Nike entered the fitness tracker market in 2006 with the Nike FuelBand, heavily marketing it towards athletes. However, FitBit has dominated the market since 2009 with a 68% market share compared to Nike's 10%, appealing more towards everyday health. To gain market share, Nike should shift its message from athletes to everyday healthy living, develop a Nike+ Health sub-brand, sponsor healthy programs and marathons, and hire new spokespeople not focused solely on sports. This will help Nike position itself amongst "The Healthy Consumer" and cost an estimated $4.1 million.
MKT 228 Online Advertising Campaign Short Paper Guidelines a.docxroushhsiu
MKT 228 Online Advertising Campaign Short Paper Guidelines and Rubric
Overview
Using your final project, create an online advertising campaign for your company. Specifically, make a list of the media (at least five) that would be most effective
in reaching your target audience. Explain your reasoning for each. Hint: Utilize the advertising objectives to help convey your message.
Format: This case analysis should follow these formatting guidelines: 1–2 pages, double spacing, 12-point Times New Roman font, 1-inch margins, and a
minimum of 2 sources.
Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value
Advertising
Objectives
Meets “Proficient” criteria and
uses clear and relevant
examples to establish the
context for the media selection
Identifies the advertising
objectives and connects them to
media selection
Identifies the advertising
objectives, but does not
connect them to media
selection
Does not include advertising
objectives
30
Media Selection Meets “Proficient” criteria and
also provides unique media
suggestions
Identifies appropriate media
selections for an advertising
campaign
Identifies media selections for
an advertising campaign, but
they lack appropriateness
Does not include media
selection
30
Reasoning Meets “Proficient” criteria and
justifies the reasoning with clear
and relevant examples that
firmly establish the
effectiveness of the choices
Provides appropriate reasoning
for the selection of the media,
using clear and relevant
examples
Provides reasoning for the
selection of the media, but does
not use clear examples
Does not include reasoning
30
Articulation of
Response
Submission is free of errors
related to citations, grammar,
spelling, syntax, and
organization and is presented in
a professional and easy-to-read
format
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact
readability and articulation of
main ideas
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
10
Total 100%
Final Paper 2
Final Paper
Southern New Hampshire University
MKT 228
December 16, 2018
Executive Summary
This report presents a marketing plan for Nike Inc. products that were recently introduced by the company. It contains a comprehensive analysis of various components including the market and its competitor’s analysis. Besides, the report discusses Nike’s objectives as it looks forward to expanding its market and the marketing mix strategies that are employed in terms of 4ps using new t.
8
Week 6 Assignment 2
April Monk
Strayer University
BUS499 Business Administration Capstone
Dr. Grizzell
02/10/2019
Introduction
The Nike Company is a giant company whose operation are influenced by a number of factors. The environment under which the company operates influence its level of production, sales and marketing. Additionally, the environment is an important function of the company’s human resource management. The industry which the company operates in is highly competitive due to existence of other companies. The company has come up with extensive strategies which increase its ability to compete and increase its customer base. The five forces of competition are a major ingredient of the company’s competitive design. The management in the company understand the importance of adopted a well-structured design to enhance future improvements and control external threats and opportunities. The strengths and weaknesses of the company also influence production and marketing. The available resources, capabilities and core competencies are integral in achieving a vantage position in the sports merchandise industry.
General environment
Sports merchandise industry is made up of different components which directly influence the existing company. The world of sports has grown in popularity during the last few decades. This has prompted the growth of a robust industry which focuses on manufacturing and selling sportswear and other accessories. The environment in this industry is highly competitive due to existence of many company which produce similar products. Companies such as Adidas, Puma, and Mikasa among others offer competition to Nike. Therefore, the existence of a highly competitive nature within this industry ranks as the most influential part of the environment. Technological advancement also plays a huge part in influencing this industry. The world of sports has embraced application of new and innovative technologies which improve performance. The company has to adapt to the change in customer preference in terms of the choice of technology. This is because a customer influences the company’s level of sales and production.
Five forces of competition
The five forces of competition are important to the company since they influence its operations. The factors determine how much the sportswear industry is attractive thereby influencing the strategies laid out by the company. The forces also determine the attractiveness of this industry in terms of favorable competition and likely profit margins. The factors also directly influence the company’s ability to give good services to its customers thus gaining loyalty. These microenvironment forces help the Nike Company to apply core competencies and resources to achieve high profits.
Item 1
The onset of new sportswear companies whose products are almost autonomous creates a threat to the firm. These products are a good customer substitute. Some customers go these products since they solve.
Combined the attached three papers together to flow into one docum.docxdrandy1
Combined the attached three papers together to flow into one document in grammatical sense.
Running Head: NIKE INC. BUSINESS STRATEGIES
1
NIKE INC. BUSINESS STRATEGIES
8
Assignment 3: Business-Level and Corporate-Level Strategies
Chet Walker
Strayer University
Professor Hassan Yemer
BUS 499 – Business Administration Capstone
Winter 2019
Nike Inc. Business Strategies
The success of any business is influenced by planning, preparation, and execution. The success of a business starts with defining the business’s strategy at the corporate and business level. The corporate level strategy is the planning pyramid of a business which defines the main purpose of the business. The target destination influences all the strategies and decisions of the business. Business level strategies detail the actions taken to offer value to customers and gain competitive advantage through exploiting core competencies in specific product or service markets. The business level strategy is influenced by the firm’s position relative to its competitors as well as the five forces of competition. In any business organization, consumers are the foundation of its business level strategy. Nike Inc. has been continuously focusing on innovation to develop and grow its business. The paper presents Nike’s business level strategies and corporate level strategies that will help the company to gain competitive advantages in the long-term. The paper will also examine Nike’s competitive environment to determine the most significant competitors in the industry.
Business-Level Strategies
At a business-level, Nike utilizes a combination of two strategies to ensure the offered customer unique products and gain a competitive advantage in the market. Nike Inc. uses a combination of product differentiation and cost leadership to win a greater share in the market. The company differentiates its products from other competitors through product innovation, high-quality products, and technology development. Differentiation at Nike Inc. enables the company to build its brand image in the global market. In product differentiation, for example, Nike integrates its cutting-edge design for its shoes. Nike Inc. has utilized innovation and technology to offer customers high-value products (Mahdi et al., 2015). For example, customers can design their products in Nike’s website and get it within the shortest time possible. The company has also utilized research and development initiative to ensure continuous innovation and product development to maintain its competitive advantage in the market.
Nike does not utilize overall cost leadership as compared to some of its competitors and new entrants in the industry. Their products are higher end prices which customers are willing to pay because of their unique quality and value in the product. Nike ID and other personalized procedures including college and sports sponsorships help the company to enhance customer’s perceptio.
Combined the attached three papers together to flow into one docum.docxcargillfilberto
Combined the attached three papers together to flow into one document in grammatical sense.
Running Head: NIKE INC. BUSINESS STRATEGIES
1
NIKE INC. BUSINESS STRATEGIES
8
Assignment 3: Business-Level and Corporate-Level Strategies
Chet Walker
Strayer University
Professor Hassan Yemer
BUS 499 – Business Administration Capstone
Winter 2019
Nike Inc. Business Strategies
The success of any business is influenced by planning, preparation, and execution. The success of a business starts with defining the business’s strategy at the corporate and business level. The corporate level strategy is the planning pyramid of a business which defines the main purpose of the business. The target destination influences all the strategies and decisions of the business. Business level strategies detail the actions taken to offer value to customers and gain competitive advantage through exploiting core competencies in specific product or service markets. The business level strategy is influenced by the firm’s position relative to its competitors as well as the five forces of competition. In any business organization, consumers are the foundation of its business level strategy. Nike Inc. has been continuously focusing on innovation to develop and grow its business. The paper presents Nike’s business level strategies and corporate level strategies that will help the company to gain competitive advantages in the long-term. The paper will also examine Nike’s competitive environment to determine the most significant competitors in the industry.
Business-Level Strategies
At a business-level, Nike utilizes a combination of two strategies to ensure the offered customer unique products and gain a competitive advantage in the market. Nike Inc. uses a combination of product differentiation and cost leadership to win a greater share in the market. The company differentiates its products from other competitors through product innovation, high-quality products, and technology development. Differentiation at Nike Inc. enables the company to build its brand image in the global market. In product differentiation, for example, Nike integrates its cutting-edge design for its shoes. Nike Inc. has utilized innovation and technology to offer customers high-value products (Mahdi et al., 2015). For example, customers can design their products in Nike’s website and get it within the shortest time possible. The company has also utilized research and development initiative to ensure continuous innovation and product development to maintain its competitive advantage in the market.
Nike does not utilize overall cost leadership as compared to some of its competitors and new entrants in the industry. Their products are higher end prices which customers are willing to pay because of their unique quality and value in the product. Nike ID and other personalized procedures including college and sports sponsorships help the company to enhance customer’s perceptio.
MKT 228 Online Advertising Campaign Short Paper Guidelines a.docxroushhsiu
MKT 228 Online Advertising Campaign Short Paper Guidelines and Rubric
Overview
Using your final project, create an online advertising campaign for your company. Specifically, make a list of the media (at least five) that would be most effective
in reaching your target audience. Explain your reasoning for each. Hint: Utilize the advertising objectives to help convey your message.
Format: This case analysis should follow these formatting guidelines: 1–2 pages, double spacing, 12-point Times New Roman font, 1-inch margins, and a
minimum of 2 sources.
Critical Elements Exemplary (100%) Proficient (85%) Needs Improvement (55%) Not Evident (0%) Value
Advertising
Objectives
Meets “Proficient” criteria and
uses clear and relevant
examples to establish the
context for the media selection
Identifies the advertising
objectives and connects them to
media selection
Identifies the advertising
objectives, but does not
connect them to media
selection
Does not include advertising
objectives
30
Media Selection Meets “Proficient” criteria and
also provides unique media
suggestions
Identifies appropriate media
selections for an advertising
campaign
Identifies media selections for
an advertising campaign, but
they lack appropriateness
Does not include media
selection
30
Reasoning Meets “Proficient” criteria and
justifies the reasoning with clear
and relevant examples that
firmly establish the
effectiveness of the choices
Provides appropriate reasoning
for the selection of the media,
using clear and relevant
examples
Provides reasoning for the
selection of the media, but does
not use clear examples
Does not include reasoning
30
Articulation of
Response
Submission is free of errors
related to citations, grammar,
spelling, syntax, and
organization and is presented in
a professional and easy-to-read
format
Submission has no major errors
related to citations, grammar,
spelling, syntax, or organization
Submission has major errors
related to citations, grammar,
spelling, syntax, or organization
that negatively impact
readability and articulation of
main ideas
Submission has critical errors
related to citations, grammar,
spelling, syntax, or organization
that prevent understanding of
ideas
10
Total 100%
Final Paper 2
Final Paper
Southern New Hampshire University
MKT 228
December 16, 2018
Executive Summary
This report presents a marketing plan for Nike Inc. products that were recently introduced by the company. It contains a comprehensive analysis of various components including the market and its competitor’s analysis. Besides, the report discusses Nike’s objectives as it looks forward to expanding its market and the marketing mix strategies that are employed in terms of 4ps using new t.
8
Week 6 Assignment 2
April Monk
Strayer University
BUS499 Business Administration Capstone
Dr. Grizzell
02/10/2019
Introduction
The Nike Company is a giant company whose operation are influenced by a number of factors. The environment under which the company operates influence its level of production, sales and marketing. Additionally, the environment is an important function of the company’s human resource management. The industry which the company operates in is highly competitive due to existence of other companies. The company has come up with extensive strategies which increase its ability to compete and increase its customer base. The five forces of competition are a major ingredient of the company’s competitive design. The management in the company understand the importance of adopted a well-structured design to enhance future improvements and control external threats and opportunities. The strengths and weaknesses of the company also influence production and marketing. The available resources, capabilities and core competencies are integral in achieving a vantage position in the sports merchandise industry.
General environment
Sports merchandise industry is made up of different components which directly influence the existing company. The world of sports has grown in popularity during the last few decades. This has prompted the growth of a robust industry which focuses on manufacturing and selling sportswear and other accessories. The environment in this industry is highly competitive due to existence of many company which produce similar products. Companies such as Adidas, Puma, and Mikasa among others offer competition to Nike. Therefore, the existence of a highly competitive nature within this industry ranks as the most influential part of the environment. Technological advancement also plays a huge part in influencing this industry. The world of sports has embraced application of new and innovative technologies which improve performance. The company has to adapt to the change in customer preference in terms of the choice of technology. This is because a customer influences the company’s level of sales and production.
Five forces of competition
The five forces of competition are important to the company since they influence its operations. The factors determine how much the sportswear industry is attractive thereby influencing the strategies laid out by the company. The forces also determine the attractiveness of this industry in terms of favorable competition and likely profit margins. The factors also directly influence the company’s ability to give good services to its customers thus gaining loyalty. These microenvironment forces help the Nike Company to apply core competencies and resources to achieve high profits.
Item 1
The onset of new sportswear companies whose products are almost autonomous creates a threat to the firm. These products are a good customer substitute. Some customers go these products since they solve.
Combined the attached three papers together to flow into one docum.docxdrandy1
Combined the attached three papers together to flow into one document in grammatical sense.
Running Head: NIKE INC. BUSINESS STRATEGIES
1
NIKE INC. BUSINESS STRATEGIES
8
Assignment 3: Business-Level and Corporate-Level Strategies
Chet Walker
Strayer University
Professor Hassan Yemer
BUS 499 – Business Administration Capstone
Winter 2019
Nike Inc. Business Strategies
The success of any business is influenced by planning, preparation, and execution. The success of a business starts with defining the business’s strategy at the corporate and business level. The corporate level strategy is the planning pyramid of a business which defines the main purpose of the business. The target destination influences all the strategies and decisions of the business. Business level strategies detail the actions taken to offer value to customers and gain competitive advantage through exploiting core competencies in specific product or service markets. The business level strategy is influenced by the firm’s position relative to its competitors as well as the five forces of competition. In any business organization, consumers are the foundation of its business level strategy. Nike Inc. has been continuously focusing on innovation to develop and grow its business. The paper presents Nike’s business level strategies and corporate level strategies that will help the company to gain competitive advantages in the long-term. The paper will also examine Nike’s competitive environment to determine the most significant competitors in the industry.
Business-Level Strategies
At a business-level, Nike utilizes a combination of two strategies to ensure the offered customer unique products and gain a competitive advantage in the market. Nike Inc. uses a combination of product differentiation and cost leadership to win a greater share in the market. The company differentiates its products from other competitors through product innovation, high-quality products, and technology development. Differentiation at Nike Inc. enables the company to build its brand image in the global market. In product differentiation, for example, Nike integrates its cutting-edge design for its shoes. Nike Inc. has utilized innovation and technology to offer customers high-value products (Mahdi et al., 2015). For example, customers can design their products in Nike’s website and get it within the shortest time possible. The company has also utilized research and development initiative to ensure continuous innovation and product development to maintain its competitive advantage in the market.
Nike does not utilize overall cost leadership as compared to some of its competitors and new entrants in the industry. Their products are higher end prices which customers are willing to pay because of their unique quality and value in the product. Nike ID and other personalized procedures including college and sports sponsorships help the company to enhance customer’s perceptio.
Combined the attached three papers together to flow into one docum.docxcargillfilberto
Combined the attached three papers together to flow into one document in grammatical sense.
Running Head: NIKE INC. BUSINESS STRATEGIES
1
NIKE INC. BUSINESS STRATEGIES
8
Assignment 3: Business-Level and Corporate-Level Strategies
Chet Walker
Strayer University
Professor Hassan Yemer
BUS 499 – Business Administration Capstone
Winter 2019
Nike Inc. Business Strategies
The success of any business is influenced by planning, preparation, and execution. The success of a business starts with defining the business’s strategy at the corporate and business level. The corporate level strategy is the planning pyramid of a business which defines the main purpose of the business. The target destination influences all the strategies and decisions of the business. Business level strategies detail the actions taken to offer value to customers and gain competitive advantage through exploiting core competencies in specific product or service markets. The business level strategy is influenced by the firm’s position relative to its competitors as well as the five forces of competition. In any business organization, consumers are the foundation of its business level strategy. Nike Inc. has been continuously focusing on innovation to develop and grow its business. The paper presents Nike’s business level strategies and corporate level strategies that will help the company to gain competitive advantages in the long-term. The paper will also examine Nike’s competitive environment to determine the most significant competitors in the industry.
Business-Level Strategies
At a business-level, Nike utilizes a combination of two strategies to ensure the offered customer unique products and gain a competitive advantage in the market. Nike Inc. uses a combination of product differentiation and cost leadership to win a greater share in the market. The company differentiates its products from other competitors through product innovation, high-quality products, and technology development. Differentiation at Nike Inc. enables the company to build its brand image in the global market. In product differentiation, for example, Nike integrates its cutting-edge design for its shoes. Nike Inc. has utilized innovation and technology to offer customers high-value products (Mahdi et al., 2015). For example, customers can design their products in Nike’s website and get it within the shortest time possible. The company has also utilized research and development initiative to ensure continuous innovation and product development to maintain its competitive advantage in the market.
Nike does not utilize overall cost leadership as compared to some of its competitors and new entrants in the industry. Their products are higher end prices which customers are willing to pay because of their unique quality and value in the product. Nike ID and other personalized procedures including college and sports sponsorships help the company to enhance customer’s perceptio.
1. Group Case Analysis
Nike+ FuelBand
MKTG 6231F
Entertainment Marketing
Schulich School of Business
Rita Hao
Valeria Lamberti
Patrick Stoesser
2. Industry Overview
“Bracelets” that monitor fitness activity
– Track movement and sync results with mobile
applications
Relatively new industry product invented in early
2000‟s
$400MM market annually (2016)
Dominated by 3 players (97% of market)
– Nike
– FitBit
– Jawbone
1
3. Private start-up founded in 2009
Wide variety of products
Focus on „health‟, „fitness‟, and „individualism‟
2
4. Entered market in 2006 with Nike FuelBand+ IPod
Product
Heavily marketed and advertised
Focus on „sporty‟, and „the Nike community‟
3
5. Nike vs. FitBit
Nike
FitBit
Entered
Market
2006
2009
Average Cost
$149
$130
Measurements
Time, Distance, Calories,
Steps, Daily Progress, “Nike
Fuel”
Time, Distance, Calories,
Steps, Elevation
Technology
Bluetooth connectivity, 3Bluetooth connectivity, 3-axis
axis accelerometer , ambient accelerometer, vibration motor,
10%
68%
light sensor, li-on polymer
li-on polymer battery
battery
FitBit is a start up with a fraction of the marketing budget of Nike,
yet they are dominating the market
Market Share
Why is this and how can Nike position
themselves to increase their market share?
4
7. Ideological Field of the healthy consu
The Healthy Consumer
Contradiction
The Healthy Consumer
The Natural Athlete
The Health Conscious Consumer
Contradictions
Smart, “the every man”, responsible
Strong, masculine, fun
Negations
Implicatives
Implicatives
Unrealistic, intimidating, naive
Gap between reality and ideal
(as experienced in everyday situations)
Too much work, boring, not fun
Time
Identity Confirmation
(discourse, practices, performances)
The Pursuit of Healthy Living (through Brands)
6
8. The Problem
Nike is trying to win over “The Healthy Consumer”
Marketing message focuses on “The Natural Athlete”
–
–
Contradicts message with “The Health Conscious Consumer”
Strong and sporty vs. responsible choices, everyday battles
Appealing to “The Work Machine”
–
Technology leads to productivity, success, efficiency
FitBit appeals to every other segment
–
Expressive, ease of use, empowerment, community building,
those intimidated by technology
Given this, how does Nike position FuelBand to gain market
share?
7
9. Key Success Factors
A. Strong Brand Recognition
– Premium brand
– High quality products
– The “cool” factor/brand personality
“Nike-as-a-person is exciting, provocative, spirited,
cool, innovative, aggressive, and into health and
fitness”
8
10. Key Success Factors
B. Style and features
–
–
–
–
–
–
Different colors and design
Comfort
Silent alarm, water proof, sleep monitoring
Cross-platform wireless syncing (android device)
Social connectivity (NikeFuel community)
“One size doesn‟t fit all” - Fitbit
9
11. Key Success Factors
C. Financial sustainability
– Nike was the first one into the market
• Experience and technology
– Ability to develop new products in house with minimal
risk
– Strong history of alliances
• Apple partnership
– Selective in M&A
– Extremely high marketing budget
10
12. Ansoff’s Four Strategies
Present Product
Nike+ Fuel band
Nike+ Fuel band SE
Present Market
New Product
Market Penetration
Product
Development
Market Development
Diversification
Athletes, active people
New Market
Everyday Joe who
wants to be more
active and healthy
11
13. Alternative Solutions
1. Status Quo
Pros:
– Less risky
– Serving the same niche market
Cons:
– Losing market share (10% Nike vs. 68% Fitbit)
– More players coming into the market (LG, Sony, Garmin)
– Premium price with less functionality
– The “fuel points” system is confusing
12
14. Alternative Solutions
2. Acquire FitBit
Pros:
– Big corporation vs. start-up
– Access to FitBit‟s activity tracking logarithms (trade secrets)
– Instantaneous results
Cons:
– Financial risk
– Cannibalize sales
13
15. Alternative Solutions
3. Market development
Pros:
– Develop a new sub brand with a focus on developing a new
market
– Improve software compatibility with different operating systems
– Different pricing tiers
– New marketing campaign focusing on “healthy people” instead of
“athletes”
– Leveraging Nike brand
Cons
– Time demanding
– Customer perception
14
16. Evaluating Alternatives
Key Success Factors in the Activity Tracking
Industry
Nike‟s Strength
Strong Brand
Name
Style/features
Financial
sustainability
Status Quo
Acquisition
Market
Developmen
t
✔
✔
✔
✔
✔
✔
15
18. How?
Just do it
Sport
Sport = Health
Just do it = Health
Keeping healthy
through sport
activities
Keeping healthy
through everyday
simple and small efforts
Nike+ Health sub brand is all about
healthy everyday living
17
19. Let’s Take the Field!
New
product
features
New
spokesperso
ns
Online
strategy
Nike+
=
Health
Review
Nike+ ads
Strategic
sponsorship
s
18
20. Make Health Count!
ACTUAL COMMERCIAL
40%-50% of images related to
sports
only few about everyday healthy
living
Review
Nike+ ads
NEW COMMERCIAL
70% of images related to
everyday healthy activities
Sport is not the only thing that
counts!
19
21. You Know It, It Counts
Strategic
sponsorship
s
Contact companies which stimulate their employees to
practice more healthy activities
Sponsor healthy programs organized by high schools and
universities
Sponsor city marathons
20
22. Web Counts Too
Online
strategy
Improve the Nike+ FuelBand community:
– possibility to share your “health results” with your friends
– users and company generated suggestions on how to keep you
healthy
Facebook and Twitter pages totally dedicated to the new
Nike+ and the health topic
YouTube channel integrated with the new commercial and
spokespersons‟ videos with healthy suggestions
“The Healthiest Nike person” contest
21
24. Money (unfortunately) counts
Activities
Cost
New spot realization
5.000$
New spot broadcasting
400.000$
Sponsorships
2.000.000$
Social Media
200.000$
Contest
10.000$
Spokespersons
1.500.000$
TOTAL
4.115.000$
Cheaper than an
acquisition!
23