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Overview
Internet Sales
Channel
Internet Channel
Strategy
Retail vs e-tail
Competitive
Benchmarking
NIKE
Objective of Nike is
to Improve profit margins
Reduce inventories
Minimise price
markdowns
Right product to right
customer
Availability of assortment
on time
SALES MANAGEMENT, SECTION 2, GROUP 4
Overview
Internet Sales
Channel
Internet Channel
Strategy
Retail vs e-tail
Competitive
Benchmarking
DISTRIBUTION &SALES
MODEL
Sales growth at CAGR 10% in last 5 years
DTC revenues accounted for 20% of total
sales
Wholesalers
in U.S.
international
market
wholesalers
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Direct to
Consumer
(DTC)
factory retail
outlet
online
website
e-commerce
3rd party
websites
WEBSITE
Brand
divisions
Multibranded
outlets
category
specific
retailers-JD
Sports
Overview
Internet Sales
Channel
Internet Channel
Strategy
Retail vs e-tail
Competitive
Benchmarking
11/29/15
Overview
Internet Sales
Channel
Internet Channel
Strategy
Retail vs e-tail
Competitive
Benchmarking
SHARE OF INTERNET
CHANNEL TO SALES
Overview
Internet Sales
Channel
Internet Channel
Strategy
Retail vs e-tail
Competitive
Benchmarking
POINTS OF
DIFFERENTIATION
1. Mass to ME
2. Community building
through website and
social media
3. International ecommerce expansion is
part of Nikes growth
plan.
11/29/15
Overview
Internet Sales
Channel
Internet Channel
Strategy
Retail vs e-tail
Competitive
Benchmarking
Metrics of Consumers easily available Nike uses its NIKEid to capture personal details of customers in order to predict
future trends. online retail website integrates analytic softwares that track
customer behaviour.
Use of online marketing tools SEO and social media marketing is enhanced
Overview
Internet Sales
Channel
Internet Channel
Strategy
Retail vs e-tail
Competitive
Benchmarking
ADVERTISING/PROMO/PRICIN
G STRATEGY
Offline Promotion Strategyin-store promotion via Window
display, shelf talkers, mannequins,
category demarcation and retail
ambience
1. Nike Factory Outlet more
concentrated on value pricing and
volume based sales
11/29/15
Overview
Internet Sales
Channel
Internet Channel
Strategy
Retail vs e-tail
Competitive
Benchmarking
ADVERTISING/PROMO/PRICIN
G STRATEGY
11/29/15
Overview
Internet Sales
Channel
Internet Channel
Strategy
Retail vs e-tail
Competitive
Benchmarking
ADVERTISING/PROMO/PRICIN
G STRATEGY
11/29/15
10
Overview
Internet Sales
Channel
Internet Channel
Strategy
Retail vs e-tail
Competitive
Benchmarking
ADVERTISING/PROMO/PRICIN
G
STRATEGY
2. Further, Nike had used its own website to promote its Gift card package and
other innovations
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11
Overview
Internet Sales
Channel
Internet Channel
Strategy
Retail vs e-tail
Competitive
Benchmarking
ADVERTISING/PROMO/PRICIN
G STRATEGY
3. used e-commerce websites to declare sales promotions.
4. Nike uses sponsored ads for its e-commerce partners- Jabong, Amazon
and Snapdeal
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12
Overview
Internet Sales
Channel
Internet Channel
Strategy
Retail vs e-tail
Competitive
Benchmarking
ADVERTISING/PROMO/PRICIN
G
STRATEGY
5. Nike has created sub-brand webpages under its parent website
to showcase its premium brandsJordan and Hurley.
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13
Overview
Internet Sales
Channel
Internet Channel
Strategy
Retail vs e-tail
Competitive
Benchmarking
ADVANTAGES OF INTERNET
CHANNEL
1. DTC channels growth is driven by the strong online sales which is growing at
the rate of 50% quarterly. Nikes online sales channel is creating positive
disruption for companys overall revenue growth.
2. The Ecommerce platform is giving more cost advantage to the Nike as there is
no middleman involve and it is able to generate higher margins
compared to other channels.
3. This channel also involve direct involvement of the customers to the
companys new innovative products.
4. By increasing the use of Ecommerce, company is able to penetrate into the
wider range of territories and achieving width as well as depth of the sales.
5. One of the biggest advantage of increasing focus on online sales as it requires
less capital expenditure than the opening of new Brick Mortar store.
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Overview
Internet Sales
Channel
Internet Channel
Strategy
Retail vs e-tail
Competitive
Benchmarking
RETAIL VS E-TAIL
A. Disruptions to other channels:
Nike launched NIKEiD, an online service that will allow customers to create its own gear by
customizing colour, design and performance features.
Customers have to pay $170 extra to avail the facility. These customization also helping
Nike to collect the customer preference data which can further be incorporated into the
product designing and product innovations.
B. Competition With other Channel:
Nikes recent focus on digital initiatives suggest that, its revenue growth will tilt towards
the DTC sales channel and particularly from the online sales.
C. Sales Contribution by Internet Channel over a period of time:
It plans to grow its DTC segment sales by alloys 2.5 times in the next five years from $6.6
Billion in FY 2015 to $16 Billion in FY 2020. These growth will mainly come from the
companys penetration into the emerging market and here Ecommerce will play vital role.
Nike.com sales is expected to be key growth driver for DTC sales channel with $7 billion
revenue coming from the Ecommerce in FY 2016.
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Overview
Internet Sales
Channel
Internet Channel
Strategy
Retail vs e-tail
Competitive
Benchmarking
16
Overview
Internet Sales
Channel
Internet Channel
Strategy
Retail vs e-tail
Competitive
Benchmarking
COMPARISON
Sales through
online
Internet Portal Own dedicated portal plus third
Online
party portal
NIKEiD and Nike +
portal
Digital Newsroom strategy
Communities
Mobile App
Growth Plans
Opportunities
Communicatio
SNKRS App
Make $ 7 Billion revenue
Emerging Markets
All the sports website is integrated
n to Customer
Brand Identity
11/29/15
(Adidas Golf)
Every sport has different URL so
customer cannot access different
sports website from Adidas.com
SALES MANAGEMENT, SECTION 2, GROUP 4
17
Overview
Internet Sales
Channel
Internet Channel
Strategy
Retail vs e-tail
Competitive
Benchmarking
REFERENCES
http://marketrealist.com/2015/10/nikes-projecting-explosive-growth-retail-web-sales/
https://www.internetretailer.com/2014/12/19/web-sales-grow-65-nike
http://www.forbes.com/sites/greatspeculations/2015/07/09/how-nikeid-is-helping-nikes-push-forgreater-profits/
https://www.internetretailer.com/2013/10/21/nike-envisions-2-billion-web-sales-four-years
https://www.nibusinessinfo.co.uk/content/advantages-and-disadvantages-online-retail
http://www.businesstoday.in/magazine/lbs-case-study/nike-marketing-strategies-globalbrand/story/207237.html
http://www.siegelgale.com/nike-and-adidas-different-strategies-for-telling-their-brand-stories/
http://www.thedrum.com/news/2015/03/28/how-adidas-creating-new-recapture-its-winningstreak
http://www.fool.com/investing/general/2015/11/20/nike-plans-to-increase-online-sales-sixfoldwhy-th.aspx
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THANK
YOU
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