Overview:
I proposed a gender-inclusive product line for Nike aimed at closing the gap in athlete sponsorships and product design—where 70% of current sponsorships skew toward male sports, despite women contributing nearly 40% of Nike’s revenue. The concept was built around a premium women’s line with integrated biometric tech, tapping into an underserved market with high growth potential.
Key Contributions:
Market Gap Analysis: Identified underrepresentation of female-dominated sports in Nike's current portfolio. Financial Modeling: Forecasted breakeven at $409M (2.2M units)—less than 1% of annual revenue. Strategic Investment Plan: $76.5M for wearable tech R&D and DTC infrastructure. $95.5M toward sustainable manufacturing (Nike Grind, recycling). $23.8M in carbon offset initiatives
Reflections & Learnings:
This proposal positioned gender parity as both a market opportunity and a brand differentiator. The line’s higher margins and tech-forward value justified investment while aligning with Nike’s sustainability and innovation goals.
Financial Performance
Key Issues
Key Findings
Growth Rates
Unit Economics
Key Ratios
Revenue Forecast
Current Focus: shows a higher emphasis on male-focused strategies across categories like sponsorship (70%), marketing (60%), product design (80%), and revenue contribution (60%). Post-Launch: a balanced gender representation (reducing male-focused sponsorship to 60% and marketing and product design closer). Gender Balance: shows the 50% point, an ideal balance between male and female focus.
Project Budget
Breakeven: Sales: $409M & Units: 2,272,722
$409M represents less than 1% of Nike's current annual revenue, which makes it a feasible yet meaningful addition. Technology and software ($76.5): developing advanced sensors for tracking movement, building real-time analytics, and strengthening direct-to-consumer strategies. Press Samples (9.5M): high-quality prototypes, targeting athletes, promote inclusivity and sustainability. Recycling programs($95.5 M): Utilizing Nike Grind for materials in the product line, programs for collecting old shoes to repurpose into new products, and recycled polyester initiatives. Carbon Offset Initiatives ($23.8M): Use biodegradable or recycled materials for packaging and fund solar and wind energy projects for manufacturing facilities.
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Pro Forma
For my product, COGS decreases substantially after an initial high cost in 2023 ($195.96M). My product contributes positively to gross profit despite initial high variable costs. Not explicitly accounted for in Nike’s historical pro forma, my product aligns with consumer trends toward environmentally conscious products. With the introduction of my product, net income improves significantly in 2024 to $14.89B.
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Assumptions
Yearly Growth: Sales volume increases from 50,500 units (Year 1) to 202,000 units (Year 3). Cash revenue increases from $3.06M in Year 1 to $36.36M in Year 3. Cash flow decreases over time but remains substantial, highlighting a potential decline in growth pace after the initial launch. A weighted average cost of capital of 4% indicates relatively low-cost financing. The high beta (16%) and capital requirements show significant risk but can have a high reward. To Monitor: Develop contingency plans for potential risks like production delays, cost overruns, or slower market adoption.
