NIKE SPORTS AGENCY
Nike Sports Agency
Morgan: Review of marketing plan, analysis of promotions and program situation
Internal and external analysis
Alyssa: analysis of communications process and budget determination and other
Kristen: IMC program advertising, direct marketing, interactive marketing, sales
Endrit: PR, personal selling and how to monitor, evaluate, and control the IMC program
Nike was founded in January of 1964; it was originally Blue Ribbon Sports and
then became Nike in 1971. It got the name Nike because Nike is the name of the Greek
Goddess of Victory. A University of Organ track star Phil Knight and his coach Bill
Bowerman founded it. Nike aired their first television ad campaign in 1982.
Nike has three product categories. The categories are shoes, apparel, and
equipment accessories. Nike sells their products through different retailers meaning they
have their products in retail stores such as Footlocker, they also have an official online
store was tell as Niketown retail stores and Nike Outlets.
Nike’s target market would be almost any one. Based on their mission statement,
“To bring inspiration and innovation to every athlete in the world. If you have a body,
you are an athlete.” Any one with a body can be an athlete. That being said their target
market is quite broad. Athletes are a huge part of their target market because they are
who is wearing Nike’s athletic apparel mainly. That being said, Nike also has kids clothes
so the target isn’t an only adult it’s any ages. Anyone can also wear Nike because they
have a lot of casual clothing and sports fans apparel. Nike is also an international
company so they have a wide target market in that aspect.
Nike’s biggest competitors would be Adidas, Under Armor, Puma, and Reebok.
Adidas would be the biggest competitor because they sell very similar products from
casual sports wears, to athletic training wear, to casual sneakers, running sneakers, and
cleats. Nike recently built a brand new five-story store in SoHo New York. Adidas also
has a big store, bigger then the other competitors, however it still does not compare to
Nike’s new store.
According to Research Gate, Nike uses their strong brand awareness among
consumers to gain market share. Nike does this through the teams they sponsor and the
professional athletes that wear their apparel. Nike uses iconic professional athletes in all
major sports. LeBron James in the NBA, Cristiano Ronaldo in the soccer world, and
Odell Beckham Jr. in the NFL are some of the professional athletes that Nike uses to
promote their product and brand to consumers in various sports.
Another marketing strategy Nike has used that has proven to be successful is they
associate victory and triumph with their product. An example of this would be when they
contract and sponsorship deal with a famous athlete and that athlete competes well and
wins, that has a physiological affect on the consumer that then associates that product the
athlete endorsed with victory.
Nike also owns other parts of the market. They own Jordan brand as well as
converse that are a subsidiary of Nike and they can promote their company though that. It
also helps their company because of how popular the Jordan brand is and how people are
lined up when a new shoe is released shows the popularity of the Nike Company as
Nike uses these strategies to gain relationships with the consumers and develop
brand loyalty. Because of the relationship with consumers, Nike can keep a higher price
then their competition. When Nike does this according to a sales management
presentation on Nike it is superior pricing point, which is when Nike uses the brand
loyalty and the supposed value of the product to keep prices higher. This has worked for
Nike so far and their brand continues to sell products and the lines for their new releases
continue to go out doors and around corners regardless of their prices which are general
set higher then the competitors products.
Along with this pricing stagey Nike uses value-based pricing strategy according
to a study done by the Panmore institute. That strategy consist of Nike doing research on
how the consumers value the product and then the study sees how much the maximum
amount the consumer is willing to pay for the product. According to the Panmore study,
in 2014 Nike increased the selling prices, which generated higher sales and revenues.
This being said, the strategy has worked according to this evidence.
Nike has a strong internal structure. Nike has been around for 52, going on 53
years and has had a very big impact on the sports industry. Nike because it has been
around for so long, has a very stable and strong following of loyal consumers. They have
a good brand built and an internal structure that will continue to lead the company to
success. Nike is a leading company when it comes to sports, so athletes will be inclined
to use Nike agents.
Firm’s ability to implement promotional program
The new program of the “Nike Full Effect” is different than anything else Nike
has done before but since it is leading brand we believe the consumer base will follow.
Nike will hire top sports agents and use them to find and represent up and comers. It is
important for Nike to cover the launch of this program and make consumers excited
about the possibility.
Set Promotional Budget
As an international sports company, Nike has the strength on economics and can
afford the big cost of promotion budget. To compete with its competitors like Puma and
Adidas, Nike uses competitive disparity as the method to set their promotional budget.
Nike says it boosted spending on demand creation -- including advertising, brand events
and digital marketing -- 10% to $804 million. In 2015, the net sales of Nike has increased
to 31.34B as compared to previous years 25.3B and 27.8B in 2014 and 2013. Since their
net income has increased to 3.62B, it can be forecasted that it can increase its expense
towards marketing to get increment in its market share and expand business in other
Analysis of Communications Process
The communications mix of Nike rests upon a product image, which allowed it to
be, come one of the best companies in the world. Sportsmen make up the biggest part of
consumers of Nike’s products. Nike focused on these consumers by means of agreements
between the Company and sports team, college athletic for product support and
sponsorship. Recently, Nike has used online advertisements to reach its consumers. Nike
uses, Twitter, Facebook, and YouTube to reach their target markets. Many of the Nike
advertisements on television can also be seen on YouTube. The link is advertised on
Twitter or Facebook. Nike is reaching out to very well known YouTube directors to make
viral commercials. An example is, Casey Neistats’s, Make It Count, which promoted the
Nike Fuel Band and reached 9.2 million views.
On occasion, Nike is seen in catalogs through retailers such as, East Bay and
Finish Line, which are sent to consumers with a section for Nike. Nike does an abundant
amount of advertisement in Chicago, located on billboards and advertisements on public
transportation. In the urban community, when Nike is mentioned, the first thing that
comes to mind is the Air Force Ones (AF1), which is one of the most iconic shoes from
Nike. To this day, the Air Force Ones has been one of Nike’s best selling shoes. There
been no money spent in promotional marketing for the Air Force Ones. According to
business week in 2005, “AF1 racked up an estimated $1 billion in sales and generated
profit margins of 70%.”
Another method in the communications mix is by personal selling. Nike utilizes a
personal selling method in every one of their retail stores. The sales associates in the
retail stores have direct contact and interaction with the buyers of the products. They are
the individuals that directly communicate with the consumers who are interested in Nike
products, so they must be able to be an aid in the process of a sale. The sales associates
must have proper knowledge of the brand and should be trained in asking customers the
'right' questions to figure out what they want. The company will often send Nike
representatives to retail stores that sell their sneakers to give presentations to keep the
sales associates up-to-date on the products and the technology.
Our main goal is to start a “new era” with the “Nike Full Effect” branch. The
agents will be hired to represent rising athletes. We want Nike to become a full
experience for its consumers.
The target audience is sport fanatics who are involved with sports and loyal to the
Nike brand. We are planning to launch around the 2017 NFL draft and continue to build
the community around The Nike Sports Agency.
Since we are opening a new branch of the Nike brand, the Nike Sports Agency, it
is important to have all encompassing media plan. Nike customers do not just consider
Nike a brand but it is a life style. Internet and social media interaction will be most
important for this “Nike Full Effect” branding that we are putting into place.
The objective of the advertising will be to promote awareness of the new branch
of the Nike company. Sparking awareness and peaking interest of current consumers is
the most important stage of the process so the advertising campaign will be launched
before the branch of the company is released. It will be called “Nike Full Effect” hinting
towards Nike being involved in the entire process of an athlete’s journey. Nike has a
distinct look already so the same type of colors and fonts will be used.
Advertising Media Plan
The purpose is to create buzz and make consumers excited for “new era” of Nike.
We want to create more of the feeling that Nike is more than brand. We will have to
scout out some of the rising stars of certain towns or cities and highlight them in these
ads so consumers can also be a part of the athlete’s journey from start to finish. Once
consumers begin showing interest in the campaign they will then start feeling even more
Direct Marketing Objectives
The objective of our direct marketing will be to educate consumers on what “Nike
Full Effect” is and also get them excited. We want to spotlight up and comers who could
be the next big thing and possibly signed by a Nike Agent. There will be in depth
interviews and backgrounds on these athletes. The catalogues will continue on a biyearly
time frame keeping consumers in the loop on the athlete’s journey whom they are
Direct Marketing Media Plan
Nike currently has a catalogue but its purpose is to sell merchandise. All
customers who currently get a Nike catalogue will get a copy of the “Nike Full Effect”
catalogue. This catalogue will have an in depth write up on what the “Nike Full Effect”
is. We want people to understand this new branch of the business and be educated on it
before it starts. We don’t want consumers being late to the game and missing out on the
Interactive/Internet Marketing Objective
The interactive/internet marketing strategy is to mainly push the message and
brand out through social media. Research shows that millennials trust user generated
content (social media) thirty percent more than normal brand messaging. “Nike Full
Effect” will market the branch of the company to customers through E-mail, Facebook,
Twitter and Instagram. The main focus of this marketing strategy is to engage and
involve the public. These platforms will allow making inquiries, responding to the brand
and each other and also making purchases.
Interactive/Internet Marketing Media Plan
Nikes site will have it’s own portal dedicated to the Sports Agents where the
consumers can go to learn more about them. Through this they will also be able to see
prospective athletes that could sign with the agents. There will be discussion platforms
for consumers to give their input. They will also be able to follow the agents and athletes
on their social media platforms and subscribe to notifications from the “Nike Full Effect”
pages on each platform.
It is important for the consumer to be involved in the entire process of the athlete
and agent’s journey. There will be interactive panels in stores with inside scoops and the
live feeds of certain agents. This will make the experience all encompassing.
Sales Promotion Objective
The objective of the sales promotion is to introduce new products to lift sales
temporarily. We want to keep lifting awareness and make consumers interested and
engaged in the Nike Sports Agency.
Sales Promotion Media Plan
The strategy is to hold contests and special promotions to increase engagement
and revenue. The contests will be for customers to be able to get a behind the scenes look
at how a sports agency works and possibly being able to go to a draft or signing event.
Customers who enter the contests will then be able to get special promotions for discount
when shopping at a Nike store.
Nike Sports Agency, a sports management company, is a sub-division of the Nike
Brand and will be launched in 2016. Nike Sports Agency helps supports world-class
athletes the same way the Nike Brand has been supporting their clients in years past. The
main goal of Nike Sports Agency is to sign premiere world-class athletes and up &
coming college athletes. Nike Sports Agency focuses on elevating athletes’ careers on a
large scale both on and off the field. Nike Sports Agency conceptualizes itself on
producing marketing and endorsement deals, media relations, and brand strategy. Nike
Sports Agency is a full service sports management company that represents some of the
most impactful players in their respected sport: football, basketball, baseball, soccer, etc.
Nike Sports Agency will not have a hard time branching out into the sports
management realm because the Nike Brand is a major powerhouse in the field of sports,
sports gear, sports apparel, etc. Nike Sports Agency will just be a subdivision of the Nike
We have one main objective and that is to sign and work alongside some of the
top level athletes across the world so that they can achieve their desired goals. This will
give our athlete (client) the best of both worlds since they will have an opportunity to be
represented by the best in the industry. Nike’s brand sales revenue is in the billions,
“Fiscal 2016 income statement estimated at $32.4 billion”. Because we at Nike Sports
Agency are fortunate to have our sports division apart of a bigger company, we want to
be able to offer our clients the best representation so that they can receive notable
contract offers when signing with a potential team and great endorsement opportunities.
This allows us to purse the athlete’s best interests.
PR Media Strategy
In accomplishing our agency’s objectives, we want to use forms of social media
outlets in order to introduce our goals to potential signees. We will pair up with
Instagram, Facebook, Twitter, and Snapchat in order to get our message across. Snapchat
now has a new feature on their popular page in which we can create a Nike Sports
Agency Story and it’ll allow all Snapchat users to watch. Since we have an advantage
other agencies do not, we will pair up with the Nike Brand and hold press releases on
television networks such as ESPN, ESPN 2, etc.
Nike already has a major internet presence so Nike Sports Agency will introduce
itself on Nikes main website by playing a 30 second intro vid on how we at Nike Sports
Agency are about to change the sports management field. This will be great because we
want younger athletes, who can potentially be future clients, aware that we’re creating
something special here at Nike. We will also promote our company at many of the
clothing stores Nike is affiliated with (Dicks Sporting Goods, Modell’s, etc.). We have
the revenue to do a lot of promotional activities at Nike so we plan on using it to our
-‐ Our Vision: To become the world’s leading sports agency by representing
some of the best in the sports industry.
-‐ Our Purpose: Provide for our clients so that they can succeed both on the
playing field and off.
-‐ “Represent the best, be the best”.
Selling Roles & Responsibility:
-‐ Here at Nike Sports Agency, we will strive ourselves on becoming the number
one agency in North America by representing top-level athletes in the NBA,
NFL, NHL, MLB, etc. We’re a family here at Nike so our main responsibility
will be our athlete. We will make our presence known to the public because
we have the funds to do so and the name that lives up to expectations.
Monitor, Evaluate and Control
The most important aspect of the Nike Sports Agency is making it “Nike Full
Effect.” It will be crucial to monitor and analyze social media engagement and
customer’s feedback to the new branch of Nike. Since it is new we must be able to adjust
accordingly and use the feedback to better the Nike Sports Agency branch.
Admin, By. "Main Menu." Marketing Presentation. N.p., n.d. Web. 11 Dec. 2016.
Analysis - Panmore Institute." Panmore Institute. N.p., 04 June 2016. Web. 9 Dec. 2016.
Wikipedia. Wikimedia Foundation, n.d. Web. 11 Dec. 2016.
Gregory, Lawrence. "Nike Inc. Marketing Mix (4Ps/Product, Place, Promotion, Price)
“NIKE, Inc. Reports Fiscal 2016 Fourth Quarter and Full Year Results.” Nike News,
“Types of Marketing Strategies (Interactive, Digital, Internet).” The Balance,