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Nike's Global Women's Fitness Business

Nellie Ruedig, Stephanie Gerretsen, Jai Ku Sun
by

Jai Ku Sun

on 9 January 2014

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Transcript of Nike's Global Women's Fitness Business

Nellie Ruedig, Stephanie Gerretsen, Jai Ku Sun
Nike’s Global Women’s Fitness Business
Brief Summary
Structure of company
Product orientation

Disintegrated nature
Primary Business Unit
Geographic Regions
Sports Categories
Sports Categories
Footwear (66%)
Equipment
(6%)
Apparel (28%)
Geographic Regions
Primary Business Unit
US (44%)

Europe, middle East and Africa (33%)

Asia-Pacific (16%)

Americas (7%)
Soccer

Basketball

Golf

Tennis
Organization structure of Nike: Complex Matrix
Running
Men's
Training
Basketball
Soccer
Women's
Fitness
Sportswear
Organization Structure After Strategic Integration
Phase 1
Phase 3
Phase 2
Gender?
Internal
External
Consumer
Where has Nike been in the women's market??

Disintegrated marketing leads to incremental growth.
Need for specific marketing
Missing Huge Opportunity


$13 Billion Dollar Industry
Large and Small Competitors
Our competitive position?
Changing the game
What do they want?
"Sweat Beauty"
22 year-old
Confident
Want to work out hard and look good

No hero-worship model
Develop Overarching Plan
Head to Toe Collections
Integrated Marketing
Synchronize activities and decisions
Exhibit 8
21 month calendar
Seasonal kick off & Creative direction
Design Review
Prototype Review
Go-to-Market Strategy
Prelines
Brand Execution & Post-Season Review
Organizing the Initiative
Questions to consider.
Prior to the Change-the-Game proposal for global women’s fitness, how would you describe Nike’s strategy in the women’s market? What important lessons had been learned through these efforts to help shape the Change-the-Game proposal?
Questions to consider.
Describe the new strategy for global women’s fitness proposed by the Change-the-Game proposal.
Questions to consider.
What were the greatest internal and external barriers facing the team in implementing the new strategy? In what ways did they manage these challenges well? What other recommendations would you make?
Questions to consider.
How would Nike’s latest reorganization potentially help the global women’s fitness team moving forward?
Questions to consider.
What are the potential risks and opportunities in newly emerging economies of the world?
The She-conomy
Where is Nike in 2003?
91% of women say advertisers don't understand them.
85% of consumer purchases come from women (FastCompany).
Women spend $7 Trillion annually, over half of the United States GDP
Yet NIKE does not have an effective marketing strategy for women.
Male Dominated Culture
cohesive/ multi-facted
Marketing after Change the Game
non cohesive
consumer oriented
product oriented
cohesive/ multi-facted
consumer oriented
non cohesive
product oriented
Prior to changing the game plan
After changing the game plan
Product Oriented
Financing
Placement within company
Hiring
Women's division had to demonstrate huge change and profitability for Nike to allocate the minimum amount of resources to them.
Through becoming consumer-oriented, Nike was able to continue to grow it's business by breaking it down into smaller pieces
Nike is "creatively-destructing" itself as it begins to abandon its established internal operating structure and re-thinking how to manage the different divisions "sans" the product-driven strategy
Creative-Destruction 101
How to target consumers by being sport-specific but also considering cultural differentiations of how each sport is perceived
Nike
Nike
Lulu Lemon
Consumer
Nike needed to figure out what she wanted
Micro-segmentation approach
Values/ Personality/Character
Substantiators
"Reasons-to-Believe in Nike"
Points-of-parity
Brand Mantra
Points-of-difference
Executional Properties/Visual Indentity
"Sweat Beauty"
"I'm an Athlete"
"Find Your Greatness"
"Just Do It"
Top of the line athletic gear
Performance driven
Women's initiative
Sport specific, within within a global enterprise that has multi-faceted divisions
Culturally-conscientious,
G.L.O.B.A.L
Nike "swoosh"
Inspirational advertisements, attempts to appeal to a wide variety of consumers
Inspirational
In style -- sets the style for the season
Continuously reinventing the brand (ie: creating the women's division)
Strength
Ingenuity
Vision
Not just for sport, but a
L.I.F.E.S.T.Y.L.E
Anyone can be an athlete while wearing Nike
Women's apparel: designed for women, by women
Creating a sense of community for women
Female Empowerment through Sport
Sweaty Beauty Campaign -- targets mid-20s, college students

Nike Women's Marathon/Half-Marathon discounts for college students to encourage health and fitness

NikeTown - a place for women to shop and to socialize,bringing women from all backgrounds together through Sport
What is Nike Doing Now?
Full transcript