Puma Ag Rudolf Dassler Sport Marketing Essay

Puma Ag Rudolf Dassler Sport merchandiseing EssayIntroductionThe report presents a comprehensive analysis of NIKE INC. NIKE was founded in January 1964 as Blue Ribbon Sports by Bill Bowerman and Philip Knight and incorporated in 1968 under the laws of the state of Oregon. Its worlds trail(p) designer, tradeer and distributor of authentic athletic footwear, app arl, equipment and accessories for a wide variety of sports and fitness activities.Product/ServiceNike produces a wide range of Footwear, attire and Sports Equipments. Nikes Wholly-owned subsidiaries hold Cole Haan, Converse Inc, Hurley International LLC and Umbro LtdTarget MarketNikes fanny market for their shoes, clothes and another(prenominal) accessories are males and females between 18 and 35 age old. It in addition derrieres active and sporty people as it provides proceedss for altogether kinds of sports.Goals and ObjectivesNikes goal is tocarry on his legacy of innovative thinking, whetherto develop product s that help athletes of every level of cleverness reach their potential, or to create business opportunities that set Nike apart from the competition and provide value for our shareholders.ManagementPhilip H. Knight, Chairman of the Board of DirectorsMark Parker, President master(prenominal) Executive Officer, NIKE, Inc.Charlie Denson, President, NIKE BrandINTRODUCTIONNIKE was founded in January 1964 as Blue Ribbon Sports by Bill Bowerman and Philip Knight and incorporated in 1968 under the laws of the state of Oregon. Its worlds leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Nike became globally recognized for its swoosh logo and its trademark slogan undecomposed do it. Nikes Wholly-owned subsidiaries includeCole Haan which designs markets and distributes luxury shoes, handbags, accessories and coats.Converse Inc which designs markets and distributes athletic foo twear, apparel and accessories.Hurley International LLC which designs markets and distributes action sports and youth lifestyle footwear, apparel and accessories.Umbro Ltd is leading United commonwealth based global football (soccer) brand.http//seekingalpha.com/symbol/nke/de bridge playerionhttp//invest.nike.com/phoenix.zhtml?c=100529p=irol-news obligateID=1380811highlight=http//www.ehow.com/ somewhat_6465548_nike-uses-endorsements-sponsorships.htmlhttp//en.wikipedia.org/wiki/Nike,_Inc.THE MARKET ENVIRONMENTGeographical MarketNikes world headquarters is located near Beaverton, Oregon, a suburb of Portland.Today Nike operates in more than 160 countries around the globe like U.S, Europe, Middle East, Africa, Asia Pacific and Americas.http//www.nikebiz.com/?sitesrc=emealpBusinessNike specializes in Footwear, apparels and equipments. In addition to its namesake Nike brand, the companionship as well develops and markets footwear and apparel products under the Cole Haan, Converse, Hurl ey International, and Umbro Inc which are nikes owned subsidiaries.http//www.nikebiz.com/?sitesrc=emealpPest-G AnalysisNike is an international organization and needs to focus on macro environmental factors. big environmental factors comprise Political, Economics, Society, and Technology.http//www.businessteacher.org.uk/free-business-essays/nike-business-essay/BCG MatrixNike is established within its markets from economies of scale.Hence places them in the Cash Cows socio-economic class on the BCG Matrix.Cash cows market harvesting has slowed and hence the products hold a fairly stable market share.http//www.businessteacher.org.uk/free-business-essays/nike-business-essay/THE COMPETITIONMain CompetitorsThe main competitors of Nike are-Adidas AGNew equilibrise Athletic Shoe, Inc.jaguar AG Rudolf Dassler Sporthttp//biz.yahoo.com/ic/42/42602.htmlSales and Profit trendsAdidas AGDuring the first half of the year 2010, Adidas sales are 5590 millions and profit is 2727 millions. There is an emergence of 11% of sales and an increase of 20.2% of profit in 2010.http//www.adidas-group.com/en/investorrelations/financial_data/income_statement/default.aspxNew Balance Athletic Shoe IncAt the end of the year 2008, the total gross was 1640.00 M.http//biz.yahoo.com/ic/42/42602.htmlPUMA AG Rudolf Dassler SportAt the end of year 2009, the total revenue was 3526.70 M.http//biz.yahoo.com/ic/91/91292.htmlMarket shareAdidas AGAdidas acquires 6% of the global athletic apparel market and 16% of the global athletic footwear market.New balance Athletic Shoes IncNew Balance Athletic Shoes acquires 6% of the global athletic footwear market.PUMA AG Rudolf Dassler SportPuma acquires 2% of the global athletic apparel market and 7% of the global athletic footwear market.http//www.wikinvest.com/stock/Nike_(NKE)Market_ShareTarget marketsAdidasAdidass target market is mainly the urban youth with the brand position and the potential target market is the principal consumption centers like the metros.http//www.scribd.com/doc/8760709/AdidasNew Balance Athletic Shoes IncNew Balance target young consumers with the same ardour of its rivalshttp//www.answers.com/topic/new-balance-athletic-shoe-incPuma AGBy shifting their brand proposition Puma broadened their target market from solely sport to lifestyle and even fashion.http//www.nundroo.com/ register/000008.htmlTHE COMPANYSales and profit trendsDuring the year 2009, Nikes sales were $2,583 million whereas in 2010 it is $2741 million. The profits earned during the year 2009 were $2216 million whereas in 2010 it is $2434 million. There is an increase of 6% in profits and 10% in sales in the year 2010.http//invest.nike.com/phoenix.zhtml?c=100529p=irol-finReportingMarket shareNike is the clear market leader with 31% of the global athletic footwear market and 7% of the global athletic apparel market.http//www.wikinvest.com/stock/Nike_(NKE)Market_ShareBusiness sectorsFootwearNike specializes in athletic footwear particularly in r unning, cross-training, basketball, and soccer. It also sells sport-inspired casual footwear like its Air Force Ones footwear line. Nikes Footwear sales increased by 14% in 2009 reaching nearly $10.3 billion. Hence 54% of revenue comes from the footwear sector.ApparelNike also sells sports apparel such as running shorts, t-shirts, and licensed apparel (with logos of college and professional sports teams). Apparel sales totaled $5.24 billion in 2009, a 0.2% increase from a year earlier.EquipmentsNike also sells sports equipment such as balls, protective equipment, and golf clubs. Sales of Nike brand equipment has reached $1.11 billion in 2009 which resulted in 9.5% increase from 2008.OthersNike also sells apparel and footwear under the Nike Golf, Cole Haan, Converse, Hurley International, and Umbro brand names.http//www.wikinvest.com/stock/Nike_(NKE)Market_SharenProject focusSince Nike is specialized and far-famed in athletic footwear, I have selected footwear sector as my project focus.SWOT analysishttp//www. case-assurance-solutions.com/swot-analysis-nike.htmlTHE COMPANYS MARKETING STRATEGYSegmentationAccording to Philip Kotler Market Segmentation is the subdividing of market intohomogeneous sub-set of customers, where any subset may conceivably be selected as market target to be reached with distinct Marketing Mix. (function() var scribd = document.createElement(script) scribd.type = text/javascript scribd.async = adjust scribd.src = https//www.scribd.com/javascripts/embed_code/inject.js var s = document.getElementsByTagName(script)0 s.parentNode.insertBefore(scribd, s) )() Nike segments the international markets by geographic location the United States, the Americas, Asia Pacific and Europe, Middle East and Africa (EMEA).TargetingA target market or target audience is a group of customers that the business has decided to aim its marketing efforts and ultimately its merchandise.http//en.wikipedia.org/wiki/Target_marketNikes target market f or their shoes, clothes and other accessories are males and females between 18 and 35 years old. It also targets active and sporty people as it provides products for all kinds of sports. (function() var scribd = document.createElement(script) scribd.type = text/javascript scribd.async = true scribd.src = https//www.scribd.com/javascripts/embed_code/inject.js var s = document.getElementsByTagName(script)0 s.parentNode.insertBefore(scribd, s) )() PositioningThe process by which marketers try to create an image or identity in the minds of their target market for its product, brand, or organization.http//en.wikipedia.org/wiki/Positioning_(marketing)Nike products are easily available in different retail and outlet stores all over the world such as Sun and Sand Sports. Nike products are also available at their own Nike store online and Nike town.Differentiation/Low Cost Leadership/FocusLow price compare to its high quality products.Edge cutting products.E.g. Nike + iPodCu shioning technologies in its shoes.Patents all its new technologiesGrowth StrategyTo create innovative products, amazing brand experiences, and premium retail destinations wherever consumers connect with NIKE.-Mark Parker, President and CEO, NIKE, Inchttp//www.nikebiz.com/media/pr/2010/09/23_FY11Q1Earnings.htmlGeneric strategyNike uses network structureNike implemented Differentiation StrategiesTHE MARKETING MIXProductNike is trying to meet the consumer needs. Nike realizes that the clients could be participating in more than one sporting event and they need a huge range of products to meet all their sporting needs. The Companys innovation has added prominent value to its products. For example, there are some Nike shoes that have been installed with radio devices to measure runners pace. Nikes quality products, loyal customer base and its outstanding marketing techniques all contribute to make the shoe empire a huge success. Some of the Nike shoes are Nike Jordon, Nike air force classic, Nike air max, Nike Shox etc.http//www.pickyourshoes.com/size/nike_air_forces.htmhttp//www.upublish.info/Article/Marketing-Mix-for-Nike/314859http//shopping.aol.com/articles/2008/05/12/nike-shoes/PriceNike has designed to be belligerent to other fashion shoe retailers. Nike targets the consumers who accept product intimacy and thus care less about the product. This enables Nike to set pretty higher prices than its competitors. This strategy helps to push product perceived product value. Once the consumers develop product intimacy, they come to associate their person with the product and will pay whatever price quoted on the product with Nike logo on it. Nike uses the vertical integration pricing strategy in which the steps problematic in the production and/or distribution of a product or service are controlled by NIKE, in order to increase that companys or entitys designer in the marketplace.http//www.upublish.info/Article/Marketing-Mix-for-Nike/314859http//www.suite101. com/content/audit-on-nikes-marketing-strategies-a94404PlaceNike shoes are sold in multi-brand stores and the exclusive Nike stores across the globe. Nike sells its product to about 20,000 retail accounts in the U.S. and in almost 200 countries around the world (http//www.suite101.com/content/audit-on-nikes-marketing-strategies-a94404) . The Company sells its products directly or it uses subsidiaries and distributors. It also sells its products through internet as it has its own online Nike store and Nike town. Because the company is located all over the world and it also uses licensed distributors because it is rather difficult to reach all those parts of the globe.http//www.upublish.info/Article/Marketing-Mix-for-Nike/314859PromotionNike has a twist of famous athletes that serve as brand ambassadors such as the Brazilian Soccer Team (especially Ronaldino, Renaldo, and Roberto Carlos), Lebron James and Jermane ONeal for basketball, Lance Armstrong for cycling, and Tiger Woods for G olf. Sponsoring of events is another great promotional technique for Nike. Web sites are a great promotional tool as they cover these events. Events like Hoop It Up and The Golden tungsten Invitational. Nike make the websites exclusively for a sport such as nikebasketball.com, nikefootball.com, and nikegolf.comhttp//www.upublish.info/Article/Marketing-Mix-for-Nike/314859EVALUATION OF COMPANYS STRATEGIES AND TACTICSEvaluation of companys current positionStrong brand recognition. binding endorser.Global leader in athletic shoe market.The swoosh is nationally recognized by 97 percent of the American population.Nike is leading the U.S. marketplace in athletic footwear. Through aggressive advertising, endorsements by the leading professional athletes in nearly every major sport, and a high-quality product, Nike has been able to sustain a competitive advantage. They continue to show growth in the athletic footwear industry.http//www.docstoc.com/docs/17947394/With-adidas-and-Reebok-Combin ed_-Will-Nike-Still-Crush-theEvidence of companys success (refer to the graphs in appendix)The total revenue during 2010 was $19014 million, a little less than the previous(prenominal) year.EPS performance of Nike has increased from $3.03 in 2009 to $3.86 in 2010.Return on invested capital has also increased from 17.8% in 2009 to 20.7% in 2010.The gross profit has increased from $8,604,400 in 2009 to $8,800,400 in 2010.The net income has increased from $1,486,700in 2009 to $1,906,700 in 2010.Revenue distributions of Nike in international markets have increased from 49% in 2009 to 53% in 2010.increase stock performance by 90% in comparison of SP 500.Nike has always remained on the preference list of athletes and athletic footwear was indeed the first category of products launched by the company more than 30 years ago. Today, you can see the craze for its products, not only among athletes, but also among golfers and other sportspeople.http//media.corporate-ir.net/media_files/IROL/10/ 100529/nike-ar-20100804/index.htmlselect_financialsProspects for future day growth/success.Offer economical price to variable consumers around the world.Open up more stores and franchise to reach maximum buyers.Have more parley with their customers and receive feedback from them to help create imagine that Nike care for its customers.Come up with more new ideas of designing the shoes.CONCLUSIONNike, Inc. is a company rooted in competition. From equipping athletes with the finest sports equipment in the world to continuously improving their financial performance, Nike dominates its competitors. Phil Knight and Bill Bowerman probably could not have imagined in 1962 to what degree their $500 investments would pass on in 2010. They did know that product quality and innovation would help athletes to achieve greater goals. It is one that has helped athletes and stakeholders alike to realize athletic and financial greatness. Despite a changing marketplace for athletic footwear, Nike wan ts to expand their product lines and marketing reach to become a more powerful global brand. Nike has existed for more than 35 years and is still willing to travel a long distance of popularity.APPENDICES400px-Footwear_market_shares.png400px-Apparel_market_shares.pnghttp//www.wikinvest.com/stock/Nike_(NKE)Market_Sharechart-revenue.gifchart-eps.gifchart-roi.gifchart-stock.gifchart-distrib.gifhttp//media.corporate-ir.net/media_files/IROL/10/100529/nike-ar-20100804/index.htmlselect_financials