NIKE, Inc. designs, develops, and markets footwear, apparel, equipment, and accessory products for men, women, and children worldwide. This marketing plan focuses on NIKE Golf and our market segments and the strategies we are using to gain more Hispanic customers and create consistent revenue growth in this area. Our specific focus on marketing NIKE Golf to the Hispanic community comes from the fast-growing buying power of Hispanics. Our marketing plan will meet those growing demands and give us a bigger advantage over our competitors because we will be targeting and educating the Hispanic population on the importance of golfing with NIKE products, alongside the advertising revenue that Tiger Woods already brings to the company. This marketing plan stands to reach even those Hispanics who are not normally interested in golf, redirecting their disposable income toward engaging in more leisure golf time. The funding of our marketing strategies will come from our marketing budget allocated for new marketing strategies in 2011. Target Market
The US Hispanic market size is about 43 million people, with a buying power of $750 billion. They are the fastest growing minority and they account for 15% of the total US population. According to the National Golf Foundation, 5.4% of Hispanic-Americans actually participate in golf, compared to 14.5% of Whites that participate in golf. The largest group of Hispanic-American golfers is between the ages of 18 and 29; therefore this is our main target market. Competitors
Callaway Golf is a market leader in almost every golf equipment category. In contrast to our marketing strategy, Callaway focuses more on brand loyalty and the introduction of innovative technologies. About three percent of its annual sales are spent on product design and development. TaylorMade-adidas Golf is steadily increasing its North American golf product sales – specifically the production and sale of metal woods. This company makes the number one driver used in the PGA Tour. This growing strength will gain the confidence of North American consumers to follow the brand through new innovations and marketing initiatives. Marketing Objective
Increase the percentage of Hispanic customers purchasing NIKE Golf products from 5% of the world population to 10% by the end of 2013. Below is a table displaying our opportunities in the areas of market research, global pricing, and in advertising. As we implement these ideas in 2011, it will grow our revenue and profit, as well as the number of people within the Hispanic community who become loyal customers of NIKE Golf.
Start DateCompletion DateBudget
1.Hire a market research firm familiar with Hispanic buying trends, specifically the booming market of Hispanic consumers in the US. Determine what factors motivate their golfing habits and golf brand purchases. 2.Conduct focus groups in highly populated Hispanic areas of the US to get feedback on our existing products, as well as our prototypes. Global Pricing Strategy
1.Determine price points for our Latin American and Mexican product offerings that are properly adjusted for regional buying power, competition, and currency valuation. Advertising and Promotion
1.Sponsor regional sporting events for professional, amateur, and collegiate teams. Include sponsorship/advertising of the 2016 Rio de Janeiro Olympic Games. 2.Run advertisements in the most popular forms of regional media: television, newspaper, magazines, billboards, and/or radio. 3.Offer rebates and discounts for certain late-model shoes to encourage sales and inventory turnover. 4.Conduct fashion shows at top retail venues to display our latest merchandise offerings to consumers and the media. 1/1/11