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 PRODUCT International company Most profits from North America Rapidly expanding miCoach

Competitive Review & Advantage GARMIN PRODUCT 2011 company revenue growth of 18% 2011 Fitness equipment revenue growth of 30% Highest source of revenue is North America. Forerunner 610 touchscreen Garmin Q1 2011 Earnings Call Webcast.

SWOT Analysis STRENGTHS OPPORTUNITIES WEAKNESSES THREATS -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. OPPORTUNITIES -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 -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. THREATS -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.com/user/NikePlusTV#p/a/F0A5343EAFF3BFA7/2/xpFaMrwSR-k

Target Selection PRIMARY SECONDARY 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 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

Flighting Heavy, pulsating year-round advertising Pulsating times: Holiday season & Spring/Summer months Gifts Exercise Back-to-school

Advertising Objectives 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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