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Nike Presentation

http://www.sportkc.org/events/images/nike_swoosh.jpg

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Topics

Company & Job Description

Career Path

Hard and Soft Skills

Examples of Work

The Good, The Bad, The Ugly

Words of Wisdom

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The Company NIKE, Inc. (NIKE), incorporated in 1968, is engaged in the design, development and worldwide

marketing of footwear, apparel, equipment, and accessory products. NIKE sells athleticfootwear and athletic apparel. It sells its products to retail accounts, through NIKE-owned retail,

including stores and Internet sales, and through a mix of independent distributors andlicensees, in over 180 countries around the world. Its products include running, training,basketball, soccer, sport-inspired urban shoes, and children‟s shoes. It also markets shoesdesigned for aquatic activities, baseball, bicycling, cheerleading, football, golf, lacrosse,outdoor activities, skateboarding, tennis, volleyball, walking, wrestling, and other athletic andrecreational uses. On March 3, 2008, the Company acquired Umbro Ltd. (Umbro), whichdesigns, distributes, and licenses athletic and casual footwear, apparel and equipment,primarily for the sport of soccer, under the Umbro trademarks. On April 17, 2008, it completedthe sale of its Bauer Hockey subsidiary.

Nike's athletic footwear products are designed primarily for specific athletic use, although alarge percentage of the products are worn for casual or leisure purposes. The Company sellssports apparel and accessories covering most of it product categories, which includes sports-inspired lifestyle apparel, as well as athletic bags and accessory items. It markets footwear,apparel and accessories in collections of similar design or for specific purposes. It also marketsapparel with licensed college and professional team, and league logos.

NIKE sells a line of performance equipment under the NIKE brand name, including bags,socks, sport balls, eyewear, timepieces, electronic devices, bats, gloves, protective equipment,golf clubs, and other equipment designed for sports activities. It also has agreements for

licensees to produce and sell NIKE brand swimwear, team sports apparel, training equipment,children‟s clothing, electronic devices, eyewear, golf accessories, and belts. The Company alsosells small amounts of various plastic products to other manufacturers through its wholly ownedsubsidiary, NIKE IHM, Inc

LY we ended at $18 Billion.

http://jtclothiers.net/images/cole_haan_logo.jpg

http://coresoccer.co.uk/images/umbro_logo.jpg

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Before there was the Swoosh, before there was Nike, there were two visionary men whopioneered a revolution in athletic footwear that redefined the industry.

Bill Bowerman was a nationally respected track and field coach at the University of Oregon,who was constantly seeking ways to give his athletes a competitive advantage. Heexperimented with different track surfaces, re-hydration drinks and – most importantly – innovations in running shoes. But the established footwear manufacturers of the 1950s ignoredthe ideas he tried to offer them, so Bowerman began cobbling shoes for his runners.

Phil Knight was a talented middle-distance runner from Portland, who enrolled at Oregon in the

fall of 1955 and competed for Bowerman‟s track program. Upon graduating from Oregon,Knight earned his MBA in finance from Stanford University, where he wrote a paper thatproposed quality running shoes could be manufactured in Japan that would

compete with moreestablished German brands. But his letters to manufacturers in Japan and Asia wentunanswered, so Knight took a chance.

He made a cold-call on the Onitsuka Co. in Kobe, Japan, and persuaded the manufacturer ofTiger shoes to make Knight a distributor of Tiger running shoes in the United States. When thefirst set of sample shoes arrived, Knight sent several pairs to Bowerman, hoping to make asale. Instead, Bowerman stunned Knight by offering to become his partner, and to provide his

footwear design ideas to Tiger.

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They shook hands to form Blue Ribbon Sports, pledged $500each and placed their first order of 300 pairs of shoes in January1964. Knight sold the shoes out of the trunk of his green PlymouthValiant, while Bowerman began ripping apart Tiger shoes to seehow he could make them lighter and better, and enlisted hisUniversity of Oregon runners to wear-test his creations. Inessence, the foundation for what would become Nike had beenestablished.

But Bowerman and Knight each had full-time jobs - Bowerman atOregon and Knight at a Portland accounting firm - so they neededsomeone to manage the growing requirements of Blue RibbonSports. Enter Jeff Johnson, whom Knight had met at Stanford. Arunner himself, Johnson became the first full-time employee ofBlue Ribbon Sports in 1965, and quickly became an invaluable

utility man for the start-up company.

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He created the first product brochures, print ads and marketing materials, and even shot the photographs forthe company‟s catalogues. Johnson established a mail-order system, opened the first BRS retail store (locatedin Santa Monica, Calif.) and managed shipping/receiving. He also designed several early Nike shoes, andeven conjured up the name Nike in 1971.

Around this same time, the relationship between BRS and Onitsuka was falling apart. Knight and Bowermanwere ready to make the jump from being a footwear distributor to designing and manufacturing their ownbrand of athletic shoes.

They selected a brand mark today known internationally as the “Swoosh,” which was created by a graphicdesign student at Portland State University named Carolyn Davidson. The new Nike line of footwear debutedin 1972, in time for the U.S. Track & Field Trials, which were held in Eugene, Ore.

One particular pair of shoes made a very different impression – literally – on the dozen or so runners who triedthem. They featured a new innovation that Bowerman drew from his wife‟s waffle iron – an outsole that hadwaffle-type nubs for traction but were lighter than traditional training shoes.

With a new logo, a new name and a new design innovation, what BRS now needed was an athlete to endorse

and elevate the new Nike line. Fittingly for the company founded by Oregonians, they found such a young manfrom the small coastal town of Coos Bay, Ore. His name: Steve Prefontaine. Prefontaine electrified the packed stands of Oregon‟s Hayward Field during his college career from 1969 to

1973. He never lost any race at his home track over the one-mile distance, and quickly gained nationalexposure thanks to cover stories on magazines like Sports Illustrated and his fourth-place finish in 1972 inthe 5,000m in Munich.

Pre challenged Bowerman, Johnson and BRS in general to stretch their creative talents. In turn, he became apowerful ambassador for BRS and Nike after he graduated from Oregon, making numerous appearances onbehalf of BRS and sending pairs of Nike shoes to prospective runners along with personal notes ofencouragement.

His tragic death at age 24 in 1975 cut short what many believed would have been an unparalleled career intrack – at the time of his death, he held American records in seven distances from 2,000m to 10,000m. ButPrefontaine‟s fiery spirit lives on within Nike; Knight has often said that Pre is the “soul of Nike.”

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Nike entered the 1980s on a roll, thanks to the successful launch of Nike Air technology in theTailwind running shoe in 1979. By the end of 1980, Nike completed its IPO and became apublicly traded company. This began a period of transition, where several of Nike‟s early

pioneers decided to move on to other pursuits. Even Phil Knight stepped down as president formore than a year in 1983-1984, although he remained the chairman of the board and CEO. By the mid-1980s, Nike had slipped from its position as the industry leader, in part because

the company had badly miscalculated on the aerobics boom, giving upstart competitors analmost completely open field to develop the business. Fortunately, the debut of a new signatureshoe for an NBA rookie by the name of Michael Jordan in 1985 helped bolster Nike‟s bottomline.

In 1987, Nike readied a major product and marketing campaign designed to regain the industrylead and differentiate Nike from its competitors. The focal point was the Air Max, the first Nike

footwear to feature Nike Air bags that were visible. The campaign was supported by amemorable TV ad whose soundtrack was the original Beatles‟ recording of „Revolution.‟ A year later, Nike built on its momentum from the „Revolution‟ campaign by launching a broad

yet empowering series of ads with the tagline “Just do it.” The series included three ads with ayoung two-sport athlete named Bo Jackson, who espoused the benefits of a new cross-training shoe.

In 1989, Nike‟s cross-training business exploded, thanks in part to the incredibly popular “BoKnows” ad campaign. By the end of the decade, Nike had regained its position as the industryleader, the first and only time a company in the athletic footwear/apparel industry has

accomplished such a feat. Nike has never relinquished that position again.

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Buoyed by a series of successful product launches and marketing campaigns, Nike entered the1990s by christening its beautiful world headquarters in suburban Portland, Oregon. InNovember of 1990, Portland became the first home to a new retail-as-theatre experience calledNiketown, which would earn numerous architectural design and retail awards and spawn morethan a dozen other Niketown locations around the USA and internationally.

While Nike had designed footwear and apparel for golf and soccer for a number of years, themid-1990s signaled a deepening commitment to truly excel in these sports. In 1994, Nikesigned several individual players from what would be the World Cup-winning BrazilianNational Team. In 1995, Nike signed the entire team, and began designing the team‟sdistinctive uniform. Nike also signed the US men‟s and women‟s national soccer teams, as

well as dozens of national teams around the world. In 1996, Nike Golf landed a vastly talented but as-yet-unproven young golfer named Eldrick

“Tiger” Woods for a reported $5 million per year. Competitors laughed and critics howled atNike‟s „folly,‟ until Tiger won the 1997 Masters by a record 12 strokes. No one is laughing now.

Nike also began investing in the sport of cycling, including a promising young cyclist whoappeared to be on his way to success until he was diagnosed with cancer. He lost most of hissponsors, but Nike elected to stay with him. In 1999, Lance Armstrong‟s incredible comebackresulted in the first of what would be seven consecutive Tour de France titles.

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Nike rang in the new millennium with a new footwear cushioning system calledNike Shox, which debuted during Sydney in 2000. The development of Nike Shox

culminated more than 15 years of perseverance and dedication, as Nike designersstuck with their idea until technology could catch up. The result was a cushioningand stability system worthy of joining Nike Air as the industry‟s gold standard.

Just as Nike‟s products have evolved, so has Nike‟s approach to marketing. The2002 “Secret Tournament” campaign was Nike‟s first truly integrated, globalmarketing effort. Departing from the traditional “big athlete, big ad, big product” formula, Nike created a multi-faceted consumer experience in support of theWorld Cup.

“Secret Tournament” incorporated advertising, the Internet, public relations, retailand consumer events to create excitement for Nike‟s soccer products and athletesin a way no single ad could ever achieve. This new integrated approach hasbecome the cornerstone for Nike marketing and communications.

Today, Nike continues to seek new and innovative ways to develop superiorathletic products, and creative methods to communicate directly with ourconsumers. Nike Free, Nike+ and Nike Sphere are just three examples of thisapproach.

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Current Job Description

Senior Product Line Manager, Core Performance Division-Nike Running

Manage the Global Footwear Product Line of Nike Running from $75 andunder.

Have a place on the Innovation Steering committee for new productinnovation

Drive our Closer to Consumer initiative which strives to move our productcloser to market

Write the strategic plan which includes consumer silo definitions,marketplace mapping, analysis of our competition, and creation of ourproduct strategy.

Manage a Associate PLM who oversees the Women‟s Running business.

Integrate with our Inline running partners to make sure we have acohesive running line as we Got To Market.

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Hard & Soft Skills

Hard skills: Besides the obvious market knowledge the business sides of things is very important,

i.e. the financial side of things. I use mostly excel to analyze unit/seasonal forecast,model profitability, and regional breakdown. Creating great product is only half of it, wealso need to be profitable.

Soft Skills: How you handle yourself in a professional manner is crucial. Be yourself but take your

job seriously.

Meeting etiquette, treat others as you would like to be treated. How you handle success is as important as a defeat or a mistake. Communication: Interpersonal, Electronic, informal, and formal communication are all

included here. Actively listen. If you listen twice as much as you speak your words willmean more.

Know who you are working with, i.e. color insights.Red= Be brief. Be bright. Be gone. Obey me

Yellow= involve me. Party, more margaritas.Blue= give me details. Organize.Green= show me you care. “I have muffins do you want some.” Hugs

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Marketing Process Strategic Plan: This is where we do the homework and analysis of the marketplace, the competition, and the

Consumer. The focus will range from global to local in it‟s scope. We will try and focus on our industry, but makenote of any major or minor changes in the product around us. On the financial side we will break down our history,

identify any trends, and build a strategy against it.

3 Year Plan: This is where the data helps support a plan that leads us to a medium or long term goal. The goalwill obviously be put the stake in the sand, and show how we will get there. The plan should show a progression ofwhat steps we will take to get there.

Current year plan: This plan manages the current year, and day to day look at what seasons and projects we arecurrently juggling.

Seasonal Line Plan: This displays a more focused look at a particular season in the calendar year. It will behighlighted by a “theme” with a model plan lined up against it. The product creation or design theme will be usedas a filter to focus our efforts.

Model Briefs: This is a document that shows a laser focus on a specific opportunity, performance problem,consumer, region, and how it should look at to retail.

Product design: Depending on the medium this will be anywhere from napkin sketches to illustrator files of thevision for the project. We will deliberate on what the consumer will need and start to focus our efforts. This willevolve from 2D into 3D designs and parts which help our team to make more informed decisions.

Color and Materials are applied, which is a critical aspect of product creation. These 2 things are major factors inthe decision making.

Process checkpoints: We have multiple sessions with our regional and merchandising partners to make sure wehave enough of the most relevant product from consumers within their regions.

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Resume/Interview Advice

Resume-Try to keep it to 1 pageInterviews

Don‟t try and BS if you don‟t know the answer

Answer the question and stop talking.

Make and keep eye contact

Make it Personal

Show and bring tangible examples of your

work Sell Yourself

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Words of Wisdom Work Smart and Hard Multi-tasking and Organization is key. Attitude, be an energy giver. Team Player vs. ladder climber. Results = Buzz. Get Real world Experience Be realistic. Keep your head in the clouds but your feet on the

ground. You create your own luck and Opportunities. Face to face conversations and phone calls are always more

impactful than a text or email. Put the Blackberry down. Be Prepared.

Stay Focused. Have a nice work and life balance. Don‟t let the past define you.

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VALUE CHAIN OF

NIKE

Prepared by:

Hemali anadkat (2)

Banty haldhruwala (35)Monica mota (57)Hiral Parikh (61)Nishra Shah (94)

Amita Ganava

Just do it!

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What is value chain?

The network of firms that bring products tomarket, from companies that produce rawmaterials to retailers and others that deliever

finished products to consumer. Economic valueis added through the coordinated managementof the flow of phisycal goods and associatedinformation at each stage of the chain.

We can say that a value chain is “a string of companies working together to satishfy marketdemand”

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THE VALUE CHAIN:

FIRM’S INFRASTRUCTURE

HRM

PRODUCT DEVELOPMENT AND TECHNOLOGY

PROCUREMENT

INBOUND

LOGISTICS

OPERATIONS OUTBOUND

LOGISTICS

MARKETING

AND SALES

SERVICES

PRIMARY ACTIVITIES

SUPPORT

ACTIVITIES

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NIKE „s Introduction: Nike means the greek goddess of victory

Major publically traded sports wear andequipement supplier base in the U.S

Head quartered in the portland metro

politen area of oregon, near beaverton. World‟s leading suppliers of athletic shoes

and apparel and a major manufacturer of

sports equipments with revenue in accessof $16 billion USD in 2007.

Employed over 30,000 people world wide.

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Contd…

Nike markets its products under its ownbrand as well as nike gold, nike pro, nikeplus, air jordan , nike skate body,jeamstarter, and subsidaries including colehaan, hurley international, umbro andconverse.

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Support activities:1. Infrastructure:

Diversify business portfolio with new acquisitions Empowerment of top management. Structure of matrix. Focus on key countries, key factors, critical

compliances.

Drive a lean effective compliance process throughstrategic knowledge, remediations and varification.

Drive a shared accountability and work placeownership of CR compliance.

Encourage work ethics. Financially decipilne. Calculate risk taking. Strong financial position with minimal long term

debts.

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Contd..2. Human Resource:

core values of the companies are honesty,competitiveness and team work. Operates with minimum of hierarchy. Lot of collabration and consensus decision making. Use matrix organisation.

Balances creativity with structure and decipline. Strong management team and good corporate

strategy in both north american and overseasmarket.

Socializing

Mix of new hires and promotionsPromotions= consistency / company knowledgeNew hire employees= business minded

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Contd… Network structure.

Athelete management.

Monetoring labour audit, compliance visit, brandaudits.

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Contd…

3. Technology:

First mover advantage in E-Commerce.

Diversity and variety in products offered onthe web (footwear, apparel, sporting

equipments etc).Innovative designs in footwear enabling

customers to design their own shoes online.

AIR SOLE technology- specially used.

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Contd….

4. Procurement:

Just in time strategy.

components arrive as they are needed.

finished goods shipped after leaving assemblyline.

Safety stock

buffer for lack of flexibility in supply chain.

Bullwhip effectinformation about product demand gets distorted asit passes from one entity to next across supply chain.

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Role of Inventory in the SupplyChain:

Improve Matching of Supplyand Demand

Improved Forecasting

Reduce Material Flow Time

Reduce Waiting Time

Reduce Buffer Inventory

Economies of ScaleSupply / Demand

Variability

Seasonal

Variability

Cycle Inventory Safety Inventory

Seasonal Inventory

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INVENTORY

PRODUCTION ABC DEMAND OTHER

APPLICATION ANALYSIS TYPE

Raw Materials A Items Independent MROComponents B Items Dependent

WIP C ItemsSub-assembliesFinished Goods

Inventory Classification:

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Primary Activities:1. Inbound logistics:

Low production cost. Outsource non-core activities. Focus on their core-competencies of

• Product design

• Maketing• AIR SOLE Tech.

Due to virtual relationship with the companieswho assemble nike products allows them toswitch to companies that provide low labour cost

& a quality product. Worldwide supply chain project used by nike help

it to reduce inventories and investment risk.

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Contd…

Shared process through a wholly ownedsubsidiary called nike. In house manufacturing (Nike IHM) produces many of specialized rubber,foam and plastic components used in its

products. Nike IHM‟s primary facilities are located in

portland oregon and st. louis, missain.

C d

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Contd..2. Operations:

Centralisation of R&D in oregon.

Application of NSRL.

Nike requires manufacturing partners to devoteenvironmental resources.

Nike provides technological resources to itsresources centre such as R&D centres,laboratories.

Nike personnel in each factory to assist factorymanagement.

working on low and no packaging options. reduce box styles from 18 to 2.

Corrugated card board.

100% post consumer content.

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Contd…

No heavy metal inks.

no glues or solvents

Boxes manufacture in zero net dischargefacilities.

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Contd…

3. Outbound logistic: Strong control over its own distribution channel.Powerful suppliers one company is producing 40%

of worldwide shoes.

Ability for forward integration.Due to virtual relation with suppliers.

Reduce administrative cost. Reduce pay roll cost. Can increase the speed their product flows through

supply chain This allows them cut down on the amount of time

required from the initial design to, production andthen distribution.

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Contd.. Nike is using HP servers , software and

consulting service to run their new supply chainproject.

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Contd..

4. Marketing and sales:Brand recognisation and reputation.Higher allocation of marketing budgets.Use endorser in every sport.Emerging brand name.Strong customer base.

Diversity and variety of products offer on theweb.Ecommerce reduce the cost of good sold

thus improving the “bottom line”.

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Contd..

5. Services:Improved service to meet customer/consumer

needs through the use of the technology.

Improved process , information & productquality.Provide customize shoes for customers.A company called planner has installed touch

screen system in nike stores to allow customersto build their own shoes.

Nike also allows customers to order customizeshoes online through their company web sites

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Thank You

“Real leadership is not about prestige, power or status.It is about responsibility.”

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NIKE

A Public Relations Approach

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Robert Albright

Jessica Joye

Suzanne Little

Matt Minchew

Jason Waller

Megan Wilson

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Mission Statement

To lead in corporate citizenshipthrough proactive programs that

reflect caring for the world familyof Nike, our teammates, our

consumers, and those whoprovide services for Nike

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What Nike Does

Create authenticathletic footwear,apparel, equipment and

accessories for sportsand fitness enthusiasts

Through subsidiaries,design and sell a line of

men‟s and women‟sdress and casual shoesand accessories

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Principle Products

Began with longdistance running

shoes in 1963 Past 17 years: Air

Jordan basketballshoes

Wide range ofshoes, apparel andequipment

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“Our Heroes”

Michael Jordan

Tiger Woods

Michael Johnson Mia Hamm

Celebrityendorsements lendcredibility and

notoriety toproducts

http://www.nikebiz.com/story/hero_1.shtml



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Financial Indicator

“A growth company

that has not grown”

Impact of specificproducts (AirJordan's, teenagemarket)

3 Month Stock Performance

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Brand and Logos

The “Swoosh” only

cost $35

Memorable, simplein form, workable inall sizes, invokes astrong signal

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Nike DominanceComparison of Annual Revenue

0

1

2

3

4

5

6

7

8

9

10

Nike Fila Reebok New Balance Adidas

Corporation

2 0 0 1

A n n u a l S a l e s ( I n B i l l i o n s )

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Athletic Shoe Market

Share, 2000

Athletic Shoe Market Share, 2000

Adidas

15.1%

Nike

39.2%

Asics

2.1%

Saucony

1.4%K-Swiss

3.6%

Reebok

10.9%

New Balance

9.4%

Timberland

2.9%

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STRENGTHS

Strong and meaningfulresponse to laborcriticisms

High quality productsand good overallreputation

Phil Knight‟smanagement and

leadership Brand recognition and

effective marketing

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WEAKNESSES

Poor communication of labor practices

Insufficient line of affordable shoes

Uninformed factory workers

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0.00%

5.00%10.00%

15.00%

20.00%

25.00%

30.00%35.00%

40.00%

Well

Below

Average

Below

Average

Average Above

Average

Well

Above

Average

No

Opinion

Nike's Overall Reputation

Nike’s Overall Reputation

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0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Well

Below

Average

Below

Average

Average Above

Average

Well

Above

Average

No

Opinion

Nike Compared to Competition

Nike Compared to

Competition

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0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

Well

Below

Average

Below

Average

Average Above

Average

Well

Above

Average

No

Opinion

Fairness of Nike's Labor Practices

Fairness of Nike’s Labor

Practices

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0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%40.00%

45.00%

Well

Below

Average

Below

Average

Average Above

Average

Well

Above

Average

No

Opinion

Quality of Nike's Products

Quality of Nike’s Products

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OPPORTUNITIES

Increased sales due to the strengtheningeconomy

More positive public perception of Nike‟ssocial responsibility

Growth through increased presence in

low- to mid-priced shoe market

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THREATS

Increased awareness of human rights

Growing competition

Competitors attracting female consumers Mounting disapproval of alleged

“corporatization” of college athletics

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Recommended

ActionA Closer Look At Labor Practices

And Potential Sales

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OBJECTIVE 1

To increase positive public perception ofNike‟s labor practices by 20% by April 16,

2003

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STRATEGY 1-1

Increase communication of positive stepsNike is taking concerning labor practices

Key Publics:

Media

Consumers (esp.university students)

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TACTICS

Create fact sheets outlining minimumwage discrepancies among countries

Circulate “Letters to the Editor”highlighting positive aspects of Nike‟s

labor practices

Bring a visible Nike representative tocollege campuses

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TACTICS

Create focus groups to assess Nike‟s

labor practices

Distribute a video news releasepromoting Nike‟s efforts in the global

community

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STRATEGY 1-2

Make changes to improve Nike‟s current

labor conditions

Key Publics:

Foreign government agencies

Nike employees

Social activist organizations

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TACTICS

Create an anonymous system to protectwhistleblowers

Specify and inform employees of their rightsand responsibilities under the Nike code ofconduct

Provide employees with time and money to

enroll in Nike‟s educational programs Ensure surprise visits are a surprise

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EVALUATION

Repeat surveys atsix month intervals togauge public

perception

Revisit with focusgroups to record theiropinions of

improvements

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OBJECTIVE 2

To increase American shoe sales by$100 million by April 16, 2003

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STRATEGY 2-1

Establish a better presence in theaffordable shoe market

Key Publics:

MediaConsumers only willing to spend lessthan $85

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TACTICS

Develop advertising tactics to promote Nike‟sPresto line of shoes ($60-$85)

Aggressively target budget consumers through

sales promotions and discounts on mid-pricedshoes

Build a stronger relationship with moderatelypriced retailers through sales associates

Increase number of Nike outlet stores offeringdiscounted merchandise

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STRATEGY 2-2

Establish a competitive presence amongfemale consumers

Key Publics:

Media

Female consumers(potential and real)

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TACTICS

Create advertisements that showcase Nike‟sfemale shoes by featuring professional athletesand non-celebrity females who use Nike

products Develop a shoe named for a celebrity female

athlete, such as Mia Hamm, comparable to AirJordan‟s

Actively pursue more female athletes forendorsements and advertisements byextending competitive contract offers

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EVALUATION

Measure growth ofdomestic shoe

sales at six monthintervals

Separately recordsales of mid-

priced shoes andwomen‟s shoes

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QUESTIONS?

bromert

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