Nike Plus Marketing Plan

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Executive Summary

Nike introduced Nike plus with a narrow target market in mind. They targeted people who where not serious runners, but are health conscious and like to exercise recreationally. With this in mind Nike advertised on certain channels that appeal to an audience in their mid 20’s. They also got media attention from the popular Discovery channel show Daily Planet. Their advertisements can be found in Mens Health Magazine which hits their target market right on.

They designed it in a way that made it easy to use and understand. They did not want to make it too complicated or the average runner would not be interested; they had to keep their target market in mind. The product is simply a chip that fits into your Nike shoe that keeps track of you pace, distance, etc. This chip transfers data to your ipod nano which allows the runner to hear progress made and how far they have to go to reach their goal.

The simplicity of the product allowed them to make the price of their product quite low; but now so low to imply poor quality.


In the 1960’s Phil Knight was in university and had a project where he had make a business plan. Along with the business plan he had to make a marketing plan to go along with it. This business plan composed of the idea of producing shoes in Japan and selling them in the United States. Later on in 1963 Phil Knight decided to give his business plan a try. He traveled to Japan to speak with a company that manufactures shoes that goes by the name of Tiger. Phil Knight was asked who he represented and he made up the name Blue Ribbon Shoes. Phil convinced them to sell him their ‘Tiger’ shoes for that he could resell them in the US under the name Blue Ribbon Shoes. Over the 8 years the Blue Ribbon Shoes broke 1 million dollars in sales. It was at this 8 year mark (1971) he changed the name to Nike and also included the swoosh to be recognizable characteristic. After this the company grew exponentially and over 10 years sales grew up to $270 million. In 1996 Nike got the marketer of the year award which increased it popularity even more. At this point (1996) Nike had hit $6.74 billion in sales.

Environmental Analysis

With the rise in obesity there are more and more people becoming self-conscious about their weight. This is resulting in more people going to gyms and pursuing other ways of getting exercise. This will directly result in more people purchasing the Nike plus who which to lose weight by running.

People these days are wanting to belong to something more than they did in the past. Examples of this are the huge rise in people using myspace, facebook and other social networking site. Nike took advantage of this trend by creating a networking site only for people who have purchased the Nike plus.

Everyone is well aware that right now the economy is doing very poorly and people have less money to spend. This will hurt Nike as a company being as most of their products are at the high end scale of pricing. However, the Nike plus is cheap when compared to similar products. So the downhill economy could in fact help with sales of the Nike plus.

The current trend in this information age is everything becoming wireless. This includes cell phones, gaming consoles, blue tooth, etc. Nike took advantage of this trend by having the chip in the shoe communicate wirelessly with the receiver attached to the ipod nano.

Companies are continuously outsourcing production to other countries in order to be profitable while offering the lowest price. Nike has taken advantage of this. Nike has the ability to move production from one country to another (what ever one has cheapest labour) while only incurring a small cost.

SWOT Analysis

Nike has no set factory that all or most production takes place in. If the cost of labour raises somewhere, then Nike can move its production to another location where labour...
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