NIKE FIRE

Dan Chilton, Dan Grogan, Garrett Hoag, Jeremy Moglen, Erin Wolstenholme

Road Map

Introduce Nike Market Assessment SMART Objective What are new product is Service Decisions Sales Additional Revenue Financial Analysis Evaluation and Control

Nike, Inc.

Founded in January 1964 Bill Bowerman Phil Knight With a handshake, $500 each, mutual

trust, and an order of 300 Tiger running shoes

Started as Blue Ribbon Sports, Nike name and swoosh taken over in 1971

Nike, Inc.

First athlete endorsement:Steve Prefontaine

Total Revenue= $25.3 billion

Organizational View Mission:

To Bring Inspiration And Innovation To Every Athlete In The World” * If You Have A Body, You Are An Athlete

Vision:to help NIKE, Inc. and our consumers thrive in a

sustainable economy where people, profit, and planet are in balance. To get there, we’re integrating sustainability principles and practices into everything we do: design; developing sustainable materials; rethinking processes; advocating for change in industry. To measure our progress, we set ambitious long-term targets and report on our performance

Organizational Culture

Nike’s culture wants to engage and inspire creative innovation.

Developing the best employees is the most beneficial asset to the company

Nike’s philosophy is to have mutual trust and respect among everyone in the company

Market Assessment

SWOT Strengths - New Market, new line Weakness – competitors, never done

product before Opportunities – New partnerships/more

income Threats – Bad image, lower standard of

Nike

Market Assessment

Primary- survey released to random super markets

Secondary- Energy Drinks Psychographic Segmentation –

common lifestyle

Market Assessment

Positioning- Sports affiliated area, professional athlete/professional team willing to back the product.

SMART Objective

To establish the Nike Fire to over 2 million dollars in profit in the first year of manufacturing.

Marketing Mix

Product: Nike FireHaving all of the great ingredients of a sport

drink on the market already with an added bonus of an energy boost

Price:$1.99 for 3 pack $9.99 for 5 gallon

Marketing Mix Limited Distribution

Sporting goods stores Nike Outlet Stores

PromotionsCommercialsMagazine ads; SLAM, ESPN, SI, Runners World,

EastbayCoupons Promo-codes Sampling at Nike outlets Social Media

Marketing Mix

Public RelationsMulti-camps Athletes

Sales Management

Push StrategyIncentives for warehouse and retailersMonetarySigned memorabilia

Pull StrategyPromotions

Service Decisions

Nike Fire will be tested with elite athletes University of Oregon Tested in labs Will determine how the product will work

Surveys Conduct consumer surveys Take the feed back to make adjustments to

the product

Risk Management Reputation

Prevent law suites ○ Nike Fire will make the initiative to resolve

problems before/ while they occur include making a public announcement, whether a press

conference or formal address to the problem to inform the public on what had occurred.

Health and Nutrition LabelsAllow the consumer to see what is in the

product. ○ To create prevention

Example- allergic reaction

Areas of Incremental Revenue

With Nike having a phenomenal grasp on the sporting goods market, Nike Fire will be able to sell products with the Nike Fire Logo on them.

Along with selling Nike Fire Product, we will sell refillable water bottles, that will contain a free sample of the powder.

Another product that Nike Fire will sell will be Gushers, that will replenish lost electrolytes

All of these products will be sold on Nike. Com which will consist a separate Nike Fire Tab.

Financial Analysis

Financial Analysis These figure that were present on the last slide

represent the sales, expense, and income Projections on a 5 & 10 year forecast.

With income projections being the least in the first year, do to high expenses and low target recognition.

Nike Fire projects that in a 5 year period we will increase income from $3.8 million – $19.9 million.

As well as increasing its income profits from $3.8 million - $50.6 million.

Evaluation and Control Monitoring of Marketing mix: Setting organizational goals will help guide Nike

Fire employees. With employees being a major part of Nike Fire’s

Organization have a positive work environment; that will also offer incentives for their hard work.

An effective marketing control system has four major components, which include, mission statements and objectives, organizational structures to meet objectives, employee performance standards, and adjusting methods.

Evaluation and Control Plan for Adjustment: Contingency plans are an import factor, making

sure that there is always a fall pack to an organization’s original goal.

Contingency plan’s are important when competing with large competitors like Gatorade and Powerade, because they can always lower prices and can afford the initial lose.

Because of this, Nike will have to do research, to prepare for possible problems, by reviewing market segmentation, and marketing mix to stay relevant in the market.

Evaluation and Control Anticipated response from Competition: With Nike Fire entering the market, we expect

competing sports drinks to follow. Especially by new companies try to enter the powder drink market.

We will also be prepared that both Gatorade and Powerade will try an eliminate Nike Fire, by lowering its prices.

Because of this we will promote the benefits on why our product has better health benefits than our competition.