Jordan Brand
Rob DiClementi
Final Marketing Plan
Executive Summary
Product:
Jordan Brand offers a variety of basketball apparel, but specializes in footwear. Jordan
provides premium, high quality shoes that add protection and improve performance. Classic
sneakers are reproduced in limited supply, which adds to the perceived value of the brand. The
difference between a Jordan Brand sneaker and their competitors is that he conceives of the shoe
as "objects of art and design that happen to be used for basketball,” according to legendary Nike
designer Tinker Hatfield (Freeman, 2012).
Goal:
Jordan Brand aims to capitalize on past success, while using new opportunities to achieve
“Greatness,” such as Michael Jordan.
1) Increase revenue from limited released Retro sneakers by increasing the supply by 15%, and
increasing the price accordingly.
2) Use Give-and-Go App to increase consumer satisfaction, awareness, and relationships, while
increasing revenue 5-10%.
3) Finally, Jordan aims to build a database of 500,000 former, current, and potential consumers
by implementing several social media strategies
Target Market and Strategies:
Jordan Brand targets all millennials, urban millennials/generation z as a niche, and the
global market. The strategies in place to benefit the brand begin with a slight increase of supply
and price for limitedly released shoes. After this, improving brand image with campaign to stop
violence associated with reproduced shoes. Another strategy is to take full advantage of social
media by communicating, promoting, and gathering information from prospective consumers.
Introducing a mobile application and website that acts as a social media resale site will increase
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revenue through a secondary market. Finally, a partnership with the NBA is the first step in
sustaining a long term relationship to enhance global expansion strategy.
Introduction
Mission Statement:
Jordan Brand aims to capitalize on past success, while using new
opportunities to achieve “Greatness,” such as Michael Jordan.
After Nike gave Michael Jordan his own line of basketball shoes in 1984, the industry
would never be the same. Over the years, the product line expanded to include socks, shoes,
shirts, shorts, and hats, but shoes have always been the best selling product. By using a strategy
of differentiation and product development, the brand’s market share in the basketball shoe
market has reached 71% (Sandler, 2011).
Today, Jordan produces innovative sneakers with extremely high quality. Now years after
Michael Jordan’s retirement, Carmelo Anthony and Chris Paul now have their own signature
shoes through Jordan. The brand also produces a number of different modern shoes, all varying
in design, technological advance, and quality (Nike, 2012).
Jordan Brand also releases shoes that were released in the past, and refer to them as
“Retro”. These shoes are released with a limited supply and priced between $160-$185. By
keeping the supply of Retro’s low, consumer demand is extremely high (Wahler, 2012). Since the
supply is currently extremely low, consumers must patiently wait in long lines or use to
secondary market to purchase them.
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Overall, Jordan Brand produces premium basketball shoes of the past and present that are
sold at a premium price.
Situational Analysis
Jordan Brand’s demand trend depends on the actual shoe and how many are produced. If
the shoe is more limited than another shoe, it is likely that the demand will shift in favor of the
minimally supplied shoe. In comparison to other products, as time passes, limited shoes increase
in value.
The technology trend in the basketball shoe market is shifting. In the sense of
performance, producing a light weight, protective shoe is now the objective (DeLisa, 2011).
Adidas actually produces the lightest shoe in the industry, but still own a small portion of the
market share (Elfes, 2011). In addition, cutting traditional advertising budget to increase
nontraditional (social media) spending is becoming more common (Cedrowski, 2012).
The fact that most athletes are within the millennial generation, Jordan uses this
demographic as a large percentage of consumers. Jordan’s product directly fits the needs of these
people. In addition, the NBA is 82% African American and all but one endorsed athlete is
African American. Celebrity endorsement is a factor in creating legitimacy for the brand, and the
African American culture is a large part of influencing its’ credibility (Sanders, 2012).
Though Jordan Brand is enhancing their global strategy, and Michael Jordan is an
international figure, they still face international challenges. Li-Ning, a Chinese shoe company, is
making some noise in the international market. Currently, they are not a huge threat to Jordan
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Brand’s current US sales, it could be a brand that grows in to a powerful rival in the future. With
the recent acquisition of Dwayne Wade, a previous member of Team Jordan, could sway the
outlook of international consumers.
Competitor’s SWOT
Strengths
Weaknesses
- Adidas has endorsement deal with Derrick Rose,
and has own shoe line around him (Adidas,
2012). Also signed Dwight Howard.
- Introduced the “AdiZero” shoe, which is the
world’s lightest shoe (Elfes, 2011).
- Adidas had campaign ads during the NBA
Playoffs with highly touted players wearing the
AdiZero (Elfes, 2011).
- Innovation with ankle support and surface
traction (Premie, 2011).
- Adidas has one of the most recognizable and old
brand names in the history of sneakers (Premie,
2011).
- Signed an 11 year deal with the NBA to be the
official apparel supplier (Rovell, 2006).
- Adidas has only a 3% market share (Sandler,
2011).
- Adidas only has a 21.8% internation market
share, which is less than Nike, and they are
based out of Germany (Van Riper, 2008).
- New “Shackle Shoes” are deemed racist by
many Adidas shoe wearers, and people are not
buying their shoes as a result (Roeper, 2012).
- Foreign labor creates CSR problems.
Opportunities
Threats
- Adidas has a rivalry with Nike/Jordan (Nike,
- Adidas is beginning to break new ground on
distribution (adidas-group, 2012).
- The addition of cost-optimtimsation drives
profitability (adidas-group, 2012).
- Adidas is adding customization and
personalization (adidas-group, 2012). This is
something that can compete with Nike’s
implementation
- Enter the digital age of social media to campaign
advertisements behind players, even if they are
injured (Laird, 2012).
2012).
- Under Armour is rapidly growing in the
Basketball shoe market. They are attracting
players out of college and have already signed
big named athletes in Blake Griffin and
Brandon Jennings (Team, 2011). Basically
threat of new entry.
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Adidas has a far smaller market share at 3%. With some high named endorsement deals
and innovative technology, Adidas has stayed somewhat competitive in the basketball shoe
market (Elfes, 2011). The AdiZero basketball shoe has proven to be the lightest shoe on the
market, thus differentiating itself from other companies.
On the flip side, Adidas has controversial issues surrounding their company, just as
Jordan has. For example, foreign labor has created Corporate Social Responsibility issues in the
past (Adidas-group, 2012). The recent release of their “Shackle Shoes” have been deemed racist
by many people too (Roeper, 2012). They are still struggling in the foreign market with a 21%
market share, even with them in the international market with them being based out of Germany.
When researching the new opportunities Adidas is exploring, they actually are looking to
expand just as Nike and Jordan have. For instance, selling customizable shoes and owning a
better distribution channel is on the agenda for Adidas (Adidas-group, 2012).
Being in the basketball shoe industry, Adidas has the same threats as Jordan, except they
are much more serious. Owning only 3% of the entire market, they have to be more concerned
about Under Armour passing them in the near future.
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Customer Analysis
1) Since 82% of NBA players are African American, it has been 9 years since Michael
Jordan’s retirement, and African American teens 20% more likely to spend more than
average teen for shoes, “Winning Moments” campaign can influence potential consumers.
A target market that Jordan Brand engages is the young, urban population. As the years
go by, it is becoming more and more important for Jordan Brand to keep the aura of Michael
Jordan fresh in the mind of young consumers. Any basketball fan that appreciates Michael
Jordan can also be influenced by this commercial, especially since its’ been years since his
retirement. As a result, the “Winning Moments” campaign was launched to display Michael
Jordan’s importance. It focuses around a fictional man named “Leroy Smith”, who took Jordan’s
spot on his High School basketball team (Google, Inc., 2010). Though the story is true, and was
what motivated Michael Jordan to become a Hall of Fame caliber player. Jordan Brand used
Google Display Network and used keywords to place their ads in relevant places such as niche
basketball blog sites . The campaign drew 296,000,000 impressions, 296,000 clicks, 6,000
Twitter Followers, and 11,000 Facebook likes (Google, Inc, 2010).
A study by Dr. Robert Lyons, Jr., concluded that African American Millennials spend
20% more on shoes every year than the average US teen. In this case, however, comfort, the
sequence of colors, and style are the most important factors in buying the shoes.This campaign
was used to put a positive influence of Michael Jordan in to the mind of a young, urban
basketball fan.
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2) Jordan Brand’s new social media focus is most beneficial to the Millennial generation,
who are 18-35, because 96% use social media sites (Social Media and Statistics, 2012)
The “Millennial” Generation’s athletes/sport enthusiasts and fashion conscious people may be
the largest target market for Jordan Brand. Ranging from men and women, ages 14-35, this
generation is extremely engaged in social media. For example, 82% of 14-17 use a social
networking site, while 60% of 18-29 years old use more than one (Petrusa, 2011). Expanding
social media advertising and interaction is an urgent objective for Jordan Brand, and enhancing
consumer communication can allow this market to grow even larger. Since Jordan Brand mainly
offers basketball shoes, it is helpful that A higher percentage of men (64%) watch basketball than
football, baseball, hockey, and NASCAR (SportsBusinessDaily, 2012). Athletes and fashion
conscious millennials make up a large portion of Jordan Brand’s consumer population.
3) With the addition of Larry Miller and the expanded NBA broadcast (215 countries),
Jordan Brand’s social media strategy and possible NBA partnership, Jordan will soon
target global basketball markets (Jesop, 2012).
The 2012 NBA Finals were broadcasted in 47 languages, and in 215 countries. The NBA
estimated they had about 278 million fans in international markets follow the Finals by using
Social Media (Jessop, 2012). With the emergence of a rapidly growing international basketball
market, Jordan has an opportunity to expand their market outside of the United States. To assist
them in this process, Jordan hired Larry Miller as their President of Jordan Brand. His job is to
expand the entire brand as a whole on to the global market (Nike Inc., 2012).
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Company Analysis
Marketing Objectives
1) By December 1, 2013, Jordan Brand will increase the supply of Retro Limited Release shoes
15%, and increase the price of these shoes $20.00. Jordan is expecting to increase sales
revenue by 10-15%, and continue to hold about 70% of the overall market share.
2) Initiate launch of “Give and Go” service and receive another 5-10% increase in overall
company revenue over the first year. Measuring the revenue the service brings in through sales
commission and initial fees, Jordan Brand’s goal is to increase their overall revenue by at least
5%.
3) With the application of multiple social media strategies, Jordan Brand’s goal is to build a
comprehensive database of over 500,000 people during the first year after the implementation.
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Product Analysis
-
Strengths
Weaknesses
- Jordan Brand owns the highest percentage of
market share (71%). Other than Nike’s 22%,
Adidas and Reebok own a combined 5%.
(Sandler, 2011)
- People of all social classes are buying Jordan
Brand shoes (El-Omari, 2002).
-Jordan Brand consumers are
extremely loyal.
- Sponsorships with star athletes associate Jordan
Brand with greatness (Derek Jeter, Blake Griffin
Carmelo Anthony, Chris Paul, Denny Hamlin,
Georgetown University, Marquette University,
Gatorade, Upper Deck, 2k Sports) (Badenhausen, 2011).
- Established a motto that attracts people to their
products- “Become Legendary” (Nike, 2012)
- -Jordan brand hired Larry Miller to be their
President and drive a global strategy to expand
their product sales in international markets (Nike
Inc., 2012)
-Products are produced in foreign sweatshops
with virtually no human rights and no bargaining
power (Midwest Today, 1997). Though better
than before, Public Relations took a big hit in the
past.
Opportunities
Threats
-The only non-African American individual
athletic sponsor Denny Hamlin (Nike, 2012).
-Many retro released shoes are made with less
quality than the originals and are still priced
between $160-$185 (Snapp, 2012).
-Advancing Jordan Brand’s relationship with
-Under Armour deemed 5th out of American
NASCAR can help mesh the sneaker and racing
industry, especially after leading driver Denny
Hamlin signed a contract with them (Madden,
2012).
companies in 2011 growth.
-63% increase in annual domestic sales
(Mirabella, 2012)
Under Armour- major endorsements (Brandon
Jennings, Cam Newton, Bryce Harper) (Team,
2011)
- Social Media pages have three million followers.
Using promotions to directly sell and gain
personal information from consumers.
-Many retro shoes are released in such a limited
-Supply falls extremely short of demand- leaves
opportunity to produce and sell more (Hill, 2011)
quantity, crimes such as murders are being
committed to acquire them (Hill, 2011).
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Jordan brand has a vast number of strengths. The result of their strengths as a subsidiary
of Nike is that they have a 71% market share of basketball shoes (Nike, 2012). This eliminates
threats such as Under Armour, Adidas, and Reebok, who own less than 5% of the market. With
loyal consumers, top notch endorsements, and high quality shoes, there is little competition in
the market of basketball shoes.
With success comes consequences, however. Public relations can be a huge issue with
child labor and crimes that are caused because of their value and limited access (Hill, 2011). To
maintain the value and premium stance of the sneakers, increasing price and supply by 15%
could prevent instances of crime. Though the supply will still likely not come close to reaching
demand, people will have a better opportunity to purchase shoes for their retail price and sell
them without committing a crime.
Tapping in to the NASCAR market could prove to be a huge opportunity for Jordan brand
(Madden, 2012). Advancing in to this market can relate Jordan Brand to the racing industry, and
leads to potential success with the relationship. In addition, hiring Marketing guru Larry Miller
to lead a global expansion plan may increase popularity and add consumers in growing markets
such as China (Nike Inc, 2012).
Jordan brand has virtually no threats within the basketball shoe industry. Under Armour is
a growing company that has received a 63% increase in annual domestic growth in 2012
(Mirabella, 2012), and has signed many “up-and-coming athletes” that have aided their growth.
Since Jordan is a subsidiary of Nike, they basically own all elements of the supply chain from the
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warehouses, distribution channels, and actual retail stores. They possess almost all the bargaining
power
Marketing Strategies and Tactics
Promotional Strategies through Television
Strategy # 1 - Commercial(s) featuring celebrities
Jordan Brand’s “Team Jordan” really focuses on promoting Jordan products through
premium athletes. This strategy, however, focuses on the flip side of entertainment: celebrities.
Tactics:
Its’ objective is to feature high profile celebrities wearing and promoting Jordan
products, showing that the Brand is a fashionable product. In addition, this strategy is outside the
normal scope of Jordan commercials, which typically include the aspect of basketball Instead of
airing on ESPN, or breaks of a basketball game, Jordan Brand could use MTV, a network that
targets the millennial generation (James, 2011).
Footwear analyst Matt Powell calls Jordan a “top-end, conspicuous-consumption brand”,
and that top athlete endorsements such as Carmelo Anthony, Chris Paul, Derek Jeter, and Roy
Jones, Jr., are large role in creating that image (Mullman, 2009).
Celebrities such as, but not limited to: Jay-Z, Spike Lee, Ludacris, Eminem, Kanye West,
John Mayer, Justin Bieber, and Kim Kardashian could transcend the image of Jordan Brand
beyond basketball. Each one of these influential figures have been photographed wearing the
historic “Air Jordan IV” on their own account (La Puma, 2010).
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Celebrity endorsements and associations can provide credibility and legitimacy of a
product instantly (Sanders, 2010). Changing the perception of the product for people outside the
sports world could see the perceived value of Jordan Brand sneakers.
Evaluation:
To measure sales success, Jordan Brand will offer a mandatory survey for all online buys
in exchange for free shipping. When a consumer purchases shoes at an official location, the
receipt could include a link to the survey website. Providing a 10 percent discount to any one
who completes the survey would be the incentive behind providing the beneficial information
needed to assess the commercial’s influence.
Strategy #2 - Using ESPN to promote Jordan Brand
Jordan Brand will use a new relationship with ESPN to target the basketball fan and sport
loyalist market.
TacticsPromoting the Jordan Brand product on ESPN could lead to success. Broadcasting
commercials during basketball seasons during Sportscenter could be crucial because the show
averages about 115 million viewers every month (ESPN INC., Fact Sheet, 2012). In addition,
adding the Jumpman logo to the set of “NBA Countdown” would be another way to use media
to promote the brand. The show features former NBA players Magic Johnson and Jalen Rose.
This show leads in to a nationally televised game, which is also another option for promotion.
The objective is to market to people that are interested in the game of basketball. Though people
have different motivations for purchasing Jordan Brand shoes, Michael Jordan is one of the most
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prevalent figures in the basketball industry. Advertising on these specific shows can market
directly to basketball fans.
EvaluationMeasuring success of the commercials can be viewed by looking at sales, Nielson ratings,
and social media responses to the commercial. A relationship with ESPN, the most profitable
sports network with a projected 8.2 billion dollar revenue in 2012, would just be another way to
show they associate with high quality businesses and investments (Greenfield, 2012).
Promotion Strategies using “Facebook”
Strategy #1 - Attaining valuable personal information of current/potential consumers
Through Facebook, Jordan Brand has an opportunity to use enticing giveaways and
sweepstakes as a method of receiving specific consumer information.
Facebook Background
Jordan Brand’s official Facebook page has over 2.6 million “likes”, which is basically a
business’ version of “friends”. When a Facebook user “likes” the page, the brand’s updated posts
appear in those users “feed” or “timeline” the second they are posted. Jordan Brand’s target
audience can be found by simply looking at the people that liked the page. Facebook is free, and
the business is able to communicate with their target market without cost. Fifty-four percent of
users use their phone to access the site, and the average user (of the 901 million users) are using
Facebook for nearly 8 hours total per month (Pring, 2012).
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Tactics Through Facebook, Jordan can hold weekly contest and give away a pair of the most
recently released sneaker to the ten most deserving people. For example, the challenge may read:
“Veterans Day is a time to pay respect to our Soldiers. We are giving away the Jordan “Cool
Grey Retro IX’s” to ten fans that display the most American Spirit while wearing a Jordan
product! Click the link below to enter to send us your picture and information. Winners will be
eligible for our grand prize: An all expenses paid trip for four to the NBA All Star Game and
the chance to meet Michael Jordan!”
To be able to send the picture and enter the contest, the fan must first answer multiple
questions that will provide valuable information about themselves. For example, fans must
provide their full name, address, email address, and select their interests from the list provided.
Finally, the last question or two would ask them how they feel about an idea Jordan Brand is
thinking about implementing. By doing this, Jordan Brand is given a huge marketing advantage
because they are able to understand their consumers and target market, market to people
differently based on their interests, and send promotional emails. All of this information is gained
at a relatively low price, considering the use of Facebook is free. They produce their own shoes
at a low cost, and the trip will cost only $2000-$3000, which is an extremely low cost in
exchange for the valuable information of potential repeat consumers.
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Evaluation:
The results of the contest and survey can be measured through positive responses via
Facebook posts and by measuring the number of people that took advantage of the additional
promotional offers that were emailed to them. Overall, this promotional idea is extremely
inexpensive, and extremely valuable.
Strategy #2 - Providing link for purchase
When Jordan Brand posts pictures of released shoes, adding a link under the picture is a
method to influence immediate sales.
TacticsJordan’s Facebook page provides many pictures of the most recently released shoes. For
instance, a picture of the “Super.Fly” Jordan shoes was posted, and over 11 thousand people
“liked” it (courtesy of Jordan’s current Facebook page). However, there is no link to be able to
buy the shoes. Instead of making the consumer go to an official Jordan supplier’s site
themselves, or even a secondary site where Jordan does not benefit, providing a link that takes
the consumer directly to a supplier of their choice could increase sales. The link would look
something like :
Click on your preferred store to buy: Foot Locker Finish Line Champs EastBay
This addition to the Facebook page is free, and can lead to a sale that may not have been
there otherwise. The same idea could be used for the mobile “App”, except the initial link may
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just say “Buy”, and then a tab with the store list will appear after. The objective of this
implementation is to add another possible way to make a sale.
Evaluation:
To evaluate this objective, one may view the number of hits the link receives, and the
number of shoes that are bought using this method.
Promoting through Expansion of “Twitter”
Strategy #1 - Gaining Followers
As of 2012, about 500 million people have a registered Twitter Account (Statistic Brain,
2012). The problem is, however, getting people to “follow” Jordan Brand’s official Twitter
account, which has 451,00 followers compared to Facebook’s 2.6 million. Capitalizing on
Twitter as a free promotional tool, like Facebook, can spread awareness and enhance the brand’s
image.
Tactic #1One way to promote Jordan’s official Twitter account is printing the “handle”
@JUMPMAN23 on every box of shoes and sales tag of other apparel they produce. On the side
of the box or the tag, Jordan Brand could print:
“For promotional sales, release dates, and news, follow @JUMPMAN 23 on Twitter.”
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Jordan Brand has an annual revenue of one billion dollars, and printing the hashtag of
their Twitter account on every item they produce is a way to increase the number of followers
they acquire. Any poster or billboard that Jordan uses to promote their products could include the
hashtag, as well. If the consumer knows what the “@” stands for, then it is safe to assume they
understand that it is the hashtag to the Twitter account.
Overall, building a relationship between the product and Twitter handle can ultimately
increase the awareness of the @JUMPMAN23 account.
Tactic #2A second way to acquire followers is to post the direct link to the account on Jordan’s
official Facebook page, multiple pages of the official website, and in the description of all Jordan
products that are sold online from official suppliers. One click from the consumer or potential
buyer will take them directly to the Twitter account, where they have the opportunity to click
“follow”. Also, in exchange for the direct link to their site on Facebook, the official Twitter pages
of the suppliers can include the handle “@JUMPMAN23” when promoting a Jordan product.
The symbol “#” is often used on Twitter as a function called a “hashtag”.
The idea of the function is to form a network between people who are tweeting about the
same topics. It groups people together. For example, if an extremely limited shoe is being
released, one may find that “#jordan” or “retro” is trending. The function of bringing people
with the same interests to the official Jordan page is another way to have potential consumers
follow the business. Overall, promoting the hashtag and common trend by using the internet is
another way to Jordan Brand can gain followers.
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Tactic #3Lastly, requiring TeamJordan athletes to include the hashtag @JUMPMAN23 and the
trending topic #TeamJordan in their Twitter and Facebook profiles could be beneficial in
attempting to gain followers. After visiting the Twitter page of Carmelo Anthony and Chris Paul,
one can see that they have about 2.6 and 1.5 million followers, respectively. Carmelo Anthony
plays in New York, and Chris Paul plays in Los Angeles, which are two of the largest markets in
the United States. The amount of views their pages get are not limited to their followers. Their
pages are both public and can be seen by every one with internet access. If both of these players
send one tweet with the hashtag and trend of the Jordan Twitter page, it is guaranteed to show up
on over four million people’s timelines. It is common for prominent athletes to be “retweeted” by
fans, where the message spreads to an even larger audience. An example of this is Carmelo
Anthony sending out a tweet that says:
“Look at what I’m wearing thanks to @JUMPMAN23! #TeamJordan”
One tweet can spread awareness, and enhance arousal. This tweet has the potential to
motivate current and potential consumers to click the link to the Jordan Brand page, and possibly
even purchase the shoes. The results can be measured by the amount of followers the
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@JUMPMAN23 official Twitter page gained hours after the tweet was posted. In addition, as the
player(s) accumulate followers, more people will have the opportunity to click the link which
would always be located in the player(s) profile on their page.
Strategy #2- Creating an interactive environment for communication of Jordan
consumers
Tactics #1It is possible for Jordan Brand to tweet to fulfill an objective. Jordan could simply tweet a
question to its’ followers to see what people’s feelings are about a certain product. For example:
“What is your favorite “colorway” of the Retro IV sneakers?”
By using the market research, Jordan Brand will be able to group the people that responded by
demographic, location, and other factors. By using this strategy, it is possible that there is an
overwhelming favorite that most people prefer or that different regions of the country prefer
different colors. Once this information is concluded, Jordan Brand can make the decision on
what color to release. It also creates the possibility of releasing one color for one region, and a
different color in another region. This allows Jordan Brand to market directly to their
consumers’ wants.
Tactic #2Athletes of #TeamJordan obviously compete in Jordan products. To enhance the image of
the athlete, who represents the product, highlighting the athletes’ accomplishments is a way of
building an association with success. A potential tweet that exemplifies this is:
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“WHOA! Another highlight reel dunk for @blakegriffin. We are proud to have him as a
member of #TeamJordan!”
With this specific tweet, Jordan Brand is publicly praising Blake Griffin for a dunk that
not many other people can do. Associating him with Michael Jordan is a way of showing that
they endorse very talented players, which is a strategy to increase the already high perceived
value.
Incorporating the members of Team Jordan in the social media strategy is also a way to
market to fans of specific teams and players.
Tactic #3Lastly, Jordan could retweet a fan that tweets something unique to them. Doing this is a
way of making their followers an actual part of their business. If other followers, or people on
twitter, see that Jordan retweeted a normal fan, they will be more likely to communicate with
Jordan themselves. Retweeting a large amount of followers, that are not Team Jordan athletes,
takes away from the prestige of those followers that are retweeted. Jordan may retweet, for
instance, two fans a day to implement this strategy. If they retweeted 20 people, this strategy
would not have the same effect, because Jordan is a business that values quality over quantity.
An example of a tweet from a follower that could be retweeted it:
“Hey @JUMPMAN23, check out my trophy case!”
This follower attached a picture to this tweet of his shelves filled with Jordan I-XXIII.
This is a loyal follower, that has gone above and beyond the typical current consumer to prove
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that he is worthy to be associated with Team Jordan. Since all of the Jordan followers are able to
view this picture, it could motivate them to try and do something worthy of Jordan’s retweet.
New Product Development
“Give-and-Go”
Using technology to create a new service, with the idea of capitalizing on lost sales
revenue.
Over the past few years, many applications for mobile phones have developed. Some go
as far to say, “There’s an app for everything,” sarcastically, of course. Jordan enthusiasts, in some
cases, become dealers. These people are nicknamed “sneakerheads.” They wait in long, endless
lines to be able to buy limited release shoes at retail price. Obviously, the smaller the supply is,
the higher the demand is. For example, the “Concord” Jordan sneakers were extremely limited
and sold for $180 retail. The next day, they were on a secondary market such as Ebay the next
day. Though Jordan sells out of their limited shoes, they cannot stop people from being resold
(Marritz, 2012). In comparison, “TicketExchange” by Ticketmaster allows an owner of a ticket
to sell a ticket through the official team’s website (ticketmaster.com). This partnership with the
league allows the team to be involved in its’ resale.
There are many blog sits that sneakerheads go to communicate with each other and stay
up to date with the newest releases. Websites such as, but not limited to, KicksOnFire.com,
NiceKicks.com, and TheShoeGame.com update sneaker enthusiasts about release dates, and
create relationships with people to buy and trade sneakers. They do not have apps like
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professional sports teams, though, that give updates and information about their product. The
Sacramento Kings (SportsBusinessJournal, 2012) are the latest team to develop a mobile app that
works in the same manner as their website.
The technological advances with mobile applications and resale are still continuing to
grow. As part of that growth, Jordan Brand could develop a website and app that works partly
like a social media site, and a resale site too. The App and website will be called “Jordan Give
and Go”. Since a vast amount of websites exist that are social media, and also many sites that
blog about sneakers, combining the two could work magically. The social media section of the
website and app will both be free of charge. Each user will have to create a profile with all the
information that they would like to include. The users are able to put up their own ads on their
profile with full descriptions of the shoes they are looking to sell or trade. In addition, they must
include the shoes that they are looking to buy, or indicate their shoe interest. This function is
similar to “trends” in twitter, where people are linked based on what they are looking for. The
website will be able to compare people based on their provided information, and provide a list of
suggested users that are similar to them. Jordan will provide “Insiders” that will write updates
and stories on the home page of the app/site. These insiders can be viewed be any user.
For the actual resale portion of the App, users must create an account with Jordan Brand.
The user has payment options for this section. They can choose to pay $10 for a single month
use, $35 for six months, or $50 for a full year’s access. Every user must create an account, where
the credit/debit card information is saved from the activation payment. The account is used for
fraud protection. If a buyer purchases shoes from a seller, their card on file is immediately billed
and put in to the Jordan account. Once the shoes are verified to be authentic, or 48 hours without
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any verification, the money will be transferred from the Jordan account or to the seller. The
process of buying or selling shoes goes directly through Jordan. The shipper must provide
shipping to the Jordan headquarters, where the shoes will be judged by expert shoe analysts. If
they are deemed authentic, Jordan will send them directly to the buyer. The cost of shipping this
time is included in the transaction fee of 3%. If they are unauthentic, the shoes will be shipped
back to the seller. In this case, the money will be refunded from the Jordan account to the buyer’s
account. The seller’s account, is charged a $100 penalty for having the shoes judged as
unauthentic. All terms and conditions of the resale process must be accepted to create an account.
For any user, light or heavy, Jordan guarantees the sale of authentic sneakers on this
secondary marketplace. The Jordan app and resale website helps people with the same interests
communicate with one another, and creates one large marketplace for people to sell or trade
shoes from all over the world. This app is just another way that Jordan can make money off of
their products, even after that already sold them. The success can be measured by the number of
users that spend money to buy and sell their product, and the profit Jordan Brand makes off of
the resale. The success of the App may take time because it will needed to be promoted and must
go through a trial and activation phase.
Building a partnership with NBA to promote Jordan Brand
The NBA and Jordan could meet on a merchandising contract for certain merchandise
that is not already licensed by an official sponsor. For example, the right to associate the NBA
logo with the Jordan logo can be a groundbreaking business deal. For example, the NBA logo is
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on every uniform, which is sponsored by Adidas. However, NBA merchandise such as head
bands and socks are not officially licensed by anyone other than the NBA itself.
Jordan Brand could provide head, arm, wrist, and knee sweat bands. In addition, they
could provide socks, as well. In return, Jordan would be included on the “Official Sponsor” list
of the NBA, and have their logo promoted through players using their products. The only Jordan
product that can currently be worn on the court are shoes. When the camera focuses in on a
player that is wearing a head band, the logo is clearly visible. The NBA would not have to pay
for these items anymore, and will provide Jordan with advertising opportunities on NBA.com,
NBA TV, and other NBA owned media outlets.
For the NBA, having another business that will be willing to bid for the uniform rights at
the end of the current contract could result in increased revenue. Now that Jordan is able be an
“Official Sponsor” through the NBA, growth can lead to increased ownership.
Since the NBA is dedicated to expanding globally, as well as Jordan Brand (Nike., Inc.), a
relationship with the NBA could help attain the same global success. Since Michael Jordan is the
most recognized athletes, the NBA could use the Jordan name to help spread awareness to
potential fans (Miller, 2011). The NBA Finals was broadcasted in 215 countries and 278 million
people followed the Finals through social media (Jessop, 2012). The partnership, which could
also be utilized for free through social media, can aid in expanding the game of basketball and
number of Jordan consumers.
Overall, the advertising that Jordan could receive all over the world by providing game
gear to NBA players is a strategy for globally expanding. If the NBA could use the official
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Jordan name in their global strategy, both businesses have the ability to profit from the
partnership.
Restoring Popularity Among Newly Released Sneakers
By wearing Jordan Brand shoes, especially during Michael Jordan’s career, the consumer
was making a statement. Lacing up the newest pair of sneakers, and paying roughly $100 to do
so, was a way of identifying with the NBA’s greatest player. Purchases were made through
emotion and a symbol of status (Petrina).
Today, Jordan Brand is looking to restore that emotion. Jordan President Larry Miller
says, "The goal is to get the brand to be hot today and not just the products that were sold in the
past" (Sprinkle, 2012). Take the Jordan XX8 for example:
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Scheduled to be released on February 16th, 2013, the new design is raising many opinions. The
shoe is extremely light, and includes a neon green tongue. Whether people like it or not, it is
drawing similar attention to the shoes that were released during Michael Jordan’s career.
Implementation and Control
Public RelationsThough Jordan Retro shoes are always priced from $160-$180 retail, some shoes are
more limited than others. The supply of these shoes is in direct relation to the actual value,
especially on the resale market, where shoes can sell from hundreds to thousands of dollars. As a
result, it is extremely difficult to purchase these shoes for the retail price. In response, consumers
respond by using violence to attain the shoes.
Increasing the supply is Jordan’s response to prevent these crimes from taking place. To
improve the image that was impacted negatively, and decrease the number of violent occasions,
Jordan Brand is including a wrist band that reads “Life is No Game. Stop Violence”. After the
commercials that involve celebrities and athletes, this message will appear alone on the screen
for roughly three seconds.
ABC News’ Christina Ng wrote an article about violence that occurs because of the high
demand. By announcing this new promotional strategy, Jordan Brand is responding to this claim.
The PR team will go directly to all major news networks and newspapers to talk about the
implementation of this strategy. Michael Jordan will be the leading spokesperson for the
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campaign to increase awareness. There is a possibility for free, good publicity in this promotion
because Jordan Brand is taking a step to help prevent crime.
This activity can be measured more than one way. First, comparing the sales revenue of
limited release shoes before and after the implementation. Next, comparing the crime statistics
associated before and after the change is made can indicate if the change improved consumer
behavior. Finally, reviewing the tweets and posts to the official Jordan social media pages can be
a measure of the consumer response to the implementation. The “@JUMPMAN23” official
twitter page currently has 442,000 followers and Jordan facebook page has almost 2.7 million
“likes’, which allows people to read company “posts”.
Social Media ResponseAs a tool of measure, social media is a way of analyzing consumer satisfaction and
responses. In addition, it can be used as a vital tool in segmenting people. By separating
followers and friends by their age, race, location, and other characteristics, Jordan Brand can
continually modify their promotional efforts. Thus, consumer responses are able to be clearly
accessed. With the new pricing and supply objective, social media is a direct tool to measure
consumer satisfaction.
Advertising BudgetJordan Brand is a subsidiary of Nike. Over the past four years, Nike has cut their ad
budget nearly 40%, and now spends the majority of their money around “nontraditional”
marketing (Cendrowski, 2012). Though Nike does not make Jordan Brand’s advertising budget
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public, it is clear Nike is focused on social media and online advertising. Even if just one of the
commercial campaigns could exist, celebrities or ESPN, the opportunity for social media
advertising has led Nike their highest annual revenue of all time: 21 billion dollars (Cedrowski,
2012).
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