Integrated Marketing Communications Plan
Nike is a seller of athletic footwear and apparel with retail stores and distributors in over 160 countries around the world. Nike creates goods for a wide range of sports, and so they have competition from every sports brand there is, like Reebok and Adidas. With revenue of $15 billion in 2006 and the largest market share in the footwear industry, Nike, Inc. (Nike) is the leading company in the sports and fitness industry.
Our Product (Nike+iPod)
Nike and Apple formed branding alliances, hoping to utilize each other’s popularity and reputation to increase the sales of their own products. (Proudfoot, 2006) The first product launched by the companies is Nike+ iPod Sport Kit (Sport Kit), which is a wireless system that allows certain designated Nike shoes, Nike+, to send data to an iPod Nano. As the users begin exercising, information on time, distance, calories burned and pace is stored on the Nano (Mossberg & Boehret, 2006). This co-branding effort generates several benefits for both parties. Firstly, this ground-breaking product will reinforce each company’s image as innovative and increase their brand equity. Also, the Sport Kit can invigorate and stimulate sales in the mature market for both companies (Anonymous, 2006).
This report is a strategy statement that offers a general overview on the dynamics of the industry regarding Nike + iPod’s target market, positioning, competition, SWOT analysis, big idea, and the media used to assist the company increase its’ market share and sales through the product of Nike+ iPod Sport Kit and Nike+ shoes by the end of 2008.
Our campaign is designed to announce the launch of our new product Nike+iPod (Sport Kit), which is a wireless system that allows certain designated Nike shoes, Nike+, to send data to an iPod Nano. Nike is committed to bring inspiration and innovation to athletes. It positions itself as having cutting-edge technology while enhancing athlete’s competitiveness.
The current target market for the product Nike + iPod are elite runners, who are more likely to purchase shoes from the running brand, such as New Balance and Asics. Therefore, it is a narrow target market, in which Nike may confront barriers as most of its sales are generated from the general sports market instead of professional athletes. Therefore, the current target segment is not large enough to generate sales or potential future growth. As a result, we believe that the current target segment of elite runners should be redefined and expanded to include sport fashionistas, technology savvy footwear customers, and people who are interested in sports in general. This would make the product appeal to a broader general public and increase sales potential. This new target market would be defined as sportive adolescents to early boomers of both genders living in the United Arab Emirates, who love music and love anything that incorporates music into their daily life. These people’s new best friend is their iPod; they carry it with them everywhere, love to escape boredom by listening to music. They love to show off their gizmos. They are laidback and like to look or be “cool” and have a great outlook for what is “in style”. These people watch MTV and are up to date with the charts and read teen magazines (for females) and sport magazines (males).
Due to the size and diversity of the products, the company deals with; Nike has to rely on various marketing strategies. Much of initial Nike success was due to local grass-roots marketing. Nike uses differentiated marketing for majority of the product ranges. This marketing strategy provides for products that have like-for-like products provided by competitors such as Adidas and Reebok. These market segments have substantially matured, due to which Nike does not need to focus on positioning these products in innovative...