Marketing Plan
Marketing Plan
Marketing Plan
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Mission/Company Introduction Market And Industry Analysis Situation Analysis SWOT Analysis NOOR limited ORGANIZATIONAL PLAN Product Profile SWOT Analysis Natural Liquid Soap Competitor Target Segmentation Segmentation Strategies Market Strategies
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Positioning Strategies Distribution Strategies Pricing Strategies Advertising And Promotion Strategies Conclusion & Recommendations References
Our mission at Nike is to be a company that surpasses all others in the athletic industry. We will maintain our position by providing quality footwear, apparel and equipment to institutions and individual consumers of all ages and lifestyles. We pledge to make our products easy available worldwide through the use of retail outlets, mail order and our company web site.
Vision Statement
Nike is continuously making efforts to ensure that all employees and members of its surrounding communities are treated in a manner that is in line with our mission. .Nike has made many alliances with human rights. .Should be realistic. Should be specific. .Should fit the market environment. .Should be based on distinctive competencies. .Should be motivating.
Organization Portfolio
Establishment:
Nike Inc. is an International Company based on manufacturing a wide range of consumer goods.
Company Type:
Nike Inc. is an international company
History of Nike
Nike's Heritage:
Bill Bowerman and Phil Knight founded Nike Inc. as Blue Ribbon Sports in 1962. The partners began their relationship at the University of Oregon where Bowerman was Knights track and field coach. While attending Stanford University, Knight wrote a paper about breaking the German dominance of the U.S. athletic shoe industry with low-priced Japanese shoes. In an attempt to realize his theory, Knight visited Japan and engineered an agreement with the Onitsuka Tiger company, a manufacturer of quality athletic shoes, to be their sole distributor in the United States. In 1962, Knight received the first shipment of 200 pairs of Tiger shoes to his parents garage in Oregon. The shoes were bought by Blue Ribbon Sports (BRS), the name of the partnership between Knight and Bowerman that they formed with only $1,000 in capital. Knight peddled Tigers shoes at local track meets grossing $8,000 of sales in their first year. In 1966, Bowerman, who had previously designed shoes for his university athletes, worked with Tiger to design the Cortez running shoe. The shoe was a worldwide success for the Onitsuka Tiger Company and was sold at the first BRS store. In 1971, BRS, with creditor support, started manufacturing
their own line of shoes. Later that year, the first BRS shoe was introduced. The shoe was a soccer shoe that bore the Nike brand name, referring to the Greek Goddess of Victory, and the Swoosh trademark. A student designed the Swoosh trademark for a paltry fee of $35. The Swoosh was meant to symbolize a wing of the Greek Goddess. The 1980s were marked by the signing of Michael Jordan as a product spokesperson, revenues in excess of $1 billion, the formation of Nike International Ltd., and the "Just Do It" campaign. Nike also expanded its product line to include specialty apparel for a variety of sports. In 1990, Nike surpassed the $2 billion mark in consolidated revenue with 5,300 employees worldwide. In addition, we opened the Nike World Campus in Beaverton, Oregon. In 1991, Nike pushed revenues to $3 billion, up from $2 billion the prior year. This mark would continue to grow throughout the 90s, with revenues in 1999 reaching $8.8 billion. These revenues grew based on improvements in shoe technology and successful marketing campaigns. International revenues fueled a great portion of this growth with an 80% increase in 1991 from the prior year. In 1992 international revenues topped $1 billion for the first time and accounted for over one-third of our total revenues. Such growth continued throughout the 1990's as we continued to focus our marketing efforts on major sporting events like the World Cup, and the next generation of celebrity endorsers, such as Tiger Woods, Lance Armstrong, and the players of women's professional basketball (WNBA). At the end of the 90s, Nikes goal, as stated in our company web site, is to become a truly global brand.
BRANDS
* Nike Basketball * Nike+ * NikeTown * Nike Football* Jordan Brand*
Nike products
Advantages
.Nike will able to improve their performance in searching new design and styles of shoes. .Customers will have a lot of choice in making selection depends on their wants. .Nike will improve their company and brand image at the same time expand their market share.
Disadvantages
Customer reaction
* They will get the latest design of shoes. * A lot of choice in making selection depends on their prefer. * Customers will find the Nike shoes are trendy. * In contras sometimes Customer maybe feel fed up because they cant follow the changing of Nike shoes. * Not all the customers can follow the changing of Nike.
Swot Analysis
STRENGTHS:
*Strong and meaningful response to labour criticism.
*High quality products and good overall reputation. *Phil nights management and leadership. *Brand recognition and effective marketing.
WEAKNESSES:
*Poor communication of labour practices. *Insufficient line of affordable shoes. *Uniformed factory labour.
OPPORTUNITIES:
THREATS:
*Growing competition.
Company Analysis
Board of directors-Strength
Nikes board of directors consists of management directors and independent directors the combination of these two types of directors
benefits Nike in that there is a presence of those directly involve with nike as well as others indirectly who brings outside experience. Nikes board would be classified as an oversight board, playing an active role with regards to management
The average age of Nikes board is 62 the youngest member being 49 and oldest member being 79.this constitutes a possible weakness in that ther is a lack of younger members of board who could serve to bring a new perspective to the company and assist in achieving Nikes goal
Board of directors
*Thomas E,Clark
(President and operating officer,Nike,inc.,Beaverton).
*Jill k,Conway
(Visiting Scholar Masachusetts Institute of Technology,Bostan).
*Richard K, Donahue
(Vice Chairman of the board Lowell Newberg).
*Philip H knight
(Chairman of the board and chief executive officer ,Nike, Inc..,Beaverton, OR)
Emerging competitors:
*Both Nike.com and Adidas have strong positions in the footwear and apparel industry. *Integrating e-business to its existing line of business is a key advantage to both companies relative to its competitors. *For Nike, to overcome the potential threats, they must continue to be innovative and explore opportunities globally.
*Furthermore, Nike must focus their energy towards reducing the channel conflict caused by the introduction of e-commerce to Nike's strategy. *Nike.com must balance out its efforts to reassure traditional retailers while expanding its own line of business through e-commerce. *Very similar to Nike, for Adidas to overcome some of the potential threats they must continue to improve their strategic position in the industry by increasing their e-commerce reach to the global markets. *For both companies, it's important to increase the market "pie" rather than increase their market share away from their retailers.
PRODUCT PROFILE
Footwear
Equipment
Apparel
*Hardwear *Tops/polo *Jersey *Jackets *Shorts *Shocks
Club Gear
*Club Jerseys like Man U
Advertising Strategy
*Sometimes dont even mention the companys name featuring instead only the swoosh logo.
*Making new contracts with sportsmen. *Collaboration ads with another strong branded product, such as Apple iPod.
Economies of Scale
Brand/Image
*Ability to charge premium price by establishing An image. *Access to new/different markets. * Premium product placement in retail leading to Higher sales. * Image and celebrity endorsements create Hopes/dreams/emotional attachment to product.
Nikes PACKAGING
Curr
ent
*Nikes shoes have always come in a standard general release Nike box. With brand-mate getting some special boxes for his last few shoes, We gave you a sneak peek of the new.
tu
*Nikes target market for their shoes ,clothes and other accessories are males and females between 30 and 35 years old.
International market.
*Nike disburses TV ads during professional and college sports prime-time programs, and late night TV programs.
events,
*Nikes products are viewed as higher quality and command higher prices
than its competitors, sometimes consumers are not agreed to this line of thinking.
*To substantiate its high quality/high price Nike is placing emphasis on the latest technology.
*In the past, Nike has overlooked the mid to lower price point products,
which could be a possible weakness too.
*Markiting objectives
Market Needs
Product attributes influencing purchase decision: Quality, design and cost effectiveness.
Market trends
The Nikes market has been most affected by the recent sky rocketing price of Reebok, which is its competitor in the market. This has caused the average price of Nikes to increases by 20% - 25% to.
SEGMENTATION STRATEGY
o Psychographics Personality: introverted, extroverted, compulsive, ambitious, outgoing. Lifestyle: active, adventurous, health conscious, self-aware.
According to the data collected by the Faisalabad , there are 40000 women and men within our target market.
Positioning Strategy
Competitive Analysis
o Athletic Clothing
Lululemon Adidas Russell Athletic
o Athletic footwears:
Reebok Adidas
Product Strategy
Type of Product:
o Name of Product:
Nike TruFit Maternity.
o Features:
.Customized fit .High quality material .Durable .Comfortable .Affordable
Pricing Strategy
o :
.Walking / Jogging: Rs.3200-6400 (Pants) .Yoga / Stretching: Rs.3200-6400 (Pants) .Tank / Short Sleeve / Long Sleeve / Sleeveless Tops: Rs.2000-3000 .Sports Bras: Rs.2500-3500 .Causal Wear Pants and Tops: $40 - $110 (Pants) Rs.2000-4000 (Tops).
Media Planning
Media Strategy
Reach/Frequency: .Reach 90% awareness in the target market four times over a four week period during the 14 months of the media plan .The reach goal is also consistent with the communications objectives. .achieving 90% awareness set as advertising objective
Continue our improvement in stockholders' return on equity to achieve a 20.0% return in 2011. This would be an increase of almost 6.5% from 2006.This would surpass our 1997 record high.
The following are Nike Inc.'s short-term corporate objectives for fiscal year 2000:
o
Increase net income to $550 million by the end of fiscal year 2000 in order to reach our long-term goals of improved return on equity. .This 22% increase from 1999 is realistic in light of combined 1st & 2nd Quarter income already 32% higher compared to the same time last year. .Recover the market price of our stock from its 52-week low of $26.50 per share on February 8, 2000, to a value that approximates its 52-week average of $50 per share.
EXECUTIVE SUMMARY
Nike Inc. was founded in 1962 by Bill Bowerman and Phil Knight as a partnership under the name, Blue Ribbon Sports. Today in 2011, Nike Inc. not only manufactures and distributes athletic shoes at every marketable price point to a global market, but over 40% of our sales come from athletic apparel, sports equipment, and subsidiary ventures. Nike maintains traditional and non-traditional distribution channels in more than 100 countries targeting its primary market regions: United States, Europe, Asia Pacific, and the Americas (not including the United States). We utilize over 20,000 retailers, Nike factory stores, Nike stores, NikeTowns, Cole Haan stores, and internet-based Web sites to sell our sports and leisure products. We dominate sales in the athletic footwear industry with a 33% global market share. Nike Inc. has been able to attain this premier position through "quality production, innovative products, and aggressive marketing." As a result, for the fiscal year end 1999, Nike's 20,700 employees generated almost $8.8 billion in revenue.1
CONCLUSION
Nike, Inc. is a company rooted in competition. From equipping athletes with the finest sports equipment in the world to continuously improving our own financial performance, Nike dominates its competitors. Nike still operates on this philosophy today. It is one that has helped athletes and stakeholders alike to realize athletic and financial greatness. Despite a changing marketplace for athletic footwear, we will continue to expand our product lines and marketing reach to become a more powerful global brand.