Nike Strategic
Marketing Plan
Nike Brand Foundation
The Nike Vision
• Bring inspiration and innovation to every
athlete* in the world.
• Maximize profits to share holders through
products and services that enrich peoples lives.
• To lead in corporate citizenship through
proactive programs that reflect caring for the world
family of Nike, our teammates, our consumers,
and those who provide services to Nike.
* If you have a body, you are an athlete.
Nike Brand Foundation
What We Do
• The symbol of sports and fitness.
Market sports and fitness products
under four brands names:
Nike®, Cole Haan®, Converse ®,
and Bauer®
Shoes- $44.00-$150.00+
Apparel- $20.00-$100.00+
Equipment- $20.00-$300.00+
Nike Brand Foundation
Where We Want To Be
• Brand Positioning: #1 in the Four
major regions are: US, Europe, Asia,
Pacific, and Americas
• Increase Market share in China
• Sustain within current segments
•Continue focus on the young teen
male around the world
•Increase share of $14.5 billion
women's market for footwear and
sports apparel
Nike Brand Foundation
Major Stakeholders
• Nike Stockholders
• 23,000 Nike Employees
• Nike contact manufacturers
• Organizations relying on Nike
sponsorship
• Loyal consumers
Nike Brand Foundation
Stakeholder Analysis
Athletic and apparel Footwear segmentation differs
because it is more of a lifestyle trend.
Which consumers exhibit a need for Nike’s
products? Are we reaching all potential customers?
Targets:
Athletes of all ages, especially 8-40
Segmented by lifestyle and sport
Primary markets are:
Experiencers, Makers, Strivers, and Believers
Nike Brand Foundation
Stakeholder Analysis
Experiencers
• Young and impulsive
• Spend good deal of time on sports and
exercise
• Nike targets them by marketing to the
athlete.
• “Just Do It”
Nike Brand Foundation
Stakeholder Analysis
Makers
• A lot like Experiencers with less resources
• Practical constructive people that enjoy
physical recreation
• Interested in the quality and functional
purpose of Nike products
• Relate to this segment through the
commercials that depict people trying their
hardest to reach goals
Nike Brand Foundation
Stakeholder Analysis
Strivers
• Trendy, fun loving and motivated by
achievement
• Concerned about the approval of others
• Nike grabs this segment through
endorsing their products with professional
athletes
• Placement and Name
Nike Brand Foundation
Stakeholder Analysis
Believers
• Motivated by Ideals
• Predictable purchasers
• Tend to only consume products
that are familiar and established
• Attracted to Nike’s proven quality,
familiarity, and established name
Nike Brand Foundation
SWOT - Strengths
•Brand name recognition, because Nike
has been around so long, the brand is
recognized and respected both
internationally and domestically.
•Brand loyalty, Nike has consistently
produced quality products that appeal to
its consumers both internationally and
domestically.
•Nike carries a wide arrangement of
products with a large amount of options
for personal preference.
•Strong international presence
More>
Nike Brand Foundation
SWOT - Strengths
• Number one footwear manufacturer
in nine international countries; with
distribution centers both
internationally and domestically.
• Ad agency with offices in three
different countries in order to reach
their target audience on a local level.
• Good financial standing, in the year
ending May 31, 2005 their revenue
was $12.253 Billion
• Large advertising budget.
More>
Nike Brand Foundation
SWOT - Strengths
• Nike has an on-line store where custom
shoes may be purchased; they believe it
is essential to run an on-line operation.
• Invests a large portion of their income
into R&D
• Donated over $34 million in cash and
products to different charitable
organizations.
• Developed a labor practices
department, which pays close attention
to the labor practice of third –world
countries
More>
Nike Brand Foundation
SWOT - Strengths
•Introduction of the Nike Environmental
Action Team (NEAT) in 1993
Nike Brand Foundation
SWOT - Weaknesses
• Competition is stiff making it difficult to get a
larger piece of the market share.
• Decline in U.S. profits, a steady decrease of 2
to 3 percent every year.
• Contract manufacturing of shoes to low-wage
factories in the Far East makes Nike susceptible
to laws, natural disasters, and economic
problems abroad.
Nike Brand Foundation
SWOT - Opportunities
• The athletic footwear and apparel industries to
benefit from the currently strong economic backdrop in
the United States.
• Spending is high and is expected to result in sales
growth industry-wide.
Athletic shoes and apparel has become a staple in
wardrobes worldwide.
• Increasing numbers of people exercising and the
trend towards casual apparel.
Competition fierce at all levels within the industry,
especially among the leaders.
• Security for the companies that have been able to
create a niche.
Nike Brand Foundation
SWOT - Opportunities
• Restructuring of operations will give many companies
the chance to price products more competitively.
• One area in the industry that is ever changing is
research and development departments can capitalize
on the trends of tomorrow
• Increasing financial recovery in overseas markets
offers area of expansion for the athletic footwear and
apparel industry.
• E-tailing, or customer-designed Internet merchandise
is eliminating the "middle-man" distributors and
allowing for increasing profitability.
Nike Brand Foundation
SWOT - Threats
• The industry has reached a level of
maturity.
• Style and technology in athletic apparel
and footwear has reached a leveling-off
point - must differentiate their lines.
• Inflation is looming over the U.S.
economy, which may spark a cutback in
consumer spending.
Nike Brand Foundation
Nike’s Current Situation
• Continues #1 status in market world wide
• Supply chain improvements have reduced lead
times and freight costs
• Revenue of $12.253 billion 8.7 % increase from FYE
5/31/2004
• Swoosh one of most recognized brands in world
• Continues strong customer loyalty
• Addition of LeBron James to family of celebrity
endorsers paying dividends
Nike Strategic
Marketing Plan
The Details
Nike Brand Foundation
Marketing Objectives
• Have strong representation at global major
sporting events
• Advertising at World Cup Soccer, The Super Bowl, MLB
All Star Game, Masters, US Open, Wimbledon and NHL,
NFL, MLB, NBA Playoffs.
• Maintain Brand associations with major sports
stars
• Maximize associations with Stars, Michael Jordan,
LeBron James, Lance Armstrong, and others
• Effective use of Corporate Event Sponsorships
ie., Nike Tour Golf
More>
Nike Brand Foundation
Marketing Objectives
• Develop a website solely dedicated to the Nike
brand
Nike has multple websites all integrated by Nike.com
•Use Nike brand loyalty to increase sales.
• Create a product image that differentiates from the
competition
Swoosh become way of life.
• Increase product awareness through using an
integrated marketing approach
30 second TV spots
Full page magazine advertising
Varying sized billboards
Nike Brand Foundation
Marketing Strategies and Tactics
• Ambush Marketing
Prominently displaying Nike Swoosh at Reebok sponsored
events
Tiger Woods wears Nike Products while pitching other
companies
•Guerrilla marketing
Pays athletes to use their products.
•Mass marketing
Nike products or subsidiaries are sold at mass
merchandisers such as WalMart, Kohl’s, and Macy’s
More>
Nike Brand Foundation
Marketing Strategies and Tactics
•Urban Tactics
Free sneakers are delivered to inner cities , creating a
demand for more.
•Psychological Tactics
“Just Do It”
•Outsize Tactic
Use of extremely large advertising budget
Large supply chain
Multiple retail outlets
Nike Brand Foundation
Media Plan – Print - newspaper
Total Spending
Wall Street Journal 4 * 5000 4 * 5000 4 * 5000 4 * 5000
USA Today 5 * 3000 5 * 3000 5 * 3000 5 * 3000
New York Times 1 * 2000 1 * 2000 1 * 2000 1 * 2000
NY Daily News 1 * 1850 1 * 1850 1 * 1850 1 * 1850
Chicago Tribune 1 * 2000 1 * 2000 1 * 2000 1 * 2000
NY Post 1 * 1850 1 * 1850 1 * 1850 1 * 1850
LA Times 1 * 2000 1 * 2000 1 * 2000 1 * 2000
The Washington Post 1 * 2000 1 * 2000 1 * 2000 1 * 2000
The Washington Post 1 * 2000 1 * 2000 1 * 2000 Newspaper subtotal
Nike Brand Foundation
Media Plan – Print - magazine
Print - Magazines Monthly
Print - Magazines Sports Illustrated 4 * 5000
Print - Magazines ESPN the magazine 15000
Print - Magazines Women’s Day 12000
Print - Magazines Fitness 2000
Print - Magazines Men's Health 12500
Print - Magazines Golf Digest 17000
Print - Magazines Golf Digest Magazine subtotal
Print - Magazines Golf Digest Print Subtotals
Nike Brand Foundation
Media Plan – TV
Television Monthly Totals
Television ABC 2000000
Television NBC 2000000
Television Fox 1500000
Television CBS 2000000
Television Fox Sports 150000
Television ESPN 1500000
Television Golf Channel 175000
Television NFL Network 175000
Television USA 175000
Television TNT 125000
Television FX 95000
Television FX TV subtotal
Nike Brand Foundation
Media Plan – Digital Media
Online/Digital Monthly Totals
Online/Digital Nike.com & related 250000
Online/Digital Banner Ads 125000
Online/Digital Banner Ads
Online/Digital Banner Ads Online subtotal
Online/Digital Banner Ads Media Total
Nike Brand Foundation
Media Plan – Teams, sponsorships
Athletic/Team Endorsements & Sponsorships Yearly/12
Athletic/Team Endorsements & Sponsorships Athletes 1900000
Athletic/Team Endorsements & Sponsorships NFL 1500000
Athletic/Team Endorsements & Sponsorships NBA 1400000
Athletic/Team Endorsements & Sponsorships MLB 1300000
Athletic/Team Endorsements & Sponsorships NHL 145000
Athletic/Team Endorsements & Sponsorships Soccer Mens/Womens 145000
Athletic/Team Endorsements & Sponsorships Team USA 245000
Athletic/Team Endorsements & Sponsorships Team USA Athlete Total
Nike Brand Foundation
Media Budget
•Print: Newspaper $906,800
Magazine $ 78,500
Total $985,300
•Digital Media
Television $9,895,000
Web $375,000
Total $10,270,000
•Sponsorship $6,880,000
Total Advertising: $18,135,300
“If you have a body, you are an athlete.
And as long as there are athletes, there will be
Nike. “