Nike Marketing Plan

The Indian Footwear Industry - A Sectoral Analysis

• Pegged at INR 10,000 Crore in value terms

• Expected growth at a CAGR of over 20% for the period spanning from 2008 to 2011

• Men's footwear occupies nearly 58% of the total Indian footwear retail market.

• Casual footwear occupies nearly 70% of the total Indian footwear retail market

• Untapped opportunity in an exclusive women, kid or other functional category

Market Share of Key Players

Future market of Sports Footwear-

Key Drivers

Future market of Sports Footwear-

Key Drivers

Future market of Sports Footwear-

Key Drivers

Porter’s Five Forces Model

• Bargaining Power of Suppliers

-Subcontracts to more than 500 small scale factories -Low bargaining power due to Nike’s big volume

• Bargaining Power of Buyers

-Competitive products all compete on differentiation-Low switching costs

• Threat of Substitute Products

-Non-existent

Porter’s Five Forces Model

• Threat of Potential New Entrants

-Economies of Scale-Strong and Well Established Brand Name-High Capital requirements-Low threat

• Intensity of Rivalry between Firms in the Industry

-High competitive in an Oligopoly (other leading firms include Adidas, Puma, Fila, New Balance) -Strong brand identity and product differentiation -Intensity of Rivalry is moderate

Porter’s Five Forces ModelHigh Moderate Low

Bargaining Power of Suppliers

Bargaining Power of Buyers

Threat of Substitutes

Threat of New Entry

Intensity of Rivalry Between Firms

Segmentation , Targeting and Brand Positioning

Segmentation , Targeting and Brand Positioning

Segmentation , Targeting and Brand Positioning

• Sense of belonging to the Indian and global Sporting,

Fitness and Youth legacy• Confluence the Passion of Sports and subtle Fashion … A genre of “ Sports Fashion”

4Ps – Price , Place , Product, Promotion

Category Cluster Price Range( in INR )

Mode Price Range

( in INR )

Sports Shoes (Multi

category Retailers)

Bata / Liberty / Action /

Lotte

800 - 1600 1000-1200

Sports Shoes( In House

Labels)

Vishal Megamart / Shopper’s Stop /Big Bazaar

700 – 1400 800-1000

Sports Shoes ( Sportswear

Brands)

Reebok /Adidas /Puma

1200 – 2800 1800 -2200

Sports Shoes ( Sportswear

Brands)

Reebok /Adidas /Puma

1200 – 2800 1800 -2200

4Ps – Price , Place , Product, Promotion

4Ps – Price , Place , Product, Promotion

Location Median Property Value (in INR/sq feet)

Chandigarh 6500

Ludhiana 1600

Surat 2000

Lucknow 2250

Mumbai-Marine Drive-Opera House-Malabar Hill

20,00026,00038,000

Delhi- Pitampura-Ashok Vihar

-Rohini

10,00011,00012,800

4Ps – Price , Place , Product, Promotion

4Ps – Price , Place , Product, Promotion

4Ps – Price , Place , Product, Promotion

1) EVENTS

Year 2008

• Mumbai Marathon – 30,000 runners• Bangalore Marathon - 25,000 runners• Delhi Marathon - 30,000 runners

Upcoming Events

• Mumbai, Delhi and other City and Cross-Country Marathons•Commonwealth Games

•Asian Table Tennis Championship (New Delhi)

•Formula One race 2009•World Badminton Championship 2009

4Ps – Price , Place , Product, Promotion

2) Gaming

4Ps – Price , Place , Product, Promotion

Catch them young

4Ps – Price , Place , Product, Promotion

• Social marketing is cheaper, spreads faster and connects better

• Workout advice, online communities and local sports competitions

• Internationalization of Advertising Strategy, use of Local Brand Ambassadors

• Increase Nike.com/India hits

33 %

4Ps – Price , Place , Product, Promotion