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NIKE plus




             20114109 Chanwook Jun
            20113818 Joonyoung Kim
              20114168 Kyuwan Choi
            20113969 Jungwook Eom
                 20114257 Meherun
Company Overview
History & Heritage of NIKE




1950s    1960s      1970s    1980s   1990s   2000s




                       IPO
Product Overview
What is NIKE+ ?
Competitor Analysis
Global Market Share and Direct Competitor

              Global Market Share
                        Converse             K-Swiss
   ASICS
             Skechers
                          4%                   2%
    5%                                                           NIKE+                       miCoach
               5%

    New                                                •    Exclusively for Nike    •   Any digital music player
                                      Nike
   Balancce                                                 shoes and iPods             and any shoes
                                      31%
       6%
                                                       •    Nike+ iPod Sport Kit    •   miCoach Pacer package
 Reebok                                                     ($29.00)                    ($139.00)
  6%
                                                       •    Voice Coaching          •   Real time Voice Coaching
       Puma
                        Adidas
                                   Others                   (Distance-based)            (Time-Based)
        7%
                         16%
                                    18%                •    The website acts like   •   Scientific Analysis
                                                            SNS, mixed with             through heart rate monitor
                                                            Facebook and Twitter
                                                           To help people exercise their workouts in terms of
                                                                      training data and coaching
          Adidas entered
   the wearable sensor market                          ⇒Simple and                  ⇒More expensive model for
                                                        inexpensive model               a serious runner
      to compete with NIKE                              for a casual runner
Targeting
Targets the customer
      who wants to have shoes with high ability and smart
                                Smart




                            Previous shoes

Uncomfortable and                                    Comfortable and
   inexpensive
                    B              A             C     expensive



                        D
                                             E



                                Basic
Positioning
Pursues a disruptive positioning strategy
             instead of a traditional positioning strategy


Traditional Positioning                           Disruptive Positioning

               Shoes Category




                                                  Attribute 2
 Attribute 2




                      Adidas



                 Under           New
                 Armour         Balance
                                                                Adidas

                                    Attribute 1                          Attribute 1
NIKE+ Situation
 S
 •   Innovative features
                                                                                           W
 •   Broaden any types of runners
 •   Sufficient funds and resources for core        •   Limited product selection
     running area                                   •   Need to improve recognition
 •   Success of previous AD campaigns
 •   Strong brand image
 •   Good quality
                                               NIKE +
                                               SWOT

 •   Diversify the revenue of division
 •   Opportunity to reach a broad range of
                                                    •   Increased Competition (making similar
     consumers through running and
                                                        sues)
     innovative technology with improving
                                                    •   Changing taste
     running experience
 •   Partnership with apple


 O                                                                                          T
IMC Campaign Analysis
Specific Objective: To reach a broad range of consumer
across various segments within the running industry

Purpose for their achievement

• To drive traffic to the website to gain basic demographic information and collect c
  onsumer email addresses.
• To use the data for the specific targeted ads that might even vary across all Nike
  products depending on the consumer.

Tool

• Advertising, Sales Promotion, Direct Marketing Program, Internet/Interactive, PR
  , Event Marketing and Sponsorship, Viral Marketing
Advertisement
                                   Objectives

• Normal people who are not celebrities
• Running and fitness components of the product, technological advantages of
  their product, relationship with Apple and iPod.
• Upcoming Nike+ Event : Nike+ Human Race 10K

                                   Strategies
• Transformation
    • By suggesting the type of experiences consumers might have when they
       consume the product or service

• Emotional balance
   • Pride, Achievement, Ambition and Actualization were attached with Nike+
   products and also being kind by joining the charity race

Tools: TV commercials, print media, radio advertisements and internet banner ads
Sales Promotion
                   Lack of sales promotion
                             Strategy

       Push Promotion                    Pull Promotion
    Discount on old models              Human Race 10K
Direct Marketing
Both Nike and Apple send “e-mails” to customers from their databases


• Collaboration ADs with another strong branded product, such as Apple

• The multiple synergies between Nike and Apple

• Unique mail by only Nike+
Internet/Interactive Strategy
    The most utilized component of the Nike+ IMC media mix
•    Relationship with Apple.
•    Highly interactive and customizable by Nike+ and iTunes
•    Information about marathon and racing events on Nike+ website
•    Internet banner ads to advertise Nike+ products.
Internet/Interactive Strategy
                +
Internet banner ADs Nike+




                                  Premium
                                  Consumer
Product + Content + Community =
                                  Experience
Public Relation Programs
   Collaboration with three renowned charity organizations.

• Charitable component to their Nike+ IMC through the Human Race 10k.

• Involvement of the participants with the charitable decision.
Event Marketing
                        Nike+ Human Race 10K
• Large global event that have attracted over millions of runners world wide
• New ways to compete and race, courses through legendary landmarks, each
  ending with a headlining musical act
• Brought an entirely new running experience to consumers
• Involvement of core target was maximized by integrated communication
  strategies including on/off-line media exposures.
Viral Marketing
• Creates buzz by viral marketing with websites, such as YouTube and Facebook
• Implements word of mouth through events and campaigns
• Video clips were taken on various forms such as TV commercials, consumer
  how to videos, and product reviews


                        “Nike + Men vs Women Challenges”
Evaluation
                                        Advertisement

          viral                                                               Sales
                                                                            promotion
              Nike runners
                                                                  Discount, Event
                                                                                                   Apple
      Event                             NIKE Website
                     Registration                         E-mail                        Customer data

                                                                                DM
                         Partnership              Nike iPod kit
                         With charity
        PR               organization
                                              Interactive
                                               Strategy




 1. Increased in demand to spend in marketing for overall NIKE+

 2. Increased growth in unit sales

 3. Increased audience (Audience: Subscribers, registered people)
Recommendation
Viral Marketing
 Engaged more in social network activities

Event Marketing
 Division of the event based on the age
  Ex) Teenagers, Middle age, Seniors

 International Competition among the winner of the events
  (Nike+ World Cup)

 In event advertising, try to focus more on product

Other
 Partnership with the game producer

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Nike Plus_KAIST MBA

  • 1. NIKE plus 20114109 Chanwook Jun 20113818 Joonyoung Kim 20114168 Kyuwan Choi 20113969 Jungwook Eom 20114257 Meherun
  • 2. Company Overview History & Heritage of NIKE 1950s 1960s 1970s 1980s 1990s 2000s IPO
  • 4. Competitor Analysis Global Market Share and Direct Competitor Global Market Share Converse K-Swiss ASICS Skechers 4% 2% 5% NIKE+ miCoach 5% New • Exclusively for Nike • Any digital music player Nike Balancce shoes and iPods and any shoes 31% 6% • Nike+ iPod Sport Kit • miCoach Pacer package Reebok ($29.00) ($139.00) 6% • Voice Coaching • Real time Voice Coaching Puma Adidas Others (Distance-based) (Time-Based) 7% 16% 18% • The website acts like • Scientific Analysis SNS, mixed with through heart rate monitor Facebook and Twitter To help people exercise their workouts in terms of training data and coaching Adidas entered the wearable sensor market ⇒Simple and ⇒More expensive model for inexpensive model a serious runner to compete with NIKE for a casual runner
  • 5. Targeting Targets the customer who wants to have shoes with high ability and smart Smart Previous shoes Uncomfortable and Comfortable and inexpensive B A C expensive D E Basic
  • 6. Positioning Pursues a disruptive positioning strategy instead of a traditional positioning strategy Traditional Positioning Disruptive Positioning Shoes Category Attribute 2 Attribute 2 Adidas Under New Armour Balance Adidas Attribute 1 Attribute 1
  • 7. NIKE+ Situation S • Innovative features W • Broaden any types of runners • Sufficient funds and resources for core • Limited product selection running area • Need to improve recognition • Success of previous AD campaigns • Strong brand image • Good quality NIKE + SWOT • Diversify the revenue of division • Opportunity to reach a broad range of • Increased Competition (making similar consumers through running and sues) innovative technology with improving • Changing taste running experience • Partnership with apple O T
  • 8. IMC Campaign Analysis Specific Objective: To reach a broad range of consumer across various segments within the running industry Purpose for their achievement • To drive traffic to the website to gain basic demographic information and collect c onsumer email addresses. • To use the data for the specific targeted ads that might even vary across all Nike products depending on the consumer. Tool • Advertising, Sales Promotion, Direct Marketing Program, Internet/Interactive, PR , Event Marketing and Sponsorship, Viral Marketing
  • 9. Advertisement Objectives • Normal people who are not celebrities • Running and fitness components of the product, technological advantages of their product, relationship with Apple and iPod. • Upcoming Nike+ Event : Nike+ Human Race 10K Strategies • Transformation • By suggesting the type of experiences consumers might have when they consume the product or service • Emotional balance • Pride, Achievement, Ambition and Actualization were attached with Nike+ products and also being kind by joining the charity race Tools: TV commercials, print media, radio advertisements and internet banner ads
  • 10. Sales Promotion Lack of sales promotion Strategy Push Promotion Pull Promotion Discount on old models Human Race 10K
  • 11. Direct Marketing Both Nike and Apple send “e-mails” to customers from their databases • Collaboration ADs with another strong branded product, such as Apple • The multiple synergies between Nike and Apple • Unique mail by only Nike+
  • 12. Internet/Interactive Strategy The most utilized component of the Nike+ IMC media mix • Relationship with Apple. • Highly interactive and customizable by Nike+ and iTunes • Information about marathon and racing events on Nike+ website • Internet banner ads to advertise Nike+ products.
  • 13. Internet/Interactive Strategy + Internet banner ADs Nike+ Premium Consumer Product + Content + Community = Experience
  • 14. Public Relation Programs Collaboration with three renowned charity organizations. • Charitable component to their Nike+ IMC through the Human Race 10k. • Involvement of the participants with the charitable decision.
  • 15. Event Marketing Nike+ Human Race 10K • Large global event that have attracted over millions of runners world wide • New ways to compete and race, courses through legendary landmarks, each ending with a headlining musical act • Brought an entirely new running experience to consumers • Involvement of core target was maximized by integrated communication strategies including on/off-line media exposures.
  • 16. Viral Marketing • Creates buzz by viral marketing with websites, such as YouTube and Facebook • Implements word of mouth through events and campaigns • Video clips were taken on various forms such as TV commercials, consumer how to videos, and product reviews “Nike + Men vs Women Challenges”
  • 17. Evaluation Advertisement viral Sales promotion Nike runners Discount, Event Apple Event NIKE Website Registration E-mail Customer data DM Partnership Nike iPod kit With charity PR organization Interactive Strategy 1. Increased in demand to spend in marketing for overall NIKE+ 2. Increased growth in unit sales 3. Increased audience (Audience: Subscribers, registered people)
  • 18. Recommendation Viral Marketing  Engaged more in social network activities Event Marketing  Division of the event based on the age Ex) Teenagers, Middle age, Seniors  International Competition among the winner of the events (Nike+ World Cup)  In event advertising, try to focus more on product Other  Partnership with the game producer