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Market Analysis Market Analysis

A2 Business Studies

Aims and ObjectivesAims and Objectives

Aim:• Understand how to analyse market data.

Objectives:• Explain market trends.• Analyse market conditions.• Evaluate reasons for market structures

changing.

Market Analysis of Sportswear Market - NIKEMarket Analysis of Sportswear Market - NIKE

MARKET GROWTH

• What new product developments have there

been in the sports clothing or footwear

markets over the past 5 years?

• Growth in R&D and new product developments

over the past few years spurred market growth.

• Such developments have included, the Reebok

EasyTone Trainers, which competitors have

imitated with different versions.

• Growth in sports underwear, with developments

such as Nike Pro.

Market Analysis of Nike Distribution

Market Analysis of Nike Distribution

• Distribution – where products are sold.• Where does NIKE distribute its’ products?• Nike products sold in own brand shops, such as

Nike Town and outlets.• Also stocked in sports retailers such as Sports

Direct.• Positive?• Negative?

Market AnalysisMarket Analysis

• Task: Analyse each of the following pieces of information with regard to the sportswear market and NIKE.

Market Analysis of Sportswear MarketMarket Analysis of Sportswear Market

Nike24%

Reebok/Adidas23%

Fila12%

Umbro10%

Puma9%

Asics8%

Mizuno7%

Other 7%

• Nike is the most dominant firm.

• Reebok and Adidas a close second.

• Nike revenue £11.8bn (2009)

• Adidas/Reebok revenue $6.5bn (2009)

• Nike generates 53% of revenue internationally and 34% in the US.

Market Analysis of Nike Competition

Market Analysis of Nike Competition

2005 2006 2007 2008 20090

5

10

15

20

25

Revenue 2005-2009

Nike

Adidas/ Reebok

$bn

Market Analysis of Nike Competition

Market Analysis of Nike Competition

2005 2006 2007 2008 20090

0.5

1

1.5

2

2.5

3

3.5

4

4.5

5

Revenue $bn

Fila

Umbro

Puma

Rev

nu

e $b

n

Luxury Fashion Market AnalysisLuxury Fashion Market Analysis• Look at the following

pieces of Market Analysis information, and draw points and conclusions from what is occurring in the market. Provide reasons for any trends you notice. E.g. Why has market share fallen for a firm who has opened more outlets between 2000-2010.

Market Share 2000Market Share 2000

Burberry14%

Gucci Group26%

Louis Vutton18%

Aquascutum

3%

Marc Jacobs

2%

Other37%

Market Share 2010Market Share 2010

18% Burberry

21% Gucci Group

17% Louis Vuitton7% Aquascutum

6% Marc Jacobs

31% Other

Sales RevenueSales Revenue

2005 2006 2007 2008 20090

1

2

3

4

5

6

7

Sales (£bn) High End Fashion Market 2005-2009

Sales (£bn)

Distribution FiguresDistribution Figures

Firm No. of UK Outlets 2000 Firm No. of UK outlets 2010

Burberry 4 Burberry 16

Gucci Group 9 Gucci Group 20

Louis Vuitton 5 Louis Vuitton 7

Aquascutum 11 Aquascutum 22

Marc Jacobs 3 Marc Jacobs 9

PlenaryPlenary

• Group Feedback

• Market Analysis

• Luxury Fashion Markets