Consumer Behavior of Nike Final

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Nike Consumer Behavior Submitted to: Prof. Meeta Vora

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Presented By: Shaishav Dabhi Ashok Chauhan Arjun Toliya

Content 1.

A brief history of Nike

2.

Segmentation, Positioning and Targeting of Nike

3.

Nike’s Research Program

4.

Corporate Social Responsibility

5.

The Marketing Mix of Nike

6.

Nike SWOT Analysis

7.

Brand : Nike

8.

Product Mix

9.

Culture in Organization “Nike”

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A Brief History of Nike The Nike athletic machine began as a small distributing outfit located in the trunk of Phil Knight's car. From these rather inauspicious beginnings, Knight's brainchild grew to become the shoe and athletic company that would come to define many aspects of popular culture and myriad varieties of 'cool.' Nike emanated from two sources: Bill Bowerman's quest for lighter, more durable racing shoes for his Oregon runners, and Knight's search for a way to make a living without having to give up his love of athletics. Bowerman coached track at the University of Oregon where Phil Knight ran in 1959. Bowerman's desire for better quality running shoes clearly influenced Knight in his search for a marketing strategy. Between them, the seed of the most influential sporting company grew. The story goes like this: while getting his MBA at Stanford in the early '60s, Knight took a class with Frank Shallenberger. The semester-long project was to devise a small business, including a marketing plan. Synthesizing Bowerman's attention to quality

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running shoes and the burgeoning opinion that high-quality/low cost products could be produced in Japan and shipped to the U.S. for distribution, Knight found his market niche. Shallenberger thought the idea interesting, but certainly no business jackpot. Nothing more became of Knight's project. Cut to 1963. Phil Knight traveled to Japan on a world-tour, filled with the wanderlust of young men seeking a way to delay the inevitable call of professional life. Seemingly on a whim, Knight scheduled an interview with a Japanese running shoe manufacturer, Tiger--a subsidiary of the Onitsuka Company. Presenting himself as the representative of an American distributor interested in selling Tiger shoes to American runners, Knight told the businessmen of his interest in their product. Blue Ribbon Sports--the name Knight thought of moments after being asked who he represented--was born. The Tiger executives liked what they heard and Knight placed his first order for Tigers soon thereafter. By 1964, Knight had sold $8,000 worth of Tigers and placed an order for more. Coach Bowerman and Knight worked together, but ended up hiring a full-time salesman, Jeff Johnson. After cresting $1 million in sales and riding the wave of the success, Knight et. al. devised the Nike name and trademark Swoosh in 1971. By the late '70s, Blue Ribbon Sports officially became Nike and went from $10 million to $270 million in sales. Katz (1994) describes the success via Nike's placement within the matrix of the fitness revolution: 'the idea of exercise and game-playing ceased to be something the average American did for fun,' instead Americans turned to working out as a cultural signifier of status. Clearly, the circumstances surrounding the shift are not this simple; it is one of the aims of this project to discover other generators of popular attention to health. If Nike didn't start the fitness revolution, Knight says, "We were at least right there. And we sure rode it for one hell of a ride" (Katz, 66). The 80s and 90s would yield greater and greater profits as Nike began to assume the appearance of athletic juggernaut, rather than the underdog of old. "Advertising Age" named Nike

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the 1996 Marketer of the Year, citing the "ubiquitous swoosh...was more recognized and coveted by consumers than any other sports brand--arguably any brand" (Jensen, 12/96). That same year Nike's revenues were a staggering $6.74 billion. Expecting $8 billion sales in fiscal 1997, Nike has targeted $12 billion in sales by the year 2000. Few can question Nike's financial hegemony. But nearly $7 billion in revenues clearly begs the question, what sells these shoes? It is my assertion that Nike's power to sell comes from deep-rooted yearnings for cultural inclusiveness and individual athletic accomplishment. These seemingly paradoxical desires collide in consumer’s hearts and minds and produce the unyielding zeal for Nike shoes and apparel. Unfortunate effects of this zeal can be found in the rash of Nike apparel killings in 1991 and the profusion of Nike collectors and WebPages designed around the company's products. Nike appeals to these disparate elements of Americans' personalities through an advertising philosophy that is, at once, simple and sublime. In addition, Nike's practice of toplevel athletes promoting their products appeals to countless ages and creeds as a way to identify with and emulate their athletic heroes. These forces work powerfully upon the individual consumer, but one should not lose sight of the cultural context in which the individual moves.

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Segmentation, Targeting and Positioning of Nike Nike has been in the market for a long period now. Thus it has already soughted out the STP analysis that it would use to promote and sell its products.

Market Segments: The market segments that Nike can mainly differentiate are high, medium and low end customers with varying income levels. Thus, Nike needs to segment on various fronts such as economic, demographic, geographical differentiations.

Economic segmentation: High, medium and low income levels that can be clubbed with there lifestyles of high, medium and low end customers.

Demographic segmentation: The company can segment the market into age, gender and class segments.

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Geographical segmentation: The company can segment the market into segments of north, west, east and south. Target Market: The company needs to target the market as per the brand image and equity in different markets. Thus, the company has targeted the market of high-end, high income level between the age of 1655 with a pan India location. Thus the market segment it is targeting is quite essential to differentiate itself from its competitors i.e. Reebok, Puma, Fila and local brands like Bata.

Positioning: The brand Nike has positioned itself in the minds of the consumer as a high-end product which is quite costly but gives the value for money with its service, quality and designs. All this analysis provides Nike with the customer satisfaction and thus loyalty that it needs to achieve high volumes and profitability.

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Nike’s Research Program Nike has been in the Research & Development in the market for quite a long time. The research that it has been carrying out relates to the earlier STP analysis which allows Nike to create a market for its products. Also Nike has a history of constantly innovating new products and attain the first-in-the-market advantage and charge a premium price. Nike spends a lot out of its revenue into R & D of new products and designs to constantly stay ahead of the competition. Nike conducts both qualitative and quantitative research for gathering vital information for its products and new launches. The qualitative research refers to the consumer purchasing behavior like why, how, what do they decide on the basis of Nike’s image as well as products. The quantitative research deals with what are the results of the company i.e. revenue against cost and other financial analysis. Nike indulges into research analysis of consumer markets as well as competitor’s analysis and thus understanding the consumer behavior and their buying pattern. Nike does extensive research in the attitudes and tastes and preferences and their changing pattern by having questionnaires filled up by its customers online as well as personally. It also indulges into personal interviews with its valued-customers to make some necessary changes that they might require. This is how the company came to be recognized as a high valued by its customers and thus attain maximum loyalty. Also the company

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came up with the idea of customization of their products online through this type of research itself which has yielded high results. Nike products undergo a rigorous testing process that covers a huge variety of testing surfaces (regular basketball hardwood, soccer turf, a running track, and endless outdoor testing on various terrain), and takes into account four major factors, geography, gender, age, and skill level as well as profession. All of this combined with the results of about a dozen other tests are use to develop new, user-friendly products like the Nike Shox, Nike Air, and other Nike basketball and running shoes. This is mainly because Nike needs to constantly be aware of the changes in the consumer buying behavior which can only be done through various researches. Nike also utilizes information from various other research analysts like http://www.sneakerhead.com/nikeresearch.html.

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Corporate Social Responsibility undertaken by Nike Nike has been in the market for over 5 decades now and has understood the importance of maintaining the environment through corporate social responsibility. The firm has been in news for last decade for its innovativeness to develop such facilities that are waste free and use renewable sources of energy. A statement by Sarah Savern, director of corporate responsibility horizons, Nike Inc. states “We have a target to be climate neutral in Nike owned facilities and business travel by 2011.By 2015, we aim to be climate neutral in all Nike Inc. facilities. A 17% reduction in footwear waste by 2011. A 30% reduction in packaging and point-of-purchase waste.” As per the current CEO Mark Parker, “We see corporate responsibility as a catalyst for growth and innovation.” Also, “We are challenging our assumptions, evolving our perspective and building a new approach.”

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The Marketing Mix Adopted By Nike Nike has been developing its marketing mix consisting of the four P’s i.e. product, price, place and promotion. Thus Nike has soughted out the mix that will best help it achieve its goals of maximum profitability. Product: Nike takes into consideration various aspects of its products as it is in a product or consumer market. Thus it needs to have extensive range of products to withstand its competition. Nike provides features, designs, various brands, packaging along with some extra features like warranties and after sales service. This all aspects can be included in the product analysis. Nike has various products as well as brands that cater to different market segments which varies according to requirement of particular segments as well as individuals. Also they offer customized designs of their products wherein customer designs their product as per their requirements. Eg: Nike provides customization of their shoe range on their site Nike.com. Nike also offers a one year warranty for their products. Also they provide an option for replacement in all their products if any defects or problems occur after purchase which is a part of after sales service. Nike has been designing world class shoes for over 5 decades. Yet it has a tendency of changing the designs and patterns after a particular period or quantity. It also has a range of classic Nike shoes which are available all the time.

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Nike also provides packaging with collaboration with other brands. Eg. Selling i-pods with their jogging shoes range.

Price: Nike has a high-end consumer market with high disposable income asking for better service and satisfaction as there target market. Thus their pricing strategy is to provide value at high cost with maximum profitability. Thus they have high margins but this can be justifiable due to its advertising and research costs. Nike also provides with discounts during various festive seasons on its products like Diwali in India. This is also a part of its pricing decisions. Place: Nike is a multi-national organization. Thus it needs to develop a wide range of distribution channel which can support its retail business. Thus Nike has some of the following distribution outlets: Retail: Nike sells through its retail stores, brand outlets, exclusive showrooms as well as hyper markets in metropolitan areas. Online shopping: Nike also provides with online shopping facility for its various products and services. Distributors: Nike has a wide coverage of its distributors across the globe to support its retail outlets. Factory outlets: Nike also sells its merchandise through factory outlets that sell some of its products at a discounted rate.

Promotion:

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Nike is extensively involved in Promotion and advertising. Nike uses advertising, sales promotion, advertisement campaigns, public relations and publicity and sales offers to build awareness and brand image and loyalty. Nike endorses various celebrities such as athletes, football players, cricketers, tennis etc. Eg. Roger Federer, Tiger Woods, Ronaldinho, Ronaldo. Nike also endorses various teams as well as clubs such as Barcelona Football Club. It places its products in various movies and shows using product placement. Nike also sponsors various events such as tour de France, FIFA World Cup, Delhi Marathon and various others. Nike promotes its products also utilizing other products brand equity such as promoting its range of shoes alongwith I-pod. The “Just-do-it” campaign of Nike has been since nearly 3 decades and has got them worldwide fame. Nike also advertises by using various celebs in their advertisements to increase brand loyalty while utilizing the brand image of such celebs. Nike has also gone to the extent of sponsoring a stadium called “the Alliance Arena”, which is by far the biggest football ground in the whole world. Thus Nike can be viewed as an organization that utilizes advertisements extensively for promotions which can be viewed from its advertisement budget of approximately US $ 150 million.

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Nike SWOT Analysis STRENGTHS:

Contracts with Universities: Nike has contracts with universities nationwide to supply apparel for athletes. These university sponsorships are beneficial to Nike because they give the company the right to sell merchandise with these schools’ logos, tap into the market of collegiate sports apparel, and form relationships with young consumers.

Analyst Confidence in Stock: According to press releases issued by Bloomberg, analysts from Bank of America, CSFB, and Wells Fargo recently called Nike a “buy.” After a lackluster financial year, this news could potentially affect stock price in a positive way.

Michael Jordan Returns to Basketball: Nike received press coverage throughout Jordan’s decision-making process and continues to make press regarding the impact of Jordan’s return. Nike was able to capitalize on this strength by debuting a new shoe – the Air Jordan XVI – and by making new commercials with Jordan that will hit the airwaves soon. Michael Jordan is perhaps the most recognized athlete in the world and markets Air Jordan apparel for Nike.

Corporate Responsibility Report: According to the Nike Web site, in October Nike released its first Corporate Responsibility Report. The document states that Nike’s focus points, in terms of

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corporate responsibility, are the environment and labor. Since these are two areas that cause protests against Nike, it is important for Nike to label them as areas to focus on and for Nike to give the public this information.

Strict Environmental Standards: According to Bloomberg, Nike has accepted strict environmental standards to comply with by 2005. These standards were part of the Kyoto treaty that President Bush refused to sign and are supposed to help in the fight against global warming. Nike has made other efforts to be energy efficient; its office in the Netherlands is the most energy efficient office in that country by 35%. Nike also uses organically grown cotton, promotes the Eco-class program with Delta Airlines, and founded N.E.A.T. in 1993 to, as the Nike Web site maintains, “Reduce Nike’s impact on the planet.”

Reducing Operating Costs: In a report from Business Wire, Nike is taking advantage of the new cost-cutting methods of electricity management from Portland General Electric. This method allows Nike to continually get an update on its energy use and see if there are any problem areas. Nike is utilizing technological advance to streamline operations at its facilities, increasing productivity and cutting costs.

Philanthropy: Nike is committed to philanthropic endeavors such as “Reuse a Shoe,” “Project Dreams” and “Habitat for Humanity.” These efforts, along with other programs such as the “Shadow” program and the Bower man Foundation, show Nike’s commitment to the community. Nike employees also benefit from these philanthropic opportunities. Recently, Nike continued

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to give back to the community by giving $1 million to the World Trade Center Disaster.

The Nike “Swoosh”: One of the biggest strengths of Nike is its brand identification and corporate identity. The Swoosh resonates in the minds of consumers who recognize that logo as representing quality, first-rate athletic apparel. The Nike Swoosh is recognizable and identifies all Nike products and sponsored universities.

Nike Icons: Nike uses athletic icons and heroes to market its company goods. Examples of Nike icons are: Michael Jordan, Tiger Woods, Mia Hamm, Marion Jones, and Lance Armstrong. Not only do these athletes adorn print and television advertisements, but they also appear on the Nike Web site and are called “Our Heroes.” This is strength because consumers begin to identify the athlete with Nike. Nike’s popularity is connected to the popularity of these athletes.

Event Marketing: Nike successfully uses event marketing in the realm of fitness to bring more brand recognition to its name. These sponsorships ensure that consumers see the Nike Swoosh in places other than television advertisements, on products, and in stores. Nike sponsors fitness challenges at universities and also sponsors nationwide athletic tournaments, including some for charity.

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Niketown: Nike town stores, located in 15 major cities across the world, demonstrate that Nike has become a part of American and world culture. These famous stores represent the true strength of the Nike brand and the popularity of the athletes who advertise Nike apparel.

WEAKNESSES:

Labor Practices: Activist groups and student organizations have made Nike a symbol of labor exploitation. These groups blame Nike for poor conditions in its third world factories, under-paying workers, employing children, and ignoring the basic rights of its workers. Nike is often in conflict with labor unions; most recently, Nike bucked heads with a factory workers’ union in Mexico. Accordingly, the public associates Nike with sweatshop labor and accuses it of sidestepping human rights in order to secure the greatest profit.

Advertising: Nike spent over $1 billion on advertising, sports marketing, and promotional spending in 1999, and, although popular, some of its advertising strategies were considered controversial, according to an article titled “Channel Conflict.” Feminist groups accusing Nike of degrading women have attacked Nike commercials that stress winning above everything else and show women submissively. Although the majority of Nike’s commercials are cutting edge and creative, those very commercials can be weaknesses in Nike’s reputation.

Consumer Cost: Nike has been accused of outrageously marking-up prices on many of its products to cover the costs of

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advertising and sponsoring. The public feels that Nike overcharges its consumers and should lower prices. According to an article from the Graduate School of Business at Stanford University, a shoe whose net factory price is $24.71 is sold retail by Nike for $100.

Endorsements: The public questions the amount of money that Nike spends on sponsoring athletes. People do not agree with the multi-million dollar, multi-year contracts that Nike extends to athletes such as Tiger Woods, Ken Griffey Jr., and Michael Jordan and are disillusioned with Nike’s preoccupation with these athletes.

Global Community and Outsourcing: Nike’s efforts toward global expansion have become a weakness in its reputation. Nike has operated in the Asian region for 25 years and uses subcontractors throughout the globe to manufacture its products. Factories in China, Indonesia, Vietnam, Italy, the Philippines, Taiwan, and South Korea produce the majority of Nike goods. Nike has little control over its extended product line because it is such a large company with the majority of its operations overseas. Additionally, many people in the United States see Nike’s outsourcing as taking away jobs from Americans.

OPPORTUNITIES:

Wide Range of Products: Nike not only has the ability to succeed in the basketball shoe market, but in virtually every other

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athletic market from golf apparel to women’s workout gear. This diversity of products presents Nike with a great opportunity – to build up strength in all of its product lines and also to be flexible when the market shifts, making demand in some areas higher than others.

Winter Olympics: This year’s Winter Olympics, in Salt Lake City, Utah, will provide excellent opportunities for Nike to advertise. The Winter Olympics will also bring publicity if Nike-sponsored athletes are competing in events, displaying the Nike Swoosh all over the world. Nike has been a major contributor to many of the past Olympics as well. In Sydney, for instance, Nike designed over 2000 athletes’ uniforms in 25 Olympic sports.

Foreign Market: While Nike has become a major part of American culture, there is international strength in the Nike brand. According to one Nike press release, worldwide orders for Nike products are up 6%. This is an opportunity because it means Nike can expand globally and depend less on the American market for its successes or failures.

NIKEgoddess Opened in Newport Beach, California: This marks Nike’s expansion into the women’s apparel market. Because women wear athletic apparel for more than just working out, this is an opportunity for Nike to jump into the mainstream clothing market.

Hype of Advertising: Nike’s advertisements make waves. People enjoy them and wait for new ones. Nike’s newest advertising campaign is “Enjoy the Weather,” which features

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athletes conquering weather conditions to perform their sport. The hype of Nike advertising brings with it the opportunity to reach the public through the promotion of Nike’s newest advertising endeavor.

Expansion into Outdoors Clothing: The expansion into outdoor clothing is an opportunity for Nike because this will allow Nike to become more of a part of the apparel market. The fitness, innovation, and technology clothing line keeps in Nike’s tradition of providing superior products.

Web site: Nike’s massive Web site will prove to be an opportunity for Nike consumers to get up-to-date news coverage and to buy into the online purchasing market. It is one of the most comprehensive and interactive sites on the Internet. Nike should be able to capitalize on its Web site and emphasize those issues that Nike publics would not otherwise be exposed to by other media.

THREATS: Las Americas: Nike is funding part of the first-ever privately funded U.S.-Mexico port of entry into the United States. Nike’s involvement in this project could open them to public criticism

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concerning immigrant labor. Additionally, in the wake of the events of September 11, Americans are wearier of foreigners and more concerned with homeland security. The bridge might threaten Nike’s reputation.

University Campus Groups: Student groups are gaining strength and becoming a larger presence on university campuses across America. For example, an article stated that the University of Connecticut decided to allow students with protest signs to attend athletic events only after the school was approached by a student organization requesting this measure. If Nike cannot reconcile its differences with student groups, it will face more and more threats to its reputation as these groups gain more and more of a following on campuses.

Competition: According to various Web sites, Nike competes with Converse, Fila, Adidas, New Balance, and Reebok. Nike currently dominates the market, but these companies pose a potential threat to its reputation. If Nike cannot stay one step ahead of these companies in terms of product design and customer satisfaction the corporation could flounder. Reebok, for instance, has already taken over Nike’s contracts with the WNBA and the NFL.

Industry Trends: In the past, Nike has been unable to keep up with changes in the industry. According to a report concerning Nike’s weaknesses, the corporation was one of the last athletic footwear companies to move into e-commerce and was late recognizing other trends in the market. Nike can ill afford to be viewed as a complacent company and cannot let this threaten its reputation.

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Manufacturing Network and Global Economy: Nike Inc. is the parent company of numerous subsidiaries and is imbedded in an intricate global manufacturing network. Additionally, Nike relies heavily on the global economy to succeed. What is more, the corporation grew so fast that it developed organizational dilemmas, causing Phil Knight to admit in a news release “four years ago, we (Nike) had outgrown our ability to manage the business.” If Nike and its publics cannot understand the intricacies in Nike’s corporate system, they might lose faith in the organization.

Management: Since its conception in 1964, Phil Knight has held close control of the company and “ruled with a mix of closely allied senior managers,” according to a business report entitled “Channel Conflict.” Nike management has also gone to tremendous lengths to identify with competition and victory. Management wants to be in complete control; however, this is not always a positive in the eyes of stakeholders and could threaten its reputation.

Internet Boom: An Internet search with the phrase “anti-Nike” showed thousands of links to anti-Nike Web sites appear. With the click of a mouse, anyone without any accreditation or legitimacy can post anti-Nike sentiment or have access to antiNike material. This has made it easier for activists to express their negative opinions of Nike and is making it harder for Nike to overcome some of its less flattering reputations.

Lawsuits: Nike has been involved in many lawsuits that also threaten its reputation. Most recently, the United States Court of

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Appeals for the Second Circuit affirmed the dismissal of a case against Nike and St. Johns University by a Mr. Keady. According to a report by Vada Manager, Director, Global Issues Management, “Mr. Keady had made numerous attempts to discredit Nike’s considerable efforts at improving conditions in the factories and communities around the world where our products are made.” Although Nike won the lawsuit, Keady’s efforts, and others like them, to discredit Nike pose a threat to the strides it has made in the way it does business.

Branding: The essence of the business Many people view branding as purely a logo or a name; however branding is far more than this. A brand should capture the true meaning of the business and is created jointly by the efforts of

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business and through consumer’s perceptions. Many of these perceptions will be given to the consumer initially by the business. However, in some situations the perceptions can arise from situations outside the business’s control, for instance through bad press.

To explore this idea think about all the attributes you associate with:

At a recent workshop the logo provoked the following comments: competition, physical activity, quality, and role model, expensive, slave labor and modern. Some of these attributes will be the Nike brand; others are the result of consumer perceptions created by bad press, quite possibly resulting from ill-thought out management decisions.

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Mission

Product

Why do you do what you do, beyond the money? Vision

What do you actually do?

Were do you plan to be in the future? Bigger, more

We produce beef etc

specialised etc

Brand Essence Positioning

What will you never compromise on?

How do you want to be seen? Value for money etc

Values

Style How do you interact with our customer? Relaxed, business-like etc

Quality, provenance, etc

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Branding: powerful marketing mechanism used by Nike

•

Leads to higher and more consistent product

quality. Increases innovation by giving producers an incentive to look for more new features that can be safeguarded by the patent.

•

Branding results in more product variety and choice for consumers. •

Branding provides consumer information about products and where to find them. •

Brand Image

A strong brand creates a preference to purchase and an inclination to continue purchasing (brand loyalty). We most commonly think of branding as something the big guys do with their large ad budgets and extravagant television commercials. In recent years some observers have noted that branding is losing its power. We see more and more people buying generic prescriptions over the label brands. "Would generic be ok with you sir?" But in truth, when you go to buy a new vehicle, don't you consider the brand? Would you buy a $18,000 generic brand over a $22,000 Ford? As a small business owner what should you do? The concept of branding is an ideal method of forcing you to focus on what it is that you do, what you want to do, and what you want to become. To create a brand you must develop a set of guidelines for your business and identify how you want your business perceived. How do you want to be seen by the public?

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You might think that your brand image is your logo. Like the Nike logo, or the Disney logo, or any other famous logo. But in truth your brand image is every customer/prospect's interaction with your company that creates an impression. It's your company's character. It's a conglomeration of interaction and observation by people outside your organization: how your phone is answered, the quality of customer service, how your trucks look, or even how your web site looks. It's what makes your company unique among the hundreds of competitors. Your brand image should communicate the difference between you and the competition— your reason for being. Your brand image should reinforce your corporate message so that it helps make you stand out in a crowd of look-a-likes.

Brand equity

•

Brand equity is defined as the positive differential effect that knowing the brand name has on customer response to the product or service.

• Brands represent the consumers’ perceptions and feelings about products and their performance. • The real value of branding is the ability to capture consumer preference and loyalty. •

Brands vary in power and value and have varying degrees of brand awareness, brand preference and brand loyalty.

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 Brand personality Personification.

Michael Jordan Put Nike on the map – 1984-1985 Nike saw a decrease in their earnings for the first time ever – Influenced them to make their first specialty basketball shoe – Since then, Michael and Nike together have generated billions of dollars in revenue – “World Sports Hero No. 1” – Jumpman logo is one of the most easily recognized symbols throughout the world

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Tiger Woods The newest Nike sensation – Estimated that Nike paid him $40 million – More attention than Michael Jordan and Bo Jackson – 3 pg. ad in Wall Street Journal – 30- and 60- second TV spots Aired during college football, major league baseball, the U.S. Open, SportsCenter and Monday Night Football

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Consumer Behavior and Managerial Issues Nike.com is by all means a great place to do online shopping but I found that it can be just as good for the consumer who wants to do there shopping offline. With the many online departments and adjustable features you can decide what you want and then use the store locater to get directions to the nearest retailer. Nike uses secured socket layer technology to ensure you that your credit information is secured. Nike also uses cookies as an information gatherer to see what your preferences or tendencies may be, which enables them to supply a better service to there customers. If you don’t want your information to be used in this form Nike also shows you how to deactivate cookies or even how to opt-out of receiving e-mails for them. In conclusion the group thought Nike.com was a really well put together web site, while some may find it a little difficult to navigate, it has great customer service to help you, and many features to keep there customers happy and searching there site for long periods of time.

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Nike: Porter’s Five Forces

Product Mix

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A product mix is the set of all products and items that a particular seller offers for sale to buyers also known as product assortment. • Product Width It refers to how many product lines the company carries. • Product line A product line is a group of products that are closely related because they perform similar functions • Product length It refers to the total number of items in its product mix • Product depth It refers to how many products are offered of each product line.

Product mix of Nike

• Footwear • Studs for Striker • Mid fielders • Defenders

• Apparel

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• Headwear • Tops/Polo • Jersey • Jackets • Shorts • Shocks • Equipment • Ball • Bags • Watches • National Team Gear • Jersey for Brazil, England, etc. • Club Gear • Club Jerseys like Man U, Real Madrid, etc

Culture in organization “Nike”

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A culture of any organization can be viewed as the shared cognitions, values, norms and beliefs. Thus they function as symbols of a society or subgroup. Thus every organization has its own culture and values on which they perform. Nike is seen as an organization of innovativeness and health conscious and fitness oriented organization. Nike can also be viewed as an organization promoting hard work and young talents which is communicated to the customers through its advertisements also like ads of Ronaldinho, Rafael Nadal etc. Nike also has a culture of promoting high achievers so as to keep an image for the organization itself. Nike’s culture is spread over all its Nike Inc. facilities all over the world. Thus it is culture has been affected by cultures of various countries and influenced by there subcultures too as it is the same people that for the organization that live in the society too.