X
By Group 30
Phuong HOANG (Evelyn)
Tiffani LAM
Koichi NAKAYAMA
Roger ROMERO
Arjun SHIVACH
TABLE OF CONTENTS
Presentation
Overview
02
I
Executive Summary
II
Situation Analysis
III
Marketing Strategy
IV
Integrated Customer Experience
V
Profit Potential
I
EXECUTIVE SUMMARY
X
The collaboration between Nike and Cariuma to launch new sustainable product lines
Nike – standard
design,
comfort and
durability
Cariuma's sneaker production
technology with sustainable
materials and reduced carbon
footprint process
The integrated service
and distribution
ecosystem
II.
SITUATION
ANALYSIS
Context
Company:
Collaboration
between Nike
and Cariuma
Competitors:
The
sustainable
shoe market is
very scattered
as of now.
Customers:
Young
generations
are willing to
pay more for
sustainable
products
Sweet spot
Sustainable
footwear is
projected to
grow in future
CONTEXT:
Big growth potential for sustainable sneakers in the next decades
Market Size of sustainable vs global footwear
USD in Billions
140
126,5
115,9
120
100
93,5
74
80
60
42
40
20
8,5
9,5
11
10
2,5
3
3,5
0
Global Shoe Market
Sustainable Shoes
2023
2025
Sneaker Market
2027
Sustainable sn eaker
Sources: Market Insights by Statista
CUSTOMERS:
Young generations are willing to pay more for sustainable products
Younger generations are most concerned about sustainability
in a post-COVID world.
Overall, 64% of consumers say they would pay
more for sustainable shoes if marketed correctly.
13%
Reducing Carbon footprint
Reducing single use plastic
consumption
72%
73%
72%
75%
35%
16%
36%
Would pay $10 extra for sustainable shoes
Companies behaving more
sustainably
Baby Boomers
79%
79%
0% 20% 40% 60% 80% 100%
Gen X
Millennials
Gen Z
Would pay $6-10 extra for sustainable shoes
Won't pay additional amount for sustainable
shoes
Would pay $1-5 extra for sustainable shoes
Sources: 17,149 internet users aged 16-64, by Kantar
COMPETITORS :
The sustainable sneaker market is very scattered as of now.
Start-up
10000 foot view: Are we making real
progress?
Big brands
74,19%
20,43%
5,38%
The industry
The industry
The industry
has made great has made some has not made
stri des forward progress, but
any real
not significant
progress
The industry
has gone
backwards
III.
MARKETING
STRATEGY
LOW < ATTRACTIVENESS > HIGH
SEGMENTATION
BEST
SEGMENT
A
Considering about Lifestyle, Category drivers, we
define 4 main segments
A: Trend setters
B: Casual users
C: Professional athletes
B
D: Affordable users
D
WORST
SEGMENTS
LOW < COMPABILITY > HIGH
C
TARGET PERSONA
Eco -casual advocates
Demographics
•Age: 18-35 years old.
•Occupation: Students, early career professionals
•Location: Urban areas
Values and Lifestyle
•Be Fashion-Forward
•Support Sustainability and Eco-Friendliness
• Possess Active and Casual Lifestyle
• Be Tech-Savvy and Socially Connected
Category spending drivers
•High Investment in Quality
•Selective Purchasing
•High Brand Loyalty
SNEAKER MARKET POSITIONING
Versatile usage
Positioning statement
Sustainable
Traditional
Exclusive usage
( only for parties, treatment, profressionals, …)
For Eco-Casual Advocates
seeking sustainable
alternatives for their current
everyday sneakers, Nike x
Cariuma provides the best
sustainable sneaker due to its
superior comfortable design,
carbon-less production
technology, and a
comprehensive service
ecosystem.
BRAND ESSENSE
Why
How
Who
What
( Master Nike mission)
Bring innovation and inspiration to every athlete in the world
*If you have a body, you are an athelete
Versatile, Durable and Eco-friendly
Intensely energetic, Fiercely successful,
Eco- conscious
Superior
designs,
endorsed
by Nike
Natural
materials and
less- carbon
production
technology, by
Cariuma
A complete
ecosystem of
products
and services
15
IV.
INTEGRATED
CUSTOMER
EXPERIENCES
PRODUCT
Product Features
Everything you would want in your everyday sneaker:
Exceptionally comfortable, versatile year-round and eco-friendly —
a collection that exists at the intersection of functionality and style.
1. Practicality & comfort
Featherweight
Water- and slip-resistant
Arch and ankle support
2. Durability
Machine-washable
Removable & replaceable insoles
3. Sustainability
Entrenched in all aspects of the
product design (e.g. lining woven
bamboo, organic cotton canvas)
Design Mood Board
Packaging
Two-in-one
shoe and shipping box
+
Sustainable dust bags
made with recycled plastic bottles
+
Plant seed
Augmented Product
Customization
Dedicated customer care and after-sales
Resoling service @Niketown stores
Nike x Cariuma Green Club community (workshops, experiences and
loyalty points)
Repair warranty (partner with local artisans)
COMMUNICATION
Communication Objectives
Why?
How?
Who?
What?
Amplify &
Share
Like & Excite
Educate &
Engage
Reach &
Believe
Media Choices
•
•
Launch and post-launch
sharing of existing customers,
press, and social figures
• Social Media Interactive Campaign:
#JustdoGreen #NikexCariuma
• Trade in old shoes, get a discount on a
new pair
• Pop-up VR virtual tour of sustainable
shoes production process
• Sustainable customization workshop
with the participance of influencers
Maintain social conversation
and build excitement for the
official launch; inviting cocreation and experiences instore
Messages on our
differentiation and
sustainability impact
Engage through different
channels (physical and
digital)
Leverage on the reach Nike
has already done as a brand
to build awareness of the new
product line Nike x Cariuma
Gifts with purchase : plant seeds
Nike x Cariuma Green Club with
evergreen reward points
•
•
•
•
•
Build new web pages on Nike.com
Transparency on sustainability and impact
Email campaigns
Celebrate global environmental events
with limited design collection
Influencer and celebrity endorsements
• Creative TVC
• Social Media Ads
• Sponsor articles on Magazines &
events
• SNKRS App
You are invited
CUSTOMER JOURNEY
Engagement
Reach
•
Evelyn
•
•
Wears
sneakers
regularly
Cares about
the
environmental
impact of her
purchases
Knows Nike is
launching a
lifestyle
sustainable
shoe line from
online sources
•
Receives targeting
marketing
•
Wasn’t previously
aware of Cariuma
but she is starting
to like the idea and
the look
•
Sees social
conversation
driven by
influencer and
celebrities about
the Nike x Cariuma
line, which is
limited in number
and highly soughtafter
Excitement &
Conversion
•
Hears about the
pop-up VR virtual
tour, goes to
check it out
•
Loves the
experience,
speaks with staff
•
•
Hears about the
trade-in
programme and
is convinced by
the trade-in idea
Joins the waitlist
and she also signs
up on SNKRS
Advocacy &
Loyalty
Usage
•
Attends the
customization
workshops as a
VIP (alongside
influencers)
•
Shares
pictures of the
event and gets
her pair of
customized
shoes
•
Loves the cocreation
process, as well
as the shoes’
functionality
and versatility
•
Becomes a keen
member of the
Nike x Cariuma
Green Club
•
Tells friends and
family about the
shoe line
•
Takes care of the
houseplant
(seeds of which
came with her
Nike x Cariuma
purchase) and
continues to
share pictures
on social media
SALE MANAGEMENT
GO- TO- MARKET STRAGEGY
Training &
Outfits
Physical Stores
Objectives
Web Stores
Distribution
Channels
Talent
B2B Sales
Experience
Amplify sales and image
Accessibility
Compensation
28
V.
PROFIT
POTENTIAL
PRICING STRATEGY
USD
Sustainable
Collaboration
Sus × Collab
Direct Competitor
Target
+ 200
Adidas× Parley
Ultra boost $ 220
Nike × CARIUMA
AJ 1 $ 200
150
150 – 200
Nike × Travis Nike × Union
$ 190
$ 190
Base model Price $180
Ultra boost, AJ 1
VEJA$ 150
Nike$ 130
CARIUMA $ 140
All Birds $ 140
BUSINESS PERFORMANCE PROJECTION
USD
Revenue
Price
Qty Sold
CGS
CGS %
Gross Profit
Gross %
Total Opex
Opex %
Demand Creation
DC %
Operating Overhead
Ope Overhead %
Operating profit
Operating %
2024
20,000,000
200
100,000
12,000,000
60%
8,000,000
40%
10,000,000
50%
5,000,000
25%
5,000,000
25%
(2,000,000)
-10.00%
2025
50,000,000
200
250,000
30,000,000
60%
20,000,000
40%
17,000,000
34%
5,000,000
10%
12,000,000
24%
3,000,000
6%
2026
100,000,000
200
500,000
59,000,000
59%
41,000,000
41%
33,000,000
33%
8,000,000
8%
25,000,000
25%
8,000,000
8%
2027
200,000,000
200
1,000,000
116,000,000
58%
84,000,000
42%
64,000,000
32%
16,000,000
8%
48,000,000
24%
20,000,000
10%
2028
400,000,000
200
2,000,000
228,000,000
57%
172,000,000
43%
128,000,000
32%
32,000,000
8%
96,000,000
24%
44,000,000
11%
B.E. point
166,700 units
Nike 5 years AVE 55%
Nike 5 years AVE 32%
Nike 5 years AVE 8%
Nike 5 years AVE 24%
BREAK- EVEN ANALYSIS
Break Even QTY
167K
Second Year
G
s
ro
fit
o
r
P
s
Break Even QTY
220K
Amount
Amount
First Year
os
r
G
it
of
r
sP
17Mil
Fixed Cost
10Mil
Fixed Cost
Our 2nd Year QTY
Our 1st Year QTY
100K
200K
QTY
100K
200K
QTY
MARKET SHARE PROJECTION
3.5 Bil
3 Bil
2.5 Bil
1.7%
2023
2025
5.7%
2027
Appendix
To be profitable from first year with selling Price 200USD,
Company needs to sell minimum 200K.
First year Price !"Quantity Operting Profit Simulation
USD
Qty
(2,000,000)
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
Price
80
(3,800,000)
(2,600,000)
(1,400,000)
100
(3,500,000)
(2,000,000)
(500,000)
130
(3,050,000)
(1,100,000)
850,000
(200,000)
1,000,000
2,200,000
3,400,000
1,000,000
2,500,000
4,000,000
5,500,000
4,600,000
5,800,000
7,000,000
140
(2,900,000)
(800,000)
145
(2,825,000)
(650,000)
150
(2,750,000)
(500,000)
180
(2,300,000)
200
220
(2,000,000)
(1,700,000)
400,000
1,000,000
1,600,000
2,800,000
4,750,000
6,700,000
8,650,000
1,300,000
3,400,000
5,500,000
7,600,000
9,700,000
1,525,000
3,700,000
5,875,000
8,050,000
10,225,000
1,750,000
4,000,000
6,250,000
8,500,000
10,750,000
3,100,000
5,800,000
8,500,000
11,200,000
13,900,000
4,000,000
7,000,000
10,000,000
13,000,000
16,000,000
4,900,000
8,200,000
11,500,000
14,800,000
18,100,000
7,000,000
10,600,000
11,800,000
12,400,000
13,000,000
16,600,000
19,000,000
21,400,000
8,500,000
12,550,000
13,900,000
14,575,000
15,250,000
19,300,000
22,000,000
24,700,000
10,000,000
14,500,000
16,000,000
16,750,000
17,500,000
22,000,000
25,000,000
28,000,000
Thank
THANK YOU
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