Markerting plan Nike PDF

Preview

Summary

Download Markerting plan Nike PDF

Description

CREATIVE BRIEF & STRATEGIC MARKETING PLAN Ravindu Dilshan Fernando UWS-MBA-G-SEP20-501 MBAIB11001 – September 2020 MARKETING MANAGEMENT

1/16/21

Contents Executive Summary....................................................................................................................................... 1 Task 1 ............................................................................................................................................................ 2 01. Creative Brief .......................................................................................................................................... 2 1.1 Background & Market Information..................................................................................................... 2 1.2 Product features and benefits ............................................................................................................ 2 1.3 Target audience .................................................................................................................................. 2 1.4 Reasons to advertise ........................................................................................................................... 3 1.5 Marketing Objectives .......................................................................................................................... 3 1.6 Communication Objectives ................................................................................................................. 3 1.7 Competitors and competitors offering ............................................................................................... 3 1.8 Information from Research................................................................................................................. 3 1.9 Key message ........................................................................................................................................ 4 1.10 Customer benefit .............................................................................................................................. 4 1.11 Type of campaign .............................................................................................................................. 4 1.12 Recommended Media....................................................................................................................... 4 1.13 Duration of campaign ....................................................................................................................... 4 1.14 Budget ............................................................................................................................................... 4 Task 02 .......................................................................................................................................................... 5 01. Organizational background and justification of the chosen segment .................................................... 5 1.1 Micro-Environment Analysis ............................................................................................................... 6 02. Segmentation & Marketing Persona....................................................................................................... 8 03. Targeting ............................................................................................................................................... 10 04. Product / Brand Positioning .................................................................................................................. 10 4.1 Marketing Mix strategy ..................................................................................................................... 11 4.2 Brand Prism ....................................................................................................................................... 13 05. Key Value Drivers .................................................................................................................................. 14 06. Value Proportion Canvas.......................................................................................................................15 07. Budgeting and setting timelines ........................................................................................................... 16 08. Control Measures.................................................................................................................................. 17 09. Conclusion............................................................................................................................................. 18 10. References ............................................................................................................................................19

Executive Summary With the increasing demands for new products in the market, it is very difficult for the company to maintain its goals and objectives which leads to profitable business. There are new trends going on every day in the market. Driven by the goal of satisfying customers with better quality fashionable shoes. Footwear is an increasingly large and diversified trade that is largely driven by various factors such as social income, lifestyle, fashion trends, etc. According to the Footwear Market, “Research indicates that the global footwear market is expected to reach US $ 530 billion by the year 2027. This report is all about to show you a marketing plan for Nike's Air Findmyshifter product; Referring to the old offerings, the report outlines the plan that outlines how Nike can bring a new product to the market. In relation to this, the report contains components of a comprehensive marketing plan including company and product analysis (Nike's current and future state) and market status or analysis; The report outlines Nike's goals and marketing strategies for the newly launched Nike Air Findmyshifter in terms of 4ps. The Nike Air Findmyshifter is designed for teens and working adults ages 15 to 45 in middle to upper social class. By looking at the market segmentation table, the marketing team has divided the groups from toddlers to older adults. They are categorized according to demographics, psychological, and behavioral planning. As the first task, creative brief has prepared on new product in order to give an idea on the marketing objectives and the process as a summary. And the second task a comprehensive marketing plan has transcribed to evaluate marketing objectives and positioning of product as well as budget timelines with control mechanisms. The financial budget for this predicted marketing plan is discussed by reviewing based on Nike's previous year's marketing expense figures.

1|P ag e

Ravindu Fernando - MBAIB1001 – Marketing Management

Task 1 01. Creative Brief Date: 16th January 2021

1.1 Background & Market Information Nike began its journey as Blue-Ribbon Sports in 1964 at the University of Oregon. NIKE, Inc. (Nike) to become the largest marketing company for sports shoes in the world, with a global market share of about 37 percent. In the United States, Nike products are sold through approximately 22,000 retail accounts. The company's products are sold worldwide in more than 160 countries. Nike operates both domestically and overseas retail stores, including Nike Towns and Factory Outlets. Nike has relied on continuous innovation in its product design and extensive promotion to support its growth in both the US and foreign markets. (Forbes, 2014)

1.2 Product features and benefits ❖ Recognizable Name - Nike is a common name in most parts of the world. Most of the people in our target market know and get acquainted with Nike and its high-quality products. Air Findmyshifters are very much appreciated by many shoe consumers. ❖ Fashionable - People who wear Nike Air Findmyshifters care about being trendy and 'trendy' within their peer group and family members. The shoe is made of genuine leather, has clear details and a stylish design. ❖ Customizable - Comes in a customer can change the shoes appearance by an application which connected to the phone. Shoe has a flexible display that customers can change the visual as their preference. ❖ Durable - Durable and high-quality shoe materials (leather, plastic, flexible screen) do not wear out or break easily. Your target market should feel that their investment in Nike Air Findmyshifters is worth the money. ❖ Comfortable - Nike Air Findmyshifters soles have cushioning and support; They do not create easily.

1.3 Target audience Nike's target audience demographics focus on relatively young & middle-aged men and women between the ages of 15 and 45, with their socioeconomic status "AB," or upper middle class to middle class. Psychic designers are athletes / athletes who lead "casual" lifestyles and care for their style and look, not only for themselves, but also for others (Nike, 2014)

2|P ag e

Ravindu Fernando - MBAIB1001 – Marketing Management

1.4 Reasons to advertise ❖ To attract new customers ❖ Keeps the consumer up to date ❖ To increase the positive image of the new product

1.5 Marketing Objectives This campaign is supposed to make the consumer know that Nike is not only a sportswear brand but a lifestyle brand that can be worn anytime and everywhere by anyone. The promotions are crafted to evoke feelings and needs in the consumer that can only be satisfied with Nike products and increase the market share of Nike by 4% by the end of November 2021.

1.6 Communication Objectives The goals of the connection with Nike Air Findmyshifters are to attract a larger audience and expand the demographic age group. Nike also hopes to expand psychology to people of all styles and trends, all over the world. Through this we hope to ensure that the majority of the world's population is aware of the shoes with shifting display by mid-2021.

1.7 Competitors and competitors offering ❖ ❖ ❖ ❖ ❖ ❖

Adidas - Footwear, clothing, and accessories Reebok - Footwear, clothing, and accessories Puma - Running shoes, apparels, and Clothing Converse - Casual & sports shoes New Balance - Apparels & footwear Under Armour - Athletic shoes, T-shirts, hoodies, pants, protective gear

Nike is far ahead of even the second biggest competitor, Adidas, and it's only growing in popularity. One of the reasons for Nike's popularity is its deep roots in Western countries, where it gets its major margins. (Mellery-Pratt, 2015)

1.8 Information from Research The company employed about 75,400 people around the world in 2020 and generated more than $ 37 billion in global revenue. (Nikebiz, 2010) The Nike region in North America generated the largest portion of the company's revenue that year; More than US $ 15 billion, the Oregon-based company's sneaker sector generated about US $ 9.7 billion of that amount. Nike sells nearly 900 million items of shoes, clothing, and equipment each year. 3|P ag e

Ravindu Fernando - MBAIB1001 – Marketing Management

1.9 Key message The Nike Air Findmyshifter is a classic shoe that has stood the test of time. This fashionable sneaker combines exceptional durability with increased comfort.

1.10 Customer benefit ❖ ❖ ❖ ❖ ❖

Recognizable name, Fashionable Customizable Durable Comfortable

1.11 Type of campaign Social Media or Digital advertising campaigns would be used. Especially on platforms where we can play the advertisements influencing the people using emotional campaign such as YouTube. Also, Nike will use their applications already connected with the sports equipment’s to the campaign.

1.12 Recommended Media As the majority of the advertising is through the Digital sources, the below are few of the platforms which Nike will focus upon. Pay per click advertising which is also referred to as PPC in the advert industry, can be tailored to pop up when specific terms are searched upon. Social media platforms, popular websites and mobile phone advertising.

1.13 Duration of campaign The advertising campaign is planned to be carried out for a period of two months prior to the product launch. This period of time would be used for carrying out campaign aggressively in order to create brand loyalty, top of the mind recall and awareness about the new product release.

1.14 Budget Approximately a budget of $525 million would be provisioned for in order to create awareness through advertising. Nike would also look into an introduction of a brand ambassador to increase the customer base. 4|P ag e

Ravindu Fernando - MBAIB1001 – Marketing Management

Task 02 01. Organizational background and justification of the chosen segment Nike is an American multinational company headquartered in Beaverton, Oregon, and is the leader in sportswear. The company is known as one of the "World's Largest Sports Footwear and Apparel Suppliers" and is in fact a major manufacturer of sports equipment. Nike is founded in 1964 in Oregon, US, by Bill Bowerman and Phil Knight, Nike was originally called Blue Ribbon Sports (BRS). The company was incorporated on September 8, 1969. In the year of 1971, the name of the company was changed to "Nike Inc", a name representing the Greek goddess of victory "Nike". (Kim, 2010) The company is engaged in the design, development, marketing and sale of sports shoes, clothing, equipment, accessories and services. It has 56,500 employees in 52 countries. Nike products are manufactured in 45 countries. Nike Products are sold in 190 countries by online, retailers & Nike stores . The Company's products are manufactured by independent contractors. Nike used to operate under a "guerrilla marketing" strategy to promote their products, a strategy and concept that they had to abandon and change once they overtook Reebok and became No. 1 in the industry. (Nike, 2012) Nike beat all of its competitors and distanced itself from it by acquiring and controlling new markets: the women's and overseas markets. The annual revenue of the company as of 2020 is $37.403B, it represents a 4.38% decline compared to 2019, due to the pandemic situation.

Source: Slide share 5|P ag e

Ravindu Fernando - MBAIB1001 – Marketing Management

1.1 Micro-Environment Analysis We can use the SWOT analysis to identify the more details of Strengths, Weaknesses, Opportunities and Threats of the Nike. SWOT Analysis

Strengths ❖ Strong Brand Awareness - Nike is one of the best brands in the world. Its Swoosh symbol can be easily identified by everyone. ❖ Side Brands – Nike's ability to maintain and enhance its side brands like Conversation and Hurley have enabled it to enjoy unparalleled success for decades.

❖ Low Manufacturing Cost – Most of Nike shoes are manufactured in foreign countries which have low labor and material cost. In year 2020, Nike produced 50% in Vietnam, 22% in China, and Indonesia produced 24%. (inc, 2007)

Weaknesses ❖ Poor Labor Conditions in Foreign Countries – In the past 20 years, Nike has been targeted in relation to poor working conditions issues such as forced labor, child labor, low wages, and poor working conditions. ❖ Dependency on US Market – Even after establishing itself globally, Nike is still dependent on the US market for sales and revenue. In 2020, about 41% of Nike's sales came from the United States, while the remaining 59% came globally. ❖ Lack of Diversity - Nike's over-reliance on sportswear or a lack of variety is a major weakness when the pandemic discourages physical activities, Nikes' revenue has declined dramatically.

6|P ag e

Ravindu Fernando - MBAIB1001 – Marketing Management

Opportunities ❖ Emerging Markets – Although Nike is already present in many foreign countries, there are still plenty of opportunities for Nike. This is because emerging markets like India, China, and Brazil are gradually booming. ❖ Innovative Products – Although Nike is doing innovative product there is still room for innovation with the expansion of technology. Nike has expanded its reach in technology as well as fitness and health products such as wearable technology that monitors physical activities, the first step in building innovative tech products.

❖ Acquired Start-ups which based on Artificial intelligence – Thanks to its enormous financial resources, Nike can acquire small or medium-sized companies. The Predictive Analytics Platform was recently acquired and defined to expand the capabilities of online sales and forecasting of customer shopping behavior.

Threats ❖ Counterfeit Products – Counterfeit products can drastically affect Nike's revenue and reputation. The company operates globally, and the risk of counterfeit products is higher. A number of dealers and retailers offer counterfeit Nike products at low prices. ❖ Increased competitive pressure – Competition and new emerging brands remain potential threats to the company although Nike dominates the sports industry.

❖ Economic Uncertainty – Regardless of the industry, all businesses are vulnerable to the negative impacts of the global recession. Indeed, Nike posted a 38% drop in sales in the second quarter of 2020 and it could drop further in the future if the recession occurs with the same strength that experts had predicted. (Statistica, 2015)

7|P ag e

Ravindu Fernando - MBAIB1001 – Marketing Management

02. Segmentation & Marketing Persona Nike not only sells a pair of shoes. Its selling story, lifestyle, and inspiration. Nike has a general target group for "all athletes", yet it carefully defines different market segments (Shank and Lyberger, 2014).

Demographic: Nike Air Findmyshifters targets on high income level. Although new product is a customized unique product, Nike segmented the product as a unisex product. Most of teenagers who are interested in sports, providing them with suitable sportswear. Nike's Air Findmyshifters retail market typically targets athletes and fashion-forward people from the ages of 15 to 45.

Geographic: People who live in big cities tend to work out more than rural people and are more willing to pay more for sneakers, and this can be seen by buying the habit in different regions. The main target of Nike Air Findmyshifter is American teens, it is Nike's first target market. After North America, Nike has targeted Western Europe and Asia Pacific.

Psychographic: They target families and teens who want to be sporty and trendy at the same time, or who maintain an active lifestyle. Nike focuses on the modern and unique lifestyle, the audacity to express the colorful style and of course the love for sports style.

Behavioral: Behavioral segmentation is another part of the market that is of great importance in setting effective goals for Nike Findmyshifter. Expectations for benefit from Nike products are undoubtedly clear. These products focus on the fact that Nike products make you feel athletic and thus make consumers feel athletic. Nike builds customer loyalty with Nike Findmyshifter as it does its other products.

8|P ag e

Ravindu Fernando - MBAIB1001 – Marketing Management

Rachel Jones – Marketing Persona

Bio Rachel is a Management Trainee of a tech Firm in Silicon Valley. She is finishing her master’s degree in management. Rachel thrives on social activities and she is enjoying going to music concerts, hiking, partying, Travelling and doing the beach activities. She is highly concerned on her appearance and the outfit. And she is a fashionable person who is interested on marketing trends on fashion.

Name

– Rachel Jones

Gender - Female

Age

– 26 years

Location – San Francisco

Work

– Management Trainee

Archetype - Jester

Personality

Preferred Channels

Introvert – Extravert

– 67%

Social Media

- 87%