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Nike Strategic Marketing Plan

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Title: Nike Strategic Marketing Plan


1
Nike Strategic Marketing Plan
2
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.
3
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

4
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

5
Nike Brand Foundation
Major Stakeholders
  • Nike Stockholders
  • 23,000 Nike Employees
  • Nike contact manufacturers
  • Organizations relying on Nike sponsorship
  • Loyal consumers

6
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
7
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

8
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

9
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

10
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

11
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
12
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
13
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
14
Nike Brand Foundation
SWOT - Strengths
  • Introduction of the Nike Environmental Action
    Team (NEAT) in 1993

15
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.

16
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.

17
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.

18
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.

19
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

20
Nike Strategic Marketing Plan
The Details
21
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
22
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

23
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
24
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

25
Nike Brand Foundation
Media Plan Print - newspaper
26
Nike Brand Foundation
Media Plan Print - magazine
27
Nike Brand Foundation
Media Plan TV
28
Nike Brand Foundation
Media Plan Digital Media
29
Nike Brand Foundation
Media Plan Teams, sponsorships
30
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

31
If you have a body, you are an athlete. And as
long as there are athletes, there will be Nike.
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