Business Challenge: Nike, Inc

Business Challenge: Nike, Inc



Your department works for Nike, Inc and must design, produce and sell the next line of athletic shoes Nike will launch.



Your goal is to make a profit. Profit is positive increase from an investment after subtracting for all expenses. Your investment from Nike is $1,000.

Your expenses are marketing cost and shoe production cost. Those prices will vary from team to team, depending on how you choose to spend your investment money.



The team with the best design, marketing plan and profit will win the business challenge!



Step 1: Team Leadership

1. Department Manager: Manager will make final decision on production cost and shoe type.
2. Marketing Manager: Marketing Manager will make final decision on celebrity endorsement, marketing strategy and shoe name.
3. Designer: Designer will make final decision on shoe design, colors, etc. Designer will also design actual shoe that appears in retail stores.



Department Manager: __________________________



Marketing Manager: ___________________________



Designer: ______________________________



Step 2: Decide what type of athletic shoe your will you design, produce and sell. Tennis, basketball, soccer, etc. Make sure you leave $100.00 to cover the cost of celebrity endorsements and marketing. Do not spend more than the $1,000 investment.



Type of shoe: ____________________



Shoe production cost includes material used to make tennis shoes and wages paid to employees in the factory.

Shoe production cost: $15.00- top quality, shoes will last 8 months

Shoe production cost: $10.00-mid level quality, shoes will last 4 months

Shoe production cost: $5.00- low level quality, shoes will last 2 months



Number of shoes produced: ______________

Cost of shoe production: ____________ (expense)





Step 3: Celebrity Endorsement and Marketing

Marketing is the promotion of products, especially advertising and branding. Marketing gets the word out about your product.

Celebrity endorsement and marketing cost: 10% of investment or $100.00 dollars (expense)



Shoe name: ______________________



Celebrity Endorsement: _______________________





Step 4: Retail Price

Retail price of shoes- How much will you charge consumers to purchase your shoes at major retailers such as Foot Locker, Lady Foot Locker, Champs, etc? In order to make a profit, you must sell shoes for more than it cost you to make them.



Example: You produce one pair of shoes for $15.00 dollars. You sell them in the store for $45.00. Your profit is $30.00.



Retail price: __________





Step 5: Design



Decide on color, style, height, etc of shoe that your team will sell in stores.









Step 6: Profit

Retail Price (-) Production & Marketing Expense = PROFIT



Profit: __________________

Fall Festival was a huge success!!!!!

On behalf of the 6th grade Young Entrepreneurs Club- THANK YOU!!!!

The Young Entrepreneurs earned $644.00 that evening and donated 25% to ACMS. The remaining money will be deposited into the bank accounts of the Wednesday club members.

With your support, our young people were able to see the fruits of their labor.

Thanks again!