Project Triumph

“To give anything less than your best is to sacrifice the gift.” -Pre

MY MISSION Develop, understand, and shape cultural meaning in ways that benefit the Nike Sportswear Brand.

MY RELATIONSHIP WITH THE SWOOSH

I’ve been a part of the sneaker subculture since the birth of SBs. For me, joining the subculture wasn’t about skateboarding. It wasn’t about endorsement deals with Reese Forbes, Danny Supa, or Rob Mulder. I joined because I wanted to feel marginalized by mainstream culture. I wanted to be a part of a selective social group that shared an active identity an identity marked by one of the most iconic brands in the world: the Swoosh.

I made a point to be different. As the subculture had yet to be commercialized, my identity remained insulated and protected from trend vultures. But over the years, people began to catch on to the movement. Like a prevailing virus, social capital for the once marginalized group was steadily growing and, as a result, the subculture was moving mainstream.

New SBs began flooding the market. SB accounts in local skate shops were on the rise, making the shoes more accessible to consumers. Some argued that Nike was commodifying the culture, while others argued that they were keeping up with demand. Nonetheless, Nike was able to create and sustain

value in a market that was deemed “saturated.” e number of SB Dunks available made choosing the shoe a chore. In addition, the excess of consumer choice calmed the thrill of buying into exclusivity and rarity. However, to the new-age sneakerhead, it wasn’t about buying into such thrills. It was more about subscribing to hype, the often criticized stimulus known to perpetuate irrational exuberance. But above all, it was about buying into the totality of the SB experience. e outbreak, led by Nike, influenced consumer segments that were polar opposites from one another. But how so?

e dialogue between the consumer and the brand was one of intimacy. e deeper the dialogue, the deeper the brand connection. Nike was able to enhance the brand experience by situating its product within the culture of skateboarding. In contextualizing the SB movement, there was a fundamental shift in how the non-skateboarder public now viewed skateboarders. To Nike’s credit, they were able to successfully tie the product to the notion of nonconformity, a faddish expression among today’s youth. And so, consequently, an enduring brand was built.

CASE STUDY 1.1

NIKE TECH-PACK LEVERAGING THE VALUE OF THE BRAND TO INCREASE ITS REACH

> Contextualizing Tech-Pack in today’s cultural & economic environment.

> Re-launching the brand while deepening the existing customer relationships.

BY BENYAM TESFAI

BACKGROUND

e Tech-Pack Line was artfully crafted by fusing elements and fabrics of Nike’s history into modern contemporary streetwear.

e Line, selectively distributed and sold in high-end boutiques, rewrote the rules of traditional sportswear. Accented with novelty, Tech-Pack was constructed with a minimalist feel. Consumers liked it because it was active yet casual, and didn’t look overbuilt.

In its attempt to reach the aspirational affluent lifestyle consumer, Nike knew that it could not pitch Tech-Pack in a traditional manner. Moreover, it would have to craft a way to keep the Line inclusive, yet still exclusive. Rather than touting the performance attributes of Tech-Pack, Nike reached its customer base through an alternative selling point. It engaged the consumer by evoking emotion towards the brand experience. Assuming strengthening cultural value would lead to greater sales, Nike focused on the cultural context of the consumer.

e Tech-Pack campaign was very unique. Nike leveraged non-mainstream influencers (i.e. cultural heroes) with brand attributes that personified those of the products. For example, Vashtie Kola, an NYC slasher, was chosen to endorse the TechPack line because she possesses a number of qualities that fit with the brandshe is artistic without losing authenticity, and has a sense of style. She also has a following, not just an idle audience. Vashtie and other “messengers of cool” were interviewed to tell their stories while wearing articles of Tech-Pack. Later, the videos were posted online to create buzz and were accessible on both Nike’s website and YouTube. e initial campaign was very clever in that even though Nike was targeting a specific consumer segment, they actually allowed for the consumer to define the brand and thus create that brand awareness. As a result, it wasn’t Nike who built up the brand community, but rather the consumers. e interaction between Tech-Pack and the consumer was stimulated by the feeling of authenticity and the notion of brand ownership. ose feelings, which were associated with the brand touch points, are what the consumer ultimately bought into.

SITUATION

Per the U.S. Department of Labor, the September 2008 Consumer Price Index (CPI) registers at 214.9—its highest level to date. Revenue growth within the retail sector is an anemic 2.2% in 2008, down from 6.4% in 2004. Also, in its latest quarter, Nike U.S. Apparel posted a 3% drop in revenue, to $450 million. While consumers are tightening their belts, what should Nike do to continue the growth of Tech-Pack line and pry open the wallets of its consumers?

Due to the extreme marketplace conditions, Nike’s divisional sportswear line, Tech-Pack, is faced with strategic challenges. While management could take a reactive approachcutting costs, aggressively discounting, or reducing sales expectations for the next quarterit doesn’t serve as a satisfying solution to the present economic constraints.

“When the going gets tough, the tough innovate.”

RE-FRAMING THE PROBLEM

In this economy, rather than responding to the recession, Nike should attack it by re-framing the existing problem and look to identify new opportunities. NSW should grow Tech Pack and ensure that it remains a defensible high-end lifestyle product.

ADDRESSING A GROWING CONSUMER SEGMENT

Nike should continue to look to create new markets, new segments in which it can become a point of reference and above all the market leader. In a compelling proposition to grow the line, Nike should re-launch the Tech-Pack campaign to focus on the female lifestyle segmentcreating an equal opportunity for streetwear. A consumer segment that was once treated as an afterthought has recently shown tremendous growth in the sneaker industry. In the last two to three years, there has been a rise in the number of female sneakerheads. is growing segment is an opportunity for Nike to reach out to a growing consumer base. Furthermore, while we head deeper into a recession, conventional wisdom holds that the female affluent market is least affected by economic ups and downs. I propose that Nike create a viral marketing campaign on YouTube revitalizing the Tech-Pack line with a female twist.

REMAINING RELEVANT DURING DIFFICULT TIMES

It’s important that Nike & Tech-Pack stay emotionally connected to its consumers. From a branding perspective, deepening the emotional connection will strengthen the cultural capital for the target market and also enrich the potency of the brand. By weaving the brand into the consumer’s reality, Nike drives emotional rather than rational judgement. is strategy, considering the present economic condition, is a befitting alternative to discounting the product (brand equity dilution), with little inherent. Furthermore, as a consumer, I’ve realized that the more entrenched I become in a culture, the more loyal I am to the brand of that culture. In essence, consuming the experience leads to consuming the product.

GLOBAL SPORTSWEAR:

In the capacity of brand management or strategic planning, I confidently believe that I would make valuable contributions in either department.

I am innovative and provoke ideas. I can effectively identify and communicate my vision. I am rich in Nike’s history and understand the core values in which this corporation was founded. I have relevant and real consumer insight, not just from reading textbooks and articles, but from actually being that consumer. I have followed the subculture since 2002 and am aware of what influences this segment. Lastly, I inspire enthusiasm and encourage commitment in an enduring fashion.

If there is one company that I am immensely passionate about, it is Nike. To me, Nike is bigger than a Brand. It’s pop culture. It’s a way of life that advocates fitness and strength. It’s a loyal and dependable companion, that when I push, I feel it pushing back. Nike is inspiration.

My aim is not to reinvent the sportswear division, but rather reinforce its foundation, increase its visibility, and utilize my skill sets to maximize its profitability.

I invite you to consider my candidacy for a full-time position within Nike.

I’m a strategist. I’m a team player. I’m a visionary. I’m a runner. I’m a competitor. And I’m hungry.

BENYAM TESFAI

I watch trends. Sense movements.

2701 4 th Street NE Apt. 101 Washington, DC 20002 573.230.2011 Benyam.Tesfai@gmail.com

EDUCATION

HOWARD UNIVERSITY Washington, DC

MBA Candidate, Concentration: Finance, May 2009 Graduate Assistant Scholarship

1st place in 2007 Howard University Stock Simulation Challenge. 62.62% Return. GPA: 3.5

UNIVERSITY OF MISSOURI Columbia, MO

Bachelor of Business Administration: Marketing, December 2005

Activities: Marketing Club, Big Brother Big Sister (Mentor/Tutor), Digital Media Club

STATE STREET CORPORATION Boston, MA

Global Markets Intern June 2008 - August 2008

> Analyzed Fund Connect’s competitors and developed ways to reposition the Bank product.

> Created an actionable & comprehensive fund list for State Street’s Money Market Portal.

> Designed state of the art marketing collateral for Fund Connect.

> Finished top 3 in the Global Markets Intern Equity & FX Trading Challenge.

CENTRAL TRUST & INVESTMENT CO Jefferson City, MO

Mutual Fund Specialist February 2006 – August 2007

> Processed mutual fund trades submitted by the investment of cers of the holding company’s trust departments.

> Structured bond and equity research using Bloomberg.

> Facilitated the transfer of trust accounts.

> Prepared Fidelity transfer paperwork and effectively communicated with trust managers to ensure customer satisfaction.

> Processed monthly, quarterly, and semi-annual mutual fund dividends (cash/reinvest).

LEADERSHIP EXPERIENCE

NEW YORK SNEAKER EXCHANGE (NYSE) PROJECT Creator, newyorksneakerexchange.com May 2007 – Present

> The NYSE is an initiative to stimulate economic and nancial literacy by using a sneak er model.

> The objective in this project is to help today’s youth understand basic economic and investing principles such as supply & demand, scarcity, market saturation, purchasing power, conspicuous consumption, and investment strategy.

> The goal of the NYSE is to get our youth to think like economists and to become more savvy consumers.

MUNITY (Immunity) SERVICE ORGANIZATION Columbia, MO Co-founder of MUNITY August 2005 – May 2006

> MUnity is a service organization designed to educate children in South Africa.

> Raised $10,000 in a single year through community activities and corporate sponsored events.

> Sponsored entire elementary education (K-6) for 100 children. Kalksteenfontein Primer, Cape Town.

> Installed heaters in 13 classrooms.

ADDITIONAL

> Finance/Investment Club, Marketing Club

> Collegiate Track & Field-University Of Missouri, Kansas City

> Pro cient in Microsoft Of ce Suite & Adobe Creative Suite

> Finished in the top 2% of the CNBC Million Dollar Stock Challenge, 2007

“Take time to deliberate; but when the time for action arrives, stop thinking and go in .” -Napoleon Bonaparte TESFAI