Nike - Brand Audit 6n5r49

Brand Audit Assignment Course: MKT 510 – Innovations in Marketing Section: 011

Group : Asarian, Reza Cadhit, Carlyle Chu, Chi-Feng Ngo, Khai Shenoy, Julian

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Table of Contents

I.

Introduction and Macro-Analysis__________________________Page 3 to 5 1. Company Background_____________________________Page 3 2. Industry Analysis_________________________________Page 3 3. Consumer Analysis________________________________Page 3 4. Special Issues and concern__________________________Page 4 & 5

II.

Brand Inventory________________________________________Page 5 & 9 1. Positioning_______________________________________Page 5 2. Brand Elements___________________________________Page 6 3. Current Marketing Program________________________Page 6 & 7 4. Brand Architecture________________________________Page 7 & 8 5. Competitive Inventory_____________________________Page 8 & 9

III.

Brand Exploratory______________________________________Page 10 & 15

IV.

Recommendation_______________________________________Page 16 & 17

V.

Appendix______________________________________________Page 18 to 29

VI.

Reference______________________________________________Page 30 to 31

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I.

INTRODUCTION AND MACRO-ANALYSIS:

1. COMPANY BACKGROUND: The NIKE brand was officially founded in 1971 and has been on the market for over 40 years (Nike Inc., 2013). NIKE Inc. is a multinational company specialized in various sports products such as accessories, apparel, and most importantly athletic footwear. In fact, NIKE is the largest company in sales of athletic apparel and footwear in the world, reaching over $25 billion in sales in the 2013 fiscal year (Mergent Online, 2013). The company is situated worldwide, and operates in over 180 countries such as the US, Thailand, the UK, Australia, , Canada, and Mexico (Gale Cengage Learning, 2012). The company sells its products through multiple distribution channels of NIKE-owned retail stores and online marketplaces. 2. INDUSTRY ANALYSIS: Athletic apparel is certainly a thriving industry and NIKE is the market leader in athletic shoes and dominates in both sales and share. But with such an identifiable market, competitors are never far behind. NIKE‟s main 2 competitors in athletic shoe sales are New Balance and Adidas, with Adidas standing as NIKE‟s main competitor. According to Lazich and Burton (2011), NIKE combined with their Jordan and Converse brands own about 48.87% of the market share within the athletic shoe sale industry. Adidas may not have as much value as NIKE but the company is still able to reach many different endorsement and sponsorship promotions such as Derrick Rose from the NBA and the main sponsor of the London 2012 Olympics.

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3. CONSUMER ANALYSIS: NIKE‟s current mission is “To bring inspiration and innovation to every athlete in the world” and that “If you have a body, you are an athlete” (About NIKE inc., 2013). This allows NIKE to position to every athletic apparel , whether they are a professional, amateur, or casual. According to the Canadian Community Health Survey (2012), There is an increasing trend of consumers going for a casual walk 16-30 minutes everday. NIKE recognized this target group and built their shoes to satisfy these casual runners, walkers. This ultimately leads to an increase in sales of NIKE‟s athletic footwear. [From about $19 billion in 2009 to over $25 billion in 2013] (Mergent Online, 2013). 4. SPECIAL ISSUES AND CONCERNS: One of the largest issues that NIKE has to face is product counterfeiting. “The low quality of these counterfeits affects the consumer confidence and also tarnishes the brand image of the genuine company” (Gale Cengage Learning, 2012), ultimately causing customer confusion. Product counterfeiting with similar looking products at cheaper prices affects all aspects of the brand from image, knowledge to profit margin. Many customers may choose to buy the counterfeit products instead of NIKE‟s since they offers almost a similar experience comparing to the real product. Overall, counterfeit products are detrimental to the brand awareness because consumer knowledge of the brand may change NIKE‟s preferred image of high performance at a value pricing to the cheap and low quality perception associating with counterfeit.

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The other issue that NIKE is facing now is the intense competitive landscape. As it mentioned earlier athletic apparel is a very competitive marketplace. According to Gala Cengage (2012), “with rising competition, the industry has been realizing consolidation wherein the smaller entities are being acquired by or merge with major players”. On the other hand, there are many new private labels entering the industry causing the athletic apparel even more competitive.

II. BRAND INVENTORY: 1. POSITIONING: NIKE is a very powerful company in athletic apparel, which has a very strong positioning with regards to its competitors. In of point of parity (POPs), NIKE shares multiple features with its competitors. For example, NIKE has individual electronic performance technology that allows customers to train on their own and at their own pace, which called NIKE+ that works with Apple products. This is true while Adidas has a similar product with same features called miCoach Pacer (Swoosh or strips?, 2010). What is true about NIKE and athletic apparel market is that, they all sell sportswear equipment, which this can be the main point of parity. In of point of differentiation (PODs), there are some features that differentiate NIKE from its competitors. According to Mathieu Daniel (2013), “What is important about NIKE`s strategy first of all is its presence in all sports”. We can see NIKE‟s product almost in every different sports from basketball and soccer to golf and ski‟s equipment, which this allows the brand to expand its audience. This is true when some competitors such as Asics is only focused on running shoes that cause them to limiting their target opportunities.

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Another point of differentiation that NIKE has with its competitor is the introduction of NIKEID, which allows customers to customize their shoes and gear. For example they are able to change the color of the “swoosh‟, the overlay, and the tongue of the shoes. 2. BRAND ELEMENTS: NIKE is one of the most powerful brands in the world in of brand elements. Some of the elements that they use are brand logos, names, slogans, packaging and endorsements with celebrity or athlete (How does Nike score in brand elements?, 2013). NIKE has different logos and names for each of its product. For example, Jordan‟s brand has its own name and logo or Cristiano Ronaldo‟s line of product has its own logo and name, which is “CR7”. In of slogans, NIKE has one general slogan that is, “Just Do It”. NIKE‟s goal to create this slogan was to communicate that sport is for everyone and they just have to do it. Another interesting slogan from Nike is “if you have a body, you are an athlete”, which further communicates that the brand is for everyone, and anyone can be an athlete. NIKE tends to connect and sign with famous athletes in different sports to represent its brand in each different sectors. (Roger Federer for tennis, Cristiano Ronaldo for soccer, Tiger Woods for golf, etc.) “This makes most of us to believe, that when it comes to buying sport shoes, clothes or equipment, we just have to step into one of Nike‟s shoes to become an athlete as well” (How does Nike score in brand elements?, 2013).

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3. CURRENT MARKETING PROGRAMS: NIKE currently in Canada has a campaign and promotion called “Speed Unleashed”, which they promote and sale the Canadian Hockey team‟s jersey for 2014 winter Olympics. NIKE also has a “Free Your Move. Free Your Training” campaign for their new NIKE Free Trainer 5.0 shoes, which is a well-designed running shoes. One of the products that NIKE is trying hard to promote and is their NIKE+ products and its accessories such as NIKE+ sportwatch and NIKE+ Fuelband SE. They have “NIKE+ community” in which people who have NIKE+ products can go online and this community and share their running experience in of their daily goals and distance and places that they have run; with other NIKE+ s. With this campaign NIKE is trying to encourage more people and runners to buy this product. 4. BRAND ARCHITECTURE: Differentiation and segmentation show to be a key aspect within NIKE‟s main competitive strategy. The company has a multitude of products to choose from, making it very simple for a consumer to find something that appeal to their distinct needs and wants. NIKE has an extremely deep and fairly broad brand portfolio. They are a company with many brands that are used to separate into segments of the market to help avoid disconnect between each other. Although they have a vast amount of brands, they tend to focus on 4 major players: Converse, Hurley International, NIKE Golf, and the Jordan brand. This branded house however still resides within its core market, the sporty and fashionable consumer by typically only supplying 3 main types of products: footwear, apparel, and Page | 7

sports equipment. NIKE‟s athletic footwear has proven to be the most successful of the three, carrying a multitude of extensions such as basketball shoes, soccer cleats, casual sneakers, and of course the running shoe. Running shoes are NIKE‟s most differentiated extension line due to the amount of modifiers that they have been able to implement. A recent implementation is the modification of the new “Flash Pack” line, “a reflective and water repellant line of shoes to keep runners protected from the elements” (Nike, Inc., 2013). These shoes are designed specifically for someone who is running outside during the winter time when the sun is down, showing the clear amount of specificity that NIKE has with some of their extension segments. NIKE does not supply much outside of these core products fearing any customer confusion if they were to venture off into the development of non-sport/athletic related products. NIKE wishes to stay within their market segment and it has proven to be a success as the industry is steadily growing. This has shown to be one of NIKE‟s greatest strengths; they have been able to achieve their desired brand image and knowledge through the careful and specific implementation of their brand architecture and portfolio. 5. COMPETITIVE INVENTORY: NIKE is one of the most successful brands in the world with a very identifiable and accessible market, making it a deep segment for competition. Adidas is NIKE‟s main competitor because of how similarly positioned they lie within the marketplace. Adidas (in 2011) held 16% of the worldwide market share within the athletic footwear marketplace (Gale Cengage Learning, 2012), placing it in second behind NIKE, which held 31% of the market share. Although NIKE holds nearly double the share of Adidas, it still has much to

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worry about. Adidas‟ positioning is similar to NIKE‟s which they target casual consumers as well as highly skilled athlete. Adidas‟ slogan “Impossible is Nothing”, stating that with effort, training, and determination, you can accomplish anything. However, what sets them apart from NIKE is their pricing strategy. Adidas tends to price their products slightly lower than NIKE and in a retail sector that is become more substantially price competitive. However, the reason NIKE can price at a over Adidas is mainly attributed to the highly skilled athletes they sponsor, and with an accomplished athletes approval they are able to persuade the consumer to purchase. So long as NIKE can continue to increase and reinforce the associations and image of their brand, they will continue to be able to price at their current . Although not as famous as the NIKE “swoosh”, Adidas does have a trademark logo, the triple stripe. The company‟s logo may not be as famous or widely known as the “swoosh”, but it certain holds a strong following in the minds of the consumers that recognize it. Adidas is less focused on winning and flattening the competition and more focused on the ion, ambition, and drive of their consumers. Adidas centers around emotion, stating that “the emotional connection we feel towards our brands, our lifestyle, athletes of all levels, and each other is something to value and to share” (Adidas: Our Brands, 2013). Adidas‟ brand architecture is not nearly as deep as NIKE‟s, however they do still have many successful and interesting brands under their umbrella. Adidas owns a crowd of brands, but they mainly promote 3 of them; Reebok, TaylorMade, and Rockport. They also carry the same 3 product types as NIKE as well, supplying footwear, apparel, and equipment.

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Overall, Adidas is NIKE‟s only true competition in the athletic footwear marketplace and with good reason, they provide much of the same products, similarly positioned, and sponsor high-marquee athletes. This is definitely a company that NIKE cannot look past in their future competitive endeavors.

III.

Brand Exploratory:

1. Consumer Research: Qualitative research-interviews with 10 participants (Please refer to Appendix I for full detail of the research) Summary from the conducted qualitative research and Table 1: Consumer Attitudes o The brand personality is defined as the „set of human characteristics associated with a brand‟ It is useful to companies because it often invokes feelings that are desirable by brands to increase usage rates. (Aaker, 1997, p.347) o Respondents stated that Nike is a very exciting and unique brand and promotes the winning mentality effectively, however it lacks to maintain ruggedness or toughness of other athletic brands, such as Under Armour. o As expected, Nike scored generally well in physical activity related categories. Success, Activeness and Athleticism. o Weakest in the categories of Sincerity, Honesty and Down to earth categories. Most likely due to the unethical labour practices of the past which still exists in consumers‟ minds.

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o While many considered Nike an exciting and unique brand, concluding from responses we see that consumers do not generally consider Nike a rugged or tough brand, but more necessary for athletic performance and activities.

2. Uncover:  Consumer Knowledge  Brand Awareness 

To make an informed opinion, consumers must be aware of its existence. However, this is not always enough to maintain effective brand equity. (Keller et al., 2008, pp.36-37)



In our study, 100% of respondents were aware of Nike as a athletic brand and attributed the company with high performance. From this we found that Nike is clearly very popular company overall and is near the top of mind when considering athletic footwear.

 Associations 

Consumers generally associate Nike with athletic supremacy and an improved athleticism during physical activity. A majority of s associated feelings of success, power, finesse and an improved physique. Since Nike is most commonly attributed to athletic gear mainly footwear for various sports.

 Attitudes 

Even though many respondents associated Nike with high performance, most felt it lacked genuine feeling or sincerity. Consumers were not willing to pay a for the footwear if they can get the same quality from a competitor.

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

It is apparent that Nike aims to build on „athletic performance‟ in its product and company mission. Aiming to help people overcome barriers, take risks and competitively achieve their goals.

 Emotions 

Consumers did not feel particularly emotional towards Nike products, but did enjoy their marketing and advertising campaigns; especially around Olympic events and ones which showed commitment and will of the human spirit.

 Identity 

Consumers tend to prefer Nike due to its wide range of footwear for different activities (running, basketball, golf etc.) While each confirmed that Nike produces a very comfortable and performing shoe; there was a stark difference between women and men. Men tended to enjoy the performance and affordability of shoes, while women, were more interested in the style and design that went into the model of footwear before considering the best purchase.



A celebrity endorsement is useful because consumers tend to adopt the behaviour of someone else they ire and aspire to be like. Nike sponsors such athletes and provides them with the same gear that a fan can buy and identify with.



Professional athletes are frequently seen in Nike marketing campaigns, promoting their products. Such endorsements are used by companies to further

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generate awareness and increase consumer intent to purchase products they see ired figures endorsing. (Keller et al., 2008, p.330)  Resonance Pyramid:  Meaning 

Nike invests high amounts of money into sponsoring professional athletes who they believe are suitable representations of their brand. In 2012 the company spent $2.7B in endorsement expenses. (Nike Inc. 2012 Annual Report)



However, most respondents were skeptical to believe that the endorsement was genuine. Many stated that they only believed that the praise is due to money and not the authentic feelings of the celebrity.

 Responses 

Consumers generally are very aware of Nike being a athletic brand. A majority of respondents felt very positive towards Nike and enjoyed their products for athletic wear. With a sizeable amount claiming to have bought Nike products for use in physical activity.

 Relationships 

Nike‟s most recent mission statement is “To bring inspiration and innovation to every athlete in the world.” Individuals responded very positively and believed that the company‟s vision was a good fit for what Nike has done throughout its history. Most saw the company at the forefront of innovations for athletic gear and at as a market leader. Consumers also praised the marketing campaigns done by the company, (especially during Olympic

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season) and identified Nike ads as one of their most favourable part of the company.

 SWOT analysis (chart included in Appendix I):  Strength: 

Nike has a huge influence in sports industry; it “has established a strong position for enhancing athletic lifestyle” (Anonymous, n.d). The logo of Nike speaks better than the brand name itself which tends to hold the most mind shares. On top of the impact it has in the athletic footwear sector, Nike also sponsors celebrities and top athletes in different sports for endorsement.



Speaking of quality, Nike has one of the best research and development team in the industry; Nike has always been the industry leader in of product quality and product innovation. Nike is always able to implement technologies across industries, while managing to sustain above the standard product qualities during manufacturing processes.

 Weaknesses:

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

Nike is known for having factories in developing countries like Indonesia, Vietnam, China, and more. Several unethical practices are frequently being reported, such as hiring child labors, paying works below minimum wages, and enforcing sweatshop that forces employees “to work over sixty hours each week and punished them if they refused to work overtime” (kr150276, 2013). Even though Nike claims that they have been putting effort into resolving these disputes, the public still remains skeptical of Nike‟s degree of dedication.

 Opportunities: 

Nike is able to ride the trend as the technology innovates at a very fast pace. Nike is able to implement its technology and spirits across industries, such as Nike+ on Ipod or Nike Kinetic on Xbox 360. Coming up next, as more and more tech firm eager to introduce more wearable devices such as Google‟s Google Glass or Samsung‟s Galaxy Gear Smartwatch to the consumers, Nike may be interested in investing into wearable technology as it seems to become an emerging paradigms.

 Threats: 

As more and more sports brands consider outsourcing and developing multiple product lines for different target segments, the foot wear market is

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becoming more competitive, and Nike is gradually losing the competitive advantage of having a product that possesses high value with low cost. 

On top of it, the international market is on the rise while “the domestic market is reaching saturation” (techanalysisblogger, 2013). However, the risk associated with the trend is due to globalization and currency fluctuations. Globalization decreases not only the manufacturing cost but also the retail price. Along with the currency fluctuations among the global market, Nike has to be extra cautious as sometimes “profit overseas can turn into a loss” (techanalysisblogger, 2013).

IV.

Recommendation:

Long term strategic goal: Strengthen the brand by mitigating damages that cause by the weaknesses and threats.

No matter how strong a brand is, it‟s never perfect. A strong brand is a brand that could identify its weaknesses and find a way to improve them. For that reason, our long term strategic goal would focus on the threats and weaknesses that NIKE has been facing. 

Recommendation 1: Improve working conditions for overseas labours.

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From what we have analyzed in the SWOT analysis, one of NIKE‟s weaknesses is unethical practice in manufacturing plants outside of the States. This is eventually a common problem for giant businesses. Once the demand for their products increase, the competition within the market also get more intense and as a result, big businesses are forced engage seeking for cheaper labours overseas. This is where the problem starts, as cost gets lower, labours are being paid less and also exposed to lower quality working environment which ultimately leads unethical practice that could damage NIKE in term of brand image and legal actions. In order to manage this problem, NIKE should act more aggressive on their overseas manufacturing plants in term of human resources management: Setting one common standard about working conditions, labours‟ wages and hours to all of its manufacturing plants and any plant that fails to meet the standard will be shut down. 

Recommendation 2: With a reputation of “overpriced” products, NIKE should adjust their products’ prices to make them available to more consumers. Although NIKE has created a perception in consumer‟s mind with “high price-high quality” image, NIKE‟s products tend to be too expensive for a large portion of consumers despite their desire for the products. Leaving the high prices unadjusted could cause NIKE to lose this customer base in the long run and other competitor could pick on this factor to offer similar products with lower prices to capture the “left-out” customers. In order to prevent this problem from happening, our team strongly recommend NIKE to adjust its prices, making their products available to a large portion of customer base with low purchase power.



Recommendation 3: Improving US-based performance in clothing manufacture.

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US-based performance clothing manufacturer, Under Armour (UA) is one of Nike‟s largest and most threatening competitors. Rather than focus on a niche market, UA focuses on the entire performance apparel market and has made significant growth against Nike. Nike is still the market leader with a 36% share in the apparel segment with UA overtaking Adidas to be the new No.2 brand in North America with a 31% share of the market. (Mergent Online 2013) Currently, Nike is seen as more of a style icon rather than a athletic performance brand as it had been in the past. Consumers have been choosing Under Armour for their innovations of material and higher quality compared to Nike.Our team‟s recommendation in this case is to import lower cost products manufactured from overseas and sell them at lower prices comparing to UA.

Appendix I- Qualitative research-interviews with 10 participants and SWOT analysis NIKE IN THE CONSUMERS‟ MIND SURVEY (10 respondents) 1. Are you aware of the Nike Athletic brand? If so, what are your feeling towards it? 2. Nike’s mission statement is “To bring inspiration and innovation to every athlete* in the world.” Do you feel that the company mission statement successfully outlines your perceptions of the brand? 3. What do you like the most about Nike athletic footwear? What factors are most important to you when purchasing athletic footwear? 4. Do athletic endorsements such as Lebron James, Kobe Bryant, Tiger Woods, and Christiano Ronaldo etc. Influence your perceptions of Nike or your purchase decisions? 5. Does the controversy of unethical labour practices affect your purchase decision when shopping for athletic shoes? Page | 18

6. About how much would you be willing to pay for a pair of Nike athletic shoes? (Please enter a whole number. Enter the number of dollars you are willing to pay.) 7. Do you own any Nike items? 8. Below is a list of characteristics. Please state how strong you feel that these characteristics are in relation to the brand Nike. 1 2 3 4 5 Excitement Competence Reliability Success Intelligence Sophistication Ruggedness Toughness Active Athletic Sincerity Honesty

Down to earth

Sarah 1. If you are talking about their clothing line then yes I am aware it and love some of their sports d gear. 2. I would not agree completely with their mission statement, I would say that Nike as a brand are innovators in athletic shoes but I do not believe them to be inspiring because of their products. 3. I like the fact that Nike athletic footwear is always very stylish and on trend. I also appreciate that they have many different types of shoes for whatever your needs are for example running, exercise, cross training etc. 4. For me it does not matter who is endorsing the Nike Brand. I am buying their shoes because of the look and style.

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5. It does bother me to hear how little their employees are paid and the types of conditions they work under. Which I believe are horrifying and unethical. But like most companies these days most goods are produced in similar ways and conditions. 6. When I am purchasing athletic footwear, which is not often. I usually purchase them for the look and comfort. I would not spend more than $200.00, but if they were a limited edition by a certain designer and I loved them I would be willing to spend at the most $800.00 7. Yes Lindsay 1. Yes I am and generally I have positive feelings about it. 2. Yes. This is seen through the brand's marketing efforts. Love the Nintendo inspired commercial they did a while ago. 3. I like the innovative designs and what they are doing with the FUEL band and ing social community. While I don't have a FUEL band, as a tech geek, I like the concept of it and it makes me look favorably on the brand. 4. They definitely make the brand seem more credible. 5. If it's in the news, yes. Generally no, only because most merchandise that is available in stores is subject to the same issues. Joe Fresh being the latest of many. 6. Up to $100, but I'm not a hard-core athlete and my shoes (which are Nike) only see the inside of a gym. 7. Yes Adam 1. I don't really have any feelings towards it in one way or another. I would, I suppose, consider Nike an innovator in the fitness apparel space insofar as technologies they've released over the years in their apparel. They are also one of the few brands successful at utilizing a simple icon (the swoosh) as a visual queue synonymous with the brand. Go almost anywhere in the world, show someone the swoosh, and they'll know its Nike. 2. I would tend to agree more so with the innovation part, so far as my personal perceptions are concerned. I'm a person who doesn't gravitate towards inspirational/aspirational messaging unless it's in a vertical that I consider to be most fitting for my day-to-day, however I could definitely understand how many of Nike's campaigns (think the "Find Your Greatness" video with the overweight kid running) are inspirational to not only those with a focus on physical activity but those looking to make a lifestyle change by way of the addition of exercise in their everyday routines. 3. I currently don't own a pair of Nike footwear. I would have to say I like their aesthetic, however when and if I do purchase athletic wear I tend to do so when it's on sale. I'm not loyal in this area of apparel as I'm not heavily into fitness/exercising. 4. Absolutely not. While I know all those names and that they are top players within their given sports, I could care less about the sporting realm as a whole and thus celebrity endorsements do little for me. (Plus, can you really call something an endorsement if it's bought, right?) A perfectly designed poster using stunning typography and great use of contrast will draw me in over any celebrity purportedly putting their personal seal of approval on a product any day of the week. 5. I suppose my answer should be yes but unfortunately it's a no. Fact of the matter is, we're a capitalist society and thus monetary gains is always the end goal. That being said, if there are two equally great products side by side, and one is Canadian made while the other is outsourced, I'd likely buy the Canadian one if the cost difference is less than 25% (i.e.: outsourced shoe at $100/Canadian made at $125). 6. Depends on the technology found within, style, etc., but like anywhere from $125 to $150. 7. Yes Melissa

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1) Yes. Best advertising in the industry 2) Yes. I wish I were more athletic whenever I see their ads. Their placements at the last Olympics (bright shoes) was the best form of guerilla marketing I‟ve seen in a long time. It helped to continue to align then with sports and innovation in my mind 3. As a non-athlete, I purchase more versatile brands like lulu lemon, O‟Neill, and mountain equipment co-op. same with footwear, I own Sperry top sliders for boating and every day. I don‟t wear runners 4) No, but campaigns empowering women, like their recent one, do affect my perceptions of the brand and influence my purchase decisions. 5) Bothers me, but realistically... No, I still buy products from companies with horrible manufacturing, labor, and human rights practices like apple and Nike 6. $60-100 7. Yes Daniel 1. Yes I am aware of the brand. My feelings are very neutral toward the brand. I think their products are great, however I do not like the idea of using cheap/child labor to produce their products. 2. I feel it does. It gives off the image through their sponsorship and genius commercials. 3. I like the name brand. And the idea that there is a lot of history, innovation and expertise behind Nike creating their products. I look for something that is comfortable, and that others may be wearing. If it's a popular shoe, it says to me that it must be good. 4. For me, no. because I know that while celebrity endorsers often times get free products, they will wear whatever products they find fit and comfortable outside of the prescribed times they have to wear the product. 5. Yes it does. It will make me think twice about a product. However it may not necessarily stop me from purchasing products. 6. I usually do not pay more than $60-$70 for shoes. 7. Yes Samantha 1. Yes - It's everywhere these days. I work in a gymnastics gym and all the girls from 8-14 have Nike running shoes and Nike spandex shorts that they work out in. I have a pretty "positive" attitude towards Nike, but I do the sweat shop controversy that does stay in the back of my mind when thinking about Nike. 2. I think they're pretty innovative with their Nike Fuel Brands and new footwear so I'd say so, yes. The "every athlete" part kind of bothers me because it seems they market to higher level, extremely fit and skinny/muscular athletes more than average people. 3. I like the variety of colors and the comfort during wear. I also like the ease in finding Nike footwear. The most important factors are comfort, affordability, and color. 4. No, I base purchasing decisions off of online reviews and personal desire and comfort level. 5. It hasn't really, but I do still think about it and hope that Nike has fixed some of these issues, as it could affect decision making in the future. 6. $100. 7. Yes Casey 1. Aware of Nike, and generally think they make quality fitness apparel. 2. Sure, they bring both items to athletes of the world. They need to stay ahead of their competition, so they also have little choice BUT to do so. 3. I like the comfort and quality associated with the brand. I've gotten little Nike gear in the past that I wasn't satisfied with.

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4. Athletic endorsements do little for me. I need to know that the product I need is a solid item — if the shoe sucks, no one's going to get me to wear it. 5. No. It really should but it doesn't. I need to be more involved in the on-goings of the world and integrate them in my daily activities, but I'm not there yet. 6. 100. I'm not dropping 250-300 on kicks. Just isn‟t happening'. 7. Yes Alyssa 1. I‟m aware of Nike. My feelings are pretty Meh about it. 2. I didn't know that was their vision statement until just now. I feel like it‟s a pretty big statement, but they're on the right track. It‟s not what I think of when I think of the brand though. 3. When I was a kid Nike was more of a status symbol. Having Nikes were cool. I'm in the stage that status doesn't rise above my need for practical and affordable. 4. Non Athletic endorsements entice me to purchase the shoes. 5. I don't think about it ever. 6 $65.00 7. Yes Krysta 1. I am, but it does not play much of a role in my life, as I am not athletic. 2. I guess so. Nike is the brand that comes to mind when I think of that sentence. 3. Nike footwear looks sleek while being designed for actual use. The most important factors for purchasing athletic footwear for me is comfort and arch . 4. Those endorsements just serve to remind me that the brand is big enough to dump money into endorsements. I guess athletic endorsements should add credibility to the functional use of the shoes, but the fashion endorsements (such as Nelly in the early 2000s) seem to have a longer lasting effect 5. At this time, it does not, but if I was purchasing athletic shoes more than once every several years, I might look into that 6. $160 max 7. Yes Simone 1. Yes I am aware of the Nike brand. I think the brand offers some very cool athletic clothing, but think it's extremely over-priced. I only ever buy Nike clothing when it's on sale. I think the brand itself represents something unique for athletes. 2. Yes I do. I have always thought of Nike as a brand that gears its products towards athletes and think they do a successful job at doing so. Do I think that just by wearing Nike clothing that you will be inspired to be a better athlete? Absolutely not. 3. The only thing that attracts me to Nike footwear is the colours they use. Their shoes are funky and different and stand out when you look at them on a shoe wall. I personally think their footwear is terrible for your feet and are really just meant to be worn as street shoes. It's important for me to buy athletic footwear that s my ankle and foot while running and Nike shoes do not do this. 4. Absolutely not. I think because I work in marketing and advertising that I'm able to see through the bullshit of celebrity endorsements. I would never buy a product, Nike or otherwise, solely because it was endorsed by a celebrity. When I see athletes like those listed I just assume they were paid too much money to wear something they got for free. 5. to a degree. I certainly try to remain aware of unethical labor practices and know that Nike has a sordid past of leveraging child labor to make many of its products. The problem for me is that I am cost conscious too and don't make a ton of money. I would love to buy the ethically made shoe that costs

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$200, but sometimes I just can't justify the cost and need to buy a shoe that's on sale and was maybe not made in the best way possible. 6. At a maximum I would pay $120 for a pair of Nike athletic shoes. I would have to know that they were designed for everyday use and not just a fashion statement. They would have to perform well and not just look good in other words. 7. Yes

Table I Scale

1

2

3

4

5

Excitement

2

5

8

5

0

Competence

0

0

4

11

5

Reliability

0

1

5

10

4

Success

0

0

3

6

11

Intelligence

1

2

12

4

1

Sophistication

1

4

9

5

1

Ruggedness

1

4

11

4

0

Toughness

1

3

10

5

1

Activeness

0

0

1

5

14

Athleticism

0

0

1

4

15

Sincerity

1

3

13

3

0

Honesty

2

5

12

1

0

Down to earth

2

5

12

1

0

NIKE SWOT ANALYSIS Strengths

Weaknesses

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        

Strong influences in the athletic goods industry Powerful brand image internationally Celebrity and athletes endorsement Strong mind share when it comes to sport brand Has no factories Has a huge loyal customer base A range of various product lines that price differently Possesses one of the most advanced product innovation capability High quality products and services

    

Child Labor Unethical practices in factory environment outside of US Some customers view Nike as the company that only cares about making money The company is too heavy dependent on footwear products Nike products are considered expensive

Opportunities 



Threats

Nike has the ability and potential to implement and to innovate their technologies with other different types of brand in different industry such as Apple, Microsoft or Android. The global economy is changing, countries like China has an increasing number of consumers who has disposable income

  

The retail sector is getting more price sensitive and price competitive Competing brands are catching up in of technology and marketing strategies Globalization and currency fluctuations may turn profits overseas into profit loss.

Appendix 2: Brand Audit Proposal template Brand Audit Proposal Template Team: 1. ______________________, ________________ 2. ___________________, _________________

,

(last name) (first name)

,

(first name)

3. ______________________,__________________ _________________

(last name)

4. ___________________,

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5. ______________________,__________________ _________________ Brand:

6. ___________________,

_______________________________________________________

Basic Brand Information:

o o o o o o

Corporate/parent company affiliation, if any? How long has the brand been on the market? Where does it stand on the product life cycle curve? Who are its customers? Who are the major competitors? Current strategic situation (Brand annual revenues, geographic coverage, successes, challenges

Your biggest challenge in auditing this brand will be:

Appendix 3-Research Consent Form Ryerson University Research Study Consent Agreement

NIKE IN THE CONSUMERS’ MIND SURVEY You are being asked to participate in a research study. Before you consent, it is important that you read the following information and ask as many questions as necessary to be sure you understand what you will be asked to do.

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Investigators: we are a group of researchers from MKT 510-Innovations in Marketing under the supervision of Professor Berger, Ida at Ryerson University, Ted Rogers Management. Our team consists of the following member:

    

Asarian, Reza Cadhit, Carlyle Chu, Chi-Feng Ngo, Khai Shenoy, Julian

Purpose of the Study: As a part of the research for NIKE brand audit, our purpose of study is to gain knowledge about consumer’s attitude about NIKE. We have chosen 10 participants who have purchased a NIKE product for this research in the group age of 20 to 28 ages to have a better understanding about young adult’s attitude toward NIKE. Description of the Study: The research will happen at TRSM-1099 at 1:00 pm on October 15th, 2013. The research consists of 10 questions which you could answer in any desired order. What is Experimental in this Study: The only experimental aspect of this study is the gathering of information for the purpose of analysis. Risks or Discomforts: Because of the personal nature of the questions being asked, you may experience unpleasant memories while responding. For that reason, you have the freedom to leave any questions unanswered if there is any comfortable feeling occur. Benefits of the Study: Your responds will help us to analyse and improve the quality of NIKE’s service. I cannot guarantee, however, that you will receive any benefits from participating in this study Confidentiality: Your information gathered from this interview will remain confidential and will only be used for research purposes. Voluntary Nature of Participation: Participation in this study is voluntary. Your choice of whether or not to participate will not influence your future relations with Ryerson University. If you decide to participate, you are free to withdraw your consent and to stop your participation at any time without penalty or loss of benefits to which you are allowed. At any point in the study, you may refuse to answer a particular question or stop participation altogether.

Questions about the Study: If you have any questions about the research now, please ask. If you have questions later about the research, you may . PI/Study Coordinator (your group leader + Ryerson email address) Study Supervisor: Dr. I.E. Berger, 416-979-5000 ext. 6712; [email protected]

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If you have questions regarding your rights as a human subject and participant in this study, you may the Ryerson University Research Ethics Board for information: Research Ethics Board, c/o Office of the Vice President, Research and Innovation. Ryerson University, 350 Victoria Street, Toronto, ON, M5B 2K3 416-979-5042 Agreement: Your signature below indicates that you have read the information in this agreement and have had a chance to ask any questions you have about the study. Your signature also indicates that you agree to be in the study and have been told that you can change your mind and withdraw your consent to participate at any time. You have been given a copy of this agreement. You have been told that by g this consent agreement you are not giving up any of your legal rights.

____________________________________ Name of Participant (please print)

_____________________________________ __________________ Signature of Participant

Date

_____________________________________

__________________

Signature of Investigator

Date

Appendix 4-Peer Evaluation Form The signed version is included in the hard copy.

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Appendix 5- Final Brand Audit Submission Grading Rubric APPENDIX 5

Final Brand Audit Submission Grading Rubric Page | 28

Brand: _______________________

Team : ________________, _________________________, __________________,

_________________ _________________________, __________________

Section Introduction /10

Brand Inventory /30

Requirements Objectives Background Consumers Issues Strategies / Tactics Architecture Competitors

Brand Exploratory /40

Associations Resonance Relative to Comp SWOT

Recommendations /20

Goals Strategies / Justified Implementation

Comments

Grade

____________________ _______

____________________ _______

____________________ _______

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Summary Comments

/100

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Converse (2013) About. Retrieved November 30 2013, from http://www.converse.com/about/about-us.html Crawford, H. . (October 2010). Swoosh or Strip? . Retrieved from http://blogs.ubc.ca/heathercrawford/2010/10/04/swoosh-or-stripes/ Daniel, M. (November 2013). Nike: Point of Difference. Retrieved from https://blogs.ubc.ca/matthieudaniel/2013/11/18/nike-point-of-difference/ Dominiquevanbennekom. (2013). How Does Nike Score on Brand Elements? . Retrived from http://dominiquevanbennekom.wordpress.com/2013/09/12/how-does-nike-score-on-brandelements/ Ed. Robert S. Lazich and Virgil L. Burton, III. (2011). Top Sports Shoe Makers, 2007-2009. Retrieved November 24, 2013 from Market Share Reporter Database/Gale Directory Library: http://bi.galegroup.com.ezproxy.lib.ryerson.ca/essentials/article/GALE%7CI2502033955/4ee6be bc1d0c6d88c79e6dd1eae6ad5e?u=rpu_main Gale Cengage Learning. (n.d.): Business Insights: Essentials. Nike Inc. [SWOT Reports] (April 2 2012). Retrieved November 24, 2013, from Business Insights: Essentials database. http://bi.galegroup.com.ezproxy.lib.ryerson.ca/essentials/search?u=rpu_main#displayGroup=swo t&q=company^306325 Gale Cengage Learning. (n.d.): Business Insights: Essentials. Adidas AG. [Leading Athletic Footwear Producers Worldwide, 2011] (April 10 2012). Retrieved November 30, 2013, from Business Insights: Essentials database. http://bi.galegroup.com.ezproxy.lib.ryerson.ca/essentials/article/GALE%7CI2502045099/1ea466 49ca720ff8e7a50719ae324910?u=rpu_main Mergent Online. (2013, September 29th). Nike, Inc. Company Financials. Retrieved from: http://www.mergentonline.com.ezproxy.lib.ryerson.ca/companyfinancials.php?pagetype=asrepor ted&compnumber=16861&period=Annuals&dataarea=PL&range=5&currency=AsRep&scale= AsRep&Submit=Refresh Nike, Inc. History & heritage (2013). Retrieved from: http://nikeinc.com/pages/history-heritage Nike, Inc. About (2013). Retrieved November 24, 2013, from: http://nikeinc.com/pages/aboutnike-inc Nike, Inc. (2013, October 03). Stay protected from the elements in Nike’s winter running gear. Retrieved from http://nikeinc.com/news/stay-protected-from-the-elements-in-nike-s-winterrunning-gear NikeID, (2013). Nike. Retrievd from http://www.nike.com/us/en_us/c/nikeid Page | 31

Nike+, (2013). Nike. Retrieved from http://nikeplus.nike.com/plus/ Anonymous. (n.d). Nike Case Analysis. 123Helpme.com. Retrieved on November 25 from http://www.123helpme.com/nike-case-analysis-view.asp?id=166596

Anonymous. (n.d). SWOT Analysis Nike, Inc. MarketingTeacher.com. Retrieved on November 25 from http://www.marketingteacher.com/swot/nike-swot.html

kr150276. (February 23, 2013). Nike‟s unethical business practices. Great Works of Literature Survey 1. Retrieved on November 25 from http://blsciblogs.baruch.cuny.edu/greatworks1/2013/02/23/272/ Techanalysisblogger. (September 19, 2013). Nike SWOT Analysis. Tech Analysis Blog. Retrieved on November 25 from http://techanalysisblogger.wordpress.com/2013/09/19/nike-swot-analysis/

Trefis Team. (January 3, 2011). Nike‟s Love/Hate Relationship with China. Forbes. Retrieved on November 25 from http://www.forbes.com/sites/greatspeculations/2011/01/03/nikeslovehate-relationship-with-china/

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