Chanell SchamberJacque CombsSarah Lewis

The CompanyNike is the world’s renowned and leading supplier of athletic

shoes and apparel. It controls more than 47% of

athletic shoe market with sale of U.S. $23.42 billion. Founded in 1962 by Bill Bower became Nike in 1978.

Supplying its high quality products in more than 100 countries with its major target area including United States, Europe, Asia Pacific, and the Americas. Nike has attained this legendary position through innovative and attractive design, quality production and wise marketing

strategies and their marketing budget is $113 million.

Mission StatementTo bring inspiration and innovation to every athlete* in the world.*"If you have a body, you are an athlete."

The Market PlaceSector: Consumer Goods

Industry: Textile-Apparel Footwear & Accessories

Strengths & Weaknesses• A very competitive organization• It is famous for its development

and research which is depicted in their wide range of new products with new designs.

• Its swoosh logo make it recognizable all over the world.

• It promises to provide the high quality products at reasonable prices.

• Its products are globally available in all leading marketing places of World.

• Less diversity in the sport products.

• The company does not have its own retailers therefore retailers are price sensitive.

• All sizes are not present in every design of shoes.

The Competition

Sales and share-of-market (SOM)• Nike is the industry leader with a

47% share of the market with $$23.42 billion in revenue.

• Reebok: 2nd leading manufacturer with a 16% market share and has $1.28 billion in revenue.

• Adidas: The fastest growing brand domestically has 6% market share and $500 million in revenue.

• Converse: 3% market share and $280 million in revenue.

• New Balance: 3% market share and $260 million in revenue.

Sales & Share-of-MarketPromotion spending and share-of-voice (SOV)Nike controls the Share of Voice with 57% • Compared with:

• Adidas 22%• Converse 15%• New Balance 4%• Under Armour at

2%

Promotion spending/SOV

The company has used social media, commercials, official websites of Nike and newspapers, to promote their brand.

Many well known athletes have endorsed the brand.

They sponsor events, and many sports team around the world.

The Brands swoosh logo has played an important role in its advertising.

Anyone with a body[focusing on women]

The Customer

• Focusing on Women• Ages

– 18-24– 25-34– 35-49– 50-54

• Psychographics• Young• Playful• Active• Health Conscious • Ambitious• Social• Positive

Demographics & Psychographics

Marketing Segmentation

Right now there focus is Women.

The ads drew considerable attention – and praise- because they advocated the benefits for girls and young women of participating in sports.

Current Marketing Purpose

The initiative is an example of what is called cause marketing or purpose marketing. The term refers to campaigns that assist what companies deem pro-social causes to improve the world — and, not incidentally, improve how current and prospective customers perceive them.

MarketingObjectives & Strategies • Maintain market share

(keeping it at 47%)

• Continue and constant growth of social media usage.

• Expansion of the “Everybody is an Athlete” mentality and the “Girl Effect” campaign.

• Continuing to promote Nike through multiple mediums and purchases more media outlets.

• Expand the website and more usage of Twitter and responding to all online conversations.

• Implement more commercials and advertisements with non- professional athletes.

2,460,000Ongoing discussions (Forums, Blogs, Discussion Boards, etc.)

CommunicationTarget Audience: • Women

Product Positioning and Personality: • Making everyone an athlete.

Contact Points: • Television, Magazines and Social Media.

Customer Benefits: • Buy this shoe and you will be an athlete.

Value-Added Mission: • Making the brand an everyday item through style

and function.

Mar

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• Television

• Bravo• E• Comedy Central• ABC/Family• CBS• NBC

FOX• Magazines

• Seventeen• In Shape• GQ• Vogue• In Style• Women’s Health• People • US Weekly• Nylon

Events• Have more Running Events

• Having a Charity Component

• Women and Girls Run/Walk

• Breast Cancer Walk • Mall Events

• Having celebrity endorsers sign shoes. • Mall• Macy’s• Nordstroms

Action PlansPersonal SellingAdvertisingSales PromotionDirect MarketingPublic RelationsCorporate IdentitySponsorshipsProduct PlacementMerchandising/Packaging

Budget$113,000,000

40%TV and print advertising in the U.S. has dropped in the past 3 years.

Personal Selling ……………………$7milAdvertising………………………… $22milEndorsements………………………$20milSales Promotion……………………$10milDirect Marketing……………………$6milPublic Relations/Corporate Identity/Sponsorships…………………………$15milProduct Placement…………………$16.7milMerchandising/Packaging…………$5milContingency…………………………$11.3milTotal Cost: $113,000,000

Line Item Budget

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