MKTG 1199 NIKE Marketing Plan

NIKE Marketing Plan

Group members:

Executive SummaryNike is one of the leading players in the sports market globally and in Singapore. Nike believes that sports is a healthy and positive expression of human nature and is a noble part of human experience.

This report provides a better understanding on Nikes marketing environment using P.E.S.T and S.W.O.T analysis to achieve Nikes overall marketing objective. Strengths and Opportunities are positive factors to actualize Nikes overall performance whereas Weaknesses and Threats are negative factors that affects companys overall performance.

Nike is well-known to teenagers and working adults. By looking at the market segmentation table, the marketing team have segmented the groups from young children to elderly. They are categorised according to Demographics, Psychographic and Behavioural.

In general, Nikes market shares are contributed from the extensive footwear, clothing, Nike gears and other product categories. The marketing team has set a target to raise Nikes current market share from current 20.8 % to 23.8% within one year.

This report also consist of detailed marketing mix and implementation plans. Marketing team will execute the action plan over a phase of 12 months. Within this 12 months, various promotions, contest and advertising will be carried out to amplify product exposure and creating a value that meets consumers perceived value.

Nikes marketing department will set aside 10% of the total profit for the marketing plan, promotion, advertising via magazine, radio, Television(TV) and organizing public events to reach out to a larger crowd.

Lastly, control plan has been the taken into consideration by measuring the effectiveness of the action plan and prepare for any unexpected event or problems. This is to ensure that Nike can achieve the marketing objectives by the end of 12 months.

Table of Contents

1. Background information32. Situational Analysis52.1 Analysis of Competitors52.2 PEST Factors62.3 SWOT analysis82.4 Porters 5 Forces Model103. Objectives114. Selection and Target Market124.1 Marketing Research (Please refer to Appendix 4.1)124.2 Market Segmentation124.3 Consumer Buyer Behaviour134.4 Target Market Strategy155. Positioning165.1 Positioning Perceptual Map165.2 Positioning statement176. Strategic Marketing Mix186.1 Product186.2 Price226.3 Promotion256.4 Place307. Market Implementation and Evaluation337.1Market Implementation337.2 Evaluation and Control408. Conclusion439. Reference list4410. Appendix47

1. Background information

Company History and Background

NIKE, Inc. (Nike), formerly named Blue Ribbon Sports (BRS) was founded by Philip Knight and Bill Bowerman in January 1964.

In 1971, Nike established as an independent company after their partnership with Onitsuka broke out due to disagreement. Early 1980s, Nike finally surpassed the German Brands such as Adidas who previously dominated the US footwear market. Rapidly by 1982, Nike has become the leading supplier for athletic footwear in America.

Over the past decades, Nike grew their business from an athlete shoemaker to selling of sports apparel, equipment, accessories and services. Today, Nike continue to specialise in designing, developing, marketing and selling of authentic and high quality products and services.

As of 2014, Nike has a total of 858 retail stores in Europe, China, Japan and other Emerging International markets. The global revenue of Nike rose 10% to $27.8 billion. Nikes stable growth and exceptional performance are attributed from their break-through product and service innovations, on top of their strong connections with the consumers.

Company Mission Statement

Nikes mission statement is to "Bring inspiration and innovation to every athlete* in the world. *If you have a body, you are an athlete. Nike believes that sports is a healthy and positive expression of human nature and is a noble part of human experience. Nike play a part to create exceptional experience for athletes through creation of innovative products that enhance performance. The asterisk in mission statement was quoted from founder Bill Bowerman. As Nike is passionate about what they do, the quote from Bowerman speaks up to the removal of barriers, refusal to accept the limitations of others, the right for everybody to play and compete.

2. Situational Analysis 2.1 Analysis of Competitors

2.2 PEST Factors

Political FactorIn Singapore, sound law and regulations are in place to protect the interest of businesses. Besides that, government has a set of robust policies including trade regulations, tax guidelines and employment laws which are favourable to Nikes daily operational activities. Therefore, political unrest and terrorism does not contribute to Nikes area of concern. Credited to the vigorous policies, strong economic growth in Singapore largely benefit Nikes profitability and sustainability. Being a shoe designer/maker, Nike is not affected by any restriction imposed by government on controlled items in Singapore.

Economic FactorDuring an economic downturn, consumers purchasing power and confidence are reduced. There might be an impact in currency and exchange rate, marketplace will be affected leading to a change in consumer purchasing patterns as people spend less on branded goods during bad times. Nike might also face problems such as increase of prices in raw material and labour cost. Singapore inflation rate on average is 2.8%, which is relatively healthy and therefore the chances of facing any economic downturn is generally low.

Social FactorMillennials (age up to 17), mostly students, are likely to draw their allowance from parents. Their personality tend to be conservative and conventional.

Generation Y (age 18-29) are either schooling or dependent on their parents for income or working adults with full time career. Their lifestyles are generally motivated by self-expression and always seeking for change. Their personality are often impulsive and enthusiastic.

Generation X (age 30-50), mainly the working adults, are more motivated by the desire to achieve achievement and are more likely to spend more time on family and career. They have the same personality as Generation Z, however more conservative and conventional.

Baby boomers (50 and above), are moving into retirement. Their personalities tend to be more conservative and practical as compared to other groups. They are more likely motivated by ideals.

Technology FactorSingapores innovative culture and world class IT infrastructure makes it attractive for foreign investor and local market business. Almost every household that have access to internet are highly reliant on the IT infrastructure. Since Nike has strong capital foundation and capacity to invest in advanced technology, Nike came out with an application. The Nike application grants consumers access to the information and the availability of its products. Nike also makes use of social media platforms like Twitter, Facebook and YouTube to reach out and promote their latest products to consumers.

Environment (Customer) FactorThere is an increasing growth towards Saving the environment, saving the world products and consumers are welcoming the Green idea. Many companies practises reduce, reuse and recycle method, pollution to the environment is therefore minimized in the process of manufacturing. Due to different culture in Singapore, they are concerned with the materials used on the products, uses of animal skins like pig are strongly discouraged.

2.3 SWOT analysis

StrengthNike is recognized to be the market leader and one of the most influential sports brands in the sports shoe industry. Nike places large emphasis on their Research and Development by delivering innovative products which are competent to meet the needs of the consumer. They have no cash flow problems and are able to set aside large amount of money for advertising and endorsement yearly. WeaknessNike has never done TV advertising in Singapore, hence presence of TV media advertising might be a challenge. If there is any financial crisis, it causes the consumers to cut down on purchase on Nike branded running shoe, instead consumers will opt for an affordable substitute. This will therefore affect Nikes overall performance.

Opportunities Nike is well-known and generally well accepted by consumers around the globe. Nike can capitalize on its established brand name and expand its product lines to generate more income and increase the companys overall profit margin. More people, especially the women are adopting a healthier lifestyle and investing for better quality pair of running shoes. In the 90s, there is a huge increase for women's shoe market share making it one of the most attractive and profitable market. Nike can make use of social-networking platforms to increase awareness among consumers.

ThreatsThe sports shoes market is very competitive because of other competing brands like Adidas and Reebok. With increasing domination in the market, competitors may follow closely to Nikes new launch and product ideas. Substitutable designs from competing brand are likely to affect Nikes original products and adversely impact the image of Nike. Some price-sensitive consumers are likely to look for cheaper alternatives for sports shoes that provides similar functions as Nikes which might affect Nikes overall profit in the long run.

2.4 Porters 5 Forces Model

3. Objectives

Corporate Objectives - Nike is a Growth CompanyNike focuses on the long-term financial growth and sustainability across the various product brands and businesses. In the Global Growth Strategy released on May 2010, the forecasted revenue for Financial Year (FY) 2015 was $27 billion based on growth expectations from its wide range of portfolios from Nike and other subsidiaries. With exceptional performance, the target of $27 billion was attained in 2014 fiscal year end. Nike believes there is absolutely no lack of growth opportunities and they have never been stronger in the marketplace.

In FY 2015, Nike will continue to strive towards achieving another milestone - To increase global revenue growth by 10% over a period of one year. Nike is fully committed to drive sustainable and profitable growth for the shareholders at all times.

Marketing Objective - Nike Singapore To achieve the targeted global revenue growth of 10% by next fiscal year, Nike Singapore plays a crucial role in contributing to the results. Having done the market analysis, Nike Singapore realised there is further potential for womens running shoes market contributed from the rise in health-conscious females in Singapore. Based on FY 2014 Annual Report, Nike global has seen an increase in revenue of womens footwear line up by 11%. With this probable trend, marketing teams in Nike Singapore will penetrate into the womens market on existing Nike Air shoes through various strategies.

Main marketing objective:

To increase the existing female market share of Nike Air by 3% in fiscal year end 2015

4. Selection and Target Market4.1 Marketing Research (Please refer to Appendix 4.1)4.2 Market Segmentation

4.3 Consumer Buyer BehaviourConsumers buyer behaviour is influenced by four major factors, cultural, social, personal and psychological. It is vital to understand buyers behaviour which helps assess each markets potential and better constructing suitable marketing mixes for the targeted segments.

Cultural FactorsCultural factors are mould by the society and environment. Quality standard of living is highly sought after in the competitive Singapore culture. Where everyone wants the best for everything. When wants are backed by purchasing power, it turns into demands. Thus Nike should focus on creating high quality shoes for consumers to meet the expectation of being the best.

Social FactorsSocial factors are influenced by family, peers, opinion leaders and aspirational targets. Consumer may be easily influenced by people in the social circle which might affect their motivation in purchasing a product. It is important that Nike reach out to opinion leaders; an example would be to use bloggers as word-of-mouth influence to their followers. Nike also have excellent brand ambassador such as Maria Sharapova which would be an ideal aspirational target for females.

Personal FactorsPersonal factors encompasses age, occupation, lifestyle and personality. Individuals of different age group or occupation act differently and have different preferences. An individuals brand preference is due to brand attachment, familiarity or habits. It is key for Nike to position themselves in line with the personality of the targeted segment so that the consumer will feel connected to the brand. In this marketing plan, Nike female running shoes are positioned as the coolest, most fashionable footwear.

Psychological FactorsA persons buying behaviour are influenced by attitudes and beliefs, motivation, perception and experience. Nike being the market leader, should take advantage of this situation to ensure that confidence and quality is deeply embedded into the beliefs and attitude of consumer.

4.4 Target Market Strategy

Target marketAccording to the market research analysis and segmentation table, females aged between 18-29 were chosen as the target market. This group of consumers are usually employed and have relatively high spending power, which can be a good motivation to spend on their wants. They can be categorised as an experiencers and strivers according to Values, Attitudes and Lifestyle (VALS) framework.

This segment fit Nikes Brand personality perfectly which will allow them to feel connected to the brand, aiding brand attachment and ultimately turning into opinion leaders for future customers. By narrowing into this target market, it furnishes Nike with an edge over other competitors and avoid unnecessary marketing costs.

5. Positioning

5.1 Positioning Perceptual MapPrice vs Perceived Quality

Price vs Perceived Aesthetic Appeal

The perceptual maps illustrates Nike against other competitors in the market based on price, quality and aesthetic appeal. Nike holds the largest market share even at such high prices; the survey results concludes that consumers look for quality and aesthetic appeal in a running shoe, this proves that consumers are willing to pay higher price for better perceived quality and aesthetic appeal. The primary aim for Nike is to maintain the current positioning in the minds of the consumers by continually upholding the integrity of the quality and originating aesthetically pleasing designs that will revolutionize the fashion trends in the footwear market.

5.2 Positioning statementTo modern and health conscious ladies who need to maintain fitness and body figure, Nike Air is a pair of revolutionary and sophistically engineered running shoes that provides best performance bundled with aesthetic appeal.

6. Strategic Marketing Mix6.1 Product

Core ProductSince establishment, Nikes main goal is to provide athletes with best quality shoes. Nike Air provides comfort, performance and superiority experience for athletes when running, walking and even playing sports.

Actual ProductNike Air features includes shoe technology such as cushioning and light-weight, fashionable and useful design, high quality materials used, highly perceived Nike brand image and ecological packaging of final Nike Air products. All these attributes must be combined to deliver core benefits.

Augmented Product Nike Air offers more than just footwear with actual benefits and features. Nike also provides customers with satisfying after sales service. For instance, concerning to items exchange, refund and other relevant queries, consumers can approach any Nike retailers, distributors or resellers for a swift response. In addition, Nike website has also introduced value-add service by allowing consumers to customise their trainers and easily source for ideal footwear using smart filters.

Classification of productsProduct categories of Nike includes athletes footwear, sports clothing, equipment and accessories. In this marketing plan, the focus will be on Nike womens footwear line, Nike Air. Nike Air is classified under specialty products and often noted as items which is differentiated in the market and is highly sought by consumers.

Product Quality and FeaturesProduct quality is one of Nikes positioning tools in the marketplace. Whereas Nike product features has helped to differentiate Nike from its competitors, Nike always uphold the mission of producing quality products that will bring benefits to the wellbeing of consumers and satisfy their needs. The Nike Air footwear brings about both quality consistency and level. Nike is consistence to the conformity of quality products and guaranteed products are manufactured with highest quality check and free from defects. However, in any case consumers are faced with defective goods, Nikes exchange and refund policies will be available across retailers, distributors and resellers. Nike Air has remarkable product quality level, ensuring every piece of product delivers high performance for the athlete. Accompanied with performance of Nike Air, there are key features in which makes Nike Air stand out in the marketplace. The key specifications are mentioned as below.

SpecificationsPerformance - In the midsole beneath the heel, forefoot or in both areas, lies an air sole unit which is made up of pressurized air inside a tough but flexible bag. Nike Air cushioning makes the shoe lighter yet doesnt compromise on quality performance.

Features - Nike Air shoes provide an array of choices to cater to the different needs and want of the consumers. They can be categorized into width, type of floor surface, the purpose of the shoe and lastly the type of shoe. The cushioning in Nike Air helps to prevent injuries by compressing itself in the impact of landing, and returns to its original state in time to prepare for the next landing.

Additional features - All Nike footwear are embedded with small transmitter device that allows customers to track their exercise performance via Nike+ application. Nike+ is a collaboration between Nike and Apple to create a different experiences for the athletes and those seeking a healthier lifestyle

Product Style and DesignIn order to grow the women business, it is important for Nike to value-add through style and design that appeals to women. Nike needs to constantly introduce new designs or versions that cater to the fast changing preference of women. The frequency of newly launched products will definitely be higher than of other segmented market. Women are constantly searching for new style and design to match their likings. It is therefore important that Nike provides wider variation of colours and styles periodically. Nike recognised that in a womens market, there will be no performance without style. Nike promises and delivers a variety of style that will cater to the women market.

Aesthetic featuresThe Nike Air shoe comes in different design and colours to appeal to ladies, where fashion is not only limited to clothing. Footwear places an important part in fashion where female tend to pay close attention on the matching of their outfit with their shoe. One of the plus point of Nike is that customers are able to customize the shoe colour for each design, subjected to availability.

Branding StrategyNike acquired a strong brand positioning since start up. Nike positioned its brand name associated with performance, and in Greek, Nike refers to Goddess of Victory. Performance is what Nike promises to deliver. The various Nike product lines are named after product benefits. For instance, Nike Air will give consumers the idea of light-weight (air) and performance. Nike also forged deep connection with the consumers by creating beliefs and values. Focusing on emotional branding, Nike inspires consumer loyalty through advertising revolving around success, heroism and triumphant. In addition, the slogan Just do it encourages everyone to take the next step up. Nikes strong branding strategy enables its sub product-line Nike Air in occupying a substantial womens market share.

PackagingPackaging is a significant part of products which will affect consumers choice. Since 2011, Nike introduced a shoe box that is fully recycled, recyclable, lighter weight and stronger. With the increase in awareness of environmental issues, Nike wants to reach out to the consumers by playing a part in sustaining the ecology. To attract females who are typically more interested in style and colour of packaging, Womens Nike Air will propose various bright colours and patterns shoe box that appeal to consumers.

Product MixAs a leading brand leader, Nike has a wide range of product mix. There are 3 major product mix width - shoes, clothing and gear. The product mix width can be further broken down into running shoes, basketball shoes, running clothing, football clothing and such. In the respective product line (width), the product mix length varies with different number of sub-line in Nike. For running shoes, the product mix length totalled up to 7 sub-line - The product mix depth refers to number of versions offered by each sub-line. For instance, Nike Air currently have a product mix depth of 24 versions of shoes. Nike Air is a line extension of Nike footwear and is part of the product mix length.

Product Life Cycle StrategiesNike Air shoe goes back a long time in history as it was first produced in 1979. Since then, newer designs and improvements has been made to last till today, although it is one of the oldest product line launched by Nike, it remains popular and well received. As there are also competitor brands that are also releasing new shoes with improved features and design, Nike needs to be able to put across to consumers on why is Nike Air shoes differentiated from other brand. The price range of the Nike Air female running shoes is not going to decrease anytime soon as the market for female running shoes has just picked up

Nike Air shoes belong to the maturity stage, where it has been recognized and accepted by consumers in the market. Advertising and sales promotions have to be done in order to entice consumers into purchasing the product. Organizing campaigns and marathons are ways for Nike to capture the attention of consumers.

6.2 Price

Pricing strategy is something determines the profitability of the business. Compared to other running shoe brands, Nikes female running shoes are priced on the higher end, which in turn shows how much emphasis Nike places on quality.

Price Ceiling vs Price FloorNike will sets its price for Nike Air female running shoes above the production cost so as not to suffer any losses that will incur from the sale of each shoe, and also pricing it such that it does not exceed the consumers perceived value of the product.

Value-based PricingNike focuses on consumer needs and value perception. In terms of branding, Nike is well known as the global athlete footwear leader. Hence, Nike Air will adopt the valued-based pricing on the female running shoes as consumers have grown loyalty towards Nike brand, high performance and quality. Nike Air will take up value-added pricing strategy as the high price is justifiable by the key features that can be differentiated from marketplace. Type of market - Monopolistic Competition, Price InelasticityNikes strong brand image help differentiate Nike footwear from the rest of competitors. Nike have always been perceived by consumers as premium footwear brand that delivers best performance and experience. Nike therefore belongs to the monopolistic competition as Nike is able to differentiate products to buyers. As consumers commonly purchase Nike sports shoes mainly for its brand image, prestige status and quality, Nike Air womens running shoes is considered to be inelastic in demand. In other word, consumers are less price sensitive towards Nike products contributed to its unique features and the image of exclusiveness and superiority.

New product pricing strategy - Price SkimmingNike also practices the price skimming strategy which is also known as higher pricing where newly released female running shoe for Nike Air are set at a high price (price is set at whole number, to end with .00) as it is an indication that Nike is coming up with new designs and are making innovative changes. Nike practices this strategy because of the confidence it has with its image among consumers as well as the quality of the shoe. When the shoe is first released, innovators will usually be the ones who are prepared to pay the price for the shoes. When a new series of shoes is ready to be released, there will be a reduction in price for the shoes (price is set to end with .99) in the current market, therefore leading to more consumers being attracted to the price fall and the thinking that anything ending with .99 is much cheaper than .00, which can be called as psychological pricing. Till this point, this strategy has been working very well for Nike and this proves a point, that Nike has been consistent with their products, which is what consumers are looking for in a product.

Product Mix Pricing Strategy Product line pricingRespective lines have distinct features and functions that cater to different consumer groups. By matching the product benefit and features to the price, Nike product mix will result in different price ranges. Nike Air will adopt the product line pricing, which is the common pricing strategy of Nike. Product line pricing will set price steps between product line items, which is noticeable from Nike website. In this marketing plan, Nike Air will be targeting women aged 18 to 29. This is a wide target group where some might not have join the workforce yet, while some may have worked for a few years, earning medium range income. Therefore, Nike Air will set at a wide price range of $90 to $290, considering Nike Air benefits

Price Adjustment Strategy - Promotional pricingPrice adjustment on products will be inevitable if product become less popular or when new products are launched. As a leading brand in the market, Nike typically tries not to reduce the pricing due to high quality of products and superior brand image. However, depending on the situation, Nike will propose temporary price drop of certain Nike Air products to increase short-run sales during special events. Special events could be campaigned to raise awareness for certain social issues, marathon sponsored by Nike or outdoor advertising event that will help promote Nike Air from the targeted group. Also, in certain situation where newer modified products are launched, older versions have to be publicize through promotional pricing before inventory become obsolete. The price adjustment strategy will be consistent across retail stores, partner distributors and resellers in order to capture the larger market.

6.3 Promotion

Integrated Marketing CommunicationsDue to the shift towards a richer mix of media and communication, many companies have identified the importance of Integrated Marketing Communications to increase marketing effectiveness. It is the approach to coordinate the various promotion methods and integrate clarity, consistency and maximum communications impact. The main objective of the promotional strategy is to enhance the brand awareness and increase market share through a series of promotional mix which includes advertising, sales promotion and public relations.

Advertising

Advertising ObjectiveIt is to build brand preference and to maintain customer relationship with the existing customers. The advertising strategies target the female consumers aged 18 to 29, who are keeping up with the latest fashion trend in the market while pursuing a healthy lifestyle. The objective is to increase the reach to 75% of the target market for the first 6 months of advertising campaign. The advertising tools used would aim to create a clear and consistent message to the target group and get them to respond.

Television (TV) and Cinema CommercialsTV viewership is high in Singapore. MediaCorp is currently the most popular home-grown channel in Singapore. It has an average weekly reach of 65%. TV advertising is effective because it reaches a large audience and allows the marketing team to target specifically. Since the target group of consumers is aged 18-29, it is assumed that they are either students or working adults. TV commercials will be placed at specified time slots such as in the evening and/or at night where the target group has already knocked off from work or be at home after school.

Studies have shown that moviegoers experienced heightened emotional responses when viewing the advertisements in a cinema setting. In cinema theatre, the screens are bigger and advertisements tend to stretch over a longer duration. The level of engagement of audience is high for commercials in a cinema setting. Therefore, the idea is to seek to reach the target audience at certain movie shows, generally films that appeal to the target group.

Clear Channel BillboardsOn average, people spent about 21% of their day travelling and it is impossible for consumers to miss a billboard. To reach out to the larger mass, Clear Channels advertising services would be engaged over a period of three months and have them advertise Nike Air on billboard at bus shelters. The advertisements would be situated in high human traffic area such as Orchard Road.

MagazinesMagazine is an effective tool for word-of-mouth among consumers. Consumers made the choice to purchase the magazines. Therefore they would be more open and receptive to what they are looking and reading. Cleo, 8 Days and Her World are magazines brands that would interest the target consumers group, advertisements would be placed in them to appeal to the target consumers.

Social MediaLiving in a technology-savvy society, consumers would want to receive information on the go. An all-year round active advertising approach on the Internet would be employed to reach out to the targeted group. There will be frequent updates about the brand and Nike products on Facebook, Twitter and Instagram (@nikewomen). It is not just creating awareness about the brand and products but also about communicating with the target group of consumers. Consumers may also share their product experiences and give reviews about their Nike buys on these media platforms, forming a community of their own.

It is beneficial to hedge on the popularity of some bloggers, who act as opinion leaders in the field of fashion and fitness. The message that the marketing team would like to get across is that Nike Air shoes serve its purpose as a stable balanced running shoes and at the same time it does not lose its fashion touch. The team could sponsor these opinion leaders with Nike Air shoes so that they could promote and publicise the product on their social media.

Running Events and CampaignsTo make female consumers feel exclusive, a female running event Nike Womens Run could be organised on every International Womens Day to celebrate the achievements of females. In addition, it is important to attach positive experiences with Nike brand. The footwear for the next Colour Run could also be sponsored to increase Nikes brand awareness.

Sales Promotion

Online ContestsIn the effort to increase publicity and consumer engagement, online contests will be organised through Facebook and Instagram from May 2015 to April 2016. Consumers will have to state the reason(s) why they would like to win and own a pair of Nike Air on their social media. A winner among the contestants will be chosen and she may redeem her prize at any Nike retail stores in Singapore. The purpose of the contest is to increase the exposure and remind consumers of the brand.

DiscountOn normal occasion, there would be not be any discounts or offers generally, so as to retain the value of the brand and products. However during sales seasons, a 15-20% discount off the second pair purchased may be introduced to encourage and boost sales. This would encourage consumers to either buy more or purchase their Nike shoes with another family or friend.

Public Relations

Public AffairsOne of the ways to build a positive corporate image is to care for the national community. Though Nike is a profit-driven company, it will like to contribute back to the society. A new project will be initiated, it will be in collaboration with Running Lab, to collect used running shoes that are still in good condition. The shoes collected would be donated to selected charities in other countries. To encourage people to participate, every donor would receive a $15 voucher whenever they make a shoe donation.

As mentioned above, Nike Womens Run a running event will be organised every year. Nike will bear all the costs and expenses. All registration fees collected for the run will be donated to Singapore Woman Council Organisation(SWCO) to help women in need.

Press RelationsIt is important to maintain good relationships with the media and press agencies. Nike wishes to be as transparent as possible to the public. Therefore, it is necessary for the marketing team to maintain relations with various press agencies from time to time, keep them updated on the new developments products, make announcements through them and accept their interviews.

Media Calendar (May 2015 to April 2016)

6.4 PlaceChannel LevelsThe marketing team would be adopting an indirect marketing channel, where the main types of intermediaries engaged would be the importers, distributors and retailers, including the online retailers.

Channel BehaviourAs the marketing goal is to increase Nikes brand awareness and market share, Nike would need to increase the products accessibility and availability. In order to reach diverse customer segments, the distribution of Nike Air would be through multi-marketing channels (hybrid). In the target group of customers, we would split them into two different segments - online shoppers and walk-in customers. Nike sells through a network of distributors and value-add retailers to their consumers. Consumers may also buy directly from Nike online store and have their purchases delivered to their homes with convenience.

Intensive Distribution Strategy and Channel InnovationProducts accessibility and availability have to increase in order to expand brand awareness and market share. Nike is well-established in Singapore with many stores island-wide. To have a wider reach to the consumers, collaboration with Fitness First and the gymnasiums in the five polytechnics in Singapore will be carried out. Consumers who sign up for Fitness First membership package will enjoy discounts perks when they purchase Nike Air. This is to encourage purchase of Nike Air.

Nike would also increase its reach to consumers by setting up a Nike outlet near the sports complex in the five polytechnics. Apart from Nike Air, the store would also sell several basic sportswear and accessories. Prices offered would be slightly lower than market prices for the students.

Costing and Sales (Budgeting)

Monthly Estimated Cost and Profit

7. Market Implementation and Evaluation7.1Market Implementation

Overall Approach to ImplementationHaving done the marketing analysis, assessment of target market and enhancement to marketing mix, implementation and control follows. Marketing team came up with a comprehensive tactical plans to guide the smooth operation of proposed marketing strategies. The tactical plan spells out specific details on required actions, department involved, estimated budget and tentative date of execution from period May 2015 to April 2016.

Detailed Tactical Plan (Action Plan)

Period: May 2015 to April 2016

7.2 Evaluation and Control

Regular evaluations will be conducted to ensure that operations run smoothly and meet requirements and objectives. This is to ensure that the marketing team is able to achieve the objectives on time, and at the same time, discover and solve any threats or problems.

Customer FeedbackOne of the controls put into place is to monitor the customer feedbacks through surveys and polls. Marketing team can reach the customers indirectly through conducting online polls that asked specific questions relating to recent marketing plan. Alternatively, surveys can be carried out through individual interviews by email, phone or in person. Adjustment can be made to the marketing plan according to the data collected.

In order to evaluate the marketing plan, the marketing team will work closely with several departments to gather customers feedbacks. The Frontline staff will be able to provide first-hand feedbacks from the customers as they are the first point of contact. The Customer Services Department presents the dissatisfactions and queries raised by the customers, allowing the marketing team to identify the problem effectively and take corrective actions to minimize damage. Sales Department supplies the sales figure collected which indicates the markets response. Monthly meeting will be conducted to review and address the feedbacks gathered.

Audits and ReviewsQuarterly internal audit will be conducted. A follow-up review will be presented to ensure that issues can be highlighted early and ironed out timely. Audit serves to monitor and examine expenses. With regular audits performed, the marketing team will be able to identify and control the expenses spent.

The internal audit will be able to evaluate whether the marketing plan has achieved the budgeted costing. During the internal audit, a comparison of actual accounting and budgeted figures will be review. Evaluation of the actual cost breakdown will be indicative for the marketing team to identify the areas that are planned accurately and inaccurately. These will aid them in the future marketing plan.

External audit will also be performed at the end of the project. This is to examine the overall financial accounts and provide an opinion on whether the accounts are reflected accurately. This enables the management to have a reasonable assurance in the operation of marketing plan.

7.3 Contingency Plan

Marketing plan can be well drafted but there is a possibility that the plan may differ from expected. Therefore it is important that the marketing team develops a contingency plan that addresses unexpected outcomes resulting in deviation.

Deviation in Media ExposureMedia calendar have been planned out. However, the Press may not be able to accommodate Nikes timeline due to conflicting schedules. This may occur due to prior contracts between Press and other firms. Therefore the marketing team will need to be flexible and think on the feet. Rescheduling is inevitable.

Response for Nike Womens Run

Overwhelming Response One of the outcomes that may cause deviation from plan could be having an overwhelming response of participation from the target audience. The Nike Womens Run has a limited budget, therefore it will not be able to accommodate more participants if it exceeded the forecasted quota. In order to tackle the issue, the marketing team will consider increasing the number of slots.

Underwhelming ResponseIn contrast, the response received may be way lower than expected. This will force the marketing team to make a decision whether to continue or cancel the run. Whichever the decision is, the budget will not be applicable as the response differs from speculated.

Disapproval of distribution locationOne of the potential issues that may surface will be the disapproval from the five polytechnics on setting up Nike retail outlet within the campus. With this rejection, the marketing team must be prepared to scout for alternative locations that have similar target audience.

Similarly, if Fitness First were to reject or halt the collaboration, the marketing team will have to be prepared to source for a replacement such as True Fitness and California Fitness.

8. Conclusion

Nike is a well-established brand; a dominant player among its competitors. However, competition in the sports industry has been aggressive due to increasing numbers of competitors entering the market. To overcome the challenges in the combative industry, it is important for Nike to improvise its marketing strategies to retain existing customers and attracting new ones. To remain as the market leader in the industry, Nike has to differentiate itself from their competitors. The proposed marketing plan is designed to leverage on future opportunities. After extensive market selection, Nike plans to focus on enhancing existing market - the female segment of age 18-29.

The marketing plan proposes to achieve an increase of market share by 3% in the existing female market through various strategies of the marketing mix. Nike is confident in achieving an increment of sales from 20.8% to 23.8% within 12 months period. The product strategy highlights Nikes product quality and bundling with good after service.

In addition, Nike plans to offer a price that the target group would find it affordable and value for money. As for promotion, Nike utilises Press, social media and several other platforms for constant exposure to the market. Through exploring strategic channels of distribution and collaboration with new partners, Nike wishes to increase its exposure in the market and attract the target group. The overall promotional mix is to retain Nikes position as market leader.

6143 WordsExcluding Titles, Headings, Table of contents, Reference and Appendix

9. Reference list

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10. Appendix

Appendix 4.14.1 Marketing ResearchMethodologySurvey research has been conducted at Bishan stadium by surveying frequent joggers over 3 days with a total of 30 respondents. By exploring personal preference, valuable insights are gained to what a consumer really lookout for in a running shoe.

ResultsThe results (Appendix 4.1.2) revealed that 56.67% of the sample were female (Appendix 4.1.2a). Majority (50%) comes from age group 18-29 years old (Appendix 4.1.2b). 40% with disposable income of $1000 or more (Appendix 4.1.2c). Aesthetic appeal appears to be the most popular and decisive factor for a running shoe (Appendix 4.1.2d). 47% agreeing that the price would not affect their buying decision (Appendix 4.1.2f).

AnalysisAfter a comprehensive analysis of the results, It is inferred that majority of the health conscious individuals that exercise regularly are females aged between 18-29 (Appendix 4.1.2a-b). As most of them are working adults, their average disposable monthly income is mostly above $500(Appendix 4.1.2c). Aesthetic and Comfort appears to be popular amongst the males while females favoured Aesthetic and Durability (Appendix 4.1.2d-e). Overall, price is not a decisive factor for the females but the males exhibits otherwise (Appendix 4.1.2f-h).

Back to Selection and Target Market

Survey results (Appendix 4.1.2)BACK

(Appendix 4.1.2a)

What is your gender?Male13

Female17

Total30

(Appendix 4.1.2b) BACK

What is your age?Below 176

18-2915

30-508

Above 501

Total30

(Appendix 4.1.2c) BACK

What is your disposable income/allowance per month?$0-$1001

$101-$5006

$501-$100011

Above $100012

Total30

(Appendix 4.1.2d)BACK

What do you look for in a pair of running shoes? (you can choose more than one)

Cheap Price8

Lightweight5

Aesthetic Design20

Comfort11

Durability16

Total60

(Appendix 4.1.2e)BACK

Breakdown between gendersWhat do you look for in a pair of running shoes? (you can choose more than one)MaleFemale

Cheap Price51

Lightweight23

Aesthetic Design715

Comfort74

Durability511

Total2634

(Appendix 4.1.2f)BACK

If you had set your eye on a particular model, will the price affect your buying decision?Yes6

No14

Maybe10

Total30

(Appendix 4.1.2g)BACK

(Appendix 4.1.2h)

Breakdown of GendersMalesFemales

Yes51

No411

Maybe45

Total1317

Group id 12 | lf03PAge | 1