Media Flight Plan Nike + Ipod

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Media Plan
Nike + Ipod
Industry/Company Overview
-
-
Nike Inc. was founded in 1962 by Bill
Bowerman and Phil Knights.
Originally “Blue Ribbon Sports.”
Now a global powerhouse.
At the end of 2011 fiscal year, Nike made $20.9
billion in revenue and controls 40% of the market.
Sports & extreme sports equipment.
Wholly-owned affiliates.
Product Review
-Nike Plus sensor placed in the shoe allows
runners to receive data about their runs.
-Interfaces (iPod, wristband, iPhone).
-GPS tracking system.
`
Competitive Review & Advantage
ADIDAS GROUP
•
•
•
International company
Most profits from North America
Rapidly expanding
PRODUCT
• miCoach
Competitive Review & Advantage
GARMIN
• 2011 company revenue
growth of 18%
• 2011 Fitness equipment
revenue growth of 30%
• Highest source of revenue is
North America.
Garmin Q1 2011 Earnings Call Webcast.
PRODUCT
• Forerunner 610
touchscreen
SWOT Analysis
STRENGTHS
OPPORTUNITIES
-Nike has the largest market share in sporting goods.
-Nike has the most yearly revenue continuously.
-Nike’s image is trusted and the company has many loyal
customers.
-Apple iPods are the most popular electronic devices for the tech
savy.
-Apple iPods are the most popular electronic devices for those who
require music storing systems.
-Apple has the largest market share in its industry
-Apple has the most yearly revenue in its field continuously.
Both logos are widely recognized.
-An App is available for those who cannot afford the product.
-There are always new age groups moving into the targeted
category.
-As the lead in market share, Nike has more money to advertise its
products than other companies.
WEAKNESSES
THREATS
-Nike has many competitors such as Adidas, Reebok, Puma, etc. Market share has gone down in recent years.
-Not all Nike shoes are equipped with Nike + technology
-Affordability is an issue.
-Those who cannot afford the products have no way of attaining
them.
-Competitors’ products are more versatile and can be used with
more products, such as their shoes and certain phones.
-By associating itself with Apple, Nike is excluding customers who
are loyal to Microsoft.
-Other brands’ customers are just as loyal.
-Nike’s partnership with the RED party.
-Adidas’ market share is growing.
-The state of the economy has made it harder to sell expensive
electronics.
-Nike and Apple could be seen as one giant monopoly and therefore,
deter customers from
-Purchasing products.
-Market share could continue to decline.
Marketing Objectives
• 1. To provide a 10% increase in Nike’s brand
loyalty by the end of the campaign.
• 2. To increase awareness of Nike + iPod
technology by 20% by the end of the
campaign.
• 3. To increase sales of Nike + iPod technology
by 30% by the end of the campaign.
Advertising Objectives
• There has not been any advertisements for Nike +
iPod since 2007.
• 5K in the Spring for $20 per person
• Word-of-mouth
• Coupon for free Nike + iPod sensor with each
purchase of Nike shoes ($100+)
• Heavy advertising during the holidays and the Spring,
leading up to the Summer
• By reaching advertising objectives, we can achieve a
30% sales increase.
Creative Strategy
• No major ad campaign since
2007
• Definite theme and overall
promise
• Inspirational tone to target
runners and those who
want to become runners
• Enough knowledge to
understand the ad, but
enough intrigue to learn
more
• Relies heavily on website
Creative Strategy Examples
Creative Strategy Examples Cont.
• “NEWS” tab
• Inspirational
commercials
• http://www.youtube.co
m/user/NikePlusTV#p/a
/F0A5343EAFF3BFA7/2/
xpFaMrwSR-k
Target Selection
PRIMARY
• Male & Female, 18-40
• Tech savvy athlete
• Runners interested in
improving time runs
• Apple & Nike customers
• Interested in quality of
health
• Financially able to purchase
products
SECONDARY
• Male & Female
• All age ranges
• Non-athletes
• Trying to improve health
• Financially able to purchase
products
Overall Media Budget
•
•
•
•
•
•
Print Ads: $1.5 million
Television: $2 million
Internet: $25,000
Outdoor: $600,000
Other Advertising: $1.5 million
TOTAL: $5.6 MILLION
Target Audience Coverage
• April – August: reach 100% of target audience
an average of two times.
• Maintain a 60% reach of the target audience
an average of two times continuously.
• November - January: generate an 90% reach
of the target audience an average of 4 times.
Regionality & Seasonality
120
100
80
Fall
60
Summer
Spring
Winter
40
20
0
Northeast
Northwest
Southeast
Southwest
Central
Flighting
• Heavy, pulsating year-round advertising
• Pulsating times: Holiday season &
Spring/Summer months
• Gifts
• Exercise
• Back-to-school
Media Mix
•
•
•
•
•
Advertising Objectives
Print: magazines, newspapers
Internet: social networking, Pandora radio
Television: prevalent during November –
December & April – August
Outdoor: events, billboards
Word-of-mouth
Creative Constraints
• Radio
• Outdoor advertising
• Internet
• Print
• Television
Budget Constraints
•
•
•
•
Majority of advertising is internet
Television only used during high selling times
Outdoor is necessary for promotion
Money spent buying advertising will pay off
Media Mix
Budget Constraints
•
•
•
•
Television
Print
Internet
Outdoor
Scheduling
Weighting, Reach & Frequency
• Heavy weighting in Northwest and Northeast regions
during the winter
• Heavier weighting during the summer in the Southern
and Central regions
• 80% reach with a frequency of 5 times continuously
• 90% reach with a frequency of 4 from November January
• 100% reach with a frequency of 2 during summer
months
-Internet – Print – Television -
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