Sample Mekko4 Presentation

1

Mekko Graphics Sample Charts

Market Analysis of the

Athletic Footwear Market

2

Introduction

• These charts illustrate how the Mekko Graphics 4 software can be used with

Microsoft PowerPoint to produce strategic charts

• One or more charts are included for each chart type

– in the Notes section, there is a description of each chart

– the charts can be copied and pasted into your own presentation

– they can then be modified to replace our data with your own data

• Our example: a strategic market analysis of the athletic footwear market

• Each slide has a message (a tag line) that highlights the key message of the

slide

• In almost all cases the data is real and is derived from three sources:

– Sporting Goods Intelligence (www.sginews.com)

– Sporting Goods Manufacturing Association (www.sgma.com)

– Nike (www.nikebiz.com)

http://www.sginews.com/

http://www.sgma.com/

3

Marimekko Chart (1 of 3)

Source: Sporting Good Intelligence (www.sginews.com)

0

20

40

60

80

100%

Footwear Sales in $ Million

Nike

U.S.

Int'l

$6,437

Reebok

U.S.

Int'l

Licensed

$2,635

Adidas

U.S.

Int'l

Licensed

$1,874

Fila

U.S.

Int'l

Licensed

$1,031

U.S.

Int'l

$590

Nike dominates its top four competitors with a mix of U.S. and international sales.

4


0

20

40

60

80

100%

Footwear sales in $ Million

Nike

U.S.

Int'l

$6,437

Reebok

U.S.

Int'l

Licensed

$2,635

Adidas

U.S.

Int'l

Licensed

$1,874

Fila

U.S.

Int'l

$1,0

31

Con

verse

Int'l

$590

New

Balanc

e

$555

ASI

CS

$548

Puma

$375

Others

U.S.

Int'l

Licensed

$3,708 Total = $18,223

Ked

s

$265

Airwalk

$205

Nike dominates its other competitors with a mix of U.S. and international sales. Some smaller competitors are focused on the U.S. and others have an international focus.


5


0

20

40

60

80

100%


U.S.

Others

Converse

Fila

Adidas

Reebok

Nike

$8,135

Int'l

Others

ASICS

Fila

Adidas

Reebok

Nike

$8,455

Licensed

Others

Puma

New

Balance

Converse

Adidas

Reebok

$1,633 Total = $18,223

Top five competitors by market. The U.S. market is more consolidated than the international and licensed markets.


6

Bar-Mekko Chart

0

20

40

$60

Average Price per Pair

average price $42.50

Women's

$41

Men's

$51

Juniors'

$30

$6.1$6.7 $1.5 $0.2Sales (in $billion)

119.0162.6 48.7 10.5Pairs Sold (in millions)

Total = 340.8 MillionPairs sold

$22

While more women’s footwear is sold, the average sales price is higher for men’s footwear.


7

Cascade (or Waterfall) Chart (1 of 3)

0

5

10

$15B

Sales by Category (in $ Billion)

Basketball

$3.0B

Crosstraining

$2.5B

Running

$2.3B

Athleisure

$1.8B

Walking

$1.2B

Hiking

$0.9B

Tennis

$0.8B

Aerobic

$0.5B

Sports

sandals

$0.3B

Baseball/Softball

$0.2B

Soccer

$0.2B

Other

$1.1B

Total

$14.8B

Basketball, cross-training and running are the three largest categories of athletic footwear.


8

Horizontal Cascade Chart (2 of 3)

0 5 10 15

Basketball $3.0B

Cross training $2.5B

Running $2.3B

Athleisure $1.8B

Walking $1.2B

Hiking $0.9B

Tennis $0.8B

Aerobic $0.5B

Sports sandals $0.3B

Baseball/ Softball $0.2B

Soccer $0.2B

Other $1.1B

Total $14.8B



9

Cascade (or Waterfall) Chart (3 of 3)

Source: Nike annual report (www.nikebiz.com)

0

200

400

600

800

$1,000

Change in Income and Expense Items

Nike Net Income Change Between 1999 and 2000 in $ Million

Net Income2004

$451.4

Revenue

$218.2

Cost ofSales

$89.7

Selling &Admin

-$179.8

OtherExpenses

$45.0

IncomeTaxes

-$45.4

Net Income2005

$579.1

Nike’s net income grew through revenue increase and cost of sales savings, tempered by an increase in selling and admin expenses.

10

Cluster Bar Chart

0

1,000

2,000

3,000

$4,000


Nike

$3,797

$2,640

Reebok

$1,229$1,098

$308

Adidas

$490

$1,172

$212U.S.

International

Licensed

Nike sales were predominately from the U.S., while Adidas sales were predominately international.


11

Stacked Bar Chart (1 of 3)

0

2,000

4,000

6,000

8,000

$10,000


2001

Nike $3,261

Reebok $1,193

Adidas $390

Fila $555

Converse $194

Others $1,622

$7,215

2002

Nike $3,797

Reebok $1,229

Adidas $490

Fila $488

Converse $285

Others $1,785

$8,074

16%

3%

26%-12%

47%

10%

Sales Growth12%

CAGR

Fila sales decreased significantly, while Converse sales increased by almost 50%.


12


Source: Sporting Goods Manufacturers Association (www.sgma.com)

0

5

10

$15B

Sales in $ Billion

Sales by Category

Basketball $3.0B

Cross training $2.5B

Running $2.3B

Athleisure $1.8B

Walking $1.2B

Hiking $0.9B

Tennis $0.8B

Aerobic $0.5BSports sandals $0.3BBaseball/ Softball $0.2BSoccer $0.2B

Other $1.1B

$14.8B


13


0

20

40

$60


average price $42.50

Men's

$51

Women's

$41

Juniors'

$30

Infants'

$22

$6.1 $6.7 $1.5 $0.2Sales (in $billion)

119.0 162.6 48.7 10.5Pairs Sold (in millions)



14

Horizontal Cluster Bar Chart

0 1,000 2,000 3,000 $4,000


Converse$285

$165

Fila$488

$407

Adidas$490

$1,172

Reebok$1,229

$1,098

Nike$3,797

$2,640

Int'l

U.S.

Nike sales were predominately from the U.S., while Adidas sales were predominately international.


15

100% Stacked Bar Chart (1 of 5)

0

20

40

60

80

100%


2002

Nike 47%

Reebok 15%

Adidas 6%

Fila 6%

Converse 4%

New Balance 3%

Airwalk 2%

Keds 2%

ASICS 2%Foot-Joy 2%

Others 11%

$8,074

Nike dominates U.S. branded athletic footwear market


16


0

20

40

60

80

100%


2001

45%

17%

5%

8%

3%

22%

$7,215

2002

22%

4%

6%

6%

15%

47%

$8,074

Nike

Reebok

Adidas

Fila

Converse

Others

Nike market share grew significantly, while Reebok and Fila shrunk


17


0

20

40

60

80

100%

In Millions of Dollars


1998

34%

4%

4%3%

21%

33%

$5,994

1999

32%

5%

5%

5%

22%

32%

$6,375

2000

26%

3%

6%

5%

21%

38%

$6,574

2001

22%

3%

8%

5%

17%

45%

$7,215

2002

22%

4%

6%

6%

15%

47%

$8,074

Nike

Reebok

Adidas

Fila

Converse

Others

Nike, Adidas and Fila share grew over the past 5 years, while Reebok, Converse and smaller competitors fell behind.


18


0

20

40

60

80

100%


Nike

$6,437

Reebok

$2,635

Adidas

$1,874

Fila

$1,031

Converse

$590

U.S.

Int'l

Licensed

Licensing is a small, but significant, revenue source for all companies, except Nike.


19


0

20

40

60

80

100%

Nike

$6,4

37

Ree

bok

$2,6

35

Adidas

$1,8

74

Fila

$1,0

31

Con

verse

$590

New

Balanc

e

$555

ASIC

S

$548

Pum

a

$375

Keds

$265

Airw

alk

$205

Diado

ra

$184

Van

s

$176

Hi-Te

c

$173

Bro

oks

$159

Lotto

$154

Mizun

o

$150

Foot

-Joy

$145

K-S

wiss

$117

LAGea

r

$110

Eton

ic

$81

Oth

ers

$2,2

59

Footwear sales in $ Million

U.S.

Int'l

Licensed

While Nike and Reebok have a mix of U.S. and international sales, most other competitors focus either on the U.S. or international markets solely.


20

Area Chart

0

2,000

4,000

6,000

$8,000


Others

Converse

Fila

Adidas

Reebok

Nike

1998 1999 2000 2001 2002

14.2%

-0.7%

20.9%

14.4%

1.5%

-2.8%

6.1%Industry

CAGR

Nike, Adidas and Fila sales grew faster than the industry average over the past 5 years, while Reebok, Converse and smaller competitors fell behind.


21

100% Area Chart

0

20

40

60

80

100%

Others

Converse

Fila

Adidas

Reebok

Nike

1998 1999 2000 2001 2002

Nike, Adidas and Fila share grew over the past 5 years, while Reebok, Converse and smaller competitors fell behind.


22

Stacked Bar Line Chart

Source: Nike (www.nikebiz.com)

0

2,000

4,000

6,000

8,000

$10,000

0

2,000

4,000

6,000

8,000

$10,000

Sales and Net Income in $ Million

1996

$3,004

1997

$3,405

1998

$3,931

1999

$3,790

2000

$4,761

2001

$6,471

2002

$9,187

2003

$9,553

2004

$8,777

2005

Americas

Asia

Pacific

Europe

U.S.

$8,995

$287 $579$329 $365 $299 $400 $553 $796 $400 $451Net Income ($Million)

Net Income ($ Million)

Nike’s sales have increased significantly with a greater reliance on non-U.S. markets. Net income growth has not kept pace with sales growth.

23

Cluster Bar Line Chart

0

20

40

$60

Price per Pair

1998

Men's

Wom

en's

Junio

rs'

Infa

nts

'

$47.7

$37.2

$26.9

$19.9

1999

$46.8

$37.0

$25.6

$19.9

2000

$47.5

$37.4

$25.8

$19.4

2001

$50.5

$39.8

$28.6

$20.6

2002

$51.1

$41.1

$30.4

$22.2

$12B $12B $13B $14B $15BRetail Sales

Average price

Price per pair has increased across all four market segments from 1993 to 1997.


24

Horizontal Stacked Bar Chart

0 2,000 4,000 6,000 $8,000


Converse $590

Fila $1,031

Adidas $1,874

Reebok $2,635

Nike $6,437

U.S.

Int'l

Licensed

Nike sales were predominately from the U.S., while Adidas sales were predominately international. Licensing is a small, but significant, revenue source for all companies, except Nike.


25

Line Chart

0

1,000

2,000

3,000

$4,000


Reebok

Nike

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Nike overtook Reebok in sales in 1989 and has grown rapidly.


26

2Y Line Chart

12

13

13

14

14

15

15

$16B

35

37

39

41

43

$45

Average Price per PairRetail Sales in $ Billion

1998 1999 2000 2001 2002 2003 2004 2005

price per pair

retail sales

Retail sales dipped between 1997 and 1999 as price per pair increased.


27

2Y Cluster Bar Chart

0

50

100

150

200

0

20

40

$60

Pairs Sold (in millions)

Men's

51.14

119.00

Women's

41.10

162.60

Juniors'

30.41

48.70

Infants'

22.23

10.50

$6.1 $6.7 $1.5 $0.2Sales (in $billion)


average price per pair $42.50



28

2Y Stacked Bar Line Chart

0

2,000

4,000

6,000

8,000

$10,000

0

200

400

600

800

$1,000

Sales in $ Million

1996

$3,004

1997

$3,405

1998

$3,931

1999

$3,790

2000

$4,761

2001

$6,471

2002

$9,187

2003

$9,553

2004

$8,777

2005

Europe

U.S.

Americas

Asia

Pacific

$8,995

$287 $579$329 $365 $299 $400 $553 $796 $400 $451Net Income

Net Income in $ Million

Net Income

Nike’s sales have increased significantly with a greater reliance on non-U.S. markets. Revenue growth has not kept pace with sales growth.

Source: Nike (www.nikebiz.com)

29

2Y Cluster Bar Line Chart

0

5

10

15

20

$25

10

20

30

40

$50

Retail Sales in $ Billion

1998

RetailSales

$12.1B

1999

$12.4B

2000

$13.3B

2001

$14.1B

2002

$15.3B

2003

$14.7B

2004

$14.5B

2005

$15.1B


price per pair

Retail sales dipped between 1997 and 1999 as price per pair increased.


30

Pie Chart (1 of 3)

Others $908

Foot-Joy $122ASICS $130

Keds $180

Airwalk $180

New Balance $265

Converse $285

Fila $488

Adidas $490

Reebok $1,229

Nike $3,797

Nike dominates U.S. branded athletic footwear market.


31

Pie Chart (2 of 3)

Licensed9

International

46

U.S. 45

The international footwear market is about equally divided between U.S. and non-U.S. sales.

Total Market $18,223 million


32

Pie Chart (3 of 3)

Aerobic 3.2%

Tennis 5.6%

Hiking 5.8%

Walking 8.2%

Athleisure 12.3%

Running 15.8%

Cross training 16.7%

Basketball 20.2%

Other 7.4%Soccer 1.0%Baseball/ Softball 1.5%

Sports sandals 2.3%


Total market $14.8B


33

X-Y Linear Bubble Chart

-10.0

0.0

10.0

20.0

30.0

40.0%

-20.0 0.0 20.0 40.0 60.0%

$1BSales

U.S Sales Growth 2001-2002

International Sales Growth2001-2002

Nike

Reebok Adidas

Fila

Converse

NewBalance

ASICS

Puma $1BSales

Nike experienced strong growth in the U.S. and overseas, while Fila experienced international growth and lower U.S. sales.


34

X Log Bubble Chart

0.0

5.0

10.0

15.0

20.0%

0.1 0.2 0.5 1 2 5 10

$2B

Sales

Relative Market Share

Return on Sales

NikeReebok

Adidas

Fila

New Balance

ASICS $2B

Sales

Converse

Puma

Adidas and New Balance experienced a relatively high return on sales when compared to their market share.

Source: Sporting Good Intelligence (www.sginews.com). Return on sales data is fictitious..


35

Y Log Bubble Chart

0.1

0.2

0.5

1

2

5

10

0.0 5.0 10.0 15.0%

$2B

Sales

Return on Sales


Nike $6,437B

Reebok$2,635B

Adidas$1,874B

ASICS

$548B$2B

Sales

Fila $1,031B

Converse $590B

New Balance $555B

Puma $375B




36

X-Y Log Bubble Chart

0.1

0.2

0.5

1

2

5

10

0.1 0.2 0.5 1 2 5 10

$2B

Sales

Relative Market Share U.S.

Relative Market Share Int'l

Reebok

$2B

Sales

Nike

Adidas

Fila

Converse

New Balance0:0

ASICS

Puma

Most companies are strong in both the U.S. and international. New Balance, however, has a weak international presence.


37

Growth-Growth Bubble Chart

-10.0

0.0

10.0

20.0

30.0

40.0%

-20.0 0.0 20.0 40.0 60.0%

$1B

Sales

U.S Sales Growth 2001-2002

International Sales Growth 2001-2002

Nike

Reebok Adidas

Fila

Converse

NewBalance

ASICS

Puma $1B

Sales

Nike experienced strong growth in the U.S. and overseas, while Fila experienced international growth and lower U.S. sales.


38

Growth Share Matrix

-20

-10

0

10

20

30

40%

0.10.20.512510

$2B

Sales

Relative Market Share U.S. Footwear

Market Growth Rate U.S. Footwear

Nike

Reebok

Adidas

Fila

Converse

New Balance

ASICS

Puma

$2B

Sales

Fila, ASICS and Puma exhibit both low growth and low share. They are candidates for turnaround or exit from U.S. market.


39

ROS/ROA versus RMS Chart

0.0

5.0

10.0

15.0

20.0%

0.1 0.2 0.5 1 2 5 10

$2B

Sales


Return on Sales

Nike

Reebok

Adidas

Fila

Converse

New Balance

ASICS $2B

Sales




40

X-Y Linear Scatter Chart

-2.0

-1.0

0.0

1.0

-1.0 -0.5 0.0 0.5

U.S. Sales Growth 2001-2002

International Sales Growth 2001-2002

Etonic

LA Gear

K-SwissMizuno

Lotto

Vans

Airwalk

Keds

PumaASICSConverse

Fila

AdidasReebok Nike

Of the top 20 companies, five experienced declines in both U.S. and international sales.


41

X Log Scatter Chart

0.0

5.0

10.0

15.0%

0.1 0.2 0.5 1 2 5 10


Return on Sales

Puma

ASICS

New Balance

Converse

Fila

Adidas

Reebok

Nike

Intercept = 6.4%

# of Objs. = 8R² = 0.27

Slope = 5%




42

Y Log Scatter Chart

0.1

0.2

0.5

1

2

5

10

0.0 5.0 10.0 15.0%

Return on Sales


ASICS New BalanceConverse

Fila

Adidas

Reebok

Nike

Intercept = -0.64

# of Objs. = 8R² = 0.27

Slope = 570%




43

X-Y Log Scatter Chart (Experience Curve)

1

2

3

100 200 500 1,000 2,000 5,000 10,000

Pairs Produced (in millions since 1997)

Cost per Pair

20052004

20032002

20012000

1999

2004

20032002

20012000

19991998

Slope = 93%

19982005

R² = 0.92

R² = 0.94

Slope = 93%

Industry

Nike

Manufacturing costs are decreasing significantly as production volume increases.

Source: Sporting Good Intelligence (www.sginews.com). Cost per pair data is fictitious..


Stoplight ChartNike is in the strongest competitive position; Converse is in the weakest

Relationship

with customers

Relationships

with suppliers

Cost

Financial

Strength

Manufacturing

technology

Information

technology

Nike ReebokNew

BalanceConverse

Value ChainKey value chain benefits derive from improving sales and marketing process

Short Term •Work with

suppliers–Reduce

costs

–Increase

efficiency

•Implement JIT

•Rationalize

manufacturing

facilities

•Improve

quality

•Evaluate all

delivery and

warehousing

expenses

•Reorganize

sales force

•Implement

national

accounts

•Measure

customer

satisfaction

•Implement

retention

program

Long Term •Implement

supplier quality

program

•Identify new

lower cost out-

sourced

factories

•Partner with

key delivery

companies

•Implement

web-based

sales–Determine

role of web

services

•Improve

brand identity

•Evaluate key

service costs–Restructure

service

delivery

process

Inbound

LogisticsManufacturing

Outbound

LogisticsMarketing

and SalesService

Business

Sample Mekko4 Presentation