(Tiểu luận) final reportnike company’s integratedmarketing communicationplan

Products and Services Trang 4 Apparel: Nike produces a range of athletic apparel, including tops, bottoms,jackets, and accessories like socks, hats, and backpacks.. The company'sapparel

FOREIGN TRADE UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION

Course: Marketing Communications in the Digital age

Lecturer: Ngo Hoang Quynh Anh

I INTRODUCTION

Integrated Marketing Communication (IMC) is the process of unifyingmarketing communication elements such as public relations, social media,audience analytics, business development principles, and advertising into abrand identity that remains consistent across distinct media channels Itenables public and private organizations and corporations to provide anengaging and smooth customer experience for a product and/or service, aswell as maximize an organization's image and stakeholder relationships Considering this background, a detailed IMC plan analysis of Nike ispresented in the following sections to understand the factors definingsuccess of the brand and its popularity, high brand equity and revenuegeneration among various segments from different markets

II COMPANY OVERVIEW

1 Nike company’s overview

Nike is a multinational corporation that designs, develops, and sells athleticfootwear, 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 amajor manufacturer of sports equipment The company's products are sold underthe Nike, Jordan, Converse, and Hurley brands

In addition to its commercial success, Nike is known for its social andenvironmental initiatives, including efforts to reduce waste and carbonemissions, improve working conditions in its supply chain, and promote diversityand inclusion Nike has also been involved in several high-profile marketing

campaigns and sponsorships, including its long-standing partnership withMichael Jordan and its role as the official apparel provider for the NationalFootball League (NFL).

2 Vision

Nike's vision statement is "To bring inspiration and innovation to everyathlete* in the world (*If you have a body, you are an athlete.)" Thisstatement emphasizes Nike's commitment to designing and producingproducts that inspire and enable all athletes, regardless of their skill level orphysical ability It also highlights the company's focus on innovation andcontinuous improvement, as it seeks to push the boundaries of what ispossible in the world of sports apparel and equipment Overall, Nike's vision

is to be a global leader in the sports industry, empowering athletes toperform at their best and achieve their full potential

3 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 andtechnologies to create high-quality athletic footwear, apparel, and equipmentthat empower people to perform at their best, both on and off the field ofplay Additionally, Nike is committed to sustainability and socialresponsibility, and aims to make a positive impact on the environment andthe communities in which it operates

4 Products and Services

Athletic Footwear: Nike produces a variety of athletic footwear for varioussports and activities, such as running, basketball, soccer, and tennis Thecompany 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'sapparel is designed to be functional, comfortable, and stylish.

Sports Equipment: Nike manufactures and sells sports equipment such assoccer balls, basketballs, golf clubs, and fitness equipment

Digital Services: Nike offers digital services such as the Nike Training Clubapp and the Nike Run Club app, which provide users with personalizedworkout plans, coaching, and tracking tools

Customization: Nike provides the option for customers to customize theirshoes and apparel through its Nike By You service, allowing them to choosecolors, materials, and designs

Retail Stores: Nike operates its retail stores globally, providing customerswith a personalized shopping experience and access to exclusive products

5 Competitors

The main competitors always of Nike are Reebok and Adidas and theirproduct are not entirely different from Nike’s products, as all productsinvolved in the design and marketing of both athletic footwear and appareland for fitness projects but Nike is having differentiation and distinctivecompetency in the area of marketing Nike always creates the consumerbrand awareness and has strong brand power for a long time and also makes

a position in the market Nike is having the no 1 seat which cannot bereplaced by its competitors so easily because of its long-lasting Slogan “Just

Do It” and symbols “Swoosh” and their sports icons are recognizable fortarget audience

There are two great attributes which makes distinctive competency for Nikeare its inability to be replicated and the value or benefit which they offer toits consumers As Nike is the integrated part of the American and worldculture, the brand power is basically increased and difficult to replicate Few

companies have such that image and resources to promote their company asNike do As the motivational Slogan of Nike is “Just Do It” with themarketing campaigns which emphasis the fitness, competition andsportsmanship, consumers having the high quality based products and aspirit of achieving the confidence where younger consumers can get benefitfrom the positive influence (Deng, 2009)

The figure shows the status and market share of Nike and its competitors inathletic market, where it is seen that the Nike has highest global marketshare that is 31% whereas the its major competitors as Adidas and Reebokhave 16% and 6% market share respectively

6 Problems (S.W.O.T)

- Strengths:

Strong Brand Awareness and Brand Value: Brand value of $50.2Billion

Huge Customer base

Aimed For Sustainability

Iconic Relationships

Side Brands: Nike’s ability to maintain and enhance its side brandssuch as converse and Hurley have enabled it to enjoy unparalleledsuccess for decades

Low Manufacturing Cost

In-house Professionals: Nike has a team of professionals that designits shoes and other athletic accessories

Superior Marketing Capabilities

High Market Share: Nike is a market leader in footwear industry Nikehas captured approximately 39% of the global athletic footwearmarket 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 $8.9billion

Lack of Diversification: Nike’s over-dependence on sporting apparel

or lack of diversification is a major weakness The pandemic hasdiscouraged physical interaction and gathering with sporting eventscanceled or postponed

Dependency on North America especially US Market

- Opportunities:

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Emerging Markets: Although Nike already has a presence in manyforeign countries, there is still plenty of opportunities for Nike This isbecause emerging markets like India, China, and Brazil are graduallyflourishing.

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 takenfor better product positioning and greater customer experience

Acquired Artificial Intelligence Start-up

Consumer Direct Strategy: Nike has accelerated the consumer-directstrategy, which means shifting its focus to digital business andsubsequently closing physical stores In fiscal year 2022, 42% of itsNike revenue comes from online sales Clearly, the pandemic isshaping up how Nike interacts with its customers

- Threats:

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Increased competitive pressure: Although, Nike is a dominating theathletic industry, competition, and new emerging brands are stillpotential threats to the company With higher competition ratio, Nikehas to spend more money on marketing and advertising Nike spent

$3.8 Billion specifically on marketing and demand generation in fiscalyear 2022 To overpower competition, Nike’s safest bet is to designinnovative products that are tailored according to the needs ofathletes

Marketing Budget Pressure: Companies like Under Armour , Adidasand Lululemon are spending more on marketing and advertisingcampaigns, increasing the pressure on Nike

Trade Tensions: Nike depends on different markets across the worldevidenced by the recent increase in its stocks rallied by an increase insales in China With China and the US as its biggest markets, a largechunk of Nike’s sales will be threatened if the trade tensions betweenthe two giants escalate

Economic Uncertainty: Regardless of the industry, all companies aresusceptible to the negative effects of a global recession Duringlockdown, Nike had reported a decline in sales and sales can dropfurther in the future if the recession strikes as hard as predicted byexperts

III INTERGRATED MARKETING COMMUNICATION PLAN

1 Target Audience

The key component for any advertising or marketing strategy of Nike is athorough customer segmentation, including demographic, geographic,behavioral, and psychographic attributes:

- Demographic Segmentation:

Age: Nike targets a wide range of age groups This companytaps middle-aged consumersb and develops its relationship withyounger audiences to ensure future growth and build lifelongbrand enthusiast As a result, It became the favorite footwearand apparel brand for teens in 2019 in the US.

Income: Nike's target audience is typically middle to income earners, with a focus on those with disposable income

high-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 prioritizetheir health and well-being They are also image-conscious andtech savvy, looking to be ahead of the trends and up-to-datewith the latest in fitness fashion and footwear technology

- Psychographic Segmentation:

Nike's target audience is typically competitive and oriented They are motivated by challenge and strive to pushthemselves to their limits They are also socially conscious andcare about issues such as sustainability and social justice, whichalign with Nike's brand values

goal Geographic Segmentation:

The target market for Nike is located worldwide, mostly inurban centers Nike consistently generates more revenue fromNorth 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 Nikeearned $8.3 billion from Greater China, $8.3 billion, and $5.3billion from the LATAM and APAC regions

2 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 isthe acronym for the following: specific, measurable, attainable, realistic, andtime-based (“Creating S.M.A.R.T Goals”) Nike is a very successfulcompany, and its social media marketing objectives are closely tied to theoverall mission of the company

Nike aims to increase revenue by launching innovative and sustainableproducts, expand its digital capabilities, and strengthen its global supplychain To achieve these goals, Nike has set specific targets improve laborconditions by eliminating excessive overtime in Nike brand contractfactories, make all Nike brand facilities, retail and business travel climateneutral, design all Nike brand footwear (more than 225 million pairs peryear) to meet baseline targets, and lastly invest in community-basedinitiatives that use the power of sport to unleash potential and improve thelives of youth

Additionally, Nike also targets to generate $1 billion in revenue fromsustainable 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 ofthe SMART method By setting these SMART objectives, Nike can monitorits progress and make adjustments as necessary to achieve its long-termgrowth and profitability while being socially and environmentallyresponsible

3 Message Design

Message structure and format:

Attention-grabbing tagline: "Just do it."

Call to action: "Take the first step towards your goals and dreams."

Explanation of Nike's products and services: "Whether you're hitting thegym, exploring the outdoors, or simply taking on your day, Nike has thegear to help you push further and reach higher."

Value proposition: "Our commitment to innovation, quality, andperformance is unmatched."

Inclusive language and community building: "Join us in the pursuit ofexcellence and be the best you can be."

4 Promotion Tools

- Public Relations (PR):

In public relations, strategic goals include creating publicity, enhancing customerrelations and loyalty, promoting the company's brand, and strengthening its image

in the clothing business:

Nike endorsed athletes such as Michael Jordan, Andre Agassi , JohnMcEnroe, etc to psychologically create a mental bond between thecompany's famous people and the products to customers Nike has alwaysrecruited top performers athletes from all over the world with strongpersonalities consistent with the brand value The target audience admiresand connects their role models as people who have achieved topperformance through their individual skills and often identify with them

Nike always create a lot of buzz by organizing unique events and bringingtogether stars on the same field Nike has also launched Nike+ segment of itsown, in which indicates more To promote Nike+ applications and fuel band,Nike has organized events very frequently all over the world and as a resultNike running sensor the Blockbuster performance checking to develop withapples have around 5 million Runners now lock on the Nike app to checktheir performance