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Nike Team Project (Bus Comm Course, 2013)

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Representing the Nike Marketing Team, we received an offer from Port Authority for exclusive naming rights on a LaGuardia Airport terminal. Our task was to analyze the offer's potential benefits vs. risks, decide if it is profitable to pursue, and present our findings to Nike's Executive Board (our class). We conducted primary (in-depth interviews) and secondary research about offer, and presented findings and recommendations using PowerPoint, a short video, estimated ROI, and quotes from interviewees

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  • 1.Nike Terminal April 30, 2013

2. Agenda Introduction to the New York Marketing/Advertising Team Purpose Opportunity Objective/Goals Benefits of airport ads Cost to Nike Potential Revenue generated Ad agency Displays Closing statements 3. Nikes Marketing Team: Who we are Jamel D. Nelson President of Marketing Research Eyal Shahar Vice President of Marketing Joicy Acauro Marketing & Product Research Shaniann Flores Lead Financial Officer Emily Soniperasud PR & Events Coordinator 4. Nike Terminal 5. Dream Big 6. PURPOSE OF MEETING 7. Opportunity New York/New Jersey Port Authority has decided to lease one of their terminals for the first time ever. Offer includes Five year lease Option to have Terminal B called Nike Terminal We will have access to: Four concourses 2 three-story wings 1 four-story central station 12 or more large displays 750,000 square ft. of floor space 8. LAGUARDIA AIRPORT BACKGROUND 9. Airport Overview Four Terminals 19 Airlines 24 Million passengers (2011) Services Delta, US Airways & United, American Airlines * Service companies like Delta (1.4 Billion in renovations), US Airways and United, American Airlines 10. 10 11. 11 12. 12 13. 13 14. 14 15. LGA Traveler Profile 43% - Business Passengers $119,000 - Average household income $637,000 - Average Market Value of Owned Home 16. 16 17. PROJECT PLAN 18. Thorough Industry Research Identify Growth opportunities Utilized Industrys publications and websites Performed In-Depth Interviews Completed Consumer survey Contacted Ad Agencies Evaluated consumer feedback Assessed financial impact Identified vision and future opportunities 19. Benefits of Airport Advertisements 20. Airport Considered a cosmopolitan environment Gateway to the planet Consumer Expects to dream in airports Enjoys browsing airport advertisements Brand Image of modernity and innovation Foster feelings of prestige Perceptions In The Airport 21. Nike doesnt advertise very much Consumers are actually eager for more Nike advertising Low knowledge of new Nike products Airport offers opportunity to educate consumers on Nike Lack of excitement for Nike products Airport can showcase latest Nike innovations Consumer Feelings 22. POTENTIAL REVENUE 23. 28 Potential Growth Opportunity 2012 2013 2014 2015 2016 2017 $24.10 $31.00 $40.00 $52.00 $67.00 $87.00 Chart figures show in billions $ Airport passengers are three times more likely to spend on items costing $500 or more 24. Super Bowl 2014 Expected to generate $500 - $600 for local economy More than 100,000 football fans are expected to travel to New York/New Jersey Nike generated 23.4 billion 25. COST Port Authority $5 million per year $600,000 per year on advertisement $180, 000 per year agency fees JCDecaux - International media and communications company founded in 1964. Number one outdoor advertising specialist in the world, as well as the market leader in Europe and in Asia Pacific Blue Line Media - Advertising company that offers advertising media in 300 cities across the United States 26. VISION OF AIRPORT DISPLAYS 27. Nike Terminal Displays Airport Banners Backlit Diorama (Gate/Terminal, Baggage Claim) Posters LED Flat Screen TV for Nike Life-Size boards of celebrities Nike logo on each Nike Terminal E- ticket 28. Serena Williams Maria Sharapova 29. Nikes Recommended Products Nikes Fuel Bands Super bowl Jerseys In season products Introduce new celebrity products 30. FUTURE OPPORTUNITIES 31. Retail space Partnerships with other airports across United States Future Possibilities 32. CLOSING STATEMENTS 33. Now, Lets review: Once in a life time opportunity Access to massive advertisement Positive consumer response Company growth 34. I think Nike should have one, they beyond deserve it. Also it will bring much needed jobs to NYC. It would be something unique; I would feel that Nike wants to promote their products in a different way than others. If its done in a way that creates a "WOW" moment in my mind, then I will become very excited as a consumer. Makes sense since people want to travel comfortably Consumer thoughts