(TIỂU LUẬN) MARKETING MANAGEMENT FINAL EXAMINATION MARKETING PLAN TO IMPROVE NIKE AIR JORDAN 1

THE FINANCIAL UNIVERSITY OF FINANCE - MARKETING MARKETING MANAGEMENT FINAL EXAMINATION MARKETING PLAN TO IMPROVE NIKE AIR JORDAN MEMBER: LƯƠNG HOÀNG DI LINH - 2021001662 TRẦN MINH NGHĨA – 2021000053 0 MEMBER’S GROUP WORK ASSESSMENT ASSESSMENT CRITERIA Work completion time Content quality Attitude at work DETAILED ASSESSMENT OF EVERY MEMBERS Name Work completion time Content quality Attitude at work Total Lương Hoàng Di Linh 100% 100% 100% 100% Trần Minh Nghĩa 100% 100% 100% 100% 0 TABLE OF CONTENTS EXECUTIVE SUMMARY SITUATION ANALYSIS .5 2.1 Market summary .5 2.2 S.W.O.T  Strengths:  Weakness  Opportunity  Threat 2.3 Competitor 2.4 Product Offerings 11 2.5 Distribution .11 MARKETING STRATEGY 11 3.1 Objectives .11 3.2 Target Markets .12 3.3 Positioning 12 3.4 Strategies 12 Product 12 Price 14 Distribution 14 Marketing Communications 14 3.4 Marketing mix 14 3.5 Marketing Research .15 4.0 FINANCIALS 17 5.0 CONTROLS .18 5.1 Implementation 18 5.2 Marketing Organization 18 0 EXECUTIVE SUMMARY Nike is a US-based supplier of sportswear and equipment It was founded in January 1964 and its headquarters are located near Beaverton, Oregon Nike is the world's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment The Jordan is Nike's iconic shoe In 1985, the Air Jordan was officially produced and became a commercial product with a retail price of $ 65, known as the most expensive basketball shoe ever since 1985 AJ1 was designed based on Nike products of that period with the signature "swoosh" mark on the side, the Nike Air logo on the tongue (in Retro versions replaced with the Jumpman logo) and especially the Air Jordan "Winged Basketball" logo AJ1 owns an "Air" cushion in the heel, an ankle buffer to limit injuries when playing football With the development of the market, customers' requirements for a pair of sports shoes are also gradually changing Although this is a highly iconic shoe, comfort is still quite low In response to that change, we launched an improved version of the Air Jordan Our goal for the first year is to achieve 12,000 sales with a profit of about 1.1 million USD, keeping the loss in $300,000 the first year Break even after months of year SITUATION ANALYSIS The sports shoe market in Vietnam is extremely exciting with a lot of potential for development According to statistics of the Ministry of Industry and Trade, each year the country consumes 130-140 million pairs of footwear with a value of over $1.5 billion, accounting for about 30% of the industry's export revenue Because the needs of people are increasing day by day, they love the new and unique things that shoes bring Therefore, the market in Vietnam can be said that this is a potential market for investors and businesses, and it can be seen that the shoe market in general is very competitive, if you want to gain market share, stand firmly in the market, and gain trust from customers, you need to invest in product quality, reasonable prices, a unique breakthrough in design as well as other features the accompanying performance of the shoe 2.1 Market summary Targeted customers belong to many different segments such as students, shoe collectors, sports players Table 2.1: Table of customer segments Target Segment Customer Need Student Used for many purposes 0 Express your own style and personality Affordability Unique design The product is comfortable to use Sneakerhead Easy to customize Unusual design Price doesn't matter Sport man Comfortable, smooth when used for sports activities Easy to clean The target audience, however, has a few different needs But aside from that, there are still a lot of the same requirements From those common needs, Nike offers the required elements on new products  Feature request: Unique design, easy-to-match colors, with integrated Airbag insole for increased comfort, treated leather for easy cleaning 2.2 S.W.O.T  Strengths: Product innovation: In a highly competitive shoe market, innovation is an important determinant of sustainability Nike, has always been successful and is considered as one of the pioneers in introducing various enchanting products With its ever-evolving and innovative product range, it has cemented its position as one of the leading brands in the apparel and footwear industry, gaining the trust and confidence of its customers Nike has accounted for more than 40% market share in the Vietnamese shoe market Nike has always strived, constantly developing products to meet the needs of customers The table below provides how Nike has implemented various initiatives to meet their product innovation strategy Table 2.2: Table provides how Nike has implemented various initiatives to meet their product innovation strategy over the years Year Product mold 2014 Launch of Nike Vapor Untouchable 2015 Make a revolution by introducing the Nike FlyEase 2017 Air Jordan 11 "Space Jam" launch marks the most successful shoe in Nike history 2018 Nike introduces their innovative Tech Pack collection 0 Strong global brand: Nike, is considered one of the strongest global brands with a prominent worldwide presence The brand is promoted by celebrities and top sports experts, creating brand recognition in the eyes of customers, being brand ambassadors of international sports events with famous stars age in the sports world: Michael Jordan, Cristiano Ronaldo, Rory Mcilroy and Rafael Nadal, with its recognizable and inspirational “Just it” tagline to all its potential consumers  Weakness Depends heavily on the footwear sector: The brand has a wide range of products including apparel, equipment and footwear But marketing trends show that Nike's sustainability largely depends on its footwear sales So if in the event of a risk, the footwear segment has a problem, the organization will be seriously affected In North America, more than half of all sales are generated from footwear each year Footwear Garment Equiment Figure revenue generated from footwear over the years Spend a lot of money on advertising: Nike spends a lot on advertising and brand endorsements While considered a successful marketing strategy, annual increases in costs vary widely and make a significant impact on profit margins However, as competition increases with each financing, the allocation to advertising costs also increases exponentially The company itself argues its stance by claiming this is a demand-generating process, but the percentage increase is not reflected in the expected productivity gains  Opportunity Product Expansion: Nike is known to be one of the few brands that spends millions of dollars on research and development As they dominate footwear, apparel and sportswear that gives them a significant opportunity to increase their product range Nike has focused on product innovation, designing unique and new products to meet the needs of 0 customers, and Nike's creative research and development department always brings innovative products products that fascinate, stimulate the needs of customers Some products such as Nike Flyknit, recycled polyester, Colordry, Nike Grind, Nike vapor untouchable, “Space Jam” Air Jordan 11, Tech Pack collection, etc show skill and relentless product design creatively new Explore emerging markets: In the 21st century, the globalization of the world, China, Brazil, have had high economic growth Consumers in high-income countries and brand interest are on the rise, and these are the key markets Nike targets, which can drive sales and generate revenue profit for Nike  Threat Fierce competition: Nike is known to be a famous brand that is interested and favored by many people, and is appreciated more than its competitors However, Nike's biggest fear is facing big competitors like Adidas, Puma, in the market for clothing, sports shoes and other accessories The needs of customers are increasing day by day, so Nike must always grasp trends and come up with appropriate strategies to be able to develop and stand firm in this fiercely competitive market Revenue in billions Nike Adidas Puma Figure revenue of competitor Dangerous Supply Chain Management: For a global company like Nike, reaching customers and delivering products with precision is critical Nike does not own the footwear and apparel factory, although it accounts for 90% of sales All production is outsourced to third parties again accumulating materials from independent contractors It improves margins and reduces inventory, but it also adds risks to the entire supply chain management system 2.3 Competitor 0 ADIDAS: As one of the most powerful sports brands worldwide, loved and trusted by many people and Nike's biggest competitor, the company has a wide product portfolio with a wide range of shoes and accessories different events, along with the popularity of the variety of different shoe lines Adidas has an efficient distribution system for their products to be available through different channels, has built a brand in the hearts of customers and created a strong presence in the community by sponsoring organizations Major sports organizations like FIFA, UEFA, NBA & Olympics have increased awareness of Adidas in the market and thus also increased highly targeted customer base PUMA: Puma is associated with many famous brands around the world, which is very important in making it a top brand, besides it is always at the forefront of the latest trends back to Puma creative advantage also they have very strong marketing department to make sure that the world never misses anything they Puma has also built a brand in the eyes of customers by sponsoring football federations at the World Cup, including Ghana, Cameroon, Ivory Coast, Algeria, Italy, Switzerland and Uruguay NEW BALANCE: Known as a brand with a variety of different shoe lines, the N-brand becomes the focus and gradually exerts a strong influence on world fashion Because of this, many people mistakenly believe that this is a brand of the Land of Kimchi, but New Balance comes from the US, a symbol of popular fashion Besides, the brand has built trust and trust with customers who are philanthropists for many years and are also sponsors for teams and players in the Olympics, cricket, Australian Football Federation and the Australian Football Federation NBA FILA: Is a brand that is also interested by many people with the hotness of the Fila brand's Sneakers Designed in a bunker style but still customized to fit the Asian figure, the "quality" Fila sneaker has taken the throne making anyone want to own Table 2.3: Comparison table of shoe lines of brands Brands and products Adidas Puma New balance Fila Ultra Boost 22 Puma Cell Endura Rebound ‘White’ New Balance Made In-991 Classic FILA Disruptor White Material, substance Made with Adidas' specialized Primeknit fabric Specialized fabric of The midsole is classic Abzorb Puma 0 Mainly high quality leather material Recycled ingredients Feeling when carrying Design Mesh fabric runs all High quality over the shoe nubuck leather material Airbag at the bottom Midfoot part made of suede Elastic mesh in several positions, neoprene sole The heel part hugs more, no Feels comfortable longer feels the heel lift when carrying when running feel comfortable Very durable and lightweight to help bring comfort to the wearer The sole is carefully made, so the foot is extremely comfortable The breathability is quite good, providing a comfortable and cool feeling when exercising a lot Always keep ventilation The sole with good grip and suitable weight makes the feet feel more stable when moving and operating The shoe body is made of Prime Blue highperformance yarn - 50% of the fabric is Parley Ocean Plastic, the remaining 50% of the textile is recycled polyester Neutral color gamut Soft materials and meticulous stitching Combined with those are sharp cuts and curving lines around the shoes, thereby There are breathable fabric showing the delicate and eye-catching sections on the design forefoot The iconic N is highlighted The plastic frame of the ultraboost 22 is supplemented with a special "hole" for the wire Designed with simple, delicate colors suitable for many customers The sole of the shoe is pitiful, eye-catching, and the embroidery is solid The boost midsole has been tweaked to improve energy return The outsole is applied the latest technology: Continental Natural Outsole Price 5.000.000VND 4.580.000 VND 2.4 Product Offerings 0 3.100.000 VND 2.790.000 VND These are criterias based on market analysis, analysis of product strengths and weaknesses of competitors: Made of lightweight material Easy to handle simple stains The sole is integrated with boost technology Sweat-wicking and breathable Increase comfort for the foot Leather material is increased softness 2.5 Distribution Nike products are distributed primarily through retail stores Nike has its own exclusive stores in which products are sourced directly from the company On the other hand, many multi-brand showrooms will also display Nike clothing and shoes These multi-brand showrooms source products from one distributor In addition, online distribution channels are increasingly being divided into: direct distribution and indirect distribution With a direct distribution channel through Nike's website, with an indirect channel through reputable third-party sales websites: Shopee, Lazada, Saigonsneakerstore, Nike distribution channel diagram: producer Nike Storer Final customer producer Multi-brand distributor Final customer producer Online Fashion Website/Nike Website Final customer MARKETING STRATEGY 3.1 Objectives We have set achievable goals for the first months and the last months of the year With the first months of the year we are aiming for unit sales of 2600 pairs, breaking even in the second quarter with a sales volume of about 4667 pairs In the next months, we continue to develop the product according to the established plan 3.2 Target Markets 10 0 Segmentation: Geography: Nike chooses to market large, densely populated cities For example: Ho Chi Minh, Da Nang, Hanoi, Hai Phong Demographics: Targeting both men and women Age 16 to 35 Monthly income million or more Behavior: Targeting people with a modern lifestyle, willing to pay for high-quality products, often regardless of the price, the owner cares about the quality that the product brings Psychology: Targeting the group of people who want to own a pair of shoes that are both fashionable and can serve many sports activities This group of customers has the mentality that they will buy a slightly expensive but high-quality item rather than choosing low-quality items Targeting: Our main target customers are middle class and above, aged about 16 to 35, including students, office workers, people with jobs in the sports field With product requirements is dynamic, youthful, get comfortable when using The second target is shoe collectors, who want shoes with a basic shape that can be easily customized to their own preferences 3.3 Positioning Nike brand with positioning statement: "For true athletes, Nike gives them confidence and the perfect shoes for any sport" Besides, the slogan "Just it" has been deeply imprinted in the minds of customers and with that saying has conveyed positive inspiration to customers 3.4 Strategies Product - Weaknesses on Nike Air Jordan 1: The sole of the shoe is a bit hard and thick, when exercising a lot, it will cause a hot feeling in the feet Fabric does not dissipate heat well The material where the contact point with the ankle is not soft enough 11 0 - Developed from the Nike Air Jordan Low To better match the new needs of customers Our new innovations include: Added to the airbag base that appeared on Nike's Air Max line This airbag revolutionized Nike's soles The main effect of the airbag is to increase the elasticity of the sole, minimizing the possibility of fluctuations when the legs move up and down Figure airbag development position Change the original fabric to mesh fabric at the ankle Taken from the mesh material on the Nike Air 90, Known for many years for its breathable foot feature This change overcomes the biggest drawback of the Nike Air Jordan Low, which is hot feet when moving a lot The reason for placing the change in the ankle is that this makes the part in direct contact with the skin softer, not causing burning Added mesh fabric, has the effect of increasing breathability, making the feet more airy when used 2 Price Price strategy applied: Skimming price strategy and product-b d pricing strategy with options (shoelaces) Figure old product Figure describes the improved product 12 0 Strategy details: Nike is a global brand with great appeal and appreciation Therefore, using a skimming price strategy when launching new products will attract a lot of attention and interest of many people First quarters: Retail price $150 Selling price for agent 135$ Once the product has peaked and shows signs of saturation, lower the price a bit and use a selective pricing strategy quarters later: Price drops slightly, retail price $130 Customers will have the option to buy two shoelaces or shoe washing bottles at a discounted price If buying with shoelaces will be charged $ for a pair of laces, buying with a shoe cleaning bottle will be charged $ / bottle (the price to buy shoelaces is $ 5, buy a separate shoe washing bottle is $ 7) Distribution Leverage all of Nike's existing distribution channels (shown in the distribution channel diagram above) Nike's distribution channel is divided into channels: Direct distribution and indirect distribution For direct distribution channels distributed at Nike stores in Vietnam, on Nike websites, with indirect distribution channels: multi-brand retail stores, through channels such as Shopee, Lazada, Reputable shoe selling websites: saigonsneakerstore Marketing Communications Launching TVC when launching a product has a collaboration with the artist representing the product, giving messages to raise the spirit of sports through TVC, for KOLs to experience and review the product through its channel surname Limited edition of the first 100 pairs of shoes For each customer, when buying shoes, there will be a thank you letter printed with their name when purchased at a Nike direct distribution store In addition, implementing a strategy of discounting and gratitude to customers, customers with membership cards will receive a 5% discount voucher when purchasing, and for new customers, the price will be reduced at times such as: holidays, Tet, 8/3, 20/10 3.4 Marketing mix Nike will launch new products in September The reason for that choice is because this is the time when the epidemic has subsided, the fields begin to bustle again The following is a summary of the program of activities that occur over the next months to achieve the goals set out Moreover, when the product is released at this time, the product will have many important milestones to make it easier to develop a promotion strategy Almost all Nike activities are geared towards "sporting spirit" This is to create a link between activities, giving a clear message to customers 13 0 August: We will spend an amount of $60,000 to organize advertising campaigns and train staff We will send sample products to the hands of KOLs, bloggers and celebrities to experience and promote the products Criteria for selection of KOLs, bloggers: A person with a standard body, knowledge in sports, and professional sports practice September and October: Will start to launch TVC, campaign, Print ads on social media and banners, posters right at showrooms, stores, The content of the TVCs and posters will revolve around the topic of sports, which can be raised Besides, the TVCs, Print ads will show off the special design, unique functions, and conveniences that the new shoes bring.In order to celebrate the return to school in mid-September, the campaign “Back to school” is launched Provide product samples with white as the main color and simple drawings in patterns, because many high schools in Vietnam are required to wear white shoes November, December: As the advertising campaigns are being promoted, we will promote sales channels to increase the number of products sold Open up a few new distribution locations Location of selected distribution places: Other potential provinces such as: Ca Mau, Da Nang, Launch challenges: In order to honor the spirit of sport, post a challenge to post a clip of participating in sports activities for about minute to participate in the lucky draw Take photos of sports activities with the hashtag #sportwithAJ1 to be able to participate in the giveaway Figure Poster #sportwithAJ1 From the end of December to January, February: Specifically, from December 24 to December 27, organizing a Christmas-themed photo shoot with Jordan shoes to get a discount code when buying products, January and February will apply discounts lightly for the purpose of stimulating the market The amount of the reduction is intended from 10% to 15% 3.5 Marketing Research MARKET SURVEY QUESTIONS The questionnaire helps to better understand the target customer segment Specifically, finding out the needs of customers for a new generation of shoes From there, more information to build a more effective marketing strategy Part 1: Filter questions 14 0 Question 1: Do you live in one of the cities such as Ho Chi Minh City, Hanoi, Da Nang, Hai Phong? a Yes b No Question 2: What is your current age? a Under 16 years old b From 16 to 35 years old c Over 35 Question 3: Do you have a need for Nike shoes? a Yes b No Part 2: Information questions Question 4: Could you please tell me your current occupation? a Student b Officer c Different Question 5: Could you please tell us the reasons why you decided to buy Nike shoes? a Eye-catching design b Good quality c Different Question 6: Is good quality the most important reason why you choose Nike shoes? a Correct b Incorrect Question 7: Are Nike shoes comfortable for you to use? a Correct b Incorrect Question 8: Please give your opinion on the level of agreement with the following Nike Air Jordan product improvement options on a scale of to With being completely disagree and is Completely disagree Totally agree 15 0 Need more ventilation for shoes Need more comfort in the soles Shoe material should be easier to clean After market research we will identify the specific features and benefit the value of our target market segment Feedback from market tests, surveys and focus groups helps us develop and refine our product After launching the product, we continue to receive feedback from the market about the product This information will help us promote the advantages and overcome the limitations in the next strategies 4.0 FINANCIALS Table 4.0: Financial Plan Table No Content Amount of money Expected revenue 1,8 billion USD First year profit 1,1 billion USD The variable costs 250,000 USD Fixed costs 360,000 USD The company reached breakeven when revenue reached 700,000 USD Specific financial plan for marketing activities: Marketing Expenditures For the next seven months Social Media 36,000 USD Event Sponsorship 18,000 USD Support discount campaign 9,000 USD Accompanying products 4,500 USD Website and Digital 22,500 USD Total marketing spent 90,000 USD 16 0 5.0 CONTROLS 5.1 Implementation Internal control: Controls help management detect and correct business failures in a timely manner, measure results, and identify any issues affecting performance We will create separate monitoring units for each part of the strategy Ex: Product monitoring department, price monitoring department, marketing monitoring department, distribution monitoring department, human resource monitoring department Departments need to have activities to check and track the performance of the strategies outlined If bad situations arise, they need to be handled promptly External control: It is necessary to monitor the fluctuation of sales revenue from month to month Organize inspection activities at distribution branches to control sales Every month, we need to go to the place to check the banners and billboards to ensure their quality Monitor the activities of competitors, thereby making reasonable policies 5.2 Marketing Organization C.E.O finance director C.M.O The planner Partner and mentor Di Linh Minh Nghĩa REFERENCES [1] Chiến lược marketing công ty Nike (slideshare.net) [2] (DOC) Chiến Lược Gia Của Adidas va Nike | Ngọc Lê - Academia.edu [3] Tất tần tật Air Jordan | #HNBMG [4] Chiến lược xây dựng thương hiệu Nike: "Just it!" - Tuji Trk Online (tuoitre.vn) 17 0 APPENDICES LIST OF PICTURE Figure revenue generated from footwear over the years Figure revenue of competitor Logo competitor………………………………………………… ……………… …….6 Figure airbag development 10 18 0 Figure old product .10 Figure describes the improved product .10 Figure Poster #sportwithAJ1 .12 LIST OF TABLE AND DIAGRAM Table of customer segments………………………………………………………………2 Product innovation Comparison table of shoe lines of brands Nike distribution channel diagram……………………………………………………… MARKET SURVEY QUESTIONS Financial Plan Table Specific financial plan for marketing activities:……………………………………… Marketing Organization 19 0 ... mold 2 014 Launch of Nike Vapor Untouchable 2 015 Make a revolution by introducing the Nike FlyEase 2 017 Air Jordan 11 "Space Jam" launch marks the most successful shoe in Nike history 2 018 Nike. .. enough 11 0 - Developed from the Nike Air Jordan Low To better match the new needs of customers Our new innovations include: Added to the airbag base that appeared on Nike'' s Air Max line This airbag... 2.3 Competitor 2.4 Product Offerings 11 2.5 Distribution .11 MARKETING STRATEGY 11 3 .1 Objectives .11 3.2 Target Markets