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10 STEP Marketing Plan for NIKE

Tanya Marie LabradorOctober 2010

5 Steps for Part 1 (PTM and Positioning)

1. Nike PTM is active people who enjoy high-quality sporting goods, especially footwear.

2. Good association with no. 1 sports/ fashion brand

3. Adidas, Fila, Reebok, Puma4. Other brands don’t sell accessories such

as sunglasses, jewelries and apparel5. The market size is $19.2 Billion.

5 Steps for Part 2(Marketing Mix & Strategy)

6. Sports apparel (Footwear)7. Based on the basis of premium

segment as target customers8. Uses famous athletes as brand

ambassadors, TV ads, targeted advertising in print ads and sports events (sponsorships)

9. Distributed worldwide (Nike stores across the globe)

10. Market Leader – Nike is a global brand(enormous brand awareness)

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Positioning to the Primary Target Market

Part 1:Steps 1 to 5

1. Nike’s primary target market (PTM) are teens

Demographics (18-40 [largest are teens], M/F, social class AB, single/ married)

Lifestyle (active teens, athletic/ sporty individuals, casual lifestyle with fashionable taste)

Behavior (sneakers as fashion statement, fitness craze, multipurpose shoes, “hip”,)

I want to belong to the coolest group

I’m fulfilled when I feel important and recognized

I want the status symbol of being the

best

2. Nike PTM’s NWE

Teens need - To belong (social), be recognized (self-Esteem),

know they are important & self fulfilled (Self actualization)

Teens choose Nike over other brands because of ….Quality, Durability, Style, good reputation,

breakthrough design and technology of products, packaging, sense of being associated with the best, no. 1 brand;

Teens expect this when they use Nike products:Cool, Confident, Stylish, having a positive

attitude when they exercise/ workout

3a. Nike has several competitors

Direct: Adidas, Fila, Puma, Reebok, New Balance, And One, Umbro

Indirect: Non-athletic footwear brands, Crocs, K-swiss, Converse, Sketchers, Timberland

Variables: Age, Price, lifestyle, specific use, desirability of product, brand

Nike is #1 leader in the market: high priced product for 18-27yrs

Price/ Age Matrix

7-17yrs 18-27yrs 28-40 yrs 40yrs up

High price

Low Price

AdidasPuma

New Balance

Reebok

New Balance

Nike Kids

Fila

Price vs. Age Matrix

Nike

Puma

Fila

4. Nike positions itself as the no. 1 brand

Nike is the brand that top athletes use for teenagers and “hip” individuals that makes shoe better for everyone that offers a new style

NWE not being addressed: Other brands are still cheaper ; Substitutes

USP: Professional athletes from around the world use Nike even today

5a. Based on competitor data, sports apparel market is P13.3 billion

http://www.mcafee.cc/Classes/BEM106/Papers/2009/Adidas.pdf

5a. Based on competitor data, sports apparel market is P13.3 billion

http://www.wikinvest.com/stock/Adidas_AG_(ADDYY)

5b. Based on Nike data, Nike share is 33% from total market size of $278.4 billion

1. Nike sales is $18.6 billion

2. Market share is 33%

3. Total sports apparel market size is $278.4B as of 2007 (http://www.marketingcharts.com/direct/global-sports-equipment-apparel-and-footwear-market-nearly-280b-5548/)

5c. Consumer data indicates a size of $ 278.4 billion

Nike’s demand: 6,877,800,000 worldwide population,

33% market share, $ 278.4 B market size

91.8B (33% of market share)/ 22,000 stores = $4172.72 sales per store/ yr

5. Concluded that sports apparel market is 278.4 billion

1. Competitor data = $ 13.3 B

2. Company data = $ 18.6 B

3. Usage data = $ 278.4 B

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The Marketing Mix Strategy

Part 2:Steps 6 to 10

6a. Sports apparel industry is dominated by 5 major brands

6b. Product Description

Nike’s is known for their footwear. It has designed a whole line up of footwear for almost every sport.

Different types of shoes: running, basketball, soccer, cross training, football, tennis, golf

2.5c – 6y for kids 5.5 – 11 inches for women 7 – 15 inches for men

7. Price- Nike is 30% premium priced than 2nd leading competitor Nike Trainers = $80 Nike Shox = $73 Nike Air Max = $78 Nike Air Jordan = $150 Lunarglide = $85 - $100

Nike as a brand commands highpremiums and is often more expensivethan products of its competitors.

8a. Promo: Print Ads

8a. Promo: Athletes

8a. Promo: Catchy Phrases/ Taglines

8b. Competitor promo

8b. Competitor Promo: Print Ads (Olympics)

8b. Competitor Promo: Athletes

8b. Competitor Promo: “Impossible is Nothing”

8b. Competitor promo

Nike ads are powerful and positive that stays in everyone’s memory.

Their ads exude greatness and are loaded with look of triumph.

9. Nike products are distributed worldwide

Malls Retail stores Partnered stores Factory outlets Worldwide Online stores Shipping Cash and Credit transaction

10. Nike is a market leader

Nike’s main strategy rests on a favorable brand image. In order to maintain and sustain this image, the company makes huge investments in advertising and brand promotion.

It benefits from subcontracting their products to low cost manufacturers (cheap labor = high selling price)

Consistent and timely shipment of goods

Has an excellent, premium priced and excellent product distribution worldwide.

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SUMMARY

5 Steps for Part 1 (PTM and Positioning)

1. Nike PTM is active people who enjoy high-quality sporting goods, especially footwear.

2. Good association with no. 1 sports/ fashion brand

3. Adidas, Fila, Reebok, Puma4. Other brands don’t sell accessories such

as sunglasses, jewelries and apparel5. The market size is $19.2 Billion.

5 Steps for Part 2(Marketing Mix & Strategy)

6. Sports apparel (Footwear)7. Based on the basis of premium

segment as target customers8. Uses famous athletes as brand

ambassadors, TV ads, targeted advertising in print ads and sports events (sponsorships)

9. Distributed worldwide (Nike stores across the globe)

10. Market Leader – Nike is a global brand(enormous brand awareness)

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10 STEP Marketing Plan for NIKE

Tanya Marie LabradorOctober 2010