Nike Promotion
Another important factor in economy is the maturing market in athletic shoes. There is also a growing adverse demographic change in the marketplace brought about by the sweatshop expose that Nike has not overcome yet.
Effects to Nike's growth are also affected not only by domestic economy but also by the international economy. The continued weak Euro and Asian recession could potentially hurt
Nikes international sales and growth. Nike's extreme sports product line is seen as inferior quality compared to competitors and is hurting sales and brand image.
CUSTOMERS
In 1998, Americans spent $38 billion to buy over 1.1 billion pairs of shoes. Sporting Goods
Manufacturers Association revealed that athletic footwear makes up almost 35% of all footwear purchases.
The existing domestic industry focus is on casual and comfortable shoes. Demand is up for the "brown shoe" casual footwear with a comfortable and rugged design. This is because of the increasing number of workplaces allowing casual dress codes.
Multinational customers account for a large part of Nike's sales. In 1995, Nike's international operations accounted for 36.06 of its total revenues. The company believes that demands from international markets will increase in future.
Nike must cater to a large portion of the new generation that demands the latest trends and styles. Nike should take into account the changing US demographics due to the rising proportion of Hispanics, Asians, and African Americans. These groups have different preferences that Nike should be able to satisfy. Nike should identify the next generation of loyal customers and provide for their needs.
COMPETITION
Competition is very fierce due to the number of companies competing for sales. Lots of money goes to marketing and promotions using various channels to reach the young demographic group of consumers who spend the most money on Nike's products. Growth is slowing down in the athletic footwear industry. But new
Effects to Nike's growth are also affected not only by domestic economy but also by the international economy. The continued weak Euro and Asian recession could potentially hurt
Nikes international sales and growth. Nike's extreme sports product line is seen as inferior quality compared to competitors and is hurting sales and brand image.
CUSTOMERS
In 1998, Americans spent $38 billion to buy over 1.1 billion pairs of shoes. Sporting Goods
Manufacturers Association revealed that athletic footwear makes up almost 35% of all footwear purchases.
The existing domestic industry focus is on casual and comfortable shoes. Demand is up for the "brown shoe" casual footwear with a comfortable and rugged design. This is because of the increasing number of workplaces allowing casual dress codes.
Multinational customers account for a large part of Nike's sales. In 1995, Nike's international operations accounted for 36.06 of its total revenues. The company believes that demands from international markets will increase in future.
Nike must cater to a large portion of the new generation that demands the latest trends and styles. Nike should take into account the changing US demographics due to the rising proportion of Hispanics, Asians, and African Americans. These groups have different preferences that Nike should be able to satisfy. Nike should identify the next generation of loyal customers and provide for their needs.
COMPETITION
Competition is very fierce due to the number of companies competing for sales. Lots of money goes to marketing and promotions using various channels to reach the young demographic group of consumers who spend the most money on Nike's products. Growth is slowing down in the athletic footwear industry. But new