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Nike Merchandising

NIKE is a large global company that manufactures and sells sportswear and footwear. It started by focusing on quality running shoes but has expanded its product lines. NIKE uses data analytics and artificial intelligence to better understand consumer needs and behavior in order to tailor its product assortments and promotions. This includes leveraging predictive analytics software to personalize customer experiences and optimize assortment planning and allocation.

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Pooja Malik
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192 views2 pages

Nike Merchandising

NIKE is a large global company that manufactures and sells sportswear and footwear. It started by focusing on quality running shoes but has expanded its product lines. NIKE uses data analytics and artificial intelligence to better understand consumer needs and behavior in order to tailor its product assortments and promotions. This includes leveraging predictive analytics software to personalize customer experiences and optimize assortment planning and allocation.

Uploaded by

Pooja Malik
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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NIKE is one of the largest companies in the world. But the climb to the top wasn’t easy.

Luckily, its merchandising abilities allowed it to become what it is today.

For NIKE, Inc., merchants, everything begins and ends with the consumer. The Nike
Merchandising team analyses consumer needs and market capacity to create the right
product mix for marketplaces around the world.

Primarily, Nike focused on top quality sports shoes but then branched out quickly to all
kinds of sportswear. Currently, they are manufacturing different types of footwear
including studs, flip flops, running shoes, apparel including shorts, socks, jersey to
equipments including ball, bag and watches. The founder of Nike wanted each client to
believe that through purchasing Nike products, they would obtain success, power and
happiness.

Nike stores are consistent with this dream. As a money making business, the branding
strategy of Nike is to persuade its client into buying merchandise. Total number of Nike
stores worldwide has increased from 674 stores in 2009 to 1096 stores in 2020. This is
achieved not only because of the improvement in quality but also through promotions.
Promotion is largely dependent on finding accessible store locations. The main elements
of the promotional mix are advertising, endorsements, website, word of mouth. The
objective of promotion is basically to maintain customer loyalty, enhance customer
relations, all to raise customer traffic and to increase sales.

Recently, NIKE acquired Celect, a predictive analytics and demand sensing software
company, to fuel its consumer-direct offense strategy. The goal for Nike, despite their brand
innovation and trendy fashion, is to better serve their customers on a more personal level
by leveraging an Artificial Intelligence platform to become hyper-focused on consumer
behaviour. Nike uses Artificial intelligence and machine learning to transform business
processes like Assortment Planning.  To achieve this, they infuse analytics into the planning
process for the clients to provide an automated and scalable solution in four simple steps:

Perfecting demand  leverages market data and historical sales to better align to customer
shopping behaviour.

Intelligent Clustering leverages various clustering techniques like DB Scan, K-means, and


Doughnut to analyze the demand patterns observed in every geographical location.

Assortment Profiling & Assortment Optimization evaluates consumer decision tress to


determine the best choice to maximize sales for each cluster or location.

Assortment Plan & Allocation Profiles provides the final automated output that merges all
the analytical insights to assort and distribute product demand to the best stores to
maximize profit.

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