Past Performance of Nike by Analyzing Their Sales - Case Study Example

Table of Contents Introduction 2 Trend Analysis 2 Mean 2 Correlation 3 Analysis of Mean & Correlation 3 Analysis of Trend Analysis 3 Review of Business Performance 4 Positioning Statement 4 Success of Marketing Objectives 5 Underperforming Areas 5 Survey 5 Analysis of Survey Result 6 Formal Report 6 Conclusion 9 References 10 Introduction The paper looks to present the past performance of Nike by analyzing their sales, past performance, expenditure and other aspect through which different resources were used. The paper then present a future forecast and looks to delve on other aspect and issues through which the overall performance of the business can be improved. In addition to it the review of marketing policies, strategies and overall performance is being evaluated and the manner in which the business has been able to ensure effectiveness in their dealings is being carried out. Trend Analysis The trend analysis for both the cities shows that an increase in expenditure on advertising connotes with an increase in sales in the future months. The analysis shows that the business is able to gain from marketing activities and higher spending ensures that the benefits will be spread over the future months. The trend also highlights that the sales is seasonal a both Melbourne and Adelaide shows similar pattern and change in sales. This highlights that the demand for Nike shoes is uniform among different regions and ensures better opportunity of growth in the future. The trend also highlights that advertising expenses have to be well planned as proper execution of strategy and having appropriate funds ensures that the business will be able to generate adequate returns through increase in sales. Mean Total Monthly Sales in Melbourne = 3.5 + 3.8 + 4.8 + 6 + 8.6 + 4.2 + 3.8+ 4.9 + 6.2+ 3.5 + 7.8 + 8.7 = 65.8 Mean Sales = 65.8 / 12 = 5.483 Total Monthly Sales in Adelaide = 4.6 + 3.9 + 3.1 + 7.2 + 7.8 + 4.3 + 5.4 + 5.9 + 3.9+ 5 + 5.6 + 4.3 = 61 Mean Sales = 61 / 12 = 5.083 Correlation Correlation Coefficient for Melbourne = 0.016699505340919057 Correlation Coefficient for Adelaide = -0.21981843073281834 Analysis of Mean & Correlation The analysis of the data shows differentiated results for both the cities. It is seen that Melbourne shows a positive correlation which highlights that improvement in advertising expenses is having a positive impact on the performance through increased sales. This will thereby look towards ensuring that better returns will be achieved through improved expenditure on advertising. In case of Adelaide it is seen that a negative correlation exist which shows that the business is not able to generate the same return with regard to the expenditure being made on advertising. This has thereby impacted the manner in which business sales take place and will lead towards negative impact on the future potential. Analysis of Trend Analysis The trend analysis shows that the sales of Nike shoes are largely dependent on the advertising expenses which the management incurs. If the management incurs high advertising expenses it transforms into better sales in the future. The sale which the business earns might not be seen in the same year in which the expenditure on advertising is made but is spread over different months. This shows that advertising expenses has a direct relation on sales and changes in advertising expenses have a direct relation on the sales in case of Melbourne but the same result is not achieved in case of Adelaide as the business is not able to generate the sale sales based on expenditure made on advertising. Review of Business Performance The past performance of the business shows that advertising expenses have a direct impact on the sales of Nike shoes. Expenditure made by Nike on different months gets reflected in the next few months and shows the manner in which the sales increases when more advertising expenses is made. It is also analyzed that spending over a particular limit on advertising doesn’t increases the sales which requires proper planning and optimally choosing the amount of money which needs to be spent on advertising. Having a proper mix and utilizing the expense properly helps to maximize the sales and ensures that money spent on advertising fetches high sales value (Business, 2011). The analysis also shows that both Melbourne and Adelaide witness similar rise in the sales of shoes in different month denoting that the demand patterns changes in different months. Further, the different demand which is witnessed in different months arises and changes depending on different external factors. It is also analyzed that both the place denote similar traits and look to attract people in a similar manner as both places witnesses similar trends and movement in the sales of shoes. Positioning Statement The positioning statement for Nike is providing quality shoes which are comfortable and trendy at affordable rates while looking to differentiate the same from others based on quality and product offering. Nike despite having a different strategy faces competition from other players like Adidas, Reebok and others as they look to provide similar products and looks to attract the same segment of the society through their products. Success of Marketing Objectives The marketing objectives need to plan properly and have to look at analyzing the manner in which different advertising expenses have an impact on sales. The marketing success can be seen in case of Melbourne where positive impact of advertising expenses is witnessed but Adelaide is not able to generate the same sales in relation to the marketing expenses which the team incurs. Underperforming Areas Adelaide is an area which is underperforming as the business is having a negative correlation with regard to the advertising expenses which is made to incur sales. This will require careful planning and deciding the future course of action as similar problems will lead towards withdrawal of product from the market. Survey 1. Name...... 2. Age..... 3. Sex............ 4. Do you purchase products from Nike? Yes / No 5. What appeals you the most in Nike products? -------------------- 6. How do you rate Nike products? (In a scale of 1 to 5 with 5 being the highest) ------------ 7. Do you want Nike stores and stores to be available here? Yes / No 8. What special features would you like to be present there? ------------------ 9. Suggestion for improvement? -------------------- Analysis of survey results The survey results showed that people prefer quality, durability and product features of Nike in comparison to other products being offered. People would also like the products to be changed and made trendier. Along with it the respondent prefer to purchase it from stores as they can check, trial and based on it different attributes make their purchase decisions. This requires opening of new stores and looking towards having increased penetration so that more customers can be attracted and retained. Formal Report of Market Data Introduction This report looks at presenting the different requirements of a report which will help to understand the market performance through the evaluation of market data and the manner in which overall code of conduct and different scheduling and ethical standards were maintained. This will help to make strategies for the future and will also help to carve a path through which overall relevance of the business decision making will improve. Determining the goals Identifying the future goals of the business is the most important aspect as all the resources will be developed, planned and used in the determined manner. This will require looking into different details and developing a process through which the employees and others are able to clearly understand the different business requirements and are in a position through which better use of resources becomes possible. It will help to give a sense of direction and will carve out a path based on which the organizational performance for the future will be determined. Past performance The performance shows that Nike was able to use the different resources in the best possible manner as the different expenditure which the organization made of advertising got reflected in the sales of the organization. This had resulted in ensuring that the overall mechanism and process through which different resources were allocated provided maximum returns. The analysis shows that the expenditure made by the business on advertising fetched rewards in the future years as the performance further improved and the sales grew. The overall analysis highlights the manner in which the different factors and fundamentals which were associated with performance were evaluated and assigning proper resources helped to ensure better growth. Return Analysis The return analysis helps to apportion the different expenditure based on income and looks to compare the past expenses with the income the process was able to fetch. This has helped to ensure that business is able to find out the manner in which different returns is received based on the expenditure which is made. The process has thereby led towards fetching maximum efficiency and has helped to maximize the process through which overall gains for the business has been ensured. Future Forecast The manner in which Nike is carrying out its business will create an opportunity where the mechanism of garnering future business will improve. It is also seen that certain months have more sales in compared to other will thereby get reflected and will have a bearing on the overall future performance. The consideration for Nike is to look about carrying their business in Melbourne as the business is not fetching the same rewards as compared to the expenditure which was been made on advertising in that regard. This requires introspection and looking at different things and solving the overall issues so that business management improves and the business is able to carry out the different roles and responsibilities in the most effective manner. Future Needs The business needs to find out the future needs of the business and has to plan for the different resources in the most effective manner. This will thereby look towards having a mechanism which will be aimed towards finding out the marketing needs, the human resource needs, the financial needs and other needs. This will help to improve the overall process through which planning will be carried out and will be aimed towards maximizing the gains for the business (Pick, Karrenbrock and Carman, 2000). This will thereby look towards ensuring that the business will be in a position where the future goals can be easily met. Code of Conduct The business has to determine a code of conduct which will be binding on all and the business will look to be carried within that code of conduct. Having determined the correct code of conduct and developing strategies which will be aimed towards maximizing the rewards will ensure that no undue activities takes place and the business is managed on correct terms. Also having a code which looks towards avoiding unethical practices and determines the process through which business will be carried out will fetch maximum result. Scheduling This is an important aspect and facet of business as properly scheduling the different activities and carrying out the business on the appropriate time will ensure maximum returns. The process of scheduling should be such that it determines the important months and based on it looks at developing strategies which will be aimed at maximizing the overall gains for the business (Frederick, 2004). This can be seen in case of Nike where proper scheduling and planning has helped to ensure that the overall manner and process through which different activities are carried provides maximum return as properly managing the advertising expenses has helped to ensure sales in the next few months. Conclusion The process of properly determining business strategy and looking towards gathering a process which is aimed at developing future strategy based on present performance will help to ensure better returns. This has to be matched with development of strategies which will look towards ensuring maximum planning with regard to scheduling, code of conduct and other parameters which will help to provide maximum returns. Conclusion The paper thereby analyzes the overall performance of Nike and looks to present the future forecasted option for the business. This also leads towards identifying the path and way which needs to be followed and helps to identify the manner in which the different resources will be planned and used in the future. This will help to create a direction and help to plan in a manner where the resources will be used in the manner through which the organizational goals will be better achieved. References Business, (2011). Business of Social Media: How to Plunder the Treasure Trove. Reference & User Services Quarterly, 51(2), 127-132 Frederick V. (2004). Margins in Marketing. Journal of Farm Economics, 16 (2), 233-245 Pick, D., Karrenbrock, J. and Carman, H. (2000). Price Asymmetry and Marketing Margin Behavior: An Example for California—Arizona Citrus. Agribusiness, 6 (1), 75-84. Read More