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    Our product

    What is Nike?

    Nike is the leading designer, marketer and distributor of athletic footwear, apparel,

    equipment and accessories for a variety of sports and fitness activities in the world.

    The product we chose is Nike shoes which is very popular product among the

    youngster and athletes in U.A.E. Nike has an already brand name in the market.

    The shoes can make our feet free. This service was used before Nike Free 3.0 V4

    and Nike Free +3 appeared on the market. The customers can choose Nike Free 3.0

    or 5.0 to have the suitable shoes. They also can select their favorite color to show

    their personality. Actually, there are many famous persons who have chosen this

    service. These people include Li Na, Liu Xiang, American sprint athlete Allyson

    Felix, Soda green band's lead singer Wu Qingfeng.

    The message we made for the promotion of Nike shoes through media is:

    It gives we the Nike feel just do it

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    Our primary target market is athletes in U.A.E and around the globe. Through this

    print media add we will attract our customer through excitement as the football

    world cup is also coming so its very good time to target our customers by creating

    some passion of sports in them by using this print media add. BY using this ad we

    will target our primary market through internet where we can easily communicatethem in the form of this add.

    Nike demographic segment

    By age

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    By Gender

    Goals

    Nike Mission Statement: To bring inspiration and innovation to every

    athlete in the world Nikes goal is to carry on the legacy of innovative thinking; whether that

    involves developing products that help athletes reach their full potential, or

    create new business opportunities that set them apart from the competition.

    The other principle goal of the company is to create business opportunities

    that set Nike apart from the competition and provide value for our

    shareholders.

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    Nikes Marketing Strategy

    Nikes marketing strategy reposed completely on its brand image, which has strong

    global presence and continued to grow over the years.

    The brand image has kept floating as the result of solid relationship with Nikes

    logo that is unique in itself. Further uniqueness and brand image is created with

    shibboleth Just Do It.

    The logo and shibboleth has been extensively used in TV commercials and web

    advertorials. Nike is amongst the leading companies which are heavily investingon print and TV commercials.

    What is the Market Segmentation of Nike?

    Most of the customers of Nikes products come fromone or the other form of

    sports fraternity. Nike encourages the advertisement of its products by entering

    into the sponsorship agreements with celebrity athletes, professional teams, apart

    from the college athletic teams.

    Advertising

    It was in the year 1982 that Nike for the first time came live for national television

    ads during broadcast of the New York Marathon. The Cannes Advertising Festival

    offered Nike as its Advertiser for the Years 1994 and 2003, making it as the first

    company for receiving the honor twice.

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    Nike got Emmy Award for best commercial twice ever after the award was first

    created in year 1990s. The first award was The Morning After, a sardonic look

    that the runner faces on the morning of January 1, 2000 if Y2K problem turned out

    to be a reality. The second was a 2002 spot named Move, shows sequel of well-

    known and everyday athletes in different athletic pursuits.

    Nike also used Beatles song Revolution in a 1987 commercial. In this manner,

    Nike made a string base of number of consumers and these were the consumers

    who had pretty good intentions to buy.

    Nikes Product Strategy

    Nike puts in place variety of innovative strategies for targeting their instantaneous

    consumers; athletes and other sportsmen. The targeting strategies primarily go in

    the form of sponsorship advertisements.

    By focusing on the athletes, Nike is trying to reach to maximum number of athletes

    in less of time. In a scenario where the team manager of any team recommends

    Nike shoes, the whole team is left with no other choice except to go for the shoes.

    The second strategy applied by Nike is to exclusively design the product

    destination. This is done by closely associating success with particular Nike shoes

    category. Here the effect is further increases by using the sub minimal concept of

    advertising.

    Nikes pricing strategies

    Nike always targets the customers who develop a special kind of intimacy with the

    product that ultimately leads to the development of loyalty.

    It is due to this reason that Nike has established itself in the market with the

    products higher in price than its competitors. With the high pricing points, the

    projected value of product can move up significantly.Taking the consumer trend into account, the Psyche of consumer demands that in

    the situation where the quality of product is high, consumers can go ahead to pay

    high price for the product and that too consistently. After the loyalty has been

    established between the product and consumers, Nike takes the advantage to

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    associate their consumers with their price. Nike knows that consumers will be

    ready to pay for the product, provided it bears the Nike Logo.

    Furthermore, Nike also brings into practice the vertical integration pricing,

    wherein, they take the advantage of ownership of consumers straight to the channellevels. They also go for the assorted channel level operations with the purpose of

    controlling the costs as well as persuading the price graph quite substantially.

    Nike Marketing Mix

    Nike is one of the pioneers in marketing and the marketing mix of Nike is one of

    the strongest. Depending mainly on pull strategy, it has established its hold in face

    of major competitors like adidas and reebok. Read on for its product marketing

    mix.

    1. Product

    Nike offers a wide range of shoe, apparel and equipment products, all of which are

    currently its top-selling product categories. Nike started selling sports apparel,

    athletic bags and accessory items in 1979. Their brand Cole Haan carries a line of

    dress and casual footwear and accessories for men, women and children.

    They also market head gear under the brand name Sports Specialties, through Nike

    Team manufactures and distributes ice skates, skate blades, in-roller skates,protective gear, hockey sticks and hockey jerseys and accessories.

    2.Price

    Nikespricing is designed to be competitive to the other fashion Shoe retailer. The

    pricing is based on the basis of premium segment as target customers. Nike as a

    brand commands high premiums. Nikes pricing strategy makes use of vertical

    integration in pricing wherein they own participants at differing channel levels or

    take part in more than one channel level operations. This can control costs andinfluence product pricing.

    3. Place

    Nike shoes are carried by multi-brand stores and the exclusive Nike stores across

    the globe. Nike sells its product to about 20,000 retail accounts in the U.S. and in

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    almost 200 countries around the world. In the international markets, Nike sells its

    products through independent distributors, licensees and subsidiaries. The

    company has production facilities in Asia and customer service and other

    operational units worldwide

    4. Promotion

    Promotion is largely dependent on finding accessible store locations. It also avails

    of targeted advertising in the newspaper and creating strategic alliances. Nike has a

    number of famous athletes that serve as brand ambassadors such as the Brazilian

    Soccer Team (especially Ronaldo, Renaldo, and Roberto Carlos), Lebron James

    and Jermane ONeal for basketball, Lance Armstrong for cycling, and Tiger

    Woods for Golf.

    Nike also sponsors events such as Hoop It Up and The Golden West Invitational.

    Nikes brand images, the Nike name and the trademark swoosh; make it one of the

    most recognizable brands in the world. Nikes brand power is one reason for its

    high revenues. Nikes quality products, loyal customer base and its great marketing

    techniques all contribute to make the shoe empire a huge success.

    New Online Media Plan

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    Nike has a very loyal consumer following, across the board in all aspects of

    sports and fitness. There needs to be a more consistent way to communicate

    with the consumers who are not only loyal followers but also attracts new

    consumers.

    A new plan needs to be put in place to increase online sales of Nike productsand traffic to the Nike websites.

    Incorporating more fan interaction and update geared advertising to inform

    consumers off all the behind the scenes and buzz worthy things the Nike

    brand is currently unveiling and offering will be a primary focus of this

    online campaign.

    Message & Media Strategy plan:

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    The strategy plan we use to target our market is through social media and internet,

    through which we can easily target of customer and will create the awareness

    among the customer about Nike shoes.

    An effective digital marketer will be acutely aware of conversations online that are

    relevant to their brand and product or service offering. They'll jump into a

    conversation when necessary to help answer a question or provide insight. They'll

    also help manage online discussions about the brand. And they'll engage their

    audience and get them excited about what the company is doing.

    Email and Google

    The first thing that we will use for this campaign is retooling the email list

    service to incorporate more offers and insight to the consumers.

    Google and Google Ad words are also an important tool to use in online

    media. We will Make sure that Nike shows up relatively high in search

    engines and gets numerous hits of keywords like sports apparel which will

    be a great driver for increasing online traffic and potentially sales. And we

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    will also use ad words for sponsored spots on Googles search engine which

    is a great way to attract more hits. Using pay per click method.

    After using a good Email and Google Strategy to play off each other is a

    great base to attract new consumers to the brand.

    Social Media Tools

    We will capitalize on the opportunity of using these social media tools to

    increase the fan interaction and dialogue with the consumer for the

    promotion of Nike shoes.

    Creating verified Face book and Twitter accounts for Nike and the numerous

    subgroups and sports divisions will be a key component in being able to

    provide consumers with constant streaming information and in return receive

    critical feedback seamlessly.

    Together Face book and Twitter can target not only new consumers all over

    the world with fan pages and face book ads and sponsored tweets, but can

    also maintain and build the relationship with the loyal consumers in

    numerous demographics and sports.

    One of the best parts ofBuffer is its speed in being able to schedule posts

    throughout the day and its simple, streamlined interface. It's very easy to

    login to the system, compose an update, and publish it to Facebook, Twitter,

    http://www.bufferapp.com/http://www.bufferapp.com/
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    LinkedIn, Google Plus, or all four channels at once. And then you can view

    analytics (without having to navigate onto a new page) that give you insight

    into clicks, reach, and more.

    Metric Success

    The success of this new strategy should be measured in a couple of key

    ways, first with the declining rates of the online sales, we would like to see a

    6 to 7% increase in the online retail spending from consumers, and increase

    in viewership of the Nike websites and Face book and Twitter pages.

    Also increasing the page rank and relevance on Google and Google Ad

    words should help gage the success.

    Proposed Budget

    Nike spends roughly about 12.4% of its revenue in advertising costs, which

    equates to roughly $2.8 billion.

    About $500 million is spent in endorsements deals.

    The proposed budget to be allocated in this new online media strategy will

    be roughly $500 million.

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    Timeline for the Message & Media Strategy plan

    The timeline for this campaign will work in a couple of different

    movements. The whole campaign will work over the whole calendar year,

    but the peak times of the campaign will be during the beginning of each key

    sport season to match each key sport sub group.

    A specific Nike Football strategy will be started in July through Fall

    A specific Nike Basketball strategy will be started September through June

    A specific Nike Baseball strategy will be started March through the summer.

    The other sub groups will match up with their respective sport.

    The main Nike strategy will work continuously.

    The marketing concept we use in making our advertising plan

    We use internet marketing for our advertising plan because it is the cheapest

    way of marketing and targeting the customer. The internet has become an

    all-pervasive force, not just in business but in peoples day-to-day lives. Its

    impact on the world of marketing has been immense, with many businessesnow spending significantly more on web-based marketing than on traditional

    offline marketing activities. Increasingly, the battle for customers is being

    fought online.

    The benefits of an effective online marketing campaign are significantbut

    businesses that ignore the digital sphere do so at their peril. If we are to

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    maximize were chances for success, we must investigate how we can make

    the internet work for us. As Nike has already a brand name so it becomes

    easy for us to promote our product on internet.

    Through internet marketing we can easily analysis our performance that how

    much effective our advertising campaign is working so that we can takesome other preferences to increase its efficiency.Internet marketing is

    important because it aligns with the way consumers make purchasing

    decisions. Studies by analysts such as Gartner indicate that increasing

    numbers of consumers use social media and research on mobile Internet to

    carry out preliminary product and price research before making final

    decisions. Internet marketing enables us to build relations with customers

    and prospects through regular, low-cost personalized communication,

    reflecting the move away from mass marketing.

    By marketing on the Internet, we can overcome barriers of distance. We can

    sell goods in any part of the country without setting up local outlets,

    widening were target market. We can also build an export business without

    opening a network of distributors in different countries. However, if we want

    to sell internationally, we should use localization services to ensure that

    were products are suitable for local markets and comply with local business

    regulations. Localization services include translation and product

    modification to reflect local market differences.

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    Nike targets youth with social campaign

    Nike is reaching out to young audiences with a new social media campaign that

    calls on youth to share their own sports story.

    The campaign, called What do you play for? is aimed at getting youth excited

    about their own involvement with sports and sharing their stories. The effort is

    collaboration between the athletics brand and Youth Noise, a social network for

    teens and social media firm Brickfish.

    The new campaign is part of Nike's push to build an online community in the youth

    demographic in which youths can share their personal stories about sports and to

    encourage these youths to be creative about telling their stories visually.

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    Good Content Marketing Doesnt Sell, It Spreads

    Content marketing is growing, and that usually brings fuzzy definitions that blur

    the lines between what something actually is and what it is becoming. Content

    marketing is often pegged as a process rather than a technique, but contentmarketing doesnt depend on a specific set of tools or a common workflow. It is

    about providing value and building trust with customers.

    Strength and Weakness of marketing activities

    Nike has much strength as a company as well as weaknesses. Nike is the leading

    and most recognized name in active sportswear. The Nike swooshes sign and their

    slogan Just Do It are loved by everyone and when you hear it you instantly think

    Nike. Nike has no factories; instead of building their own factories, Nike uses

    contract factories around the world to make their products. They have contracts

    without over 700 shops globally in about 45 different countries. Nike employed

    approximately 30,000 people around the world. Nike manufactures not just shoes

    but shirts, sweatshirts, sweatpants, hats, sports equipment and other accessories

    and distributes them all over the world. As a company to make sales and profits

    bigger, Nike makes very strong marketing efforts by endorsing athletes such as

    Michael Jordan and Derek Jeter to wear their merchandise to attract the customers

    even more to buy their goods. Some Weaknesses of Nike though are it is

    considered as the expensive brand and is difficult for third world and Asian

    countries to afford their products. Nike is also criticized for making their products

    in third world countries, breaking many labor laws and paying the workers below

    minimum wage to make more money as a company.

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    Free Running

    In order to promote its new Free Running shoes Nike will launched a socialcampaign that will challenged runners to clock their fastest time over two milesusing Nike+.

    To add a sense of fun to the competition the company will tie it into an originalkaraoke song, with the idea being that a strong runner should be able to sing whilerunning.

    .

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    Media marketing Strategy Objectives

    Media strategy messages should reinforce product benefits and help the company

    develop positioning strategy for products. Media strategy is how the organization

    delivers its message to customers; consumers and businesses that the firm wouldlike to sell to. A firm's message strategy will incorporate aspects of the

    promotional mix and take the behavior, wants and needs of their target audience

    into account. A firm's media strategy is a long term plan which runs through all

    communications internal and external. Media strategy could be the difference

    between success and failure.

    Task 2

    No Tasks Start Date End Date Resources

    Required

    1 Online marketing January March IT experts

    2 Blogging Feb November Good writers

    3 Planning the futurestrategies

    March April Projectmangers

    4 Controlling the budget January December FinanceExperts

    5 Managing the newcampaigns

    May June Good strategicteam

    6 Finding new innovativestrategies

    November December Innovativeemployees

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    Reference

    "Basketball" on Nike.com. (n.d.). Retrieved April 02, 2010, from

    "Feature." Nike Biz. (2009, 11 12). Retrieved April 02, 2010, from

    "History." Nike and the American Body. (n.d.). Retrieved April 02, 2010, from

    "Nike Ethics" Slide Share Present Yourself. (2007, 11 01). Retrieved April 02, 2010, from

    "Nike's Labor Practices.". (ICMR. 2002). Retrieved April 02, 2010, from ICMR Center for

    Management Research:

    Archie B. Carroll, A. K. (2008). Business and Society: Ethics and Stakeholder Management.

    South-Western College Pub; 7 edition.

    Nike's New Game Plan for Sweatshops. (Online Extra.2004, 09 20). Retrieved April 02, 2010,

    from Business Week:

    Poulomi, S. (2004, 11 08). "Nike develops a 'balanced scorecard' for ethics integration." Ethical

    Corproration. Retrieved April 02, 2010, from

    Pugatch, T. (1998, 04 28). External Monitoring Recommendations. Retrieved April 02, 2010,

    from

    Stanwick, P. S. (2009). Understanding Businnes Ethics. Upper Saddle City,NJ: Pearson Prentice

    Hall, 2009. Print.