Received an offer from Port Authority for exclusive naming rights on a LaGuardia Airport terminal. Our task was to analyze the offer's potential benefits vs. risks, decide if it is profitable to pursue, and present our findings to Nike's CEO (our class).
• Conducted primary (in-depth interviews) and secondary research about offer
• Presented findings and recommendations using: PowerPoint, short video, estimated ROI, quotes from interviewees
2. Agenda
Introduction to the New York Marketing/Advertising Team
Purpose
Opportunity
Objective/Goals
Benefits of airport ads
Cost to Nike
Potential Revenue generated
Ad agency
Displays
Closing statements
3. Nike’s Marketing Team: Who we are
Jamel D. Nelson
President of
Marketing Research
Eyal Shahar
Vice President of
Marketing
Joicy Acauro
Marketing &
Product Research
Shaniann Flores
Lead Financial
Officer
Emily
Soniperasud
PR & Events
Coordinator
7. Opportunity
New York/New Jersey Port Authority has decided to lease one of
their terminals for the first time ever.
Offer includes
Five year lease
Option to have Terminal B called
Nike Terminal
We will have access to:
Four concourses
2 three-story wings
1 four-story central station
12 or more large displays
750,000 square ft. of floor space
9. Airport Overview
Four Terminals 19 Airlines
24 Million
passengers (2011)
Services Delta, US
Airways & United,
American Airlines
* Service companies like Delta (1.4 Billion in renovations), US Airways and United, American Airlines
25. Airport
Considered a cosmopolitan environment
Gateway to the planet
Consumer
Expects to dream in airports
Enjoys browsing airport advertisements
Brand
Image of modernity and innovation
Foster feelings of prestige
Perceptions In The Airport
26. Nike doesn’t advertise very much
Consumers are actually eager for more Nike advertising
Low knowledge of new Nike products
Airport offers opportunity to educate consumers on Nike
Lack of excitement for Nike products
Airport can showcase latest Nike innovations
Consumer Feelings
29. Super Bowl 2014
Expected to generate $500 - $600 for local
economy
More than 100,000 football fans are
expected to travel to New York/New Jersey
Nike generated 23.4 billion
30. COST
Port Authority $5 million per year
$600,000 per year on advertisement
$180, 000 per year agency fees
JCDecaux - International media and communications company
founded in 1964. Number one outdoor advertising specialist in the
world, as well as the market leader in Europe and in Asia Pacific
Blue Line Media - Advertising company that offers advertising
media in 300 cities across the United States
38. Now, Let’s review:
One in a life
time
opportunity
Access to
massive
advertisement
Positive
consumer
response
Company
growth
39. “I think Nike should have one, they beyond deserve it.
Also it will bring much needed jobs to NYC.”
“It would be something unique I would feel that Nike wants
to promote their products in a different way than others.”
“If its done in a way that creates a "WOW" moment in my
mind, then I will become very excited as a consumer.”
“Makes sense since people want to travel comfortably”
Consumer thoughts
Editor's Notes
The Port Authority of NY and NJ reached the NIKE Marketing Department to offer exclusively naming rights for Terminal B at New York’s LaGuardia Airport. The sponsorship agreement would change the name of Terminal B to “NIKE Terminal”. The opportunity would span five years. This agreement can be renewed.
* 33% of all overseas travel to the U.S. is to NYC.
* 47 million tourists visited NYC in 2011
* Laguradia 2011 stats: 24 mil. passengers, 43% of them- Business passengers, vast majority of travelers age 25-54, ave. income 120k, ave. market value of home- over 600k.
* Service companies like Delta (1.4 Bil in renovations), US Airways and United, American
* Index: Laguardia Traveler Lifestyle: three times more likely to spend $500+ on shoes, two and a half times more likely to spend on casual clothing, 56% attended a sporting event, 2-3 times more likely to buy technological devices.
* 33% of all overseas travel to the U.S. is to NYC.
* 47 million tourists visited NYC in 2011
* Laguradia 2011 stats: 24 mil. passengers, 43% of them- Business passengers, vast majority of travelers age 25-54, ave. income 120k, ave. market value of home- over 600k.
* Service companies like Delta (1.4 Bil in renovations), US Airways and United, American
* Index: Laguardia Traveler Lifestyle: three times more likely to spend $500+ on shoes, two and a half times more likely to spend on casual clothing, 56% attended a sporting event, 2-3 times more likely to buy technological devices.