Nike
Suneet ,sunny and Hemdeep
India Global marketing
Consumer Environment
Economic environment
North American Commercial video
India is likely to be the world's largest consumer market by 2030, according to a report by global consultancy . The country’s retail market is projected to touch US$ 1.3 trillion by 2020, as per Mr KV Thomas, India’s Consumer Affairs Minister. With the online medium of retail gaining more and more acceptance, there is a tremendous growth opportunity for companies (international and domestic) in the retail and fast-moving consumer goods (FMCG) segment. Economic reforms together with rapid urbanisation have brought about big opportunities for investment and growth prospects in India. "By 2030, India is likely to surpass both countries (China and the US) with an aggregated consumer spend of nearly US$ 13 trillion,". whereas there could be some issues like culture ,language and needs that companies have to consider about .
The Economy of India is the 10th-largest in the world by nominal GDP and the third-largest by purchasing power parity (PPP). India is one of the fastest developing Economic Superpower with potential to become world third largest economy (Nominal) by 2020.. India is the 16th-largest exporter and the 8th-largest importer in the world. India falls into the category of a country with an industrializing economy, with its skilled and semi-skilled work force and growing manufacturing base.
Competitive environment
Indian Commercial video
Is market worth pursuing ?
India, the fourth largest economy in the world according to purchasing power parity, presents lucrative and diverse opportunities for western companies with the right products, services, and commitment. American exports to India exceeded $22 billion in 2012. This means that India bought more American goods and services than Israel and Italy did. India’s growing $1.8 trillion economy demands American and European products and services for its consumers, industry and government. India’s requirements for equipment and services for major sectors such as consumer goods, medical devices, energy, defense and security, environment, healthcare, high-tech, infrastructure, and transportation exceeds hundreds of billions of dollars in the mid-term as the Indian economy further globalizes and expands. Now is the time for many Western companies to enter and expand in the rising Indian market. In conclusion with such high consumer demand india's market is worth pursuing your business.
India has dropped a place in the latest global ranking of countries' competitiveness, launched by the Global Competitiveness Report of the World Economic Forum (WEF). India’s competitiveness, on a continuous decline since 2009, slipped to 60th in the Global Competitiveness Index (GCI) 2013-14 (total 148 economies). overall India is a orderly market agreement which shares market by eliminating trade barrier between other countries
Direct Investment
Nike is a direct investment into production or business in a country by an individual or company of another country, either by buying a company in the target country or by expanding operations of an existing business in that country. Foreign direct investment is in contrast to portfolio investment which is a passive investment in the securities of another country such as stocks and bonds.
Technological environment
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In India, IT sector is developing with 35% growth rate, India is second country after China who is using internet at large scale for e-commerce, e-education, e-accounting and trade. Indian govt. has established 500 technological institutes for providing education to Indian students. It has also established 1080 research institutes. In these institutes major names like space research centre, medical research centre and agricultural research centre have developed India technically.
Nike is an American multinational corporation that is engaged in the design, development, manufacturing and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area. It is one of the world's largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. The brand alone is valued at $10.7 billion, making it the most valuable brand among sports businesses.
Legal environment
Marketing Strategies for Nike in India
As in any part of the world, political influence is highly essential to start a business in India. India is the biggest democracy in the world with multi-party political system. In population, India is second to China, with nearly 1200 million people. This is the most important consumer market in the world.Although India has steadily opened up its economy, its tariffs continue to be high when compared with other countries, and its investment norms are still restrictive.
Nike Started its operation in India in 1996, with an investment of 175 Million dollars , of which only 25% was a direct investment and the rest was paid by a Delhi based trading firm Sieera.
Nike built its promotion not only through endorsements but also through sponsoring local and national cricket teams .
The Product innovations have been incorporated through localization and customization to meet the expectation of indian consumer market.
Nike prices its products a bit higher as compared to other companies such as Reebok due to its higher expenses ( nike paid 12 Million dollars for indian sports team to wear their merchandise in 2012 )
Whereas it comes to Distribution Nike rely on its manufacturers and trading company which supports Nike in India -Sieera
Political environment
Starting a business or import /export in India takes an average of 35 days, compared to the world average of 48 days. Obtaining a business license and closing a business can be very difficult. All businesses must contend with extensive federal and state regulation as well as an infamously slow bureaucracy. The overall freedom to start, operate, and close a business is significantly restricted by the national regulatory environment. Total government expenditures in India, including consumption and transfer payments, are low.