10 STEP
Marketing Plan for
NIKE

           Donna T. Sia
            July 2012




     www.donnasia.blogspot.com   1
Disclaimer
This 10 Step Marketing Plan is part of the mandatory
  requirements of Prof. Remigio Joseph De Ungria’s
  AGSB marketing management class.
The data included in this report are based on publicly
  available data such as those on internet websites,
  news, package declarations, public reports.
When appropriate, data are “masked” so as not to
  create unexpected conflicts.
The reports are posted and linked on slideshare, blogs
  and facebook so that there is easier sharing among
  students from different marketing classes.
        www.donnasia.blogspot.com
Steps 1 to 5
      The Nike
1.   Nike PTM are the athletes and hobbyists
2.   Who seek products that support performance.
3.   The market may choose Adidas, Reebok, Asics,
     New Balance, Puma, Fila
4.   The gap is all other brands are known for
5.   The market size is P 3.5 Billion.
     Nike’s share is P 2 Billion



              www.donnasia.blogspot.com
Steps 6 to 10

      Customers get in the game
      with Nike because…
6.   Nike Footwear is innovative when it comes
     to product design and the use of advance
     technology to maximize performance of the
     shoe.
7.   Is Priced more than Adidas for mid and low
     range by 5%-10% but not much price
     difference for the high range segment



                www.donnasia.blogspot.com
Nike + Community

8.    Communicates through and Experiences
      (Nike We Run, PBA, UAAP, Boxing-
      Pacquiao)
9.    Distributed through Department (multi-
      brand stores) and Nike outlets (mono-
      brand) nationwide
10.   Uses differentiation to maintain its
      leadership position.

               www.donnasia.blogspot.com
1. Nike Phil’s primary target
    market (PTM)*

   18-35 Years Old, Male, Social class A & B
   Plays Basketball, Runs with friends, Goes
    to the gym
   Joins basketball leagues (leisure, college,
    and corporate leagues), mass running and
    demand a shoe that provides comfort and
    supports performance

           www.donnasia.blogspot.com
PTM needs to excel in his sport
                                            Self-Actualization
                                                  Needs
                                           (Self-Development
It is fulfilling to win a game               & Realization)
      and get recognized.
                                           Esteem Needs
                                           (Recognition,
                                              Status)


    I am a team player.               Social Needs (sense of
                                         belonging, love)



                             Safety Needs (security, protection)




                          Physiological needs (food, water, shelter)


                                 Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler

                     www.donnasia.blogspot.com                                                                  7
2. Athletes and Hobbyist have
unique needs, wants & demands
   Athletes and hobbyists in realizing their talents and
   skills, needs to be recognized.

   Athletes and hobbyists prefer Nike because of its
   product design, prestige, brand credibility and
   awareness.

   They demand a shoe that uses advance technology
   such as flywire and lunarlight that will help them “fly
   high, land soft”.



         www.donnasia.blogspot.com
3a. Nike competes with
Adidas and other Sports
Brand
   Competitors: Adidas, Reebok, Asics,
    New Balance, Fila
   Indirect: Puma, Merrel, Skechers,
    Mizuno, Vans, Converse
   Variables: Price, Age, Specific Use
    (Sport), User, Brand Promise, Quality,
    Comfort, Design, Look, Availability

        www.donnasia.blogspot.com
Nike is #1 in the Philippines
                                                             as of 2012
                                              Sport vs. User Matrix
Sport/     Basketb   Running   Soccer/    Training   Tennis   Street
             all               Football
User


Athlete


Hobbyist


Leisure



               www.donnasia.blogspot.com
as of 2011


              Nike’s differentiated positioning:
                                                  Benefit Positioning vs. Brand Matrix

Basketball
                                                                                       Adidas
               Nike Kobe   Nike                    Nike       Adidas Rose Adidas Crazy Commander   Adidas
               System      Hyperfuse   Nike Airmax Overplay   3.5         Fast         TD          Isolation
Price
Quality
Style/ Look
Comfort
Technology
Prestige




                 Harder to stand out amidst the competitive clutter.
                            www.donnasia.blogspot.com
4. Nike positions by product
  innovation

Nike is the shoe that provides users the
  technology they need to enhance
  performance.
For athletes and hobbyists alike who want to
  give their best in every game just like their
  sports idols (Kobe).
Adidas is trying to compete by offering the
  same value.
         www.donnasia.blogspot.com
Positioning:

   Nike’s Famous Slogan:

   RUN LONG. STAY STRONG.
   FLY HIGH. LAND SOFT.
   TRAIN FAST. PLAY FAST



        www.donnasia.blogspot.com
5. Based on Nike distributor's
opinion:

Nike claims 60% market share for sports
   footwear business.

But claims 70-80% share for Nike dominated
   sports such as basketball and mass running.




       www.donnasia.blogspot.com
Based on Euromonitor:

   (2011) Nike claims 2.8% of total
    footwear business in the Philippines or
    equivalent to P 73B x 2.8% = P 2 Billion
   Audited Financial Statement of Nike
    Phils (from SEC) also showed a
    Revenue of P2. 12 B in 2011


        www.donnasia.blogspot.com
Based on Euromonitor:

   (2011) Adidas claims 1.3% of total
    footwear business in the Philippines or
    equivalent to P 73B x 1.3% = P 0.95
    Billion
   Audited Financial Statement of Adidas
    Phils (from SEC) also showed a
    Revenue of P1.3 Billion in 2011

        www.donnasia.blogspot.com
Estimated Market Size
(Sports Footwear)

   Total P 3.5 Billion
   Nike share is P 2 Billion
   Adidas Share P 1 Billion
   Other Brands P 0.5 Billion




        www.donnasia.blogspot.com
6. Side by Side:
Nike and Adidas




  www.donnasia.blogspot.com
6. The competition:




  Nike Kobe System VIII    AdiZERO Rose 2




      Nike Lebron 9       Adizero Crazy Light 2
        www.donnasia.blogspot.com
Adidas’ response to Nike
     Technology:




                              adiPRENE (Shock Absorption)
Nike Free (Barefoot Effect)
                              Bounce
Air (Cushioning)
                              Torsion (Stability)
Flywire (Lightweight)
                              Ground Control System (Stability)
Lunarlite (Lightweight)
                              Climacool (Temperature Control)




                www.donnasia.blogspot.com
7. Price

Nike                                   Adidas
Lebron 10                  8,995.00    Rose 3.5              8,995.00
Zoom Kobe VIII System      8,195.00    Rose 3                7,995.00
Zoom Hyper Disruptor       6,795.00    Adizero Crazy Light   7,995.00
Hyperdisruptor             6,795.00    Adipower Howard 3     6,995.00
Lunar Hyperdunk Low        6,495.00    D Howard Light        6,995.00
                                       Rose 773 Lighty       6,495.00
                        www.donnasia.blogspot.com
Price




    www.donnasia.blogspot.com
Price




    www.donnasia.blogspot.com
8a. Nike uses Advertising
     & Events and Experience



2.




1.


         www.donnasia.blogspot.com
8. Nike Campaigns:




    www.donnasia.blogspot.com
Nike We Run Manila




    www.donnasia.blogspot.com
Nike We Run Manila




    www.donnasia.blogspot.com
8b. Competitor promo

Show also how your key competitors
  communicate
Their commercials
Their websites

And why your communication stands out


     www.donnasia.blogspot.com
Kobe Manila Tour




    www.donnasia.blogspot.com
Nike and UAAP




   www.donnasia.blogspot.com
Adidas Street Party




    www.donnasia.blogspot.com
Adidas and UAAP




   www.donnasia.blogspot.com
9. Where to buy Nike?

 Nike is distributed through Department
 (multi-brand stores) and Nike outlets
 (mono-brand) nationwide.




     www.donnasia.blogspot.com
10. Nike’s Winning Strategy?

Nike differentiates using innovative
  technology to guarantee comfort and
  superior performance for athletes and
  hobbyists to win their games just like
  their idols!




      www.donnasia.blogspot.com
SUMMARY




www.donnasia.blogspot.com   35
Steps 1 to 5
      The Nike
1.   Nike PTM are the athletes and hobbyists
2.   Who seek products that support performance.
3.   The market may choose Adidas, Reebok, Asics,
     New Balance, Puma, Fila
4.   The gap is all other brands are known for
5.   The market size is P 3.5 Billion.
     Nike’s share is P 2 Billion



              www.donnasia.blogspot.com
Steps 6 to 10

      Customers get in the game
      with Nike because…
6.   Nike Footwear is innovative when it comes
     to product design and the use of advance
     technology to maximize performance of the
     shoe.
7.   Is Priced more than Adidas for mid and low
     range by 5%-10% but not much price
     difference for the high range segment



                www.donnasia.blogspot.com
Nike + Community

8.    Communicates through and Experiences
      (Nike We Run, PBA, UAAP, Boxing-
      Pacquiao)
9.    Distributed through Department (multi-
      brand stores) and Nike outlets (mono-
      brand) nationwide
10.   Uses differentiation to maintain its
      leadership position.

               www.donnasia.blogspot.com
Sources:

   Euromonitor
   Nike.com.ph
   Adidas.com




       www.donnasia.blogspot.com
10 STEP
Marketing Plan for
NIKE

           Donna T. Sia
            July 2012




     www.donnasia.blogspot.com   40

Markma 10 step marketing plan donna sia

  • 1.
    10 STEP Marketing Planfor NIKE Donna T. Sia July 2012 www.donnasia.blogspot.com 1
  • 2.
    Disclaimer This 10 StepMarketing Plan is part of the mandatory requirements of Prof. Remigio Joseph De Ungria’s AGSB marketing management class. The data included in this report are based on publicly available data such as those on internet websites, news, package declarations, public reports. When appropriate, data are “masked” so as not to create unexpected conflicts. The reports are posted and linked on slideshare, blogs and facebook so that there is easier sharing among students from different marketing classes. www.donnasia.blogspot.com
  • 3.
    Steps 1 to5 The Nike 1. Nike PTM are the athletes and hobbyists 2. Who seek products that support performance. 3. The market may choose Adidas, Reebok, Asics, New Balance, Puma, Fila 4. The gap is all other brands are known for 5. The market size is P 3.5 Billion. Nike’s share is P 2 Billion www.donnasia.blogspot.com
  • 4.
    Steps 6 to10 Customers get in the game with Nike because… 6. Nike Footwear is innovative when it comes to product design and the use of advance technology to maximize performance of the shoe. 7. Is Priced more than Adidas for mid and low range by 5%-10% but not much price difference for the high range segment www.donnasia.blogspot.com
  • 5.
    Nike + Community 8. Communicates through and Experiences (Nike We Run, PBA, UAAP, Boxing- Pacquiao) 9. Distributed through Department (multi- brand stores) and Nike outlets (mono- brand) nationwide 10. Uses differentiation to maintain its leadership position. www.donnasia.blogspot.com
  • 6.
    1. Nike Phil’sprimary target market (PTM)*  18-35 Years Old, Male, Social class A & B  Plays Basketball, Runs with friends, Goes to the gym  Joins basketball leagues (leisure, college, and corporate leagues), mass running and demand a shoe that provides comfort and supports performance www.donnasia.blogspot.com
  • 7.
    PTM needs toexcel in his sport Self-Actualization Needs (Self-Development It is fulfilling to win a game & Realization) and get recognized. Esteem Needs (Recognition, Status) I am a team player. Social Needs (sense of belonging, love) Safety Needs (security, protection) Physiological needs (food, water, shelter) Reference: Maslow’s Hierarcy of Needs Marketing Management, 11th ed, Philip Kotler www.donnasia.blogspot.com 7
  • 8.
    2. Athletes andHobbyist have unique needs, wants & demands Athletes and hobbyists in realizing their talents and skills, needs to be recognized. Athletes and hobbyists prefer Nike because of its product design, prestige, brand credibility and awareness. They demand a shoe that uses advance technology such as flywire and lunarlight that will help them “fly high, land soft”. www.donnasia.blogspot.com
  • 9.
    3a. Nike competeswith Adidas and other Sports Brand  Competitors: Adidas, Reebok, Asics, New Balance, Fila  Indirect: Puma, Merrel, Skechers, Mizuno, Vans, Converse  Variables: Price, Age, Specific Use (Sport), User, Brand Promise, Quality, Comfort, Design, Look, Availability www.donnasia.blogspot.com
  • 10.
    Nike is #1in the Philippines as of 2012 Sport vs. User Matrix Sport/ Basketb Running Soccer/ Training Tennis Street all Football User Athlete Hobbyist Leisure www.donnasia.blogspot.com
  • 11.
    as of 2011 Nike’s differentiated positioning: Benefit Positioning vs. Brand Matrix Basketball Adidas Nike Kobe Nike Nike Adidas Rose Adidas Crazy Commander Adidas System Hyperfuse Nike Airmax Overplay 3.5 Fast TD Isolation Price Quality Style/ Look Comfort Technology Prestige Harder to stand out amidst the competitive clutter. www.donnasia.blogspot.com
  • 12.
    4. Nike positionsby product innovation Nike is the shoe that provides users the technology they need to enhance performance. For athletes and hobbyists alike who want to give their best in every game just like their sports idols (Kobe). Adidas is trying to compete by offering the same value. www.donnasia.blogspot.com
  • 13.
    Positioning:  Nike’s Famous Slogan:  RUN LONG. STAY STRONG.  FLY HIGH. LAND SOFT.  TRAIN FAST. PLAY FAST www.donnasia.blogspot.com
  • 14.
    5. Based onNike distributor's opinion: Nike claims 60% market share for sports footwear business. But claims 70-80% share for Nike dominated sports such as basketball and mass running. www.donnasia.blogspot.com
  • 15.
    Based on Euromonitor:  (2011) Nike claims 2.8% of total footwear business in the Philippines or equivalent to P 73B x 2.8% = P 2 Billion  Audited Financial Statement of Nike Phils (from SEC) also showed a Revenue of P2. 12 B in 2011 www.donnasia.blogspot.com
  • 16.
    Based on Euromonitor:  (2011) Adidas claims 1.3% of total footwear business in the Philippines or equivalent to P 73B x 1.3% = P 0.95 Billion  Audited Financial Statement of Adidas Phils (from SEC) also showed a Revenue of P1.3 Billion in 2011 www.donnasia.blogspot.com
  • 17.
    Estimated Market Size (SportsFootwear)  Total P 3.5 Billion  Nike share is P 2 Billion  Adidas Share P 1 Billion  Other Brands P 0.5 Billion www.donnasia.blogspot.com
  • 18.
    6. Side bySide: Nike and Adidas www.donnasia.blogspot.com
  • 19.
    6. The competition: Nike Kobe System VIII AdiZERO Rose 2 Nike Lebron 9 Adizero Crazy Light 2 www.donnasia.blogspot.com
  • 20.
    Adidas’ response toNike Technology: adiPRENE (Shock Absorption) Nike Free (Barefoot Effect) Bounce Air (Cushioning) Torsion (Stability) Flywire (Lightweight) Ground Control System (Stability) Lunarlite (Lightweight) Climacool (Temperature Control) www.donnasia.blogspot.com
  • 21.
    7. Price Nike Adidas Lebron 10 8,995.00 Rose 3.5 8,995.00 Zoom Kobe VIII System 8,195.00 Rose 3 7,995.00 Zoom Hyper Disruptor 6,795.00 Adizero Crazy Light 7,995.00 Hyperdisruptor 6,795.00 Adipower Howard 3 6,995.00 Lunar Hyperdunk Low 6,495.00 D Howard Light 6,995.00 Rose 773 Lighty 6,495.00 www.donnasia.blogspot.com
  • 22.
    Price www.donnasia.blogspot.com
  • 23.
    Price www.donnasia.blogspot.com
  • 24.
    8a. Nike usesAdvertising & Events and Experience 2. 1. www.donnasia.blogspot.com
  • 25.
    8. Nike Campaigns: www.donnasia.blogspot.com
  • 26.
    Nike We RunManila www.donnasia.blogspot.com
  • 27.
    Nike We RunManila www.donnasia.blogspot.com
  • 28.
    8b. Competitor promo Showalso how your key competitors communicate Their commercials Their websites And why your communication stands out www.donnasia.blogspot.com
  • 29.
    Kobe Manila Tour www.donnasia.blogspot.com
  • 30.
    Nike and UAAP www.donnasia.blogspot.com
  • 31.
    Adidas Street Party www.donnasia.blogspot.com
  • 32.
    Adidas and UAAP www.donnasia.blogspot.com
  • 33.
    9. Where tobuy Nike? Nike is distributed through Department (multi-brand stores) and Nike outlets (mono-brand) nationwide. www.donnasia.blogspot.com
  • 34.
    10. Nike’s WinningStrategy? Nike differentiates using innovative technology to guarantee comfort and superior performance for athletes and hobbyists to win their games just like their idols! www.donnasia.blogspot.com
  • 35.
  • 36.
    Steps 1 to5 The Nike 1. Nike PTM are the athletes and hobbyists 2. Who seek products that support performance. 3. The market may choose Adidas, Reebok, Asics, New Balance, Puma, Fila 4. The gap is all other brands are known for 5. The market size is P 3.5 Billion. Nike’s share is P 2 Billion www.donnasia.blogspot.com
  • 37.
    Steps 6 to10 Customers get in the game with Nike because… 6. Nike Footwear is innovative when it comes to product design and the use of advance technology to maximize performance of the shoe. 7. Is Priced more than Adidas for mid and low range by 5%-10% but not much price difference for the high range segment www.donnasia.blogspot.com
  • 38.
    Nike + Community 8. Communicates through and Experiences (Nike We Run, PBA, UAAP, Boxing- Pacquiao) 9. Distributed through Department (multi- brand stores) and Nike outlets (mono- brand) nationwide 10. Uses differentiation to maintain its leadership position. www.donnasia.blogspot.com
  • 39.
    Sources:  Euromonitor  Nike.com.ph  Adidas.com www.donnasia.blogspot.com
  • 40.
    10 STEP Marketing Planfor NIKE Donna T. Sia July 2012 www.donnasia.blogspot.com 40