& IMC

FoundersPhil Knight Bill Bowerman

FoundedJanuary 25, 1964

Market CapitalizationUS$68B

Key Market US

Notable Campaigns“Make It Count” “Find Your Greatness”

Brand Endorsers LeBron James Maria Sharapova Cristiano Ronaldo

*If you have a body, you are an athlete.

Mission“To bring inspiration and innovation to every athlete* in

the world.”

Targ

et Co

nsum

ers

Strengths• Robust market position • Strong brand equity • Strong product innovation • Extensive distribution network • Strong marketing communication

Opportunities • Move into wearable technology

Threats • Endorsement Scandals • Pressure for better corporate citizenship

Weaknesses • Older and younger consumers perceive brand differently

NIKE’S MARKETING REVOLUTION

From product innovation to customer centric ecosystems

From hero-selling to storytelling

From traditional to digital marketing

How IMC works Nike.at

Stage 1: Tactical Coordination

Stage 2: Redefining scope of marketing communication

Stage 3: Application of IT

Stage 4: Financial & Strategic IntegrationUse of data to drive strategic planning such as product offerings

Between campaigns: No campaign is at odds with another

Brand level: Brand elements are consistent

Campaign level: Integration across all brand contact points

Collection of behavioral data and customer preference data

Code of Conduct for all business partnersMatrix organizational structure

#8Guiding Principle Y/N Justification

#1 Become a customer-centric organization ✓ Customization of shoes in NikeiD store

#2 Use outside-in planning ✓ Consumer data drives corporate strategy e.g. Nike+

#3 Focus on the Total Customer Experience ✓ Integration is achieved across all brand contact points and stakeholders in the value chain

#4 Align consumer goals with corporate objectives ✓ Focus on digital to pursue younger consumers

#5 Set customer behavior objectives ✓ Target segments and goals are established for each campaign

#6 Treat customers as assets ✓ US$2.7B marketing budget; 15� of revenues spent on endorsements

#7 Streamline the functional activities ✘ Divided into Sports Marketing, Events Marketing, Branding etc.

#8 Converge marcom activities ✘ Digital marketing department is separated from traditional marketing

*Tie compensation to IMC goals ✘ No evidence

%

Guiding Principle Y/N Justification#1 Become a customer-centric organization ✓ Customization of shoes in NikeiD store

#2 Use outside-in planning ✓ Consumer data drives corporate strategy e.g. Nike+

#3 Focus on the Total Customer Experience ✓ Integration is achieved across all brand contact points and stakeholders in the value chain

#4 Align consumer goals with corporate objectives ✓ Focus on digital to pursue younger consumers

#5 Set customer behavior objectives ✓ Target segments and goals are established for each campaign

#6 Treat customers as assets ✓ US$2.7B marketing budget; 15� of revenues spent on endorsements

#7 Streamline the functional activities ✘ Divided into Sports Marketing, Events Marketing, Branding etc.

#8 Converge marcom activities ✘ Digital marketing department is separated from traditional marketing

*Tie compensation to IMC goals ✘ No evidence

#8Guiding Principle Y/N Justification

#1 Become a customer-centric organization ✓ Customization of shoes in NikeiD store

#2 Use outside-in planning ✓ Consumer data drives corporate strategy e.g. Nike+

#3 Focus on the Total Customer Experience ✓ Integration is achieved across all brand contact points and stakeholders in the value chain

#4 Align consumer goals with corporate objectives ✓ Focus on digital to pursue younger consumers

#5 Set customer behavior objectives ✓ Target segments and goals are established for each campaign

#6 Treat customers as assets ✓ US$2.7B marketing budget; 15� of revenues spent on endorsements

#7 Streamline the functional activities ✘ Divided into Sports Marketing, Events Marketing, Branding etc.

#8 Converge marcom activities ✘ Digital marketing department is separated from traditional marketing

*Tie compensation to IMC goals ✘ No evidence

The

Experience

Social Media

Point-of-Sale

Mobile

Events

WebMedia Relations

Out-of-Home Advertising

Endorsements

Print & TV Advertising

CSR

Employee CommunicationsCompensation/Incentive Policies

Corporate Culture

Word-of-Mouth

Products

Supply Chain Management

#JustDoIt

#MakeItCount#FindGreatness

+

COMMERCIAL (ONLINE & TV)

MARKETING ACTIVATION: SOCIAL MEDIA & EVENT

PRODUCTS

ADVERTISING & POINT-OF-SALE

COMMERCIAL (ONLINE & TV)

MARKETING ACTIVATION: SOCIAL MEDIA & EVENT

PRODUCTS

ADVERTISING & POINT-OF-SALE

CAMPAIGN HIGHLIGHTS

Most shared campaign on the

planet in 2010

Twice as much brand buzz as official

sponsor Adidas at the World Cup

Global sales growth of 7% following the

campaign

+

#JustDoIt

#MakeItCount#FindGreatness

+

COMMERCIAL (ONLINE & TV)

MARKETING ACTIVATION: SOCIAL MEDIA

PRODUCT

#JustDoIt

#MakeItCount#FindGreatness

+

#JustDoIt

#MakeItCount#FindGreatness

+

COMMERCIAL (ONLINE & TV)

#JustDoIt

#MakeItCount#FindGreatness

+

PRODUCT

MARKETING ACTIVATION: SOCIAL MEDIA #JustDoIt

#MakeItCount#FindGreatness

+

MARKETING ACTIVATION: SOCIAL MEDIA #JustDoIt

#MakeItCount#FindGreatness

+

CAMPAIGN HIGHLIGHTS

#JustDoIt

#MakeItCount#FindGreatness

+

@nike (2.2M ) VS

@adidas (470K)

18% profit (2012) driven by the sales of

FuelBand

Nike+ digital ecosystem: From

8.5M to 18M users in a year

COMPETITION

IMC• Advanced stage • Digital & social media savvy • Nike+ & FuelBand

IMC• Advanced stage • “All In” Campaign • MiCoach

IMC• Early stage • “Nature of Performance”

Campaign

How IMC works Nike.for

Components of Brand Equity

Presence Identity/Image

Perceived Quality Commitment

Competitors

Constituencies

Financial Value

Presence BREADTH“one sight, one sound”

DEPTHDialogue = knowledge

IDENTITYSecrecy

IMAGECustomers as Co-Creators

Identity/Image

IDENTITYSecrecy

IMAGECustomers as Co-Creators

Identity/Image

INTERNALTalent Retention

EXTERNALPrice Inelasticity Commitment

Perceived Quality

ALIGNMENT

CLOSED LOOP

Promise VS Expectations

Using Customer Data

Components of Brand Equity

Presence Identity/Image

Perceived Quality Commitment

Financial Value

Competitors

Constituencies

Meaningful Brands Study

Financial Value

Brand Asset Valuator

Attitudinal

PRESCRIPTIVE EVALUATIVE

EquiTrend

The Conversion ModelBrandDynamics

The Effectiveness of IMC1. Define time frame

2. Pre-IMC Measurement 3. Post-IMC Measurement

4. Compare

Meaningful Brands Study

Financial Value

Would your customers care if your brand disappeared tomorrow?

Meaningful Brands Study

Financial Value

Connect human well-being with brands

Meaningful brands beat stock market by 120%

Nike ranks 7th on the list

InterBrand

Financial Value

Financial

BUSINESS BRAND

BrandFinanceAnnual Report

The Effectiveness of IMC

Fortune 500

1. Monitor brand listings 2. Develop internal KPI 3. Track brand equity

Attitudinal Financial

�40

Moving Forward

JUST DO I{MC}.

Financial Integration

Linking Compensation

Evaluation Loop

Customer Brand Valuation

Streamlining Functions

We have challenges, but challenges have always made

us better and stronger.-Mark Parker

Q&A