Nike Energy Bar PR Proposal

Sheri Shannon

Southern New Hampshire University

Executive Summary

Nike, Inc. is the world’s largest sports and fitness company. Since its inception in 1964, Nike has been committed to its customers by using the latest technology to provide high performing products for athletic and recreational use for kids and adults. Now, the company is embarking on a new endeavor in launching a new product in the health and nutrition market – Nike Energy, a performance energy bar. Nike’s brand positioning dominates its category in the market and allows the company to capitalize on being able to launch brand extensions. Through the public relations “Next Level” campaign, Nike’s brand messaging will associate the company with health, nutrition and well-being, and create a new position for Nike in the energy bar market.

There are currently more than 28 million consumers of nutrition bars, and that number will increase because the sports nutrition market keeps growing. Launching a new energy bar is an opportunity for Nike to expand its brand and offer additional high-quality products to help consumers reach the next level of achievement. To successfully launch a new energy bar, Nike must tap into its current brand audience of fitness enthusiasts, but also expand its message to appeal to active women and recreationists. This will involve marketing the new energy bar to excitement-seekers, fitness-driven athletes, getaway actives and health-conscious sociables.

There are many practices and strategies that can be used to promote and launch a new product. The Next Level campaign is centered on using a bonfires and fireworks approach, aimed at getting opinion leaders on-board early, increasing SEO through content generation and using social channels to generate buzz throughout the duration of the campaign. Using key messages through traditional, digital and media channels, the communication output of the campaign should create product awareness and change the attitudes and behaviors of consumers so they take action and purchase the energy bar.

Situation Analysis

Nike, Inc. is the world’s largest sports and fitness company. The company that was started by University of Oregon track coach, Bill Bowerman, and middle distance runner, Phil Knight, originally producing shoes for track events, is now “just shy of becoming the definition of sports themselves” (McNaney, n.d.). Nike designs, develops, markets and sells high quality footwear, apparel, equipment and accessories for athletic and leisure purposes (“Nike”, 2014). Since its inception in 1964, Nike has been committed to its customers by using the latest technology to provide high performing products for athletic and recreational use for kids and adults. The company’s mission is to “bring inspiration and innovation to every athlete* in the world” (Nike, n.d., para.1); and according to Bowerman, “If you have a body, you are an athlete” (Nike, n.d., para.1). Nike’s brand of winning, performance, dominance, innovation and authenticity is one of the best represented and culturally understood companies in the United States and around the world of sports (McNaney, n.d.). It is due to strong brand positioning that Nike continues to lead the pack.

A brand is “based on culture, attitude, service, and the quality of that service” (White, 2012, p.5). A strong brand needs personality, presence and three basics: consistent delivery, a distinctive product, and an alignment between communication and delivery (Larson, 2011). As Nike has matured over time, their brand has evolved from being product-focused to one that is about an attitude. Nike is a vanity brand, relying on ego and selling consumers on the idea of staying on top of their game, contrary to relying on demonstrating how a product helps to achieve a key goal or solve a problem (Newell, 2013). This type of emotional marketing sets Nike apart from its competitors who sell similar products. When companies like Under Armour, Puma and New Balance started to offer innovative athletic shoes and apparel worn by professional athletes, Nike moved into selling an idea, to “bring inspiration” to their products. By utilizing celebrity endorsers like Michael Jordan, Tiger Woods and Derek Jeter, Nike has created a superior value to represent their brand (McNaney, n.d.). Nike’s branding strategy succinctly communicates the company’s message, where it colors, typography, swoosh logo and tagline, “Just Do It” all clearly identify the DNA of the company (Arnett, 2006).

a. Brand Position

Nike is positioned as an “exciting, spirited, cool, original and aggressive purveyor of athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities” (Haley, 2011, p.1). The athletic company focuses on “providing a consistent message to its customer base by sticking to its formula of partnering with famous athletes which reinforces its theme of producing high performing products and value” (Larson, 2011, p.10). Nike’s strong branding position is like having moats around the company, limiting new business from competitors (Mourdoukoutas, 2014). A strong reputation equals strong brand equity, and Nike is able to capitalize on being able to launch brand extensions because new products are more likely to be accepted than those of competing, lesser-known brands (Haley, 2011). Nike’s dominance in the fitness market puts the company in a strong position to launch a new product in the health and nutrition market with a performance energy bar.

“Nike’s brand of winning, performance, dominance, innovation and authenticity is one of the best represented and culturally understood companies in the U.S. and around the world of sports.”

Gap Analysis

Nike’s brand credibility and authenticity is pivotal in marketing a new product in a market outside of athletic-wear. Introducing a new energy bar with products such as Clif Bar, LUNA and PowerBar already on the market, will require for the Nike brand to integrate selling a new product along with the attitude. In order for Nike to enter the energy bar market, the company needs to have a brand image associated with health, nutrition and well-being. This is where the athletic company can use their strong brand image and make improvements in messaging so the public views them as a wellness company. Other energy and nutrition bars may appeal to health and nutrition in a natural and organic way, but Nike is not that type of brand. They are about health and nutrition that gets people moving in a way that is enjoyable and fun. Nike’s best option is to use messaging that associates the brand with being a leader in the sports and fitness world, and providing a product that will help all athletes boost endurance and succeed in being active. With a research lab that is an integral part of gaining scientific insight into understanding athletic performance, using technology such as copper sweating mannequins and skin humidity sensors to measure muscle strength (Nike, n.d.), Nike is in an excellent position to use its resources to produce an energy bar that replenishes and refuels athletes.

a. Market Trends

Nike is a company of growth. Nike continues to design, produce and sell high-quality performance gear and lifestyle products to inspire athletes to reach their full potential. There are more than 28 million consumers of nutrition bars, and that number will increase because the sports nutrition market keeps growing (ReportBuyer, 2014). ReportBuyer (2014) published a market research report that identified trends influencing the sports nutritional market and factors affecting growth of sales through 2017. The report shows that women dominate the market for nutrition bars and individual fitness buffs, with fitness walkers as the single largest segment, generating the most opportunities in sports nutrition (ReportBuyer, 2014). Launching a new energy bar is an opportunity for Nike to expand its brand and offer additional high-quality products to help consumers reach the next level of achievement.

b. New Product Characteristics

There are many companies that use different labels, such as breakfast bars, energy bars, nutrition bars, protein bars and snack bars, to create a niche in the food bar market. It can be confusing to understand the purpose of each bar, but Nike will launch an energy bar: Nike Energy. “A high-carbohydrate snack marketed towards active individuals” (Booth, 2012, p.2), Nike Energy does exactly what its name implies - meet the calorific needs of individuals participating in physical activity (Booth, 2012). Delivering a formula targeting the nutrient big three – protein, fat and carbohydrates – that is also appetizing, has whole grains, nuts, seeds, dried fruits, and dietary options for gluten, dairy and soy allergies, will help athletes reach their full potential. Energy bars are versatile and can be consumed before, during and after exercise, but more consumers are eating them as a midday snack. Nike is a company about physical activity, where play and sports are an enjoyable part of life, so Nike Energy will be seen as a source of energy for those on the move.

“There are more than 28 million consumers of nutrition bars, and that number will increase because the sports nutrition market keeps growing.”

Target Audience

Nike has several market segments for the number of products offered for world class and everyday athletes. Nike focuses on people who are active and enjoy quality sporting goods, especially footwear (Labrador, 2010). The sports company has footwear for running, basketball, football, baseball, golf, tennis, soccer, skateboarding and everyday use. To successfully launch a new energy bar, Nike must tap into its current brand audience of fitness enthusiasts, but also expand its message to appeal to active women and recreationists.

a. Demographics

Demographics for Nike include both men and women, age 18 to 40, that are educated, single and married (Labrador, 2010), but the company’s products are for men, women and children of all ages and ethnicities from around the world, with a large segment being purchased by teenagers. According to Piper Jaffrey, an investment bank and asset management firm, Nike remained as the top clothing brand among teens across all income levels in 2014 (Peterson, 2014). When it came down to footwear for upper-income teens, Nike was still the leader, besting brands like Sperry and Steve Madden (Peterson, 2014). Teenagers making Nike their leading choice coincides with the idea that the Nike consumer is athletic, active and casual with fashionable taste and a high income, often rocking sneakers as a fashion statement (Labrador, 2010). Nike products are cool, confident and stylish, and each market segment is really broken down based on the sport, style and geography of the audience.

Brands define the nutrition of their products differently to consumers. Some emphasize the right balance between protein, fat and carbohydrates for high-performance athletes while others focus on providing a snack with enough calories to keep you going through the day. Nike’s audience for the energy bar will be urban, active, recreationists, ages 18 to 54, with a primary target on women ages 25 to 44. ReportBuyer (2014) notes that women and the 25 to 44 demographic is a sweet spot for sports nutritional marketers.

b. Psychographics

In sports marketing there are four key segments of active consumers based on the attitudes, activities, interests and opinions of people: excitement-seeking competitors, getaway actives, fitness driven and health-conscious sociables (Dodds and Swayne, 2011). Excitement-seekers fall into the extreme sports category trying to foster personal improvement (e.g. snowboarding, wake boarding, bungee jumping), whereas getaway actives don’t have much leisure time, so they use their vacation time to hike, canoe or play golf (Dodds and Swayne, 2011). Fitness driven and health-conscious sociable individuals are similar in that they both believe in keeping fit, however the workouts of fitness driven people involve running, high intensity cardio and weight lifting (i.e. these people frequent the gym and participate in athletic events). Health-conscious people are more into walking, light cardio and doing things at a slower pace, and most importantly purchasing healthy foods (i.e. yogis or older women) (Dodds and Swayne, 2011). Based on the psychographics and behavior of these groups of active and inactive people, Nike has two distinct groups for how they market their new energy bar:

Group 1) excitement-seekers and fitness-driven athletes

Group 2) getaway actives and health-conscious sociables.

“Nike’s audience for the energy bar will be urban, active, recreationists, ages 18 to 54, with a primary target on women ages 25 to 44.”

“Nike Energy: Sustained energy for every athlete.”

Nutrition bars appeal to fitness buffs, more so to individuals than those who play team sports (ReportBuyer, 2014). According to nutrition market trends, 6.3 million fitness walkers comprise the single largest and most attractive market segment (ReportBuyer, 2014). People who take yoga classes, pursue outdoor activities like mountain biking, camping and backpacking, outnumber the people who play soccer, football, baseball and volleyball (ReportBuyer, 2014). Active and outdoorsy people who care about fitness and are not considered high-performance athletes, outnumber those in Group 1. Research shows that nutrition bars are for urban, outdoorsy, active and busy people who want something that is beneficial for their health.

c. Targeted Messaging

It is the “pursuit of excellence,” “possibilities” and “finding greatness” that has become the core of Nike messaging. Nike is all about performance, winning and dominance, but the food bar market is inclusive of more people who need something on-the-go. Both market groups are active and fall within the current trend for nutrition bars, but each group have different needs for Nike Energy. Fitness walkers and yoga instructors have different fitness goals than snowboarders and triathletes. Targeted messaging for Group 1 is about enhancing performance. Messaging for Group 2 is focused on Nike Energy as a fuel source. The emphasis is on Nike Energy providing endurance without consumers thinking the product is only for those who engage in sweat-drenching workouts. Nike Energy should also be seen as a source of energy for a day hike or morning walk.

The company’s messaging will focus on identifying and understanding the needs for all athletes. CEO Nate Parker pointed out that Nike is about sponsoring athletes, not just events (Bloomberg News, 2014). Not every consumer will define themselves as an athlete, so the brand message must focus on Nike’s definition of an athlete. Women also have different nutritional needs than men. By creating a product for this demographic, combined with understanding how women move through sport science, Nike can appeal to this target market. By using phrases like, “For the athlete in you,” or “Created and inspired for active women” combined with images of women kickboxing, running, kayaking, walking or hiking, the company will be able to send the message that the energy bar was made for women that run marathons and take water aerobics.

Nike is sports science. Nike know athletes, what athletes need and how to keep athletes active. Nike creates products and experiences to help drive performance across the brand. Nike is about finding solutions to enhance athletic performance and with a research lab dedicated to understanding the science of athletic performance, Nike knows what human bodies need to move. Launching a new energy bar is taking the brand to the next level. Nike took things to the next level with Air Jordan sneakers and elevated track and field by creating shoes to produce gold medal winners. By positioning itself in the nutrition market as the force behind human performance and potential, Nike will be able to reach its target audiences. The recommended brand slogan for the energy bar is “Nike Energy: Sustained energy for every athlete.”

Energy

Performance nutrition

Revive

Boost

Recovery

Endurance

Fuel

Active

Health

Fitness

“Nike is sports science.”

“We know athletes. We know how to keep you active.”

“Nike creates solutions to help you train longer.”

“We’re taking fitness to the next level.”

“Take your fitness to the next level.”

“For the athlete in you.”

“Created and inspired for active women.”

“Giving you more miles per gallon to keep going.”

“It’s about getting to the end. Nike will help you get there.”

Key Words and Campaign Phrases

PR Strategy

By launching a new energy bar, Nike is taking athletic performance to the “next level.” The Nike Energy PR campaign will be titled the “Next Level.” Nike will continue to rely on its identity as a vanity brand for the energy bar public relations campaign by generating media buzz and word-of-mouth attention through the use of traditional, digital and social media efforts. The goal of the campaign is to create product awareness using both a bonfire and fireworks approach.

Unlike other Nike products that already have social currency, such as Air Jordan sneakers, introducing a new energy bar does not already have a high interest from the public. Therefore, using a ripple effect where the key influencers are empowered to tell and share the story, much like what the fashion industry uses to get attention about new trends, is not the best approach for the Nike energy bar (Pentin, 2013). Nike also uses celebrity endorsements for many of its products and campaigns, but the PR strategy is more focused on everyday athletes than professional athletes. The brand should use a bonfire strategy, which starts lots of small fires, holds people’s attention and is “always on” (Pentin 2013; Knight, n.d.). Bonfires take the form of ongoing search engine optimization (SEO) strategies that focus on increasing site traffic and conversions throughout the year (Knight, 2013) or an ongoing brand story. In combination with fireworks, or big and loud campaigns that attract attention and pull in the audience (e.g. flash sales or launch events), Nike will be able to get people interested in the new product (Knight, 2013).

a. Keynote Presentation

The campaign will kick-off with Nike CEO and co-founder, Phil Knight, introducing the product at a keynote presentation – a fireworks approach. Public events have the advantage of speaking directly with the public and getting information to key influencers. Knight making the announcement that Nike will enter the nutrition bar market is a way to get thought leaders on board before the actual product launches and demonstrate how the product will benefit people. Nike’s strategy is to build media coverage about the upcoming energy bar and use the momentum to create an ongoing buzz (Kissmetrics, 2010). The presentation is an opportunity to interject key messages and explain how Nike has created another solution for individuals to train longer by taking fitness to the next level. People can go onto the Nike website to learn details about ingredients and nutrition information about the energy bar. In addition, the presentation will be live streamed and available for viewing later. Videos convey emotions that influence consumer behavior and are great content marketing, “a marketing technique of creating and distributing valuable, relevant and consistent content to attract and acquire a clearly defined audience – with the objective of driving profitable customer action” (Content Marketing Institute, n.d., para.5).

b. Digital Media

Nike’s former vice president of marketing, Simon Pestridge, said, “We don’t do advertising anymore. We just do cool stuff…Advertising is all about achieving awareness, and we no longer need awareness. We need to become part of people’s lives and digital allows us to do that” (Pentin, 2013, p.48). Nike will create a microsite and discuss the energy bar on its blog – both bonfire approaches. Microsites have a unique URL, making it easier for people to remember and find the product. A microsite has the benefit of focusing on a specific product and highlights the features of the new product using keywords and tags that are valuable for search engines. Nike will also start blogging about the energy bar as a way to create content and drive SEO. Blogs generate 67 percent more leads than companies who do not blog during product launches (Boccamazzo, 2014). Blogging is at the heart of content marketing, and how brands are able to grab people’s attention and keep them coming back. Nike’s blog will be focused on creating strategic content with the inclusion of keywords to improve search engine results. Writing about nutrition and the health benefits of energy bars, especially for women (the target demographic) will attract new visitors and supplement marketing efforts for customers who are looking for similar products. This is another way for Nike to differentiate itself from other energy bars that are already on the market. To achieve product awareness, Nike needs to draw out the suspense and emphasize its selling point of knowing athletes, knowing what athletes need, and how to keep them active. Nike can do this by sharing blog articles and hyperlinking to the microsite on social networks to drive traffic and gain followers.

c. Social Media

Nike uses social channels to cross-promote larger PR and marketing campaigns. The Next Level campaign will create a new account handle for the energy bar on all their social media accounts, but the campaign will focus on Facebook, Twitter and YouTube. Using social media will be two-fold for the company: to build momentum leading up to the product launch and creating fireworks with a hashtag campaign.

i. Social media evangelizers

Writers and thought leaders will become evangelizers or “social media foot soldiers” (Schwartz, 2013, para.7) who will help raise the public profile of the energy bar. 60 to 90 days before launch, the PR team will cultivate relationships with writers and reach out to writers and bloggers on social media they have relationships with. One tactic is using Help a Reporter Out (HARO), an online service that connects members of the press with people from the public who have expertise or experience in helping to write a story they are covering (Zazueta, 2013).

ii. Hashtag campaign

Hashtags are a great way to tie conversations together and make content discoverable by targeted audiences. Brand conversations about Nike Energy will use the hashtags “#nextlevel” and “NikeNextLevel.” Nike has a history of creating viral, awe-inspiring ads. Nike will post two Next Level campaign videos on YouTube and share it on Facebook and Twitter using the hashtags campaign hashtags. The first video will launch before the product with the launch date at the end, much like when the company counts down to the release of sneakers from Kobe Bryant or LeBron James. The second video will launch after the product is on shelves. Both are part of the fireworks approach to attract attention.

d. Press Release

Lastly, Nike will distribute press releases announcing the new product, after the keynote presentation and when the product launches. Press releases are viewed as trustworthy sources of information and can be communicated via newspaper and magazine articles, television and radio reports, blogs and social networking sites. However, distributing a press release does not equate to the story being picked up by journalists and bloggers because writers receive hundreds of pitches on a daily basis. This is why the relationships that were cultivated during the pre-launch period are important. The opinion leaders that were invited to the keynote presentation and have been writing about Nike’s new energy bar will also be the people covering the story when the product launches. Press releases may be an older method of disseminating information but they are still effective (Boccamazzo, 2014). Well-written press releases are a great way to grab headlines and gain press coverage.

“We don’t do advertising anymore. We just do cool stuff…Advertising is all about achieving awareness, and we no longer need awareness. We need to become part of people’s lives and digital allows us to do that.”

Evaluation

Public relations is measured on three levels – outputs (impact on media/social channels), outcomes (impact on target groups) and business results (impact on organizations) (Ketchum Global Research & Analytics, n.d.). The communication output should create product awareness and change the attitudes and behaviors of consumers so they take action and purchase the energy bar.

The first spike in PR will be the announcement of the energy bar at the keynote presentation. Press coverage of this event will be a baseline for the volume of conversations about the energy bar using a fireworks approach. The first two months of the microsite and blog will be used as a baseline for typical volume on a daily, weekly or monthly period. Davis (n.d.) recommends the following as primary metrics for the Next Level campaign:

· Awareness – volume, reach and exposure

· Engagement – retweets, comments, replies and number of participants

· Drive traffic – URL shares, clicks and conversions

· Share of voice –volume of closest competitors to overall conversation of Nike brand

Criteria for Success

Reach

Urban, active, recreationists, ages 18 to 54, with a primary target on women ages 25 to 44. These individuals are excitement-seekers, fitness-driven athletes, getaway actives and health-conscious sociables.

Awareness

The target audience becoming aware of Nike’s position in the nutrition market as a force behind human performance and understands Nike Energy is a new solution to enhance athletic performance.

Comprehension

Consumers understanding the nutritional and fitness value of the energy bar.

Attitude

Consumers believing that the energy bar will give them the fuel, endurance and nutrition needed to perform.

Behavior

The target audience purchasing the new energy bar within the first quarter of product launch.

a. Digital Media

People discover blogs through social media recommendations or search engines, but users will bounce if the post does not have content pertaining to the answer they are looking for (Smith, n.d.). When people visit a company website, they are specifically looking for that brand and will stay on the site much longer. The bounce rate for both the microsite and the blog should be below 65 percent (Smith, n.d.). Understanding the amount of total visits and new sessions helps gauge how well the campaign is driving traffic. In a healthy campaign, the total number of visits and recurring visitors should grow steadily because the content and structure of the site is effective (DeMers, 2014). Channel-specific traffic, such as seeing if Facebook is driving most of the traffic to the blog contrary to links on wiki pages, is also an indication of how certain channels are performing compared to others (DeMers, 2014). The best metrics to measure the content of the energy bar posts on the Nike blog:

· Total visits - 1,000 visits per post

· New visitors - 60 percent per month

· Traffic sources – 40 percent from social media, 35 percent from search engines (Google, Yahoo, Bing), 25 percent from referrals

· Average time on page – 90 seconds at beginning of campaign, 2 minutes 30 seconds at end of campaign. (Bounce rate under 65 percent)

· Conversions to subscribers – 5,000 new subscribers

b. Social Media

Even though the energy bar launch does not garner the same international attention as the World Cup or the Olympics, Nike should still receive a high number of mentions on Facebook and Twitter. The objective is to reach a total of two million mentions throughout the campaign, with a majority of the mentions being positive. The Next Level campaign should hit the following numbers on social media:

c. Press Releases

Nike will evaluate its press release distribution based on mentions, reads, referrals, traffic and deliveries. Mentions is a number that reports how many times a brand was mentioned within a timeframe and can help Nike learn if people are talking about them (Penn, 2013). Reads is how many times the press release is read daily competing against other trending topics, while deliveries is keeping tabs on which media outlets have received the news release (PR Web, n.d.). A similar process as the blog and website metrics are used for analyzing referrals and traffic. Impressions were left out as a main data point because they are a passive measure that does not indicate commitment (Penn, 2013). Nike should aim for:

· 500 – 1,000 online pickups two weeks after the keynote presentation

· 1,200 – 1,500 online pickups after product launch

· Publicity with mainstream media: television, magazines and newspapers (i.e. CNN, New York Times, NPR, Forbes, Men’s Health)

· 200 write-ups from newspapers, bloggers, magazines and nutrition websites two weeks after product launch

d. Data Analysis

Lastly, Nike will use the following quantitative and qualitative tools to measure the efficacy of the Next Level campaign:

Social Mention

Social media search engine that scours user-generated content through Ask.com and delivers results as a single stream of mentions from different platforms (Angeles, 2014).

Mention

High-end version of Google Alerts that allows users to customize alerts and delivers results in 42 languages from social media sites, news sites and other web pages (Elran, 2013)

Google Analytics

Free analysis service that measures website performance and activity. Google Analytics can be used to research site visits, bounce rates, where visitors are coming from (U.S. or other countries, most popular pages and average time spent on the site (Matteson, 2013).

Meltwater News

High-end product that covers news features, online media monitoring and delivers breaking news from more than 200,000 news publication, social sources and blogs (Dembak, 2013).

PR Newswire

Global provider of multimedia platforms that enable corporate communicators and public affairs officers to leverage content to engage with their key audiences (PR Newswire, n.d.)

Hootsuite

Social media management systems that helps manage many social network channels, monitor multiple online streams in one place (e.g. Facebook, Twitter, Google+, etc.) and track weekly analytics reports (Gray, n.d.).

““Having a clear set of goals in place is key to understanding what you want to achieve and hence measuring it.”

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Practice Management Forum, 8(4), 5-6, 11. Retrieved from: http://ezproxy.snhu.edu/login?url=http://search.proquest.com/docview/1030087466?accountid=3783

Zazueta, R. (2013, February 14). Maximize a product launch with this PR plan. Retrieved from:

http://www.verticalresponse.com/blog/product-launch-plan/

Facebook

10,000 likes on Nike Energy page

Increase followers on corporate page by 5%

Twitter

7,500 followers on Nike Energy handle

50,000 tweets with #NextLevel on launch day

YouTube

500,000 views on Next Level videos

100 press pickups of videos

Boost engagemment by 30 % during campaign

Boost engagement 50% after keynote and product launch

Boost engagement on corporate handle by 30%

Boost engagement 80% after keynote and product launch

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