MKTG Plan Nike - DI

NIKE Marketing Plan
Group members:
Executive Summary
Nike is one of the leading players in the sports market globally and in Singapore. Nike believes
that sports is a healthy and positive expression of human nature and is a noble part of human
experience.
MKTG 1199 NIKE Marketing Plan
This report provides a better understanding on Nikes marketing environment using P.E.S.T and
S.W.O.T analysis to achieve Nikes overall marketing objective. Strengths and Opportunities are
positive factors to actualize Nikes overall performance whereas Weaknesses and Threats are
negative factors that affects companys overall performance.
Nike is well-known to teenagers and working adults. By looking at the market segmentation
table, the marketing team have segmented the groups from young children to elderly. They are
categorised according to Demographics, Psychographic and Behavioural.
In general, Nikes market shares are contributed from the extensive footwear, clothing, Nike
gears and other product categories. The marketing team has set a target to raise Nikes current
market share from current 20.8 % to 23.8% within one year.
This report also consist of detailed marketing mix and implementation plans. Marketing team
will execute the action plan over a phase of 12 months. Within this 12 months, various
promotions, contest and advertising will be carried out to amplify product exposure and creating
a value that meets consumers perceived value.
Nikes marketing department will set aside 10% of the total profit for the marketing plan,
promotion, advertising via magazine, radio, Television(TV) and organizing public events to
reach out to a larger crowd.
Lastly, control plan has been the taken into consideration by measuring the effectiveness of the
action plan and prepare for any unexpected event or problems. This is to ensure that Nike can
achieve the marketing objectives by the end of 12 months.
GROUP ID 12 | LF03
PAGE |1
Table of Contents
1. Background information...........................................................................................................3
2. Situational Analysis...................................................................................................................5
2.1 Analysis of Competitors......................................................................................................... 5
2.2 PEST Factors........................................................................................................................ 6
2.3 SWOT analysis..................................................................................................................... 8
2.4 Porters 5 Forces Model.......................................................................................................10
3. Objectives............................................................................................................................... 11
4. Selection and Target Market....................................................................................................12
4.1 Marketing Research (Please refer to Appendix 4.1).................................................................12
4.2 Market Segmentation........................................................................................................... 12
4.3 Consumer Buyer Behaviour..................................................................................................13
4.4 Target Market Strategy.........................................................................................................15
5. Positioning.............................................................................................................................. 16
5.1 Positioning Perceptual Map..................................................................................................16
5.2 Positioning statement........................................................................................................... 17
6. Strategic Marketing Mix......................................................................................................... 18
6.1 Product.............................................................................................................................. 18
6.2 Price.................................................................................................................................. 22
6.3 Promotion........................................................................................................................... 25
6.4 Place.................................................................................................................................. 30
7. Market Implementation and Evaluation..................................................................................33
7.1
Market Implementation...................................................................................................33
7.2 Evaluation and Control........................................................................................................ 40

8. Conclusion.............................................................................................................................. 43
9. Reference list.......................................................................................................................... 44
10. Appendix.............................................................................................................................. 47
GROUP ID 12 | LF03
PAGE |2
1. Background information
Company History and Background
NIKE, Inc. (Nike), formerly named Blue Ribbon Sports (BRS) was founded by Philip Knight
and Bill Bowerman in January 1964.
In 1971, Nike established as an independent company after their partnership with Onitsuka broke
out due to disagreement. Early 1980s, Nike finally surpassed the German Brands such as Adidas
who previously dominated the US footwear market. Rapidly by 1982, Nike has become the
leading supplier for athletic footwear in America.
Over the past decades, Nike grew their business from an athlete shoemaker to selling of sports
apparel, equipment, accessories and services. Today, Nike continue to specialise in designing,
developing, marketing and selling of authentic and high quality products and services.
As of 2014, Nike has a total of 858 retail stores in Europe, China, Japan and other Emerging
International markets. The global revenue of Nike rose 10% to $27.8 billion. Nikes stable
growth and exceptional performance are attributed from their break-through product and service
innovations, on top of their strong connections with the consumers.
GROUP ID 12 | LF03
PAGE |3
Company Mission Statement

Nikes mission statement is to "Bring inspiration and innovation to every athlete* in the world.
*If you have a body, you are an athlete. Nike believes that sports is a healthy and positive
expression of human nature and is a noble part of human experience. Nike play a part to create
exceptional experience for athletes through creation of innovative products that enhance
performance. The asterisk in mission statement was quoted from founder Bill Bowerman. As
Nike is passionate about what they do, the quote from Bowerman speaks up to the removal of
barriers, refusal to accept the limitations of others, the right for everybody to play and compete.
GROUP ID 12 | LF03
PAGE |4
2. Situational Analysis
2.1 Analysis of Competitors
GROUP ID 12 | LF03
PAGE |5
2.2 PEST Factors

Political Factor
In Singapore, sound law and regulations are in place to protect the interest of businesses. Besides
that, government has a set of robust policies including trade regulations, tax guidelines and
employment laws which are favourable to Nikes daily operational activities. Therefore, political
unrest and terrorism does not contribute to Nikes area of concern. Credited to the vigorous
policies, strong economic growth in Singapore largely benefit Nikes profitability and
sustainability. Being a shoe designer/maker, Nike is not affected by any restriction imposed by
government on controlled items in Singapore.
Economic Factor
During an economic downturn, consumers purchasing power and confidence are reduced. There
might be an impact in currency and exchange rate, marketplace will be affected leading to a
change in consumer purchasing patterns as people spend less on branded goods during bad times.
Nike might also face problems such as increase of prices in raw material and labour cost.
Singapore inflation rate on average is 2.8%, which is relatively healthy and therefore the chances
of facing any economic downturn is generally low.
Social Factor
Millennials (age up to 17), mostly students, are likely to draw their allowance from parents.
Their personality tend to be conservative and conventional.
Generation Y (age 18-29) are either schooling or dependent on their parents for income or
working adults with full time career. Their lifestyles are generally motivated by self-expression
and always seeking for change. Their personality are often impulsive and enthusiastic.
Generation X (age 30-50), mainly the working adults, are more motivated by the desire to
achieve achievement and are more likely to spend more time on family and career. They have the
same personality as Generation Z, however more conservative and conventional.
GROUP ID 12 | LF03
PAGE |6
Baby boomers (50 and above), are moving into retirement. Their personalities tend to be more
conservative and practical as compared to other groups. They are more likely motivated by
ideals.
Technology Factor
Singapores innovative culture and world class IT infrastructure makes it attractive for foreign
investor and local market business. Almost every household that have access to internet are
highly reliant on the IT infrastructure. Since Nike has strong capital foundation and capacity to
invest in advanced technology, Nike came out with an application. The Nike application grants
consumers access to the information and the availability of its products. Nike also makes use of
social media platforms like Twitter, Facebook and YouTube to reach out and promote their latest
products to consumers.
Environment (Customer) Factor

There is an increasing growth towards Saving the environment, saving the world products and
consumers are welcoming the Green idea. Many companies practises reduce, reuse and recycle
method, pollution to the environment is therefore minimized in the process of manufacturing.
Due to different culture in Singapore, they are concerned with the materials used on the products,
uses of animal skins like pig are strongly discouraged.
GROUP ID 12 | LF03
PAGE |7
2.3 SWOT analysis

Strength
Nike is recognized to be the market leader and one of the most influential sports brands in the
sports shoe industry. Nike places large emphasis on their Research and Development by
delivering innovative products which are competent to meet the needs of the consumer. They
have no cash flow problems and are able to set aside large amount of money for advertising and
endorsement yearly.
Weakness
Nike has never done TV advertising in Singapore, hence presence of TV media advertising might
be a challenge. If there is any financial crisis, it causes the consumers to cut down on purchase
on Nike branded running shoe, instead consumers will opt for an affordable substitute. This
will therefore affect Nikes overall performance.
Opportunities
Nike is well-known and generally well accepted by consumers around the globe. Nike can
capitalize on its established brand name and expand its product lines to generate more income
and increase the companys overall profit margin. More people, especially the women are
adopting a healthier lifestyle and investing for better quality pair of running shoes. In the 90s,
there is a huge increase for women's shoe market share making it one of the most attractive and
profitable market. Nike can make use of social-networking platforms to increase awareness
among consumers.
GROUP ID 12 | LF03
PAGE |8
Threats
The sports shoes market is very competitive because of other competing brands like Adidas and
Reebok. With increasing domination in the market, competitors may follow closely to Nikes
new launch and product ideas. Substitutable designs from competing brand are likely to affect
Nikes original products and adversely impact the image of Nike. Some price-sensitive
consumers are likely to look for cheaper alternatives for sports shoes that provides similar
functions as Nikes which might affect Nikes overall profit in the long run.
GROUP ID 12 | LF03
PAGE |9
2.4 Porters 5 Forces Model
GROUP ID 12 | LF03
P A G E | 10
3. Objectives
Corporate Objectives - Nike is a Growth Company
Nike focuses on the long-term financial growth and sustainability across the various product
brands and businesses. In the Global Growth Strategy released on May 2010, the forecasted
revenue for Financial Year (FY) 2015 was $27 billion based on growth expectations from its
wide range of portfolios from Nike and other subsidiaries. With exceptional performance, the
target of $27 billion was attained in 2014 fiscal year end. Nike believes there is absolutely no
lack of growth opportunities and they have never been stronger in the marketplace.
In FY 2015, Nike will continue to strive towards achieving another milestone - To increase
global revenue growth by 10% over a period of one year. Nike is fully committed to drive
sustainable and profitable growth for the shareholders at all times.
Marketing Objective - Nike Singapore

To achieve the targeted global revenue growth of 10% by next fiscal year, Nike Singapore plays
a crucial role in contributing to the results. Having done the market analysis, Nike Singapore
realised there is further potential for womens running shoes market contributed from the rise in
health-conscious females in Singapore. Based on FY 2014 Annual Report, Nike global has seen
an increase in revenue of womens footwear line up by 11%. With this probable trend, marketing
teams in Nike Singapore will penetrate into the womens market on existing Nike Air shoes
through various strategies.
Main marketing objective:

To increase the existing female market share of Nike Air by 3% in fiscal year end 2015
GROUP ID 12 | LF03
P A G E | 11
4. Selection and Target Market

4.1 Marketing Research (Please refer to Appendix 4.1)
4.2 Market Segmentation
GROUP ID 12 | LF03
P A G E | 12
4.3 Consumer Buyer Behaviour

Consumers buyer behaviour is influenced by four major factors, cultural, social, personal and
psychological. It is vital to understand buyers behaviour which helps assess each markets
potential and better constructing suitable marketing mixes for the targeted segments.
Cultural Factors
Cultural factors are mould by the society and environment. Quality standard of living is highly
sought after in the competitive Singapore culture. Where everyone wants the best for everything.
When wants are backed by purchasing power, it turns into demands. Thus Nike should focus on
creating high quality shoes for consumers to meet the expectation of being the best.
Social Factors
Social factors are influenced by family, peers, opinion leaders and aspirational targets. Consumer
may be easily influenced by people in the social circle which might affect their motivation in
purchasing a product. It is important that Nike reach out to opinion leaders; an example would be
to use bloggers as word-of-mouth influence to their followers. Nike also have excellent brand
ambassador such as Maria Sharapova which would be an ideal aspirational target for females.
GROUP ID 12 | LF03
P A G E | 13
Personal Factors
Personal factors encompasses age, occupation, lifestyle and personality. Individuals of different
age group or occupation act differently and have different preferences. An individuals brand
preference is due to brand attachment, familiarity or habits. It is key for Nike to position
themselves in line with the personality of the targeted segment so that the consumer will feel
connected to the brand. In this marketing plan, Nike female running shoes are positioned as the
coolest, most fashionable footwear.
GROUP ID 12 | LF03
P A G E | 14
Psychological Factors
A persons buying behaviour are influenced by attitudes and beliefs, motivation, perception and
experience. Nike being the market leader, should take advantage of this situation to ensure that
confidence and quality is deeply embedded into the beliefs and attitude of consumer.
GROUP ID 12 | LF03
P A G E | 15
4.4 Target Market Strategy

Target market
According to the market research analysis and segmentation table, females aged between 18-29
were chosen as the target market. This group of consumers are usually employed and have
relatively high spending power, which can be a good motivation to spend on their wants.
They can be categorised as an experiencers and strivers according to Values, Attitudes and
Lifestyle (VALS) framework.
This segment fit Nikes Brand personality perfectly which will allow them to feel connected to
the brand, aiding brand attachment and ultimately turning into opinion leaders for future
customers. By narrowing into this target market, it furnishes Nike with an edge over other
competitors and avoid unnecessary marketing costs.
GROUP ID 12 | LF03
P A G E | 16
5. Positioning
5.1 Positioning Perceptual Map
Price vs Perceived Quality
Price vs Perceived Aesthetic Appeal
GROUP ID 12 | LF03
P A G E | 17
The perceptual maps illustrates Nike against other competitors in the market based on price,
quality and aesthetic appeal. Nike holds the largest market share even at such high prices; the
survey results concludes that consumers look for quality and aesthetic appeal in a running shoe,
this proves that consumers are willing to pay higher price for better perceived quality and
aesthetic appeal. The primary aim for Nike is to maintain the current positioning in the minds of
the consumers by continually upholding the integrity of the quality and originating aesthetically
pleasing designs that will revolutionize the fashion trends in the footwear market.
5.2 Positioning statement

To modern and health conscious ladies who need to maintain fitness and body figure, Nike Air is
a pair of revolutionary and sophistically engineered running shoes that provides best
performance bundled with aesthetic appeal.
GROUP ID 12 | LF03
P A G E | 18
6. Strategic Marketing Mix

6.1 Product
Core Product
Since establishment, Nikes main goal is to provide athletes with best quality shoes. Nike Air
provides comfort, performance and superiority experience for athletes when running, walking
and even playing sports.
Actual Product
Nike Air features includes shoe technology such as cushioning and light-weight, fashionable and
useful design, high quality materials used, highly perceived Nike brand image and ecological
packaging of final Nike Air products. All these attributes must be combined to deliver core
benefits.
Augmented Product
Nike Air offers more than just footwear with actual benefits and features. Nike also provides
customers with satisfying after sales service. For instance, concerning to items exchange, refund
and other relevant queries, consumers can approach any Nike retailers, distributors or resellers
for a swift response. In addition, Nike website has also introduced value-add service by allowing
consumers to customise their trainers and easily source for ideal footwear using smart filters.
Classification of products
Product categories of Nike includes athletes footwear, sports clothing, equipment and
accessories. In this marketing plan, the focus will be on Nike womens footwear line, Nike Air.
Nike Air is classified under specialty products and often noted as items which is differentiated in
the market and is highly sought by consumers.
GROUP ID 12 | LF03
P A G E | 19
Product Quality and Features

Product quality is one of Nikes positioning tools in the marketplace. Whereas Nike product
features has helped to differentiate Nike from its competitors, Nike always uphold the mission of
producing quality products that will bring benefits to the wellbeing of consumers and satisfy
their needs. The Nike Air footwear brings about both quality consistency and level. Nike is
consistence to the conformity of quality products and guaranteed products are manufactured with
highest quality check and free from defects. However, in any case consumers are faced with
defective goods, Nikes exchange and refund policies will be available across retailers,
distributors and resellers. Nike Air has remarkable product quality level, ensuring every piece of
product delivers high performance for the athlete. Accompanied with performance of Nike Air,
there are key features in which makes Nike Air stand out in the marketplace. The key
specifications are mentioned as below.
Specifications
Performance - In the midsole beneath the heel, forefoot or in both areas, lies an air sole unit
which is made up of pressurized air inside a tough but flexible bag. Nike Air cushioning makes
the shoe lighter yet doesnt compromise on quality performance.
Features - Nike Air shoes provide an array of choices to cater to the different needs and want of
the consumers. They can be categorized into width, type of floor surface, the purpose of the shoe
and lastly the type of shoe. The cushioning in Nike Air helps to prevent injuries by compressing
itself in the impact of landing, and returns to its original state in time to prepare for the next
landing.
Additional features - All Nike footwear are embedded with small transmitter device that allows
customers to track their exercise performance via Nike+ application. Nike+ is a collaboration
between Nike and Apple to create a different experiences for the athletes and those seeking a
healthier lifestyle
GROUP ID 12 | LF03
P A G E | 20
GROUP ID 12 | LF03
P A G E | 21
Product Style and Design

In order to grow the women business, it is important for Nike to value-add through style and
design that appeals to women. Nike needs to constantly introduce new designs or versions that
cater to the fast changing preference of women. The frequency of newly launched products will
definitely be higher than of other segmented market. Women are constantly searching for new
style and design to match their likings. It is therefore important that Nike provides wider
variation of colours and styles periodically. Nike recognised that in a womens market, there will
be no performance without style. Nike promises and delivers a variety of style that will cater to
the women market.
Aesthetic features
The Nike Air shoe comes in different design and colours to appeal to ladies, where fashion is not
only limited to clothing. Footwear places an important part in fashion where female tend to pay
close attention on the matching of their outfit with their shoe. One of the plus point of Nike is
that customers are able to customize the shoe colour for each design, subjected to availability.
Branding Strategy
Nike acquired a strong brand positioning since start up. Nike positioned its brand name
associated with performance, and in Greek, Nike refers to Goddess of Victory. Performance is
what Nike promises to deliver. The various Nike product lines are named after product benefits.
For instance, Nike Air will give consumers the idea of light-weight (air) and performance. Nike
also forged deep connection with the consumers by creating beliefs and values. Focusing on
emotional branding, Nike inspires consumer loyalty through advertising revolving around
success, heroism and triumphant. In addition, the slogan Just do it encourages everyone to take
the next step up. Nikes strong branding strategy enables its sub product-line Nike Air in
occupying a substantial womens market share.
Packaging
Packaging is a significant part of products which will affect consumers choice. Since 2011, Nike
introduced a shoe box that is fully recycled, recyclable, lighter weight and stronger. With the
GROUP ID 12 | LF03
P A G E | 22
increase in awareness of environmental issues, Nike wants to reach out to the consumers by
playing a part in sustaining the ecology. To attract females who are typically more interested in
style and colour of packaging, Womens Nike Air will propose various bright colours and
patterns shoe box that appeal to consumers.
Product Mix
As a leading brand leader, Nike has a wide range of product mix. There are 3 major product mix
width - shoes, clothing and gear. The product mix width can be further broken down into running
shoes, basketball shoes, running clothing, football clothing and such. In the respective product
line (width), the product mix length varies with different number of sub-line in Nike. For running
shoes, the product mix length totalled up to 7 sub-line - The product mix depth refers to number
of versions offered by each sub-line. For instance, Nike Air currently have a product mix depth
of 24 versions of shoes. Nike Air is a line extension of Nike footwear and is part of the product
mix length.
Product Life Cycle Strategies

Nike Air shoe goes back a long time in history as it was first produced in 1979. Since then,
newer designs and improvements has been made to last till today, although it is one of the oldest
product line launched by Nike, it remains popular and well received. As there are also competitor
brands that are also releasing new shoes with improved features and design, Nike needs to be
able to put across to consumers on why is Nike Air shoes differentiated from other brand. The
price range of the Nike Air female running shoes is not going to decrease anytime soon as the
market for female running shoes has just picked up
Nike Air shoes belong to the maturity stage, where it has been recognized and accepted by
consumers in the market. Advertising and sales promotions have to be done in order to entice
consumers into purchasing the product. Organizing campaigns and marathons are ways for Nike
to capture the attention of consumers.
GROUP ID 12 | LF03
P A G E | 23
6.2 Price
Pricing strategy is something determines the profitability of the business. Compared to other
running shoe brands, Nikes female running shoes are priced on the higher end, which in turn
shows how much emphasis Nike places on quality.
Price Ceiling vs Price Floor

Nike will sets its price for Nike Air female running shoes above the production cost so as not to
suffer any losses that will incur from the sale of each shoe, and also pricing it such that it does
not exceed the consumers perceived value of the product.
Value-based Pricing
Nike focuses on consumer needs and value perception. In terms of branding, Nike is well known
as the global athlete footwear leader. Hence, Nike Air will adopt the valued-based pricing on the
female running shoes as consumers have grown loyalty towards Nike brand, high performance
and quality. Nike Air will take up value-added pricing strategy as the high price is justifiable by
the key features that can be differentiated from marketplace.
Type of market - Monopolistic Competition, Price Inelasticity

Nikes strong brand image help differentiate Nike footwear from the rest of competitors. Nike
have always been perceived by consumers as premium footwear brand that delivers best
performance and experience. Nike therefore belongs to the monopolistic competition as Nike is
able to differentiate products to buyers. As consumers commonly purchase Nike sports shoes
mainly for its brand image, prestige status and quality, Nike Air womens running shoes is
considered to be inelastic in demand. In other word, consumers are less price sensitive towards
Nike products contributed to its unique features and the image of exclusiveness and superiority.
GROUP ID 12 | LF03
P A G E | 24
New product pricing strategy - Price Skimming

Nike also practices the price skimming strategy which is also known as higher pricing where
newly released female running shoe for Nike Air are set at a high price (price is set at whole
number, to end with .00) as it is an indication that Nike is coming up with new designs and are
making innovative changes. Nike practices this strategy because of the confidence it has with its
image among consumers as well as the quality of the shoe. When the shoe is first released,
innovators will usually be the ones who are prepared to pay the price for the shoes. When a new
series of shoes is ready to be released, there will be a reduction in price for the shoes (price is set
to end with .99) in the current market, therefore leading to more consumers being attracted to
the price fall and the thinking that anything ending with .99 is much cheaper than .00, which
can be called as psychological pricing. Till this point, this strategy has been working very well
for Nike and this proves a point, that Nike has been consistent with their products, which is what
consumers are looking for in a product.
Product Mix Pricing Strategy Product line pricing

Respective lines have distinct features and functions that cater to different consumer groups. By
matching the product benefit and features to the price, Nike product mix will result in different
price ranges. Nike Air will adopt the product line pricing, which is the common pricing strategy
of Nike. Product line pricing will set price steps between product line items, which is noticeable
from Nike website. In this marketing plan, Nike Air will be targeting women aged 18 to 29. This
is a wide target group where some might not have join the workforce yet, while some may have
worked for a few years, earning medium range income. Therefore, Nike Air will set at a wide
price range of $90 to $290, considering Nike Air benefits
Price Adjustment Strategy - Promotional pricing

Price adjustment on products will be inevitable if product become less popular or when new
products are launched. As a leading brand in the market, Nike typically tries not to reduce the
pricing due to high quality of products and superior brand image. However, depending on the
situation, Nike will propose temporary price drop of certain Nike Air products to increase shortGROUP ID 12 | LF03
P A G E | 25
run sales during special events. Special events could be campaigned to raise awareness for
certain social issues, marathon sponsored by Nike or outdoor advertising event that will help
promote Nike Air from the targeted group. Also, in certain situation where newer modified
products are launched, older versions have to be publicize through promotional pricing before
inventory become obsolete. The price adjustment strategy will be consistent across retail stores,
partner distributors and resellers in order to capture the larger market.
GROUP ID 12 | LF03
P A G E | 26
6.3 Promotion
Integrated Marketing Communications
Due to the shift towards a richer mix of media and communication, many companies have
identified the importance of Integrated Marketing Communications to increase marketing
effectiveness. It is the approach to coordinate the various promotion methods and integrate
clarity, consistency and maximum communications impact. The main objective of the
promotional strategy is to enhance the brand awareness and increase market share through a
series of promotional mix which includes advertising, sales promotion and public relations.
Advertising
Advertising Objective
It is to build brand preference and to maintain customer relationship with the existing customers.
The advertising strategies target the female consumers aged 18 to 29, who are keeping up with
the latest fashion trend in the market while pursuing a healthy lifestyle. The objective is to
increase the reach to 75% of the target market for the first 6 months of advertising campaign.
The advertising tools used would aim to create a clear and consistent message to the target group
and get them to respond.
Television (TV) and Cinema Commercials

TV viewership is high in Singapore. MediaCorp is currently the most popular home-grown
channel in Singapore. It has an average weekly reach of 65%. TV advertising is effective because
it reaches a large audience and allows the marketing team to target specifically. Since the target
group of consumers is aged 18-29, it is assumed that they are either students or working adults.
TV commercials will be placed at specified time slots such as in the evening and/or at night
where the target group has already knocked off from work or be at home after school.
Studies have shown that moviegoers experienced heightened emotional responses when viewing
the advertisements in a cinema setting. In cinema theatre, the screens are bigger and
GROUP ID 12 | LF03
P A G E | 27
advertisements tend to stretch over a longer duration. The level of engagement of audience is
high for commercials in a cinema setting. Therefore, the idea is to seek to reach the target
audience at certain movie shows, generally films that appeal to the target group.
Clear Channel Billboards

On average, people spent about 21% of their day travelling and it is impossible for consumers to
miss a billboard. To reach out to the larger mass, Clear Channels advertising services would be
engaged over a period of three months and have them advertise Nike Air on billboard at bus
shelters. The advertisements would be situated in high human traffic area such as Orchard Road.
Magazines
Magazine is an effective tool for word-of-mouth among consumers. Consumers made the choice
to purchase the magazines. Therefore they would be more open and receptive to what they are
looking and reading. Cleo, 8 Days and Her World are magazines brands that would interest the
target consumers group, advertisements would be placed in them to appeal to the target
consumers.
Social Media
Living in a technology-savvy society, consumers would want to receive information on the go.
An all-year round active advertising approach on the Internet would be employed to reach out to
the targeted group. There will be frequent updates about the brand and Nike products on
Facebook, Twitter and Instagram (@nikewomen). It is not just creating awareness about the
brand and products but also about communicating with the target group of consumers.
Consumers may also share their product experiences and give reviews about their Nike buys on
these media platforms, forming a community of their own.
It is beneficial to hedge on the popularity of some bloggers, who act as opinion leaders in the
field of fashion and fitness. The message that the marketing team would like to get across is that
Nike Air shoes serve its purpose as a stable balanced running shoes and at the same time it does
not lose its fashion touch. The team could sponsor these opinion leaders with Nike Air shoes so
that they could promote and publicise the product on their social media.
GROUP ID 12 | LF03
P A G E | 28
Running Events and Campaigns

To make female consumers feel exclusive, a female running event Nike Womens Run could
be organised on every International Womens Day to celebrate the achievements of females. In
addition, it is important to attach positive experiences with Nike brand. The footwear for the next
Colour Run could also be sponsored to increase Nikes brand awareness.
Sales Promotion
Online Contests
In the effort to increase publicity and consumer engagement, online contests will be organised
through Facebook and Instagram from May 2015 to April 2016. Consumers will have to state the
reason(s) why they would like to win and own a pair of Nike Air on their social media. A winner
among the contestants will be chosen and she may redeem her prize at any Nike retail stores in
Singapore. The purpose of the contest is to increase the exposure and remind consumers of the
brand.
Discount
On normal occasion, there would be not be any discounts or offers generally, so as to retain the
value of the brand and products. However during sales seasons, a 15-20% discount off the
second pair purchased may be introduced to encourage and boost sales. This would encourage
consumers to either buy more or purchase their Nike shoes with another family or friend.
GROUP ID 12 | LF03
P A G E | 29
Public Relations
Public Affairs
One of the ways to build a positive corporate image is to care for the national community.
Though Nike is a profit-driven company, it will like to contribute back to the society. A new
project will be initiated, it will be in collaboration with Running Lab, to collect used running
shoes that are still in good condition. The shoes collected would be donated to selected charities
in other countries. To encourage people to participate, every donor would receive a $15 voucher
whenever they make a shoe donation.
As mentioned above, Nike Womens Run a running event will be organised every year. Nike
will bear all the costs and expenses. All registration fees collected for the run will be donated to
Singapore Woman Council Organisation(SWCO) to help women in need.
Press Relations
It is important to maintain good relationships with the media and press agencies. Nike wishes to
be as transparent as possible to the public. Therefore, it is necessary for the marketing team to
maintain relations with various press agencies from time to time, keep them updated on the new
developments products, make announcements through them and accept their interviews.
GROUP ID 12 | LF03
P A G E | 30
Media Calendar (May 2015 to April 2016)
GROUP ID 12 | LF03
P A G E | 31
6.4 Place
Channel Levels
The marketing team would be adopting an indirect marketing channel, where the main types of
intermediaries engaged would be the importers, distributors and retailers, including the online
retailers.
GROUP ID 12 | LF03
P A G E | 32
Channel Behaviour
As the marketing goal is to increase Nikes brand awareness and market share, Nike would need
to increase the products accessibility and availability. In order to reach diverse customer
segments, the distribution of Nike Air would be through multi-marketing channels (hybrid). In
the target group of customers, we would split them into two different segments - online shoppers
and walk-in customers. Nike sells through a network of distributors and value-add retailers to
their consumers. Consumers may also buy directly from Nike online store and have their
purchases delivered to their homes with convenience.
Intensive Distribution Strategy and Channel Innovation

Products accessibility and availability have to increase in order to expand brand awareness and
market share. Nike is well-established in Singapore with many stores island-wide. To have a
wider reach to the consumers, collaboration with Fitness First and the gymnasiums in the five
polytechnics in Singapore will be carried out. Consumers who sign up for Fitness First
membership package will enjoy discounts perks when they purchase Nike Air. This is to
encourage purchase of Nike Air.
Nike would also increase its reach to consumers by setting up a Nike outlet near the sports
complex in the five polytechnics. Apart from Nike Air, the store would also sell several basic
sportswear and accessories. Prices offered would be slightly lower than market prices for the
students.
GROUP ID 12 | LF03
P A G E | 33
Costing and Sales (Budgeting)

Monthly Estimated Cost and Profit
GROUP ID 12 | LF03
P A G E | 34
7. Market Implementation and Evaluation

7.1
Market Implementation
Overall Approach to Implementation

Having done the marketing analysis, assessment of target market and enhancement to marketing
mix, implementation and control follows. Marketing team came up with a comprehensive tactical
plans to guide the smooth operation of proposed marketing strategies. The tactical plan spells out
specific details on required actions, department involved, estimated budget and tentative date of
execution from period May 2015 to April 2016.
GROUP ID 12 | LF03
P A G E | 35
Detailed Tactical Plan (Action Plan)

Period: May 2015 to April 2016
GROUP ID 12 | LF03
P A G E | 36
GROUP ID 12 | LF03
P A G E | 37
GROUP ID 12 | LF03
P A G E | 38
GROUP ID 12 | LF03
P A G E | 39
GROUP ID 12 | LF03
P A G E | 40
GROUP ID 12 | LF03
P A G E | 41
GROUP ID 12 | LF03
P A G E | 42
7.2 Evaluation and Control

Regular evaluations will be conducted to ensure that operations run smoothly and meet
requirements and objectives. This is to ensure that the marketing team is able to achieve the
objectives on time, and at the same time, discover and solve any threats or problems.
Customer Feedback
One of the controls put into place is to monitor the customer feedbacks through surveys and
polls. Marketing team can reach the customers indirectly through conducting online polls that
asked specific questions relating to recent marketing plan. Alternatively, surveys can be carried
out through individual interviews by email, phone or in person. Adjustment can be made to the
marketing plan according to the data collected.
In order to evaluate the marketing plan, the marketing team will work closely with several
departments to gather customers feedbacks. The Frontline staff will be able to provide first-hand
feedbacks from the customers as they are the first point of contact. The Customer Services
Department presents the dissatisfactions and queries raised by the customers, allowing the
marketing team to identify the problem effectively and take corrective actions to minimize
damage. Sales Department supplies the sales figure collected which indicates the markets
response. Monthly meeting will be conducted to review and address the feedbacks gathered.
Audits and Reviews

Quarterly internal audit will be conducted. A follow-up review will be presented to ensure that
issues can be highlighted early and ironed out timely. Audit serves to monitor and examine
expenses. With regular audits performed, the marketing team will be able to identify and control
the expenses spent.
The internal audit will be able to evaluate whether the marketing plan has achieved the budgeted
costing. During the internal audit, a comparison of actual accounting and budgeted figures will
be review. Evaluation of the actual cost breakdown will be indicative for the marketing team to
GROUP ID 12 | LF03
P A G E | 43
identify the areas that are planned accurately and inaccurately. These will aid them in the future
marketing plan.
External audit will also be performed at the end of the project. This is to examine the overall
financial accounts and provide an opinion on whether the accounts are reflected accurately. This
enables the management to have a reasonable assurance in the operation of marketing plan.
7.3 Contingency Plan

Marketing plan can be well drafted but there is a possibility that the plan may differ from
expected. Therefore it is important that the marketing team develops a contingency plan that
addresses unexpected outcomes resulting in deviation.
Deviation in Media Exposure
Media calendar have been planned out. However, the Press may not be able to accommodate
Nikes timeline due to conflicting schedules. This may occur due to prior contracts between Press
and other firms. Therefore the marketing team will need to be flexible and think on the feet.
Rescheduling is inevitable.
GROUP ID 12 | LF03
P A G E | 44
Response for Nike Womens Run

Overwhelming Response
One of the outcomes that may cause deviation from plan could be having an overwhelming
response of participation from the target audience. The Nike Womens Run has a limited budget,
therefore it will not be able to accommodate more participants if it exceeded the forecasted
quota. In order to tackle the issue, the marketing team will consider increasing the number of
slots.
Underwhelming Response
In contrast, the response received may be way lower than expected. This will force the marketing
team to make a decision whether to continue or cancel the run. Whichever the decision is, the
budget will not be applicable as the response differs from speculated.
Disapproval of distribution location

One of the potential issues that may surface will be the disapproval from the five polytechnics on
setting up Nike retail outlet within the campus. With this rejection, the marketing team must be
prepared to scout for alternative locations that have similar target audience.
Similarly, if Fitness First were to reject or halt the collaboration, the marketing team will have to
be prepared to source for a replacement such as True Fitness and California Fitness.
GROUP ID 12 | LF03
P A G E | 45
8. Conclusion
Nike is a well-established brand; a dominant player among its competitors. However,
competition in the sports industry has been aggressive due to increasing numbers of competitors
entering the market. To overcome the challenges in the combative industry, it is important for
Nike to improvise its marketing strategies to retain existing customers and attracting new ones.
To remain as the market leader in the industry, Nike has to differentiate itself from their
competitors. The proposed marketing plan is designed to leverage on future opportunities. After
extensive market selection, Nike plans to focus on enhancing existing market - the female
segment of age 18-29.
The marketing plan proposes to achieve an increase of market share by 3% in the existing female
market through various strategies of the marketing mix. Nike is confident in achieving an
increment of sales from 20.8% to 23.8% within 12 months period. The product strategy
highlights Nikes product quality and bundling with good after service.
In addition, Nike plans to offer a price that the target group would find it affordable and value for
money. As for promotion, Nike utilises Press, social media and several other platforms for
constant exposure to the market. Through exploring strategic channels of distribution and
collaboration with new partners, Nike wishes to increase its exposure in the market and attract
the target group. The overall promotional mix is to retain Nikes position as market leader.
6143 Words
Excluding Titles, Headings, Table of contents, Reference and Appendix
GROUP ID 12 | LF03
P A G E | 46
9. Reference list
Adidas, Photograph, Viewed 3 March 2015, <http://demandware.edgesuite.net/sits_pod14adidas/dw/image/v2/aagl_prd/on/demandware.static/Sites-adidas-AME-Site/Sites-adidasproducts/en_SG/v1428025071723/zoom/B26736_01_standard.jpg?sw=500&sfrm=jpg>.
Forbes 2014, How Nike Can Grow Its Womens Business, Forbes, United Kingdom, viewed 6
March 2015, <http://www.forbes.com/sites/greatspeculations/2014/08/26/how-nike-can-growits-womens-business/>.
Kell, J 2014, Nike makes a big push into the fast-growing womens segment, Fortune, US,
viewed 7 March 2015 <http://fortune.com/2014/10/22/nike-women-business/>.
Kim, J 2010, History of Nike Air, viewed 20 March 2015,
<http://sneakernews.com/2010/02/25/history-of-nike-air/>.
Kotler P, Armstrong, G, Ang, S.H, Leong, S.W, Tan, C.T and Yau, O 2012, Principles of
Marketing: An Asian Perspective, Pearson Education, Singapore.
Mellery-Pratt, R 2015, Why Are Sportswear Giants Nike and Adidas Embracing Fashion?,
Business of Fashion, United States, viewed 20 March 2015,
<http://www.businessoffashion.com/articles/intelligence/nike-adidas-sportswear-fashion>.
New Balance, Photograph, Viewed 3 March 2015,
<http://s7d5.scene7.com/is/image/NB/w890km5_nb_14_i?$dw_temp_default_gallery$>.
Nike 2014, Business Overview, Nike, United States, viewed 10 March 2015,
<http://www.nikeresponsibility.com/report/content/chapter/business-overview>.
Nike 2014, Letter to Shareholders, Nike, United States, viewed 11 March 2015,
<http://investors.nike.com/files/doc_financials/2014/index.html#mark_parker_letter>.
Nike 2014, Nike Mission Statement, Nike, United States, viewed 12 March 2015, <http://helpen-us.nike.com/app/answers/detail/a_id/113/~/nike-mission-statement>.
Nike 2010, Nike, Inc. Introduces 2015 Global Growth Strategy, Nike, United States, viewed 8
March 2015, <http://news.nike.com/news/nike-inc-introduces-2015-global-growth-strategy>.
GROUP ID 12 | LF03
P A G E | 47
Nikebiz 2010, Strategy, Nikebiz, United States, viewed 18 March 2015,

<http://www.nikebiz.com/crreport/content/strategy/2-1-4-a-new-model-and-shift-to-sustainablebusiness-and-innovation.php?cat=cr-strategy>.
Nike, Inc 2012, Environment, Nike, Inc., United States, viewed 14 March 2015,
<http://www.nikebiz.com/crreport/content/environment/4-7-0-case-study-rethink-the-box.php>.
Nike 2012, What is the core Nikes philosophy?, Nike, United States, viewed 17 March 2015,
<http://investors.nikeinc.com/files/doc_financials/annualreports/2007/pdfs/nike_ar_mparker_200
7.pdf>.
Reebok, Photograph, Viewed 3 March 2015,
<http://demandware.edgesuite.net/sits_pod27/dw/image/v2/AAJP_PRD/on/demandware.static/Si
tes-Reebok-INT-Site/Sites-reebok-products/en_IT/v1427690577992/zoom/M40404_01.jpg?
sw=500&sfrm=jpg>.
Reference for Business 2007, Nike, Inc. - Company Profile, Information, Business Description,
History, Background Information on Nike, Inc., Reference for Business, United States, viewed
11 March 2015,
<http://www.referenceforbusiness.com/history2/99/Nike-Inc.html>.
Riley, J 2012, Corporate Objectives & Strategy, Tutor2U, United States, viewed 16 March
2015, <http://www.tutor2u.net/business/strategy/corporate_objectives_strategy.html>.
Riley, J 2012, Marketing Objectives, Tutor2U, United States, viewed 15 March 2015,
<http://www.tutor2u.net/business/marketing/planning_setting_objectives.asp>.
Skechers, Photograph, Viewed 3 March 2015, <http://cdn4.skechersusa.com/img/productimages/large/12061_AQMT.jpg>.
Statistica 2015, Forecast of Nikes global market share in athletic footwear from 2011 to 2020,
Statistica, United States, viewed 3 March 2015,
<http://www.statista.com/statistics/216821/forecast-for-nikes-global-market-share-in-athleticfootwear-until-2017/>.
Statista 2015, Statistics and Facts of Nike, The Statista Portal, United States, viewed 6 March
2015, <http://www.statista.com/topics/1243/nike/>.
Statistic 2014, The Sporting Goods Industry, The Statiscal Portal, United States, viewed 7
March 2015, <http://www.statista.com/chart/2721/the-sporting-goods-industry/>.
GROUP ID 12 | LF03
P A G E | 48
Statistic 2015, Total number of Nike retail stores worldwide from 2009 to 2014, The Statistics
Portal, United States, viewed 18 March 2015, <http://www.statista.com/statistics/250287/totalnumber-of-nike-retail-stores-worldwide/>.
Success Story 2014, Nike, Inc. Success Story, Success Story, United States, viewed 10 March
2015, <http://successstory.com/companies/nike-inc>.
Theodore 2014, A Brief History of Nike, Nike, United States, viewed 9 March 2015,
<http://www.todayifoundout.com/index.php/2014/07/history-nike/>.
Trading Economics 2015, Singapore Inflation Rate, Trading Economics, Singapore, viewed 5
March 2015, <http://www.tradingeconomics.com/singapore/inflation-cpi>.
Warner, F 2002, Nikes Womens Movement, Fast Company, United States, viewed 14 March
2015, <http://www.fastcompany.com/45135/nikes-womens-movement>.
602 Communications, Nike Brand Strategy: Emotional Branding using the Story of Heroism,
602 Communications, United States, viewed 10 March 2015,
<http://602communications.com/2013/02/nike-brand-strategy-emotional-branding-using-thestory-of-heroism/>.
GROUP ID 12 | LF03
P A G E | 49
10. Appendix
Appendix 4.1
4.1 Marketing Research
Methodology
Survey research has been conducted at Bishan stadium by surveying frequent joggers over 3 days
with a total of 30 respondents. By exploring personal preference, valuable insights are gained to
what a consumer really lookout for in a running shoe.
Results
The results (Appendix 4.1.2) revealed that 56.67% of the sample were female (Appendix 4.1.2a).
Majority (50%) comes from age group 18-29 years old (Appendix 4.1.2b).
40% with
disposable income of $1000 or more (Appendix 4.1.2c). Aesthetic appeal appears to be the most
popular and decisive factor for a running shoe (Appendix 4.1.2d). 47% agreeing that the price
would not affect their buying decision (Appendix 4.1.2f).
Analysis
After a comprehensive analysis of the results, It is inferred that majority of the health conscious
individuals that exercise regularly are females aged between 18-29 (Appendix 4.1.2a-b). As most
of them are working adults, their average disposable monthly income is mostly above
$500(Appendix 4.1.2c). Aesthetic and Comfort appears to be popular amongst the males while
females favoured Aesthetic and Durability (Appendix 4.1.2d-e). Overall, price is not a decisive
factor for the females but the males exhibits otherwise (Appendix 4.1.2f-h).
Back to Selection and Target Market
GROUP ID 12 | LF03
P A G E | 50

Survey results (Appendix 4.1.2)
BACK
(Appendix 4.1.2a)
What is your gender?

Male
13
Female
17
Total
30
GROUP ID 12 | LF03
P A G E | 51
(Appendix 4.1.2b)
BACK
What is your age?

Below 17
18-29
15
30-50
Above 50
Total
30
GROUP ID 12 | LF03
P A G E | 52
(Appendix 4.1.2c)
BACK
What is your disposable income/allowance per month?

$0-$100
$101-$500
$501-$1000
11
Above $1000
12
Total
30
GROUP ID 12 | LF03
P A G E | 53

(Appendix 4.1.2d)
BACK
What do you look for in a pair of running shoes? (you can choose more than one)
Cheap Price
Lightweight
Aesthetic Design
20
Comfort
11
Durability
16
Total
60
GROUP ID 12 | LF03
P A G E | 54
(Appendix 4.1.2e)
BACK
Breakdown between genders

What do you look for in a pair of running shoes? (you can choose more than one)
Male
Female
Cheap Price
Lightweight
Aesthetic Design
15
Comfort
Durability
11
Total
26
34
GROUP ID 12 | LF03
P A G E | 55
(Appendix 4.1.2f)
BACK
If you had set your eye on a particular model, will the price affect your buying decision?
Yes
No
14
Maybe
10
Total
30
GROUP ID 12 | LF03
P A G E | 56
(Appendix 4.1.2g)
BACK
(Appendix 4.1.2h)
Breakdown of Genders
Males
Females
Yes
5
1
No
4
11
Maybe
4
5
Total
13
17
GROUP ID 12 | LF03
P A G E | 57

MKTG Plan Nike - DI

Încărcat de

Informații document

Descriere originală:

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

MKTG Plan Nike - DI

Încărcat de

Drepturi de autor:

Formate disponibile

NIKE Marketing Plan

MKTG 1199 NIKE Marketing Plan

MKTG 1199 NIKE Marketing Plan

7.2 Evaluation and Control........................................................................................................ 40

MKTG 1199 NIKE Marketing Plan

MKTG 1199 NIKE Marketing Plan

Company Mission Statement

MKTG 1199 NIKE Marketing Plan

MKTG 1199 NIKE Marketing Plan

2.2 PEST Factors

MKTG 1199 NIKE Marketing Plan

Environment (Customer) Factor

MKTG 1199 NIKE Marketing Plan

2.3 SWOT analysis

MKTG 1199 NIKE Marketing Plan

MKTG 1199 NIKE Marketing Plan

2.4 Porters 5 Forces Model

MKTG 1199 NIKE Marketing Plan

Marketing Objective - Nike Singapore

Main marketing objective:

MKTG 1199 NIKE Marketing Plan

4. Selection and Target Market

MKTG 1199 NIKE Marketing Plan

4.3 Consumer Buyer Behaviour

MKTG 1199 NIKE Marketing Plan

MKTG 1199 NIKE Marketing Plan

MKTG 1199 NIKE Marketing Plan

4.4 Target Market Strategy

MKTG 1199 NIKE Marketing Plan

Price vs Perceived Aesthetic Appeal

MKTG 1199 NIKE Marketing Plan

5.2 Positioning statement

MKTG 1199 NIKE Marketing Plan

6. Strategic Marketing Mix

MKTG 1199 NIKE Marketing Plan

Product Quality and Features

MKTG 1199 NIKE Marketing Plan

MKTG 1199 NIKE Marketing Plan

Product Style and Design

MKTG 1199 NIKE Marketing Plan

Product Life Cycle Strategies

MKTG 1199 NIKE Marketing Plan

Price Ceiling vs Price Floor

Type of market - Monopolistic Competition, Price Inelasticity

MKTG 1199 NIKE Marketing Plan

New product pricing strategy - Price Skimming

Product Mix Pricing Strategy Product line pricing

Price Adjustment Strategy - Promotional pricing

MKTG 1199 NIKE Marketing Plan

MKTG 1199 NIKE Marketing Plan

Television (TV) and Cinema Commercials

MKTG 1199 NIKE Marketing Plan

Clear Channel Billboards

MKTG 1199 NIKE Marketing Plan

Running Events and Campaigns

MKTG 1199 NIKE Marketing Plan

MKTG 1199 NIKE Marketing Plan

Media Calendar (May 2015 to April 2016)

MKTG 1199 NIKE Marketing Plan

MKTG 1199 NIKE Marketing Plan

Intensive Distribution Strategy and Channel Innovation

MKTG 1199 NIKE Marketing Plan