2 Industry/Company Overview Nike Inc. was founded in 1962 by BillBowerman and Phil Knights.Originally “Blue Ribbon Sports.”Now a global powerhouse.At the end of 2011 fiscal year, Nike made $20.9 billion in revenue and controls 40% of the market.Sports & extreme sports equipment.Wholly-owned affiliates.
3 Product Review-Nike Plus sensor placed in the shoe allows runners to receive data about their runs. -Interfaces (iPod, wristband, iPhone). -GPS tracking system. `
4 Competitive Review & Advantage ADIDAS GROUPPRODUCTInternational companyMost profits from North AmericaRapidly expandingmiCoach
5 Competitive Review & Advantage GARMINPRODUCT2011 company revenue growth of 18%2011 Fitness equipment revenue growth of 30%Highest source of revenue is North America.Forerunner 610 touchscreenGarmin Q Earnings Call Webcast.
6 SWOT Analysis STRENGTHS OPPORTUNITIES WEAKNESSES THREATS -Nike has the largest market share in sporting goods.-Nike has the most yearly revenue continuously.-Nike’s image is trusted and the company has many loyal customers.-Apple iPods are the most popular electronic devices for the tech savy.-Apple iPods are the most popular electronic devices for those who require music storing systems.-Apple has the largest market share in its industry-Apple has the most yearly revenue in its field continuously.Both logos are widely recognized.OPPORTUNITIES-An App is available for those who cannot afford the product. -There are always new age groups moving into the targeted category.-As the lead in market share, Nike has more money to advertise its products than other companies.WEAKNESSES-Nike has many competitors such as Adidas, Reebok, Puma, etc. -Market share has gone down in recent years.-Not all Nike shoes are equipped with Nike + technology-Affordability is an issue.-Those who cannot afford the products have no way of attaining them.-Competitors’ products are more versatile and can be used with more products, such as their shoes and certain phones.-By associating itself with Apple, Nike is excluding customers who are loyal to Microsoft.-Other brands’ customers are just as loyal.-Nike’s partnership with the RED party.THREATS-Adidas’ market share is growing.-The state of the economy has made it harder to sell expensive electronics.-Nike and Apple could be seen as one giant monopoly and therefore, deter customers from-Purchasing products.-Market share could continue to decline.
7 Marketing Objectives1. To provide a 10% increase in Nike’s brand loyalty by the end of the campaign.2. To increase awareness of Nike + iPod technology by 20% by the end of the campaign.3. To increase sales of Nike + iPod technology by 30% by the end of the campaign.
8 Advertising Objectives There has not been any advertisements for Nike + iPod since 2007.5K in the Spring for $20 per personWord-of-mouthCoupon for free Nike + iPod sensor with each purchase of Nike shoes ($100+)Heavy advertising during the holidays and the Spring, leading up to the SummerBy reaching advertising objectives, we can achieve a 30% sales increase.
9 Creative Strategy No major ad campaign since 2007 Definite theme and overall promiseInspirational tone to target runners and those who want to become runnersEnough knowledge to understand the ad, but enough intrigue to learn moreRelies heavily on website
12 Target Selection PRIMARY SECONDARY Male & Female, 18-40 Tech savvy athleteRunners interested in improving time runsApple & Nike customersInterested in quality of healthFinancially able to purchase productsMale & FemaleAll age rangesNon-athletesTrying to improve healthFinancially able to purchase products
13 Overall Media Budget Print Ads: $1.5 million Television: $2 million Internet: $25,000Outdoor: $600,000Other Advertising: $1.5 millionTOTAL: $5.6 MILLION
14 Target Audience Coverage April – August: reach 100% of target audience an average of two times.Maintain a 60% reach of the target audience an average of two times continuously.November - January: generate an 90% reach of the target audience an average of 4 times.
17 Advertising Objectives Media MixAdvertising ObjectivesPrint: magazines, newspapersInternet: social networking, Pandora radioTelevision: prevalent during November – December & April – AugustOutdoor: events, billboardsWord-of-mouth
18 Creative Constraints Radio Outdoor advertising Internet Print Television
19 Budget Constraints Majority of advertising is internet Television only used during high selling timesOutdoor is necessary for promotionMoney spent buying advertising will pay off
20 Media MixBudget ConstraintsTelevisionPrintInternetOutdoor
22 Weighting, Reach & Frequency Heavy weighting in Northwest and Northeast regions during the winterHeavier weighting during the summer in the Southern and Central regions80% reach with a frequency of 5 times continuously90% reach with a frequency of 4 from November - January100% reach with a frequency of 2 during summer months-Internet – Print – Television -