Driving success in the

SUBSCRIPTIO
N ECONOMY
 The world has shifted to the
. SUBSCRIPTION ECONOMY
.

6.8 billion
potential subscribers on
mobile, social and web.

80%
of customers demand new
consumption models.
Customers have changed and have
new expectations
70 percent of customers
are through the buying
cycle before they contact
you.
Customers are connected
and in control – already
informed on products,
pricing, competitors and
reviews. Subscribers
expect services to be
personalized, real-time
and memorable.
 BUSINESSES MUST
CHANGE WITH THEM.

“There is a fundamental mismatch between

how organizations
market and sell, and the way people actually
shop and buy.
Subscription-based models help businesses
grow, but also hold
companies accountable for long-term value to
their customers.”
-
 INDUSTRIES ACROSS the board are
Regardless of the industry, REINVENTING THEMSELVES
businesses are shifting to
the subscription economy.
• Consumer
• Communication
• Entertainment
• Manufacturing
• Healthcare New world
• Technology SUBSCRIBER IDENTITY RECORD
• Internet of Things
Purchase Payment history Customer
Products Refund history Moments
Local Pricing Lifetime value Usage metrics
Promotions Renewal Value Add-ons
Adjustments Aging balance
 INDUSTRIES ACROSS the board are
Regardless of the industry, REINVENTING THEMSELVES
businesses are shifting to
the subscription economy.
• Consumer MARKET EVOLUTION
• Communication
• Entertainment Product (1970s)
• Manufacturing
• Healthcare Product + Services (1990s)
• Technology
• Internet of Things Customer Centric (2000)

Relationship Centric (Today)

CUSTOMERS HAVE
CHANGED AND HAVE
NEW EXPECTATIONS

It’s the 21st century.

Businesses are shifting focus
from products to
relationships. Businesses with
subscriptions, like Adobe and
Box, are disrupting their own
industries, captivating
customers and reinventing
the way subscribers engage
with their products and
services.
Click icon to add picture

6
DRIVERS FOR
SUCCESS
Your customers want a new way to relate to you. Build
a business that embraces the subscription economy by
following these six key steps to success.
ACQUIRE

⦿Attract subscribers with

personalized packages and plans.
⦿Boost growth and increase the
value of your existing
relationships with add-ons and
promotions.
⦿Deliver a seamless introductory
experience for your customers
across mobile, web, sales,
customer services or partner.
NURTURE
• Keep your customers engaged
and
happy through every aspect of the
journey, nurturing them through
trial, sign-up, changes and renewal.
• Give customers the power and
tools to control their relationship,
move between subscription plans,
and make the changes that are right
for them.
COLLECT &
AUTOMATE
⦿Allow subscribers to pay their
way and in their local currency.
⦿Automatically generate fast and
accurate online invoices that
include a rich set of subscriber
data, usage, add-ons,
prorationsand more.
⦿Optimize your payment
gateways, allowing you to collect
cash quickly.
MEASURE

◉ Gain the right insight into your

subscribers, enabling everyone
in your organization to make
smarter decisions.
◉ Integrate subscriber data directly
into ecosystem – from CRM to
◉ ERP, keeping your sellers,
marketers, service and finance
professionals focused and
connected on subscriber results
and changes.
ITERATE

⦿Subscribers change rapidly, so

build an infrastructure that allows
your marketers, finance, and
product professionals to deliver
new approaches that drive more
value to your customers.
⦿ Iterate and test constantly to
discover the pricing and feature
strategies that truly drive lasting
customer relationships.
SCALE

◉ Map out an 18-month global

currency and payment gateway
strategy.
◉ Make sure your system is built
on a secure, scalable technology
infrastructure.
 Click icon to add picture
TURNING
CUSTOMERS
INTO
SUBSCRIBERS
 WE NOW LIVE IN A
SUBSCRIPTION ECONOMY
A GLOBAL
PHENOMENON

80% 50% 80% $420B

Of customersare Of German companies Spent on subscriptions
Of people in France are
demanding new have dealt withthe issue in the US in 20 15; up
movingaway from
consumption models of subscription from $215B in 2000 .
traditional ownership
– The Economist 2014 business models. - Credit Suisse
- Institut FrançaisD’opinion
Publique(IFOP) - IDGResearch Services
 THE WAY
PEOPLE BUY OUTCOMES
HAS Not Ownership
CHANGED
FOR GOOD CUSTOMIZATION
We have new Not Generalization
expectations
CONSTANT IMPROVEMENT
Not Planned Obsolescence
EVERY INDUSTRY IS SHIFTING
Leaders are delivering anew experience with anewkind
of businessmodel

CONSUMER
HIGH TECH EDUCATIO CLOUD SERVICES
GOODS
N

MEDI
HEALTHCARE IOT A COMMUNICATIO
N
 WE (customers) WANT THE
SUBSCRIPTION EXPERIENCE

Ongoing Memorable On-demand Anywhere, Personalized

Value Experiences Fulfillment Real-time Service
WHAT DOES THIS
MEAN FOR
COMPANIES
A NEW WAY OF
THINKING
product
subscriber

channels vs. channels

customer product + service

THIS CHANGES EVERYTHING

PRICING Unit Sales Value pricing

MARKETIN Branding Experience

G
SALES Selling Selling outcomes
products
FINANCE Unit margins Customer lifetime value

CULTURE Hit products Deep relationships

THE 9 KEYS
P A D R E
Pipeline Acquire Deploy Run Expand
Web Social DemandGen. Field Self Service TechOps Upsell Cross- sell
AR/PR Enablement Squads Partners Support
Events BusinessDev. Methodology Renewals
Products Emerging Account
Launches Enterprise Mgmt.
International Adoption
SalesEng. Training

P P M
Product People Money
PM/PMM Recruiting Finance
R&D Onboardin Operation
Docs g Training s Legal
HelpDesk
BRAND ELEMENTS
⦿Nike, Inc. is an American MNC that is engaged in NIKE, INC.
the design, development,
⦿Manufacturing and worldwide marketing and sales
of footwear, apparel, equipment, accessories and
services.
⦿Nike, originally known as blue ribbon sports
(BRS). The company initially
⦿Operated as a distributor for Japanese shoe maker
Onitsuka Tiger (now basics).
⦿In 1973, the brand Nike was named after the Greek
goddess of victory.
⦿NIKE’s business and marketing strategy, both at GLOBAL
home and abroad, help keep
POSITIONING
⦿Them at the forefront of their industry of footwear
and athletic apparel.
⦿Nike succeeds in global marketing because they
understand world markets
⦿And how to reach each audience in a personalized
approach that works for
⦿Different languages, cultures, customs, needs, and
differences.
⦿To create a distribution network that not only LOCAL
makes the product available at exclusive Nike
stores and select multi-brand outlets but also at POSITIONING
speciality stores, thereby establishing the credibility
in the industry.
⦿To build on the strength of the wide range.
⦿To create awareness and an identity for Nike
through a distinct vendor presence, an ad campaign
for key markets to communicate the USP of Nike
and a public relation campaign to give the
consumer reason to buy through rational product
benefit explanation and cool representation.
MARKETING MIX

Product Mix:
Pricing Mix:
Shoes Nike uses the value-based
Apparel pricing strategy to ensure
growth in its sales and profits.
Equipment and accessories

Distribution strategy: Promotional activities:

Retailers Advertising
Nike’s Official Online Store Sales promotions
Niketown retail outlets Public relations
 BRAND
ELEMENTS

Brand Name

Brand Symbol
Character

Symbol
Packaging

www.nike.com
NIKE+ BRAND
⦿Line of support technology products for use in EXTENSION
sports developed in partnership with apple
⦿Includes line of Nike- branded iPod designed for
running air Jordan
⦿Brand of performance sportswear and footwear
inspired by Michael Jordan
⦿Jump man logo is one of worlds most recognizable
⦿Launched the athlete-as-brand concept, carried
through into today
NIKE+ LOCAL
⦿Line of support technology products for use in POSITIONING
sports developed in partnership with apple
⦿Includes line of Nike- branded iPod designed for
running air Jordan
⦿Brand of performance sportswear and footwear
inspired by Michael Jordan
⦿Jump man logo is one of worlds most recognizable
⦿Launched the athlete-as-brand concept, carried
through into today
Nikes attempt to break into the skateboarder LOCAL
counterculture colours are often quite loud and
attention-grabbing POSITIONING
Regularly releases limited collectors edition skus to
induce completionism and compulsion to buy
NIKE GOLF
• Nikes line of high- performance golf products,
including its own line of clubs
• Not to be confused with the sub-brand of tiger
woods

NIKE BAUER
• Brand of ice and field hockey equipment formerly
owned by Nike
• Bauer was sold off in 2008
⦿Sweatshops - factories contracted CONTROVERSY
by Nike had violated minimum
wage and overtime laws, Vietnam
1996
⦿Child labour - in Cambodia and
Pakistan 1990’s
⦿Strike in china due to underpay – in
april 2014
⦿Ustin Gatlin sponsorship sprinter –
despite doping case, in march 2015
⦿Keller's brand equity model is also known as the CBBE MODEL
customer-based brand equity (cbbe) model.
⦿Within a pyramid, the model highlights four key
levels that you can work through to create a
successful brand. These four levels are:
⦿Brand identity.
⦿Brand meaning.
⦿Brand responses.
⦿Brand relationships.
⦿Within these four levels are six building blocks
that further help with brand development. These six
building blocks are salience, performance, imagery,
judgments, feelings, and resonance
1. Salience: customers consider Nike of a brand with high NIKE CBBE
quality and good design sport shoes.
2. Performance: Nike products owns high technical
MODEL
performance.
3. Imagery: people consider that Nike represents the high
status, cool style, the winner in the competitive spot
activities.
4. Judgments: consumers give high credibility to Nike due to
its high quality, good design and innovation.
5. Feelings: Nike focuses on inspiration of their consumers,
making them believe that all they need is "just do it".
6. Resonance: Nike proposes the customization services to its
customers by
7. Offering from the customized shoes to the personal video
filming of
8. Participants during the run.
Brand equity is a combination of: AAKER’S
⦿Brand awareness, BRAND
⦿Brand loyalty,
EQUITY
⦿Brand associations,
⦿Perceived quality, and
MODEL
⦿Other proprietary;
⦿Which add up to give the value provided by a product or
service.
Create a compelling tagline
AAKER’S
MODEL - NIKE
Brand loyalty Competitions Innovations

Brand awareness Event campaigns Promotions

Brand associations NikeiD Sponsorships

Perceived quality Premium pricing Dynamic with environment

Other proprietary Logo Design

BRAND
STRATEGY – SELF
ANALYSIS AND
BRANDING
Empower your target audience, especially the women
Leverage the power of social media
Use #hashtags & themes to build community
The five core dimensions are: THE BIG FIVE
• Sincerity (down-to-earth, honest, wholesome, cheerful) MODEL OF
• Excitement (daring, spirited, imaginative, up-to-date)
BRAND
• Competence (reliable, intelligent, successful)
• Sophistication (upper class, charming)
EQUITY
• Ruggedness (outdoorsy, tough)
BRAND IDENTITY PRISM
BRAND
ARCHITECTURE AND
HIERARCHY
 BRAND
Athletes
ASSOCIATION

Fitness Just Do It

NIKE
Shoes Quality

Market Sports
Leader
Personalized marketing is the ultimate form of targeted PERSONALIZE
marketing. It focuses on creating messages for individual
consumers. It is most often an automated process using D MARKETING
computer software to craft individual messages.
⦿Cause related marketing refers to a type of marketing CAUSE RELATED
involving the cooperative efforts of for-profit business and MARKETING
non profit organization for mutual benefits.
⦿The term is sometimes used more broadly to refer to any type
of marketing efforts for social and other charitable causes.
The holistic management for identifying anticipating and GREEN
satisfying the requirements of customers and society in a
profitable and sustainable way MARKETING
Find your greatness CAMPAIGNS
Nike Women India- Da Da Ding
Nike Pro-Hijab
THAT CHANGED
ITS IMAGE
 PRODUCTS
Brand Portfolio: It’s subsidiaries

Products include
Athletic footwear and
apparel, sport
equipments and
other athletic and
recreational products
BRAND
EXTENSION

Nike branded iPods

designed for running
developed in partnership
with Apple
 Athlete
Nike Brand
Shoes
Just Do it
Associations
Brand Image in a
Consumer’s mind can
easily be found out
Innovative Nike through the brand
Quality
Design associations consumers
have with it.
In case of Nike, It is its
Apparel logo, and its positioning as
Market
quality product with high
Leader
innovative design. Also,
Michael Nike is famous for its big
Jordan celebrity endorsements
the biggest being with
Michael Jordan.
Nike’s Evolution of LOGO
Nike Brand with the iconic trademark of “Just Do It” and the legendary Swoosh logo is valued
at $10.7 billion making it the most valuable brand in the sports industry

Nike’s Swoosh Symbol symbolizes the wing in the far-famed statue of the Greek goddess of
victory, Nike, who largely influenced countless brave warriors.
Nike Celebrity
Endorsements
Michael Jordan Roger Federer
Endorsement Nike Athlete
Deal: Since 1997
$60 million

Rafael Nadal
Lebron James Nike Athlete
Endorsement Since 2001
Deal:
$30 million
Tomas Berdych
Kevin
Nike Athlete
Durant
Since 2004
Endorsement Deal:
$28.5
million
John Isner
Nike Athlete
Since 2007
Nike Various Ads
 Nike Brand
Mantra
Brand Mantra is a
short 3-5 word phrase
that captures the
irrefutable essence of
the brand positioning

Emotional It consists of 3
• Authentic
Modifier modifiers capturing the
holistic view of the
Descriptive • Athletic brand like Nike has
Modifier emotional, descriptive
and the function of the
Brand • Performance brand.
Function
COMPETITORS
MARKET
SHARE
Nike Social Media Platforms

Face book
Twitter

YouTube
 •Male and Female

Brand
Domain

•Maximum
•True sportsmanship Performance
•Champion
Brand
Reflection Nike Brand
Heritage •Challenging oneself
•Aggressive •achievement

Brand
Personality

•Sophisticated
•Ruggedness
•Competence
NIKE BRAND
POSITIONING
Men, Women and Children
Target Active people who enjoy high-quality sporting goods, especially
Market footwear
World Leader: 33% Market Share, followed by Adidas

•Quality, Durability and Comfortable, Style, good reputation,

breakthrough design, technology of products, packaging, sense of
being associated with the best, #1 brand
Frame of
• Having a positive attitude when they exercise/ workout
Referenc
e
• Consistent and timely shipment of goods

• Nike is used by top athletes and teams