Marketing

Key Trends in the Sportswear Industry in Nike Inc

Wholly owned subsidiaries include Bauer Nike Hockey, Inc. Cole Haan, Hurley International, Converse, Exter Brands Group. With each subsidiary offering a unique brand proposition and products to its target market, Nike, Inc. has grown into a diversified apparel and footwear company (online Nikebiz.net).Financially, Nike, Inc. had a banner year in 2006. With revenues and profit amounting to $ 15.29 billion and $ 2.39 billion in the last 12 months, Nike had been able to improve operating margin to 13.25% slightly better than industry’s 12.28%. Gross margin also improving to 45.3% from 44.5% in 2005. Quarterly revenues are also growing at a rate of 8.60% with a free cash flow of more than $ 890 million. Return on equity and return on assets slightly improved at 23.3% and 14.9% respectively (Nike 2006).United States market continues to post robust growth for Nike recording 12% sales growth in 2006 as compared to 7% in 2005. on the other hand, European Union market growth is flat at 1% in 2006 versus 12% in 2005. The European Union market contributed $4.32 billion in revenues and $960 million in pre-tax profits to Nike. Sales from Nike Equipment were particularly robust growing 10% year-on-year, while sales in footwear and apparel were disappointing growing -2% and 4% respectively (Nike 2006).The research aims at developing a marketing plan for Nike, Inc. in the European market, in particular, the United Kingdom market. To develop a marketing plan, the plan shall discuss the following aspects:The company’s strategic mission/visionMarket overviewAnalysis of the company’s resources and market opportunitiesMarketing objectives and programmesBehind the success of a $23 billion company, Nike, Inc. has a mission and a vision. Its mission is To bring inspiration and innovation to every athlete in the world. An athlete, as defined by the co-founder Bill Bowerman, has a unique meaning for Nike. It means if you have a body, you are an athlete. (online Nikebiz.net).This unique vision has defined what Nike stands for.Bill Bowerman was legendary icon is articulating Nike’s purpose that is Ours is a language of sports, a universally understood lexicon of passion and competition… focused on creating performance opportunities for everyone who would benefit, and offering empowering messages for everyone who would listen. (online Nikebiz.net)

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