Prepared by M. Onur KALYONCU University of Applied Sciences OFFENBURG 02.12.2009

-Mini Quiz- When was the company founded? 1884 1999 1906 1968

-Mini Quiz- What is the first name of Nike company? - Ekin - Mike - Red Ribbon Sports - Blue Ribbon Sports

-Mini Quiz- What is the meaning of Nike? Sport Freedom Fighter Greek winged Goddess of victory

The Journey 1960s-Phillip Knight(ceo) & William Bowerman partnered to sell running shoes to athletes 1970s- cash in on America’s running craze: 1)1972- $ 3 million 2)1980- $ 270 million 3)1986- $ 1 billion Okay let me tlak about the journey of nike compnay

Results from the problem Problems in mid 1980s: Demographic changes - baby boomers pushed into their late forties & felt less like running. 2. Market for running shoes become highly segmented (mature market) -many different models for every nuisance of customer need. Competition -Reebok create new market orientations to sell sneakers based on fashion rather than performance Results from the problem 1984- Nike’s unit sales decreased 17% - market share declined 31% to 24% 1987- have only 18.6 % share of shoes market Action taken Introduced technological features to enhance shoes performance. Use of celebrities as spokesperson. Air Jordan was a major hit. Using advertising as marketing strategy

Challenge in late 1990s 1) Shoe market had changed -younger customer favors of hiking boots & more casual footwear. -teens began participating in nontraditional ‘extreme’ sport. NIKE responded by introducing ACG (all-condition gear) 2) Controversy surrounding its overseas labour practices -Nike being accused of utilizing sweatshop labour in developed nations. Protest sprang. NIKE created corporate & social responsibility department.

Nike’s focus Create authentic athletic footwear, apparel, equipment and accessories for sports and fitness enthusiasts Through subsidiaries, design and sell a line of men’s and women’s dress and casual shoes and accessories

BRANDS Converse NikeTown Cole Haan Nike Football Nike Basketball   Nike All Conditions Gear (ACG)   Nike+   Hurley International   Jordan Brand   Nike Golf NIKE, Inc.’s wholly-owned subsidiaries – Cole Haan, Converse Inc., Hurley International LLC, NIKE Golf, and Umbro Ltd. – play a significant role in our plan to grow to $23 billion in revenue by the end of fiscal 2011. At the end of fiscal 2008, NIKE, Inc.’s subsidiaries contributed approximately $2.6 billion of the company’s $18.6 billion in revenue, a 16 percent improvement over fiscal 2007. Cole Haan (1988) Bauer (1995) Hurley (2002) Converse (2003) Exeter Brands Group (Nike created 2004) Starter (2004)

Nike Manufacturing As of May 2009, Nike’s three main product engines - footwear, apparel and equipment - used almost 700 contract factories in 52 countries to manufacture all Nike products, employing close to 800,000 workers. It is Nike’s mission to make responsible sourcing a business reality that enhances the lives of these workers.

Nike Products

Announced two months ago and now shipping is the Nike + Apple iPod Sport Kit, a pair of shoes that talks to your iPod, and then lets your iPod talk to you. The Nike shoes keep track of your running (or walking, skipping, hopping, limping or jumping) distance, time, speed and even calculates calories burned, sending that info to your iPod that speaks the data to you so you don't even have to look down at the screen. When you're done with your workout, upload that information and graph your progress, and even have virtual races with other people's shoes online. Apple + Nike Sport Kit Ships Before this month is out, Nike will be releasing the first two of six shoe styles with these wizardly features, including its Air Zoom Moire+ and Air Zoom+ which will retail for between $80 and $100. The iPod wireless sensor and receiver combination, Nike + iPod Sport Kit, is $29. – Charlie White

Product Mix for Nike Football Footwear Studs for Striker Mid fielders Defenders Equipment Ball Bags Watches National Team Gear Jersey for Brazil, England… . , Club Gear Club Jerseys like Man U, Real Madrid, Barcelona Apparel Headwear Tops/Polo Jersey Jackets Shorts Shocks

Who are wearing Nike products? NBA players Club teams Colleges and universities Baseball players Boxing Cycling American football players Golf players Tennis players Football players Swimming …… Everybody! Kobe Bryant (Los Angeles Lakers) LeBron James (Cleveland Caveliers) 100 more players Golf player Tiger Woods

New Products Advantages Nike have to face when Nike introduces a new attributes and new products frequently. Advantages + Nike will able to improve their performance in searching new design and styles of shoes. + Customers will have a lot of choice in making selection depends on their wants. + Nike will improve their company and brand image at the same time expand their market share. With the wide range of pruduct and sport areas nike has to create new products.

Disadvantages Customer reaction - Increase the cost in handling inventory, designing, advertising and production Customer reaction They will get the latest design of shoes. A lot of choice in making selection depends on their prefer. Customers will find the Nike shoes are trendy. In contras sometimes Customer maybe feel ‘fed up’ because they can’t follow the changing of Nike shoes. Not all the customers can follow the changing of Nike.

They start to chance the just do it for example for nike basketbal they have new slogan dont just play….. Play with hearth

Nike’s Overall Reputation

Quality of Nike’s Products

OPPORTUNITIES&THREATS + Increased sales due to the strengthening economy + More positive public perception of Nike’s social responsibility + Growth through increased presence in low- to mid-priced shoe market + New athlete name recognition - Growing competition Competitors attracting female consumers Human rights concerns Nike has been criticized for contracting with factories in countries such as China, Vietnam, Indonesia and Mexico. Vietnam Labour Watch, an activist group, has documented that factories contracted by Nike have violated minimum wage and overtime laws in Vietnam as late as 1996, although Nike claims that this practice has been halted

Advertising Strategy Designed to make a connection to the consumer Seldom pitch the product directly or talk about product attributes Sometimes don’t even mention the company’s name featuring instead only the swoosh logo Making new contracts with sportsmen Collaboration ads with another strong branded product, such as Apple iPod

Nike and Media http://www.nikepedia.com https://www.nikemedia.com/ http://www.nikeid.nike.com http://www.apple.com/ipod/nike/ http:// www.nikesportswearmedia.com The company also has a program called NIKEiD at nikeid.com, which allows customers to customize designs of some styles of Nike shoes and deliver them directly from manufacturer to the consumer.

SAN FRANCISCO, Calif. (October 18, 2009) –Over 20,000 women from 50 states and 25 countries completed the Nike Women’s Marathon (NWM), the largest race of its kind in the world, raising more than $14 million for The Leukemia & Lymphoma Society (LLS).

Didier Drogba (Chelsea) Joe Cole (Chelsea) Andrei Arshavin (Arsenal) November 30th, 2009 One the day before World Aids da some of the world’s best footballers joined U2 frontman Bono Bono at announcement of partnership between NIKE, Inc. and (RED). Didier Drogba (Chelsea) Joe Cole (Chelsea) Andrei Arshavin (Arsenal) Marco Materazzi (Inter Milan) Denilson (Arsenal) Lucas Neill (Everton) Clint Dempsey (Fulham) Didier Drogba (Chelsea), Joe Cole (Chelsea), Andrei Arshavin (Arsenal), Marco Materazzi (Inter Milan), Denilson (Arsenal), Lucas Neill (Everton), Clint Dempsey (Fulham) and Seol Ki-Hyeon (Fulham), came together in London today to announce a partnership between NIKE, Inc. This unique partnership delivers a two-pronged approach to fight HIV/AIDS in Africa by delivering funds to support programs that offer education and medication on the ground and will harness the power of sport to engage youth around the world in the fight against AIDS in Africa.

Let the Clean Economy Begin The consistently growing textile industry often negatively impacts the environment. Because Nike is a large participant in this manufacturing, many of their processes negatively contribute to the environment. One way the expanding textile industry affects the environment is by increasing its water deficit, climate change, pollution, and fossil fuel and raw material consumption. In addition to this, today's electronic textile plants spend significant amounts of energy, while also producing a throw-away mindset due to trends founded upon fast fashion and cheap clothing.[29] Although these combined effects can negatively alter the environment, Nike tries to counteract their influence with different projects. In partnership with the World Wildlife Fund (WWF), NIKE, Inc. is part of an alliance called Climate Savers with other leading global corporations supporting global action on climate change. Nike is committed to supporting a new energy future for our nation and the world. By 2010, Climate Savers companies will have collectively reduced 50 million tons of CO2 emissions over a decade of action, alone. Nike was recognized for leadership in climate change from the WWF in 2007 for reducing its annual CO2 emissions to 18 percent below its 1998 levels. The company is committed to building awareness of the impacts of climate change and lending its voice to the call for urgent global action. In 2007 for reducing its annual CO2 emissions to 18 percent below its 1998 levels

Summary Type Public (NYSE:NKE) Founded: 24 January 1968 Founder(s): William J. “Bill” Bowerman Philip H. Knight Headquarters Beaverton , Oregon,United States Area served: Worldwide Key people: Philip H. Knight (Chairman) Mark Parker (CEO) & (President) Industry Designing and Manufacturing: Sportswear Sports equipment Products: Athletic shoes Apparel Sports equipment Accessories Revenue▲ US$ 18.627 billion (2008) Operating income▲ US$ 2.199 billion (2007) Net income▲ US$ 1.883 billion (2008) Total assets▲ US$ 12.443 billion (2008) Total equity▲ US$ 7.825 billion (2008) Employees 30,200 (2008)

Just Do It!!!!