Media PlanNike + Ipod

Industry/Company Overview

Nike Inc. was founded in 1962 by BillBowerman and Phil Knights.

- Originally “Blue Ribbon Sports.”- Now a global powerhouse.- At the end of 2011 fiscal year, Nike made $20.9

billion in revenue and controls 40% of the market.

- Sports & extreme sports equipment.- Wholly-owned affiliates.

Product Review

-Nike Plus sensor placed in the shoe allows runners to receive data about their runs.

-Interfaces (iPod, wristband, iPhone).-GPS tracking system.

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Competitive Review & Advantage

ADIDAS GROUP• International company• Most profits from North America• Rapidly expanding

PRODUCT• miCoach

Competitive Review & Advantage

GARMIN• 2011 company revenue

growth of 18%• 2011 Fitness equipment

revenue growth of 30%• Highest source of revenue is

North America.

PRODUCT• Forerunner 610

touchscreen

Garmin Q1 2011 Earnings Call Webcast.

SWOT AnalysisSTRENGTHS-Nike has the largest market share in sporting goods.-Nike has the most yearly revenue continuously.-Nike’s image is trusted and the company has many loyal customers.-Apple iPods are the most popular electronic devices for the tech savy.-Apple iPods are the most popular electronic devices for those who require music storing systems. -Apple has the largest market share in its industry-Apple has the most yearly revenue in its field continuously. Both logos are widely recognized.

OPPORTUNITIES-An App is available for those who cannot afford the product. -There are always new age groups moving into the targeted category.-As the lead in market share, Nike has more money to advertise its products than other companies.

WEAKNESSES-Nike has many competitors such as Adidas, Reebok, Puma, etc. -Market share has gone down in recent years.-Not all Nike shoes are equipped with Nike + technology-Affordability is an issue.-Those who cannot afford the products have no way of attaining them.-Competitors’ products are more versatile and can be used with more products, such as their shoes and certain phones.-By associating itself with Apple, Nike is excluding customers who are loyal to Microsoft.-Other brands’ customers are just as loyal. -Nike’s partnership with the RED party.

THREATS-Adidas’ market share is growing.-The state of the economy has made it harder to sell expensive electronics.-Nike and Apple could be seen as one giant monopoly and therefore, deter customers from-Purchasing products. -Market share could continue to decline.

Marketing Objectives

• 1. To provide a 10% increase in Nike’s brand loyalty by the end of the campaign.

• 2. To increase awareness of Nike + iPod technology by 20% by the end of the campaign.

• 3. To increase sales of Nike + iPod technology by 30% by the end of the campaign.

Advertising Objectives

• There has not been any advertisements for Nike + iPod since 2007.

• 5K in the Spring for $20 per person• Word-of-mouth• Coupon for free Nike + iPod sensor with each

purchase of Nike shoes ($100+)• Heavy advertising during the holidays and the Spring,

leading up to the Summer• By reaching advertising objectives, we can achieve a

30% sales increase.

Creative Strategy

• No major ad campaign since 2007

• Definite theme and overall promise

• Inspirational tone to target runners and those who want to become runners

• Enough knowledge to understand the ad, but enough intrigue to learn more

• Relies heavily on website

Creative Strategy Examples

Creative Strategy Examples Cont.

• “NEWS” tab• Inspirational

commercials• http://www.youtube.co

m/user/NikePlusTV#p/a/F0A5343EAFF3BFA7/2/xpFaMrwSR-k

Target Selection

PRIMARY• Male & Female, 18-40• Tech savvy athlete• Runners interested in

improving time runs• Apple & Nike customers• Interested in quality of

health• Financially able to purchase

products

SECONDARY• Male & Female• All age ranges• Non-athletes• Trying to improve health• Financially able to purchase

products

Overall Media Budget

• Print Ads: $1.5 million• Television: $2 million • Internet: $25,000• Outdoor: $600,000• Other Advertising: $1.5 million• TOTAL: $5.6 MILLION

Target Audience Coverage

• April – August: reach 100% of target audience an average of two times.

• Maintain a 60% reach of the target audience an average of two times continuously.

• November - January: generate an 90% reach of the target audience an average of 4 times.

Regionality & Seasonality

Northeast Northwest Southeast Southwest Central0

20

40

60

80

100

120

FallSummerSpringWinter

Flighting

• Heavy, pulsating year-round advertising• Pulsating times: Holiday season &

Spring/Summer months• Gifts• Exercise• Back-to-school

Media Mix

Advertising Objectives• Print: magazines, newspapers• Internet: social networking, Pandora radio• Television: prevalent during November –

December & April – August• Outdoor: events, billboards• Word-of-mouth

Creative Constraints

• Radio• Outdoor advertising

• Internet• Print• Television

Budget Constraints

• Majority of advertising is internet• Television only used during high selling times• Outdoor is necessary for promotion• Money spent buying advertising will pay off

Media Mix

Budget Constraints• Television• Print• Internet• Outdoor

Scheduling

Weighting, Reach & Frequency

• Heavy weighting in Northwest and Northeast regions during the winter

• Heavier weighting during the summer in the Southern and Central regions

• 80% reach with a frequency of 5 times continuously• 90% reach with a frequency of 4 from November -

January• 100% reach with a frequency of 2 during summer

months-Internet – Print – Television -

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