Brand Architecture Nike

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Brand architecture

 it is an organising structure for how a


company manages its brands. It specifies
certain brand roles and the nature of
relationships between brands.
   Brand architecture provides the blueprints
for how closely the different brands in your
organization are related, or not related.
Brand-architecture strategy

 Brand-architecture strategy pertains to the


“organizing structure of the brand portfolio” and
defines the number and roles of brand names
that a company uses for its range of products and
the target groups or target markets.

 Brand-architecture strategy ranges from a single


brand for all products and target groups of a
company to a strategy in which every single
product carries its own brand name.
IMPOTANCE OF BRAND ARCHITECTURE

 The cost-effectiveness of its brand and


marketing investments. 
Brand architecture can improve marketing
ROI by helping ensure brand positioning and
value propositions are properly aligned to
specific markets and segments.
 The scale of branding and marketing
investment needed.
 The ease with which individual products can
be updated, to keep pace with competitive
and market changes, without discarding
previous marketing investments.
 Generally speaking, marketing a large number of
brands requires more investment in time and
money than a small number of brands will
consume.
 Alignment with internal organisational
structures
 A well-defined brand architecture maximizes the
opportunity of each brand and creates clarity for
your internal and external stakeholders.
 Brand architecture strategy helps create a more
intuitive brand structure that prevents brand
conflicts.
 it defines the role of each brand and to identify
which brands need to leverage existing equity
and which need extra protection. 
Types of brand architecture

 The four general types of architecture are:


 1. Master brand
 2. Brand/subbrand
 3. Endorsed brand
 4. Separate (stand-alone or independent)
brands
other types of brand architecture
now used in firms across the world

 . 

A house of brands: this involves a set of stand-alone brands and sub- brands,
each maximising the parent firm's impact on a market. It clearly positions
brands with functional benefits and attempts to dominate niche segments. 

Within the house of brands, there are a number of subcategories: 

Mother brand: The mother brand is the primary name and image for a
company. It can then be stretched by sub-brands but remains the organisation's
overall reference for all other brands or products.
 Shadow endorsers: A shadow endorser brand is not connected visibly to the
main or endorsed brand, but many consumers know about the link. This
subcategory provides some of the advantages of having a known organisation
backing the brand, while minimising any association contamination. The
relationship between confectionery company Cadbury and its organic brand
Green & Black's is a good example. 
Nike.

 NIKE, Inc.’s wholly-owned affiliates, reported


as Other Businesses – Cole Haan, Converse,
Inc., Hurley International, LLC, NIKE Golf, and
Umbro, Ltd. – play a significant role in our
future growth plans. At the end of fiscal 2010,
NIKE, Inc.’s affiliate businesses contributed
approximately $2.5 billion of the company’s
$19.0 billion in revenue.
Mission statement

 To bring inspiration and innovation to every athlete of


the world.
 Believe in potential not limits.
 Grit, determination, passion and humour.
 Faith ,personnel inclusion and health wear nike in
every part of life.
 Sporty ,young and successful.
 Aggressive, comfort and cool.just do it
 To deliver record profitability and continued to expand
our competitive separation across the portfolio
NIKE, Inc.'s Brand Portfolio
Cole Haan

 Cole Haan, a wholly-owned subsidiary of NIKE, Inc., is


one of America’s leading luxury brands, offering high-
quality men’s and women’s footwear, accessories and
outerwear. Each product blends craftsmanship,
design and innovation to give it distinctive character
and style. Cole Haan operates more than 180 retail
locations throughout the United States, Canada, the
Middle East and Asia. Cole Haan is headquartered in
New York City and Yarmouth, Maine. Cole Haan
realized $463 million in sales in fiscal 2010.
Converse Inc

 Converse, Inc., established in 1908 and based in North


Andover, Massachusetts, has built a reputation as
“America’s Original Sports Company”™ and has been
associated with a rich heritage of legendary shoes such as
the Chuck Taylor® All Star® shoe, the Jack Purcell® shoe
and the One Star® shoe. Today, Converse offers a diverse
portfolio including premium lifestyle men's and women's
footwear and apparel. Converse product is sold globally
by retailers in over 160 countries and through more than
50 company-owned retail locations. Converse realized
$983 million in sales in fiscal 2010
Hurley International LLC

 Headquartered in Costa Mesa, California,


Hurley International LLC designs and
distributes a line of action sports apparel for
surfing, skateboarding and youth lifestyle
apparel and footwear under the Hurley brand
name. Hurley realized $221 million in sales in
fiscal 2010
NIKE Golf

 Located at NIKE’s World Headquarters in


Beaverton, Oregon, Nike Golf designs and
markets golf equipment, apparel, balls,
footwear, bags and accessories worldwide.
Nike Golf is passionately dedicated to ushering
in the future of this great sport by developing
ground-breaking innovations that enable and
inspire athletes to become better. Nike Golf
realized $683 million in sales in fiscal 2010
Umbro Ltd.

 Founded in 1924 and headquartered in Manchester,


England. Umbro, Ltd. designs, distributes, and licenses
athletic and casual footwear, apparel and equipment,
primarily for the sport of football (soccer), under the
Umbro trademarks. Umbro Ltd. has been associated
with football since the 1930s and its relationship with
leading national teams and professional clubs includes
exclusive endorsements and distribution rights for
playing kit, apparel and equipment, including playing
and training kits for England’s National Team. Umbro
realized $224 million in sales in fiscal 2010
 “Diversity and Inclusion is fundamental to Nike’s
performance. It’s what makes them better. It’s what
makes them smarter. It helps their business grow
and helps us connect with consumers.”
 Shares the fundamentals of diversity and inclusion
to build awareness and understanding
 Uses diversity and inclusion to inspire new ideas
 Encourages connections between unlikely players.
Nike brand strategy an overview

 Nike brand strategy an overview


NIKE Brand Overview


NIKE Brand President Charlie Denson provided an
overview of how NIKE’s consumer-focused category
strategy is driving growth through increased market
place capacity and penetration, “NIKE is the most
connected, authentic and distinctive brand in the
industry.” Denson continued, “Our consumer
focused strategy enhances our ability to deliver
great product and elevated consumer experiences
which will help grow the NIKE Brand to
approximately $23 billion by the end of fiscal 2015.”*
NIKE Brand – Category Offense

 Action Sports – comprised of NIKE 6.0 and NIKE


SB, is the fastest growing category within the Nike
Brand. The Company anticipates doubling its
current estimated $390 million business by 2015.**

 Athletic Training – started more than 20 years ago


with the advent of NIKE cross training. This
business, estimated at $1.4 billion, continues to
redefine performance with key innovations like
NIKE Pro base layer apparel and the Trainer1 shoe
 Basketball – led by the strength of the Jordan
Brand and excellent opportunities in the United
States and China, NIKE’s basketball business is
currently at approximately $1.7 billion in revenue.**

 Football – with NIKE Brand Football revenue of


approximately $1.7 billion, the Company is
launching its largest-ever presence at a World Cup
including new footwear, national team kits, and
NIKE Football+
 Running – with approximately $2.1 billion in revenue,
NIKE’s original category continues to be the source for
key innovations including Flywire, Lunar Cushioning,
and Nike+ enabled footwear. Nikeplus.com is the
world’s largest running club with close to 3 million
registered members and Lunar Glide continues to
expand the category’s growth opportunities.**

 Sportswear – the Company’s largest category at


about $4.9 billion continues leveraging new
performance ideas from the six sports categories as
well as franchise products like the Air Force 1 (which
sells 15 million pairs a year 25 years after its debut).**
 Women’s Training – with nearly $740 million
in sales and the number one position in
women’s training footwear in the U.S. and the
top five European markets, a new generation
of NIKE Free footwear – designed to
strengthen the body and improve fitness by
activating the core – in concert with the
Company’s strongest ever apparel offering
continues to drive growth in this category.*

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