Nike Brand Inventory Report Brand Audit PDF

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Summary

Sports brand Nike Inc. is a multinational business based in the United
States that specializes in shoemaking as
well as clothing and equipment
production and marketing and selling it
globally. There is a branch office in
Beaverton, Oregon, which is part of the

Description

Background & History of Nike Sports brand Nike Inc. is a multinational business based in the United States that specializes in shoemaking as well as clothing and equipment production and marketing and selling it globally. There is a branch office in Beaverton, Oregon, which is part of the Portland metropolitan region (USA). According to Forbes, Nike's global sales in 2021 amounted to be abou 44.54 billion U.S. dollars (Tighe, 2021), making it the world's largest provider of athletic shoes and clothing. Throughout 2020, Nike employed more than 76,700 workers in the world (Forbes, 2021). Only the brand alone was valued at $30.4 billion in 2021 (Brand Finance Apparel 50, 2021). On the Fortune 500 list of the biggest U.S. firms, Nike came in at number 85, based on its total revenue (Fortune 500, 2021). Making it the most valuable sport brands. As early as 1962, Bill Bowerman and Philip Knight founded the firm that we know as Nike. Blue Ribbon Sports was the initial brand name. The University of Oregon's track and field coach was Bowerman. As a Stanford student, Knight wrote a paper on eliminating German dominance in the sports footwear business, which was published. Onitsuka Tiger Company became his only distributor in the United States when he traveled to Japan and signed a contract with him. As soon as Bowerman and Knight got their first shipment (200 shoes), they began selling them at local events to generate a large amount of money. He had previously developed shoes for his players and teamed up with Tiger to create the world-famous Tiger Cortez shoes, which became international bestsellers and began the company's career in the footwear industry.

It wasn't until 1971 that Knight and Bowerman began producing their own shoes under the brand name Nike, named after the Greek goddess of victory and featuring the Nike swoosh that has become one of the company's most recognizable trademarks (Levinson, 2016). Blue Ribbon Sports and Onitsuka Tiger parted ways in 1972, and Nike Inc. was born. At now, Nike is the world's most dominant brand in sports footwear, with a market share that dwarfs that of its competitors. “Just Do It” and the Swoosh logo are two of Nike's most recognizable slogan and logos. Nike is a true global player and is viewed as a role model for innovation-driven success in the business world. Brand Inventory When it comes to sporting apparel, Nike is one of the most dominant companies possessing very strong brand positioning and image compared to its competitors. Nike has a number of traits with its rivals when it comes to point of parity (POPs). If you'd want to train on your own and at your own pace, you may use Nike+, Nike's electronic performance technology that works with Apple’s gadgets. Adidas, on the other hand, offers a comparable device called miCoach Pacer, which has the same functionality. In terms of Nike and the athletic apparel business, they all provide sportswear equipment, which might be the major point of parity between the companies. Point Of Differentiations are characteristics that separate Nike from its competitors. After all, according to Mathieu Daniel (2013), "the most essential aspect of Nike's strategy is its presence in all sports." Nike's products can be found in nearly every sport, from football to basketball to ski equipment

and golf, which helps the company to reach a wider audience and grow its market share. Its competitor Asics, for example, focuses solely on running shoes, resulting on restriction to their potential expansion of market An further point of differentiation between Nike and its competitors is the launch of “Nike ID”. It is a feature that enables Nike’s customers to customize their shoes or gear into their liking. The most popular product is “Nike Air Force 1 By You”. This includes customization of the "swoosh" logo, overlay, and tongue color of the shoes. Brand Portfolio Running, Nike Basketball, the Jordan Brand, Football (Soccer), Men's Training, Women's Training, Action Sports, Sportswear (Sports-inspired lifestyle goods), and Golf are all part of Nike's brand portfolio, which is divided into nine major categories. A variety of baseball and American football products may be found under the Men's Training section. Aside from kids, Nike also sells items for cricket, lacrosse, tennis, volleyball and wrestling as well as products for walking and other outdoor sports. Nike's initial products were Nike Air Max track running shoes. Now, Nike sells its products under the Nike name, along with other sub-brands such as Brand Jordan and Hurley International as well as subsidiaries such as Nike Skateboarding and Nike CR7. However, Michael Jordan's Air Jordan basketball sneakers remain the company's most popular product. There are more than 30% of Nike's shoe sales that are attributed to Air Jordan. A substantial percentage of Nike's sports footwear is used for casual or leisure reasons. Innovative design, as well as high-quality construction, are important to Nike in the design and manufacture of

their goods. The all time most popular footwear categories are sportswear, running shoes, and the Jordan Brand. Under the Jumpman trademark, Nike’s Jordan Brand develops, markets, distributes and licenses basketballrelated athletic and leisure footwear, clothing and accessories. Within each of Nike's global operational segments, Nike's Jordan Brand goods are reported. Under the Hurley name, one of Nike’s wholly-owned subsidiary companies, Hurley with headquarters in Costa Mesa, California, produces and sells a line of action sports and youth lifestyle clothing and accessories. Hurley's sales and operational performance are included in the Nike Brand's North America regional operating division, with revenues reported under the category of Action Sports. Located in Boston, Massachusetts, Converse is another wholly-owned subsidiary brand of Nike. The company produces casual shoes, clothes and accessories under the Converse brand, as well as the trademarks Chuck Taylor and Jack Purcell as well as All Star and One Star, as well as the Star Chevron logo. According to the company's financial statements, Converse's operating performance are disclosed separately. Brand Elements In terms of brand elements, Nike is one of the world's most strong brands. Logos, names, slogans, packaging, and celebrity endorsements are some of the elements that they employ. The logo and name of each Nike product is distinct. When it comes to brands like Jordan's, Cristiano Ronaldo's "CR7" has its own logo and name. The brand name Nike means “The Greek goddess of victory”. It's an emotive brand name that encourages individuals to succeed. It is Nike's

mission to inspire people to think that everything is possible if they just try.

trash, as well as produce new goods that are more eco-friendly.

Nike has a general slogan: "Just Do It". According to the company's ultimate goal, it wants to tell everyone that sport is for everyone and you simply have to do it. The tagline "if you have a body, you're an athlete" is another intriguing one from Nike, since it emphasizes that the brand is for everyone and anybody can be an athlete.

Pricing Strategy

Athletes such as Roger Federer in tennis, Cristiano Ronaldo in football and Tiger Woods in golf are used by Nike to promote their products. Moreover, Nike gives us a lot of tales about how athletes attain success in their own way, which is really genuine. This leads many of us to believe that all we have to do to become an athlete is put on a pair of Nike's sneakers. Product Strategy For Nike’s product strategy, there is a constant focus on innovation and an emphasis on the R&D department, and they try their best to manufacture footwear, clothes, and sports equipment that decrease or eliminate injury, improve athletic performance, and provide maximum comfort and enjoyment for its customers. Innovative business practices are at the core of Nike's growth strategy, according to the firm. With Closed Loop Business Model, Nike’s product strategy strives to achieve zero waste by utilizing, recycling and composting all resources (Wallace, 2020). This is an admirable goal. A product can be created utilizing materials that have been recovered during the production process and at the conclusion of a product's life cycle under such a strategy. They'll find innovative ways to recycle and reuse

As a result of Nike's expenditures in technology, their items will be more expensive. However, price points and ranges are still determined by taking into account current market circumstances. Nike Inc.'s pricing strategies are based on a variety of factors. Starting with the value-based pricing strategy. Secondly, a premium pricing strategy is necessary as well. Nike Inc.'s value-based pricing approach takes into account the consumer's opinion of the product's value. To estimate the maximum price customers will pay for the sports shoes, clothes, and equipment offered by the firm, this value is utilized in the pricing strategy. Regarding premium pricing strategy, high prices are charged because Nike's premium branding approach portrays its items as superior in quality and value to its competitors. Because of this, the company's advertising feature highprofile celebrity endorsers. A successful price increase in 2014 resulted in better sales and income for the company. In addition, the company's sales revenues continue to grow, while the company's prices continue to rise with time. Such a tendency, according to Nike’s PESTLE research, is connected to the sociocultural and economic shifts in the industry environment (Gregory, 2018). Prices are adjusted as a result of these adjustments. Pricing tactics are used effectively by the company Nike Inc. to maximize profits while highlighting the importance of marketing the company's products and brand.

Distribution Strategy An important part of the distribution is identifying the places where a company's products may be sold in which channels. Sport shoes, clothes, and equipment are all sold by Nike Inc. through a huge number of stores across the globe. Examples include the fact that these items may be found in large retail outlets. Nike's distribution strategy is comprised of the following locations, which are listed in order of importance. Retail shops come first, followed by the Nike Online Store, and finally Niketown retail outlets, which are owned by the business (Gregory, 2018).

all be part of a Nike's marketing communication strategy. Nike's major goal is to spread the message of superiority and premium performance footwear to targeted users, with the goal of promoting switching and repeat purchases. Nearly 11 percent of Nike's revenues go into creating the optimal marketing communications strategy that will help them become a leader in the industry. It is estimated that the 11 percent equates to around $1.7 billion in revenue each year (Thøger Christensen, Fuat Fırat and Cornelissen, 2009).

Ambassadors/Sponsorships Due to their strategic locations and ease of accessibility, Nike's retail shops are by far its largest sales channels. Small local and regional stores as well as major national chains such as Walmart and Tesco are among these retailers. According to the approach, Nike offers sports shoes, clothes, and equipment for sale on its website. Aside from that, the company operates its Niketown retail stores. These outlets are held by the corporation and provide access to business and market information that helps support corporate strategic management in terms of marketing plans and tactics for current, new, and upcoming items, as well as current and emerging technologies. On the basis of such a strategy, Nike Inc. is able to manage the distribution and sale of their products, particularly through their online shop and Niketown retail stores. Other retail outlets, on the other hand, are subject to the company's limited control in terms of distribution and selling. Marketing Communications Advertising, personal selling, sponsorships, celebrity endorsements, direct selling, and direct marketing may

As an advertising agency, Nike had collaborated with Wieden+Kennedy (W&K). For years, Nike has been recognized for its outstanding advertising campaigns, which include some of society's most well-known figures in order to get the word through to its customers. When it comes to its ads, Nike goes above and above by employing athletes of both genders such as Rafael Nadal and Tiger Woods as well as LeBron James and Serena Williams as well as Picabo Street and Gabby Reece. Football and basketball are two sports that Nike promotes significantly. Nike has been able to standardize many of its advertising techniques since players like Ronaldo and Lebron James are well-known throughout the world. In addition to athlete endorsements, Nike sponsors teams, leagues, and events throughout the world through kit supplier relationships. Nike spends $1.34 billion (80%) of their sponsorship budget on kit supplier relationships. Thirty-eight percent of Nike's sponsorship budget comes from athlete endorsements, which total $336.8 million. As for 18th of June 2020, the

Sportcal Intelligence Centre compiled a list of 293 active Nike deals with a total estimated annual value of $1.68 billion. Nike supported 194 teams, leagues, federations, and events, accounting for 66% of the total. Among Nike's sponsorships, athlete endorsements account for 34% which totaled 99 deals (Fox, 2020).

note, "Authentic Athletic Performance" is Nike's brand mantra. Which emphasizing authenticity, which also implies honesty and transparency are at the forefront.

Brand Positioning

Brand Resonance

The brand has a lot of POPs and PODs. When a brand has points of parity, it means it has characteristics that other brands also have (Klopper and North, 2011). Since several major rivals make comparable items and have similar tactics, Nike is able to survive in this sector. Because of this, no matter how innovative the brand is, it offers the same type of goods which cater to both male and female for various age groups and internationally classified as athletic or sportswear that other companies do. Meanwhile, the business employs athletes as brand ambassadors and maintains a similar price approach to its competitors. In terms of point of difference, “NikeID” is an innovative sporting product that allows the user to personalise their Nike shoes, bags, and trainers. With an eye on new technologies and apps to better their sporting experience Nike has produced apps for the Nike ipod, the Running app, and Training club. To be part of a community, rather than merely possessing an expensive brand-name goods. It is also a plus because Nike can be found in various sports categories like in football, tennis, basketball, cricket and many more. Basically, PODs are based on desirability, delivery, and distinguishing characteristics. As long as consumers believe that competing brands cannot match the areas of differentiation, the brand has successfully positioned itself. As a final

Nike’s brand resonance model is equally strong on the left and right side. This proves great synergy between both side of the pyramid, which means that the functional and the emotional benefits of Nike are well delivered to consumers. Brand Resonance: A narrative of heroism, motivation and inspiration, and a story of self-loathing and determination. Therefore customers loyalty towards Nike is high. Consumer Judgements: Perceived high quality and innovative brand, Attention to details design, one of the most valuable brand in sports.

Consumer feelings: A sense of achievement and able to do anything when wearing Nike’s product.

Jordan/Air Mag series, perceived as a cool thing/fashion accessory in public’s eye.

Brand Performance: Shoe company that focuses on athletes and young people with high level of technical performance and R&D, bridging the gap between professional and competitive level.

Salience: Absolute leader in the sportswear/shoe industry. The classic “Swoosh Logo” is a highly recignized logo even from far. Super catchy “Just do it” slogan which is easy to memorize, short, simple and sharp.

Imagery: Wearing a Nike shoes is a symbol of status espiecially Air

Main Branding Issues & Reccomendations Counterfeit Nike Products There is an increase in the market for counterfeit products. Nearly half a trillion dollars worth of counterfeit goods are traded internationally every year (Kim, 2016). Unfortunately, Nike is one of the most counterfeited brands in the world, according to a recent study. For example, "Nike appears to be more heavily targeted by counterfeiters," says the research. According to OECD/EUIPO (2016), counterfeit Nike sneakers are worth between $5 and $200. Conversely, shoe manufacturers like Nike outsource production to third-party factories, mostly in China which makes it more difficult to prevent counterfeiting from taking place. It is unlawful for the firms that have been hired to manufacture items that are almost identical to the designs (Howland, 2015). The counterfeiting of Nike items is an example of how a corporation may lose a lot of money. As a result, there is a little price difference between authentic and counterfeit items. Others on the list (Rolex, Louis Vuitton) do not have this problem because they are ultra luxury brands and there is a big difference in price unlike Nike. They

may not be as badly affected as Nike, for example. According to a study by Business Insider, Nike loses as much as 10% of its sales to counterfeit items every single year. Aside from that, the harm to its brand reputation is also significant. Regarding for this issue, we may discuss in focus groups and ask them whether they had bought any counterfeit Nike shoes or not? There is a chance that Nike’s most popular product will become obsolete Nike’s Investors are concerned about basketball shoes, Nike Air Jordan series slowing down, according to a recent UBS report (Schlossberg, 2016). This is of particular significance because Nike's basketball gear division accounts for 1214 percent of their total revenue. As for the good news, UBS believes the popularity and demand towards of Nike's Air Jordans is still "solid." In my opinion, Nike’s Air Jordan series shoes had been in the market for decades and the design haven’t been changed much, and athletic footwear fashion is contantly changing. Therefore in the focus group we may ask and discuss whether consumer are feeling fatigue towards Nike’s Air Jordan series design and feeling about it.

Appendix

Nike Brand Element

Nike Sponsorship

Nike Ambassadors

Nike PoP & PoD

Nike CBBE Model

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