certification as well as inspection at the time the goods
Are finished is also used for inspection to ensure quality service. Nike also implements
The Six Sigma Practices in their routine when assessing the customer service aspect of
the Company. Through the use of customer surveys and feedback from customers, the
company is able To work on the weak areas that can become beneficial.
CHAPTER 2:-
PRODUCTION DEPARTMENT
Nike six main materials used in all their [Link] uses many materials to make all
their products but there are only six main Materials That make up the majority of all their
products mass. First the polyester, 19 Percent of the polyester Nike uses is recycled.
Nike helped recycle 82 million plastic Water Bottles To make polyester out of. The world
cup jerseys Nike made in 2010 were 100% recycled polyester each using eight plastic
bottles. The solid plastic bottles are
Eva foam is a very environmentally friendly material used in many shoes. The main
producers of Eva Foam are located in China. EVA stands for Ethylene Vinyl Acetate.
Eva Foam is one of the most efficient and cheap materials that Nike uses in their shoes.
The next material Nike widely uses is cotton.
Nike is proud to say that they are using more and more organic cotton every year and
Plan to keep this trend going. Organic cotton means that it is harvested without
chemical Pesticides, no Fertilizer, And Defoliants. Nike gets most of its cotton from
suppliers in China, India, Turkey, and the United state Of America. Nikes plan is to have
at least 10% of organic cotton in all of their appeal that contains cotton by 2015.
Synthetic Leather is also used often in Nike products. Synthetic leather is a man made
fabric is made to look and feel like real leather but function better than real leather. Nike
uses Synthetic leather in many of their products because it is cheaper than real leather,
tends To be More breathable, and easier to clean. China and Taiwan are the leading
supplier of synthetic leather worldwide.
Nike also uses real leather that is LWG certified. Nike is one of the world‘s largest
Users of white leather and teams up with tanners, suppliers, and other distributers to be
most efficient. Nike does not believe in harvesting leather from animals in the Amazon
because they believe that it is contributing to the deforestation but before 2011 they
were using leather taken from the Amazon. Nike gets their leather from tanners and
suppliers in China and Vietnam. Nike uses 1,500 different material vendors, suppliers,
and companies. All the companies that they buy from are independent businesses.
Nike uses Grab it Stack it material handing robot system to produce up to 600
pairs of shoes in an eight-hour shift. Stack it is used by Nike to assemble the layers of
material that comprise the shoe's upper (the top portion of the shoe that covers the foot)
20 times faster than a human.
Nike's range of products include shoes, jerseys, shorts, cleats, base layers, etc.
for Sports activities such as association football, basketball, track and field, combat
sports, Tennis, American football, athletics, golf, ice hockey, and cross training for
men, women, and children.
SERVICES
The company provides a wide range of athletic footwear, apparel, equipment, and
Accessories to athletic trainers, runners, and cyclists.
PROCESS USED
To make the shoe the worker first cuts all the material in the shapes and forms they
need to be in, they then sew the pieces together on the upper section above the sole.
Nike uses grab its Stack it material handing robot system to produce up to 600
pairs of shoes in an eight-hour shift. Stack it is used by Nike to assemble the layers of
material that comprise the shoe‘s upper (the top portion of the shoe that covers the foot)
20 times faster than a [Link] the electro adhesion technology developed, Grab its
next step in the development of Stack it involved finding the right robot on which to
mount its electro adhesive gripper.
The company is using RFID and artificial intelligence to monitor inventory. Nike (NKE
4.74%) has been investing in technology to track its inventory. This includes putting
RFID chips in its shoe packaging so it can know how its shoes are selling Inventory
control methods are processes and programs you use to plan, order, store, and manage
inventory. In general, there are two methods of inventory control: manual and perpetual.
With manual inventory control, you must conduct physical counts of inventory regularly.
This is time-consuming and often involves shutting down all operations to get it done.
With perpetual inventory control all inventory is tracked in real-time using inventory
management software. Barcodes are scanned when products arrive, are used, or shipped.
This gives you access to the most accurate data at all times but is more costly than manual
counting.
The key to effective inventory control methods is finding a balance between controlling
costs and being able to meet customer demand. If your inventory control methods lower
cost, but lead to issues with dead stock or backordered products, it's not effective.
The Nike business strategy is clear, invest in building your brand through emotional
marketing and sports celebrity endorsements, develop products that have high-quality,
market-leading technology and buy out competing sports brands.
However, what we don‘t have is the material break down of each FOB cost. In the
industry, this is known as the BOM – short for bill of materials. This itemizes the cost of
each and every component used in the shoes, based on their consumption in a single
pair. Think of it as a list of ingredients in a cooking recipe, except that the list is marked
with how much each ingredient cost you to purchase.
For a typical running shoe, the BOM will add the consumed cost of synthetic leather
threads, logos/inks, trims, midsole, outsole etc.
cost of making the expensive sole molds is spread across/amortized a particular model
too. The BOM information is confidential, restricted to the product team involved in
creating a particular shoe model. For that reasons, we do not have individual BOM‘s
andcosting sheets. The same article brings an interesting summary of a shoe cost. Take
a look on the picture which shows the cost anatomy of Nike shoe.
When it comes to manufacturing "God is in the BOM" and it is really important for
companies. The information about BOM cost is scattered among different departments,
people and functions. To combine it in a single place with all references pointing on the
right information sources, people and operations can be an interesting exercise for
many manufacturing companies.
Control The Nike Company currently uses flow charts to depict step by step
processes when mapping out ideas for events such as new product launch or holiday
transitions, run (trend charts) to show what items are selling more/better in a particular
area and cause and effect(fishbone diagrams) to show the outcome of the selected
reports or ideas. Continuous improvement is used in the company so that it can
continue to grow and prosper. Through the use of opinions in which customers lend
during customer service surveys as well as their store visits help to keep the company
aware of how to become thebest in the retail clothing market.
Supplier certification as well as inspection at the time the goods are finished is also used
for inspection to ensure quality service. Nike also implements the Six Sigma Practices in
their routine when assessing the customer service aspect of the company. Through the
use of customer surveys and feedback from customers, the company is able to work on
the weak areas that can become beneficial.
Nike‘s 3 elements of the service product bundle. Tangible (Explicit Service) Nike
provides the customers with a variety of sporting goods and apparel, which can be worn
causally or used athletically. The clothes are produced in a wide variety of factories and
sold by retailers all over the world. Psychological (Implicit Service) The look and feel of
Nikes products.
The style type and design that The name brand gives. The personal mindset Nike gives
to the customer knowing that they have a high quality product. Physical (Facilitating
Goods) The actual clothing or equipment worn or used after purchasing the items. The
shirts, shoes, hats, sporting goods, pants, and all other accessories Nike produces1.
Planning, Organizing• A strategic plan is something that a •A SWOT analysis could be
created company needs in order to succeed for Nike by a manager and at anything.
Nike needs to develop employees will read it and will see this plan and move forward
from an assessment of how the company this fiscal year in 2010. The manager is doing in
terms of strengths, of Nike needs to set goals and weaknesses, opportunities, and
determine the best way to achieve threats. These will keep them. Companies
employees on its toes Core values upon the crew at Nike Functional organization is
something and ask the question: What does this that Nike might want to take into
organization stand for? A revamp of consideration when thinking about all of this is need if
Nike is to make changein their organization. They sales revenue increase in 2010.
Nike has contracted with more than 700 shops around the world and has offices
located in 45 countries outside the United States. Most of the factories are located in
Asia, Including Indonesia, China, Taiwan, India, Thailand, Vietnam, Pakistan,
Philippines, and Malaysia.
PRODUCT:-
The company provides a wide range of athletic footwear, apparel, equipment, and
accessories to athletic trainers, runners, and cyclists. The majority of Nike‘s sales are
attributed to selling its footwear to wholesale distributors in North America.
Nike's range of products include shoes, jerseys, shorts, cleats, base layers, etc. for
sports activities such as association football, basketball, track and field, combat sports,
tennis, American football, athletics, golf, ice hockey, and cross training for men, women,
and children.
SERVICES:-
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic
footwear, apparel, equipment, and accessories worldwide. The company offers NIKE
brand products in six categories, including running, NIKE basketball, the Jordan
brand, football, training, and sportswear.
1. PRODUCT MIX
This element of the marketing mix enumerates the sporting goods company‘s
organizational outputs, also known as the product mix, which is the set of products
offered to target customers. Nike Inc.‘s marketing strategy involves growing the business
through market-based changes in its product mix.
For example, the sports and leisure footwear business‘s research and development
investments produce new products and enhanced versions of current products, resulting
in corresponding improvements in the 4P variables. As Nike‘s marketing mix evolves, the
business adds or changes its operational processes, such as the manufacturing of
shoes, apparel, and equipment for various sports. This evolution also comes with new
technologies to improve the product mix and other 4P variables, as indicated in Nike
Inc.‘s generic strategy and intensive growth strategies.
At present, the sporting goods company‘s marketing mix includes a wide variety of
product categories and brands. However, broadly speaking, the following categories
represent Nike‘s product mix:
1. Footwear
2. Apparel
3. Equipment and accessories
Shoes are the most popular products from Nike Inc., and the company‘s overall
marketing strategy gradually adds more product lines to strengthen the product mix. For
example, the company now offers running shoes, tennis shoes, and shoes for a variety
of other sports, including cricket.
Nike also sells apparel, such as jerseys, shorts, and related products. Furthermore, the
company‘s marketing mix includes product lines for accessories and equipment, such as
golf clubs. These products are available under a number of the company‘s brands,
including Air Jordan and Converse. Based on this element of the marketing mix, Nike
expands its product mix to address the needs of its target markets and market
segments, thereby making the 4Ps more suited to market characteristics.
The Nike Cortez – Retro-looking, the natural fit was originally designed for running.
The Nike Air Max– It is the jewel in Nike‘s sneaker crown. The first visible air
visibleshoe.
The Air Huarache – Mostly famous under the age of 18. Super lightweight,
high-techrunning shoe.
The Nike Blazer – Casual cool-looking sneakers also used for skateboarding.
Designedto make a big swoosh.
The Nike Air Force 1 – Most iconic basketball sneaker. It is popular as a
casual streetshoe as well as a sports shoe.
Nike‘s Prices, This element of the marketing mix identifies the prices that maximize
profits while attracting the desired share of the multinational market for leisure and sporting
goods. Nike‘s technology investments relate to marketing strategies to offer its products at
a premium price. Still, the company‘s marketing mix considers current market conditions in
setting its price points and price ranges. Based on these considerations for this 4P variable,
Nike Inc. applies the following pricing strategies in its business:
In the value-based pricing strategy, Nike Inc. considers consumer perception about the
value of its products. In the marketing mix context, perceived value determines the
maximum prices that consumers are willing to pay for the company‘s sports shoes, apparel,
and equipment. In contrast, the premium pricing strategy uses high prices, based on a
premium branding strategy that establishes Nike products as higher in quality and value
than competing products.
Also, a relevant point is that, based on the PESTEL/PESTLE analysis of Nike Inc.,
premium statuses and premium prices are linked to the socio cultural and economic trends
in the industry environment. The footwear and apparel business adjusts its price ranges
and price points according to such trends, to ensure that this 4P variable suits the market.
In this element of the marketing mix, Nike Inc. successfully uses its pricing strategies to
maximize its profits while emphasizing high value in promoting its products and brands.
3. PLACE MIX
This element of the marketing mix outlines the venues where the sporting goods
company‘s products are sold, accessed, or distributed. This 4P variable focuses on
optimizing Nike‘s market reach. The company sells its sports shoes, apparel, and
equipment through a large number of outlets worldwide, including large retailers and
specialty outlets. In this context of the marketing mix, the following places or venues form
Nike‘s distribution strategy, arranged according to significance in the company‘s marketing
strategy and performance:
1. Retail stores
2. Nike Online Store
3. Nike town retail outlets (company-owned)
These outlets are company-owned and allow access to business and market intelligence
that supports corporate strategic management with regard to Nike‘s marketing strategies
and tactics for current and emerging products. Based on this element of the marketing mix,
the co mpany has considerable control on the distribution of its products, especially through
its online store and Niketown retail outlets, making this 4P variable an information
contributor to strategic formulation. However, this element of the marketing mix also shows
that Nike has limited control on the distribution and sale of its products at other retail
outlets.
This marketing mix element, also known as marketing communications mix, involves
the tactics that Nike uses to communicate with its target markets. The company depends
on the effective promotion of its products to maintain a strong brand image, which is one of
the strengths determined in the SWOT analysis of Nike Inc. This part of the sporting goods
company‘s marketing mix uses promotional tactics to communicate with customers about
its products, and persuade them to purchase these products. The following are Nike‘s
promotional activities, arranged according to significance in the firm‘s marketing strategies:
1. Advertising
2. Personal selling
3. Direct marketing
4. Sales promotions
5. Public relations
Advertising is one of the biggest contributors to Nike‘s ability to attract customers. In this
4P variable, the company heavily relies on advertisements, especially those that involve
high-profile celebrity endorsers, such as professional athletes and sports teams. This
element of the company‘s marketing mix also includes personal selling through sales
personnel who persuade target consumers to buy the company‘s sporting goods.
For example, sales personnel at Nike town retail outlets are trained to use such persuasion
tactics. On the other hand, in the context of the 4Ps, the company‘s direct marketing
activities involve promoting its products through direct communications with colleges, local
sports teams, and other organizations. In addition, in terms of sales promotions, Nike
occasionally provides discounts and special offers to attract more customers and generate
more sales.
Moreover, the marketing mix includes public relations, in which the company sponsors and
provides financial support to organizations, such as community-based networks, to promote
As many youngsters are on social media, Nike also promotes its products through
social media by connecting with millions of people and interacting with them
through Instagram, Twitter, Facebook, and Youtube.
Nike Just Do It Campaign launched in 1988 which motivates all the people to do their
job efficiently. To date, this slogan is a trademark of Nike. The company‘s Latest hash
tag #You Can‘t Stop Us for their new campaign tells us that every sports field is equal
which has gone viral on social media. Nike does such inspiring campaigns of different
themes from time to time and gains the emotional trust of their customer.
MAJOR COMPETITORS
1. Adidas
2. Reebok
3. Puma
4. Fila
5. Converse
6. New balance
7. Under armour
8. K-swiss
9. Asics
10. Li Ning
11. Vans
12. Skechers
13. Brooks
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SPECIFIC DISTRIBUTION CHANNEL
NIKE distributes its products through three major channelsBy selling products
towholesalers in the US and international markets
By direct-to-consumer (or DTC) sales, which include in line and factory retail outlets
(see graph below) and e-commerce sales through [Link]
Direct to Customer
Selective Distribution
Kotler explains, ―Profits are negative or low in the introduction stage‖ (Kotler et al., 2006,
p. 335).
At these rather demanding times, Nike Inc. has, in many ways, little to worry about, for
it is simply and truly extensively equipped—in experience, resources, ability, and
capability. With all these, Nike Inc. must strongly establish product attributes, benefits,
and features of the insole. Within just a few months‘ time, Nike Inc. can usher in a new
era in sports insole technology.
With strategic campaigns in advertising and marketing, Nike insole awareness can be
built and solidified in the minds of the targeted athletes and sports wear enthusiasts,
and even more to those who are already loyal brand users. With the spread of word-of-
mouth advertising, especially with availability of the internet, Nike Inc. must only ensure
that the product will speak for itself as it has made superb quality part of its tradition.
However, in every way, Nike Inc. must not be overconfident in its projection, for ever-
lurking competitors shall be waiting on the wing and are keyed in to its every move.
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MARKET SEGMENTATION
The process of identifying the segments will vary from company to company. For Nike,
its market segmentation involves four categories - geographic, demographic,
psychographic, and behavioral.
For Nike's demographic segmentation, the firm included various age groups, gender,
and the customer's financial status. Nike has classified its products according to gender
and group, typically between 15 and 55 years old. The company also categorizes its
products from men, women, and kids. Nike offers promos, discounts, or cuts prices to
reduce costs in special cases. The company's special offers sometimes fall on special
occasions to entice customers to buy their products. It's Nike's way to have customers
buy products that they cannot afford before the discount.
The presence of physical stores in different parts of the world is one of Nike's strategies
under its geographic segmentation. This segment acknowledges that each country has
varied lifestyle habits and cultures. The company introduced different products for
various countries that meet the customers' needs. Nike conducts multiple promotional
campaigns in the US, Europe, Australia, Asia, Africa since sports vary in regions and
cities. You might notice that most commercials in the US focus on baseball and football,
while in Europe, ads refer to soccer.
Nike also customizes its campaigns in New Delhi, India, by promoting cricket equipment
and rugby for England and Sydney. Nike's most significant markets include North
America, China, and Western Europe, where the firm performs segmentations more and
focuses on urban areas.
POSITIONING STRATEGIES
Positioning is all about placing the company's brand in the market with other
competitors. Nike has strategically positioned its brand as a market leader for sports
equipment that provides innovative and premium quality technology. Nike's swoosh
logo, "Just Do It" slogan, and its promotional initiatives to connect to magnificent
achievements of great athletes convinced its customers that it's a victorious and
ambitious brand. Nike' speaks' into athletes' hearts through meaningful and unique
feelings, making the firm exceptional from its competition. The company has also
solidified its place in fashion, where a part of its products defines specific markets'
lifestyles.
There are different pricing strategies that Nike used effectively for expanding its
branding all over the world. Nike implements its pricing strategy based on the product‘s
understanding and determining which price point will be best for their products. Nike was
able to raise its price range while other U.S. apparel industries dropped their pricesand
offered heavy promotional discounts. In 2014, Nike implemented its new pricing strategy
after determining from a market analysis that its customers appreciated the value that the
brand provided.
of Nike
Strategy
Nike
Strategy
customer (Stokes, 2012). In 2010, Nike created a division called Nike Digital Sport
(DS).DS provides skilled resources, budget, and coordination across the enterprise
(Cendrowski, 2012). Nike‘s goal was to create a combined consumer experience that
shapes responds to the evolving preferences of consumers (Cendrowski, 2012). Nike
DS leads most customer-facing digital projects, releasing products under the Nike Plus
brand. Personnel,designers and a team of marketers work together to develop new
digital innovations. Together, they work to find new ways to mine large amounts of
highly accurate customer data, which is a key strategic asset for marketing and product
development in the highly competitive digital space. Nike plans, in the future, to become
ever-closer to each of its customers around the world.
I think in the future, Nike should considering incorporating a link similar to [Link]
to the Nike web site. Customers can click on the link and contact Nike in real time via
text-chat software hosted by a second party such as a live person. Customers can click
on a text-chat button and the site launches a new window and have questions answered
by a live representative. Customers can continue to browse Nike while a support
representative answers their question(s). If after asking the question a customer is still
having difficulty finding the information, the representative from Nike online can simply
Customer(Stokes, 2012). In 2010, Nike created a division called Nike Digital Sport (DS).
DS provides skilled resources, budget, and coordination across the enterprise
(Cendrowski, 2012). Nike‘s goal was to create a combined consumer experience that
shapes responds to the evolving preferences of consumers (Cendrowski, 2012). Nike
DS leads most customer-facing digital projects, releasing products under the Nike Plus
brand. Personnel, designers and a team of marketers work together to develop new
digital innovations. Together, they work to find new ways to mine large amounts of
highly accurate customer data, which is a key strategic asset for marketing and product
development in the highly competitive digital space. Nike plans, in the future, to become
ever-closer to each of its customers around the world.
I think in the future, Nike should considering incorporating a link similar to [Link]
to the Nike web site. Customers can click on the link and contact Nike in real time via
text-chat software hosted by a second party such as a live person. Customers can click on
a text-chat button and the site launches a new window and have questions answered by a
live representative. Customers can continue to browse Nike while a supportrepresentative
answers their question(s). If after asking the question a customer is still having difficulty
finding the information, the representative from Nike online can simply send the page to the
customer with the information that he or she was seeking for.
This might impose a high cost to Nike starting out, but the increase in sales will quickly
cover the expenses and further enhance the company‘s customer support and
satisfaction.
Nike manufactures shoes also athletic clothing such as shorts, shirts, jackets and under
armors; wristbands, bag packs, jerseys and socks are also sold by Nike (Rao, 2012).
The Nike slogan, Just Do It, have placed it‘s brand in the mind of consumers, through
the recognition of it‘s products and promotional tools used worldwide (Rao, 2012).
Customer Relationship Management (CRM) is focusing on meaningful, long term
relationships and not immediate profit with the customers (2010, p.202).
According to the research, in 2012, Nike launched a new business division called Nike
Digital sport (NDS). The objective of NDS was designing to develop technologies that
allow the users to track their personal performance while Nike collected and stored data
relating to customer needs. Because of NDS, Nike has been able to communicate more
effectively with customers about their needs. Nike also has it‘s own social networking
service called Nike+ (Rao, 2012). This social networking service focuses on building
social networks and relationships among people and communities. Nike has built
relationships between the company and customer by understanding the customer‘s
CRM programs implemented by Nike are mainly operational and strategic. For example,
Nike Fuel enables customers to record their progress through the use of Nike Plus
devices. These devices are designed to update customers on the latest Nike sports
trends and insights, and allow them to communicate with Nike. Another CRM program
implement by Nike is Nike + Connect apps. It is a free app developed by Nike that
uploads customer‘s Nike+ data from plus devices to their accounts.
Nike also created a Nike+ running app that enables customers to share their
experience on social media sites such as Twitter and Facebook. According to the
research, Nike reaches over millions of fans.
Existing Nike employees can view job openings on the internal web and apply direct to
the SSC resourcing center electronically. Active recruiter then handles the application
Process from receipt to job offer. The key stages in the Process are detailed
below:
A job request is received from the employing department and this is discussed with the
central resource in team. A job requisition is completed and approval sought if it
involves a new position of additional headcount. Once finalized the job is posted on the
system and applications are invited from internal and external candidates as appropriate
At the same time the recruiter will search the ―future interest‖ database for already
registered potential candidates with the job profile details and interviews are scheduled
The system then matches candid held in the active recruiter files.
A shortlist is produced from the system, sent to the line manager The introduction of
Active Recruiter into the business provides a number of avenues for people to apply for
jobs at Nike External applicants can apply direct to the Nike internet site for specific jobs
or for more general speculative job opportunities. Electronic links have been established
with external web based recruitment organisations such as Monster board to provide
further job postings opportunities to attract candidates to Nike More conventional
resourcing processes are also used including newspaper advertising and Search
organizations for more senior positions.
Selection is the process of identifying and selecting the right candidate for that job.
Transparent
Timely and cost effective
Equitable
Free from conflict of interest
All recruitment will be based on agreed job descriptions and person specifications.
Recruitment and selection must be conducted as an evidence-based process and
candidates should be assessed against agreed selection criteria, based on relevant
knowledge, skills, competencies, experience and qualifications to perform the role as
outlined in the person specification. All decisions must be recorded. Short listing must
be undertaken by at least two individuals who are involved in the interviewing process.
Interviews should normally be conducted by at least two people, and all interviews for
one post must be conducted by the same people. In order to promote equality of
opportunity selection committees should, wherever possible, be of mixed race and
gender composition. Any skills tests (e.g. presentations) must be directly related to the
role and measured against objective criteria, and presentations for one post must be
assessed by the same persons. Candidates must be notified of the details of any skills
test when they are invited for interview. Interview questions must relate to the job
requirements as exemplified in the person specification and the candidate‘s suitability
for the position.
The person specification should be used as the basis for determining the interview
questions. The choice of appoint will be determined by the majority view of the
interviewers.
2022 79,100
2021 73,300
2020 75,400
2019 76,700
2018 73,100
2017 74,400
2016 70,700
2015 62,600
2014 56,500
2013 48,000
2012 44,000
2011 38,000
2010 34,400
2009 34,300
ATTENDANCE MAINTENANCE
Nike matches employee donations and offers volunteer pay, which means Nike gives
the employee $10 per hour for hours volunteered that they can donate to the
organization they choose. And it gives retail store employees time on the clock to serve
as weekly volunteer coaches in their communities
Nike has approximately 1 million employees spread out across 715 factories in over 44
countries. Of those 715 factories, Nike only owns 73 manufacturing centres located in
the United States whereas the other 642 are contract factories that Nike source product
from. Each of these factories are to follow Nike‘s Code of Conduct which states the
rules and regulations they must follow in order to be in association with Nike. Each of
the factories must have a set of policies and procedures in affect which are not only
posted in the factories, but also brought to employees attentions through initial training
as well as yearly review. Nike‘s training covers four sections, lean manufacturing,
Human Resource Management (HRM), health & safety, and environmental compliance.
All training documentation must be signed off by a supervisor, dated, documented and
kept for 3 years to ensure training accuracy among all employees and legal reasons.
Through lean manufacturing Nike is trying to build the employees skills naturally by
empowering them with a voice to help create innovative solutions to increase
productivity in the factories. In 2012 up-to-date training was provided to the contract
factories and focused on ways ―to engage employees in problem solving and
continuous improvement‖ (Inc., Make Today Better - Labor, 2014) throughout the
productivity line.
Health Insurance
Life Insurance
Dental Insurance
Vision Insurance
Temporary Disability Insurance
Prepaid Legal
Long-term Disability Insurance
Severance Pay
Scholarship
Casual Dress/Atmosphere 4
Life Insurance/Disability 4
Cell Phone 2
For Black Employees and Friends Nike's Black Employee & Friends Network (BEN)
offers a strong support system for black employees to facilitate a successful transition
into Nike's corporate culture.
SPECIFIC HR POLICIES
Minimize the costs associated with high employee turn over Improve retention of skills,
knowledge, motivation and morale, which in time impact Productivity Give employees
job security and money in their pockets.
PERFORMANCE APPRAISAL
Consequently, this company has devised mechanisms for gathering data from workers
anonymously. The 360-degree feedback has been helpful in streamlining operations in
this corporation and promoting cooperation between employees and their supervisors.
STRATEGIC HRM
Nike, Inc. (NYSE: NKE) is a major publicly traded sportswear and equipment supplier
based in the United States. The company is headquartered near Beaverton, Oregon,
which is part of the Portland metropolitan area. It is the world's leading supplier of
athletic shoes and apparel and a major manufacturer of sports equipment with
revenue in excess of US$18.6 billion in its fiscal year 2008 (ending May 31, 2008).
As of 2008, it employed more than 30,000 people worldwide. Nike and Precision
Castparts are the only Fortune 500 companies headquartered in the state of Oregon,
according to The Oregonian.
Out of 731 Nike employee reviews, 79% were positive. The remaining 21% were
Constructive reviews with the goal of helping Nike improve their work culture. The
Marketing team, with 92% positive reviews, reports the best experience at Nike
Compared to all other departments at the company. The Business Development team
Offered the most constructive feedback, with 80% of that department's reviews
constructive in nature.
Other Long Term Assets, Total 1,322 1,526 2,921 2,326 2,011
The Company uses derivative financial instruments to reduce its exposure to changes in
foreign currency exchange rates and interest rates. All derivatives are recorded at fair
value on the Consolidated Balance Sheets and changes in the fair value of derivative
financial instruments are either recognized in Accumulated other comprehensive
income (a component of Total shareholders‘ equity), Long-term debt or Net
income depending on the nature of the underlying exposure, whether the derivative is
formally designated as a hedge and, if designated, the extent to which the hedge is
effective. The Company classifies the cash flows at settlement from derivatives in the
same category as the cash flows from the related hedged items. For undesignated
hedges and designated cash flow hedges, this is primarily within the Cash provided by
operations component of the Consolidated Statements of Cash Flows. For designated
net investment hedges, this is within the Cash used by investing activities component of
the Consolidated Statements of Cash Flows. For the Company‘s fair value hedges,
which are interest rate swaps used to mitigate the change in fair value of its fixed-rate
debt attributable to changes in interest rates, the related cash flows from periodic
interest payments are reflected within the Cash provided by operations component of
the Consolidated Statements of Cash Flows. Refer to Note 16 — Risk Management and
Derivatives for more information on the Company‘s risk management program and
derivatives.
Nike is looking to reduce lead times for its orders from 60 days to a mere ten
days by redesigning its logistics network, nearshoring more facilities, improving
contract manufacturer relationships and investing in automation, Quartz reports.
By the end of 2018, Nike plans to have installed a minimum of 1,200 new
automated machines at its Asian suppliers‘ factories, in order to speed cutting,
cementing, shoe assembly, and sole creation
In the past, Nike‘s product cycle began with a ―futures order‖ months in advance.
This would then prompt more than 1 million workers at 566 factories to produce
an estimated 1.3 billion units and ship them through 75 distribution centers to
more than 30,000 retailers in 190 countries.
But now, the company seeks a business model where ―consumer demand is our
signal to anticipate and demand,‖
By 2023, together with Flex, we plan to produce tens of millions of pairs
nearshore with more than 25% of those volumes delivered through NIKE Direct
on a short lead time responsive model
Generally, raw materials are purchased directly by the independent contractors and
suppliers which manufacture our branded footwear, apparel and equipment. Tanneries
currently supplying leather for Nike products are located in China, Vietnam, Indonesia,
South Korea, Taiwan, Thailand, Australia, and Brazil
KEY TAKEAWAYS
Nike is the largest seller of athletic apparel and footwear, generating nearly
$37.5 billion in sales.
Most of its products are sourced from China, Vietnam, Indonesia, and Thailand.
Major suppliers include Pou Chen, PT Pan Brothers, Fulgent Sun International,
Delta Galil, and Eagle Nice.
Business requires EXTERNAL and INTERNAL analysis in the form of swot and
PESTLE Ensure feasibility and set objectives and goals.
1. Strong Brand Awareness and Brand Value– Nike is one of the most recognizable
brands in the world as its name alone is memorable, easy to pronounce, and very
unique. Its swoosh symbol is easily recognized by everyone. According to Inter brand,
2. Huge Customer base – Nike has millions of customer from around the world who
loyally follow Nike‘s trends, participate in Nike events, and even provide customer
feedback. Due to its huge popularity, Nike‘s market cap has grown to $232 billion as of
Jan 2022.
3. Aimed For Sustainability – Nike‘s CEO Mark Parker has addressed that they will
continue to acknowledge the environmental issues in the communities. The CEO
ensures that Nike will help to contribute in finding a solution against these
environmental issues.
4. Iconic Relationships – Nike‘s long-term partnership with Michael Jordan has proved to
be beneficial in terms of sales for the company. Their collaboration resulted in ―Air
Jordan 1 Shoes‖. Additionally, Nike teamed up with the famous basketball player to
help design the ―Air Jordan 1 Shoes‖.
5. Side Brands – Nike‘s ability to maintain and enhance its side brands such
as converse and Hurley have enabled it to enjoy unparalleled success for decades.
7. In-house Professionals – Nike has a team of professionals that design its shoes and
other athletic accessories. Nike believes that their business has flourished due to the
thorough research that is conducted for each product.
respectively. The brand has successfully utilized social media and marketing
campaigns to target more customers.
10. High Market Share – Nike is a market leader in footwear industry. Nike has captured
approximately 39% of the global athletic footwear market and 13% of global athletic
apparel market.
1. Poor Labor Conditions in Foreign Countries – In the last 20 years, Nike has been
consistently targeted regarding their poor labor conditions. These issues include forced
labor, child labor, low wages, and horrific working conditions that were deemed
―unsafe‖.
2. Retailers Have a Stronger Hold – Nike‘s retail sector makes Nike weak due to its
sensitivity against pricing. 65% of Nike products are sold directly to wholesalers or
retailers. With retailers serving as their core customers, Nike does not put up a fight
against their pricing structures whatsoever.
about 39% of Nike’s sales came from the North America, while the rest of 61% came
globally. Despite its fame, Nike depends on the U.S for substantial sales and growth.
5. Lawsuits:
o Four former female Nike employees filed a class-action lawsuit against the company in
August 2018. According to these women, Nike has a toxic company culture for women.
The women filed their case against the sportswear company claiming that the company
violated the Equal Pay Act. The women said the company engaged in systematic
gender pay bias where men were paid more than women for the same amount of work.
on the brink of collapse. If the crisis discourages sporting events for longer, Nike‘s
losses can be catastrophic.
7. Contradicting Strategies: Nike pledged to shift all its facilities to 100% renewable
energy with net-zero carbon emissions under the ―Move to Zero‖ scheme.
While the Strategy is great and welcomed, it contradicts Nike‘s strategy that favors innovation
over sustainability. This creates the perception that Nike is not committed to addressing climate
change and its pledge is just a marketing stunt.
1. Emerging Markets – Although Nike already has a presence in many foreign countries,
there is still plenty of opportunities for Nike. This is because emerging
markets like India, China, and Brazil are gradually flourishing.
4. Cutting ties with big retailers: Nike has decided to cut ties with some of the biggest
multi-brand retailers and wholesale partners. According to the report, Nike will no longer
work with wholesale retailers such as Zapoo’s, Dillard’s, Fred Meyer, Bob’s Stores,
etc. The step is taken for better product positioning and greater customer experience.
5. Acquired Artificial Intelligence Start-up – With its vast financial resources, Nike can
acquire small or medium companies or startups. It recently acquired predictive analytics
platform – Celect to expand its online sales capabilities and predict
customer‘s shopping behavior.
6. Merges with the Metaverse – Recently, Nike acquired RTFKT, a digital shoe-making
company. Yes, you heard that right, the company designs shoes, but for the virtual
stratosphere only. However, RTFKT also claimed that it partnered with FEWOCiOUS (a
young artist) to sell real shoes along with their digital versions. Nike is banking on the
opportunity to market their digital shoes on the Metaverse, where players can use their
Metamask wallets to purchase different types of in-game merchandize.
1. Counterfeit Products – Counterfeit products can significantly affect the revenue and
reputation of Nike. The company deals globally and the risk of counterfeit products has
become higher. A number of merchandisers and retailers offer counterfeit Nike products
at lower prices. The low-priced products are made from low-quality materials but still
have the Nike label. This can tarnish the image of the brand as the customers might feel
that Nike has started producing low quality products.
7. Trade Tensions – Nike depends on different markets across the world evidenced by
the recent increase in its stocks rallied by an increase in sales in China. With China and
the US as its biggest markets, a large chunk of Nike‘s sales will be threatened if the
trade tensions between the two giants escalate.
9. Risk to Kangaroo Population – Nike has been accused of putting the Australian
kangaroo population at risk of extinction. The leading athletic brand uses kangaroo skin
to manufacture leather football shoes. Animal rights activists and advocates have urged
Nike to rethink its strategies and to use plant-based alternatives. So far, Nike hasn‘t
Nike employees receive their compensation in the following ways: base salary, annual
cash bonuses, and stock grants, which come in the form of Restricted Stock Units
(RSUs) and Restricted Stock Awards
LIST OF POLICIES
Respect for Human Rights in Nike's Supply Chain. Nike does not own or operate the
facilities which produce our products.
Commitment to Core Labor Rights.
Forced Labor.
Freedom of Association.
Discrimination and Gender Equity.
Compensation.
Working Hours.
Commitment to a Healthy and Safe Working Environment.
REFERENCE BOOKS:-
Marketing management by PHILIP KOTLER (2005): 11th Edition
[Link] (4ps)
[Link]
(market segmentation and positioning strategies)
[Link]
,Promotion,customers%20to%20buy%20their%20products. (promotion tools used)
[Link]
nike.214291/ (recruitment & selection)
[Link] (num of
employees)
[Link]
(safety p)
[Link]
nike.214291/ (recruitment & selection)
[Link] (feedback)
[Link]
(accounting procedures)
[Link]
consumer/508606/#:~:text=Nike%20is%20looking%20to%20reduce,investing%20in%20
automation%2C%20Quartz%20reports. (purchasing lead time)
[Link] (packing)