Kadee Anja Quincey Corey Kathleen
Mar 27, 2016
Kadee Anja Quincey
Corey Kathleen
Nike’s Reputation
• Consumer Loyalty
• Innovation
• Cutting Edge Research and Development
• The Incorporation of Technology
History
• First incarnation began in 1964 under the name “Blue Ribbon Sports”
History
• Originally, Nike focused solely on athletic shoes
• They have since expanded to include apparel, sports equipment, and other accessories in 170 countries around the world.
• Subsidiaries include Umbro, Cole Haan, Hurley International, and Converse.
Our Research Objectives
• Demographics indicate the majority of Nike’s customers are young professionals.
• Given that data, we want to determine if it would be profitable for Nike to introduce a Business Casual Men’s Shoe into their product line.
Sales by Key Distribution
Sales Volumes for Key Items
Market Share / Market Rank • Nike has over 30% of the athletic footwear
makers market worldwide
0%
5%
10%
15%
20%
25%
30%
35%
Nike Addidas Puma New Balance Reebock Asics Skechers Converse K-Swiss Other
Running Shoe Market - 2008
0%
10%
20%
30%
40%
50%
60%
70%
Nike Asics New Balance Other
Athletic Shoe Brands Bought in Past 12 Months : Fall 2010-2011
Brand Sales past 12 months % of Total Industry
Nike $44,505,000 19.3%
New Balance $26,304,000 11.4%
Adidas $16,802,000 7.3%
Sketchers $12,977,000 5.6%
Puma $5,402,000 2.3%
Other $124,426,000 54.1%
Total Industry $230,416,000 100%
Current Brand Marketing
• Switched from print and television -> online
• Social Media
• Nike +, Nike Fuel Band
• Online communities
• “We want to inspire consumers to seek out our content” – Simon Pestridge, UK marking chief
Current Brand Advertising
• 2000- advertising was split from one sole agency to multiple
• Specialize in new technology
• Increase their social and digital media efforts
• Past 3 years, 40% spending decrease on television advertising
• 2010- Nike spent $800 million on “nontraditional” advertising
Current Advertising Strategy
• May 23, 2010: Nike launched a commercial shot by Oscar-nominated director and aired via
• Nike Football’s Facebook Page
• Reaching 8 million viewers a week
• Viral-video record
• Features soccer players sponsored by Nike
Why Nike Football Video?
“less about hero worship and more about consumer-driven conversation” -Former Nike Executive
Target Audience
Demographics % of
100
Men 52
Race: White 68.7
Graduated college 29.9
No college 38.7
Age 25-34 (non-gender specific) 25.2
Age 35-44 (non-gender specific) 22.4
Occupation: Professional and related 16.5
Occupation: Sales & Office 17.3
House Hold Income $75,000-$149,999 9.9
House Hold Income $30,000-$39,999 8.9
Census region: South 36.6
Now married 50.7
Have children 12-17 years old 26.5
Have children <6 years old 24.7
Home owners 64.7
Value of home $200,000-$499,999 25.9
Psychographic Information
• Nike consumer:
– Heath conscious
– Fitness driven
– Concerned with wellbeing
– Improve physical condition
– Active in online communities, fitness forums
– Goal driven
– Overcomes challenges
CATEGORY/COMPETITION
Five Year Growth History
• Nike’s sales have increased.
Growth Continued
• Current Stock is : $96.52 USD and is down -.2 %
Category Life Cycle Stage
• Nike is in the growth stage.
Information on Key Competitors Nike is number one in the market when looking at revenue compared to competitors.
Annual Sales Volume
• Nike’s Annual Sales total is $24,128 million dollars.
Market Share/Market Rank 5 Year; Nike
Earnings from 1990-2012
Current Brand Positioning
• Nike associates with high level athletes. • Nike is number one in performance. • number one in its industry of fine sporting
equipment. • Nike overtakes some of the other major brands
such as Reebok, Adidas, UnderArmor and Puma. • Nike has 346 retail outlets across the US. • Also, the company operates 106 Cole Haan
stores, 51 Converse factory stores, and 18 Hurley stores in the US.
Why? Business Casual Shoe
• Reasons for market research (product or service)
Focus Group Results • Opinions Nike brand; value, durability, brand hype, athletic
and pricey.
• Nike being high performance which equals a better experience, quality clothes and it is the top of the line sports apparel.
• Traditional style shoe and colors (black, brown and tan).
• Price not exceeding $130 for a pair.
• Buying Nike products at; outlet stores, Macy’s, DSW and Sports Authority.
• Monday through Friday, semi-casual.
• No Nike swoosh logo visible.
Shoe-1 • Shoe #1: After the initial negative response
participants explained they
– Loved the shoe style just not the color.
– They liked the clean look of slip on.
Shoe-2 • Shoe #2: Positive. They liked leather/style.
–Clean cut and sophisticated.
– This group believed an entry level professional would wear these shoes.
Shoe-3 • Shoe #3: Older age group.
–Boring, conservative,
–Plain but they did like the color.
–Didn’t stand out.
Type of Research, Why?
• Self-administered survey
• 16 questions
• Females were filtered out
• Most efficient: time and money
• Disadvantage: lack of probing, participant cannot ask surveyor question
Research Objectives: TOPICS
• 1. Measure the percent of males ages 18-30 would purchase a business casual shoe from Nike.
• 2. Measure the percent of males ages 18-30 who needs a business casual shoe.
• 3. Measure the preference of materials that customers like to see in a business casual shoe.
Research Objective Cont.
• 4. Determine the age bracket of males who are more likely to purchase a Nike business casual shoe.
• 5. Measure the age bracket who is more willing to purchase a Nike business casual shoe between the price ranges of $75-125
• 6. Measure the age bracket that is more willing to purchase a Nike Business casual shoe between the price ranges of $125-200?
Research Objective Cont.
• 7. Measure the age bracket who is more willing to purchase a Nike Business causal shoe between the price ranges of $200-275?
• 8. Measure the percent of males who currently purchase a business casual shoe that prefer a rounded or square silhouette/details?
• 9. Measure the percent of current Nike customers between the ages of 18-30 who purchase Nike products for the style rather than the comfort.
• 10. Measure the percent of males who purchase a Nike business casual shoe that would prefer the swoosh logo visible when worn.
Data Collection and Why?
• Surveymonkey.com
• Mass and individual messages containing survey link
• Facebook, emails, twitter
• Awareness email to urge participation
• Self-administered
Sampling Plan and Why?
• Non-probability sampling
• Convenient sampling
• Judgment based, gender (males only)
• 1430 N. Dearborn Ave. building lobby
Final Sample
Interesting Characteristics • Out of the total 66 responses, 47 male participants currently
own business shoes.
Interesting Characteristics Continued
Interesting Characteristics Continued
Interesting Characteristics Continued
Interesting Characteristics Continued
Interesting Characteristics Continued
• More than half our participants purchased their last business casual shoe less than a year ago.
• If Nike release a business casual shoe 3/4th of participants would expect to pay anywhere from $75-$124 dollars.
SUMMARY OF RESEARCH FINDINGS
Research Objectives Findings
Research Objective Findings
How often do you wear your business casual shoe?
Research Objectives Findings The most important trait in a business shoe
Research Objectives Findings
Research Objectives Findings
Research Objectives Findings
Survey Error
• Random sampling error
• Non-response error
• Administrative error
• Sponsorship bias
• Interviewer bias
• Prestige bias
• Threat bias
Survey: Recommendations
• Increase participation to meet or exceed quota
• Incentive for completed surveys
• Different locations for better representative sample
Nike: Recommendations
• Expand product line adding a business casual shoe
• Males ages 17-24 willing to pay $75-$124
• Comfortable, leather, rounded toe box shoe
• Nike Swoosh not visible
• Online promotion