- 1.NIKE PROTON THE COMPRESSED APPAREL RANGEGroup 6 BM - A
2. PRODUCT DESCRIPTION
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- 100% Pure Cottonmanufactured under High Temperature and
Pressure Treatment
10 Seconds Compressed Ordinary status 3. LEVELS OF PRODUCT 4.
STRATEGIC FITARGUMENTS
- Nikes focus is on continuous worldwide expansion
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- Product diversification and development
- NIKE is now stretching the traditional boundaries of what it
considers sports and fitness.
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- Majority spending on fitness activities such as golf, aerobics
and biking, which are fueling the market is not intended for
athletic activities, but for comfort and fashion
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- A lot of people are now seeing working out as melding into the
rest of their lives
5. STRATEGIC FITARGUMENTS
- Nike announced the kick off of its annual grass root initiative
for football in India - the Manchester United Premier Cup (MUPC) -
India 2009
- Officially sponsoring the Indian Cricket teams kit
- NIKE is also in for selling IPL merchandise
6. STRATEGIC FIT CONCLUSION
- Let other companies worry about thetraditional
boundariesbetweensport and fashion.
- Nike has built its empire by transforming the technology and
design of its high performance sports gear into high fashion,
vastly expanding its pool of potential customers.
7. MARKET RESEARCH 8. MARKET RESEARCH
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- Objective 1: To understand the market trends of apparels in
India.
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- Published Reports (Secondary source)
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- Mensand womens apparel industry will increase at a CAGR of
14.86% and 17.79% respectively during 2008-10.
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- Branded apparel industry for men increasing at a CAGR of 24%
will cross Rs. 25000 crores by 2010.
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- Market for branded apparels is growing very fast in India.
9. MARKET RESEARCH
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- Objective 2: To determine the market acceptance of compressed
apparels in India.
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- Objective 3: Access which parameters of the product compressed
apparels would attract the customers the most.
10. MARKET RESEARCH DATA ANALYSIS
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- Around 35% of respondents travelled for a duration of more than
3 days. (10% for more than a week)
Around 45% of respondents spend in excess of Rs.1000 per month
for purchasing new apparels
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- More than 50% of respondents liked the idea of gifting designer
compressed apparels.
11. MARKET RESEARCH - RESULTS
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- The idea of gifting apparels in the shapes of Guitar, Balls,
Racquets or other designs appealed the most to the
respondents.
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- Considerable number of respondents spend in excess of Rs. 1000
for apparels which coupled with the fact that about72% of them
purchase atmost one apparel a month gives a substantial customer
base for the product.
12. SEGMENTATION, TARGETING, POSITIONING 13. SEGMENTS AND THEIR
ATTRACTIVENESS B2B (Promotional Gift Item) B2C(Sports )B2C
(Travelling Customers) B2C (High Income Group) Identifiable YES YES
YES YES Reachable HIGH MEDIUM MEDIUM HIGH Profitable HIGH HIGH HIGH
HIGH Responsive MEDIUM HIGH LOW MEDIUM Substantial HIGH LOW LOW
MEDIUM 14. TARGETING 15. POSITIONING B2C Customers B2B Customers
16. PROMOTIONAL CAMPAIGN 17. PHASE1
- A teaser campaign to generate curiosity about the product will
be launched.
- A print ad campaign with hoardings in tier 1 and 2 cities
.
- Ads in sports, fitness and lifestyle magazines.
- Popup and banner ads on popular sites.
18. WARNING!! YOUR CLOTHES ARE ABOUT TO SHRINK !! 19. 20.
PHASE2
- The actual launch of the product .
- The advertisements to focus more on creating awareness and
highlighting the benefits of the product.
- Celebrity sponsorship : Sreesanth, Christiano Ronaldo etc
- Surrogate marketing : Films, MTV, Channel V
- Advertisements in print media like Corporate and travel
magazines, In Flight magazines.
21. VALENTINESDAY FOOTBALLWORLDCUP IPL SPECIAL EVENTS 22.
NIKEID.COM
- Existing and upcoming product lines
- Customization through a digital designer software
- - Allow customers to create different designs which can be
saved in the users account or shared with other enthusiasts
online
- The designed wear could then be ordered online.
- An official blog encouraging consumers to post ideas, answer
surveys online about new products and give opinions on how existing
products can be improved.
23. B2BMARKETING
- A separate division handling B2B marketing
- Catalogues with appealing product images.
- Specially prepared pitches giving out a few sample designs
associated with the company.
24. MARKETING CHANNELS 25. MARKETING CHANNELS B2C 26. MARKETING
CHANNELS B2B 27. PROFITABILITY ANALYSIS 28. PRICING STRATEGY
- VALUE BASED PRICING METHOD
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- Normal Nike T-shirt costs >Rs. 700
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- Quality product with the added feature of convenience (Carriage
& Storage)
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- A Product offering which is innovative and new to Indian
Scenario
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- Convenience Offering : currently unavailable in alternate
products
29. PROFITABILITY FROM THE PROPOSAL
- Total Market for Branded Apparels in India is around 25000
crores
- Nike has a Market share of 15%
- Revenue from India is around 411 crores
30. EXPECTED PROFIT
- Price of the T shirt would be approx. Rs. 1000/-
- Total B2B Revenue would be 153 crores
- Total B2C Revenue would be 125 crores
- Net Profit of 37.5 crores would be earned from total revenue
from 278 crores
31. DEMAND ESTIMATE FOR PROTON 32. DEMAND ESTIMATE FOR PROTON
33. NIKE, INC. THE PROTON RANGE (IN CRORES) ESTIMATED PROFITABILITY
34. QUESTIONS?? 35. THANKYOU