Puma Ag Rudolf Dassler Sport Marketing Essay

Puma Ag Rudolf Dassler Sport Marketing EssayIntroductionThe Report presents a comprehensive analysis of NIKE INC. NIKE was founded in January 1964 as raunchy Ribbon Sports by Bill Bowerman and Philip Knight and corporal in 1968 under the laws of the state of Oregon. Its foundings leading designer, seller and distributor of authentic gymnastic footgear, clothing, equipment and accessories for a replete(p) variety of sports and fitness activities.Product/ServiceNike produces a wide range of Footwear, App bel and Sports Equipments. Nikes Wholly-owned subsidiaries include dinero Haan, Converse Inc, Hurley International LLC and Umbro LtdTarget MarketNikes target market for their shoes, clothes and some other accessories argon males and females among 18 and 35 years old. It excessively targets active and sporty people as it provides crossways for in all kinds of sports.Goals and ObjectivesNikes tendency is tocarry on his legacy of innovative thinking, whetherto develop produc ts that overhaul athletes of every level of ability partake their potential, or to create business opportunities that ring Nike apart from the competition and provide value for our sh areholders.ManagementPhilip H. Knight, chairwoman of the Board of DirectorsMark Parker, President Chief 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 gymnastic footgear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Nike became globally recognized for its whoosh logo and its trademark slogan Just 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 acrobatic footgear, appa rel and accessories.Hurley International LLC which designs markets and distributes action sports and callowness lifestyle footwear, apparel and accessories.Umbro Ltd is leading United Kingdom ground global football (soccer) brand.http//seekingalpha.com/symbol/nke/descriptionhttp//invest.nike.com/phoenix.zhtml?c=100529p=irol-newsArticleID=1380811highlight=http//www.ehow.com/about_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 orchis like U.S, Europe, Middle East, Africa, Asia peace-loving and Americas.http//www.nikebiz.com/?sitesrc=emealpBusinessNike specializes in Footwear, apparels and equipments. In addition to its namesake Nike brand, the company overly develops and markets footwear and apparel products under the Cole Haan, Converse, Hurley International, and Umbro Inc which are nikes owned subsidiaries.http//www.nikebiz.com/?sitesrc=emealpPest-G AnalysisNike is an international organization and needs to revolve about on macro environmental factors. Macro 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. and so places them in the Cash Cows category on the BCG Matrix.Cash cows market proceeds has slowed and then 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 AG rude(a) Balance Athletic Shoe, Inc.PUMA AG Rudolf Dassler Sporthttp//biz.yahoo.com/ic/42/42602.htmlSales and returns trendsAdidas AGDuring the first half of the year 2010, Adidas gross revenue are 5590 trillions and profit is 2727 millions. There is an increase of 11% of sales and an increase of 20.2% of profit in 2010.http//www.adidas- convocation.com/en/investorrelations/financial_data/income_statement/default.aspxNew Balance Athletic Shoe IncAt the end of the year 2008, the total revenue 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 counterbalance 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/ furrow/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 zeal of its rivalshttp//www.answers.com/ composition/new-balance-athletic-shoe-incPuma AGBy shifting their brand proposition Puma broadened their target market from all sport to lifestyle and even fashion.http//www.nundroo.com/archives/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 trig 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 running, 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 relieve oneselfing about $10.3 billion. Hence 54% of revenue comes from the footwear sector.ApparelNike also sells sports apparel such(prenominal) as running shorts, t-shirts, and licenced 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 branded 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 storied in athletic footwear, I project selected footwear sector as my project focus.SWOT analysishttp//www.quality-assurance-solutions.com/swot-analysis-nike.htmlTHE COMPANYS market 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 = school 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) )() 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 for 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. note/Low Cost Leadership/FocusLow price compare to its high quality products. asperity cutti ng products.E.g. Nike + iPodCushioning technologies in its shoes.Patents all its new technologiesGrowth StrategyTo create innovative products, direful 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 mesh topology structureNike implemented Differentiation StrategiesTHE MARKETING MIXProductNike is trying to run the consumer needs. Nike realizes that the clients could be active 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 coarse value to its products. For example, there are some Nike shoes that halt been installed with radio devices to measure runners pace. Nikes quality products, loyal customer base and its great marketing techniques all leave to perplex the shoe empire a huge success. Some of the Nike shoes are Nike J ordon, Nike air aim 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 competitive 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 involved in the production and/or distribution of a product or service are controlled by NIKE, in order to increase that companys or entitys power in the marketplace.http//www.upublish.info/Article/Marketing-Mix-for-Nike/314859http//w ww.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 or so 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 number 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, diaphysis Armstrong for cycling, and Tiger Woods for Golf. 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 West 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 true positionStrong brand recognition.Top endorser.Global leader in athletic shoe market.The swosh is nationally recognized by 97 percent of the Ameri toilette 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-R eebok-Combined_-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 year.EPS cognitive process 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.Increased 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 growth/success.Offer economical price to variable consumers around the world.Open up more stores and franchise to reach maximum buyers.Have more communication with their customers and receive feedback from them to help create imagine that Nike care for its customers. educe up with more new ideas of designing the shoes.CONCLUSIONNike, Inc. is a company rooted in competition. From render 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 yield 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 ever-changing marketplace for athletic footwea r, Nike wants to expand their product lines and marketing reach to become a more potent global brand. Nike has existed for more than 35 years and is still willing to travel a long outdistance 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