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    NIKEFuture footwear Division

    Integrated Marketing Plan

    The new AirMax Custom.future of footwear.

    January 1st, 2019

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    Promotional ObjectivesAlthough orthotics are not a new idea to the shoe market, the concept to have custom molded insoles built into t

    actual running shoe (non removable) is a new idea . To promote this new product for Nike, the three objectives wi

    need to be emphasized: building awareness, creating interest, and providing information.

    To build awareness we hope to target and reach serious runners who regularly par ticipate in half and full-marathon

    Running ads and banners at the race will inform the target market that a revolutionary new product from Nike wil

    allow them to increase their performance through molded insoles. Additionally, this product will be introduced

    through ads in several popular running magazines, and their accompanying websites. Athletic shoes with custom, built-in insoles are the future of

    footwear. It is the new idea that will fuel new interest in the

    product. The more knowledgeable and well informed the

    target market is, the more sparked their interest will be.

    Booths will be available at races and inside retailers to create

    interest in the new product and allow new customers to

    experience the molding process. This will tie in with the tradein promotions. Interest is automatically created when people

    begin to see others experience the product for themselves.

    Public displays, especially where real people are interacting with

    a new process like molding shoes to their feet, get lots of

    attention.

    To provide information, customers will be informed through

    informational booths, through informative and sponsored

    reviews of the product, and through the Nike website. Information about the product, especially clarifying the need

    and benefits that it presents to the consumer, will be the main focus. Nike is currently one of the most well known

    shoe brands in the world, so this innovative change to current running shoe technology will set them apart from thcompetitors. Nike running shoes are considered more of a stylish shoe opposed to a performance shoe. Introduc

    this inventive and original style of shoe that is specifically intended to help the customers running will put Nike run

    shoes above their competitors and will be taken more seriously as a performance shoe.

    Promotional Booth

    The current promotional objectives will closely

    follow the recent successful release of the Air

    McFly shoe, project by the Future Footwear

    Dept. Taking design and promotional cues from

    the Air Mcfly launch will add confidence to the

    launch of the Air Max Custom.

    Original Air McFly concept (1989) New Air McFly (2019)

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    Client Nike (Future Footwear Division)

    What is being promoted?A new running shoe from Nike called the Air Max Custom. This shoe has custom moldedinsoles built in, and will be categorized under the new Nike slogan Future of Footwear.

    Overall promotional objective?We want people to buy our new custom shoe. Create awareness of a new conceptproduct designed to improve performance. A revolutionary product using newly acquired technology (Custom Kicks) to lea

    the future of the footwear industry. The objective is also to test the reception of the product in the running market, and to

    expand into the other shoe segments in the future.

    Positioning statement?We are positioning our product as ashoe that is customized to the individuals foot with our insole built

    in. We are changing the way a shoe is built, attempting to define

    the future of footwear. The new technology used in the shoe

    increases performance with its use.

    Target customer? Half and full marathon runners. Men andwomen in their late thirties, early forties,. Generally well educated

    running enthusiasts that value the quality of their shoe. They are in

    good health, and in general like to feel youthful. These customers

    have more disposable income and often pay more for running

    shoes and buy from specialty stores.

    What do they currently think about the product/service? Because this product uses a new, recently acquiredtechnology, they are unaware of our product. They respect Nike as an established brand and also recognize the innovation

    the company. They think that Nike shoes are a good shoe but not necessarily the best running shoe. Our target market ha

    the impression that Nike shoes are more for the younger generation and that they are flashy.

    What should they think of the product after seeing this advertising? They should desire to buy the shoe to

    benefit from its performance enhancing technology. We want them to realize the advantages of having custom fit shoes tha

    have been molded to their feet. They should view the product as a necessary premium and that this shoe is the future of

    performance footwear.

    What do we want them to do after they see this advertising? We want them to act on the perceived need, a

    to purchase our shoes. We want them to re-think the kind of shoes they use for running and realize we offer a superior

    product.

    What tone should the creative have? Our tone is professional, educational, and youthful. This product is based on

    customized performance. We want them to buy our shoe because it is the newest and greatest shoe.

    Creative Brief

    Did you know?In a national running survey, of the people that were

    considered running enthusiasts (ran at lease 4 t imes and

    miles/week), their attributes were:

    78% were college educated

    the average age was 38 years old, 44 years old for men

    most trained for half marathons

    staying in shape was their biggest priority

    Women on average bought 3 pairs of running shoes per

    year.

    59-64% spend $90 or more on their shoes.

    Between 43-50% purchased their shoes from a specialty

    store

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    Media Plan

    Men and women that run more

    than 100 days per year

    College/health Educated

    Income of $75,000 or more

    Run to stay in shape, concerned

    about health

    Have a goal of running at least one

    marathon

    Well informed about running

    shoes, usually spend over $100 per

    pair

    Purchase multiple pairs of running

    shoes per year, focused on quality

    and support of shoe rather than

    style

    Promotional Tools

    The most effective way to target our demographic will be through

    three channels: Print ads in running/health magazines, promotions atmarathons and running events, and online banner ads shown on

    websites for runners. We chose these three tools because they

    generate high traffic, specifically by those in our target market. A high

    percentage of these people are interested in products to help

    enhance their running performance. The cost will be effective because

    every ad we run will reach the maximum demographic at the best

    price.

    Reach Objective

    We plan on launching our print ads in various running and health

    magazines, having our ad appear in each monthly edition. This will a

    us to reach 32 percent of our market for the first and last three m

    of the year. During the first three months, we want to create awar

    of our product and create a hype before the April launch. Starting

    April we will begin targeting the 10 most popular marathons (from

    to December). We plan to reach 40 percent of the target market

    (present at the events) throughout the eight month period; each ev

    will reach about 450,000 persons in our demographic. The interne

    banner ad will run on various health and running websites for the f

    year which we expect 18 percent of our market to view each mon

    This is cost effective because these sites are updated daily, and bring

    high volume of daily traffic from their users. The last three months

    will re-launch our print ad in the same magazines to keep the prod

    fresh in the minds of our target market and reiterate the importan

    having the shoe while preparing for future marathons.

    Target Market

    Participation in Running is the highest in the last 20 years

    32 Million total runners, up 10% from 2005

    8 Million frequent participants, up 15%

    Outpacing other sports in the past 4 years

    Over 10 million race participants, up 10% over last year.

    (Source: Runnersworld Media Group - RunnersWorld.com)

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    Frequency Objective

    For our magazine ads we plan for our demographic to view the ads at

    least four times in each four week period that the ads are run. This is

    effective because the ad would only need to be run in six different edi

    of the magazine. This would reduce the advertising cost by half while s

    receiving a high number of views. The online ad will reach the target

    market at least three times a week. It will be worth the investmentbecause the sites are frequently viewed daily by our target market.

    Targeting the event spectators and participants will reach at least 400,0

    people in our target market per event. In 10 events we will be able to

    reach 40 percent of the target market. This will hit the most importan

    group of our target demographic, the serious, competitive runners.

    Media Scheduling Tactics

    Our biggest advertising campaigns will start in

    April and end in December. These months are

    when marathons and running events are the

    most well attended. Having the core of our

    marketing budget focused on one place allows

    us to be efficient with our advertising costs. The

    magazine ads will be run January through March

    before the running events in order to hype the

    product and create new awareness. Near the

    end of the events (the last three months) we will

    launch the magazine ads again to keep the idea

    fresh in their minds as they train for the nextyears races. The online ad will run all year on

    popular running and health websites because it is

    cost effective and runners frequently look at

    those sites for health tips and updates on events.

    Pre aunch Post lau chJan Feb Mar Apr May Jun Jul Aug Sep Oct Nov

    Internet banner

    Runners World

    Mens Health

    Womens Health

    Fitness

    Boston marathon

    New York

    Honolulu

    Chicago

    Walt Disney

    Indianapolis

    Nashville

    Phoenix

    San Antonio

    Las Vegas

    Ti e li e or dverti ing

    43,250

    20,321

    33,475

    14,927

    30,281

    22,92022,111

    20,077

    17,880

    New YorkHonolu lu

    Chicago

    Wal t D isneyInd ianapol isNashv i l le

    Phoen ixSan Anton io

    Las Vegas

    Marathon/HalfMarathonAttendance2009

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    Our ad will be a full page ad in color, which we will run in variousmagazines that appeal to runners. In the Mens and Womens health magazines

    we will place our ads around cardio workout ads and those having to do with

    marathons and runners. In the runners magazines we will not seek particular

    adjacency because everything in the magazine appeals to runners. Our largemarketing budget allows us to purchase full page color ads as opposed to

    smaller black and white ads. Mens Health magazine has readership of 1.6

    million readers, Womens health 11 million, Fitness magazine 1.1 million,

    Runners world 500,000. The rationale behind the Runners world ad is that a

    large majority of target market reads this magazine. Mens health subscribers

    are youthful and fitness oriented, as is the readership of the Womens health

    magazines. Fitness magazine focuses on people who create a lifestyle around

    being fit and running is a big part of that.

    Mens Health readers are active, successful, professional men who want greater control over their physical, menta

    and emotional lives. They are looking for in-depth reporting on everything from fashion and grooming to health

    and nutrition, as well as cutting-edge gear, the latest in entertainment, and more. Our product appeals the

    readership of Mens Health, in that we are offering cutting edge footwear for men.

    The Womens Health brand is created for the woman who sees being healthy,physically and emotionally, as her edge. Their readers are women who want to do

    more, have more, and be more. It is a magazine that helps women stay on pace in

    their lives with practical advice on nutrition, fitness, relationships, style and beauty

    and much more. We will target Womens Health subscribers that are looking for

    practical advice on fitness; this is where we hope to reach runners that our shoes

    would appeal to.

    Runners World brings advice on new running techniques, introduces the latest

    running products and national and international race information. It includes

    strategies, tips and advice to fuel performance, prevent injuries, burn fat, shedstress, and achieve personal goals. Runners World is filled with the powerful

    information that helps people run faster and far ther and have more fun doing it.

    Fitness Magazine is a woman-oriented magazine that presents a practical and realistic guide to maintaining a

    lifestyle that's healthy for the body, mind, and spirit, complete with everything from exercise and dieting tips to

    advice on beating stress. Each issue contains helpful information such as pointers

    on beautifying oneself naturally, reviews of health and beauty products, and

    strategies for eating smar t, getting the proper workout, and keeping your life in

    balance, both physically and emotionally. We will target fitness subscribers who

    value new ideas on exercising and proper workouts..

    Magazine Plan

    11,000,000

    1,000,000 1,100,000500,000

    Womens Health Mens Health Fitness Runners World

    Magazine Viewership

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    The outdoor media plan will include sponsoring events such

    as half marathons and full marathons where booths will be s

    up displaying the new concept product. This is important to

    do because much of the target market is serious aboutrunning and are likely to participate in these types of events

    great numbers. The booths will be supplemented by physica

    banner ads, along with product and company logos on event

    staff and participant shirts and merchandise.

    Besides our outdoor media, a year long internet advertising

    push will be critical. Banner ads will be run on

    Runnersworld.com, Menshealth.com, Womenshealthmag.comand Fitnessmagazine.com. These websites will be targeted in

    order to reach those who use the internet as a daily source

    information, rather than subscribing to a magazine. These ad

    will also tie in with the print ads in their corresponding

    magazines, should the consumer use both. This tie-in could

    create double the awareness. Using internet advertising ove

    TV is more logical because in general runners do not watch

    as much TV, and the chances of reaching them when they do

    is slim. The target market generally reads more online

    material and par ticipates in marathons; therefore it would bemost effective to reach them through these methods.

    Outdoor Media Plan / Internet Banner

    Monthly Hits per Website

    960,000

    2,400,000

    785,000

    1,200,000

    Womens Health

    Mens HealthFitness

    Runners World

    2009 Nike Womens Marathon Banner

    2009 Nike Womens Marathon Truck Wrap

    Sample Booth

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    Budget

    Pre-2020 Nike Air Max Custom Marketing L unch BudgetShoe Sales $15,000,000,000.00

    Running Shoe sales $2,250,000,000.00 15%

    Running Marketing Budget $157,500,000.00 7%

    New Line Advertising $9,604,983.00 6%100% $9,604,983.00

    Magazine First Quarter Pre launch 4th Quarter Post launch Total

    Runners World $377,514.00 $377,514.00 $755,028.00Mens Health $559,365.00 $559,365.00 $1,118,730.00

    Women's Health $507,435.00 $507,435.00 $1,014,870.00Running Times $444,000.00 $444,000.00 $888,000.00

    $1,888,314.00 $1,888,314.00 $3,776,628.0039% $3,776,628.00

    6 months online ad 728X90 ad size 12month

    Runnersworld.com $486,000.00

    Menshealth.com $1,281,340.00

    Womenshealth.com $876,980.00

    Runningtimes.com $1,120,900.00

    39% $3,765,220.00

    Full Marathons Runner Sponsor Race Sponsor Total

    Boston marathon 20,000 240,000 260,000

    New York 20,000 237,900 257,900

    Honolulu 20,000 212,300 232,300

    Chicago 20,000 210,345 230,345

    Walt Disney 20,000 205,400 225,400

    100,000 1,105,945 1,205,945

    Half Marathon Runner Sponsor Race Sponsor Total

    OneAmerica, Indianapolis 20,000 198700 218,700

    Country music, Nashville 20,000 148900 168,900

    PF Chang's Rock, Phoenix 20,000 138890 158,890

    Rock n Roll, San Antonio 20,000 149800 169,800

    Rock n Roll, Las Vegas 20,000 120900 140,900100,000 757190 857,190

    21% 200,000 1,863,135 2,063,135

    100% Marketing Total $9,604,983.00

    Maketing budget $9,604,983.00Magazine Print Ads $3,776,628.00Online Ads $3,765,220.00Full Marathons 1,205,945Half Marathons 857,190

    Magazine Print Ads39%

    Online Ads39%

    Full Marathons13%

    Half Marathons

    9%

    Budget Spending by Category

    Runners World20%

    Mens

    3

    Women's Health27%

    Running Times24%

    OneAmerica, India$218,700

    Country mus$168

    PF Chang's Rock, Phoenix$158,890

    Rock n Roll, San Antonio$169,800

    Rock n Roll, Las Vegas$140,900

    Boston marat$260,000

    New$257

    Honolulu$232,300

    Chicago$230,345

    Walt Disney$225,400

    Runnersworld.com

    20%Menshealth.com

    30%

    Womenshealth.com27%

    Runningtimes.com24%

    Online Advertising

    Magazine Ad Distribution

    Half-Marathon Costs

    Full-Marathon Costs

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    Print Advertisement

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    Internet Banner Ad

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    Sales PromotionConsumer Sales Promotion:

    The consumer sales promotion will offer thirty five dollars off to anyone that brings in their old shoes. The old

    shoes will be donated to shoesforhumanity.org, a non-profit organization that recycles shoes for the needy in thirdworld countries. This is not only more sustainable and socially responsible, but will help improve our company

    image. The promotion also symbolizes the idea for the customer that the new Nike shoe is replacing the old

    technology of the shoes they just donated. They will feel good about saving money and helping others, and be

    more excited about the product. This suppor ts the positioning statement by reinforcing that the new shoe will

    replace old technology by literally replacing their old shoe. This promotion will last for the first 3 months after the

    release date of the custom shoe.

    Trade Promotion:

    There will be a promotional sale for retailers, specifically the buyers for individual stores and specialty chains. The

    objective will be for these buyers to take advantage of the bulk discount and to sell the product in their stores as

    soon after launch as possible. These contracts will be negotiated through stores already carrying our product, the

    process beginning in January, four months before launch. Our promotion will include discounted prices on bulk

    orders of at least 100 pairs of shoes. The retail price for the shoe will normally be $120 and our regular price to

    retailers will be $90. If they decide to carry the product in the first three months after release they will get a speci

    rate of $80 per pair instead of $90. This will save the retailer $1500 on every order of 100 pairs of shoes.

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    Contact: Marty McFlyNIKE, INC.Phone: (800) 344-6453Fax: (503) 389-7523

    One Bowerman Dr.Beaverton, OR 97005www.nike.com

    NIKE

    PRESS RELEASENike, Inc. Announces New Air Max Custom

    After acquiring custom insole technology from orthotic startup Custom Kicks, Inc., Nikeannounces new running shoe offering customized, built-in insoles.

    Portland, January 1, 2020: Nike, Inc. today announced that after last years acquisition of Custom Kicks, Inc.

    a new Air Max running shoe will be released utilizing new high-end customizable insoles. Custom Kicks,

    based out of St. George, Utah, had specialized in custom orthotic insoles distributed through medical and

    retail channels .

    The new running shoe combined with the customized insole will be called Air Max Custom. This innovative

    running shoe will be different then anything else that has been or is on the market currently. Each running

    shoe purchased by the customer will have the built-in insole molded to their foot at the time of fitting/

    purchase. The planned launch date for this new running shoe will be April of this year.

    Nike is planning to release this product to any retail chain or specialty store in their current supply chain, and

    will take applications from other interested distributors through the typical application process. Promotional

    deals have been discussed between Nike and shoe distributors and retailers. Explicit, but fairly easy training

    will be required for the employees of each store selling the Air Max Custom. Training will involve heating the

    insoles and properly molding them to customers feet; a quick process that takes approximately five minutes.

    Speculation about a new revolutionary product from Nike have swirled since the acquisition of Custom Kicks,

    Inc. a year ago. We are excited to finally be able to bring to market the technology acquired from Custom

    Kicks. We are pleased to offer such a revolutionary product to serious runners, and we are looking forward toexpand this new concept to all of our lines of shoes in the future. We believe that this product is the future,

    and will bring podiatrist-level comfort and support that has not been available up until now. " says VP Marty

    McFly.

    Nike anticipates that serious runners will convert from their current running shoe to the Air Max Custom

    because of its unique technology. Runners can count on increased performance and comfort by having a

    shoe that is not just the right size, but custom molded specifically to their foot.

    FOR RELEASE 9 A.M. PST, JANUARY 1, 2020

    Public RelationsNike plans to release a press release to top newspapers, running magazines, and radio stations

    throughout the U.S. We think they will run our story because Nike has changed the way shoes

    are built forever. They are beginning to offer a new, innovative product that no one else has yet

    introduced to the retail world. Orthotics and running shoes exist, but combining the two at

    such an affordable price is completely new to the market.

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    Appendix

    Group Ideation Session

    Participants: Amanda, Michael, Rob, Aaron, Charles

    Discussion Leader __Jake___________________

    Scribe ___Amanda__________________

    1. Review the Creative Brief to provide direction.2. Generate big ideas-(Dont evaluate them, just generate them). Record all ideas here, with just enough

    detail to help others recall them at a later date. Use additional paper as necessary.You should comeup with at least four or five big ideas which should include following:

    1) Tag line or synopsis of the big idea Lead the pack

    What is holding you back Enhance performance Are you wearing the right shoes The future of footwear 2) A brief description of the concept A man leaving his house to run. Takes a path in the woods where he subsequently is chased by a

    raging pack of wolves. He is ahead of the pack and at the end of the advertisement it cuts to a scene

    with the same runner crossing the finish line.

    Athletes of different sports wearing shoes that do not go with that spor t. For example, a tennis playerwearing baseball cleats, a boxer wearing tennis shoes, a basketball player wearing golf shoes. Then we

    will have the punch line come in that says, Are you wearing the right shoes

    A man attempting to run with a ball and chain attached to his foot. It will show the man running andbecause he does not have custom shoes he is being held back. The punch line will be What is holding

    you back and then we will show their shoes.

    The future of footwear will show shoes from the 70s 80s and 90s and then show our shoes in 2020.It will show the future of footwear by showing runners from each year wearing the shoes popular in

    their era. Our punch line will be The future of footwear, shoes customized to your foot

    A guy running to the edge of a cliff and flying over the drop off. It will be unrealistic but designed toshow how our new shoe enhances individual performance. This marketing campaign has legs in that

    we can continue using unrealistic things that show performance. Another example would be a scene

    where a guy runs through a flash flood and the rest of the runners stop and do not go on. Punch line

    is Enhance your performance with custom kicks

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    Group Synthesis Session

    Date: 11-9-2010Participants- Amanda Dimick, Michael Norgrant, Jake Fullmer,

    Aaron Hildreth, Rob Staples, Charles Holloman

    Time: 3:00 pm

    Place: Smith 340

    Discussion Leader: Jake Fullmer

    Scribe: Amanda Dimmick

    1. Ask all participants to select their top three ideas from the idea session - based on Positioning, TargetAppeal, Attention, Retention, and Accomplishment of objectives. Lead the pack, a person with our

    special shoe with the orthotic leading the pack. Wearing different shoes soccer player with golf cleats.

    Breaking free, a weight on his foot or something holding him back. Clown shoes. The evolution of

    footwear from the 70s to 2000s, the future of footwear.

    2. Can you combine elements of different ideas or modify them to be more on strategy? Firm up &flush out ideas before proceeding. Leading the pack is our main idea thus far.3. Now systematically evaluate all ideas remaining, according to the following criteria. I suggest using a

    scale of 1 -5 with 5 being the best.Idea Conveys

    Position

    Target

    Appeal

    Gets

    Attention

    Accomplishes

    Objective

    Memorable Has

    LegsTotals

    Leading the

    pack3 3 5 4 5 3 23

    Clown Shoes2 3 3 2 4 3

    17

    Breaking Free

    3 3 3 2 3 2

    16

    WearingDifferent shoes

    3 3 4 3 3 2

    18

    Future of

    Footwear

    4 4 5 5 4 5

    27

    4. Choose your big idea. Which satisfies all 6 criteria above? If none, can one be improved? The Future of Footwear is our big idea.