PowerPoint Presentation

FUELBAND

FUELBAND

(Video)

FUELBAND

FUELBANDMission Statement:

Nikes Mission Statement:To bring inspiration and innovation to every athlete in the world

Fuel Band 2: To provide active and adventurous adults with a highly reliable fitness tool that accurately collects data and analyzes physical activity

FUELBANDOrganizational Data:Headquarters located in Beaverton, Oregon

High brand equity (quality, reliability and comfort)

Dedicated consumer pool

Global production

Global distribution chain

Product development done in close collaboration with athletes

High sponsorship desirability

FUELBANDCurrent 4 Ps

FUELBANDPrice

Currently retails for $40 - $60

Maintain price post redesign

Increase sales to leverage

marketing and relaunch

FUELBANDProductFirst edition doesnt meet the criteria needed to compete

Redesign product to accommodate different sports

Current edition gives Nike Fuel points which advised user of overall fitness completed

FUELBANDPromotionBegin by creating awareness among Nike consumers, specifically Fuelband users

Expand target market. Original appealed to runners only but redesign will allow other athletes to be targeted.

FUELBANDPlaceDistribution through:

Direct Marketing Internet, Call-in, Magazine sales

Specialized sport stores

Gyms

Electronic retail stores

FUELBANDFinancialsIn 2015, Nikes revenue was $30,601,000Gross Profit was $14,067,000Their profit Margin was 11%The growth rate is 13.02%

Sales by segment in 2015 (millions)

Footwear = 8,506.00

Apparel = 4,410.00

Equipment = 824

Source: http://www.nasdaq.com/symbol/nke/financials?query=income-statementhttp://www.statista.com/statistics/241706/nikes-us-sales-by-product-category-since-2007/

FUELBANDProduction Management785 contract factories (at least one on every continent)

Over 1 million factory workers

Over 500,000 different products

Sold in over 170 countries

Incentivizes lean manufacturing

Increasingly sustainable supply chain

Source: http://www.ebay.com/itm/like/222049755552?lpid=82&chn=ps&ul_noapp=truehttp://about.nike.com/

FUELBANDResearch & DesignHeart rate monitor

Different workout categories

Additional accelerometers to accommodate differentsports

Improve FUEL point system, with online sharingplatforms

FUELBANDInformation TechnologyNike is heavily dependant on their information technology

NoSQL technology

Virtual systems model

Agility company model to maintain data

Source: http://www.slideshare.net/AmazonWebServices/arc308-nikes-journey-into-microservices-aws-reinvent-2014

FUELBANDExternal

http://yourbusiness.azcentral.com/environmental-factors-affect-marketing-decisions-22203.html

FUELBANDIndustry Analysis

Valued at $2 Billion in 2014

Expected to reach $5.4 Billion by 2019

Dominated by FitbitSource https://rctom.hbs.org/submission/fitbit-find-your-fit/

FUELBANDCompetition & SubstitutesFitbit, Jawbone Up, GarminVivosmart

Smart Watches Have the potential to cannibalizefitness trackers

Substitutes Pedometers, Smartphone Apps

http://www.post-gazette.com/news/surveillance-society/2015/08/03/Surveillance-Society-Wearable-fitness-devices-often-carry-security-risks/stories/201508030023

FUELBANDMarket Segmentation

Source: https://www.npd.com/wps/portal/npd/us/news/press-releases/2015/the-demographic-divide-fitness-trackers-and-smartwatches-attracting-very-different-segments-of-the-market-according-to-the-npd-group/

FUELBANDSocial Trends

Rated at a 24% adoption rate in the US in 2013Reached 30% adoption rate by the end of 2014Forecast of 135 million device shipments to be made in 2018Up from 9.7 in 2013

Source: http://www.wareable.com/fitness-trackers/fitness-tracker-market-to-top-dollar-5-billion-by-2019-995https://www.statista.com/chart/2682/most-wanted-smartwatch-features/

FUELBANDEconomic EnvironmentEconomic changes could result in an increase or decrease in production cost

The Economy on the upswing lends itself to an increased demand for luxury goods

Source: http://www.economist.com/blogs/graphicdetail/2015/12/daily-chart

FUELBANDTechnological Environment

Improved Technology

New Innovations

Moving strictly to phonetechnologyhttp://gizmodo.com/5401391/the-seiko-uc-2000-wrist-pc-an-awkward-80s-attempt-to-live-the-cyborg-life

FUELBANDLegal & Regulatory EnvironmentManufacturing

Counterfeits

EPA has lowered standards

http://bizarreculture.com/fake-it-till-you-can-make-it/

FUELBANDPolitical EnvironmentLabor Issues

Political pressure fromoutsourcing jobs

Dealing with internationalgovernmental bodies

http://www.nytimes.com/2015/05/08/business/obama-chooses-nike-headquarters-to-make-his-pitch-on-trade.html?_r=0

FUELBANDSWOT Analysis

StrengthsExisting partnership with Apple onNike+ Line

Current Endorsements

Manufacturing Plants

Brand Equity

SponsorshipsUniversitiesProfessional Team

FUELBANDSWOT AnalysisWeaknessesCurrent Market Share within fitness bandFailure to gain traction with first band Not waterproofUnmeasurable Fuel countUnable to choose from multiple activitiesView of Nikes manufacturing plants

FUELBANDSWOT Analysis

OpportunitiesSports-band market shareMulti-sport capabilities non-existent in marketTechnology is growing allowing for smarter and smaller techEndorsers can wear band in game and can be used as an advertisement Stream live updates during event

FUELBANDSWOT Analysis

ThreatsSold at a higher price while doing the same thing as other devices Current Market Share of FitbitDifficult market penetrationWorld Economy Growth in smartwatch capabilities, market

FUELBANDMeasurable Objective

Increase sales - Increase sales by 50% within 12 months.Improve Fuelband awareness - Increase website visits by 300% within 12 months.Increase market share in the domestic market to at least 30% by the end of FY17.

FUELBANDMarketing Budget

Nikes FY15 revenue was $30.6bnMost of high budget marketing will be taken care of through current dealsFY15 Demand Creation budget was $3.2bnWill increase by 10% to account for new product marketing

http://www.highsnobiety.com/2015/06/27/nike-records-30-6bn-revenue-for-fiscal-2015/

FUELBANDMarketing Mix

FUELBANDProduct

A fitness/sport tracker that fulfills the more athletic consumers needs

Multi-Sport CapabilitiesBasketball, Baseball, Golf PotentialCan be used as a GPS run trackerCan be used to track steps, swings, sleep and translates to app on any devise

FUELBANDProduct

Does not require the phone/computer to be within reachSets apart from the competition through full sport trackingLED displayTap on band to change sport currently being used for

FUELBANDPrice

The product will be introduced using the Premium Pricing strategy

The cost will be introduced at $199.99 - matching a lot of smartwatches currently on the market

This premium cost will attract customers with their belief and knowledge of its higher value

FUELBANDPlacement

Distribution will be done through multiple retailers

Electronics stores - Best Buy, Walmart

Pay for premium placement in stores, near front of locations

Sports retailers - REI, Sports Authority, Dicks Sporting Goods

FUELBANDCreative StrategyThe message we are trying to land:

Directly to athletes

Athletic band not just a pedometer

Introduce the ability to track multiple activities

FUELBANDPublic RelationsCause related ads and partnershipsPartner with the V FoundationHas been around for 20 yearsESPN Devotes a month to bring awarenessAlso involved in walks & runs

Special OlympicsNike provides over 400 volunteers to the Special OlympicsAlso provides gear for contestantsHanding out free FUELBANDS to contestants to wearduring Olympics

FUELBANDDirect Marketing

Display Ads Interactive ads, Banners, Pop ups and videos submitted by usersFacebook Social Media (Groups & Contest)

Twitter MusicAds on Spotify fitness clubs

FUELBANDPersonal Promotion

Through sponsorships and endorsementswe will:Distribute to college athleticsCompete with friends in other sports

FUELBANDAdvertising WITHOUT A GOAL, YOU CANT SCORE

FUELBANDNewspaper AdvertisingAdvertising in newspapers will be a small portion of overall mix

Using USA Today, New York Times, Washington Post

Full page ads placed within sports section

FUELBANDMagazine AdvertisingPlace ads in:Sports Illustrated ESPN MagazineMens HealthShapeOxygen

FUELBANDTelevision Ads

Camera zooms in on athlete and says That counts

Screen goes black with

#Makeitcounthttp://time.com/78223/nike-mark-parker-fuelband-wearable/http://www.bnwpix.com/hair-style/aGFpci1zdHlsZQ/

FUELBANDRadio AdvertisingNike currently spends about 5% of their overall marketing budget on radio ads

Using intergraded sponsorshipsthrough sport radio shows

Dan Patrick Radio show

FUELBAND

Thank You And Make it Count

#Makeitcount

FUELBAND