Nike Strategic Marketing Plan

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Nike Strategic Marketing Plan
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Nike Brand Foundation
The Nike Vision

• Bring inspiration and innovation to every
  athlete in the world.
• Maximize profits to share holders through
  products and services that enrich peoples lives.
• To lead in corporate citizenship through
  proactive programs that reflect caring for the
  world family of Nike, our teammates, our
  consumers, and those who provide services to
  Nike.

If you have a body, you are an athlete.
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Nike Brand Foundation
What We Do

• The symbol of sports and fitness.
• Market sports and fitness products under four
  brands names
• Nike, Cole Haan, Converse , and Bauer 
• Shoes- 44.00-150.00
• Apparel- 20.00-100.00
• Equipment- 20.00-300.00

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Nike Brand Foundation
Where We Want To Be

• Brand Positioning 1 in the Four major regions
  are US, Europe, Asia, Pacific, and Americas
• Increase Market share in China
• Sustain within current segments
• Continue focus on the young teen male around the
  world
• Increase share of 14.5 billion women's market
  for footwear and sports apparel

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Nike Brand Foundation
Major Stakeholders

• Nike Stockholders
• 23,000 Nike Employees
• Nike contact manufacturers
• Organizations relying on Nike sponsorship
• Loyal consumers

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Nike Brand Foundation
Stakeholder Analysis
Athletic and apparel Footwear segmentation
differs because it is more of a lifestyle trend.
Which consumers exhibit a need for Nikes
products? Are we reaching all potential
customers?
Targets Athletes of all ages, especially
8-40  Segmented by lifestyle and sport  Primary
markets are Experiencers, Makers, Strivers, and
Believers
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Nike Brand Foundation
Stakeholder Analysis

• Experiencers
• Young and impulsive
• Spend good deal of time on sports and exercise 
• Nike targets them by marketing to the athlete.
• Just Do It

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Nike Brand Foundation
Stakeholder Analysis

• Makers
• A lot like Experiencers with less resources
• Practical constructive people that enjoy
  physical recreation
• Interested in the quality and functional purpose
  of Nike products
• Relate to this segment through the commercials
  that depict people trying their hardest to reach
  goals

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Nike Brand Foundation
Stakeholder Analysis

• Strivers
• Trendy, fun loving and motivated by achievement
• Concerned about the approval of others
• Nike grabs this segment through endorsing their
  products with professional athletes
• Placement and Name

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Nike Brand Foundation
Stakeholder Analysis

• Believers
• Motivated by Ideals
• Predictable purchasers
• Tend to only consume products that are familiar
  and established 
• Attracted to Nikes proven quality, familiarity,
  and established name

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Nike Brand Foundation
SWOT - Strengths

• Brand name recognition, because Nike has been
  around so long, the brand is recognized and
  respected both internationally and domestically.
• Brand loyalty, Nike has consistently produced
  quality products that appeal to its consumers
  both internationally and domestically.
• Nike carries a wide arrangement of products with
  a large amount of options for personal
  preference.
• Strong international presence

More
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Nike Brand Foundation
SWOT - Strengths

• Number one footwear manufacturer in nine
  international countries with distribution
  centers both internationally and domestically.
• Ad agency with offices in three different
  countries in order to reach their target audience
  on a local level.
• Good financial standing, in the year ending May
  31, 2005 their revenue was 12.253 Billion
• Large advertising budget.

More
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Nike Brand Foundation
SWOT - Strengths

• Nike has an on-line store where custom shoes may
  be purchased they believe it is essential to run
  an on-line operation.
• Invests a large portion of their income into RD
• Donated over 34 million in cash and products to
  different charitable organizations.
• Developed a labor practices department, which
  pays close attention to the labor practice of
  third world countries

More
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Nike Brand Foundation
SWOT - Strengths

• Introduction of the Nike Environmental Action
  Team (NEAT) in 1993

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Nike Brand Foundation
SWOT - Weaknesses

• Competition is stiff making it difficult to get
  a larger piece of the market share.
• Decline in U.S. profits, a steady decrease of 2
  to 3 percent every year.
• Contract manufacturing of shoes to low-wage
  factories in the Far East makes Nike susceptible
  to laws, natural disasters, and economic problems
  abroad.

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Nike Brand Foundation
SWOT - Opportunities

• The athletic footwear and apparel industries to
  benefit from the currently strong economic
  backdrop in the United States.
• Spending is high and is expected to result in
  sales growth industry-wide. Athletic shoes and
  apparel has become a staple in wardrobes
  worldwide.
• Increasing numbers of people exercising and the
  trend towards casual apparel. Competition fierce
  at all levels within the industry, especially
  among the leaders.
• Security for the companies that have been able
  to create a niche.

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Nike Brand Foundation
SWOT - Opportunities

• Restructuring of operations will give many
  companies the chance to price products more
  competitively.
• One area in the industry that is ever changing
  is research and development departments can
  capitalize on the trends of tomorrow
• Increasing financial recovery in overseas
  markets offers area of expansion for the athletic
  footwear and apparel industry.
• E-tailing, or customer-designed Internet
  merchandise is eliminating the "middle-man"
  distributors and allowing for increasing
  profitability.

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Nike Brand Foundation
SWOT - Threats

• The industry has reached a level of maturity.
• Style and technology in athletic apparel and
  footwear has reached a leveling-off point - must
  differentiate their lines.
• Inflation is looming over the U.S. economy,
  which may spark a cutback in consumer spending.

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Nike Brand Foundation
Nikes Current Situation

• Continues 1 status in market world wide
• Supply chain improvements have reduced lead
  times and freight costs
• Revenue of 12.253 billion 8.7 increase from
  FYE 5/31/2004
• Swoosh one of most recognized brands in world
• Continues strong customer loyalty
• Addition of LeBron James to family of celebrity
  endorsers paying dividends

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Nike Strategic Marketing Plan
The Details
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Nike Brand Foundation
Marketing Objectives

• Have strong representation at global major
  sporting events
• Advertising at World Cup Soccer, The Super Bowl,
  MLB All Star Game, Masters, US Open, Wimbledon
  and NHL, NFL, MLB, NBA Playoffs.
• Maintain Brand associations with major sports
  stars
• Maximize associations with Stars, Michael
  Jordan, LeBron James, Lance Armstrong, and others
• Effective use of Corporate Event Sponsorships
• ie., Nike Tour Golf

More
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Nike Brand Foundation
Marketing Objectives

• Develop a website solely dedicated to the Nike
  brand
• Nike has multple websites all integrated by
  Nike.com
• Use Nike brand loyalty to increase sales.
• Create a product image that differentiates from
  the competition
• Swoosh become way of life.
• Increase product awareness through using an
  integrated marketing approach
• 30 second TV spots
• Full page magazine advertising
• Varying sized billboards

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Nike Brand Foundation
Marketing Strategies and Tactics

• Ambush Marketing
• Prominently displaying Nike Swoosh at Reebok
  sponsored events
• Tiger Woods wears Nike Products while pitching
  other companies
• Guerrilla marketing
• Pays athletes to use their products.
• Mass marketing
• Nike products or subsidiaries are sold at mass
  merchandisers such as WalMart, Kohls, and
  Macys

More
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Nike Brand Foundation
Marketing Strategies and Tactics

• Urban Tactics
• Free sneakers are delivered to inner cities ,
  creating a demand for more.
• Psychological Tactics
• Just Do It
• Outsize Tactic
• Use of extremely large advertising budget
• Large supply chain
• Multiple retail outlets

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Nike Brand Foundation
Media Plan Print - newspaper
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Nike Brand Foundation
Media Plan Print - magazine
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Nike Brand Foundation
Media Plan TV
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Nike Brand Foundation
Media Plan Digital Media
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Nike Brand Foundation
Media Plan Teams, sponsorships
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Nike Brand Foundation
Media Budget

• Print Newspaper 906,800
• Magazine 78,500
• Total 985,300
• Digital Media
• Television 9,895,000
• Web 375,000
• Total 10,270,000
• Sponsorship 6,880,000
• Total Advertising 18,135,300

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If you have a body, you are an athlete. And as
long as there are athletes, there will be Nike.