Nike Presentation

Topics
Company & Job Description Career Path Hard and Soft Skills Examples of Work The Good, The Bad, The Ugly Words of Wisdom

The Company
NIKE, Inc. (NIKE), incorporated in 1968, is engaged in the design, development and worldwide marketing of footwear, apparel, equipment, and accessory products. NIKE sells athletic footwear and athletic apparel. It sells its products to retail accounts, through NIKE-owned retail, including stores and Internet sales, and through a mix of independent distributors and licensees, in over 180 countries around the world. Its products include running, training, basketball, soccer, sport-inspired urban shoes, and childrens shoes. It also markets shoes designed for aquatic activities, baseball, bicycling, cheerleading, football, golf, lacrosse, outdoor activities, skateboarding, tennis, volleyball, walking, wrestling, and other athletic and recreational uses. On March 3, 2008, the Company acquired Umbro Ltd. (Umbro), which designs, distributes, and licenses athletic and casual footwear, apparel and equipment, primarily for the sport of soccer, under the Umbro trademarks. On April 17, 2008, it completed the sale of its Bauer Hockey subsidiary. Nike's athletic footwear products are designed primarily for specific athletic use, although a large percentage of the products are worn for casual or leisure purposes. The Company sells sports apparel and accessories covering most of it product categories, which includes sportsinspired lifestyle apparel, as well as athletic bags and accessory items. It markets footwear, apparel and accessories in collections of similar design or for specific purposes. It also markets apparel with licensed college and professional team, and league logos. NIKE sells a line of performance equipment under the NIKE brand name, including bags, socks, sport balls, eyewear, timepieces, electronic devices, bats, gloves, protective equipment, golf clubs, and other equipment designed for sports activities. It also has agreements for licensees to produce and sell NIKE brand swimwear, team sports apparel, training equipment, childrens clothing, electronic devices, eyewear, golf accessories, and belts. The Company also sells small amounts of various plastic products to other manufacturers through its wholly owned subsidiary, NIKE IHM, Inc LY we ended at $18 Billion.

Before there was the Swoosh, before there was Nike, there were two visionary men who pioneered a revolution in athletic footwear that redefined the industry. Bill Bowerman was a nationally respected track and field coach at the University of Oregon, who was constantly seeking ways to give his athletes a competitive advantage. He experimented with different track surfaces, re-hydration drinks and most importantly innovations in running shoes. But the established footwear manufacturers of the 1950s ignored the ideas he tried to offer them, so Bowerman began cobbling shoes for his runners. Phil Knight was a talented middle-distance runner from Portland, who enrolled at Oregon in the fall of 1955 and competed for Bowermans track program. Upon graduating from Oregon, Knight earned his MBA in finance from Stanford University, where he wrote a paper that proposed quality running shoes could be manufactured in Japan that would compete with more established German brands. But his letters to manufacturers in Japan and Asia went unanswered, so Knight took a chance. He made a cold-call on the Onitsuka Co. in Kobe, Japan, and persuaded the manufacturer of Tiger shoes to make Knight a distributor of Tiger running shoes in the United States. When the first set of sample shoes arrived, Knight sent several pairs to Bowerman, hoping to make a sale. Instead, Bowerman stunned Knight by offering to become his partner, and to provide his footwear design ideas to Tiger.

 They shook hands to form Blue Ribbon Sports, pledged $500 each and placed their first order of 300 pairs of shoes in January 1964. Knight sold the shoes out of the trunk of his green Plymouth Valiant, while Bowerman began ripping apart Tiger shoes to see how he could make them lighter and better, and enlisted his University of Oregon runners to wear-test his creations. In essence, the foundation for what would become Nike had been established. But Bowerman and Knight each had full-time jobs - Bowerman at Oregon and Knight at a Portland accounting firm - so they needed someone to manage the growing requirements of Blue Ribbon Sports. Enter Jeff Johnson, whom Knight had met at Stanford. A runner himself, Johnson became the first full-time employee of Blue Ribbon Sports in 1965, and quickly became an invaluable utility man for the start-up company.

He created the first product brochures, print ads and marketing materials, and even shot the photographs for the companys catalogues. Johnson established a mail-order system, opened the first BRS retail store (located in Santa Monica, Calif.) and managed shipping/receiving. He also designed several early Nike shoes, and even conjured up the name Nike in 1971. Around this same time, the relationship between BRS and Onitsuka was falling apart. Knight and Bowerman were ready to make the jump from being a footwear distributor to designing and manufacturing their own brand of athletic shoes. They selected a brand mark today known internationally as the Swoosh, which was created by a graphic design student at Portland State University named Carolyn Davidson. The new Nike line of footwear debuted in 1972, in time for the U.S. Track & Field Trials, which were held in Eugene, Ore. One particular pair of shoes made a very different impression literally on the dozen or so runners who tried them. They featured a new innovation that Bowerman drew from his wifes waffle iron an outsole that had waffle-type nubs for traction but were lighter than traditional training shoes. With a new logo, a new name and a new design innovation, what BRS now needed was an athlete to endorse and elevate the new Nike line. Fittingly for the company founded by Oregonians, they found such a young man from the small coastal town of Coos Bay, Ore. His name: Steve Prefontaine. Prefontaine electrified the packed stands of Oregons Hayward Field during his college career from 1969 to 1973. He never lost any race at his home track over the one-mile distance, and quickly gained national exposure thanks to cover stories on magazines like Sports Illustrated and his fourth-place finish in 1972 in the 5,000m in Munich. Pre challenged Bowerman, Johnson and BRS in general to stretch their creative talents. In turn, he became a powerful ambassador for BRS and Nike after he graduated from Oregon, making numerous appearances on behalf of BRS and sending pairs of Nike shoes to prospective runners along with personal notes of encouragement. His tragic death at age 24 in 1975 cut short what many believed would have been an unparalleled career in track at the time of his death, he held American records in seven distances from 2,000m to 10,000m. But Prefontaines fiery spirit lives on within Nike; Knight has often said that Pre is the soul of Nike.

Nike entered the 1980s on a roll, thanks to the successful launch of Nike Air technology in the Tailwind running shoe in 1979. By the end of 1980, Nike completed its IPO and became a publicly traded company. This began a period of transition, where several of Nikes early pioneers decided to move on to other pursuits. Even Phil Knight stepped down as president for more than a year in 1983-1984, although he remained the chairman of the board and CEO. By the mid-1980s, Nike had slipped from its position as the industry leader, in part because the company had badly miscalculated on the aerobics boom, giving upstart competitors an almost completely open field to develop the business. Fortunately, the debut of a new signature shoe for an NBA rookie by the name of Michael Jordan in 1985 helped bolster Nikes bottom line. In 1987, Nike readied a major product and marketing campaign designed to regain the industry lead and differentiate Nike from its competitors. The focal point was the Air Max, the first Nike footwear to feature Nike Air bags that were visible. The campaign was supported by a memorable TV ad whose soundtrack was the original Beatles recording of Revolution. A year later, Nike built on its momentum from the Revolution campaign by launching a broad yet empowering series of ads with the tagline Just do it. The series included three ads with a young two-sport athlete named Bo Jackson, who espoused the benefits of a new crosstraining shoe. In 1989, Nikes cross-training business exploded, thanks in part to the incredibly popular Bo Knows ad campaign. By the end of the decade, Nike had regained its position as the industry leader, the first and only time a company in the athletic footwear/apparel industry has accomplished such a feat. Nike has never relinquished that position again.

Buoyed by a series of successful product launches and marketing campaigns, Nike entered the 1990s by christening its beautiful world headquarters in suburban Portland, Oregon. In November of 1990, Portland became the first home to a new retail-as-theatre experience called Niketown, which would earn numerous architectural design and retail awards and spawn more than a dozen other Niketown locations around the USA and internationally. While Nike had designed footwear and apparel for golf and soccer for a number of years, the mid-1990s signaled a deepening commitment to truly excel in these sports. In 1994, Nike signed several individual players from what would be the World Cup-winning Brazilian National Team. In 1995, Nike signed the entire team, and began designing the teams distinctive uniform. Nike also signed the US mens and womens national soccer teams, as well as dozens of national teams around the world. In 1996, Nike Golf landed a vastly talented but as-yet-unproven young golfer named Eldrick Tiger Woods for a reported $5 million per year. Competitors laughed and critics howled at Nikes folly, until Tiger won the 1997 Masters by a record 12 strokes. No one is laughing now. Nike also began investing in the sport of cycling, including a promising young cyclist who appeared to be on his way to success until he was diagnosed with cancer. He lost most of his sponsors, but Nike elected to stay with him. In 1999, Lance Armstrongs incredible comeback resulted in the first of what would be seven consecutive Tour de France titles.

Nike rang in the new millennium with a new footwear cushioning system called Nike Shox, which debuted during Sydney in 2000. The development of Nike Shox culminated more than 15 years of perseverance and dedication, as Nike designers stuck with their idea until technology could catch up. The result was a cushioning and stability system worthy of joining Nike Air as the industrys gold standard. Just as Nikes products have evolved, so has Nikes approach to marketing. The 2002 Secret Tournament campaign was Nikes first truly integrated, global marketing effort. Departing from the traditional big athlete, big ad, big product formula, Nike created a multi-faceted consumer experience in support of the World Cup. Secret Tournament incorporated advertising, the Internet, public relations, retail and consumer events to create excitement for Nikes soccer products and athletes in a way no single ad could ever achieve. This new integrated approach has become the cornerstone for Nike marketing and communications. Today, Nike continues to seek new and innovative ways to develop superior athletic products, and creative methods to communicate directly with our consumers. Nike Free, Nike+ and Nike Sphere are just three examples of this approach.

Current Job Description

Senior Product Line Manager, Core Performance Division-Nike Running Manage the Global Footwear Product Line of Nike Running from $75 and under. Have a place on the Innovation Steering committee for new product innovation Drive our Closer to Consumer initiative which strives to move our product closer to market Write the strategic plan which includes consumer silo definitions, marketplace mapping, analysis of our competition, and creation of our product strategy. Manage a Associate PLM who oversees the Womens Running business. Integrate with our Inline running partners to make sure we have a cohesive running line as we Got To Market.

Hard & Soft Skills

Hard skills: Besides the obvious market knowledge the business sides of things is very important, i.e. the financial side of things. I use mostly excel to analyze unit/seasonal forecast, model profitability, and regional breakdown. Creating great product is only half of it, we also need to be profitable. Soft Skills: How you handle yourself in a professional manner is crucial. Be yourself but take your job seriously. Meeting etiquette, treat others as you would like to be treated. How you handle success is as important as a defeat or a mistake. Communication: Interpersonal, Electronic, informal, and formal communication are all included here. Actively listen. If you listen twice as much as you speak your words will mean more. Know who you are working with, i.e. color insights. Red= Be brief. Be bright. Be gone. Obey me Yellow= involve me. Party, more margaritas. Blue= give me details. Organize. Green= show me you care. I have muffins do you want some. Hugs

Marketing Process
Strategic Plan: This is where we do the homework and analysis of the marketplace, the competition, and the Consumer. The focus will range from global to local in its scope. We will try and focus on our industry, but make note of any major or minor changes in the product around us. On the financial side we will break down our history, identify any trends, and build a strategy against it. 3 Year Plan: This is where the data helps support a plan that leads us to a medium or long term goal. The goal will obviously be put the stake in the sand, and show how we will get there. The plan should show a progression of what steps we will take to get there. Current year plan: This plan manages the current year, and day to day look at what seasons and projects we are currently juggling. Seasonal Line Plan: This displays a more focused look at a particular season in the calendar year. It will be highlighted by a theme with a model plan lined up against it. The product creation or design theme will be used as a filter to focus our efforts. Model Briefs: This is a document that shows a laser focus on a specific opportunity, performance problem, consumer, region, and how it should look at to retail. Product design: Depending on the medium this will be anywhere from napkin sketches to illustrator files of the vision for the project. We will deliberate on what the consumer will need and start to focus our efforts. This will evolve from 2D into 3D designs and parts which help our team to make more informed decisions. Color and Materials are applied, which is a critical aspect of product creation. These 2 things are major factors in the decision making. Process checkpoints: We have multiple sessions with our regional and merchandising partners to make sure we have enough of the most relevant product from consumers within their regions.

Resume/Interview Advice
Resume-Try to keep it to 1 page Interviews Dont try and BS if you dont know the answer Answer the question and stop talking. Make and keep eye contact Make it Personal Show and bring tangible examples of your work Sell Yourself

Words of Wisdom
Work Smart and Hard Multi-tasking and Organization is key. Attitude, be an energy giver. Team Player vs. ladder climber. Results = Buzz. Get Real world Experience Be realistic. Keep your head in the clouds but your feet on the ground. You create your own luck and Opportunities. Face to face conversations and phone calls are always more impactful than a text or email. Put the Blackberry down. Be Prepared. Stay Focused. Have a nice work and life balance. Dont let the past define you.

VALUE CHAIN OF NIKE

Just do it!
Prepared by:

Hemali anadkat (2) Banty haldhruwala (35) Monica mota (57) Hiral Parikh (61) Nishra Shah (94) Amita Ganava

What is value chain?

The network of firms that bring products to market, from companies that produce raw materials to retailers and others that deliever finished products to consumer. Economic value is added through the coordinated management of the flow of phisycal goods and associated information at each stage of the chain. We can say that a value chain is a string of companies working together to satishfy market demand

THE VALUE CHAIN:

FIRMS INFRASTRUCTURE SUPPORT ACTIVITIES HRM PRODUCT DEVELOPMENT AND TECHNOLOGY PROCUREMENT

INBOUND LOGISTICS

OPERATIONS

OUTBOUND LOGISTICS

MARKETING AND SALES

SERVICES

PRIMARY ACTIVITIES

NIKE s Introduction:
Nike means the greek goddess of victory Major publically traded sports wear and equipement supplier base in the U.S Head quartered in the portland metro politen area of oregon, near beaverton. Worlds leading suppliers of athletic shoes and apparel and a major manufacturer of sports equipments with revenue in access of $16 billion USD in 2007. Employed over 30,000 people world wide.

Contd
Nike markets its products under its own brand as well as nike gold, nike pro, nike plus, air jordan , nike skate body,jeam starter, and subsidaries including cole haan, hurley international, umbro and converse.

Support activities:
1. Infrastructure:
Diversify business portfolio with new acquisitions Empowerment of top management. Structure of matrix. Focus on key countries, key factors, critical compliances. Drive a lean effective compliance process through strategic knowledge, remediations and varification. Drive a shared accountability and work place ownership of CR compliance. Encourage work ethics. Financially decipilne. Calculate risk taking. Strong financial position with minimal long term debts.

Contd..
2. Human Resource:
core values of the companies are honesty, competitiveness and team work. Operates with minimum of hierarchy. Lot of collabration and consensus decision making. Use matrix organisation. Balances creativity with structure and decipline. Strong management team and good corporate strategy in both north american and overseas market. Socializing Mix of new hires and promotions Promotions= consistency / company knowledge New hire employees= business minded

Contd
Network structure. Athelete management. Monetoring labour audit, compliance visit, brand audits.

Contd
3. Technology:
First mover advantage in E-Commerce. Diversity and variety in products offered on the web (footwear, apparel, sporting equipments etc). Innovative designs in footwear enabling customers to design their own shoes online. AIR SOLE technology- specially used.

Contd.
4. Procurement: Just in time strategy. components arrive as they are needed. finished goods shipped after leaving assembly line. Safety stock buffer for lack of flexibility in supply chain. Bullwhip effect information about product demand gets distorted as it passes from one entity to next across supply chain.

Role of Inventory in the Supply Chain:

Improve Matching of Supply and Demand Improved Forecasting Reduce Material Flow Time Reduce Waiting Time Reduce Buffer Inventory

Economies of Scale Cycle Inventory

Supply / Demand Variability Safety Inventory

Figure Error! No text of

Seasonal Variability Seasonal Inventory

Inventory Classification:
INVENTORY

PRODUCTION APPLICATION

ABC ANALYSIS

DEMAND TYPE

OTHER

Raw Materials Components WIP Sub-assemblies Finished Goods

A Items B Items C Items

Independent Dependent

MRO

Primary Activities:
1.

Inbound logistics: Low production cost. Outsource non-core activities. Focus on their core-competencies of
Product design Maketing AIR SOLE Tech.

Due to virtual relationship with the companies who assemble nike products allows them to switch to companies that provide low labour cost & a quality product. Worldwide supply chain project used by nike help it to reduce inventories and investment risk.

Contd
Shared process through a wholly owned subsidiary called nike. In house manufacturing ( Nike IHM) produces many of specialized rubber, foam and plastic components used in its products. Nike IHMs primary facilities are located in portland oregon and st. louis, missain.

Contd..
2. Operations:
Centralisation of R&D in oregon. Application of NSRL. Nike requires manufacturing partners to devote environmental resources. Nike provides technological resources to its resources centre such as R&D centres, laboratories. Nike personnel in each factory to assist factory management. working on low and no packaging options.
reduce box styles from 18 to 2. Corrugated card board. 100% post consumer content.

Contd
No heavy metal inks. no glues or solvents Boxes manufacture in zero net discharge facilities.

Contd
3. Outbound logistic:

Strong control over its own distribution channel. Powerful suppliers one company is producing 40% of worldwide shoes. Ability for forward integration. Due to virtual relation with suppliers.
Reduce administrative cost. Reduce pay roll cost. Can increase the speed their product flows through supply chain This allows them cut down on the amount of time required from the initial design to, production and then distribution.

Contd..
Nike is using HP servers , software and consulting service to run their new supply chain project.

Contd..
4. Marketing and sales:
Brand recognisation and reputation. Higher allocation of marketing budgets. Use endorser in every sport. Emerging brand name. Strong customer base. Diversity and variety of products offer on the web. Ecommerce reduce the cost of good sold thus improving the bottom line.

Contd..
5. Services:
Improved service to meet customer/consumer needs through the use of the technology. Improved process , information & product quality. Provide customize shoes for customers. A company called planner has installed touch screen system in nike stores to allow customers to build their own shoes. Nike also allows customers to order customize shoes online through their company web sites

Thank You
Real leadership is not about prestige, power or status.It is about responsibility.

NIKE
A Public Relations Approach

 Robert Albright Jessica Joye Suzanne Little

Matt Minchew Jason Waller Megan Wilson

Mission Statement
To lead in corporate citizenship through proactive programs that reflect caring for the world family of Nike, our teammates, our consumers, and those who provide services for Nike

What Nike Does

Create authentic athletic footwear, apparel, equipment and accessories for sports and fitness enthusiasts Through subsidiaries, design and sell a line of mens and womens dress and casual shoes and accessories

Principle Products
Began with long distance running shoes in 1963 Past 17 years: Air Jordan basketball shoes Wide range of shoes, apparel and equipment

Our Heroes
Michael Jordan Tiger Woods Michael Johnson Mia Hamm Celebrity endorsements lend credibility and notoriety to products

http://www.nikebiz.com/story/hero_1.shtml

Financial Indicator
A growth company that has not grown Impact of specific products (Air Jordan's, teenage market)
3 Month Stock Performance

Brand and Logos

The Swoosh only cost $35 Memorable, simple in form, workable in all sizes, invokes a strong signal

Nike Dominance
Comparison of Annual Revenue
10

2001 Annual Sales (In Billions)

9 8 7 6 5 4 3 2 1 0

Nike

Fila

Reebok

New Balance

Adidas

Corporation

Athletic Shoe Market Share, 2000

Athletic Shoe Market Share, 2000
Timberland 2.9% K-Swiss 3.6% New Balance 9.4% Saucony 1.4% Nike 39.2%

Asics 2.1%

Reebok 10.9% Adidas 15.1%

STRENGTHS
Strong and meaningful response to labor criticisms High quality products and good overall reputation Phil Knights management and leadership Brand recognition and effective marketing

WEAKNESSES
Poor communication of labor practices
Insufficient line of affordable shoes Uninformed factory workers

Nikes Overall Reputation

Nike's Overall Reputation
40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%

Well Below Average Above Well No Below Average Average Above Opinion Average Average

Nike Compared to Competition

Nike Compared to Competition
35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
Well Below Average Above Well No Below Average Average Above Opinion Average Average

Fairness of Nikes Labor Practices

Fairness of Nike's Labor Practices
35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
Well Below Average Above Well No Below Average Average Above Opinion Average Average

Quality of Nikes Products

Quality of Nike's Products
45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
Well Below Average Above Well No Below Average Average Above Opinion Average Average

OPPORTUNITIES
Increased sales due to the strengthening economy More positive public perception of Nikes social responsibility Growth through increased presence in low- to mid-priced shoe market

THREATS
Increased awareness of human rights Growing competition Competitors attracting female consumers Mounting disapproval of alleged corporatization of college athletics

Recommended Action
A Closer Look At Labor Practices And Potential Sales

OBJECTIVE 1
To increase positive public perception of Nikes labor practices by 20% by April 16, 2003

STRATEGY 1-1
Increase communication of positive steps Nike is taking concerning labor practices Key Publics: Media Consumers (esp.university students)

TACTICS
Create fact sheets outlining minimum wage discrepancies among countries Circulate Letters to the Editor highlighting positive aspects of Nikes labor practices Bring a visible Nike representative to college campuses

TACTICS
Create focus groups to assess Nikes labor practices Distribute a video news release promoting Nikes efforts in the global community

STRATEGY 1-2
Make changes to improve Nikes current labor conditions Key Publics: Foreign government agencies Nike employees Social activist organizations

TACTICS
Create an anonymous system to protect whistleblowers Specify and inform employees of their rights and responsibilities under the Nike code of conduct Provide employees with time and money to enroll in Nikes educational programs Ensure surprise visits are a surprise

EVALUATION
Repeat surveys at six month intervals to gauge public perception Revisit with focus groups to record their opinions of improvements

OBJECTIVE 2
To increase American shoe sales by $100 million by April 16, 2003

STRATEGY 2-1
Establish a better presence in the affordable shoe market

Key Publics: Media Consumers only willing to spend less than $85

TACTICS
Develop advertising tactics to promote Nikes Presto line of shoes ($60-$85) Aggressively target budget consumers through sales promotions and discounts on mid-priced shoes Build a stronger relationship with moderately priced retailers through sales associates Increase number of Nike outlet stores offering discounted merchandise

STRATEGY 2-2
Establish a competitive presence among female consumers

Key Publics: Media Female consumers(potential and real)

TACTICS
Create advertisements that showcase Nikes female shoes by featuring professional athletes and non-celebrity females who use Nike products Develop a shoe named for a celebrity female athlete, such as Mia Hamm, comparable to Air Jordans Actively pursue more female athletes for endorsements and advertisements by extending competitive contract offers

EVALUATION
Measure growth of Separately record domestic shoe sales of midsales at six month priced shoes and intervals womens shoes

QUESTIONS?