Nike is Nike, Inc., is an American sportswear brand.
Definition of name: the Greek goddess of victory
Headquartered in Beaverton, Oregon
Founded on January 25, 1964
CEO: Bill Bowerman and Phil
Knight
Originally known as Blue Ribbon Sports
“Just Do It” and Swoosh logo
report
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The yearly revenue for NIKE in2022 was $46.71B, an increase of 4.88 percent from 2021.
NIKE's 2021 yearly sales of $44.538 billion was a 19.08 percent rise over 2020.
In comparison to 2019, NIKE's yearly sales in 2020 was $37.403B, a 4.38 percent decrease.
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From 2011 to 2025, the time line displays Nike's projected global market share for athletic footwear.
Nike is determined to maintain its 27.4% global market share in athletics and sports-inspired footwear between 2011 and 2025.
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NIKE's 2022 gross profit was $21.479 billion, increasing 7.6% over 2021.
In comparison to 2020,NIKE's yearly gross profit in 2021 increased by 22.91% to $19.962B.
2020 saw a 7.06% drop in NIKE's annual gross profit to $16.241 billion from 2019.
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Customized selection of products and services. Providing high-quality and innovative products for customers. Providing customers with the best service for those who enjoys collecting sneakers. Promoting with new movement and campaigns with strong messages. Nike's limited-edition sneakers are selling at great prices on the resell market with many forms of platforms.
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Soft Metrics
Developing the sport of the future through innovation. Nike has an ambitious goal of revolutionizing sports as we know them thanks to their technology. Nike's technology is outstanding that the operation is redirecting to the goal of sustainable development in a bigger sense rather than making a difference in games or competitions.
Hard Metrics
An empowered, inclusive, and diverse team. Due to their focus on the global market, multinational businesses constantly value diversity because each country has different culture, community, and customs. Protecting the future of sports through sustainable business innovation. Promoting environmental protection and sustainable development on the website to inform the audiences.
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Existing Customers
Both men and women, ages of 15-40. Athletes who plays sports professionally. Athletic people who enjoys to workout. Nike divides the market into three classes: lower, upper middle, and upper class. Consumers with high income are eligible to purchase limited-edition items.
The majority of Nike's customer base are made by Asians, Hispanics, and African Americans. According to market research, approximately 13% of Nike customers identified as Americans, 18% percent as Black, 16% Hispanics, and 3% as Asians of the country's total population of 55 million people.
Potential Customers
An individual who likes to wear casual styles of clothes. Sensitive people who are looking for comfortable and practical apparels. People who are active and energetic to perform. Workers whose position requires a lot of movement throughout the day.
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Form 10-K- s1.q4cdn.Com. https://s1.q4cdn.com/806093406/files/doc_downloads/2022/399556(1)_27_Nike- Inc._NPS_Combo_Form-10-K_WR.pdf.
“Global Marketing Strategy of Nike [1971-2020] Success Story.” Outstanding Traffic, 31 Aug. 2020, https://outstandingtraffic.com/the-marketing-strategy-of-nike/.
Katarzyna, et al. “How Effective Is Nike's Social Media Strategy?: Brand24.” Brand24 Blog, 29 July 2022, https://brand24.com/blog/nike-social-media-strategy/.
Panagiotopoulous, Vasiliki. Segmentation, Targeting and Positioning Strategy of Nike & Buying...https://www.researchgate.net/publication/338370597_SEGMENTATION_TARGETING_AND_POSITIONING_STRATEGY_OF_NIKE_BUYING_DECISION_ANALYSIS.
Ore, BEAVERTON. “Nike, Inc.. Reports Fiscal 2022 Fourth Quarter and Full Year Results.” NIKE, Inc. - Investor Relations - NIKE, Inc. Reports Fiscal 2022
Fourth Quarter and Full Year Results, https://investors.nike.com/investors/news-events-and-reports/investor-news/investor-newsdetails/2022/NIKE- Inc.-Reports-Fiscal-2022-Fourth-Quarter-and-Full-Year-Results/default.aspx.
“Forecasting Nike’s Sales Using Facebook Data - Inet Oxford.” Forecasting Nike’s Sales Using Facebook Data, https://www.inet.ox.ac.uk/files/Nike- Socialdata-main.pdf.
“NYSE: Nkenike Inc Statistics & Facts.” WallStreetZen, 30 July 2022, https://www.wallstreetzen.com/stocks/us/nyse/nke/statistics.
“Table of Contents.” ANNUAL REPORT PURSUANT TO SECTION 13 OR15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FORTHE FISCAL YEARENDED MAY 31, 2020, https://s1.q4cdn.com/806093406/files/doc_financials/2020/ar/NKE-FY20-10K.pdf.
Tighe, D. “Topic: Nike.” Statista, https://www.statista.com/topics/1243/nike/#topicHeader wrapper.Form 10-K- s1.q4cdn.Com. https://s1.q4cdn.com/806093406/files/doc_downloads/2022/399556(1)_27_Nike- Inc._NPS_Combo_Form-10-K_WR.pdf.
“Global Marketing Strategy of Nike [1971-2020] Success Story.” Outstanding Traffic, 31 Aug. 2020, https://outstandingtraffic.com/the-marketing-strategy-of-nike/.
Katarzyna, et al. “How Effective Is Nike's Social Media Strategy?: Brand24.” Brand24 Blog, 29 July 2022, https://brand24.com/blog/nike-social-media-strategy/.
Panagiotopoulous, Vasiliki. Segmentation, Targeting and Positioning Strategy of Nike & Buying...https://www.researchgate.net/publication/338370597_SEGMENTATION_TARGETING_AND_POSITIONING_STRATEGY_OF_NIKE_BUYING_DECISION_ANALYSIS.
Ore, BEAVERTON. “Nike, Inc.. Reports Fiscal 2022 Fourth Quarter and Full Year Results.” NIKE, Inc. - Investor Relations - NIKE, Inc. Reports Fiscal 2022
Fourth Quarter and Full Year Results, https://investors.nike.com/investors/news-events-and-reports/investor-news/investor-newsdetails/2022/NIKE- Inc.-Reports-Fiscal-2022-Fourth-Quarter-and-Full-Year-Results/default.aspx.
“Forecasting Nike’s Sales Using Facebook Data - Inet Oxford.” Forecasting Nike’s Sales Using Facebook Data, https://www.inet.ox.ac.uk/files/Nike- Socialdata-main.pdf.
“NYSE: Nkenike Inc Statistics & Facts.” WallStreetZen, 30 July 2022, https://www.wallstreetzen.com/stocks/us/nyse/nke/statistics.
“Table of Contents.” ANNUAL REPORT PURSUANT TO SECTION 13 OR15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FORTHE FISCAL YEARENDED MAY 31, 2020, https://s1.q4cdn.com/806093406/files/doc_financials/2020/ar/NKE-FY20-10K.pdf.
Tighe, D. “Topic: Nike.” Statista, https://www.statista.com/topics/1243/nike/#topicHeader wrapper.
Target Market
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Athletes themselves, achievers, winners, determinant, and sports oriented.
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NIKE is targeting towards men, women, and kids, ages between 11- 45 years old, who are sports enthusiasts and high-income groups.
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The target customers are individuals who have an active lifestyle, adventurous personality, passion for sports activities, and interest in fitness and exercise to build connection with athletes.
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Strong sports community build loyal customers that they purchase frequently.
Media selection
It is essential to adapt to a rapidly changing media and digital environment in order to manage, build, and expand brand image. Nike depends on social media and online advertising campaigns to promote its products and services and provide customers with digital experiences. Instagram, Youtube, Twitter are my media selection for NIKE among the various social media networks.
Instagram is a great platform to have collaboration with popular athletes, influencers, public figures, coaches, teams, colleges, and sports leagues that support the brand and actively participate in sponsored athletic events and campaigns. It allows the users to increase engagement and community by utilizing the features of direct messaging, commenting, and sharing and invest on digital advertising to expand their reach and build brand loyalty.
YOutube
Youtube is the best platform for display advertisements to inform NIKE’s integrity, mission, culture, and values. It allows to promote Nike products through a diverse variety of advertising and promotional approaches and provide attractive digital experiences to the public to improve online sales and expand digital commerce globally.
The ideal platform for engaging with customers and enhancing their buying experience is Twitter by creating digital commerce networks that are appealing, efficient, trustworthy, safe, and user-friendly. It is important to anticipate the changing expectations of online shoppers by collecting feedback. It allows to expand and update digital platforms in an efficient approach to meet growing consumer demand for products and digital experiences.
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Nike should focus on direct sales to consumers through its retail website, and mobile application. There are many apps from stores, including Run Club, Training Club, and Nike retail app. Nike uses it to Nike, provide its most passionate customers access to exclusive products.
By investing in technology and data analytics to become more personalized in its interaction with members and communities across its online business, the company will develop strong relationships with its consumers.
One of the most successful strategies in marketing in the social media era is relying on actual people and being credible. As a result of the community's emphasis on interaction, it will attract casual shoppers.
Nike will be able to target other communities more effectively with its promotional efforts if it uses fewer models and loyal consumers who have signed up for NikePlus membership program.
SNKR Stories, one of the most popular new features in SNKRS, imitates the slideshow format of Instagram's Stories feature. This innovation go beyond simple advertising and collect data for statistics. It can examine which pictures users spend the most time looking at, what shoes or clothing they focus on, and what they skip over.
Nike can target specific customers by providing them with products that they are more likely to demand and to purchase. Additionally, the data could be placed to use in the creation of new products.
The growth of e-commerce and transformations in brand's roles offer chances to increase Nike's important digital sales.
programatic buying practicE
The Nike core commerce app, the SNKRS app for sneaker collectors, and the Nike Training Club app for exercise regiment management are all Nike-owned mobile businesses. There has been a continuous trend toward online shopping among consumers, and they have helped digital sales expand in recent quarters. As the year progresses, Nike also intends to expand its ongoing experiments with data- driven personalization features on the Nike app.
SNkRS
A platform that provides ultimate sources for sneakers.
SNKRS App gives users intimate access to all that Nike has to offer, including the most recent debuts, trendiest events, and exclusive releases.
Enables to promote the upcoming drops and reminder customers to stay updated by setting notification.
Discover the stories behind your favorite pairs, the hidden exploits of famous athletes, and the exclusive fashion tips of the SNKRS community.
Allows customers to reserve their pairs in SNRKS and pick them up at the nearest retailer stores for seamless release launch day experience.
DSPS
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Nike proposed desktop-exclusive videos of different Nike athletes using the company's products in action for banner ad campaigns.
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Artificial intelligence (AI) was used by Nike in this advertising campaign. The company collaborated with the artificial intelligence platform Snaps and social media giant Facebook to develop a bot that provides access to the Air Jordan blog
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For the Nike Sportswear Collection, Yahoo was recruited by Nike to promote the release of the Nike 8 Mobizine. Banners on the Yahoo Mobile homepage received a 5.09 %click-through rate on the first day of the campaign, resulting in 22,000 clicks to Nike Mobizine during the two-week campaign.
DMPS
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Allowing partners to correlate their producing data in real-time in all sources and platforms to inform and transform operations.
Work cross-functionally to determine the greatest cost- saving opportunities, analyze issues' causes, install new products or processes in place to address them.
Lead and drive data process improvement efforts using Lean/Six Sigma techniques, both directly and by mentoring others.
The customizations to the data supply chain and customer base maximize revenue, profits and organizational effectiveness.
The goal of the scorecards and metrics packages is to enable real-time trend and operational performance tracking.
DTCS
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Nike is developing 200 retail stores that will follow the Nike Live model and experiment with digitalized retail concepts such Nike Live and House of Innovation.
Nike' s goal is to have 50% of its business be conducted online through digital channels and retail partners.
By the end of fiscal 2021, Nike' s direct digital channels are estimated to account for 21.5% of all sales, up from 15.5% in the previous fiscal year: $9 billion.
In fiscal year 2020, the SNKRS app earned $1 billion in revenue and accounted for 18% of all Nike' s online sales.
current status
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The success can be credited to the Nike Replay, which has outperformed advertising in real time and caught the action and passion. World Cup fans were able to interact with events by creating their own replays and sharing them on social media.
The focus of modern media agencies is also primarily tech oriented. Because of the availability of real - time purchase, Nike was able to build a great experience on mobile media, which resulted in 2 million user engagements.
PMG is the operator of the Alli marketing platform, which provides a variety of benefits: automated media management, creative insights guided by artificial intelligence, and more.
There are 500,000 rematches of Nike athletes, and 2.2 million commitments with experience have been made across 15 nations.
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NIKE uses the software utilizes customer-provided, first-party data to learn what makes them satisfied and what will keep them coming back. Nike utilize this information to target their customers with promotions, discounts, and rewards. Based on their score, customers are given special deals.
The company has implemented the algorithm in conjunction with their SNKRS app in order to provide priority access to their most loyal customers for limited-edition sneakers on product affinity.
The software creates a loyalty score by taking into account user activity across numerous channels such as live broadcasts and social media post engagements.
Nike is able to increase digital revenues and enhance the customer experience with the assistance of first-party data by sending personalized email and text message communications based on their browsing habits.
For example, when a customer abandons a cart or an item that they previously viewed becomes available again, Nike will send a notification via email or text message to remind them.
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NIKE’s geographic segment is focused on one industry, the operation for design, development, marketing for NIKE and Jordan brands.
The segments include: North America; Europe, Middle East & Africa (EMEA); Greater China; and Asia Pacific & Latin America (APLA).
In the United States, thousands of retail accounts offer NIKE, Jordan, and Converse products.
Each geographic operating segment is accounted for managing sales through NIKE direct business.
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Regional internal divisions serve as the foundation for Nike operations. "NIKE Direct" operations- selling the products directly to consumers. The geographic area primarily focuses on one industry and market segment, such as design, development, marketing, athletic footwear, apparel, and equipment.
The interests for sports and fitness are influenced by strong sales. Adopting customer preferences and trends. Updating the current product lineup to create new products, styles, and segments. Nike manages seven distribution operations in the US, four of which are located on Memphis, Tennessee, Indianapolis, Indiana, Dayton, Tennessee, and Converse in Ontario, California.
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Brand sales in the United States raised about 39% of total revenues for the fiscal year 2020, following earnings of 41% and 42% in 2018-2019. NIKE Brand, Jordan Brand, and Converse products are available in the United States, including shoe stores, sporting goods retailers, sports specialty shops, department stores, and others.
To promote such sales, the company work with NIKE sales offices in the US. The three largest customers accounted for about 24% of sales in the United States in fiscal 2020. Direct-to-consumer businesses run by Nike and Converse provide a variety of products and services to customers via a wide variety of digital media channels. The total number of 338 retail stores in the United States.
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In fiscal 2020-year, Converse and Nike brand sales outside of the United States accounted for nearly 61% of total revenue, in which is an increase from 59.9% and 58.8% in 2018-2019.
Nike Direct operations and a global network of unfranchised distributors, licensees, and sales associates sell the products to retail accounts internationally. Operates the total number of 758 non-U.S. retail stores. With the digital commerce platforms in more than 45 countries. Non-US customers accounted for over 15% of Nike's total sales outside of the United States in fiscal 2020.
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There are moderate changes in sales volume yearly. Revenues for the first and fourth fiscal quarters were marginally higher than for other the second and third quarters. The shift patterns are depending on seasonal or geographic demand for specific items in shoes, clothing, and accessories due to the fact that changes in our daily life can have a significant impact on our wants and needs.
The timing of key events on the sporting major tournaments that take place, such as the NBA Finals, the Olympics, and the World Cup can vary the results significantly from year to year. This seasonality can have a significant impact on the company because of the factors of changes in economic conditions, customer preferences, environment, pandemic, social or political conflict, accessibility of trade or transportation, and fluctuations in currency exchange rate.