Brand Positioning in the Marketplace: Competitive Review • • • • • • • Detailed Analysis of Product Category Analyze the Key Competitive Players Competitive Landscape: Brands/Pricing/Benefits/ Brand Positioning within the competitive arena and product category SWOT Analysis: Strengths, Weaknesses, Opportunities, Threats Consumer Trends: What is the consumer mindset Key competitive new products and new product opportunities New Product Strategy • • Company Objectives New Product Objectives and Strategies • Detailed description of the product • Time Frame for Launch • Product Name • Positioning • Key points of differentiation • Pricing • • New technology/white space opportunity Target Audience Nike “Brand Strategy” Final Exam Group 1 Presentation Brand History and Analysis Overview of Brand Brand Description Brand History Blue Ribbon Sports was founded in 1964 They opened their first retail outlet in 1966 and launched the Nike brand shoe in 1972. The company was renamed Nike, Inc., in 1978 and went public two years later. By 1980 they were buying a lot of different shoe companies, like Cole Haan in 1988 (later sold in 2012), Converse in 2003, Canstar Sports in 1994 (later sold in 2008), Umbro in 2008 (later sold in 2012) They are famous for their great partnership throughout the years with athletes such as Michael Jordan, Mia Hamm, Roger Federer and Tiger Woods. Founder/Key Management Team Nike was founded by Bill Bowerman, a track-and-field coach at the University of Oregon (died in 1999), and his former student Phil Knight. Phil Knight was a certified public accountant and director of Nike 4 years after the company was founded, except for the period from June 1983 to September 1984, until 2004 when he became chairman Emeritus for Nike. Mark Parker joined Nike in 1979 broughting innovative concepts and engeineering expertise into all of his roles in the Nike company such as Vice president of consumer product marketing, vice president of global footwear and co president of the Nike brand, now a days her is the president and CEO of the company. Andy Campion joined Nike in 2007, since 2010 he is Chief Financial Officer, resdponsible for leading all aspects of financial management for the company. Elliot Hill, President of consumer and marketplace, he is responsible for Nike´s 4 geographic operating regions and he is also in charge of the Sales, Marketing and direct organization teams in Nike. There are more people in the management team such as Hilary Krane (EVP, Chief Administrative Officer And General Counsel), Monique Matherson (EVP, Global Human Resources), John Slusher (EVP, Global Sports Marketing), Michael Spillane (President of Categories and Product), and Eric Spunk (Chief Operating Officer) Heritage of the Brand https://news.nike.com/heritage “We’re the largest footwear brand at $21 billion. We’re the largest athletic apparel brand at $9.6 billion. And in footwear, we hold the #1 market share in all markets and all major categories. It means we can amplify our brand message into a global conversation.” Target Consumer Audience(s) The company focus on athetes, and by athles it is not just people that enjoy doing exercice but the people that enjoy watching it, talk about it or do it but in small quantities. Nike is for 15-40 year old, but they are focung on the young adult to create long term awareness and loyalty, also they are focusing on men and women equally eventhough women sales are only 20% of the total sales but they are trying to expand this number. And finally eventhough they say they dont have an income focuse, based on their prices they are focusing on medium to high household income Distribution Nike’s largest markets are North America followed by Western Europe and China. In these geographies Nike’s marketing efforts are largely focused on urban areas with high market densities. Direct Channel Nike is focusing right now on their direct retail platform, both online and offline, which has been growing double digit in 2018 Nike Customer Experience (NCX) platform has grown 100% in 2018 and the NikePlus App has more than 100 million customers and they are planning one triple that number in 2023 Nike has 7,000 branded stores operating right now, offering superior customer experience, quality service and powerful storytelling Indirect channel Like the rest of the brands, Nike is looking to emphasize on the direct to consumer channel but their indirect channels, such as wholesale distribution still accounts for 70% of the total sales in 2018 (this number has decreased since 2017 were the share was 82%), Nike has a massive number of distribution partners, 30,000 retailers, but one of their new strategies is to only have 40 retail partners, that will give the customer the best experience possible. Some of these 40 retailers are Foot Locker, Nordstrom, Dick´s Sporting goods, and on the digital part Amazon, Asos, Jet.com etc. Pricing Nike has such a great positioning that they were able to have a Value Pricing strategy, in which their prices uncover the right blend of design and value that satisfy their clients and at the same time they could charge higher prices for their products. In the future they are planning on continuing with this price hiking strategy, because the footwear industry prices are increasing on an average of 5% worldwide, so Niek and the rest of the industry are taking advantage of this trend and increasing their prices with products with more technology, innovation and most importantly “special editions” Positioning within the company portfolio Nike positioning statement is “For serious athletes, Nike gives confidence that provides the perfect shoe for every sport”. Nike is one of the brands nowadays that can truly follow the Customer Based Brand Equity Model. Salience, Nike is a Global leader in the sports industry, they have endorsed positioning with their real athletes premium brand, selling well-design and high value products. Performance: Nike has a great reputation for giving the best quality and innovation on their products Imagery: Nike gives the perfect example of status, community and selfconfidence by giving the sense of the ability to do anything Judgement: Nike has the perfect combination between credibility and quality on their products by always giving innovation and technology. Feelings: Nike has built on their customers a feel of excitement, security, social approval, and special self achievement with their famous tag lin “Just do it” Resonance: Throughout the years they have been able to create a very strong bond between Nike and their customers, making true loyal customers to the brand. Brand Strategy and Marketing Launch Plan Create a strategic marketing launch plan for your new product Timing for Launch We think that best time to launch a product line is during Christmas because of the high sales this holiday has, so we would start in September announcing the launch of a new brand, we will not give too much information or even show the product, we will just tell our customers to stay tuned for a new Nike´s product line that will help our enviorment and at the same time wilol help them have a better tranning performance. By October we will start our ads campaign, online, TV and billboards, an finally have our official online launch, so that in November we can start selling the product line on all the Nike stores. By December we will have all our ads airing and our products on all of the Nike Stores. Key Product Attributes The product itself needs to show all of Nike´s attributes like innovation, technology and quality but at the same time show our own attributes like sustainable, organic, toxic free, eco friendly and at teh same time its great for your performance when doing any type of sport. Consumer Research to support launch plans As we already know being eco friendly is becoming a very attractive businees strategy, not just because it reduces your company´s carbon footprint, but also beacuse it helps you lower costs, support by the goverment, and obviously increasing profits. The Fashion (including sportwear) industry is the second most polluting industry in the world, and consumers know this, so companies in this sector need to start doing smething abou it if they want to continue in the market. Consumers are caring more about the envoirment than ever before, A recent survey found that 88% of Americans believe taking care of the earth is very important, 55% of consumers across 60 countries are willing to pay higher prices for goods from environmentally conscious companies and 71% of Americans prefer to buy clothing from retailers that are trying to reduce their impact on the environment rather than those that are not. Building Brand awareness with consumer In order to have brand awareness we need recognition and recall, so in order to have both of them first we need repeates exposure, we are planning on having TV ads, Digital campaign and billboards so that our consumers can see us, hear us and think about us. All of our adverstisment will have the Nike logo as well of the famous tag line “Just do it”, and most importantly we will have a famous sport celebrity just as all of the Nike´s ads, that way consumers will rapidly link us with Nike and now that this product line has the “Nike garantee” Distribution/Channel Strategy Our channel distribution on the short term will only be by direct channel, website and Nike´s stores, the reason for this is to make this product line a very exclusive brand, this has worked a lot for Nike in the last years, for example the DYCKMan Street SNKRS are only available on the Nike SNKRS app. We are planning on expanding this line into the indirect channel like dpartment store, on the long run. Pricing Our prices will follow with Nike pricing strategy, Value pricing strategy, so the prices will go between $45 and $100 US dollars. These prices are also align to other product lines that Nike has already launches like their Yoga line, Nikelab Line, and Fangear line. Promotional Plan: Internet Strategy, Social Media Strategy, Web Strategy, Store For our promotional plan we are planning on having TV ads, billboards, digital ads and social media promotion. The key for Nike´s campaigns is creating meaninful and aspirational stories and then translate it into a product, for example its lattest promotional campaign “Dream Crazy” feauturing Colin Kaepernick and Serena Williams, this video was so well created that Nike didnt had to talk about their products, they just showed motivational celebrities using Nike´s products and created a excelent story, this video now a days has more than 30 millions views since launched in september 2018. So that is what we plan to do, create a meaninful and asporational video, feautiring our product, and also feauturing 2 celebrities that are popular right now and are relavnt to our customer, Serena Williams and Kevin Durant, and most importantly showing how these new product line will not only help you but at the same time it helps the enviorment. This video will be aired on TV and on the internet via Youtube. The reason we decided to first launch on the Nike stores is because for our In Store strategy, we want to have a perfectly qualified sales personnel, that will know the product, its advantages, atributes and benefits, so that our customer can find the right product for them and have an excelent customer experience to build a further and loyal relationship. For our Social media strategy, besides having the video campaign we will also like to create a a big buzz by having our customer take action, we will have campaign of asking our customers to upload their photo demonntrating how they help the enviorment while doing their favorite sport skill, all of this using our new product line that way we can show them that our product line also does both things, helps you with your atletic èrformance while helping the neviorment. The winner will get the chance to go to one of Serena William´s matches or see Kevin Duran play with his team the Golden State Warriors. Promotion and Events We decided to have a series of events called “Rooftop Workout”, how it works is, we will send invitations across Nike´s web page to subscribe to the different workouts that we will have in a rooftop of US main cities like Los Anageles, New York, Miami etc. People will be able to subscribe, go to a workout in a rooftop and before stariting the workout they will receive a package of our brand new product line so that they can do the workout in our product and realize by themselves the quality, tecnhology and confort of our line, and after teh class they will be able to buy any product from this product line. PR Strategy, Advertising Our PR strategy will be focused on our 2 celebrities, Serena Williams and Kevin Durant, our main activities besides the video will be meating our winners for the social media competition, they will also talk about the new product line on interviews and use our line on their different matches so that they can show our customer that they are not just embassadors but that they actually aprove the product line and use it. 3 Year Long Term vision for the brand As we mention before our product line will first start focusing on selling online and on Nike stores, so our 3 Year Long Term vision is to open our distribution to indirect channels like Deoartment stores, Amazon and Footlocker that way our product strated at something very exclusive but now it can be available for everyone so that teh brand can stay con the market for as long as possible, making it the most profitable brand in the Nike company, because if its sales and costs. But most importantly it will stay as the only brand in the Nike company that doesnt affect affect the enviorment but tries to improve it. References: https://boodywear.com/pages/bamboo-process https://www.britannica.com/topic/Nike-Inc https://about.nike.com/pages/executives https://mymission.lamission.edu/userdata/schonfd/docs/Assignments/Nike%20Segment ation%20and%20Targeting.pdf https://www.forbes.com/sites/pamdanziger/2018/12/01/nikes-new-consumerexperience-distribution-strategy-hits-the-ground-running/#419a506cf1d0 https://marketrealist.com/2014/12/understanding-nikes-pricing-power-and-premiumproducts-tilt/ https://www.franchisehelp.com/industry-reports/green-industry-analysis-2018-costtrends/ http://academic.mintel.com.proxy.library.nyu.edu/trends/#/observation/938892 https://www.surveymonkey.com/curiosity/more-consumers-are-opening-their-wallets-foreco-friendly-products/ 
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