Description
PROJECT ON MARKETING STRATEGY OF NIKE
10 STEP
Marketing Plan for NIKE
Tanya Marie Labrador October 2010
1
5 Steps for Part 1 (PTM and Positioning)
1.
2.
3.
4.
5.
Nike PTM is active people who enjoy highquality sporting goods, especially footwear. Good association with no. 1 sports/ fashion brand Adidas, Fila, Reebok, Puma Other brands don’t sell accessories such as sunglasses, jewelries and apparel The market size is $19.2 Billion.
5 Steps for Part 2 (Marketing Mix & Strategy)
6.
7.
8.
9.
10.
Sports apparel (Footwear) Based on the basis of premium segment as target customers Uses famous athletes as brand ambassadors, TV ads, targeted advertising in print ads and sports events (sponsorships) Distributed worldwide (Nike stores across the globe) Market Leader – Nike is a global brand (enormous brand awareness)
Positioning to the Primary Target Market
Part 1: Steps 1 to 5
4
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’m fulfilled when I feel important and recognized
I want the status symbol of being the best
I want to belong to the coolest group
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 vs. Age Matrix
Price/ Age Matrix High price Low Price
7-17yrs
18-27yrs
28-40 yrs
40yrs up
Nike Kids
Adidas
Puma
Nike
Puma Fila
New Balance
Reebok
New Balance
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 Market share is 33% Total sports apparel market size is $278.4B as of 2007
2.
3.
(http://www.marketingcharts.com/direct/global-sports-equipmentapparel-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 Company data = $ 18.6 B Usage data = $ 278.4 B
2.
3.
The Marketing Mix Strategy
Part 2: Steps 6 to 10
16
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. PriceNike 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 high premiums and is often more expensive than 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.
?
SUMMARY
30
5 Steps for Part 1 (PTM and Positioning)
1.
2.
3.
4.
5.
Nike PTM is active people who enjoy highquality sporting goods, especially footwear. Good association with no. 1 sports/ fashion brand Adidas, Fila, Reebok, Puma Other brands don’t sell accessories such as sunglasses, jewelries and apparel The market size is $19.2 Billion.
5 Steps for Part 2 (Marketing Mix & Strategy)
6.
7.
8.
9.
10.
Sports apparel (Footwear) Based on the basis of premium segment as target customers Uses famous athletes as brand ambassadors, TV ads, targeted advertising in print ads and sports events (sponsorships) Distributed worldwide (Nike stores across the globe) Market Leader – Nike is a global brand (enormous brand awareness)
10 STEP
Marketing Plan for NIKE
Tanya Marie Labrador October 2010
33
doc_402681911.ppt
PROJECT ON MARKETING STRATEGY OF NIKE
10 STEP
Marketing Plan for NIKE
Tanya Marie Labrador October 2010
1
5 Steps for Part 1 (PTM and Positioning)
1.
2.
3.
4.
5.
Nike PTM is active people who enjoy highquality sporting goods, especially footwear. Good association with no. 1 sports/ fashion brand Adidas, Fila, Reebok, Puma Other brands don’t sell accessories such as sunglasses, jewelries and apparel The market size is $19.2 Billion.
5 Steps for Part 2 (Marketing Mix & Strategy)
6.
7.
8.
9.
10.
Sports apparel (Footwear) Based on the basis of premium segment as target customers Uses famous athletes as brand ambassadors, TV ads, targeted advertising in print ads and sports events (sponsorships) Distributed worldwide (Nike stores across the globe) Market Leader – Nike is a global brand (enormous brand awareness)
Positioning to the Primary Target Market
Part 1: Steps 1 to 5
4
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’m fulfilled when I feel important and recognized
I want the status symbol of being the best
I want to belong to the coolest group
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 vs. Age Matrix
Price/ Age Matrix High price Low Price
7-17yrs
18-27yrs
28-40 yrs
40yrs up
Nike Kids
Adidas
Puma
Nike
Puma Fila
New Balance
Reebok
New Balance
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 Market share is 33% Total sports apparel market size is $278.4B as of 2007
2.
3.
(http://www.marketingcharts.com/direct/global-sports-equipmentapparel-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 Company data = $ 18.6 B Usage data = $ 278.4 B
2.
3.
The Marketing Mix Strategy
Part 2: Steps 6 to 10
16
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. PriceNike 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 high premiums and is often more expensive than 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.
?
SUMMARY
30
5 Steps for Part 1 (PTM and Positioning)
1.
2.
3.
4.
5.
Nike PTM is active people who enjoy highquality sporting goods, especially footwear. Good association with no. 1 sports/ fashion brand Adidas, Fila, Reebok, Puma Other brands don’t sell accessories such as sunglasses, jewelries and apparel The market size is $19.2 Billion.
5 Steps for Part 2 (Marketing Mix & Strategy)
6.
7.
8.
9.
10.
Sports apparel (Footwear) Based on the basis of premium segment as target customers Uses famous athletes as brand ambassadors, TV ads, targeted advertising in print ads and sports events (sponsorships) Distributed worldwide (Nike stores across the globe) Market Leader – Nike is a global brand (enormous brand awareness)
10 STEP
Marketing Plan for NIKE
Tanya Marie Labrador October 2010
33
doc_402681911.ppt