Consumer Behavior of Nike Final

7/31/2019 Consumer Behavior of Nike Final

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NikeConsumerBehaviorSubmitted to: Prof. Meeta Vora

www.final-yearprojects.co.cc | www.troubleshoot4free.com/fyp/


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Presented By: Shaishav Dabhi

Ashok Chauhan

Arjun Toliya

Content

1. A brief history of Nike

2. Segmentation, Positioning and Targeting of Nike

3. Nikes Research Program

4. Corporate Social Responsibility

5. The Marketing Mix of Nike

6. Nike SWOT Analysis

7. Brand : Nike

8. Product Mix

9. Culture in Organization Nike



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A Brief History of Nike

The Nike athletic machine began as a small distributing outfitlocated in the trunk of Phil Knight's car. From these ratherinauspicious beginnings, Knight's brainchild grew to become the

shoe and athletic company that would come to define manyaspects of popular culture and myriad varieties of 'cool.'

Nike emanated from two sources: Bill Bowerman's quest forlighter, more durable racing shoes for his Oregon runners, andKnight's search for a way to make a living without having to giveup his love of athletics. Bowerman coached track at the Universityof Oregon where Phil Knight ran in 1959. Bowerman's desire forbetter quality running shoes clearly influenced Knight in his

search for a marketing strategy. Between them, the seed of themost influential sporting company grew.

The story goes like this: while getting his MBA at Stanford in theearly '60s, Knight took a class with Frank Shallenberger. Thesemester-long project was to devise a small business, including amarketing plan. Synthesizing Bowerman's attention to quality



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running shoes and the burgeoning opinion that high-quality/lowcost products could be produced in Japan and shipped to the U.S.for distribution, Knight found his market niche. Shallenbergerthought the idea interesting, but certainly no business jackpot.

Nothing more became of Knight's project.

Cut to 1963. Phil Knight traveled to Japan on a world-tour, filledwith the wanderlustof young men seeking a way to delay theinevitable call of professional life. Seemingly on a whim, Knightscheduled an interview with a Japanese running shoemanufacturer, Tiger--a subsidiary of the Onitsuka Company.Presenting himself as the representative of an Americandistributor interested in selling Tiger shoes to American runners,Knight told the businessmen of his interest in their product. Blue

Ribbon Sports--the name Knight thought of moments after beingasked who he represented--was born. The Tiger executives likedwhat they heard and Knight placed his first order for Tigers soonthereafter.

By 1964, Knight had sold $8,000 worth of Tigers and placed anorder for more. Coach Bowerman and Knight worked together, butended up hiring a full-time salesman, Jeff Johnson. After cresting$1 million in sales and riding the wave of the success, Knight et.al. devised the Nike name and trademark Swoosh in 1971.

By the late '70s, Blue Ribbon Sports officially became Nike andwent from $10 million to $270 million in sales. Katz (1994)describes the success via Nike's placement within the matrix ofthe fitness revolution: 'the idea of exercise and game-playingceased to be something the average American did for fun,'instead Americans turned to working out as a cultural signifier ofstatus. Clearly, the circumstances surrounding the shift are notthis simple; it is one of the aims of this project to discover other

generators of popular attention to health.

If Nike didn't start the fitness revolution, Knight says, "We were atleast right there. And we sure rode it for one hell of a ride" (Katz,66). The 80s and 90s would yield greater and greater profits asNike began to assume the appearance of athletic juggernaut,rather than the underdog of old. "Advertising Age" named Nike



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the 1996 Marketer of the Year, citing the "ubiquitousswoosh...was more recognized and coveted by consumers thanany other sports brand--arguably any brand" (Jensen, 12/96). Thatsame year Nike's revenues were a staggering $6.74 billion.

Expecting $8 billion sales in fiscal 1997, Nike has targeted $12billion in sales by the year 2000.

Few can question Nike's financial hegemony. But nearly $7 billionin revenues clearly begs the question, what sells these shoes? Itis my assertion that Nike's power to sell comes from deep-rootedyearnings for cultural inclusiveness and individual athleticaccomplishment. These seemingly paradoxical desires collide inconsumers hearts and minds and produce the unyielding zeal forNike shoes and apparel. Unfortunate effects of this zeal can be

found in the rash of Nike apparel killings in 1991 and theprofusion of Nike collectors and WebPages designed around thecompany's products. Nike appeals to these disparate elements ofAmericans' personalities through an advertising philosophy thatis, at once, simple and sublime. In addition, Nike's practice of top-level athletes promoting their products appeals to countless agesand creeds as a way to identify with and emulate their athleticheroes. These forces work powerfully upon the individualconsumer, but one should not lose sight of the cultural context in

which the individual moves.



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Segmentation, Targeting and

Positioning of Nike

Nike has been in the market for a long period now. Thus it hasalready soughted out the STP analysis that it would use to

promote and sell its products.

Market Segments:

The market segments that Nike can mainly differentiate are high,

medium and low end customers with varying income levels. Thus,Nike needs to segment on various fronts such as economic,

demographic, geographical differentiations.

Economic segmentation:

High, medium and low income levels that can be clubbed with

there lifestyles of high, medium and low end customers.

Demographic segmentation:

The company can segment the market into age, gender and class

segments.



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Geographical segmentation:

The company can segment the market into segments of north,

west, east and south.

Target Market:

The company needs to target the market as per the brand image

and equity in different markets. Thus, the company has targeted

the market of high-end, high income level between the age of 16-

55 with a pan India location. Thus the market segment it is

targeting is quite essential to differentiate itself from its

competitors i.e. Reebok, Puma, Fila and local brands like Bata.

Positioning:

The brand Nike has positioned itself in the minds of the consumer

as a high-end product which is quite costly but gives the value for

money with its service, quality and designs.

All this analysis provides Nike with the customer satisfaction andthus loyalty that it needs to achieve high volumes and

profitability.



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Nikes Research Program

Nike has been in the Research & Development in the market for

quite a long time. The research that it has been carrying out

relates to the earlier STP analysis which allows Nike to create a

market for its products.

Also Nike has a history of constantly innovating new products and

attain the first-in-the-market advantage and charge a premium

price. Nike spends a lot out of its revenue into R & D of new

products and designs to constantly stay ahead of the competition.

Nike conducts both qualitative and quantitative research for

gathering vital information for its products and new launches. The

qualitative research refers to the consumer purchasing behavior

like why, how, what do they decide on the basis of Nikes image

as well as products. The quantitative research deals with what arethe results of the company i.e. revenue against cost and other

financial analysis.

Nike indulges into research analysis of consumer markets as well

as competitors analysis and thus understanding the consumer

behavior and their buying pattern.

Nike does extensive research in the attitudes and tastes and

preferences and their changing pattern by having questionnairesfilled up by its customers online as well as personally. It also

indulges into personal interviews with its valued-customers to

make some necessary changes that they might require. This is

how the company came to be recognized as a high valued by its

customers and thus attain maximum loyalty. Also the company



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came up with the idea of customization of their products online

through this type of research itself which has yielded high results.

Nike products undergo a rigorous testing process that covers a

huge variety of testing surfaces (regular basketball hardwood,soccer turf, a running track, and endless outdoor testing on

various terrain), and takes into account four major factors,

geography, gender, age, and skill level as well as profession. All of

this combined with the results of about a dozen other tests are

use to develop new, user-friendly products like the Nike Shox,

Nike Air, and other Nike basketball and running shoes. This is

mainly because Nike needs to constantly be aware of the changes

in the consumer buying behavior which can only be done through

various researches. Nike also utilizes information from various

other research analysts like http://www.sneakerhead.com/nike-

research.html.



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Corporate Social Responsibility

undertaken by Nike

Nike has been in the market for over 5 decades now and has

understood the importance of maintaining the environment

through corporate social responsibility.

The firm has been in news for last decade for its innovativeness to

develop such facilities that are waste free and use renewable

sources of energy.

A statement by Sarah Savern, director of corporate responsibility

horizons, Nike Inc. states We have a target to be climate neutral

in Nike owned facilities and business travel by 2011.By 2015, we

aim to be climate neutral in all Nike Inc. facilities. A 17%

reduction in footwear waste by 2011. A 30% reduction in

packaging and point-of-purchase waste.

As per the current CEO Mark Parker, We see corporate

responsibility as a catalyst for growth and innovation. Also, Weare challenging our assumptions, evolving our perspective and

building a new approach.



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The Marketing Mix Adopted By Nike

Nike has been developing its marketing mix consisting of the fourPs i.e. product, price, place and promotion. Thus Nike has

soughted out the mix that will best help it achieve its goals of

maximum profitability.

Product:

Nike takes into consideration various aspects of its products as it

is in a product or consumer market. Thus it needs to have

extensive range of products to withstand its competition.

Nike provides features, designs, various brands, packaging along

with some extra features like warranties and after sales service.

This all aspects can be included in the product analysis.

Nike has various products as well as brands that cater to different

market segments which varies according to requirement of

particular segments as well as individuals. Also they offer

customized designs of their products wherein customer designs

their product as per their requirements.

Eg: Nike provides customization of their shoe range on their site

Nike.com.

Nike also offers a one year warranty for their products. Also they

provide an option for replacement in all their products if any

defects or problems occur after purchase which is a part of after

sales service.

Nike has been designing world class shoes for over 5 decades. Yet

it has a tendency of changing the designs and patterns after a

particular period or quantity. It also has a range of classic Nike

shoes which are available all the time.



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Nike also provides packaging with collaboration with other

brands.

Eg. Selling i-pods with their jogging shoes range.

Price:

Nike has a high-end consumer market with high disposable

income asking for better service and satisfaction as there target

market. Thus their pricing strategy is to provide value at high cost

with maximum profitability. Thus they have high margins but this

can be justifiable due to its advertising and research costs.

Nike also provides with discounts during various festive seasons

on its products like Diwali in India. This is also a part of its pricing

decisions.

Place:

Nike is a multi-national organization. Thus it needs to develop a

wide range of distribution channel which can support its retail

business. Thus Nike has some of the following distribution outlets:

Retail: Nike sells through its retail stores, brand outlets, exclusive

showrooms as well as hyper markets in metropolitan areas.

Online shopping: Nike also provides with online shopping facility

for its various products and services.

Distributors: Nike has a wide coverage of its distributors across

the globe to support its retail outlets.

Factory outlets: Nike also sells its merchandise through factory

outlets that sell some of its products at a discounted rate.

Promotion:



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Nike is extensively involved in Promotion and advertising. Nike

uses advertising, sales promotion, advertisement campaigns,

public relations and publicity and sales offers to build awareness

and brand image and loyalty.

Nike endorses various celebrities such as athletes, football

players, cricketers, tennis etc.

Eg. Roger Federer, Tiger Woods, Ronaldinho, Ronaldo.

Nike also endorses various teams as well as clubs such as

Barcelona Football Club.

It places its products in various movies and shows using product

placement.

Nike also sponsors various events such as tour de France, FIFA

World Cup, Delhi Marathon and various others.

Nike promotes its products also utilizing other products brand

equity such as promoting its range of shoes alongwith I-pod.

The Just-do-it campaign of Nike has been since nearly 3

decades and has got them worldwide fame.

Nike also advertises by using various celebs in their

advertisements to increase brand loyalty while utilizing the brand

image of such celebs.

Nike has also gone to the extent of sponsoring a stadium called

the Alliance Arena, which is by far the biggest football ground in

the whole world.

Thus Nike can be viewed as an organization that utilizesadvertisements extensively for promotions which can be viewed

from its advertisement budget of approximately US $ 150 million.



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Nike SWOT Analysis

STRENGTHS:

Contracts with Universities: Nike has contracts with

universities nationwide to supply apparel for athletes. These

university sponsorships are beneficial to Nike because they give

the company the right to sell merchandise with these schools

logos, tap into the market of collegiate sports apparel, and form

relationships with young consumers.

Analyst Confidence in Stock: According to press releases

issued by Bloomberg, analysts from Bank of America, CSFB, and

Wells Fargo recently called Nike a buy. After a lackluster

financial year, this news could potentially affect stock price in a

positive way.

Michael Jordan Returns to Basketball: Nike received press

coverage throughout Jordans decision-making process and

continues to make press regarding the impact of Jordans return.

Nike was able to capitalize on this strength by debuting a new

shoe the Air Jordan XVI and by making new commercials with

Jordan that will hit the airwaves soon. Michael Jordan is perhaps

the most recognized athlete in the world and markets Air Jordan

apparel for Nike.

Corporate Responsibility Report: According to the Nike Web

site, in October Nike released its first Corporate Responsibility

Report. The document states that Nikes focus points, in terms of



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corporate responsibility, are the environment and labor. Since

these are two areas that cause protests against Nike, it is

important for Nike to label them as areas to focus on and for Nike

to give the public this information.

Strict Environmental Standards: According to Bloomberg,

Nike has accepted strict environmental standards to comply with

by 2005. These standards were part of the Kyoto treaty that

President Bush refused to sign and are supposed to help in the

fight against global warming. Nike has made other efforts to be

energy efficient; its office in the Netherlands is the most energy

efficient office in that country by 35%. Nike also uses organicallygrown cotton, promotes the Eco-class program with Delta Airlines,

and founded N.E.A.T. in 1993 to, as the Nike Web site maintains,

Reduce Nikes impact on the planet.

Reducing Operating Costs: In a report from Business Wire, Nike is

taking advantage of the new cost-cutting methods of electricity

management from Portland General Electric. This method allowsNike to continually get an update on its energy use and see if

there are any problem areas. Nike is utilizing technological

advance to streamline operations at its facilities, increasing

productivity and cutting costs.

Philanthropy: Nike is committed to philanthropic endeavors

such as Reuse a Shoe, Project Dreams and Habitat for

Humanity. These efforts, along with other programs such as the

Shadow program and the Bower man Foundation, show Nikes

commitment to the community. Nike employees also benefit

from these philanthropic opportunities. Recently, Nike continued



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to give back to the community by giving $1 million to the World

Trade Center Disaster.

The Nike Swoosh: One of the biggest strengths of Nike is its

brand identification and corporate identity. The Swoosh

resonates in the minds of consumers who recognize that logo as

representing quality, first-rate athletic apparel. The Nike Swoosh

is recognizable and identifies all Nike products and sponsored

universities.

Nike Icons: Nike uses athletic icons and heroes to market its

company goods. Examples of Nike icons are: Michael Jordan,

Tiger Woods, Mia Hamm, Marion Jones, and Lance Armstrong. Not

only do these athletes adorn print and television advertisements,

but they also appear on the Nike Web site and are called Our

Heroes. This is strength because consumers begin to identify

the athlete with Nike. Nikes popularity is connected to the

popularity of these athletes.

Event Marketing: Nike successfully uses event marketing in the

realm of fitness to bring more brand recognition to its name.

These sponsorships ensure that consumers see the Nike Swoosh

in places other than television advertisements, on products, and

in stores. Nike sponsors fitness challenges at universities and

also sponsors nationwide athletic tournaments, including some for

charity.



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Niketown: Nike town stores, located in 15 major cities across the

world, demonstrate that Nike has become a part of American and

world culture. These famous stores represent the true strength of

the Nike brand and the popularity of the athletes who advertise

Nike apparel.

WEAKNESSES:

Labor Practices: Activist groups and student organizations have

made Nike a symbol of labor exploitation. These groups blame

Nike for poor conditions in its third world factories, under-payingworkers, employing children, and ignoring the basic rights of its

workers. Nike is often in conflict with labor unions; most recently,

Nike bucked heads with a factory workers union in Mexico.

Accordingly, the public associates Nike with sweatshop labor and

accuses it of sidestepping human rights in order to secure the

greatest profit.

Advertising: Nike spent over $1 billion on advertising, sports

marketing, and promotional spending in 1999, and, although

popular, some of its advertising strategies were considered

controversial, according to an article titled Channel Conflict.

Feminist groups accusing Nike of degrading women have

attacked Nike commercials that stress winning above everything

else and show women submissively. Although the majority of

Nikes commercials are cutting edge and creative, those verycommercials can be weaknesses in Nikes reputation.

Consumer Cost: Nike has been accused of outrageously

marking-up prices on many of its products to cover the costs of



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advertising and sponsoring. The public feels that Nike

overcharges its consumers and should lower prices. According to

an article from the Graduate School of Business at Stanford

University, a shoe whose net factory price is $24.71 is sold retail

by Nike for $100.

Endorsements: The public questions the amount of money that

Nike spends on sponsoring athletes. People do not agree with the

multi-million dollar, multi-year contracts that Nike extends to

athletes such as Tiger Woods, Ken Griffey Jr., and Michael Jordan

and are disillusioned with Nikes preoccupation with these

athletes.

Global Community and Outsourcing: Nikes efforts toward

global expansion have become a weakness in its reputation. Nike

has operated in the Asian region for 25 years and uses

subcontractors throughout the globe to manufacture its products.

Factories in China, Indonesia, Vietnam, Italy, the Philippines,

Taiwan, and South Korea produce the majority of Nike goods.Nike has little control over its extended product line because it is

such a large company with the majority of its operations

overseas. Additionally, many people in the United States see

Nikes outsourcing as taking away jobs from Americans.

OPPORTUNITIES:

Wide Range of Products: Nike not only has the ability to

succeed in the basketball shoe market, but in virtually every other



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athletic market from golf apparel to womens workout gear. This

diversity of products presents Nike with a great opportunity to

build up strength in all of its product lines and also to be flexible

when the market shifts, making demand in some areas higher

than others.

Winter Olympics: This years Winter Olympics, in Salt Lake City,

Utah, will provide excellent opportunities for Nike to advertise.

The Winter Olympics will also bring publicity if Nike-sponsored

athletes are competing in events, displaying the Nike Swoosh all

over the world. Nike has been a major contributor to many of the

past Olympics as well. In Sydney, for instance, Nike designedover 2000 athletes uniforms in 25 Olympic sports.

Foreign Market: While Nike has become a major part of

American culture, there is international strength in the Nike

brand. According to one Nike press release, worldwide orders for

Nike products are up 6%. This is an opportunity because it means

Nike can expand globally and depend less on the Americanmarket for its successes or failures.

NIKEgoddess Opened in Newport Beach, California: This

marks Nikes expansion into the womens apparel market.

Because women wear athletic apparel for more than just working

out, this is an opportunity for Nike to jump into the mainstream

clothing market.

Hype of Advertising: Nikes advertisements make waves.

People enjoy them and wait for new ones. Nikes newest

advertising campaign is Enjoy the Weather, which features



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athletes conquering weather conditions to perform their sport.

The hype of Nike advertising brings with it the opportunity to

reach the public through the promotion of Nikes newest

advertising endeavor.

Expansion into Outdoors Clothing: The expansion into

outdoor clothing is an opportunity for Nike because this will allow

Nike to become more of a part of the apparel market. The fitness,

innovation, and technology clothing line keeps in Nikes tradition

of providing superior products.

Web site: Nikes massive Web site will prove to be an

opportunity for Nike consumers to get up-to-date news coverage

and to buy into the online purchasing market. It is one of the

most comprehensive and interactive sites on the Internet. Nike

should be able to capitalize on its Web site and emphasize those

issues that Nike publics would not otherwise be exposed to by

other media.

THREATS:

Las Americas: Nike is funding part of the first-ever privately

funded U.S.-Mexico port of entry into the United States. Nikes

involvement in this project could open them to public criticism



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concerning immigrant labor. Additionally, in the wake of the

events of September 11, Americans are wearier of foreigners and

more concerned with homeland security. The bridge might

threaten Nikes reputation.

University Campus Groups: Student groups are gaining

strength and becoming a larger presence on university campuses

across America. For example, an article stated that the University

of Connecticut decided to allow students with protest signs to

attend athletic events only after the school was approached by a

student organization requesting this measure. If Nike cannot

reconcile its differences with student groups, it will face more andmore threats to its reputation as these groups gain more and

more of a following on campuses.

Competition: According to various Web sites, Nike competes

with Converse, Fila, Adidas, New Balance, and Reebok. Nike

currently dominates the market, but these companies pose a

potential threat to its reputation. If Nike cannot stay one stepahead of these companies in terms of product design and

customer satisfaction the corporation could flounder. Reebok, for

instance, has already taken over Nikes contracts with the WNBA

and the NFL.

Industry Trends: In the past, Nike has been unable to keep up

with changes in the industry. According to a report concerningNikes weaknesses, the corporation was one of the last athletic

footwear companies to move into e-commerce and was late

recognizing other trends in the market. Nike can ill afford to be

viewed as a complacent company and cannot let this threaten its

reputation.



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Manufacturing Network and Global Economy: Nike Inc. is the

parent company of numerous subsidiaries and is imbedded in an

intricate global manufacturing network. Additionally, Nike reliesheavily on the global economy to succeed. What is more, the

corporation grew so fast that it developed organizational

dilemmas, causing Phil Knight to admit in a news release four

years ago, we (Nike) had outgrown our ability to manage the

business. If Nike and its publics cannot understand the

intricacies in Nikes corporate system, they might lose faith in the

organization.

Management: Since its conception in 1964, Phil Knight has held

close control of the company and ruled with a mix of closely

allied senior managers, according to a business report entitled

Channel Conflict. Nike management has also gone to

tremendous lengths to identify with competition and victory.

Management wants to be in complete control; however, this is not

always a positive in the eyes of stakeholders and could threaten

its reputation.

Internet Boom: An Internet search with the phrase anti-Nike

showed thousands of links to anti-Nike Web sites appear. With

the click of a mouse, anyone without any accreditation or

legitimacy can post anti-Nike sentiment or have access to anti-

Nike material. This has made it easier for activists to express

their negative opinions of Nike and is making it harder for Nike to

overcome some of its less flattering reputations.

Lawsuits: Nike has been involved in many lawsuits that also

threaten its reputation. Most recently, the United States Court of



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Appeals for the Second Circuit affirmed the dismissal of a case

against Nike and St. Johns University by a Mr. Keady. According

to a report by Vada Manager, Director, Global Issues

Management, Mr. Keady had made numerous attempts to

discredit Nikes considerable efforts at improving conditions in thefactories and communities around the world where our products

are made. Although Nike won the lawsuit, Keadys efforts, and

others like them, to discredit Nike pose a threat to the strides it

has made in the way it does business.

Branding: The essence of the business

Many people view branding as purely a logo or a name; however

branding is far more than this. A brand should capture the true

meaning of the business and is created jointly by the efforts of



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business and through consumers perceptions. Many of these

perceptions will be given to the consumer initially by the

business. However, in some situations the perceptions can arise

from situations outside the businesss control, for instance

through bad press.

To explore this idea think about all the attributes you associate

with:

At a recent workshop the logo provoked the following comments:

competition, physical activity, quality, and role model, expensive,

slave labor and modern. Some of these attributes will be the Nike

brand; others are the result of consumer perceptions created by

bad press, quite possibly resulting from ill-thought out

management decisions.



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Branding: powerful marketing mechanism used by Nike

Leads to higher and more consistent product

quality.

Increases innovation by giving producers an

incentive to look for more new features that can be

safeguarded by the patent.

Branding results in more product variety and

choice for consumers. Branding provides consumer information about

products and where to find them.

Brand Image

A strong brand creates a preference to purchase and an inclination tocontinue purchasing (brand loyalty).

We most commonly think of branding as something the big guys do withtheir large ad budgets and extravagant television commercials. In recentyears some observers have noted that branding is losing its power. We seemore and more people buying generic prescriptions over the label brands."Would generic be ok with you sir?" But in truth, when you go to buy a newvehicle, don't you consider the brand? Would you buy a $18,000 genericbrand over a $22,000 Ford?

As a small business owner what should you do? The concept of branding isan ideal method of forcing you to focus on what it is that you do, what youwant to do, and what you want to become. To create a brand you mustdevelop a set of guidelines for your business and identify how you wantyour business perceived. How do you want to be seen by the public?



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You might think that your brand image is your logo. Like the Nike logo, orthe Disney logo, or any other famous logo. But in truth your brand image isevery customer/prospect's interaction with your company that creates animpression. It's your company's character. It's a conglomeration ofinteraction and observation by people outside your organization: how yourphone is answered, the quality of customer service, how your trucks look,or even how your web site looks. It's what makes your company uniqueamong the hundreds of competitors.

Your brand image should communicate the difference between you and thecompetition your reason for being. Your brand image should reinforceyour corporate message so that it helps make you stand out in a crowd oflook-a-likes.

Brand equity

Brand equityis defined as the positive differential effect

that knowing the brand name has on customer response to

the product or service.

Brands represent the consumers perceptions and feelings

about products and their performance.

The real value of branding is the ability to capture consumer

preference and loyalty.

Brands vary in power and value and have varying degrees of

brand awareness, brand preference and brand loyalty.



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Brand personality

Personification.

Michael Jordan

Put Nike on the map

1984-1985 Nike saw a decrease in their earnings for the

first time ever

Influenced them to make their first specialty basketball

shoe

Since then, Michael and Nike together have generated

billions of dollars in revenue

World Sports Hero No. 1

Jumpman logo is one of the most easily recognized

symbols throughout the world



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Tiger Woods

The newest Nike sensation

Estimated that Nike paid him $40 million

More attention than Michael Jordan and Bo Jackson

3 pg. ad in Wall Street Journal

30- and 60- second TV spots

Aired during college football, major league baseball, the U.S.

Open, SportsCenter and Monday Night Football



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Consumer Behavior and Managerial Issues

Nike.com is by all means a great place to do online shoppingbut I found that it can be just as good for the consumer who

wants to do there shopping offline. With the many onlinedepartments and adjustable features you can decide what youwant and then use the store locater to get directions to thenearest retailer.

Nike uses secured socket layer technology to ensure youthat your credit information is secured.

Nike also uses cookies as an information gatherer to seewhat your preferences or tendencies may be, which enables them

to supply a better service to there customers. If you dont wantyour information to be used in this form Nike also shows you howto deactivate cookies or even how to opt-out of receiving e-mailsfor them.

In conclusion the group thought Nike.com was a really well put

together web site, while some may find it a little difficult to

navigate, it has great customer service to help you, and many

features to keep there customers happy and searching there site

for long periods of time.



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Nike: Porters Five Forces

Product Mix



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A product mix is the set of all products and items that a

particular seller offers for sale to buyers also known as product

assortment. Product Width

It refers to how many product lines the company carries.

Product line

A product line is a group of products that are closely related

because they perform similar functions

Product length

It refers to the total number of items in its product mix

Product depth

It refers to how many products are offered of each product

line.

Product mix of Nike

Footwear

Studs for Striker

Mid fielders

Defenders

Apparel



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Headwear

Tops/Polo

Jersey

Jackets

Shorts

Shocks

Equipment

Ball

Bags

Watches

National Team Gear

Jersey for Brazil, England, etc.

Club Gear

Club Jerseys like Man U, Real Madrid, etc

Culture in organization Nike



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A culture of any organization can be viewed as the shared

cognitions, values, norms and beliefs. Thus they function as

symbols of a society or subgroup. Thus every organization has itsown culture and values on which they perform.

Nike is seen as an organization of innovativeness and health

conscious and fitness oriented organization.

Nike can also be viewed as an organization promoting hard work

and young talents which is communicated to the customers

through its advertisements also like ads of Ronaldinho, Rafael

Nadal etc.

Nike also has a culture of promoting high achievers so as to keep

an image for the organization itself.

Nikes culture is spread over all its Nike Inc. facilities all over the

world. Thus it is culture has been affected by cultures of various

countries and influenced by there subcultures too as it is the

same people that for the organization that live in the society too.


Documents

Consumer Behavior of Nike Final