Nike Air Force 1 Marketing Plan.pdf

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Group 3 - IB 1802

<b>Pham Hoang Minh LongNguyen Bach Kim NganDu Kha Minh</b>

<b>Phan Thi Xuan NhiCao Thach Tuyet PhuongLe Vinh Khanh Huyen</b>

Subject: MKT101

<b>NIKE Air Force 1Marketing Plan</b>

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This report focuses several aspect on how to boost sales and market share by 10% with NIKE Air Force 1 in US market, we strike for innovation that grows the company, serve the athlete and to deliver inspiration to others. This plan provides the elements of 4P’s ( include Product, Place, Price and Promotion) for this product.

Source of growth: Adults, collectors and high-end customers.

Marketing Objective: Publish new Air Force 1 design with silk fabric to boost sales and encourage loyalty customer to keep using NIKE’s product with new fashionable .Communication Objective: Renew brand awareness, delivery “Friendly environment”, create a voluntary to help children that can’t go to school.

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<b>◀ BACKGROUND</b>

Nike, Inc., formerly (1964–78) Blue Ribbon Sports, American sportswear company headquartered in Beaverton, Oregon. It was founded in 1964 as Blue Ribbon Sports by Bill Bowerman, a track-and-field coach at the University of Oregon, and his former student Phil Knight. They opened their first retail outlet in 1966 and launched the Nike brand shoe in 1972. The company was renamed Nike, Inc., in 1978 and went public two years later. By the early 21st century, Nike had retail outlets and distributors in more than 170 countries, and its logo—a curved check mark called the “swoosh”—was recognized throughout the world. From the late 1980s Nike steadily expanded its business and diversified its product line through numerous acquisitions, including the shoe companies Cole Haan (1988; sold in 2012)and Converse, Inc. (2003), the sports-equipment producer Canstar Sports, Inc. (1994; later called Bauer and sold in 2008), and the athletic apparel and equipment company Umbro (2008; sold in 2012). In 1996 the company created Nike ACG (“all-conditions gear”), which

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monitors and high-altitude wrist compasses.

Part of Nike’s success is owed to endorsements by such athletes as Michael Jordan, Mia Hamm, Roger Federer, and Tiger Woods. The NikeTown chain stores, the first of which opened in 1990, pay tribute to these and other company spokespersons while offering consumers a full range of Nike products. (The Editors of Encyclopaedia Britannica, 2023)

<b>👟 PRODUCT INTRODUCTION</b>

Nike AF1 shoes are perhaps one of Nike's most famous products, the world's leading sports brand known for its classic yet sophisticated and comfortable designs. The AF1 shoe comes in many different versions, with many collaborations with various brands and famous artists. This shoe was originally designed for basketball players, but in recent years, it has become a cultural icon in fashion and is loved by people who do not play basketball. With its colorful designs and eye-catching patterns, customers can easily choose their preferred color and pattern. The upper material is made of real leather, combined with perforations for ventilation, and the rubber sole provides a comfortable and cushioned feel. The outsole is made of rubber with grooves for increased traction on any surface. The side of the shoe also features the iconic Swoosh logo, which is an extremely refined design from Nike.

<b>🎯 GOALS</b>

<b>Attracting and retaining loyal customers: Recognizing the tremendous amount of force </b>

that is put on the feet from gravity and movement, Nike researched and applied the Air-Sole technology to their AF1 shoes.

The Air-Sole technology helps minimize this impact, reduces stress on joints and tendons, and allows the user to feel more comfortable while moving. This technology has brought

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<b>Increase sales: Implement advertising campaigns, promotions, and collaborate with </b>

influential individuals and other brands to enhance brand awareness and drive sales.Nike's latest financial reports show that it earned $49.1 billion in revenue. This is a substantial increase from the previous year's $46.3 billion and the 2020 revenue of $38.25 billion. Nike spends enormous amounts on advertising, with promotional costs reaching almost $3.11 billion during the 2022 fiscal year. (Daniel Pereira, 2023)

By implementing these strategies, Nike can achieve the goal of expanding its customer base, fostering customer loyalty, and increasing sales revenue for the Nike AF1 line.

<b>🔎 SWOT ANALYSIS</b>

<b>Brand recognition : Nike has good brand </b>

recognition globally, and the Air Force 1 is the most iconic one of their sneaker models.

Product quality and design: The product agreat durability and comfort and comes along with great classic and timeless design, which appeals to a wide range of customers.

<b>Customization: The Air Force 1 is also </b>

customizable with a variety of options, allowing customers to design their own

<b>Collaboration: Nike can explore </b>

collaboration with artists, designers, other brands to create limited-edition or special-edition for the Nike Air Force 1 to enhance customer excitement.

Emerging market: There is always an emerging market where Nike hasn't reached itsfull potential yet.

<b>Digital marketing: With the intense growth of</b>

social media and other internet media, Nike can use digital platforms to promote the Nike AF1

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<b>Higher price point: Compared to some </b>

other sneaker brands, the Nike Air Force 1 quite expensive, which deter price-sensitive customers.

<b>Little innovation: Nike Air Force 1 has a</b>

classic design and remains popular over atime, it has limited updates and innovation compared to some other Nike’s sneakers.

<b>Competitive market : There are a lot of </b>

other sneaker brands and models competing with Nike Air Force 1, which potentially reduce the market share.

<b>Counterfeit product : Due to its popularity, </b>

the Nike AF1 will face a big risk of counterfeitproducts that will damage the brand’s reputation and sales.

<b>Intense competitive : With the large market of</b>

sneakers, there are a lot of brands that are competing with each other to gain the market share, such as Adidas, ...

<b>Consumer preference : Consumer preference </b>

can change over a time.

<b>🗺 MARKETING ENVIRONMENTMicroenvironment:</b>

Company: Nike has a strong brand recognition as well as reputation. Continuous innovation, collaboration, product development would be a great strategy to focus on.

Suppliers: Have a long-term relationship with suppliers and ensure stable and high-quality materials access.

Marketing intermediaries: Retailers, online platforms play an important role in distributing products. Collaborative partnerships with key retailers can help maintain control over productdisplay, availability, and pricing strategies.

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with each other to gain the market share, such as Adidas, Puma,...Continuous product differentiation, innovation, and competitive pricing strategies will help retain and attract customers.

Publics: Engage with the public through social media, community building, and enhance brand loyalty.

<b>🏅COMPETITIVE ANALYSIS</b>

Adidas, founded in 1949, is a German multinational corporation that designs and manufactures sports clothing, shoes, and accessories. As the largest sportswear manufacturer in Europe and the second-

New Balance is one of Nike’s main competitors in the athletic footwear industry.It was founded in 1906 and has operations inover 120 countries. With 6,000 employees, itachieved $4.4 billion in global revenue in

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$25.122 billion in global revenue in 2021, with a market capitalization of $32.86 billion. (John Hughes)

Table 1: Adidas’s Marketing Mix Strategy

innovation, particularly in its running shoes, which utilise cutting-edge technologies for improved performance. (John Hughes)Table 2: New Balance’s Marketing Mix Strategy

<b>🎭 CUSTOMER</b>

Demographics: Nike targets customers aged between 15 and 45, focusing on middle-aged customers with disposable income and young buyers for long-term brand loyalty. (Anonymous, 2022)

Behavioural: Nike targets income consumers with a sports-focused lifestyle, image

higher-consciousness, and technology skills, seeking to stay ahead of fashion trends. (Anonymous, 2022)Geographic: Nike targets a global market, primarily urban areas, which includes North America, EMEA,

Cultural: Customers from higher-income socioeconomic groups buy Nike to show their social position. (Anonymous, 2022)

Social: Nike's commercials showcase athletes like Michael Jordan and Cristiano Ronaldo. Consumers are influenced by their status and lifestyle. Wearing Nike's limited edition indicates belonging to the upper class. (Vasiliki Panagiotopoulou, 2017)

Personal: Customers are influenced by unique fashion styles, trendy sports equipment, comfort, innovation, and escalating prices. Nike offers products almost anywhere, including online, allowing for instant purchases. (Vasiliki Panagiotopoulou, 2017)

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accounting for 39% of total sales in 2021. (Anonymous, 2022)

Psychographic: Nike targets breakout psychographic categories like weekend runners and style shoppers, targeting 'aspirers' and 'succeeders' who want to be fit and fashionable. (Anonymous, 2022)

confidently do anything in life with their sports equipment. Ad campaigns and headlines promote freedom and victory, driving consumers to the “Just Do It” action. Nike focuses on customer awareness and the "if anyone can do it, you can" approach to motivating them. (Vasiliki Panagiotopoulou, 2017)

<b>🏼 PRODUCT SEGMENTATION </b>

<b>Geographic: For the upcoming Air Force 1 product, we will focus mainly on the sneaker </b>

market’s most lucrative group, the upper classes. We will sell our new products through 1,046 retail stores around the world and on our online or official website, especially focusing on North American and European regions.

<b>Demographics: This next Air Force 1 will be marketed to businessmen and successful </b>

adults. In addition, by choosing the high-income customer segment as the primary target, the new Air Force 1 has also been introduced with a more luxurious design, while factories are set to utilise higher-quality materials. Along with better materials are new colorway designs through new celebrity collaborations, reflecting a new motto that aims to inspire the targeted demographic: “Royal Blood”.

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concentrate on three groups: customer loyalty, benefits sought by customers, fashion trend and user status.

For customer loyalty - the new “Royal Blood” Air Force 1 will target two types of customers:

Higher-income, successful corporate workers and sybarite individuals. Through its driven and luxurious design, the new Air Force 1 promises to retain devoted buyers and draw in additional customers to select it, over other brands' products.

status-Next are the benefits that customers look for when wearing an Air Force 1. There will still be a sense of self-expression and achievement, and a feeling of belonging when owning such an iconic pair of sneakers as the Air Force 1.

The “Royal Blood” Air Force 1s will target consumers who come to the Nike brand for the swiftness of service, world-renowned image, along with outstanding usability and comfort.

The protection and well-being of the environment are also what Nike always focuses on whenlaunching any new model. In terms of environmental protection, the new product will continue to be environmentally friendly. New materials that will be used will produce less emissions compared to the majority of current fabrics through Nike engineers’ research and development.

<b>Psychographic: The target audience of Nike’s new product is upper-class consumers, most </b>

of whom are willing to pay for luxurious, pricey sneakers. The new Air Force 1 will also

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proven that although they occupy a small percentage of the population, wealthy families account for most company’s revenue.

The second is the youngsters. They always seek originality, innovation, and change. They tend to be the leading demographic when new product launches happen.

The last group is the hardcore loyalists, who form a fascination and pay greater attention to new products after noticing how others view the said product and are using it themselves.

<b>💾 MARKETING MIXPRODUCT</b>

Nike's previous designs were all basic and minimalist, so they are suitable for all ages. However, to be able to add the difference, innovation and fit with Vietnamese culture, Nike will combine the Nike Air Force 1 with silk fabric. Silk fabric originates in the Ba Vi district and is made entirely from silk. Silk fabric has a soft and smooth surface, when combined withNike Air Force 1 it will create a product with Vietnamese flavour. Compared to previous combinations, silk fabric will create more elegance and nobility through the inherent soft fabric it brings.

Since silk fabric is quite expensive, the launch of this new product will focus mainly on people with stable incomes and above. Customers who come to Nike will follow the sporty and dynamic trend, so they need the smoothness and comfort of the shoes. Despite introducing new products combined with silk fabrics to harmonise with Vietnamese culture, the inherent quality of the shoes remains unchanged, ensuring durability and comfort when customers use them.

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Depending on the change of material and design, the price of this new Nike pair will be suitable for customers with a background of stable income and above. Specifically, the price of the Nike silk fabric will cost $130 while the Nike Air Force 1 and Nike Air Force 1'07 willrange from $95 to $110. Nike offers a price difference from $10 to $20 because the quality ofeach shoe will match the price customers have paid to own them. Moreover, Nike will releaseitems that come with the shoes with stickers and charms to decorate the shoes, increasing the personality and dynamism of the user. Customers can choose the charm or sticker they like and the price of the shoes doesn't include anything, customers have to pay more to get more

Nike operates more than 1,100 Nike-owned retail stores worldwide. It will be a place for customers to experience new and quality products from Nike and give feedback and opinions on products and even purchase products. Vietnam is no exception, Nike products are very popular in Vietnam, especially shoes, thus Nike has 152 manufacturers and suppliers in Vietnam. Nike stores are distributed mostly in big cities and commercial centres but are limited to tourist areas such as Hue and Hoi An. So we plan to build a Nike store in Hue city, which has the full Vietnamese identity and is very suitable for this new product "Nike silk fabric". Many people will be very curious about the product as well as the design of the Nike store. Therefore, building a new store in Vietnam like Hue City will boost sales and get more feedback from the customer experience.

<b>PROMOTION </b>

For previous products, Nike often promoted the product strongly on social platforms like Instagram and Twitter. In order to make the product different and fresh this time, we propose a strategy of "hard connection" to promote the product to the public. Specifically, we will

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strategy to promote our campaign as well as our brand.

<b>MESSAGING AND POSITIONINGProduct description</b>

A captivating footwear concept that pushes the boundaries of design and innovation. Inspired by the raw intensity and timeless allure of blood with premium materials, making a bold statement wherever you go.

<b>Short positioning statement</b>

'' Experience the iconic design that has stood the test of time, delivering ultimate style and unmatched performance ''

HardConnection

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