NIKECONTENTSCONTENTSINTRODUCTIONOverviewOverviewExecutivesIncome StatementHistoty 1950’s When Nike breathed its first breath, it inhaled the spirit of two men 1960’s Founded on a handshake, $500 and mutual trust 1970’s The- birth of the Nike brand, and com panyHistoty 198o’s A decade of transition and rededication 1990’s Nike extends its reach 2000’s Leading a new generationLogo - swoosh graphic design created by Caroline Davidson in 1971 represents the wing of the Greek Goddess NIKE. Sports mind of Passion victory willFirm's Sprits 1988 – ‘Just do it’ 1998 – ‘I can’Bo Jackson Sports and Fitness CenterCOMPETITORNike VS Adidas vs Founded : 1972 Employees : 30,200 Slogan : Just do it Basket Ball – Michael Jordan Golf-Tiger Woods AD : Humanism Founded : 1924 Employees : 24,000 Slogan : impossible is nothing Soccer – Beckham, Zidane AD : Futurism, SciencismCompetitive IntelligenceNike VS Adidas Adidas-Reebok deal poses challenge to NIKENike VS Nintendo NIKE announced that “ Our competitor is nintendo ! ”Nike VS NintendoVS Time Share Unlimited competition generation over border of types of business Shows Nike’s slowdown of growth that has been never miss top They prefer to play game in room that made exercise time reduce Therefore they don’t have to buy sneakers, so Nike decrease their sale . Sports enterprise and Game enterprise compete each other for attract customer’s time distributionSUCCESS ELEMENTNIKE’s Stock Price is rising continually. Interactive S tock C hartValue ChainS.W.O.TStrengths Strong and meaningful response to labor criticisms High quality products and good overall reputation Phil Knight’s management and leadership Brand recognition and effective marketingNIKE's Brand value The “Swoosh” cost was only 35$ Memorable, simple in form, workable in all sizes, invokes a strong signal Now NIKE’s brand value is 100$ Nike has been recognized three times (2006, 2007, 2008) by FORTUNE magazine on its 100 Best Companies To Work For list.Weaknesses P oor communication of labor practices Insufficient line of affordable shoes Uninformed factory workersIncreased awareness of human rights Growing competition Competitors attracting female consumers Mounting disapproval of alleged “corporatization” of college athletics Threatsnot Just do it but Do it right.Just don't do it .F alling stocksS.W.O.TOpportunities Increased sales due to the strengthening economy More positive public perception of Nike’s social responsibility Growth through increased presence in low- to mid-priced shoe market OpportunitiesNike’s social responsibilityNike’s social responsibility- image Manchester United, FC Barcelona - Image of soccer ball and soccer shoes - Image of Tiger woods Golf industry 4P - Product Best technology + Product - targeting soccer and golf market - Image of brand model diversity of Brand ModelNIKE FOOTBALL NIKE GOLF Brand Identity Target Player who wants better performance enjoyer who wants activity support Golf player Ordinary player who wants better performance Image sharp, light, convenient, superiority high-quality, dignity, functional Product Point ․ D istinguished color and design which it gives best fit for consumers Aims for ability improvement by using high technology Improve driving distance by maximizeing repulsion, low price Impact alleviation when hit and focus on lightness Color main : Dark color which would give psychological stability ( black, dark blue, grey ) sub : Florid color (for famous player) Golf club : silver, black Golf ball : white Golf wear Achromatic color that is not so florid Item Soccer shoes, Soccer ball, Uniform, Training clothing, Bag Golf club, Golf Ball, Golf wear 4P P R O D U C T4P - Price - High Price Policy 4P - Place - Outsourcing (Production and distribution) - Outsourcing on online market - Turing to the Online Market - GlobalisationAdvertisement Star Marketing 1985 Michael Jordan Advertisement “Jordan Flight” Myth of Sport Marketing 1996 Tiger woods Nike golf became Top of golf market 2006 Maria Sharapova Increasing, tennis line and Nike Woman출고시기 제품종류 가격 판매장소 정기세일 약 2 개월 ~ 6 개월 전 보통 ( 신제품 제외 때문 ) 20~30% 세일 매장 상설 약 1 년 ~ 3 년 전 다양 ( 매장 전체가 세일 ) 30~50% 세일 매장 대형세일 약 6 년 ~ 15 년 전 다양 ( 하지만 유행 지남 ) 70~90% 세일 대운동장 4P - Promotion - Sales4P - Promotion - Display - Events Image of display @ shop For youth - STAR MARKETING .FUTURE{nameOfApplication=Show}
International BusinessCONTENTSグ. Introduction? History? Trademarks and Patents? Products? United States Market? U.S. Retail Stores Number? International Markets? Non?U.S. Retail Stores Numberケ. Competition? Comparison between Nike and Adidasゲ. NIKE’s star marketing (compare with Adidas)コ. Outsourcing? Outsourcing? Outsourcing on online market, Turing to the Online Market? Manufacturing? Globalizationゴ. Risk? How NIKE combat smuggling?? International Operations and Trade? Increased awareness of human rightsサ. Futureグ. IntroductionNIKE, Inc. was incorporated in 1968 under the laws of the state of Oregon.NIKE, principal business activity is the design, development and worldwide marketing of high quality footwear, apparel, equipment, and accessory products. NIKE is the largest seller of athletic footwear and athletic apparel in the world. They sell their products to retail accounts, through NIKE?owned retail stores, and through a mix of independent distributors and licensees, in over 180 cindependent sales representatives to sell specialty products for golf. In addition, NIKE sells their brand products through internet website, www.nikestore.com, and NIKE operates the following retail outlets in the United States:? U.S. Retail Stores NumberNIKE factory stores (which carry primarily overstock and closeout merchandise) . . . . . . . .102NIKE stores (including NIKE Women stores) . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . 14NIKETOWNs (designed to showcase NIKE products) . . . . . . . . . . . .. . . . . . . . . . . . . . . 12NIKE employee?only stores . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . 4Cole Haan stores (including factory and employee stores) . . . . .. . . . . . . . . . . . . . . . . ..95Converse stores (including factory and employee stores) . . . . . . . . . . . . . . . . . . . . . .20Hurley stores . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7Tm Canada Toronto that were held Donovan Bailey and michael Johnson's the world pay attention to confrontation of the century. At that time Nike pushing Johnson and Adidas is sponsor of Bailey.However, When they was reach the middle point and fall forward so gave up the game. Bailey reach the goal time to spend and Adidas greet with hearty cheers, result is Adidas's win !World sporting goods market, which has been divided arch rival Nike and Adidas. Nike keep to America style's sport marketing. the other side, Adidas hold fast to Europe style sport marketing. So far, Nike always ranked first. Nike maintain that 'We are not a company that sells shoes.'As Nike is Sport company, They emphasizes that Nike is helping to improve their record in developing products and training services, and supporting various sports games supporting organizations that contribute to the popularization of sport. It is It's NIKE's mission. Nike is held by the biggest weapon which is Wonderful Sport corps.among tnd unexpected downslide for both companies. Not only will there be less sales in USA soccer jerseys, but also the estimated profit of these companies will be less than expected. It is very likely that a large amount of the anticipated profits for companies is dependent upon the sales of soccer souvenirs to be sold in the World Cup competition.Trying to prevent counterfeit sales will help keep Nike stable and prevent the unpredicted loss that counterfeit sales may cause.How NIKE combat smuggling?Smuggling is not easy to be tackled without assistance of many countries’ administration that means NIKE itself cannot solve the problem effectively. Especially, administration of China, whose smuggling problem is the most worldwide, not only NIKE but also various brands, have cooperation program for this and adopt a series of measures, such as improving the customs' anti?smuggling legal system, establishing a defense against commercial price fraud, a credit management system for businesses, and nearly all of its products and believe that having distinctive marks that are readily identifiable is an important factor in creating a market for NIKE goods, in identifying us, and in distinguishing NIKE goods from the goods of others. NIKE considers "NIKE" and "Swoosh" Design trademarks to be among its most valuable assets and NIKE have registered these trademarks in over 100 countries. In addition, NIKE own many other rademarks that NIKE utilizes in marketing its products. NIKE believe that NIKE's trademarks, patents, and other intellectual property rights are important to NIKE's brand, success of NIKE and the firm's competitiveposition. NIKE periodically discover products that are counterfeit reproductions of the products or that otherwise infringe on NIKE's intellectual property rights. If NIKE are unsuccessful in challenging a party’s products on the basis of trademark or design or 14 utility patent infringement, continued sales of these products could adversely affect NIKE's sas.
D E B EERS A D IAMOND I S F OREVERD E B EERS A D IAMOND I S F OREVER Introduction Analysis Strategy Today QUIZ What is De Beers’ slogan?D E B EERS A D IAMOND I S F OREVER DIAMONDS are the only gem to symbolize life time LOVE and COMMITMENT Introduction Analysis Strategy TodayD E B EERS A D IAMOND I S F OREVER Introduction Analysis Strategy Today D E B EERS De Beers Established in 1888 World's leading diamond company Expertise in diamond: Exploration Mining MarketingD E B EERS A D IAMOND I S F OREVER Introduction Analysis Strategy Today Origin of De Beers Diederik Arnoldus De Beers and Johannes Nicholas De Beers Paid 50 pounds for farm in South Africa Diamonds were discovered Decide to sell the farm Premier and Kimberly De Beers was named after the two owners of the farmD E B EERS A D IAMOND I S F OREVER Introduction Analysis Strategy Today Origin of De Beers Cecil Rhodes Diamond hunter in the late 1800s Started by renting water pumpers to miners Invested profit into small mining operat Today Founding of De Beers - De Beers Consolidated Mines Limited established in March 12th, 1888. - Cecil Rhodes as founding chairman - By 1890, De Beers was controlling 95% of the world’s diamond production maintaining it for 100 yearsD E B EERS A D IAMOND I S F OREVER Introduction Analysis Strategy Today De Beers New Chairman Ernest Oppenheimer Started buying his own mines (Consolidated Diamond Mines) Started competing with De Beers Took over De Beers Became Chairman in 1929 The Oppenheimer family still holds 40% of the company share holdD E B EERS A D IAMOND I S F OREVER Introduction Analysis Strategy Today De Beers TodayD E B EERS A D IAMOND I S F OREVER Introduction Analysis Strategy Today Diamonds: From Mine to Market Formation Mining Sorting Manufacturing Retailing Cutting PolishingD E B EERS A D IAMOND I S F OREVER Introduction Analysis Strategy Today Industrial Diamonds Diamond Industry Market Jewelry Diamonds Investment DiamondsD E B EERS A D IAMOND I S F OREVER Introduction E B EERS A D IAMOND I S F OREVER Introduction Analysis Strategy Today Are Diamonds Rare? Before the 19 th century Diamonds were exceptionally rare Small quantities were found in India and Brazil Not many diamond mines were discovered Nowadays Many diamond mines: Republic of South Africa Sub-Saharan Countries Siberia Australia Canada Diamond companies have controlled the scarcity illusionD E B EERS A D IAMOND I S F OREVER Strategy Introduction Analysis Strategy TodayD E B EERS A D IAMOND I S F OREVER How they maintain monopoly? Introduction Analysis Strategy TodayD E B EERS A D IAMOND I S F OREVER At Early Times Introduction Analysis Strategy Today - Before 1938 diamonds did not hold the power. The value was only $80 . - advertising and the media to convince young men women that diamonds are actually symbols of love .D E B EERS A D IAMOND I S F OREVER Hollywood -1980s Introduction Analysis Strategy Today The Movie industry was the fastest growing industry of the time and DeBeers deciden magazines and newspaper adds would reinforce the link between diamonds and love. Big Model StrategyD E B EERS A D IAMOND I S F OREVER Challenges – 2000s Introduction Analysis Strategy Today Increased production capacity Consumer awareness of the social cost Political opposition End of monopoly Ineffective marketing of CSO (Central Sell Organization) DTC (Diamond Trading Company) Joint Venture with LVMHD E B EERS A D IAMOND I S F OREVER Diamonds are forever Introduction Analysis Strategy Today LVMH → Marketing, Distribution Retailing De beers → Focus on manufacturing Rose marketing Goal? Increase in sales !D E B EERS A D IAMOND I S F OREVER VIP Marketing Introduction Analysis Strategy Today Pareto Principle Population WealthD E B EERS A D IAMOND I S F OREVER Veblen Effect Introduction Analysis Strategy Today Even if Price ↑ , demand is stable Even the demand increases e.g.) Luxury foreign vehicles, bagsD E B EERS A D IAMOND I S F OREVER Social Responsibility Introduction Analysis Straegy TodayD E B EERS A D IAMOND I S F OREVER Analysis Introduction Analysis Strategy TodayD E B EERS A D IAMOND I S F OREVER Five Forces Model Introduction Analysis Strategy TodayD E B EERS A D IAMOND I S F OREVER Demand for Rough Diamonds Retail Demand for diamond jewelry And forecast growth Introduction Analysis Strategy Today Forecast Growth USA 6% China 15% Europe 5% India 15% Gulf 7% Japan 6% Others 7% BMO Capital MarketsD E B EERS A D IAMOND I S F OREVER World Production of Natural Diamonds Diamond Production by Value 2006 Introduction Analysis Strategy TodayD E B EERS A D IAMOND I S F OREVER The End of the Monopoly Introduction Analysis Strategy Today Rough Diamond Marketing Producers’ Market Share 2006D E B EERS A D IAMOND I S F OREVER Lev Leviev ALROSA Introduction Analysis Strategy Today New competitorsD E B EERS A D IAMOND I S F OREVER Introduction Analysis Strategy Today Operating DTCD E B EERS A D IAMOND I S F OREVER Introduction Analysis Strategy Today De Beers Diamond Jewow}
What’s your favorite family restaurant?Bennigan’s Goes Bankrupt - July 31, 2008 Bennigan’s parent Metromedia Restaurant Group declaring bankruptcy.Bennigan’s Job Trend .Why Bennigan’s ? Learning from the failure 베니건스의 실패학US Bankrupt - Chapter 7 Bankruptcy is the legal process a business goes through when it cannot pay all of its debts. Chapter 7 , in which the debtor's business assets are liquidated (sold) to provide funds to repay the creditors. Quiz 1. Chapter ? , in which the business is reorganized to pay creditors while the business continues . Hint. A : Chapter 11Contents Part 1. Rise Fall of Bennigan’s Part 2. Competitor Part 3. What about Korean Bennigan's ? Part 4. Future P erspectPart 1. Rise Fall of Bennigan’sRise of Bennigan’sEstablished in Atlanta, Georgia by Norman E. Brinker 2008 Bennigans bankrupted. 2009 New CEO 1976 1983 Since early 1990’s 1995 2008 2009 Bennigan’s became popular for casual dining franchise for eating drinking Bennigan’s continue to grow at a ral atmosphere . typically provide table service . usually have a full bar with separate bartender, a larger beer menu and a limited wine menu.4Ps – Product Price4Ps – Product Price Normal – Slightly above Normal4Ps – Place PromotionSTP – Segmentation Targeting Dining/Drinking Restaurant Time: Brunch – After Midnight (Brunch, Lunch, Afternoon, Dinner, Post-Dinner Hours) Families with Kids/Grandparents , Group of Friends , Group of Workers Income Level: Low-Mid level Low-Mid income Families/ Group of Friends/ Group of Workers Celebrators Not for underage group of childrenSTP – Positioning “Entertainment” “Irish Hospitality” Exceptional food and drinks surrounded by the Spirit of Ireland. Traditional Mordern High Price Low PriceSWOT · Closes late (2am) compared to others · Offer Spanish Menu · Large parking lot · Well-organized photo colored menu printings · Food Service quality varies substantially between different locations. · Bulk-production distribution system · High Calories e of variation of food/service among locations W eakness S trength O pportunity T hreatInternational MarketingFall of Bennigan’sMisunderstanding of changing preference of the customers Failed to manage their value chain Economic depression Fall of Bennigan’sMisunderstanding of trendMisunderstand of trendFailure in managing value chain Beef quality standard Of U.S. Department of AgricultureFailure in managing value chainFailure in managing value chainEconomic Depression Rapid price increase of major raw materials that Bennigan’s usePart 2. CompetitorsOlive Garden vs. Bennigan’sThe Quality of Food VS home-like Italian restaurant fresh ingredients and balanced meals providing Garden Fare selections ex) low fat, Carbohydrates, Gluten Free, No sugar added etc… providing nutrition analysis A drive to cut the price lowered the quality of food Fresh in-store cooked foods - frozen food Used cheaper lower quality beef for steaks by experimenting butter injection Unhealthy food and es consumers could increase trust of their food R ely on the minimum wage labors (showing untrained services) A lack of distinction S ame kind of menu décor, appeal The Quality of ServiceO UTBACK STEAKHOUSEO UTBACK STEKHOUSE However ,following the well-being trendT.G.I. FRiDAY’SPart 3. What about Korean Bennigan’s ?Bennigan’s Korea Why is Bennigan ’ s Korea so Special? Throughout world-wide franchising , Bennigan ’ s Korea rates the best total sales In 2001, Bennigan ’ s Korea received “ President Award ” from parent-company , MRG for five years Bennigan ’ s Korea also received “ The most profitable Awards ” “ the best business awards ” Bennigan ’ s Korea = The total sales of 550 억원 acoounts 34.8% of total growth rateBennigan’s Korea How to Succeed in Franchising? Localization strategy 1. Localized food for Korean ex) Country Chicken Salad, Beef and Chicken Combo a. Developed by bennigan ’ s Korea b. Even exported to Japan and UK Brand image making 1. luxurious brand image (High igan ’ s Korea ’ s Well-being marketing strategy 1. Farmer ’ s Bennigans ’ 2. Bennigan ’ s Market O 3. Market O 4. Market O deliBefore Made and conserved in factory Save chief income Save cooking time Bennigan’s Korea Now Chief restaurant Skilled chiefs at the store Newly developed menuBennigan’s Korea Merits Bennigans + Market O Healthy and well-being food for a unique proposal to the public Captures the convenience stores (Easy-to-cook instant food BUT healthy) Fresh and organic ingredients Well designed interior for a more comfortable time Demerits High Price Too man different kinds of franchises gets the consumers confused Poor advertisement leading to unfamiliarity of the storesPart 4. Future ProspectFuture Prospect • Food Quality Management • Follow the trend • Equal Quality in all locations • Promotion Advertisement – inform customers that Bennigan’s still exist with better quality.Reference •http://www.bennigans.com • http://www.restaurantnewsresource.com/ • http://www.outbacks}
Prepared forInternational BusinessGroup 15June 21, 2009ContentsRise & Fall of Bennigan’s1.1 Rise of Bennigan’s1.1.1 History1.1.2 4Ps – Product, Price, Place, Promotion1.1.3 STP- Segmentation, Targeting, Positioning1.1.4 SWOT- Strength, Weakness, Opportunity, Threat1.1.5 Bennigan’s International marketing1.2 Fall of Bennigan’s1.2.1 Failure in managing value chain1.2.2 Misunderstanding of changing customers preference1.2.3 Economic crisis2. Competitor2.1 Comparison between Olive Garden and Bennigan’s2.2 T.G.I Friday’s2.3 Outback Steakhouse3. What about Korean Bennigan’s?3.1. Franchising Skills3.2 Well-being marketing3.3 Farmer’s Bennigan’s3.4 Market O’s with Bennigan’s Korea.4. Future & Prospect5. Reference1. Rise & Fall of Bennigan’s1.1 Rise of Bennigan’s1.1.1 HistoryIn 1976 Bennigan’s was first established in Atlanta, Georgia by Norman E. Brinker. Norman E. Brinker was not only managing Bennigan’s. He also led an exodus of senior management from S&A. So basically he had experience in m1.4 SWOT1.1.4.1 Compared to other restaurants that close at nine or ten in North America, Bennigan’s closes at two am, and this makes more night drinkers to go to Bennigan’s. They also offer Spanish Menu, Large Parking Lot, and Well-organized colored menu with pictures of their foods.1.1.4.2 One of their weaknesses is the Quality Variation between Locations. Some consumer reviews say the food was really cold and services were terrible. Consumers would never visit Bennigan’s even in other locations if their first impression was terrible.Through their Distribution System, the Bulk-production method and distribution system added with food preservatives (antiseptics), salt, fat, etc, makes the food taste and quality deteriorated.The following foods taste really good, but they are very rich in calories, which won’t be so attractive for people who are in diet; Monte Cristo (643kcal), Reuben Sandwich (970kcal)1.1.4.3 Bennigan’s is a well-known brand throughout the country with over 30 years o the lowered quality of the food. By doing so they have succeeded in cutting down the price, but they lost the most important factor that is taste.1.2.2 Misunderstanding of changing customers preferenceThe second reason that we choose is that they misunderstood the changing trend or mind of the customers. There are two different concepts that they missed. One is about the well being. In 1990s, and 2000, people concerned a lot about concept of the well-being. We can find some changes in the US foodservice industry reflecting those changes, in the beverage market, the sales of bottled water had increased on the average of 9.1% from 1998 to 2003. Restaurants such as Applebee's and McDonald included salad in their menus and some restaurants started to mark the nutrition fact including calories and amount of fat. However, the Bennigan’s did not try to adapt to these changes, rather they stick to their own standardization which made customersAnother trend that they missed was the diversity aod. In addition, they worked on Many promotions like cooking videos and providing receipts. They share their receipts to promote passion for Italian cooking. By working on these promotions, consumers could increase the trust of their food.On the other hand, the Quality of Food of Bennigan’s was terrible compare to their competitors like Olive Garden. Due to the financial problem it faced it had to cut the price of ingredients and resulted in lowering the quality of food. Although they maintained the principle of Fresh in-store cooked foods before, they changed their strategy to frozen food to cut the price and to be competitive in the segment. Also, they used cheaper and lower quality beef for steaks by experimenting butter injection method to cheat the taste. With Well being trend, unhealthy food and too much calories of Bennigan’s menu were also a main reason for deterring consumers from visiting again. For the quality of service, since they relied too much on the minimum wage laborsorea, they thought they needed a newer more unique strategy so they bought the company Market O. Market O had the image of making the “Fresh and Healthy” food. Soon after they got a hold of Market O, Bennigan’s Korea started to put out more stores such as, Farmer’s Bennigan’s, Bennigan’s Market O and Market O deli. Farmer’s Bennigan’s being the classy old school style restaurant, Bennigan’s Market O was the original Bennigan’s and Market O split into two sections in one restaurant, and Market O deli was simply a deli for the people who wanted to eat fresh and healthy sandwiches.3.3 Farmer’s Bennigan’sFarmers Bennigan’s was actually here before Bennigan’s Korea bought Market O. But there were differences before ad after. Long tie ago, Farmers Bennigan’s made their food and sauces from their factory and froze them to bring to the store. Then they melted it at the restaurant when the order came in. It worked very well for a while. It saved them chief paychecks because most of the orders wer