Nike Follow up

This past week we started to dive a little deeper into the Product development life cycle. This week we focused our attention on developing a hypothesis and coming up with an iteration goal for our companies. Based on my work with Nike during my product landscape canvas I identified one of Nike’s future plans to try and capitalize on their NikeId sales and customer customization. Below you can find my workup as well as my insight and rationale. I have also attached the companies current workflow on their website for their customization of shoes.

Iteration goal: Increase Revenue through web engagement

Insight: Looking at Data the DTC (Direct to Consumer) sales are the slowest climbing profit margin in Nike’s portfolio. The NikeID portfolio is tied into their DTC revenue, they don’t break it down any further for stakeholder reasons. So I can make an educated guess that in that entire portfolio of the DTC sales the NikeID is probably the lowest selling one in that category. Although the DTC portfolio shows higher revenue it is the smallest in growth as to the sales are all net profits as their are no wholesalers or third party sellers in the mix.

Product Goal: Increase NikeID Sales

Hypotheses:

• Target customers whenever they are purchasing a shoe or customizable gear online and ask if they would like to customize
• Target customers in store with embroidery options or sending their in store purchase to Nike to have customized
• Creating a stand alone website for all customization could reduce it being overlooked on the website
• Cutting down the 4 week turnaround could help from deterring people who want their shoes now

Success:

• (business level) Increase DTC Revenue
• (product level) Increase NikeID orders
• (business level) Increase DTC sales