Manoj Kaushik (S11MMMMM00453)

Sudip Kumar Das (S11MMMMM00765)

Vivek Wamorkar (S11MMMMM00416)
SMP-07, NIIT Imperia Bangalore Center
Jul-07-2011
Prepared and Submitted By
Ashish Kasangottuwar (S11MMMMM00405)
Paresh Ashara (S11MMMMM00440)
Ranjeet Shriwastva (S11MMMMM00452)
Introduction
Sportswear is a niche segment of retailing

Retailing of sportswear products in India is growing due to the rise in per capita
income, changing lifestyle, and consumer preferences

India has been a manufacturing hub for sports products and the number of
brands sourcing from India has tremendously increased after liberalization

RNCOS research paper Sports Wear Market in India, anticipates the current
size of the Indian sportswear industry to be worth INR365.8 Billion, which is
expected to grow at a CAGR of around 33% during 2010-2014

The top sports shoe brands in India are Reebok, NIKE and Adidas

NIKE, the largest seller of athletic footwear and athletic apparel in the world
with subsidiaries in over 200 countries across the world, has attempted to keep
itself on the cutting edge of technology

Entry Strategy
Business Model conceptualized leveraging outsourcing from Japanese
manufacturers for low-cost and high margin
NIKE brand launched in 1972
Entered Indian market in 1995 via licensing route through Sierra Group
Established good distribution network and retail channels
Initial days didnt yield any success due to ignorance of Indian
consumer preferences
NIKE was wasting dollars on promoting its brand through
international sports persons, Reebok roped in top Indian cricket
players to endorse its brand
Realizing the importance of localizing its brand, in December 2005,
NIKE won the bid to supply official kit to the Indian cricket team




Competition
Consumer Decision Making - Model
Need recognition
Information search
Evaluation of alternatives
Purchase decision
Post purchase behavior


Unique Value Proposition
NIKEs unique value proposition has been on the innovative design,
durability and quality
Innovation has been a contact mantra of NIKE since its inception


NIKEs 3 Value creating
resources -
Design/R&D for new
products
Marketing to create and
drive the demand, and
Distribution to make
certain they are getting the
latest most innovative
products to customers
quickly


Unique Value Proposition (Contd.)
Great Value Creator
Concentration of resources, Processes, and People
It grew the depth of these critical expertise and
competencies rather than grew the breath of what
it did for more diverse customer types
Outstanding job of achieving
maximum profitable growth,
high productivity,
low cost and
the flexibility to respond to a fast changing consumer
taste
Strategic Positioning
NIKE is one of most respected brand in footwear industry throughout the
world. It reaches to maximum number of people through strong brand
endorsement

4 Ps of Marketing -
Product - range of products from sports footwear, apparel, timewear and
equipment

Promotion - Apparel sponsors of Indian Cricket Team since December 2005,
Brand Ambassador in Baichung Bhutia for football

Price - positioning itself in terms of design, quality and technology, so
commands premium pricing across product categories

Place - started its India business through licensing route initially and soon
established itself as a subsidiary of the parent US company in 2005



Strategic Positioning
Sports Shoes
Sportswear
Timewear/Accessories
Sports Equipment
Licenses
Multi-brand Shops
Owned Outlets
Exclusive Franchises
Domestic
Export
Middle Class
Upper Middle
New Rich
Rich Class
Customers Markets
Products Distribution
Uses Price Leadership Strategy and Value Based Pricing
NIKE spends lot of money to promote its brand as top of the range
Customers buy the product for the NIKE swoosh symbol and are willing
to pay high prices regardless of actual value
Psychological pricing strategy for premium shoes (e.g. Air Max) to convey
superior quality
Price range ending with 99 e.g. INR 3999.00
Segmented pricing strategy for the same product category/brand based on
target customer (e.g. Air Max for adults and children)
Price difference could vary by one third
Used Price skimming to gradually soften/reduce the price after the product
has been in the market for some time and new products are launched

Pricing
Channels & Distribution
NIKE is a highly centralized and extremely focused company
Management concentrated on a few core corporate functions, such as brand building and
supply chain management
A dedicated sales force sold NIKE products to retailers or, in a limited number of
countries, to distributors
NIKE has relocated production of its footwear and clothing to 600+ contract factories in
40 countries (as of 2011 list) where its third party production units employ more than
800,000 workers
From its headquarters in Beaverton, Oregon, NIKE manages a worldwide virtual
company combining internal R&D functions with a low cost manufacturing strategy
NIKE has 15 contract manufacturers in India (located in Karnataka, Tamil Nadu, Andhra
Pradesh, Madhya Pradesh, Uttar Pradesh, Maharashtra, Uttrakhand, and Haryana) that it
has outsourced the manufacturing of its footwear and apparel
Market Expansion strategies
Shared distribution channels among varied product lines lowering cost
Large Size provides opportunity for more leverage against competition
Efficient use of production facilities lowers cost



Market Communications
Mission Statement
To bring inspiration and innovation to every athlete in the world.
"If you have a body, you are an athlete." - Bill Bowerman
Goal
To carry on Bill Bowermans legacy of innovative thinking, whether to
develop products that help athletes of every level of ability reach their
potential, or to create business opportunities that set Nike apart from the
competition and provide value for our shareholders
Logo
The Nike "Swoosh" is designed by Carolyn Davidson in 1971, represents the
wing of the Greek Goddess
Slogan
Just Do It - campaign seemed to capture the corporate philosophy of
grit, determination and passion.

Market Communications
Advertising and Campaigns
Just Do it - Just Do It succeeded in that it convinced consumers that
wearing Nike for every part of your life was smart (the shoes are designed
for comfort) and hip (everyone else is wearing them, you too can belong to
this group)
Bleed Blue- Interactive sport marketing campaign, Bleed Blue, to support
the 2011 Cricket World Cup in India
Brand Ambassadors
S Sreesanth Cricket Air Zoom Yorker Cricket shoes
Baichung Bhutia football
Indian Cricket Team from BCCI Official Kit Sponsor
United By Blue campaign post Indias win in the 2011 Cricket World Cup
Tennis tie up with Bhupathi Tennis Academy for tournament sponsorship
Market Communications
Advertising
Conventional / Traditional Media
Besides TV, the traditional kinds included billboards,
magazines, newspapers, radio and movie theater
commercials.
Digital / New Generation Media
The digital kinds included e-mail messages, Internet
banner ads, social networking Web sites, video games
and video-sharing Web sites like YouTube.
Nikes Promotional History
1970s
1980s
1990s
2000s

Global 10 km race series participating in 25 global cities.
The idea was to see how many people from around the world would do a
10,000-meter race, all starting at the same time.
Advertised as a perfect opportunity to enjoy all that the world has to offer as
well as keeping fit and healthy while raising money for charity.
Nike + Human Race
Nike + Human Race
Over 800,000 runners logged on
Participants logged about 3,000,000 miles
Created Buzz amongst the media and bloggers
Increased consumer interaction by bring runners
together under the Nike banner
Increased traffic to stores worldwide
Sold more Nike Sport Bands
Sold Human Race gear
Raised money for charity
Nike
Print
Interactive
Media
Viral
Marketing
Sponsorship
Buzz
Marketing
Events
Promotions
Outdoor
Media
Email
Social
Media
Nike
Print
Interactive
Media
Viral
Marketing
Mobile
Marketing
Sponsorship
Promotions
Outdoor
Media
Social
Media
Nike ID Campaign
Market Communications
Very Competitive Organization
No capital expenditure on factories, workers
No. 1 Global Sports Brand in the world
Strengths
Doesnt have diversified range of sports products
Premium Pricing eats in to margins due to pressure from
retailers
Weakness
Ongoing fusion of sports and lifestyle
Women's segment offers long term potential
Increasing consumer demand for functional apparel
Opportunities
International nature of trade currency exchange fluctuations
lead to unstable costs and margins
Market for sports shoes and garments becoming competitive
Consumer price sensitivity
Threats
Future
The consumer goods industry is highly volatile and the sales development is
impacted by the consumer confidence and spending
Growing importance of sports to fight obesity
Ongoing fusion of Sports and Lifestyle
Emerging markets as long-term growth drivers
Word of Caution
Beware of Government action in low-wage countries for labor employment (avoid child
labor)
Beware of political threats in countries they operate
Aging population in western economies could lead to shift in demand from sports
athletics shoes to comfort shoes
Technology leverage for all future marketing strategies
Beware of competition commission
Price rises of raw materials and supply shortages


Thank You!