IMC of nike+plus

Embed Size (px)

Citation preview

  • 8/7/2019 IMC of nike+plus

    1/29

    TERM PAPERMGT[962]

    TOPIC:-IMC PLAN OF NIKE PLUS

    SUBMITTED BY:-NAME:-SHOYAB SIDDIQUEE

    ROLL NO:-44

    SECTION:-SE131

    SUBMITTED TO:-

    MISS.KANIKA JHAMB

  • 8/7/2019 IMC of nike+plus

    2/29

    IMC Nike Plus

    Overview

    Nike was founded by a desire to strive for the best. In 1955 Phil Knight was an athleterunning track for Bill Bowerman, and together they formed a powerful combination. After

    completing his undergraduate work at Oregon Mr. Knight went on to graduate sch ool at

    Stanford University to obtain an MBA. While at Stanford he wrote a paper on how one

    could outsource the production of running shoes to Japan and compete with the reputable

    brands already in the industry. Eventually Knight found a distributor and attempted to sell

    to Bowerman, his former college track coach. Mr. Bowerman had been tinkering with

    running shoes in the past and wanted to partner with Knight. In 1964, Blue Ribbon Sports

    (BRS) was founded with a $500 investment by each and an order of 300 pairs of shoes.

    The first full-time BRS employee, Jeff Johnson, created the first marketing materials for BRSand also developed the name Nike. At around the same time, Knight and Bowerman

    decided to take a different direction from being a footwear distributor and primarily focus

    on designing and manufacturing their own brand of athletic shoes (www.nikebiz.com).

    When they decided to launch the new Nike line they realized that having an athlete endorse

    the shoes would provide unique exposure. Nike sought out Steve Prefontaine who ran

    track for Bowerman at University of Oregon. Prefontaine already had a tremendous fan

    following and had never lost a race over a mile at Oregons home track while in college.

    Unfortunately, Prefontaine was involved in a fatal car accident at the age of 24.

    In the early 80s Nike enlisted the assistance of Wieden + Kennedy who developed an

    Evolution campaign. This campaign reinforced Nikes commitment to runners by showing

    the importance they place on innova tions to shoes. It also started a creative partnership

    that would see both companies grow extraordinarily.

  • 8/7/2019 IMC of nike+plus

    3/29

    By 1980 Nike had completed an

    IPO and introduced their Nike Air line of footwear. The next athlete enlisted to endorse

    Nike was Michael Jordan. David Falk, Jordans agent, was evaluating offers from bigger

    shoe companies like Converse and Adidas at the time that Nike also decided to make an

    offer. Though the Nike bid was lower, Falk liked the idea of receiving a percentage ofrevenue for the Jordan shoe line and decided on Nike. The shoes were a tremendous

    success paved the way for the creation of Jordans own brand Jumpman that is still

    extraordinarily popular today years after Jordans retirement from the NBA.Using Jordan as

    a catalyst for further athlete endorsement, the whole sports industry followed suit with

    marketing campaigns featuring professional athletes. Throughout the 80s and 90s Nike

    ventured into most every category of sport. Tiger Woods was the next landmark athlete for

    Nike. This partnership once again had high correlation in values from the standpoint of

    both Nike and Woods.By 2000, Nike had continued to heavily endorse high profile athletes

    as well as gaining several teams sponsorships. Big name athletes like L ance Armstrong,

    Tiger Woods, and LeBron James led the way for Nike into the new millennium.

  • 8/7/2019 IMC of nike+plus

    4/29

    In 2006 Nike

    launched the campaign for their Nike Plus line. Nike Plus was an innovative program that

    Nike developed as a new communication method to reach i ts customers. One of the goals

    for Nike Plus was to combine sports and music. It also helped to reestablish a connection to

    the serious runner, as it included several features that helped to track important workout

    information for runners. Another objec tive was to drive revenue throughout the runningdivision of Nike. Since runners vary in their levels of performance and athleticism Nike Plus

    products targeted a broad range of runners from the geeked-out marathoners to everyday

    fitness joggers (R/GA).

    The Nike Plus line has changed hands between advertising agencies over the years. In 2007

    Nike switched the Plus line from RG/A, who created nikeplus.com, to Crispin Porter +

    Bogusky for the advertising of Nike Plus and other product lines. On May 22, 2 008 Nike

    switched the Plus line to Wieden + Kennedy, the original advertising agency that created the

    Evolution campaign for Nike years before.

    Situational Analysis

    To examine the Nike Plus line we will begin by looking at the internal factors regardin g

    Nikes promotions capabilities and history, in addition to looking at the product itself. Then

    we will look into the external factors specifically analyzing the customers, competition, and

    environment.When looking at Nikes extensive capabilities for pr omotion, it is easy to

    imagine that they had an extensive budget for the initial Nike Plus launch in 2006. If Nike

    chooses to develop a new campaign, especially in a core area like running, it is going to

    make sure and back it with sufficient funds and resources. Nike not only has its internal

    team, as we discussed earlier they also work with top advertising agencies. Onecomponent of internal analysis is to evaluate the successes and/or failures of previous

    campaigns. Nikes history shows a great deal of success both through their products and

    advertising campaigns. In addition, Nike has a strong brand image throughout their industry

    with broad global appeal.The running shoe market, an external factor has also evolved along

    with Nike as a company. Adidas was a major player prior to Nike entering the market.

    Currently, there are several primary players within the athletic shoe industry. Nikes direct

  • 8/7/2019 IMC of nike+plus

    5/29

    competition includes brands like Adidas with similar marketing strategies in that they utilize

    athlete endorsements.

    Since 2005, Adidas has also had a partnership with Polar who is a company with a strong

    reputation in the heart rate monitor industry .In addition, there are other competitive

    companies like New Balance who specifically promotes its non use of professional athletesin advertising. The newest and possibly most threatening company is Under Armour. Two

    months ago, the Baltimore Business Journal reported Under Armour will be entering the

    running show industry in the first half of 2009. This entrance by Under Armour will cause

    several companies to alter or revaluate their 2009 campaigns if they have not already done

    so.

    With their Nike Plus line of products Nike was able to see the market opportunity to provide

    technology with their running products. Though Adidas had a program to do this previously,

    Nike was seeking to alter the entire running experien ce. Nike partnered with Apple which

    is a company of similar strong brand power and recognition in their respective industry. TheNike Plus line hoped to reach a broad range of consumers through running and innovative

    technology to ultimately improve the running experience with features like automatically

    sending workout data to the web. Nike and Apple were both able to leverage their s trong

    brand identities to form a competitive advantage of brand power with Nike Plus. This took

    aspects of the running shoe technology from Nike and combined that with Apples iPod

    which dominated the MP3 market.

    The distribution channels for Nike Plus included the broad array of channels available for

    existing Nike products worldwide, in addition to including electronic products being

    available on Apple.com and in Apple retail stores. NikeTown stores in a few major cities

    featured high profile athletes like Mariano Rivera, Ben Gordon, and Lindsey Jacobellis

    (Olympic snowboarder). This promotional part of the marketing mix was consistent with

    Nikes previous utilization of athletes as endorsers.

    The products initially launched in the Nike Plus campai gn included six types of running shoes

    and the Nike+ iPod Sport Kit. Products were available at Nike.com, NikeTown &

    NikeWomen stores, as well as some retail stores. The initial prices at the time of the

    campaign

    launch in 2006 are listed below:

    Nike + iPod Sport Kit - $29Nike + enabled footwear - $80 to $1007 Positioning and

    BrandingOne approach to evaluate the positioning of Nike Plus is to analyze their image

    relative to competitors. As discussed previously, Nike has several overall competitors in th e

    running industry, and new ones on the verge of entering. However, the Nike Plus line of

    products in itself has very few direct competitors with the scope of services it has to offer.

  • 8/7/2019 IMC of nike+plus

    6/29

    The primary competitor is Adidas based on their partnership with Polar, their history, and

    their potential budget. The budget for Adidas is likely to be smaller than what is available

    toNike, and it will probably take an innovator to directly compete with Nike Plus. Looking at

    the customer perceptions of the competitors you cannot find one with as strong a brand

    image and association as Nike and Apple. In their respective industries each definitely has

    strong competitors, but with their unique combinatio n of running, strong brand images,

    technology, and music, Nike Plus is unmatched. Therefore potential customers are unlikely

    to view competitors in the same regard that they view Nike Plus. Apple has a strong hold of

    their market for the iPod and that has transferred over into the Nike Plus campaign, since

    consumers overwhelminglyprefer the iPod over the competitors in that particular market.

    Nike took a position to target a broad segment with an undifferentiated marketing

    approach. There were several segments within the overall Nike Plus campaign, but the

    message was the same to each of these target demographics. Nike was particularly

    interested in marketing to avid runners to gain back credibility with serious runners, yet

    they also wanted to appeal to more casual runners as well as people who were new torunning. The broad range of segments is probably the best approach in the long run to

    appeal to the largest market. This also helps to play towards the overall theme of the Nike

    Plus campaign integrated marketing communications plan, which is to drive revenues for

    Nike Plus products.

    The broad range of resources at the disposal for Nike and Apple for the Plus program

    provides sufficient resources to achieve a successful campaign. The competiti on facing Nike

    with respect to their Nike Plus line of products is relatively weak at the moment. The

    current positioning of the strategy is working, but with limited competition. The position

    has been moving toward more involvement by the consumer. The recent Nike+ HumanRace 10K not only reestablishes a connection with the consumer, but goes one step further

    to have a worldwide reach. This shows that Nike was not content and was monitoring their

    position by creating a new and innovative way for the co nsumer to experience running.

    Challenges

    Our greatest challenge in 2000 will be to maintain the operational and financial initiatives weworked so hard to implement in 1998 and 1999. We must maintain our inventory levels lowenough that will allow us to adapt to quickly changing market trends. Financially, we mustremain conservative in our cost structure. Cuts to operating expenses of almost $200 million

    this past year demonstrated that we are in a position to be nimble in light of our industry-dominating size. With the gradual economic recovery in the Asia Pacific region, we cancapitalize on customers who are financially stronger. Our sponsorship of the 2000 OlympicGames in Sydney, Australia, and the 2002 World Cup in Japan and Korea will be the start ofmany opportunities to bring sports events into the mainstream for regional and globalmarkets. With added exposure, we are challenged to respond to a market demand forfashionable athletic footwear and apparel. In this quest, we will succeed if we keep qualityand performance at the core of our business.

  • 8/7/2019 IMC of nike+plus

    7/29

    The Internet is a rapidly changing medium. As the first company in our industry to offer e-commerce capabilities, we must proceed with caution and stealth in order to select an

    enduring strategy that will complement our existing distribution channels.

    HISTORY

    Bill Bowerman and Phil Knight founded Nike Inc. as Blue Ribbon Sports in 1962. Thepartners began their relationship at the University of Oregon where Bowerman was Knightstrack 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 Japaneseshoes. In an attempt to realize his theory, Knight visited Japan and engineered an agreementwith the Onitsuka Tiger company, a manufacturer of quality athletic shoes, to be their soledistributor in the United States.

    In 1962, Knight received the first shipment of 200 pairs ofTiger shoes to his parents garagein 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 peddledTigers 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 Tigerto design the Cortez running shoe. The shoe was a worldwide success for the Onitsuka TigerCompany and was sold at the first BRS store. In 1971, BRS, with creditor support, startedmanufacturing 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 ofVictory, and the Swoosh trademark. A student designed the Swoosh trademark for a paltryfee of $35. The Swoosh was meant to symbolize a wing of the Greek Goddess.

    1972 marked the breakup of the BRS/Tiger relationship. BRS soon changed its name to Nike,

    Inc. and debuted itself at the 1972 Olympic trials. In 1973, Steve Prefontaine was the firstprominent track star to wear Nike shoes. The late 70s and early 80s also saw John McEnroe,Carl Lewis, and Joan Benoit sporting Nike shoes. Nike popularity grew so much that in 1979they claimed 50% of the U.S. running market. A year later with 2,700 employees, Nike went

    public selling 2 million shares on the New York Stock Exchange.

    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 ofsports. In 1990, Nike surpassed the $2 billion mark in consolidated revenue with 5,300employees 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 markwould 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 marketingcampaigns. 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 timeand 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 theWorld Cup, and the next generation of celebrity endorsers, such as Tiger Woods, Lance

  • 8/7/2019 IMC of nike+plus

    8/29

    Armstrong, and the players of women's professional basketball (WNBA). At the end of the90s, Nikes goal, as stated in our company web site, is to become a truly global brand.

    PROFILEOFTHE CEO

    Phillip H. Knight, Chairman and Chief Executive Officer, is the co-founder of Nike, Inc. Hehas been the driving force behind our company's success since its inception in 1964 under thename Blue Ribbon Sports. Knight is 61 years of age and holds an undergraduate degree fromthe University of Oregon and an MBA from Stanford University. Knight practiced as a CPAand taught at Portland State University prior to founding the company known today as Nike.He has been an innovative visionary in the industry of athletic footwear and apparel. Hisefforts have helped to establish Nike as an industry leader in both national and internationalmarkets. Knight's managerial mode is one that is characterized by strategic planning. Thismode is representative of an open-minded CEO, one willing to take calculated risks and makeconservative decisions based on careful analysis of external and internal environments.Knight's decision-making style favors the participative approach. He is not hesitant to makeunilateral decisions, but prefers to look to his trusted management team for their insight andideas before choosing a course of action.

    PROFILEOFTHE COMPETITOR

    Reebok, in terms of their products, is not entirely different from Nike. Reebok is involved inthe design and marketing of both athletic and non-athletic footwear and apparel, as well asother various fitness projects. Reeboks market share is a distant third in the footwearindustry at 11.2% (compared to 30.4% and 15.5% for Nike and Adidas respectively).

    Reeboks financial position has been gradually slipping for a number of years. This is evidentin their declining stock price, which has fallen by over 80 percent in the last four years.Reeboks financial woes are illustrated in their declining net sales. Reeboks net salesdeclined 9% during the first three-quarters of fiscal year 1999. During that same period, netincome declined 17%. Taking these and other factors into account leaves Reeboks currentfinancial position, as a whole, looking bleak.

    PROFILEOFTHEINDUSTRY

    Industry Size

    In 1998, Americans spent approximately $38 billion to purchase more than 1.1 billion pairsof shoes. The wholesale value of athletic shoes for the US market totaled $8.7 billion in 1998down 8.5% from the year before. According to the Sporting Goods ManufacturersAssociation, athletic footwear accounts for almost 35% of all footwear purchases.

    In general, consumers are spending less worldwide for athletic footwear. The currentdomestic industry focus is on casual and comfortable shoes. Although athletic footwear salesappear to be recovering, demand is still leaning toward the "brown shoe" casual footwear

  • 8/7/2019 IMC of nike+plus

    9/29

    with a comfortable and rugged design. This switch is due to the increasing number ofworkplaces adopting casual dress codes.

    Industry Profitability

    The athletic footwear industry is a challenging and saturated market. Intense competition,

    fashion trends, and price conscious consumers have slowed growth in this industry.Manufacturers are combating sluggish sales with radical new styles, along with offering morestyles at lower price points. Companies are looking for new ways to boost sales bycapitalizing on direct Internet sales to consumers. Many companies are also increasing

    profitability by transferring production to cheaper offshore facilities.

    This segment has reached a point of maturity in the domestic market and can look forward toonly modest sales growth for the long term. However, sales are improving slightly, especiallyin the areas of running shoes, cross-trainers and basketball shoes. Therefore, companies withstrong brands will increasingly turn to international markets for growth.

    Industry

    Seasonal

    ity

    Overall, sales in the athletic footwear industry remain stable throughout the year. The globalvariance in our market balances the seasonal fluctuations. Typical trends in seasonalityappear for spring apparel, the back-to-school season, and the Christmas holiday season.

    Industry Cyclicality

    In fiscal year 1999, the economy was relatively favorable for footwear manufacturers. Thefootwear industry and its profitability are closely tied to economic cycles. Modest inflation,

    low unemployment, and a booming stock market will all contribute to healthy consumerspending.

    The theory behind the slowdown in sales is that growth in athletic footwear and apparel iscyclically sensitive to the Olympics. Historically, years of the Olympic Games havedemonstrated surges in growth followed by difficult sales periods. The outlook for increasedsales trends is optimistic due to the upcoming Olympic Games slated for this year. Nike canalso look forward to a boost in demand from the World Cup events.

    Environmental Analysis

    Internal Strength

    Nikes management analyzes its internal environment and makes decisions based on thatanalysis. Because of Nikes marketing research, the company has decided to revamp itsapparel division to be more fashion savvy. As a result of product and pricing research, Nike

    has decided to continue to focus on the high end market while increasing its market share inthe middle and low price ranges in an attempt to broaden Nikes product spectrum.

    External - Weakness

  • 8/7/2019 IMC of nike+plus

    10/29

    Nikes failure to foresee problems in relation to labor and factory conditions at productionlocations has resulted in bad publicity and declining sales as society and consumers call for

    more "socially responsible" companies.

    Industry Entry and Exit Barriers

    Entry Barriers

    The athletic footwear industry is a very competitive and mature market. The leaders of thisindustry are very well established. Leaders like Nike and Reebok have made the industrywhat it is today. Consequently, long-time competitors like Saucony and K-Swiss have beenstruggling for years just to keep their brands alive. This cutthroat environment has hinderedthe entry of new competitors.

    Economies of scale also contribute to the lack of newcomers into this market. In order to

    have an edge over the leaders, companies must be able to compete at all levels such asreasonable pricing, efficient production, and high product quality. These things are difficultto achieve without the resources of an established manufacturer.

    Another key barrier to entry is the access of traditional distribution channels. When combingthe shelves at stores like Sports Authority and FootLocker, it is evident that the leadersdominate the shelves. Lesser-known brands are viewed by retailers as being too risky toreplace an established brand name like Nike or Reebok on the shelf.

    These walls seem to be breaking down with the help of the Internet. The costs of overheadthat come along with traditional brick and mortar retail distributors are being significantlydiminished. New entrants are now able to slide into markets without these high startup costs,

    making it more profitable to begin production.

    Exit Barriers

    When a company decides to exit from this industry it must be aware of things such asindebtedness and its ability to meet those obligations. A company must also be cognizant oflawsuits filed by its stakeholders and claims made on any residual assets.

    TOP COMPETITORANALYSIS

    Distinctive Competency - Marketing (Consumer Loyalty)

    Despite the tough times Reebok has recently come upon, reasons for optimism remain.Reebok has managed to hold the loyalty of a large portion of the industrys female consumersmarket. While Reeboks spending on advertising has fluctuated, individual product designshave come and gone, female consumers have, as a group, remained loyal to Reebok and their

    products.

    Can Reebok use this distinctive competency to inflict damage on Nike?

  • 8/7/2019 IMC of nike+plus

    11/29

    Yes, Reebok can use their distinctive competency to wound our company. If Reebok canexpand their appeal to incorporate female consumers who are not currently Reebok

    customers, Reebok could expand their market share and take customers away from Nikeproducts.

    Can Nike protect itself against this threat?

    Yes, we can protect our market share among female consumers within the industry bytargeting some of our promotions to female consumers. Nikes sponsorship of the 1999Womens World Cup SoccerTournament was a great example of how Nike is appealing tofemale athletes.

    Competitors Key Weakness Marketing (Advertising/Promotion)

    The leading cause of Reeboks recent tumbles stemmed from problems relating to poormarketing. Reeboks shortcoming in the area of marketing is their key weakness. While otherathletic shoe companies bombard the airwaves with commercials pushing their product lines,Reebok remains out of sight and out of mind. While Reeboks competitors are known by

    familiar slogans like Nike's "Just Do It," Reeboks, "Are You Feeling It," does not equate totheir brand name in the eyes of most consumers.

    COMPANY ANALYSIS

    Strengths and Weaknesses of the Corporate/Business Level

    Strategic Managers

    Board of Directors - Strength

    Nikes board of directors consists of both management directors and independent directors.

    The combination of these two types of directors benefits Nike in that there is a presence ofthose directly involved with Nike as well as others indirectly involved who bring outsideexperience, provide another frame of reference and can assist the overall board in thinking"outside the box." Nikes board would be classified as an oversight board, playing an activerole with regards to managements decisions in the area of strategy formulation.

    Board ofDirectors - Weakness

    The average age of Nikes board is 62, the youngest member being 49 and oldest being 79.This constitutes a possible weakness in that there is a lack of younger members of the boardwho could serve to bring a new perspective to the company and assist in achieving Nikesgoals.

  • 8/7/2019 IMC of nike+plus

    12/29

    Return on Investment

    Return on investment for IMC campaigns can be is a very controversial topic, and there are

    varying approaches to measuring it. No matter which method is used, it is very difficult to

    becompletely accurate. If one looks at sales alone it is not entirely accurate, because there

    are other intangible factors. By taking an objective and task method, a start would be to

    isolate an objective of the Nike Plus c ampaign, such as reaching a broad range of consumers

    across various segments within the running industry. One of the tasks could be to drive

    traffic to the website to gain basic demographic information and collect consumer email

    addresses. This could then be used for specific targeted ads that might even vary across all

    Nike products depending on the consumer. The expenditure could be an online viral

    campaign and email list blast to promote a new Nike Plus Point program. The program

    would offer points for purchases, and participation in events like the Nike+ Human Race

    10K. One helpful piece of data to measure could also be the additional pass -along to others.Nike Plus would offer customers points also for getting friends to sign up for the program.

    This opt-in for emails would give the complete range of Nike products to cross-sell.

    Once the point program was in place and users registered there could be additional areas to

    review. Some of these would include the direct sales numbers from the program c ompared

    to the cost of the campaign. This would be a simple analysis of the numbers, but would not

    be inclusive of the whole campaign. We could also try to track the exposures and

    registration from customers passing the promotion along to friends. Furth ermore, there

    would have to be an analysis of the overall complete customer exposures. This would be

    throughout different retailstores like NikeTown, NikeWomen stores, and would includeselected retailers. After that the objectives would need to be reeva luated. This process

    would be complex as well because all objectives would have to be broken out separately

    and looked at in the same process that we just used.

    The primary figures to assist in measuring the overall effectiveness for the Nike Plus IMC

    campaign would ultimately involve measuring total sales of Nike Plus products prior to and

    after specific campaigns. Nike could also measure registrations and participation for their

    Nike Plus Human Race 10K, Apple iTunes sales, nikeplus.com website views and

    registrations, and media exposure for their various public relations and marketing programs.

    However, whatever measures are chosen to determine return on investment for the NikePlus integrated marketing communications plan are unlikely to be exact me asures of the

    true value of the campaign.

    IMC Program: Nike Plus

  • 8/7/2019 IMC of nike+plus

    13/29

    Nike has created and is currently implementing an extensive integrated marketing

    communication plan for their Nike Plus line of products and apparel. Nike is utilizing both

    traditional mass media advertising as well as online tools in constructing a comprehensive

    IMC program for NIKE Plus. This program succeeds in constructing synergies across multiple

    marketing and advertising platforms to communicate a unified message to their potential

    customer base. The main objective of the integrated marketing communications plan for

    Nike Plus is to move the sales needle for Nike running shoes, Nike running apparel, and Nike

    Plus electronic running accessories. Nike is also trying change the perce ption that their

    running shoes are not meant for serious runners. There is a commonly held perception in

    the running community that Nike running shoes are not technologically engineered for

    experienced and dedicated runners. A successful IMC campaign f or Nike Plus will thus help

    to change the perception of the Nike Running brand and increase their market share at the

    expense of their rivals.

    In addition to selling their Nike Plus branded products Nike is also trying to generate interest

    and registrations for their Nike Plus Human 10K Race. The Human 10K Race is

    aninternational race that is being held in 25 cities worldwide on August 31, 2008. As an

  • 8/7/2019 IMC of nike+plus

    14/29

    event the race itself is a part of the

    IMC program surrounding

    Nike Plus, while also serving as a fundraiser for various charitable causes. Many elements of

    Nike Plus current advertising is promoting the race in conjunction with their Nike Plus

    products. Furthermore, another objective of the Nike Plus IMC campaign is to promote

    Nikes partnership with Apple and iTunes. The original Nike Plus Sport Kit includes an

    electronic transmitter co-branded with the Nike Plus logo and the Apple logo which runs in

    sync with Apples iPod Nano, and this product is still being sold and promoted today. In fact

    another component of the Nike Plus integrated marketing communication plan is theirsynergy with Apple and the resulting advertising and promotion that they receive from

    Apples website and Apples iTunes store. In addition to these benefits Nike Plus products

    are available for sale through Apples on-line store and retail locations. Therefore, Nike

    has a variety of objectives that they are trying to achieve with the integrated marketing

    communications plan for their Nike Plus line of products. While Nikes primary goal is to

    create sales of their Nike Plus branded running products, Nike is also trying to strengthen

  • 8/7/2019 IMC of nike+plus

    15/29

    the Nike Plus brand within the realm of the overall Nike corporation. The company is trying

    to achieve this goal through the implementation of a wide ranging IMC plan which focuses

    on interaction between consumers and Nike Plus products. Since Nike Plus products are

    being primarily marketed towards dedicated runners, and because the products are

    predicated on activity by the user, the Nike plus IMC campaign itself revolves around active

    marketing elements. Examples of this, which will be explored further, include the Nike Plus

    Human 10K Race, the Nike Plus website, and the Nike affiliation with Apple and iTunes. As

    IMC evolves, it is being recognized as a business process that helps companies identify the

    most appropriate and effective methods for communicating and building relationships with

    customers and stakeholders(Belch and Belch 12). With respect to this concept Nike is

    trying to make Nike Plus products a part of active peoples lifestyles, thus creating a high

    involvement product and IMC campaign that will strengthen the Nike Plus brand image and

    result in long term dedicated consumers and sustained product sales.

    Advertising

    The Nike Plus integrated marketing campaign involves extensive advertising across multiple

    media platforms. These include: television commercials, print media, radio advertisements,

    and internet banner ads. Nike also advertises their Nike Plus line of produc ts by featuring

    them prominently in their Nike Town stores with their own dedicated section, frequently

    located in a primary spot of the stores. Nike also has relationships with sporting goods

    stores such as Dicks and The Sports Authority, and these retailers set up dedicated sections

    and displays for Nike Plus products. Dicks is even currently running an advertisement with

    Lance Armstrong to promote their stores, the Lance Armstrong Foundation and LiveStrong

    branded products, the Human Race 10K, and Ni ke Plus. Historically Nike Plus

    advertisements have focused on the running and fitness component of the product, with an

    additional emphasis on the technological advantages of their product and relationship with

    Apple and the iPod. Past Nike Plus televis ion commercials and print media advertisements

    have featured normal people who are not celebrities.

    During television commercials the actors are either shown running themselves, or the

    viewer is presented with a first person perspective of the sights a nd sounds from the

    runners point of view. The commercials usually feature a voice over where the runner

    narrates their journey and emphasizes the difficulties and dedication that their pursuit

    requires. These spots are also often filled with contemporar y rock music to emphasize the

    iPod and musical component of the Nike Plus products. Other past television commercials

    demonstrate the technical component of Nike Plus products by showing a person running

    and allowing the viewer to listen to the digital vo ice that they will hear monitor their time

    and distance, while displaying statistics on the television screen to monitor what the runner

    sees on their iPod. These commercials also show the runners syncing their iPod with

    computers to upload their most recent running statistics after completing a run. It appears

    that the overall goal of these advertisements is to show the technological elements of the

  • 8/7/2019 IMC of nike+plus

    16/29

    Nike Plus system in addition to branding the product as a fitness tool for the average person

    and dedicated runner.

    These types of advertisements that Nike typically employed to promote their Nike Plus line

    of products appealed to consumers on an emotional level through transformational

    advertising. Transformational advertising can help differentiate a product or service bymaking the consumption experience more enjoyable by suggesting the type of experiences

    consumers might have when they consume the product or service(Belch and Belch 286).

    Nikes goal with their Nike Plus advertisements was to identify their products as a way of

    making running more enjoyable and rewarding. In addition, these advertisements

    attempted to capitalize on peoples emotions by emphasizing personal feelings such as

    pride, achievement, ambition, and actualization. Nikes goa l is to set up a transfer system

    where the consumer associates these desirable feelings of accomplishment with the Nike

    Plus products through their advertisements.

    The consumer will then associate the product with these feelings and attributes that theywish to achieve, and they will purchase Nike Plus products as a means of achieving their

    goals. Recently Nike has modified their Nike Plus advertisements to focus on the upcoming

    Nike Plus Human Race 10K. Since the race date is less than one month away, it is being held

    worldwide on August 31st, 2008, Nike appears to have shifted their entire Nike Plus

    advertising campaign to

    promoting the race. As an example,

    recent Nike Plus television commercials promote the Human Race event itself and do not

    focus on their products. Although these advertisements do emphasize the branding of the

    race through the Nike Plus title sponsorship and race coordination.

  • 8/7/2019 IMC of nike+plus

    17/29

    These advertisements have also taken a different direction because they utilize celebrities,

    discuss the charitable benefits of the race, and emphasize the worldwide collective

    elements of the event. Recently two television commercials have featured Lance Armstrong

    and rapper Kanye West in separate spots. These commercials are a noted departure from

    the previous line of advertisements because they appeal to the consumer on a rationa l and

    emotional level. These advertisements also differ from other Nike Plus commercials

    because both celebrities emphasize

    that fact that by racing you will be part of a collective worldwide group that is running to

    help charities, whereas previous Nike Plus spots had always emphasized individuality and

    self improvement. These ads do not sh ow runners, Nike Plus products, and they do not

    contain music, they simply feature the celebrity standing against a plain white back drop

    and speaking to the camera, which also presents a departure from other Nike Plus

    advertisements. Sales Promotion Strategy

    The Nike Plus integrated marketing communications plan is notable for its relative lack ofsales promotions. In this regard it appears that Nike is going against recent trends in

    advertising. Over the past two decades, however, marketers have been allocating more of

    their promotional dollars to sales promotion. There has been a steady increase in the use of

    sales

    promotion techniques to influence consumers purchase behavior (Belch and Belch 553).

    On the clearance section of Nikes website they offer a very limited number of items from

    the Nike

    Plus collection at discounts; however these items are typically from past years collections,

    and even then they are available in limited sizes. There is no evidence available that

    suggests Nike or Apple have ever offered any sales promotions around the core Nike Plus

    electronic products.

    This is possible because Nike and Apple both have strong brand identities and the Nike Plus

    system is a distinctive product co-branded by both companies, thus it is probably not

    necessary for them to offer sales promotions around the product.

    However, with the Nike Plus Human Race 10K Nike has constructed a form of sales

    promotion to entice people to sign up for the race, although they must still pay a fee to

    enter the race. Each participant that registers to run the Human Race 10K in one of thetwenty five global cities pays a $35 registration fee. In return they receive an individually

    numbered Nike Dri Fit Human Race 10K t-shirt, access to a post-race concert in their city,

    and $5 is donated to a designated charity.

    Direct Marketing Programs

  • 8/7/2019 IMC of nike+plus

    18/29

    It is unclear how much Nike relies on direct marketing efforts as part of their marketing mix

    for promoting Nike Plus products and the Nike Plus Human Race 10K. While it is unlikely

    that Nike employs telemarketing, infomercials, or television spots for direct marketing

    purposes,

    Nike Plus products are part of Nike catalogues and both Nike and Apple sen d out e-mails tocustomers in their respective databases. As an example, Apple recently sent out a mass e-

    mail to their iTunes registered customer database on July 24, 2008 entitled Gear Up for the

    Nike+ Human Race 10K. The e-mail directs potential customers to either the Nike Plus

    dedicated website or the Apple website, and it advertises the multiple synergies between

    Nike and Apple which provides a direct tie in to other elements of the Nike Plus integrated

    marketing communications plan.

    Internet/Interactive Strategy

    Internet marketing is perhaps the focal point and most utilized component of the Nike Plus

    integrated marketing communications media mix. It is a critical element for promoting as

    well as utilizing the central component of the Nike Plus p roduct category, and Nike has

    created a high level of internet interaction around Nike Plus. The primary benefit of the

    Nike Plus

    electronic system is that runners can use either an armband or Apple iPod in conjunction

    with a Nike Plus transmitter that fits into specially designed Nike running shoes to monitor

    and track their progress while running.

    After finishing a run the runner connects the armband or iPod to their computer and

    uploads their running data to a race tracking program that is available on the nikeplus.comwebsite. In order

  • 8/7/2019 IMC of nike+plus

    19/29

    to access the site a customer must create an account with Nike, and from that point forward

    they can save their data through the website. Nike also offers a wide array of training and

    tracking tools that customers can use through the nikeplus.com website which creates a

    very high level of consumer interaction with the site and frequent site visits. These

    programs include the Nike+ Coach which allows Nike Plus users to get customized training

    programs designed for their individualized goals or set specific goals to work towards in the

    future. The Nike Plus internet site also has a community feature that allows users to join

    teams and running clubs while monitoring their status against other teams and individuals

    from anywhere in the world.

    Furthermore, the Nike Plus IMC plan leverages their relationship with Apple and its iTunes

    music store to create further internet marketing efforts and interactivity amongst users.

    The iTunes music store sells a number of customized sport mixes that have been designed

    by customers, and Apple markets these mixes through the Nike Plus brand and website. For

    example, a link through the Nike Plus website entitled Gear and Music allows the user toclick on a link for sport mixes which takes the customer directly to the iTunes music store

    and presents them with a collection of songs that is specifically desig ned for runners. These

    songs are available for purchase at the rate of ninety-nine cents per song individually or as

    an entire collective mix. Like other aspects of the Nike Plus internet marketing plan this

    feature is highly interactive and customizable since the mixes are song compilations

    compiled by other Nike Plus and iTunes customers. These song mixes are even rate d and

    commented on by other users which lends an air of credibility to the product.

    In addition to the Nike Plus tracking feature and iTunes store music downloads there are a

    number of other internet and interactive components to the nikeplus.com dedicated

    website, including the ability to purchase Nike Plus products directly from various links

    through the nike.com website. The site contains a runners blog with information on

    marathons and racing events throughout the country, Olympic trials, an d updates on Nike

    sponsored runners. The blog also contains training information and a question and answer

    feature where University of Colorado middle distance running coach Jay Johnson answers

    reader submitted questions. Likewise, interested customers c an sign up for an insider

    newsletter and RSS feeds that can be accessed through iTunes. There are also dedicated

    forums that allow users to interact and communicate with the Nike+ community. These

    forums contain comments as well as questions and answers from runners throughout the

    entire world who interact through the Nike Plus website to discuss a wide range of topics.

    This extensive combination of interactive elements greatly enhances and integrates the Nike

    Plus brand and IMC campaign while also encouraging people to buy Nike Plus products in

  • 8/7/2019 IMC of nike+plus

    20/29

    order to participate in the community. The programs also drive people to both the Nike

    Plus website and the iTunes music store, and they encourage people to spend a great deal

    of time on the sites through the volume and breadth of interactive tools.

    Nike has also used internet banner ads to advertise Nike Plus products, and in conjunction

    with their current integrated marketing communications plan these banner ads have been

    used to promote the upcoming Nike Plus Human Race 10K. In sync with their overall

    marketing plan Nike has strategically placed these banner ads on websites where theyanticipate runners and athletes will see them. As an example, these include large banner

    ads placed on the homepages of both espn.com and running.net in the weeks leading up to

    the race.

    Publicity/Public Relations Programs

    In the recent past Nike has come under fire from the public and numerous consumer groups

    for their labor practices in international markets resulting, in wide ranging negative

    publicity. As a result it would seem that Nike might be more sensitive than most companies

    when trying to generate positive publicity, and recently they have implemented a charitable

    component to their Nike Plus integrated marketing campaign through the Human Race 10K.

    Nike has three primary charitable partners affiliated with the Nike Plus Human Race 10K:

    The Lance Armstrong Foundation, The World Wildlife Foundation, and The U.N. Refugee

    Agency.

    Nike is set to donate 3 million dollars to the three charities, and individual runners can

    choose which charity they would like to see their miles count towards when running. In

    unison with their IMC campaign to leverage the high interactive nature of the Nike Plus

    brand they are even involving participants with the charitable donation decision. In addition

    to this Nike is asking

  • 8/7/2019 IMC of nike+plus

    21/29

    each runner when they sign up if they would like to make a further contribution to any of

    these charities through a question on the on -line registration form. In conjunction with

    their Nike Plus integrated marketing communications program Nike has created and

    disseminated three press releases in 2008 that focused specifically on Nike Plus.

    One of the most important publics is the press . . . the sour ce of the press release can do

    certain things to improve the likelihood that the news will be disseminated, such as

    ensuring that it reaches the right target audience, making it interesting, and making it easy

    to pass along(Belch and Belch 569). Since Nike is an approximately 28 billion dollar

    company with broad international appeal to consumers, investors, and business people, it is

    likely that there press releases are highly anticipated and widely disseminated, especially in

    the sports industry. Thus, Nike should be able to generate extensive publicity through their

    carefully crafted press releases.

    The Nike Plus press releases for 2008 coincides with the launch of their new Nike Plus

    Sportbrand product, the announcement of the Nike Plus Human Race 10K, and an

    announcement that Nike Plus and Apple are working in unison with gyms across the United

    States to make their cardiovascular equipment compatible with Nike Plus products. These

    are all significant announcements, and Nike is correct in trying to generate

  • 8/7/2019 IMC of nike+plus

    22/29

    essentially free publicity through press releases for these events.

    Marketing objectives:-

    Although this is expected from a Mega brand like Nike, I am still so impressed with the

    Nike Plus campaign that I had to Blog about it.

    We are always speaking to people about thinking outside the box and understanding their

    users first before jumping on the latest and greatest technologies to win new consumers, or to

    build brands. The Nike Plus campaign focuses around runners. (talk about segmentation

    just athletes who are competitive and recreational runners).

    Athletes can go to the running section on the nike.com website. Runners purchase a Nike

    Plus running band which tracks a runners distance, time, calories etc, or they can get an iPodenabled device (called the iPod sports kit) that will do the same thing. (that other mega brand

    Apple ran right at this opportunity!)

    The Nike Plus device talks to the Nike Shoe they call it the Nike plus ready shoe which is

    built to have a tracking device that syncs with the iPod or band. Each time the athlete runs

    using the band, they can load the information from the Nike Plus Sport Band into the Nike

    runners website. The device measures time, distance, pace, calories etc.

    The website www.nike.com then tracks each run, illustrating pace and distance for you and

    comparing it to your other runs, and other runners! It tracks changes in pace and helps theathlete to train by trending their performance over time.

    Nike has created a true community of runners - all centred around the Nike brand. They also

    offer a community forum to connect with other runners around the world, and compete

    against runners. There is a race blog, uploaded photos of racers and even a 10 K race

    planned for all users called The Human Race 10 K where runners will be ranked and

    countries will compete all virtually using the data entered into the Nike Plus runners

  • 8/7/2019 IMC of nike+plus

    23/29

    website.

    Without the Nike Plus ready shoes, runners need to be creative with attaching the chip to the

    shoe. The Nike brand is associated with all points along the way from the purchase of the

    band, to the shoes and the clothing, to the website facilitating the conversation and tracking

    personal performance.

    Brilliant integrated marketing as it allows Nike to market directly and indirectly to consumers

    through the community website portal, the Race itself, and all of the products required to

    participate in the Nike Plus running community.

    At the end of the day, we all dont have the resources that Nike does to market their products

    but we can take away the following best practices that Nike applied to this initiative.

    Marketing Strategy Of Nike plus

    Nike, Inc. is a marketer of sports apparel and athletic shoes. The American manufacturer,through its marketing strategy which rests on a favourable brand image, has evolved into a

    large multinational enterprise. In keeping with the brand image is its association with the

    distinctive logo and its advertising slogan, "Just do it." In order to maintain and sustain this

    image, the company makes huge investments in advertising and brand promotion.

    Its promotional activities include agreements for product sponsorship with professional

    athletic teams, celebrity athletes, and numerous college athletic teams. Nike is involved in the

    production of goods for a wide variety of sports, competing with every sports fashion brand

    in existence. Because of the absence of any single brand that rivals the products of Nike, the

    company has no direct competitors, with the exception of German company Adidas. This has

    helped popularize the brand worldwide in all areas of sport and sports fashion.

    Event Marketing and Sponsorships

    As previously discussed in every recent facet of the Nike Plus integrated marketing

    communications plan Nike has made a concerted effort to promote their sponsorship of the

    Nike Plus Human Race 10K. In fact it appears that their entire current IMC plan for Nike Plus

    revolves around promotion of the event, and therefore it is apparent that event marketing

    is at least temporarily a primary component of the Nike Plus IMC plan.

    The Human Race 10K is large global event that is expected to attract over 1 million runnersworldwide on August 31, 2008. Nike is holding the race in twenty -five cities spanning the

    entire globe, and they are also encouraging participants who cannot make it to any of these

    cities to run in their hometown and participate by t racking their progress with Nike Plus.

    The collective and interactive nature of the event is in line with other elements of Nikes

    recent IMC program for Nike Plus. Like their interactive website, which allows runners to

    connect with and challenge other runners worldwide, the race is being promoted as a way

  • 8/7/2019 IMC of nike+plus

    24/29

    to be part of a large group. From the Nike Plus Press Release dated May 1, 2008: The Nike+

    Human Race is about inspiring and connecting a million runners worldwide, said Trevor

    Edwards, Nike Vice President for Brand and Category Management. Were offering runners

    new ways to compete and race, courses through legendary landmarks, each ending with a

    headlining musical act. Its an unprecedented way for us to bring an entirely new running

    experience to consumers around the globe. In this respect some runners may see the race

    as a form of social networking where they can meet other runners in their area or talk with

    runners anywhere in the world about the race. The press release also discusses a

    promotional element of the race; a post race concert which will be held in each major city.

    The Human Race 10K also appeals to runners through the races connection with various

    charities. The nikebiz.com website says As part of the Nike+ Human Race, runne rs will be

    able to run for a cause to help support and give back to the global community. The race

    has three designated charities: The Lance Armstrong Foundation, The World Wildlife

    Federation, and the U.N. Refugee Agency. When registering for the race on-line runners can

    select which charity they would like their miles to count toward, thus involvingparticipants in the race with the decision and creating a further emotional attachment to

    the race. In addition, a Nike television spot and promotional appearances with Lance

    Armstrong parlay his image as an athlete and celebrity with the charitable aspect of the race

    to promote Nike Plus.

    Although the Human Race 10K event has a promotional effect and a charitable component it

    is ultimately about advertising Nike Plus, selling Nike Plus products, and directing customers

    to the Nike Plus and Apple website. From the Nike + press release: Nikeplus.comwill be the

    official destination for the Nike+ Human Race and for all pre -race training needs.

    Here, runners can learn more about new training gear like the Nike Zoom Victory+, Nikes

    latest performance training shoe featuring Flywire, its lightest and strongest new footwear

    construction technology or stay motivated by checking out the latest Nike+ Sport Music

    offerings. Sport Music offers runners the best in original Training Run and Coaching Mixes

    designed specifically for treadmill and road runs. Therefore the race continues the them e

    of the integrated marketing communications plan that Nike has created for Nike Plus by

    trying to advertise and promote Nike Plus products to runners and move the sales needle.

    Viral Marketing

    Nike has seen viral marketing for the Nike Plus brand through various websites including

    YouTube. A recent search for Nike Plus on YouTube generated 402 hits, with the most

    popular video generating over 1,400,000 views. These videos take on various forms such as

    actual Nike Plus television commercials, consumer how to videos, and product reviews. One

    of the videos is even titled New Nike Plus Viral. In addition to the quantity of the videos

    and their popularity these videos appear to be well received by viewers who consistently

    rate them between four and five stars. Therefore Nike is definitely creating buzz for their

  • 8/7/2019 IMC of nike+plus

    25/29

    products and brand through viral marketing, particularly on YouTube, and the promotion of

    their brand through these mediums falls in line with other elements of their IMC plan.

    Implementation tatics:-

    Mission

    Statement

    Our mission at Nike is to be a company that surpasses all others in the athletic industry. Wewill maintain our position by providing quality footwear, apparel and equipment toinstitutions 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 ourcompany web site. Nikes management believes that our success lies in the hands of ourteammates, customers, shareholders and the communities in which we operate. We vow tokeep this in mind with the execution of every decision within our company.

    Values Statement

    Nike will focus its commitment to all stakeholders by continuing to make strides towardsbeing a company that sets the precedents in social responsibility. Nike is continuouslymaking efforts to ensure that all employees and members of its surrounding communities aretreated in a manner that is inline with our mission. Nike has made many alliances with humanrights organizations in an attempt to ensure labor rights for employees of the industryoverseas. We are committed to treating our employees with the utmost respect, which isreflected in our compensation and human resource policies. We are also committed to makingsound decisions in regards to our environment, resources, and the fight against pollution.

    Vision Statement

    At Nike, our vision is to remain the leader in our industry. We will continue to produce the

    quality products that we have provided in the past. Most importantly, we will continue tomeet the ever-changing needs of our customers, through product innovation.

    Alternative Strategic Slogan

    Nikeas always, a step ahead of the rest!

    Alternative Marketing Slogans

    y Nike, try to catch us. (Lisa)y Give yourself an edge. (Brian)y For the top athlete in all of us. (Kim)y Finish First. (Sheetal)

    ***THE WINNERSecond Place is for Losers (Dan)

    Long-Term Corporate Objectives

  • 8/7/2019 IMC of nike+plus

    26/29

    The following are Nike Inc.'s 5-Year long-term corporate objectives:

    o Continue our improvement in stockholders' return on equity to achieve a20.0% return in 2004. This would be an increase of almost 6.5% from 1999.

    o Increase earnings per share to $2.70 per diluted share by 2004 in an overalleffort to bolster the long-term resilience of our stock's value. This wouldsurpass our 1997 record high.

    Short-Term Corporate Objectives

    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 toreach our long-term goals of improved return on equity and higher EPS. This22% increase from 1999 is realistic in light of combined 1st & 2nd Quarterincome already 32% higher compared to the same time last year.

    o Recover the market price of our stock from its 52-week low of $26.50 pershare on February 8, 2000, to a value that approximates its 52-week average of$50 per share.

    Grand Strategy

    Nike Inc. can utilize the complete structured approach to select a grand strategy in carryingout the above corporate objectives. The table below concludes that focusing on productdevelopment will allow Nike to continue to build upon our founding tenant that has securedus a position that borders on leverage and maintenance within the athletic footwear, apparel,and accessories markets. Because Nike has such a strong history of effective marketing in

    key global regions, concentration is an alternate strategy. Market development is a thirdstrategy for consideration due to Nike's ability to geographically expand our productofferings. The three strategies are very closely linked. To determine which would prevail asour overriding strategic position, four evaluation criteria were weighted according to eachstrategy: distinctive competency, culture, timing, and demographics. With a total weightedscore of 4.40 product development surpasses second place, concentration, and third place,market development.

    Assessment/Recommendations

    In support of their Nike Plus line of products Nike has launched a comprehensive integrated

    marketing communications plan which utilizes a wide range of media platforms, marketing

    and advertising tools, and partnerships. As a large a nd well funded company with extensive

    marketing knowledge and resources it would be easy for Nike to simply enter each of these

    different arenas and outspend their competition in order to try and achieve success.

    However, Nike has been successful in leveraging their funding advantage to spend wisely

    and create an IMC campaign with a unified theme and far reaching implications.

  • 8/7/2019 IMC of nike+plus

    27/29

    Although Nike has taken a different direction with their recent advertising around the Nike

    Plus Human Race 10K, they are still staying true to their overall goal of branding Nike Plus as

    a tool and product for all types of runners. At each step of implementation for their

    integrated 24marketing communication plan Nike has also emphasized the interactive

    nature of their product and website which has a direct correlation to the active mindset of

    runners and the action of running. As discussed extensively during the analysis of their IMC

    campaign Nike has also been successful in staying true to a unified theme across all

    elements of their marketing mix, and they have maximized the value of their spending by

    creating cohesive campaigns across different platforms that work in harmony. Nike also

    made an excellent decision in partnering with Apple, since Apple and their iTunes music

    stores are strong brands seen as hip and at the cutting edge of technology, particularly

    amongst a younger demographic.

    After extensive analysis and careful consideration I would only make one recommendation

    to Nike regarding their Nike Plus integrated marketing communications plan. I believe that

    in their current mass media advertising for the Nike Plus Human Race 10K they should try tomore effectively integrate Nike Plus product placement. Although I feel that the race is an

    excellent idea, which will ultimately help to strengthen the brand and moves the sales

    needle, the actual advertisements for the race do not have enough of a focus on the

    product itself.

    Therefore Nike might be at some risk of losing the chance to leverage the other elements of

    their comprehensive IMC program and product identification amongst people that only see

    these advertisements and do not already know the technology behind the Nike Pl us line of

    products.

    CONCLUSION

    Nike, Inc. is a company rooted in competition. From equipping athletes with the finest sportsequipment in the world to continuously improving our own financial performance, Nikedominates its competitors. Phil Knight and Bill Bowerman probably could not have imaginedin 1962 to what degree their $500 investments would yield in 2000. They did know that

    product quality and innovation would help athletes to achieve greater goals. Nike stilloperates on this philosophy today. It is one that has helped athletes and stakeholders alike torealize 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 powerfulglobal brand.

  • 8/7/2019 IMC of nike+plus

    28/29

    Monitoring and Evalutation:-

    LOYAL CUSTOMERDISCOUNTSNike should consider to come up with more active programme's to bring the past customersto their active circle by sending them offers, samples, catalogues and other stuffs so that theywould always see Nike around and when the opt for shopping they would have one and only

    brand to shop i.e. Nike. Various schemes like Nike E-card, Nike Mileage Card.

    RESEARCH ANDTURN KEY APPROACHOnce the design is made and through jumps the shoes is liked to the customer and been soldnow there is more hectic work to be done that is what customer would like Nike to have sothat s/he would come back to Nike again. There are many factors such as design, durability,accessibility, pricing, etc. This would bring customers to Nike again and again. At the sametime Nike has to be more innovative in terms of sporting activity and should come up withsports and sporting product to create new concept of sports like Sony did for walkman whereall small player are called walkman or disc man because this was put into everyone heads likeCadbury, so Nike still has to work to bring branding so powerful that sports would be calledas Nike one day.

    References

    Belch, George and Michael Belch. Advertising and Promotion an Integrated Marketing

    Communications Perspective. New York: McGraw-Hill Irwin, 2009.

    Nikebiz Homepage. Founded on a handshake, $500 and mutual trust.

    http://www.nikebiz.com/company_overview/history/1960s.html

    Nikebiz Homepage. The birth of the Nike brand, and company.

    http://www.nikebiz.com/company_overview/history/1970s.html

    Nikebiz Homepage. Nike+ Human Race: The Worlds Largest One Day Running Event.

    http://www.nikebiz.com/media/pr/2008/05/01_HumanRace.html

    Ad Age.com (originally 5-22-08). Nike dumps Crispin Porter +Bogusky.

    http://www.hyrcollective.com/daily-blog/2008/05/nike-dumps-crispin-porter-bogusky/

    Nikebiz Homepage. Nike and Apple Launch Nike + iPod Sport Kit.

    http://www.nikebiz.com/media/pr/2006/07/12_iPodSportKit.html

    R/GA homepage. Nike+. http://www.rga.com/award/nikeplus.html

    Baltimore Business Journal. Under Armour to unveil a running shoe in 2009.

  • 8/7/2019 IMC of nike+plus

    29/29