NIKE

NIKE

Abstract

The research paper aims to provide planning tools in order to help NIKE to design better strategy for the new product launching in UK. The paper also includes the snapshot of the footwear industry. BCG Matrix, Ansoff Matrix along with the pestle analysis is critically analyzed to provide better guidance to NIKE. Furthermore, Geo-Demographic Segmentation Approach is given in the paper. In addition, the limitations and benefits of the planning tools to NIKE are also included in the paper.

Table of Contents

NIKE0

Abstract1

Introduction3

Background4

Planning Tools5

BCG Matrix5

Ansoff Matrix8

PESTLE model10

Geo-Demographic Segmentation Approach12

Benefits & Limitations of the Models13

NIKE

Introduction

Nike is the best athletic and sportswear and accessories company in the world for many decades. Additionally, Nike is also the best among all in the US in these product segments and categories. There is also some myth regarding Nike that it is the name of some ancient Greek goddess. However, it remains the number 1 brand in the world. Currently, it is offering multiple products in the categories of Nike Sportswear, Nike Football, Nike Basketball, Nike Running, Nike Women, and Nike Soccer.

Nike is regarded as one of the supreme and globally recognized brand. Nike. Inc is an integrated company that develops market and designs world-wide athletic footwear, equipment, apparel and accessories. This finest company employs both non-traditional and traditional distribution channels in almost 200 countries. The primary market region of Nike is Europe, Asia, United States and the Americas. The company is largest athletic shoes supplier of the world. Nike is United State based company, and it's headquarter is situated near Beaverton, Oregon (www.NIKE.com).

The company's revenues exceed to over 18.6 US dollars in the fiscal year of 2008. The four top competitors hold over 70% of the market share of athletic footwear, one can analyze the intensity of highly competitive environment. The barriers to entry are minimal, because anyone can enter the market by producing creative and innovative design products. The chances of success for new entrant are shaky. Nike Company is well managed and organized company who has a very strong brand image and credibility in the market. Nike is facing tough competition from Adidas and Puma. The success story of Nike is the low labor wage in developing countries, with strong marketing strategies and advertisement campaigns. Nike aim is to bring awareness about the brand to its target customers, by creating hype, anticipation and excitement through solid public relation tools execution.

Background

The sportswear industry is one of the industries showing the greatest changes in recent decades. Currently produced in the world about 12 billion pairs, with an average of 2 pairs per person. Interestingly, the fact that 60% of this production is exported. China (produces 6,500 million pairs / year and exports 4 billion) and India (700 million pairs / year) are the countries that recorded the most spectacular growth of this industry, the scene shifting to nations that were once major producers such as Italy, whose production has been reduced to 400 million pairs / year.

On the other hand, the large ...