Group 04 : Project Of Entrepreneurship

Even Semester 2023/2024

Lecturer: Amalia Julianti

“NIKE, Inc.”

Completed By :

1. Fatimah Az Zahra / 06
2. Nursyifa Elmira Syahla / 13
3. Zakaria Muttaqin Aditama / 17

ENGLISH FOR BUSINESS AND PROFESSIONAL COMMUNICATION

BUSINESS ADMINISTRATION DEPARTMENT
STATE POLYTECHNIC OF MALANG
2024
 NIKE, Inc.

 About The Company.

NIKE, Inc. is a team of the Nike, Jordan and Converse brands driven by a shared purpose to leave an
enduring impact. With a global footprint, culture of innovation and team-first mentality, we take
action to create a future of continual progress for athletes, sport and our world.

Our purpose is to move the world forward through the power of sport. Worldwide, we're leveling the
playing field, doing our part to protect our collective playground and expanding access to sport for
everyone.

Our commitments are that we've created 29 ambitious corporate targets to guide our purpose-driven
efforts from 2020 through 2025, focused in four distinct areas.

1. A Brief History Of NIKE, Inc.

Nike was first founded as “Blue Ribbon Sports” in January 1964 by Phil Knight, a student at the
University of Oregon and track athlete, along with his coach Bill Bowerman. The company was
officially rebranded as Nike in May 1971, which is the Goddess of Victory in Greek mythology.

Headquartered in Beaverton, Oregon, Nike is one of the most well-succeed sports brands globally,
manufacturing shoes and sportswear, but the story behind its foundation is that, before that, Adidas
and Puma — both of them German brands — completely dominated the sneakers market, in every
single sport.

So, Knight decided to introduce cheap, but high-quality running shoes, and he achieved it through a
partnership with Onitsuka Tiger (now known as Asics), a Japanese running shoes company, as its U.S.
distributor.
In the ’70s, the partnership between Blue Ribbon Sports and Onitsuka collapsed, so Knight decided it
was time for its own line of footwear. The company was relabeled as Nike, and the worldwide-
famous swoosh design was first used in 1971.

After that, Nike thoroughly conquered the sneakers market of sports footwear. Some of its main
achievements include Michael Jordan’s signature footwear, the Air Jordan (1984), as well as
renowned maketing campaign slogans, such as “There is no finish line” (1977) and “Just do it”
(1988). Nowadays, it dominates the global sports market, with an impressive 38% of the market share.

2. NIKE, Inc.’s Vision And Mission.

Vision : “To do everything possible to expand human potential.”
Mission : “To bring inspiration and innovation to every athlete in the world.”

3. Take A Glance At Our Company.

- 43% of NIKE’s leadership positions are held by women.
- 78% renewable energy in owned or operated facilities, up from 48% in FY20.
- $97.7M invested in NIKE, Inc.'s fiscal year 2021 to drive positive impact in communities
around the world.

4. NIKE, Inc.’s Headquarters.

Regional operations for the Americas, Asia-Pacific and United States are located at Nike's World
Headquarters location.
- Nike World Headquarters
One Bowerman Drive
Beaverton, OR 97005
Phone: 1-503-671-6453
7:30 a.m. - 5:30 p.m. PT, Monday - Friday (except holidays).

- Nike European Headquarters

Colosseum 1
1213 NL Hilversum
The Netherlands
Phone: +31 35 6266453

- Nike Greater China Headquarters

No. 99, Jiangwancheng Road
Yangpu District
Shanghai 200438
Phone: +86-21-52882828

5. FY23 NIKE, Inc. Impact Report.

Through the Power of Community, NIKE, Inc. Advances Toward a Better World for All
We want to help create an inclusive, equitable, diverse and sustainable world for all athletes, and our
science-based targets hold us accountable to that vision.

6. NIKE, Inc.’s Focus Areas.

Our purpose comes to life through key priorities: We build diverse, equitable, and inclusive teams and
champion a transparent, responsible supply chain so people can thrive. We create opportunities for
kids and communities to access resources so they can excel. And we innovate and scale more
sustainable solutions to help protect our planet.

 Organization Structure.

1. Organizational Structure Characteristics.

Nike Inc.'s organizational framework is intricately designed to address the diverse requirements of
local markets, acknowledging the differences in consumer preferences influenced by factors such as
sports culture and climate. Through the adoption of regionalization, Nike strategically aligns its
operations to effectively meet customer demands, as evidenced by its customized marketing strategies
and the establishment of NikeTown outlets. This adaptability within its structure, combined with a
strong organizational ethos, strengthens Nike's position against rivals like Adidas, ASICS, Puma, and
Under Armour, enabling it to confront market obstacles and uphold its competitive edge. By
seamlessly integrating its structure with marketing endeavors, Nike showcases how synchronization
of regional subtleties can propel business triumph in the dynamic realm of the athletic industry.

2. Leader Of Nike, Inc.

– Background Information In General.

Mark Parker (born October 21, 1955) is an American businessman. He is the executive chairman of
Nike, Inc. He was named the third CEO of the company in 2006 and was president and CEO until 13
January 2020. Since April 3, 2023, he has been chairman of The Walt Disney Company.

Parker was born in Poughkeepsie, New York. He graduated from Westhill High School in Stamford,
Connecticut and later earned his bachelor's degree in Political Science at Penn State University in
1977.

Parker joined Nike in 1979 as a footwear designer based in its R&D facility in Exeter, New
Hampshire. He became Division Vice President in charge of development in 1987, Corporate Vice
President in 1989, General Manager in 1993, and Vice President of Global Footwear in 1998. Prior to
becoming vice president of Nike, he was co-president (with Charlie Denson) of the Nike brand
beginning in March 2001. After 10 years of work, Parker and his team launched the first "Green
Shoe" that adheres to the principles of sustainability.

While CEO of Nike in 2012, Parker earned a total compensation of $15,425,608, which included a
base salary of $1,609,615, a cash bonus of $594,190, stocks granted of $3,500,087, options granted of
$4,199,250, and non-equity incentive plan compensation listed at $5,522,466. After being promoted
to Chairman in 2016, Parker's compensation tripled to over $47.6 million - $33.5 million of which
came from stock rewards.

In 2015, Parker was named Fortune's Businessperson of the year. It was announced in June 2015 that
Mark Parker is replacing Phil Knight as company chairman of Nike in 2016.

In 2016, he ranked 14th in the New York Times' list of highest paid CEOs with an annual paycheck of
47.6 million. Parker was elected onto Walt Disney's board of directors early 2016.
In October 2019, Parker announced he would step down as Nike's CEO and become executive
chairman of the company effective January 13, 2020. In January 2023, he was named chairman of the
Walt Disney Company, succeeding Susan Arnold.

– Background Information As Executive Chairman in NIKE, Inc.

Mark Parker served as NIKE, Inc. Chairman, President & CEO for 14 years, Chairman for four years,
and continues to serve as Executive Chairman. Mark joined Nike in 1979 as one of the company’s
first footwear designers and has been at the center of Nike innovation ever since. He has brought
innovative concepts and engineering expertise into roles such as VP, Consumer Product Marketing;
VP, Global Footwear; and Co-President of the Nike Brand. Mark’s focus on innovation led the way
for Nike Air and other industry-changing breakthroughs in product design. Mark serves on the Board
of Directors for The Walt Disney Company and received a bachelor’s degree in political science from
Penn State.

3. Characteristics Of The Leader.

Always surrounded by an eclectic mix of contemporary art and sculpture (including lots of miniatures
of Nike shoes), Parker believes in art, not only for personal pleasure but as an aid to his designs,
achieving a view of world culture.

Parker describes himself as “…inspired by visual stimulation.” He equates his managerial style to
being like an editor. He focuses his process on helping his subordinates hone their ideas. He also
hones and sharpens his own words and ideas as he expresses them.

His characteristics can be summarize to Participative Techniques, Majority-rule Decision Making,

Performing well with or without a leader present, Positive Feelings > Hostility

4. Leadership.
What is Mark Parker’s famous leadership style? A Thoughtful and Demanding Leader. Nike
Chairman Phil Knight describes current CEO Mark Parker as having a “thoughtful but demanding
leadership style. As an introverted CEO, he is something of an oddity in the world of headline-
grabbing CEOs. He takes a meticulous approach to product development known as “design
thinking.” He describes his leadership style as an “edit and amplify” approach.

At Nike, Parker uses different leadership approaches, depending on what circumstances demand.
Sometimes, he says, you need to go hard and fast. Top down leadership can make that happen. Ideas
may come from the bottom but the direction and support can be top-down. Parker looks for ideas from
the bottom. He walks the halls at Nike’s facilities and sometimes sees things that bring possibilities to
mind.

5. Job description.

Position : Various Roles within Nike (e.g., Retail Sales Associate, Designer, Marketing Manager,
Software Engineer, etc.)

Overview : Nike offers a wide range of employment opportunities across different departments and
functions. The job description varies greatly depending on the specific role and responsibilities within
the company.

General Job Descriptions For Common Roles At Nike:

1. Retail Sales Associate:

- Assist customers in finding products and providing excellent customer service.
- Maintain store appearance and organization.
- Process transactions and handle cash or card payments.
- Stay informed about Nike products and promotions.
2. Designer:
- Create and develop innovative designs for footwear, apparel, or accessories.
- Collaborate with product teams to ensure designs meet market needs and brand
standards.
- Use design software and tools to develop sketches, prototypes, and presentations.
3. Marketing Manager:
- Develop and execute marketing campaigns to promote Nike products.
- Analyze market trends and consumer insights to drive marketing strategies.
- Collaborate with cross-functional teams including creative, product, and sales teams.
4. Software Engineer:
- Develop and maintain software applications and systems for Nike's digital platforms.
- Collaborate with other engineers and product teams to deliver high-quality software
solutions.
- Write clean, scalable code and conduct code reviews.

Key Skills And Qualifications :

- Strong passion for sports and the Nike brand.

- Relevant education and experience based on the specific job role (e.g., retail experience for
sales roles, design portfolio for design roles, technical skills for engineering roles).
 - Excellent communication and teamwork skills.
- Ability to adapt to a fast-paced and dynamic work environment.
- Willingness to learn and grow within the company.

Some Additional Details :

1. Retail Sales Associate :

- Customer Service: Engage with customers, understand their needs, and provide
assistance in selecting products.
- Product Knowledge: Stay informed about Nike's products, including features,
benefits, and technologies.
- Visual Merchandising: Assist in maintaining attractive displays and ensure the store
is visually appealing.
- Inventory Management: Help manage stock levels, including restocking shelves and
conducting inventory checks.
- Cash Handling: Process sales transactions accurately and efficiently.
2. Designer :
- Conceptualization: Develop concepts and sketches for new footwear, apparel, or
accessories.
- Collaboration: Work closely with cross-functional teams, including product
developers and marketers.
- Prototyping: Create prototypes and samples to test designs and functionalities.
- Trend Analysis: Stay updated with fashion trends, market preferences, and competitor
offerings.
- Technical Skills: Proficiency in design software such as Adobe Illustrator, Photoshop,
or similar tools.
3. Marketing Manager :
- Campaign Planning: Strategize and plan marketing campaigns to drive brand
awareness and product sales.
- Digital Marketing: Utilize digital platforms and social media channels effectively.
- Analytics and Reporting: Analyze campaign performance metrics and consumer data
to optimize strategies.
- Brand Management: Uphold and promote Nike's brand identity and values.
- Partnerships and Sponsorships: Collaborate with athletes, influencers, and partners
for promotional activities.
4. Software Engineer :
 - Software Development: Design, develop, and maintain software applications for web
and mobile platforms.
- Agile Practices: Work in agile teams, participating in sprints, and adhering to
development timelines.
- Quality Assurance: Write automated tests and ensure software quality through
rigorous testing.
- Cloud Services: Leverage cloud technologies for scalable and reliable solutions.
- Continuous Learning: Stay updated with the latest technologies and best practices in
software development.

 Nike’s BMC (Business Model Canvas).

 Nike’s SWOT.
1. Strengths.
- Strong Brand Equity: Nike's brand is not only highly recognizable but also holds significant
commercial value. This is thanks to its solid brand loyalty, widespread awareness, and
positive brand associations, particularly in areas like innovation and social progress.
- Dominant Market Share: Nike commands a substantial portion of the market, especially in the
U.S., outperforming competitors like Adidas and Puma both in revenue and sales. Its
consistent revenue growth, reaching $46.71 billion in 2022, underscores its market strength.
- Efficient Low-Cost Manufacturing: By outsourcing production to countries with favorable
labor costs, Nike maintains profitability. It also invests in technologies to streamline
manufacturing processes, keeping costs low and quality high.
- Innovative Marketing: Nike's marketing prowess is evident in its iconic campaigns, celebrity
endorsements, and adept use of social media. These efforts have cemented its position as a
leader in sports apparel, with a brand value of $33 billion in 2022.
- Iconic Celebrity Endorsements: Leveraging famous athletes and personalities like Michael
Jordan and Cristiano Ronaldo has bolstered Nike's brand image and product sales,
exemplified by the hugely successful Air Jordan line.
- Diverse Brand Portfolio: Beyond its flagship brand, Nike Inc. owns successful subsidiary
brands like Converse and Jordan, each catering to distinct markets while benefiting from
Nike's overarching strategies.
- Direct-to-Consumer Strategy: By focusing on direct sales through e-commerce and apps,
Nike gains greater control over pricing, customer experience, and profit margins, reducing
reliance on traditional retail outlets.
- Robust R&D: Nike's investment in research and development ensures it stays ahead in
innovation, driving advancements in sports apparel and equipment and maintaining its appeal
to athletes and consumers alike.
- High Market Valuation: As the most valuable sportswear company globally, Nike enjoys
investor confidence, low-cost financing, and heightened consumer trust, fostering further
 growth and market dominance.

2. Weaknesses.
- Controversial Labor Practices: Reports of unethical labor practices, including poor working
conditions and low wages, have tarnished Nike's reputation. Despite efforts to address these
issues, concerns persist.
- Over-dependence on the U.S. Market: While Nike is a global brand, a significant portion of
its revenue comes from the U.S., making it vulnerable to U.S. market fluctuations.
- Worrying Financial Indicators: Nike's increasing long-term debt and declining profit margins
raise concerns about its financial stability, especially compared to competitors like Adidas.
- Unfavorable Relationship With Retailers: Reliance on third-party retailers exposes Nike to
lower profit margins and counterfeit product sales, impacting its brand image.
- Over-dependence on Footwear Sales: While Nike offers a variety of products, a large portion
of its revenue comes from footwear sales, making it vulnerable to supply chain issues or shifts
in consumer preferences.
- Cultivation of Luxury Brand Image: By collaborating with high-fashion brands and offering
expensive designer products, Nike risks alienating its traditional customer base while
attracting wealthier clientele.
- Reduced Quality Control: Outsourcing manufacturing can compromise product quality and
increase the risk of counterfeit products flooding the market, posing a threat to Nike's brand
integrity

3. Opportunities.
- Expanding into New Markets: Nike can grow globally by entering untapped markets in
Europe, Africa, and Asia, reducing dependence on North America. They could also explore
segments like women's sportswear, opening avenues for significant revenue growth.
- Diversifying Product Range: Investing in sports technology like wearable gear and promoting
non-footwear products can broaden Nike's appeal. Utilizing dedicated outlets and retail
partners can help market less popular items such as sports equipment.
- Embracing Online Innovation: Integrating artificial intelligence into e-commerce, as seen in
their acquisition of Celect, can enhance personalized shopping experiences. Additionally,
venturing into the Metaverse, demonstrated by acquiring RTFKT, offers new avenues for
virtual product sales.
- Combating Counterfeiting: Nike is actively combating counterfeit products through
 collaboration with law enforcement, user reporting platforms, and promoting direct-to-
consumer sales. Partnerships with e-commerce giants like Amazon help address counterfeit
challenges.
- Committing to Sustainability: Responding to growing environmental concerns, Nike
promotes sustainability through initiatives like using recycled materials and encouraging
apparel recycling and footwear refurbishment.

4. Threats.
- Counterfeit Nike Products: Counterfeit items undermine brand trust and lead to revenue
losses. Nike, being one of the most counterfeited brands globally, suffers from both image
damage and financial setbacks.
- Competition From Other Sports Brands: While Nike leads the sportswear market, competitors
like Adidas pose a threat with significant market share and faster growth rates. Adidas'
strategies, like celebrity endorsements, challenge Nike's dominance.
- High Profile Patent Disputes: Legal battles with competitors, particularly Adidas, over patent
infringements, impact brand reputation and highlight intellectual property issues within the
industry.
- International Trade Tensions: Nike's global presence exposes it to trade complexities,
especially amidst tensions like those between the US and China, affecting its Asian market
and overall operations.
- Animal Abuse Scandal: Nike's use of kangaroo skin for products raises concerns about animal
rights, prompting calls for alternative materials and potentially damaging its socially
responsible image.
- Competitors' Advertising Investments: Despite Nike's substantial advertising spending,
competitors like Adidas allocate a higher percentage of revenue to advertising, indicating
intensified efforts to gain market share. Nike must match these efforts to maintain its
competitive edge.

 Financial report.
 NIKE, Inc.

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

THREE MONTHS ENDED % NINE MONTHS ENDED %

(In millions, 2/29/2024 2/28/2023 Change 2/29/2024 2/28/2023 Change

except per share
data)

Revenues $12.249 $12.390 0% $38,756 $38,392 1%

Cost of sales 6,867 7,019 -2% 21,503 21,695 -1%

Gross profit 5,562 5,371 4% 17,253 16,697 3%

Gross margin 44.8% 43.3% 44.5% 43.5%

Demand creation 1,011 923 10% 3,194 2,968 8%

expense

Operating 3,215 6% 9,294 9,035 3%

overhead expense

Total selling and 4,226 3,959 7% 12,488 12,003 4%

administrative
expense

% of revenues 34.0% 32.0% 32.2% 31.3%

Interest expense (52) (7) — (108) (22) —

(income), net

Other (income) (16) (58) — (101) (283) —

expense, net

Income before 1,404 1,477 -5% 4,974 4,955 0%

income taxes

Income tax 232 237 -2% 774 916 -16%

expense

Effective tax rate 16.5% 16.0% 15.6% 18.5%

NET INCOME $ 1,172 $ 1,240 -5% $ 4,200 $ 4,039 4%

 Earnings per
common share:

Basic $ 0.77 $ 0.80 -4% $ 2.76 $ 2.59 7%

Diluted $ 0.77 $ 0.79 -3% $ 2.74 $ 2.57 7%

Weighted
average common
shares
outstanding:

Basic 1,513.2 1,543.8 1,520.8 1,556.7

Diluted 1,526.5 1,564.8 1,534.0 1,574.4

Dividends $ 0.370 $ 0.340 $ 1.080 $ 0.985

declared per
common share

NIKE, Inc. reported its fiscal 2024 third-quarter results, with revenues slightly up at $12.4 billion. The
increase was driven by growth in NIKE Direct revenues and wholesale revenues, partially offset by a
decrease in NIKE Brand Digital sales. Gross margin increased to 44.8%, while selling and
administrative expenses rose by 7%. Diluted earnings per share were $0.77, including restructuring
charges. Excluding these charges, earnings per share would have been $0.98. NIKE's CEO and CFO
highlighted efforts to drive growth and maximize the impact of new innovations. Despite challenges
in certain regions, NIKE continues to invest in growth and has a strong track record of returning value
to shareholders through dividends and share repurchases.

 NIKE, Inc. STP in Marketing.

1. Segmentation
a. Demographics : Nike targets consumers across different age groups, genders,
income levels, and geographic locations. For instance, it has products tailored for
 men, women, and children.
b. Psychographics : Nike appeals to consumers with diverse lifestyles, attitudes, and
behaviors. This includes athletes, fitness enthusiasts, fashion-conscious individuals,
and those seeking performance-oriented gear.
c. Behavioral Segmentation : Nike categorizes consumers based on their purchasing
behaviors, such as frequency of purchase, loyalty, and benefits sought. It targets both
occasional buyers and brand loyalists.
2. Targeting
a. Athletes : Nike has a strong focus on professional athletes and sports teams,
providing them with high-performance gear and sponsorships. This strategy helps
Nike establish credibility and appeal to aspiring athletes and sports enthusiasts.
b. Active Lifestyle Consumers : Nike targets individuals who engage in physical
activities and prioritize health and fitness. These consumers seek comfortable and
stylish activewear for various activities, from running and training to casual wear.
c. Fashion-Conscious Consumers : Nike positions itself as a lifestyle brand, appealing
to consumers who value fashion trends and streetwear culture. Collaborations with
designers and celebrities, along with limited-edition releases, attract fashion-forward
consumers.
3. Positioning
a. Performance : Nike emphasizes the technical superiority of its products, highlighting
features such as advanced cushioning, lightweight materials, and superior traction.
This appeals to athletes and individuals seeking high-performance gear.
b. Innovation : Nike is known for its continuous innovation in product design and
technology. It leverages cutting-edge materials and manufacturing techniques to
enhance performance and comfort, setting itself apart from competitors.
c. Authenticity : Nike's association with professional athletes and sports sponsorships
reinforces its authenticity and credibility in the athletic community. By aligning with
top athletes and teams, Nike portrays itself as a brand trusted by professionals,
inspiring consumers to pursue their athletic goals with confidence.
d. Style : Nike's focus on design aesthetics and contemporary trends positions it as a
fashionable brand. Its iconic logo, trendy designs, and collaborations with influencers
and designers contribute to its appeal among fashion-conscious consumers.

 NIKE, Inc. 4P’s in Marketing.

1. Product
 a. Nike offers a wide range of athletic footwear, apparel, equipment, and accessories
catering to various sports and activities.
b. The company emphasizes innovation and performance in its products, often
incorporating advanced technologies and materials to enhance athletic performance.
c. Nike collaborates with top athletes and designers to create high-quality, stylish
products that resonate with consumers.
2. Place
a. Nike has an extensive global presence, with products available in numerous retail
channels, including company-owned stores, online retail platforms, and third-party
retailers.
b. The company strategically selects locations for its branded retail stores, often
focusing on high-traffic areas in key cities and shopping districts.
c. Nike also distributes its products through partnerships with sporting goods retailers,
department stores, and online marketplaces, ensuring broad accessibility to
consumers worldwide.
3. Price
a. Nike adopts a premium pricing strategy, positioning itself as a high-end brand in the
athletic apparel and footwear market.
b. Despite the premium pricing, Nike offers products at different price points to cater to
various customer segments. For example, it has premium lines like Nike Air and
NikeLab, as well as more affordable options like Nike's Dri-FIT clothing line.
c. The company occasionally uses price skimming strategies for new product releases,
initially setting high prices to capitalize on early adopters before gradually lowering
prices to reach broader markets.
4. Promotion
a. The company invests heavily in sponsorship deals with professional athletes, sports
teams, and major sporting events, increasing brand visibility and association with
elite athletic performance.
b. Nike leverages various marketing channels, including television, print media, digital
advertising, social media, and experiential marketing events, to engage with
consumers and drive brand awareness.

Adidas as Competitor
  Adidas’s Profile.
1. Adidas’s History.

This is the story of Adidas, from its humble beginnings in a Bavarian washroom to becoming a global
powerhouse. Along the way, they faced challenges and celebrated victories, always striving to provide
the best for athletes. Adi Dassler's vision and dedication propelled the company forward, from early
successes in athletics to groundbreaking innovations like the Franz Beckenbauer tracksuit and the
TELSTAR ball for FIFA. The company weathered the loss of its founder and faced financial struggles
before a resurgence under new leadership, embracing marketing and innovation. Partnerships,
acquisitions, and a focus on athletes and consumers drove adidas to expand into new markets and
segments, from lifestyle to outdoor. The company's ethos evolved with time, always rooted in sport
but adapting to changing trends and consumer demands. With a digital vision and a commitment to
sustainability, Adidas continues to shape the future of sportswear and lifestyle, embracing innovation
and putting the consumer at the heart of everything they do.

2. Key Facts of Adidas.

3. Vission, Mission, and Purpose of Adidas.

Vision : through sport, we have the power to change lives.

Mision : to be the best sports brand in the world.

Purpose : ‘Through sport, we have the power to change lives,’ guides the way we run our company,
how we work with our partners, how we create our products, and how we engage with our consumers.
We will always strive to expand the boundaries of human possibility, to include and unite people in
sport, and to create a more sustainable world.

4. Adidas Strategy.

With sport playing an increasingly important role in more and more people’s lives, both on and off the
field of play, we operate in a highly attractive industry. Based on the authenticity of the adidas brand
and our constant efforts to understand our consumers’ needs, we aim at capitalizing on the
acceleration of favorable long-term structural trends by pushing the boundaries of products,
experiences, and services.

Since the creation and launch of our ‘Own the Game’ strategy, the economic and political
environment we operate in has significantly changed. Macroeconomic challenges as well as
geopolitical tensions have had an adverse impact on our business, our consumers, and business
partners. Paving the way for a restart, Bjørn Gulden joined adidas as new CEO in January 2023. In
this context, we are currently conducting a thorough strategic review, which also includes the
financial ambition for 2025.

 Adidas’s in Marketing
 Adidas STP
1. Segmentation
a. Demographic Segmentation: Adidas caters to consumers of all ages, genders,
income levels, and geographic locations. For instance, it offers a wide range of
products for men, women, and children, as well as specialized lines for different
sports and activities.
b. Psychographic Segmentation: Adidas targets individuals with an active lifestyle
who value sports, fitness, and fashion. For example, it markets its products as suitable
for those who prioritize both performance and style, positioning itself as a brand that
understands and meets the needs of modern consumers.
c. Behavioral Segmentation: Adidas segments its market based on consumer behavior,
targeting both performance-driven athletes and lifestyle-oriented consumers. For
instance, it offers premium sports gear and footwear for professional athletes, while
 also providing fashionable and functional sportswear for everyday use.
2. Targeting
a. Performance Athletes: Adidas targets elite athletes who demand top-quality
products to enhance their performance. For example, it collaborates with professional
athletes like Lionel Messi, James Harden, and Damian Lillard, creating signature
lines of footwear and apparel tailored to their specific needs and preferences.
b. Lifestyle Consumers: Adidas targets consumers who seek stylish and comfortable
sportswear for everyday use. For example, it collaborates with fashion designers and
celebrities to create limited-edition collections that appeal to fashion-forward
consumers, such as its collaborations with Kanye West (Yeezy) and Stella
McCartney.
c. Youth Market: Adidas actively targets younger consumers through social media
marketing, influencer partnerships, and youth-oriented events. For example, it
engages with Generation Z through platforms like Instagram and Snapchat,
leveraging popular influencers and creating viral marketing campaigns to capture the
attention of young consumers.
3. Positioning
a. Performance and Innovation: Adidas positions itself as a leader in performance
sports gear by highlighting its innovative technologies and advanced features. For
example, it promotes products like the Adidas UltraBoost running shoes, which
feature responsive Boost cushioning for maximum energy return and comfort during
workouts.
b. Style and Fashion: Adidas positions itself as a fashionable and trendy brand by
creating stylish and versatile sportswear that transcends the gym. For example, it
promotes lifestyle collections like Adidas Originals, which feature iconic designs and
streetwear-inspired apparel that appeal to fashion-conscious consumers.
c. Heritage and Authenticity: Adidas positions itself as a brand with a rich history and
heritage in sports and athleticism. For example, it celebrates its legacy through retro-
inspired collections like Adidas Classics, which pay homage to iconic designs from
the brand's archives while incorporating modern updates for contemporary
consumers.
 Adidas 7P’s
1. Product : Adidas UltraBoost running shoes are designed with responsive cushioning and a
lightweight feel, making them popular among runners for their performance and comfort.
2. Price : Adidas offers a range of pricing options, from premium products like limited-edition
sneakers priced at $180-$250 to more affordable options like basic training t-shirts priced at
$20-$30.
3. Place : Adidas strategically places its retail stores in high-traffic areas, such as malls and
urban centers. For instance, its flagship store on Fifth Avenue in New York City attracts both
tourists and locals.
4. Promotion : Adidas frequently collaborates with celebrities and athletes for promotional
campaigns. For example, its partnership with Beyoncé for the Ivy Park collection generated
significant buzz and media attention.
5. People : Adidas invests in employee training to ensure knowledgeable and friendly staff in its
retail stores. Employees are trained to provide personalized recommendations and assistance
to customers.
6. Process : Adidas uses innovative manufacturing processes, such as Adidas Futurecraft 4D
technology, which utilizes 3D printing to create customized midsoles for shoes, enhancing
both performance and sustainability.
7. Physical Evidence : Adidas stores are designed with sleek, modern interiors that reflect the
brand's image of innovation and style. The layout and decor create an immersive shopping
experience for customers, reinforcing the brand's identity.
References :

Welcome to NIKE, Inc.

Nike Inc. Organizational Structure Characteristics (Analysis) - Panmore Institute

A Participatory Leadership Style: Nike's CEO Mark Parker.

Nike SWOT Analysis

NIKE, Inc. Reports Fiscal 2024 Third Quarter Results

Business Model Canvas Nike Business Model BMC SS