FuelBand Nike+ Fuel Station /LM RM 2ELM >Q QEB +LKALK 2RJJBO .IVJMF@P
FASM 410 Retail Management Pop-up Shop Spring Quarter 2012
Contributors EDITORS Carley Holtsinger Sabrina Ana Carmona Clarissa Thomen-Brown Caroline Seaman Matthew Friedmeyer (designed store renderings)
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Table of Contents Project Objective
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The Nike Story
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Nike FuelBand Customer
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Olympics Customer
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Customer Comparison
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SWOT Analysis
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Competition
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Location & Store Design
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Pricing Strategy
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Promotion
28-31
project objective The purpose of our Pop-up Shop is to successfully develop a Nike Fuel Station in London during the time of the 2012 Summer Olympics. It is designed to help better understand the retail environment and the Nike consumers who shop in it. It is an opportunity to learn what it takes to choose the right location, products, and promotional tools to build a Pop-up store during a worldwide event. The concepts learned in FASM 410 in addition to previous JV\YZL^VYR ^PSS OLSW MVZ[LY H WYVMLZZPVUHS ^LSS MVJ\ZLK Ă„UHS WYVK\J[
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The nike story HERO BRAND - they inspire customers to “Just Do it” like in their logo 0[»Z HSS HIV\[ OLSWPUN WLVWSL JVUX\LY [OLPY ^VYRV\[ Ä[ULZZ YLSH[LK JOHSSLUNLZ ^P[O WVZP[P]L [OPURPUN HUK [OL OLSW VM [OLPY WYVK\J[Z which feature the latest technology in active wear Their merchandise caters to the differing needs of athletes with their active wear, from running shoes to bathing suits. BRANDS: Nike, Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding SUBSIDIARIES: Cole Haan, Hurley International, Umbro and Converse. They are a worldwide apparel and accessories retail company boasting close to 700 stores around the world that feature athletic footwear and apparel, sport equipment and other athletic and recreational products In addition to manufacturing sportswear, the company operates retail stores under the Niketown name.
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Nike+ FuelBand Customer Our target customer is a male or female ranging from the age of 25 to 38 with a bachelor’s degree and an income of $35,000 to $60,000. This income stems MYVT [OLPY JHYLLY HZ H `V\UN WYVMLZZPVUHS PU H ÄLSK Z\JO as consulting, accounting, entertainment, business, and/or software to name a few. Considering their status as a professional, our customer must constantly be connected and updated, which consequently makes technology a vital aspect of their everyday life. In order to keep up with their peers, they must also keep up with the latest trends and products on the market. Outside their career, our customer is pressed for time, ^PZOLZ [OL` JV\SK THPU[HPU H IL[[LY Ä[ULZZ ZJOLK\SL but doesn’t have the time to see a personal trainer on a daily basis. This leaves a huge opportunity where our target customer wants to be more involved in athletics but their busy lifestyle and schedule doesn’t allow for it. They’d like a product to just to it on their schedule. Although they can be borderline Generation X, our target customer leans toward Generation Y with qualities such as being tech-savvy, achievement and team oriented, attention craving, and impulsive. According to VALS, we are targeting two segments: achievers and strivers. The achievers lead a goal-oriented lifestyle and are active in the consumer marketplace through their attraction to premium products and innovative electronics, which in turn demonstrates prestige and success. Moreover, the strivers keep up with the latest trends through their purchasing habits and focus on an image that is driven by the approval of their peers.
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OLYMPICS Customer The Olympic Games is a major international event that brings X\HSPÄLK HUK LZ[PTH[LK nations, 10,500 athletes and over 70,000 volunteers from around the world together. It is predicted that on event days 78 percent of spectators are likely to travel from within London and 22 percent from the rest of UK and Europe. Also, the number of foreign visitors into London is estimated at 350,000 per day. Based on the information available, there are 3 target segments to focus on: the athlete, the family, and the fan. The athlete is a single spectator who lives an active lifestyle similar to the athletes participating in the Olympic Games. Whereas the family would be a group of people from infants to adults who come together on a family vacation looking for a memorable experience. Finally, the fan may not be your typical athlete but likes to be a part of the sports world by going to all the events and supporting his country’s Olympic team. 8
customer comparison nike fuelband
olympics
-Young professionals -Tech savvy
-Expendable income
nike fuel station
-Latest trends in products
-Tech-savvy
-Busy schedules but want to be more involved in athletics
-Expendable income
-Generation X
-Active lifestyle -Impulsive
-Achievement and team oriented
-Locals and Tourists
-Impulsive
-Team oriented
-Achievers --> goal oriented lifestyle, have an attraction to premium products and eletronics
-Goal oriented -Image driven
-70,000 volunteers from around the world -The Athlete--> a single spectator who lives an active lifestyle -The Family--> ZWLJPĂ„JHSS` MHTPSPLZ [OH[ HYL brought together by sporting events -The Fan--> inspired by their favorite athletes, extremely image driven and team oriented, as in an external team player
-Strivers--> image-driven
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Swot analysis STRENGTHS -Seconds as a stylish wristwatch -Helps give Nike more of an “app” presence -For people working at a desk job all day it is a reminder to stay more active- to get up and do stuff. -Can track data online/through your smartphone
WEAKNESSES -Uses accelerometer to calculate points, so only applies to running, zumba, or anything that involves waving your arms (i.e. this is not a product for weightlifters)
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OPPORTUNITIES -This product would help sway tech-savvy prospective customers into buying if there was a GPS included in the technology -A heart rate monitor could persuade more serious runners that the product is more accurate -Better size variations
THREATS -Hackers can break into its technology and use the product for various other tasks like running an Ipod off of kinetic energy -Competition as always: Striiv, Motoactv by Motorolla ($250), and “Jawbone Up” by Jawbone
Competition Striiv...$99.95 A pedometer: it counts your stairs and steps throughout the day and gives you daily challenges
Motoactv by Motorola...$250.00 Combination of a music player, heart rate monitor, and GPS device
Jawbone Up by Jawbone...$99.99 Tracks your activity, sleep and meals 24/7 using a Smartphone
FitBit...$99.00 Helps track calories, steps, monitors your sleep, and is compatible with various apps.
Polar FT4 Heart Rate Monitor...$90.00 A watch that functions as a heart rate monitor with other features like stopwatch and alarm
Fitness Apps... Anywhere from free to a couple dollars, but are nonetheless inexpensive
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LOCATION BOXPARK )V_WHYR :OVYLKP[JO PZ H YL[HPS YL]VS\[PVU ¶ [OL ^VYSK»Z ÄYZ[ pop-up mall. Based in the heart of East London, for the UL_[ Ä]L `LHYZ )V_WHYR Z[YPWZ HUK YLÄ[Z ZOPWWPUN JVU[HPULYZ [V JYLH[L unique, low cost, low risk, ‘box shops’. Put them together with a unique mix of international fashion and lifestyle brands, galleries and cafés and you’ve got the world’s ÄYZ[ ºWVW \W» THSS ¶ ZV UHTLK ILJH\ZL P[Z IHZPJ I\PSKPUN blocks are inherently moveable: they can, and will, literally pop up anywhere in the world! Boxpark will house more than 50 small stores in a twostory structure constructed on Bishopsgate Goods Yard, a former railway site that’s been unused for more than 40 years. The site isn’t scheduled for development for several years still, so Boxpark’s temporary solution works well for all parties. Conceived by Roger Wade — creator of the Boxfresh brand as well as fashion brand consultancy Brands Inc: a brand consultancy company specialising in licensing, HUK YHPZPUN ÄUHUJL MVY <2 MHZOPVU HUK T\ZPJ JSPLU[Z 0U partnership with real estate developers Hammerson and Ballymore, Boxpark will focus on small, independent brands that are hand-selected and offered space by invitation only. The result will be a mix of international fashion, arts and lifestyle brands along with galleries and cafés.
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location Boxpark Shoreditch is located directly next to Shoreditch High Street on the London Overground Line. Boxpark Shoreditch is a 10 minute walk from both Liverpool Street Station (on the Central, Circle, Hammersmith and City, and Metropolitan Lines) and a 10 minute walk from Old Street Station (on the Northern Line). BUS: Bus routes 8, 26, 35, 47, 48, 67, 78, 149, 242, 388 all run within 2 minutes walking distance of Boxpark CAR: Boxpark Shoreditch is outside of the congestion charge zone. Paid parking is available nearby. BICYCLE: Boxparkâ&#x20AC;&#x2122;s bicycle rack is located at the Shoreditch High Street Station end. It is lit, and under CCTV surveillance 24/7
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nearby attractions ART GALLERIES: 6 popular galleries all within 7 minutes walking Rivington Place: public building dedicated to culturally diverse visual arts. It is the permanent home of international contemporary art and photography exhibitions, talks, screenings and seminars. >OP[L *\IL /V_[VU :X\HYL! ÄSSLK ^P[O ZVTL VM [OL ^VYSK»Z most cutting-edge art. I.e. Damien Hirst, Tracey Emin, Antony Gormley, Jake and Dinos Chapman, Gilbert and George and his former wife Sam Taylor-Wood are all represented and their works shown at the two galleries and beyond. MUSEUMS: all within 10 minutes walking Geffrye Museum: The museum is set in a series of lovely 18th century almshouses, and is surrounded by gardens. As you walk through the various rooms, you can see how English furniture, paintings and decorative arts have changed through the years. HISTORICAL LANDMARKS: all within 13 minutes walking *OYPZ[ *O\YJO :WP[HSÄLSKZ! VUL VM 3VUKVU»Z TVZ[ Z[\UUPUN churches that was closed in 1956, but reopened (after decades of raising money for restoration) after vigorous campaigning. KIDS ATTRACTIONS: all within 15 minutes walking Hackney City Farms: houses small petting animals, calves, sheep, pigs, Amber the goat and Larry the donkey - who starred in a nativity parade at Westminster Abbey. Also, well known for the outdoor restaurant, Frizzante Cafe. 14
STORE FRONT
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store design
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store design FuelBand Rental
cash wrap
Product cylinders
Wall displaying product pictures
EXIT
STORAGE
t-shirt table
cubbies for customer property
STORAGE
t-shirt table
KINETIC SENSOR SCREEN
ENTRANCE
t-shirt table
KINETIC SENSOR SCREEN
Screens streaming social media via Instagram and Twitter
Interactive touch screen t-shirt vending machine table
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interiors
Our third room will be modeled after this hallway, incorporating the table in the center as a T-shirt vending machine with sleek product displays on the walls.
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This image represents the cylindrical displays that will JVU[HPU V\Y WYVK\J[Z SVJH[LK PU [OL Ă&#x201E;YZ[ YVVT VM [OL Z[VYL
interiors
This is the LED screen that will be streaming social media in the entrance hallway. This is a representation of the interactive kinetic screen that customers can use to test the FuelBand
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staff placement
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CUSTOMER SERVICE Our Fuel Station will rely heavily on prompt and knowledgeable staff that will accommodate customers in leading them to their purchases and answer any questions they may have. Due to the Olympic games our staff will be composed of multi-national employees. In other words, the employees will be required to know at least one foreign language (other than English). We believe having multinational employees available for customer service will help increase sales and create a comfortable environment for the many nationalities projected to be present in our store at this time. To the right are the uniforms assigned to male and female employees to be worn while working to help distinguish them from customers.
Nike Tailwind ShortSleeve V-Neck
Nike Tech Women’s Running Capris
Nike Dri-FIT UV Miler Short-Sleeve Running Shirt
Nike 9” Stretch Woven Men’s Running Shorts
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product description The Nike Fuel Station offers a variety of products; some will be exclusive to the duration of the Pop-up Shop while others can be fund online and in other Nike retailers. The main promotion will be the Nike+ FuelBand. The FuelBand is currently available in the matte black style through Nike online. However, the Fuel Station will offer the FuelBand in the original black color, but will also be introducing the band in white and two limited edition bands for the Olympics that can only be purchased during the duration of the Pop-up shop. All four bands come in small, TLKP\T HUK SHYNL ^P[O [^V LHZ` [V PUZLY[ SPURZ ZV `V\ JHU ÄUL [\UL `V\Y Ä[ Along with the FuelBand, we will be selling three limited-edition Nike Dry-Fit short sleeve shirts, each with different designs that JVVYPKUH[L ^P[O [OL -\LS)HUKZ ;OL ÄYZ[ ZOPY[ ^PSS IL PU ISHJR coorinating with the original band, and have the words, “Make it Count” along with the Nike “swoosh” in a spectrum from red to green. The second shirt will be in white to coordinate with the ÄYZ[ VM [OL [^V SPTP[LK LKP[PVU -\LS)HUKZ ^P[O H KLZPNU PUZWPYLK I` [OL 6S`TWPJ 9PUNZ ;OL ÄUHS ZOPY[ ^PSS JVVYKPUH[L ^P[O [OL second limited edition FuelBand with the words, “Just do It” and a red, white, and blue design to honor the London location of the Olympics. All shirts will come in sizes ranging from XS-XXL [V TLL[ [OL ULLKZ VM L]LY` J\Z[VTLY ;OL ÄUHS WYVK\J[ [OH[ ^PSS be offered will be the Nike+ sport kit, which is a small compact carrying case for all your Nike+ products. Our Nike team believes that by offering a variety of products, some exlusive, and all at different price points we will be able to meet the needs of anyone who may come into our Fuel Station. 22
product assortment
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product assortment
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product assortment
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PRicing structure The Nike Fuel Station offers a variety of products all at different price points. We believe by offering products at a variety of price points we will be able to boost our sales goals for our pop up store. We will be working with two different pricing strategies. ;OL ÄYZ[ ILPUN WYLTP\T KLJV` WYPJPUN MVY V\Y SV^LY priced items. By offering the Nike FuelBand at a higher price, we are hoping to boost our sales through our lower priced items, such as the short sleeve shirts and Nike+ sport kit. The second pricing Z[YH[LN` ^L HYL \ZPUN PZ WYLTP\T WYPJPUN ZWLJPÄJHSS` for the FuelBands. With the FuelBand price being higher than the rest of the products, we are allowing the buyers to assume that the FuelBands are at a much higher quality and a more desirable product. The FuelBand itself will price out to be $149.00USD, the Dry Fit shirts will be priced at $28.00USD and the sports kits will be the lowest priced item at $19.99USD. Options for payment include cash payment in the local British pound. We will also accept Visa, Mastercard, Amex, Discover credit cards and debit in all the previous except Discover. Pre-paid gift cards from Visa, Mastercard, and Amex will also be accepted along with Nike gift cards. Being that we are a pop-up store we will not be doing any sort of discounts or bundling offers.
FUELBAND...$149.00 USD DRYFIT SHIRTS...$28.00 USD SPORTS KITS...$19.99 USD
PREMIUM PRICING
PREMIUM DECOY PRICING
Increased retail price of FuelBand
Increase retail price of FuelBand
Communicates quality to customers
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Boost sales of the lower priced merchandise
PRicing structure
$28.00 USD
$28.00 USD
$149.00 USD
$28.00 USD
$19.99 USD
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PROMOTION The Fuel Station set at the Olympics will serve as an opportunity to expand information of the FuelBand to a broad group of people. We will be using social media platforms and word of mouth to promote the location of the pop up store. Within the social media realm, we will be using YouTube to release videos to get our customers excited about the store. Other platforms include the rising popularity of Instagram and Twitpic to allow customers to send images or videos with the “#makeitcount” hash tag. People can stay connected with the Nike Twitter in real time. We will stream them through the Nike website with their name along with date and time. In addition we will display an advertisement on the London double decker sight seeing buses since that is a primary means of transportation for J\ZVT[LYZ 6\Y ÄUHS MVYT VM WYVTV[PVU is the exclusivity of the Olympic FuelBands and t-shirts selling only during the time of this pop up store. By doing this, we are trying to create a rush from our customers. By not giving them the option to hesitate to purchase the merchandise, the customer feels unique. 28
PROMOTION facebook
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PROMOTION Twitter
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PROMOTION blog blast
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conclusion In conclusion, after thourough research on the customer and location we have determined that a Nike Fuel Station would IL H ILULÄJPHS HUK WYVÄ[HISL opportunity for Nike. By placing a Fuel Station in Boxpark Shoreditch during the time frame of the Olympics Nike will be able to expand their customers’ knowledge. Moreover, Nike will be able to promote sales with the exclusivity of the Fuel Band by offering limited edition Fuel Bands and merchandise at the Fuel Station.
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