Nike Air Force 1 Marketing Plan.pdf

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 an

Group 3 - IB 1802

Pham Hoang Minh Long Nguyen Bach Kim Ngan

Du Kha Minh Phan Thi Xuan Nhi Cao Thach Tuyet Phuong

Le Vinh Khanh Huyen

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- SS180697

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Subject: MKT101

NIKE Air Force 1

Marketing Plan

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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◀ BACKGROUND

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

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)

👟 PRODUCT INTRODUCTION

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

🎯 GOALS

Attracting and retaining loyal customers: Recognizing the tremendous amount of force

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

Increase sales: Implement advertising campaigns, promotions, and collaborate with

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

🔎 SWOT ANALYSIS

Brand recognition : Nike has good brand

recognition globally, and the Air Force 1

is the most iconic one of their sneaker

models

Product quality and design: The product a

great durability and comfort and comes

along with great classic and timeless

design, which appeals to a wide range of

customers

Customization: The Air Force 1 is also

customizable with a variety of options,

allowing customers to design their own

Collaboration: Nike can explore

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 its full potential yet

Digital marketing: With the intense growth of

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

Higher price point: Compared to some

other sneaker brands, the Nike Air Force

1 quite expensive, which deter

price-sensitive customers

Little innovation: Nike Air Force 1 has a

classic design and remains popular over a

time, it has limited updates and

innovation compared to some other

Nike’s sneakers

Competitive market : There are a lot of

other sneaker brands and models

competing with Nike Air Force 1, which

potentially reduce the market share

Counterfeit product : Due to its popularity,

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

Intense competitive : With the large market of

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

Consumer preference : Consumer preference

can change over a time

🗺 MARKETING ENVIRONMENT

Microenvironment:

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 product display, availability, and pricing strategies

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

Macroenvironment:

Demographic: Adapt marketing strategies to target emerging consumer segments, such as Gen Z or urban fashion enthusiasts

Economic forces: Bring engagements through discounts, value bundles to drive sales and attract price-sensitive customers

Natural forces: Use sustainable and eco-friendly materials to manufacture the Nike Air Force

1, promote the product’s environmental friendliness to environmentally conscious consumers Technological: Get use of technology to improve marketing effectiveness, customer experience through personalized marketing message or artificial intelligence chat-bot Culture force: Collaborate with influencers and brands to create culturally relevant marketing campaigns for the product

🏅COMPETITIVE ANALYSIS

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 in over 120 countries With 6,000 employees, it achieved $4.4 billion in global revenue in

$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

🎭 CUSTOMER

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

higher-income consumers with a

sports-focused lifestyle, image

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)

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)

🏼 PRODUCT SEGMENTATION

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

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

Demographics: This next Air Force 1 will be marketed to businessmen and successful

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”

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 status-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

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 when launching 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

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

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

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

💾 MARKETING MIX

PRODUCT

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 with Nike 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

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 will range from $95 to $110 Nike offers a price difference from $10 to $20 because the quality of each shoe will match the price customers have paid to own them Moreover, Nike will release items 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

PLACE

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

PROMOTION

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