(Tiểu luận) final reportnike company’s integratedmarketing communicationplan

FOREIGN TRADE UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION *** FINAL REPORT NIKE COMPANY’S INTEGRATED MARKETING COMMUNICATION PLAN Course: Marketing Communications in the Digital age Lecturer: Ngo Hoang Quynh Anh I INTRODUCTION Integrated Marketing Communication (IMC) is the process of unifying marketing communication elements such as public relations, social media, audience analytics, business development principles, and advertising into a brand identity that remains consistent across distinct media channels It enables public and private organizations and corporations to provide an engaging and smooth customer experience for a product and/or service, as well as maximize an organization's image and stakeholder relationships Considering this background, a detailed IMC plan analysis of Nike is presented in the following sections to understand the factors defining success of the brand and its popularity, high brand equity and revenue generation among various segments from different markets II COMPANY OVERVIEW Nike company’s overview Nike is a multinational corporation that designs, develops, and sells athletic footwear, apparel, equipment, and accessories The company was founded in 1964 by Bill Bowerman and Phil Knight and is headquartered in Beaverton, Oregon, United States Nike is one of the world's largest suppliers of athletic shoes and apparel and a major manufacturer of sports equipment The company's products are sold under the Nike, Jordan, Converse, and Hurley brands In addition to its commercial success, Nike is known for its social and environmental initiatives, including efforts to reduce waste and carbon emissions, improve working conditions in its supply chain, and promote diversity and inclusion Nike has also been involved in several high-profile marketing campaigns and sponsorships, including its long-standing partnership with Michael Jordan and its role as the official apparel provider for the National Football League (NFL) Vision Nike's vision statement is "To bring inspiration and innovation to every athlete* in the world (*If you have a body, you are an athlete.)" This statement emphasizes Nike's commitment to designing and producing products that inspire and enable all athletes, regardless of their skill level or physical ability It also highlights the company's focus on innovation and continuous improvement, as it seeks to push the boundaries of what is possible in the world of sports apparel and equipment Overall, Nike's vision is to be a global leader in the sports industry, empowering athletes to perform at their best and achieve their full potential Mission The mission statement of Nike, Inc is "To bring inspiration and innovation to every athlete* in the world." The asterisk next to the word "athlete" represents Nike's belief that everyone is an athlete, regardless of their level of fitness or athletic ability Nike's mission is to use innovative designs and technologies to create high-quality athletic footwear, apparel, and equipment that empower people to perform at their best, both on and off the field of play Additionally, Nike is committed to sustainability and social responsibility, and aims to make a positive impact on the environment and the communities in which it operates Products and Services Athletic Footwear: Nike produces a variety of athletic footwear for various sports and activities, such as running, basketball, soccer, and tennis The company also offers lifestyle footwear that can be worn casually Apparel: Nike produces a range of athletic apparel, including tops, bottoms, jackets, and accessories like socks, hats, and backpacks The company's apparel is designed to be functional, comfortable, and stylish Sports Equipment: Nike manufactures and sells sports equipment such as soccer balls, basketballs, golf clubs, and fitness equipment Digital Services: Nike offers digital services such as the Nike Training Club app and the Nike Run Club app, which provide users with personalized workout plans, coaching, and tracking tools Customization: Nike provides the option for customers to customize their shoes and apparel through its Nike By You service, allowing them to choose colors, materials, and designs Retail Stores: Nike operates its retail stores globally, providing customers with a personalized shopping experience and access to exclusive products Competitors The main competitors always of Nike are Reebok and Adidas and their product are not entirely different from Nike’s products, as all products involved in the design and marketing of both athletic footwear and apparel and for fitness projects but Nike is having differentiation and distinctive competency in the area of marketing Nike always creates the consumer brand awareness and has strong brand power for a long time and also makes a position in the market Nike is having the no seat which cannot be replaced by its competitors so easily because of its long-lasting Slogan “Just Do It” and symbols “Swoosh” and their sports icons are recognizable for target audience There are two great attributes which makes distinctive competency for Nike are its inability to be replicated and the value or benefit which they offer to its consumers As Nike is the integrated part of the American and world culture, the brand power is basically increased and difficult to replicate Few companies have such that image and resources to promote their company as Nike As the motivational Slogan of Nike is “Just Do It” with the marketing campaigns which emphasis the fitness, competition and sportsmanship, consumers having the high quality based products and a spirit of achieving the confidence where younger consumers can get benefit from the positive influence (Deng, 2009) The figure shows the status and market share of Nike and its competitors in athletic market, where it is seen that the Nike has highest global market share that is 31% whereas the its major competitors as Adidas and Reebok have 16% and 6% market share respectively Problems (S.W.O.T) - Strengths: Strong Brand Awareness and Brand Value: Brand value of $50.2 Billion Huge Customer base Aimed For Sustainability Iconic Relationships Side Brands: Nike’s ability to maintain and enhance its side brands such as converse and Hurley have enabled it to enjoy unparalleled success for decades Low Manufacturing Cost In-house Professionals: Nike has a team of professionals that design its shoes and other athletic accessories Superior Marketing Capabilities High Market Share: Nike is a market leader in footwear industry Nike has captured approximately 39% of the global athletic footwear market and 13% of global athletic apparel market - Weaknesses: Poor Labor Conditions in Foreign Countries Pending Debts: As of FY22, Nike’s total long term debt was $8.9 billion Lack of Diversification: Nike’s over-dependence on sporting apparel or lack of diversification is a major weakness The pandemic has discouraged physical interaction and gathering with sporting events canceled or postponed Dependency on North America especially US Market - Opportunities: Document continues below Discover more Marketing quốc from: tế Trường Đại học… 600 documents Go to course Nhóm 10 - MKT401 37 tiểu luận marketing… Marketing quốc tế 96% (24) NHÓM -tiểu luận 36 marketing quốc tế… Marketing quốc tế 100% (10) Nhóm-6 tiểu luận 37 marketing quốc tế… Marketing quốc tế 100% (10) KẾ HOẠCH Marketing 48 37 CHUỖI PHÚC LONG… Marketing quốc tế 100% (9) Nhóm - tiểu luận marketing quốc tế… Marketing quốc tế 100% (8) Course book Introduction to Law… Emerging Markets: Although Nike already has a presence in many 113 foreign countries, there is still plenty of opportunities for Nike This is Marketing 100% (7) because emerging markets like India, China, and Brazil are gradually quốc tế flourishing Innovative Products Efficient Integration Cutting ties with big retailers: Nike has decided to cut ties with some of the biggest multi-brand retailers and wholesale partners According to the report, Nike will no longer work with wholesale retailers such as Zapoo’s, Dillard’s, Fred Meyer, Bob’s Stores, etc The step is taken for better product positioning and greater customer experience Acquired Artificial Intelligence Start-up Consumer Direct Strategy: Nike has accelerated the consumer-direct strategy, which means shifting its focus to digital business and subsequently closing physical stores In fiscal year 2022, 42% of its Nike revenue comes from online sales Clearly, the pandemic is shaping up how Nike interacts with its customers - Threats: Counterfeit Products Increased competitive pressure: Although, Nike is a dominating the athletic industry, competition, and new emerging brands are still potential threats to the company With higher competition ratio, Nike has to spend more money on marketing and advertising Nike spent $3.8 Billion specifically on marketing and demand generation in fiscal year 2022 To overpower competition, Nike’s safest bet is to design innovative products that are tailored according to the needs of athletes Marketing Budget Pressure: Companies like Under Armour , Adidas and Lululemon are spending more on marketing and advertising campaigns, increasing the pressure on Nike Trade Tensions: Nike depends on different markets across the world evidenced by the recent increase in its stocks rallied by an increase in sales in China With China and the US as its biggest markets, a large chunk of Nike’s sales will be threatened if the trade tensions between the two giants escalate Economic Uncertainty: Regardless of the industry, all companies are susceptible to the negative effects of a global recession During lockdown, Nike had reported a decline in sales and sales can drop further in the future if the recession strikes as hard as predicted by experts III INTERGRATED MARKETING COMMUNICATION PLAN Target Audience The key component for any advertising or marketing strategy of Nike is a thorough customer segmentation, including demographic, geographic, behavioral, and psychographic attributes: - Demographic Segmentation: Age: Nike targets a wide range of age groups This company taps middle-aged consumersb and develops its relationship with younger audiences to ensure future growth and build lifelong brand enthusiast As a result, It became the favorite footwear and apparel brand for teens in 2019 in the US Income: Nike's target audience is typically middle to highincome earners, with a focus on those with disposable income to spend on athletic wear and sneakers Gender: Nike appeals to both males and females - Behavioral Segmentation: Lifestyle: Nike's target audience is active and health-conscious They are individuals who value physical activity and prioritize their health and well-being They are also image-conscious and tech savvy, looking to be ahead of the trends and up-to-date with the latest in fitness fashion and footwear technology - Psychographic Segmentation: Nike's target audience is typically competitive and goaloriented They are motivated by challenge and strive to push themselves to their limits They are also socially conscious and care about issues such as sustainability and social justice, which align with Nike's brand values - Geographic Segmentation: The target market for Nike is located worldwide, mostly in urban centers Nike consistently generates more revenue from North America than any other region In 2021, 39%, or $17.2 billion, came from North America, while revenue from the EMEA region totaled $11.5 Nike earned $8.3 billion from Greater China, $8.3 billion, and $5.3 billion from the LATAM and APAC regions Promotion Objectives (S.M.A.R.T) It is important for any company to establish S.M.A.R.T goals S.M.A.R.T is the acronym for the following: specific, measurable, attainable, realistic, and time-based (“Creating S.M.A.R.T Goals”) Nike is a very successful company, and its social media marketing objectives are closely tied to the overall mission of the company Nike aims to increase revenue by launching innovative and sustainable products, expand its digital capabilities, and strengthen its global supply chain To achieve these goals, Nike has set specific targets improve labor conditions by eliminating excessive overtime in Nike brand contract factories, make all Nike brand facilities, retail and business travel climate neutral, design all Nike brand footwear (more than 225 million pairs per year) to meet baseline targets, and lastly invest in community-based initiatives that use the power of sport to unleash potential and improve the lives of youth Additionally, Nike also targets to generate $1 billion in revenue from sustainable products by 2025, increase digital sales to 50% of total revenue by 2025, reduce carbon emissions by 30% by 2025, and achieve zero waste to landfill by 2025 These goals nike has set, all include the characteristics of the SMART method By setting these SMART objectives, Nike can monitor its progress and make adjustments as necessary to achieve its long-term growth and profitability while being socially and environmentally responsible Message Design Message structure and format: Attention-grabbing tagline: "Just it." Call to action: "Take the first step towards your goals and dreams." Explanation of Nike's products and services: "Whether you're hitting the gym, exploring the outdoors, or simply taking on your day, Nike has the gear to help you push further and reach higher." Value proposition: "Our commitment to innovation, quality, and performance is unmatched." Inclusive language and community building: "Join us in the pursuit of excellence and be the best you can be." Promotion Tools - Public Relations (PR): In public relations, strategic goals include creating publicity, enhancing customer relations and loyalty, promoting the company's brand, and strengthening its image in the clothing business: Nike endorsed athletes such as Michael Jordan, Andre Agassi , John McEnroe, etc to psychologically create a mental bond between the company's famous people and the products to customers Nike has always recruited top performers athletes from all over the world with strong personalities consistent with the brand value The target audience admires and connects their role models as people who have achieved top performance through their individual skills and often identify with them Nike always create a lot of buzz by organizing unique events and bringing together stars on the same field Nike has also launched Nike+ segment of its own, in which indicates more To promote Nike+ applications and fuel band, Nike has organized events very frequently all over the world and as a result Nike running sensor the Blockbuster performance checking to develop with apples have around million Runners now lock on the Nike app to check their performance Nike's Social Networking Sites now all have a large number of followers and visitors Good use of social networking sites is a factor that helps the brand reach customers Nike has also used this strategy to accumulate a large (number of customers who love and support it Instagram is currently one of the social networks with a large number of visitors, Nike's Instagram account is also the most famous account with a large number of followers All Nike products are built with photos on this account for users to follow and observe Nike uses Email Marketing: Email Marketing is one of the forms of Nike's well-known marketing strategy This is one of the ways to win back Nike's reputation and promote the brand professionally - Sales Promotion: To boost demand, this element of Nike’s promotional mix may increase customer engagement, improve product value, reduce prices, and provide additional benefits Sales promotions usually have time limits, such as specific date ranges where special offers are available on a number of athletic shoes However, Nike’s marketing communications mix includes regular sales promotions, in order to continually persuade customers to buy the company’s products Nike Inc uses sales promotions through discounts For example, the business gives single-use 10% discount promo codes to verified students every 30 days, applicable to a large number of sporting goods through the company’s website and mobile app These discounts and special offers are different from the ones that retail companies apply as part of their own promotional mixes Retailers, such as Walmart, Target, and Costco, provide discounts for a variety of shoe brands on special occasions Sellers on Amazon also implement their own limited discount offers for their own Nike product inventories - Advertising: In the advertising, Nike's own target is to achieve the greatest possible impact on large populations of the target audience These ads are usually expensive However, successfully applied a strong brand image of Nike products can reap the rewards and high demand In Nike’s messaging, there is one main ingredient: to “Bring inspiration and innovation to every athlete.” Nike encourages anyone with a body, able or disabled, to maintain sports and an active lifestyle Nike’s advertising campaign used inspirational words like “There’s no finish line.” or “Find your greatness.” to encourage people to go beyond their athletic boundaries They also used the tagline “Just it” in almost every of its campaigns to reinforce the message of motivating people to go chase after their dreams and discover their maximum potential Nike’s advertising barely directly promote their products Most of the highlights in their videos are pointed toward the athletes’ or people’s struggles They create a storyline that everyone can relate to Regardless of status, the struggles are vague enough to instill relevance within Nike’s target audience However, these struggles are also identified carefully so the audience can put themselves into the athlete’s shoes Nike aims at establishing sustainable existence in the market by penetrating more and more people who are interested in its products and hence optimizing its loyal customer base - Nike’s advertising emphasizes five human emotions that everyone can relate to These are: Pain: Nike advertisements show the pain and suffering that every athlete goes through The brand points out the athletes’ struggles and the hardships of maintaining an active lifestyle and excelling in their sport Strength: Once the athlete realizes that he can achieve his dreams if he works hard for them, Nike highlights the power of every athlete This is the stage where the athlete bounces back and trains regularly, with motivation in mind Doubt: In every Nike ad, the brand accentuates doubt in every athlete when facing challenges in life This stage will depict some failures and mistakes that could hinder the athlete’s progress Rededication: The next stage is rededication once the athlete discovers his potential and sees the rewards after achieving his dreams Joy: The final stage is when the athlete triumphs amidst all the hurdles he has to face The happiness and joy are accentuated after reaching their dreams - Nike collaborates with several celebrities and athletes worldwide for an optimum advertisement outcome The brand supports athletes in sports teams, organizations, sports leagues, or collegiate sports team, and has worked with high-profile athletes such as Michael Jordan, Tiger Woods, Maria Sharapova, etc - Nike brings it advertising to various communication media, namely Instagram, Facebook, Twitter, Youtube, Magazines and TV commercials - Personal Selling: For this IMC strategy, Nike uses retail stores for their personal selling techniques They have sales associates in the stores, who are knowledgeable of merchandise and culture of Nike in the sports world and the athleticism The stores offer staff’s help for customers to learn more about the company's products and to purchase these products In some cases, sales staff helps customers to find the right products to promote the Nike Company through personalized service The customer experience has been developed by staff trained to help and persuade sales Customers feel good about buying Nike products They also sell these products which customers feel as having better decisions Therefore, the combination of Nike’s marketing communication while promoting the company's products, improves customer experience and use personal selling to build relationships with customers (Nike marketing communications-mix) Moreover, Nike is continually revolutionizing its store looks to resonate with a new and changing audience Promotion Media Nike employs a diverse array of promotional media within its comprehensive strategy for Integrated Marketing Communications The promotional channels utilized by the company encompass a range of mediums, such as television, print, social media, online advertising, sponsorships, and experiential Marketing Nike has made substantial investments in Digital marketing, utilizing Influencers and User-generated content to effectively engage and foster loyalty with its intended audience With the explosion of Internet and interactive media technologies, online touch points provide a valuable resource to connect with and engage directly with consumers Nike maintains a powerful and consistent brand image across various Internet and interactive media channels, ensuring that the experiences consumers have within their retail stores carry to touch points online (O'Malley,2006) Message Source The messaging strategy of Nike plays a crucial role in its overall Integrated Marketing Communications plan The organization employs diverse communication channels, encompassing prominent personalities, sports figures, specialists, endorsements, and animated personas Nike's advertising initiatives showcase prominent sports figures such as LeBron James, Cristiano Ronaldo, and Simone Biles, and frequently incorporate inspirational statements that promote the pursuit of personal goals and ambitions Total Budget The financial resources allocated to the integrated marketing communications plan of Nike, a prominent global sports apparel corporation, are substantial Although Nike does not publicly disclose its complete advertising and promotion expenditure, approximations indicate that the company allocates more than $3 billion per year towards its promotional endeavors, positioning it among the most significant spenders in the sector This chart below shows Nike's relative advertising and promotion costs from the financial years of 2014 to 2022 (in billion U.S dollars) Nike's promotional and advertising costs include costs of endorsement contracts, complimentary product, television, digital and print advertising and media costs, brand events and retail brand presentation Plan Evaluation The Integrated Marketing Communications strategy implemented by Nike has demonstrated a significant level of efficacy in fostering brand recognition, customer involvement, and allegiance The corporation has successfully utilized its collaborations with prominent sports figures and other notable personalities to develop impactful marketing initiatives that effectively connect with its intended demographic The implementation of motivational messaging and imagery has effectively strengthened Nike's brand ethos of pursuing excellence and striving towards one's aspirations Strengths: Nike's marketing strategy exhibits a notable capability to pivot and adjust to contemporary events and cultural transformations, as evidenced by its promotional initiatives that advocate for sustainability and social justice concerns The company's ability to adapt has enabled it to sustain its relevance and authenticity, particularly among the younger demographic Weaknesses: One possible limitation of Nike's Integrated Marketing Communications strategy is its emphasis on prominent sponsorships and endorsements from celebrities The aforementioned methodology could potentially incur significant costs and potentially impede Nike's capacity to establish a more intimate connection with its customer base Moreover, the enterprise has encountered censure regarding certain promotional initiatives, wherein allegations of cultural misappropriation and exploitation have been raised Maintaining audience engagement and adapting strategies to mitigate potential criticisms will be crucial for Nike moving forward IV RECOMMENDATIONS - Strategic recommendations for Nike to reach success in the future: + Emphasize authenticity: Nike should place more emphasis on grassroots marketing to build closer ties with its customers Such an approach can encourage loyalty, build trust, and promote the brand's image as a socially responsible corporate entity + Diversity in endorsements: Nike's current strategy has been celebrity endorsements However, the company should also consider involving everyday consumers, athletes, and experts in the marketing campaigns, creating more relatable, authentic, and diverse messaging to build a wider consumer base + Leverage Technology effectively: Nike should continue to explore digital media channels and develop creative campaigns which align with the mobile-first era + Expand in new markets: Nike should continue to expand geographically, focusing on faster-growing economies and regions + Adapting messaging: Nike should incorporate new trends seamlessly and reflect these changes in the messaging and product design to remain as the preferred choice for its consumers V CONCLUSION When executed effectively Integrating Marketing Communications provides a valuable tool for communicating with internal and external audiences The IMC concept helps marketers to streamline and maximise the communication process, aids marketers in achieving their strategic marketing objectives and contributes to the development and strengthening of brand identity and equity IMC as a business process guides marketers towards making improved promotional-mix decisions and is valuable in helps to maximise potential returns on investment Based on this assessment of Nike's marketing activities it is clear to see that IMC plays a key role towards improving value for the company Strategies are carefully developed to integrate with and create dialogue with consumers through a variety of important touch points These strategies not only serve to benenfit the continued sales and success for the company but are also designed to form a strong bond with athletic consumers, building on and maintaining the brand's identity and equity