CUSTOMER VALUE PROPOSITION

Customer Value Proposition



Executive Summary

Business seems to have gotten somuch more complex. Global economiesconnected through digits withcustomers who can shout pretty darnloud, and competitors that you'd swearwere crazy with the things they do. Andone cannot forget how the relationshipwith employees in so many companiesseems to have come down to grudgematch egged on by who will be the fi rst tofl inch during the next cost cutting or restructuringinitiative.The solutions and advice to deal with thechanges and complexity seems to be evermore complex. Businesses are expected totake action and change or else they maynot survive the onslaught of competition,customer demands and shareholder expectations.Just when the company startsto make sense out of the last businessidea and initiative it launched, the initiativeis outdated. The only constant in businesstoday seems to be dealing with morechange before someone beats your companyout in the market.

Table of Content

PART 14

Introduction4

Target Market4

Industry Trends4

Goals5

Strategies5

Marketing Mix of Nike6

Products6

Price7

Placement7

Promotion7

Customers Perceived Values8

PART 29

Competitor analysis9

ADIDAS9

Core Competency10

Core Competencies of Adidas10

Core Competencies of Nike11

Strategic Outsourcing11

An advantage for Nike and Adidas over competitors11

Value Proposition12

Positioning12

Marketing Strategies12

Creating Value13

Evolution As A Brand14

NIKE14

ADIDAS15

Conclusion16

PART 317

Making sense of value18

Customer Value19

REFERENCES24

Customer value proposition

Part 1

Introduction

Nike is the world's renowned and leading supplier of athletic shoes and apparels. It controls more than 47% of athletic shoe market with sale of U.S dollar 3.7 Billion. This company was founded in 1962 by Bill Bower man and Phil knight as Blue Ribbon Support and later on it became Nike in 1978 (Kaplan, 2000a, 167). It is supplying its high quality products in more than 100 countries with its major target areas including United States, Europe, Asia Pacific, and the Americas. Nike has attained this legendary position through innovative and attractive design, quality production and wise marketing strategies.

Target Market

Nike has huge range in its target market. They have wide range of different products each targeting and appealing a specific group of people. They aim to meet the requirements of people of all ages belonging to varying categories. This strategy has made this company to gain maximum number of customers and profit.

Industry Trends

The company initially operated as supplier for the Japanese shoe maker. The company's profile grew quickly and soon it gained a renowned position in the market. The swoosh logo of Nike was firstly used in 1971, registered in U.S trademark office in 1974 and first product sold with Nike was a soccer (Marina, 2008). In 1980 the company gained more than 50% share in the global market. Initially the prices of the products were high then the company started focusing on providing high quality products at comparatively low prices to enlarge the circle of customers. By the end of 2009 the company generated revenue of 19.2 billion U.S dollars with operational income of 1.87 billion U.S dollars.

Goals

Initially the goal was to distribute low-cost, high-quality Japanese athletic shoes to American consumers to break the domination of Germany in the shoe industry.

To maintain its quality and make it easily available at every marketable place.

To meet the requirement of all type of customers (male, female, old and ...