- Nike aims to launch a new mobile app called Nike Xtreme to counter competitors and expand its consumer base.
- The free app would provide personalized training plans, access to experts, competitions and social sharing to motivate fitness.
- A premium version may offer extra services and integrate with Nike's digital wallet for discounts.
- Success requires strategic marketing, technical excellence, collaborations and legal compliance to protect Nike's brand.
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Slides made by ANKAN MUKHERJEE, IIT-ROORKEE, under the guidance and supervision during the Internship of Marketing Management by Prof. SAMEER MATHUR of IIM-Lucknow from 13 June- 10 July, 2016.........
Health and fitness have been the main priority of everybody from the beginning. Every person wants to stay fit and healthy in their lives. It is a fact that a healthy person lives more than an unhealthy one. Even in the transforming technology, the need of being fit doesn't change. Now-a-days there are many applications, designed for mobile devices to keep a person fit. They help users to maintain their physical, mental workout, and many other activities. The market is crammed with many health apps that make the workout schedules so easy for every individual. They are the best alternate for gyms and give maximum results.
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Slides made by ANKAN MUKHERJEE, IIT-ROORKEE, under the guidance and supervision during the Internship of Marketing Management by Prof. SAMEER MATHUR of IIM-Lucknow from 13 June- 10 July, 2016.........
Health and fitness have been the main priority of everybody from the beginning. Every person wants to stay fit and healthy in their lives. It is a fact that a healthy person lives more than an unhealthy one. Even in the transforming technology, the need of being fit doesn't change. Now-a-days there are many applications, designed for mobile devices to keep a person fit. They help users to maintain their physical, mental workout, and many other activities. The market is crammed with many health apps that make the workout schedules so easy for every individual. They are the best alternate for gyms and give maximum results.
This is a web-crendentials presentaiton by Phonethics. Phonethics is a leading digital agency. It is the only India Digital agency shortlisted at Cannes2012
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7. Key points
• Nike has been a market leader for a very long time and an innovator in the industry
• It is vital to maintain the technological trends for its continued success
• Its main competitor “Adidas” has attracted a large number of customers to its fitness app
• Nike needs to counteract the move so as to expand its reach to the existing consumer base
8. How ?
Providing impetus to its online and specially
Mobile marketing through the use of an Android
application – Nike Extreme
9.
10. LARGEST SELLER OF ATHLETIC FOOTWEAR
AND ATHLETIC APPAREL IN THE WORLD.
DESIGN, DEVELOPMENT AND WORLDWIDE
MARKETING OF FOOTWEAR APPAREL,
EQUIPMENT AND ACCESSORY PRODUCTS.
18 000 RETAILS IN THE US
PRODUCT FOR WOMEN, MEN AND CHILDREN
TOP SELLING PRODUCT: RUNNING,
BASKETBALL, CROSS-TRAINING AND
WOMEN’S SHOES
ALSO DESIGN SPORTSWEAR FOR TENNIS,
SOCCER, BASEBALL, FOOTBALL, BICYCLING,
VOLLEYBALL, WRESTLING, CHEERLEADING,
AQUATIC ACTIVITIES, HIKING, …
The Swoosh
19713,
represents of the
wing of the
goddess.
Nike
56 % of its sales abroad
11. Famous sneakers
Nike Air Max Nike Air Force One Nike Air Jordan
Nike Flyknit
Nike Roshe Run
Nike SB Nike + iPod
13. NIKE corporate strategy
FOCUS ON INNOVATION AND EMPHASIS ON
THEIR RESEARCH AND DEVELOPMENT IN ORDER TO BE:
• PROFITABLE IN THE LONG RUN.
• REDUCE OR ELIMINATE ATHLETES INJURY.
• HELP IN ATHLETIC PERFORMANCE AND MAXIMIZE COMFORT.
18. • The world's largest sports apparel brand targets to hit $50 billion in revenue
by 2020. It's a goal CEO Mark Parker called "ambitious.“
• In its most recent fiscal year ended May 31, Nike had $30.6 billion in revenue,
a 10% increase over the previous year.
• Nike stock edged up 0.02% to close at $125.84.
Future Plans
19. • The company plans to hit its goal by focusing aggressively on product
innovation and technology, developing deeper relationships with
consumers through experiences and investing heavily in its women's
business, a major growth category.
• It also expects a massive jump in e-commerce sales, from roughly $1
billion now to $7 billion by 2020, with plans to boost shopping
capabilities on its apps and Nike.com.
• Nike is building a 125,000 square-foot facility on its campus just outside Portland, Ore.,
focused on "advanced manufacturing and design technologies," including 3-D printing
capabilities, which it's already been using to produce some shoes.
22. As of recent developments
Women in their 20s and 30s
are largely driving the
"athleisure trend," in which
customers buy leggings with
the intent of wearing them
to the gym, errands, and
brunch.
TARGET
23. Khattab Al Qrarah Manas Ussenov Victoria Rosca Yousra Zaghdoud Bernichi
24. Customers and Collaborators
• The target customers would be the people ranging from the teenagers upto the age of 60
• The app would be aimed at developing physical fitness among a very large class of people
• The app would lure in the aspirants of a fit life
• App would also target both the amateurs as well professionals at all levels
• Also collaboration with the selected gyms would expand its reach in the market
• Hiring of the reputed nutritionists and the physical trainers from all over world would be
instrumental in mouth to mouth marketing of the app
• Distribution of Nike goods as prizes would ensure an enthusiastic response
• Social media would be uses to create a buzz about the app in the market
25. Competitors and Context
• The prime competitor would be the existing fitness app being provided by the Adidas under the name
“Adidas Train and Run”
• This app currently focuses on drawing people to lead a healthy life through the use of physical training
• Even though this app provides blogs by some of the experts around the world on physical fitness but
does not integrate the users of the app and these experts for a customized interaction
• Also the app records the day’s activities of the user and gives information about his health
• No advertisement of any kind is provided on the app and also Adidas does not have a premium version
of the app
• In any case NikeXtreme would face stiff competetion from its arch-rival in this technological
development
26. The release of this app by Nike would place it in a whole new technological segment
Features :-
• This app would be the first of its kind to provide a platform to its whereby they can directly some of the
most reputed physical trainers of the world to seek relevant suggestions
• Keep your routine fresh and new with access to 100s of free cardio, strength and flexibility training plans
which otherwise are charged heavily
• Through this app we can customers personalized weekly goals to help stay motivated and on track.
• Let your friends know how your training is going by sharing workouts and photos to Facebook, Twitter,
Instagram, other fitness platforms and more.
• Regular competitions would be conducted by Nike itself to award the best performers which would add
to the motivation of the users to perform better
• The users of Nike would be thrilled at being trained by the Nike itself without any expenditure on their
side and this generous move would ensure long term brand loyalty
27. • The app would be a bring about a revolution in the marketing
strategy for Nike
• The current marketing trends would witness a new and innovative
style of spreading brand among the consumers
• The app would not only create a brand equity for Nike but also
consolidate its current position in the market given the increased
competition recently
Technology is the KEY
28. • The entry in this sector would fill the void that had been there even though its other
competitors had already resorted to these methods a long time back
• The method to be used would be quite different form the creepy advertisements
currently used in android app which add to the
frustration of the markets
• The premium version of the app would indeed provide cash
payments from consumers in return of some extra services
• The app would strengthen the image of Nike being an Athletic Brand.
• This app would help the associations between some of the world’s best trainers and
nutritionists
• Also this app would provide its users with something called “Nike Wallet” whereby
they can claim discounts at some selected stores and motivate them to sue this app
29. Collaborators gaining something ?
• The app would bring increased revenues to the
associated gyms
• Also the stores selling Nike products would
witness increased demands of the jogging
shoes and hence appease this channel
• Associated trainers and nutritionists will be
provided revenues by Nike
• Nike can further collaborate with some other
sectors as well depending on the success of
this app
30.
31. Product
• This free training app turns your smart phone into your
personal trainer, providing real-time coaching,
• View your workout history, heart rate curves and route
maps with your training heart rate zone display.
• Listen to your favorite music during runs or strength and
conditioning workouts.
• Let your friends know how your training is going by
sharing workouts and photos to Facebook, Twitter,
Instagram, other fitness platforms and more.
33. Price
• The basic version of the app would be free and available to
download
• The premium version of the app would be priced at 5$ per
month in the South Asian countries
• As India whereas the same would be priced at 10@ per month in
the countries as USA
• Also the person who successfully invites five new people to install
the app would be credited with balance in his Nike Wallet
34. • Incentives to the customers would be getting discounts in
the associated gyms of the app
• They can avail the points in their “Nike wallet” to get
discounts on some products
• The stores would be awarded if they succeed in getting
installed a threshold number of the apps through the
customers visiting their stores
• Best Executives managing this app can be rewrded on
way or the other
• Company employees would be given the premium
version for free
• Lucky ones can get a chance to meet the sportspersons
who endorse Nike
35. Communication and Distribution
• The app would be distributed through the Google
play store also through the official website of Nike
• The app launch will be highly publicized through the
use of posts on social networking sites such as Facebook, Whatsapp
• App would add money into the “Nike wallet” if the concerned person invites 5
others to install the app
• A post would be released announcing that the first 1000 downloaders of
premium version of the app would be given upto 50% off
• Some lucky consumers would be given gifts and a chance to meet the brand
ambassadors of Nike
38. Collaboration
• The managing structure for the 3-tier
• The manager of HR and Public relations must work
closely to find the best collaborators namely the gyms
and the physical trainers
• Proper research and development must be ensured to
make the app highly advanced
• Proper feedback analysis must be conducted so that
the shortcomings may be removed
• The various channel partners must benefit from the launch
of this app
39. Processes
Intensive research
development for app
Extensive
Marketing
Creating
Brand Equity
Proper feed-
back analysis
Distribution
of freebies
Events and
Competitions
Collaborators
and Associates
Special focus
on Nike Wallet
40. Timeline
• App must be launched in the market on the World Health Day, i.e. on April 7
• Launch of the app must be backed by publicity of the App through the media channels such
as television, Nike Stores and posters on social media beginning in January
• Promotional mails to the subscribers of Nike must be sent one week before the launch of the app
• The first 1000 downloaders of the premium version must be conveyed all the information
41.
42. Summary
• The primary focus of Nike Xtreme must be to enhance the physical fitness of its users
• The app must be technically advanced and meet the expectations of the users who always
expect something innovative from the “Nike”
• The collaborators of the app must gain something from this app so that more participation
can be invoked from the market
• The events and competitions organized through this app must be carefully monitored and
the promised awards must be delivered to the winners
• Proper data analysis of the app must reveal the current trends and the same must be responded
to by through the release of appropriate products of Nike
• Legal frameworks must be kept in mind and no misuse of the app should be permitted to tarnish
the brand mage of Nike