Nike pop up shop by Brittany Stafford

NIKE POP-UP SHOP

Brittany Stafford Emily Fayssoux Kyra Webb Allessandro Cannata FASM 410

TABLE OF CONTENTS

4 5 15 27 33 41 49 55 59 63 67

EXECUTIVE SUMMARY RETAILER MARKET ANALYSIS TARGET MARKET LOCATION, DESIGN, PRODUCT STORE DESIGN PRODUCT ASSORTMENT PROMOTIONAL PLAN BUDGET SALES FORECAST APPENDIX 3

Nike is a leading and innovative company for the activewear industry. Nike wanted to create awareness about women’s safety and set up a pop-up shop in New York City during the marathon week to showcase innovative gear and to promote healthy training and safe exercise. The pop-up shop is a week long and follows up to the NYC Marathon day as the last day for customers to experience Nike’s workshops on self-defense and flash gear display. Nike will be revealing an innovative biometric technology chip that tracks distance, heart rate, calories burned, movement, and location that connects with an app to a smartphone. Customers will be able to experience the technology while exercising in Bryant Park and can further choose to purchase. It is implemented in women’s sports bras and tops that use special material for compression to help track movements with the biometric chip. Our goal is to reach out to a younger generation of women and promote safety with our new flash gear and technology by purchasing this equipment at the pop- up shop.

RETAILER 5

COMPANY HISTORY Nike inc. Is a multinational corporation that sells footwear, apparel, equipment, accessories, and services. It started in 1950 when “there were two visionary men who pioneered a revolution in athletic footwear that redefined the industry” (Nike. Just do it). Nike first started as a company named blue sports ribbon, operated by Bill Bowerman and Phil Knight. Bill Bowerman was a track and field coach at the University of Oregon who always experimented with innovation in track shoes. In 1960, he partnered with a runner from Portland, Phil Knight, who was also interested in manufacturing footwear designs. Together they invested $500 into the company and ordered their first 300 pair of shoes in january, 1964. After hiring their first employee in 1965, as a company they created the first brochures, print ads, and planned for the launch of the first catalog. The first brick and mortar store was then opened in Santa Monica. In 1971, Nike brand was created. The company was rebranded and selected the now famous, “swoosh”, logo. The first Nike footwear line was released in 1972, just before the us track and field trials. Runners then showed a great interest in the new innovative shoe traction that Bowerman had actually simply created from a waffle machine. Nike’s first athlete endorsement was Steve Prefontaine. As a result of the Nike Air technology launch in 1979, the company entered the 1980’s on a roll. Nike then became a publicly traded company at the end of 1980. Following, in 1988, Nike came up with it’s known “Just Do It.” tagline. Throughout the 1990’s, Nike expanded their market. “In November of 1990, Portland became the first home to a new retail-as-theatre experience called Niketown, which would earn numerous architectural design and retail awards and spawn more than a dozen other Niketown locations around the USA and internationally” (nike.Just do it). Nike began to then sign individual players, and officially signed with Tiger Woods in 1996. Nike entered the new millennium offering the new shoe, nike shox, which debuted in Sydney in 2000. Two years later, Nike introduced the “secret tournament,” which was their first integrated, global marketing effort; this new approach has become the cornerstone for Nike marketing and communications. Today, Nike continues to see new innovation and develop superior athletic products for consumers. Nike is known for being one of the largest suppliers for athletic apparel. The CEO of Nike, Mark Parker, states “at Nike, Inc. We run a complete offense, and it’s based on a core commitment to innovation. That’s how we stay opportunistic, serve the athlete, reward our shareholders, and continue to lead our industry.”

SWOT ANALYSIS Strengths

Nike is the leader in the sporting industry Nike constantly presents engaging and powerful advertising campaigns They use a significant amount of high profile celebrity endorsements They are the leader in innovation Nike is a brand known worldwide They participate in global marketing events such as the World Cup and the Olympics

Weaknesses

They are lacking diversity of sports products offered History of violation of overtime laws and minimum wage rates in Vietnam Accusations have been reported of poor working conditions in the workplace Profits are largely dependent on footwear products Lack of control over supply and product quality Cambodia and Pakistan allegations for child labor and poor working conditions

Opportunities

Product expansion Focus on womens segment of market Building upon strong global brand recognitionâ&#x20AC;&#x201D;many markets that have disposable income to spend on high value sports goods; ex. China, India have new richer generation of consumers Advancements in wearable in technology e-commerce expansion

Threats

Currency value fluctuation Competitors are a constant threat Maintaining reputation of being eco-friendly Technology becomes obsolete because other brands are constantly putting out newer items Counterfeit Nike products

CORPORATE STRUCTURE

Top 5 Holders of Institutional Holdings Vanguard Group Inc.: 41,141,522

FMR LLC: 36,983,719 State Street Corp: 31,994,552 Bank of New York Mellon Corp: 22,236,447 Capital Research Global Investors: 22,055,284

Institutional Holdings 83.04% Total Number of Holders: 1,048

Total Shares Held: 573,601,162 Total Value of Holdings: 51,337,303,999 Net Activity: (5,120,941)

$26.1 billion Nike plans to increase revenues to $30 billion by 2017: As of 2014 , Nike’s revenue is

They will expand stores into new locations

They will boost their e-commerce capabilities They will focus on product innovation and building their brand They will focus on sustainability.

(“Nike, Inc. (NKE) Ownership Summary”)

(“Nike CR Report”)

GROWTH

Nike is projecting $30 billion in revenue by 2017.The company expects that its apparel, womens, and e-commerce businesses to support Nike Brand’s growth. Is womenswear the future of Nike? CEO Mark Parker already announced during the company’s presentation of its latest quarterly results that Nike saw a great deal of potential in products for women. The American sports giant is staking its claim. During a recent show in New York, the brand presented its spring/summer womenswear collections. Between footwear that integrates Flyknit technology, new bras and a series of performance models, with the help of a group of renowned athletes, the brand presented new running, training and sportswear products. Nike showed off not only its sports, but also its design credentials, incorporating collaborations with several designers. The brand has introduced a series of products by the Brazilian Pedro Lourenço that will become available on November 13 in select Nike stores (Nike. Just Do It). This approach, combining creativity with performance, should lead to further growth in Nike’s womenswear division. "Our relationship with our digital community of 65 million women, coupled with great product innovation, is driving our momentum,” remarked Parker. “And we expect to add another $2 billion in revenue to reach $7 billion ($5.5 billion euros) by FY17" (Guyote). These specific, numerical ambitions mean that Nike will have to put some effort into attracting female customers.

BRAND MATRIX HIGH PRICE

HIGH ACCESSIBILITY

LOW ACCESSIBILITY

LOW PRICE

Nike is the brand with the highest price and right behind Adidas in accessibility. Adidas is the most accessible brand on the chart and the second highest price. Reebok and Under Armour have the same average price point but Reebok is more accessible than Under Armour. New Balance has a slightly higher price point than Puma however Puma is more accessible than New Balance. This matrix represents where these brands stand in the sports market.

POSITIONING Nike has positioned itself as the leader in the sports industry not to mention one of the most well known brands in the world. This is why consumers are willing to pay a higher price for this technological apparel. They are more likely to make the expensive investments in Nike rather than one of it's competitors because Nike has a history of being a trail blazer in innovation. It’s dedication to innovation is what brings in new customers and keeps them loyal. Nike keeps the advantage over its competitors by using its $4 billion annual marketing budget to sign top athletes to promote the brand (Nike. Just Do It). Celebrity endorsements are a influencial tactic to increase sales because consumers want to buy the gear their favorite athlete uses in hopes they will perform better themselves.

DISTRIBUTION

Nike sells their products at a variety of stores other than their namesake: Dick’s Sporting Goods Modell’s Sporting Goods Sport’s Authority Finish Line Foot Locker Foot Action USA

COMMUNICATION/PROMO Nike’s world famous “Just Do It” campaign was introduced to the world in 1988 as an effort to reverse a mid-decade decline. It featured track icon, Walt Stack, running across the Golden Gate Bridge telling the audience he runs 17 miles every morning (Taube). One of the most effective ad campaigns the world has ever seen, “Just Do It” pushes consumers to get out there and stop making excuses. Nike is also known for their extensive number of celebrity endorsements. The brand has been represented with the world’s biggest athletes including Michael Jordan, Tiger Woods, LeBron James, Serena Williams, Maria Sharapova and countless others. Having these high profile faces draws in customers who aspire to be like their favorite athlete and wearing the same clothes is the closest they can get. They have an annual marketing budget of $4 billion that does not include the addition of tens of millions they pay to each individual celebrity endorser.

BUSINESS MODEL

Nike is involved in every aspect of the production of their goods. They design their products in house and then send their designs to their manufacturers. They do not own their manufacturing factories but have contracts with them ("Nike FAQs | Global Exchange"). They take their manufactured product and sell them through their own stores as well as third party vendors such as Dick’s Sporting Goods. They have an e-commerce platform as well where they sell their full product range and people from all the over the world can order goods and have them shipped directly to them.

MARKET ANALYSIS 15

PESTEL SOCIAL

Population: 318.9 Million High Standard of Living Corporate Social Responsibilty Highly Educated Population Women: 49% Men: 51% Median Age: 38

POLITICAL

Constitutional Based Trade Regulations State Laws New Free Trade Agreements

ENVIRONMENTAL

19% Global Emissions of Carbon Dioxide Environmental Planning Strong Environmental Policy Framework and Initiative Clean Air Act Climate Change

ECONOMIC

1.7% Inflation Rates One of the Most Developed Economic Systems Reshoring 28% of Global Apparel Retail Apparel Retail $371.2 Billion

TECHNOLOGICAL

Key Driver of Innovation Global STI Leaders Emergence of 3D printing Rise of E-commerce Omnichanneling Sophisticated Technologies

LEGAL

Trademark & Patent Protection US Customs Border Protection Equal Employment Laws Consumer Bill of Rights Product Safety Commission

*See Appendix A

DIRECT COMPETITION Adidas On August 18, 1949 Adi Dessler registered the “Adi Dassler Adidas Sportschuchfabrik” and started work with 47 employees. That day he also registered his first shoe with the famous Adidas 3 stripes. In 1954, the german national football team wore Adidas shoes when they won the world cup, making the brand a worldwide name. In 1967, they started their apparel line with the first iconic Adidas track suit. In 1970, they expanded their product line with their first soccer ball. In 1972, they presented the trefoil logo still in use today. In 1984 they led the way with the micropacer, a shoe with technological that tracked statistics for athletes. In 1995, with new ceo Robert-Louis Dreyfus the company went public. In 2000 it became the first brand of its kind offering sportsinspired streetwear.In 2006, Reebok joined the adidas family ("History"). Adidas operates over 1,500 stores available in over 45 different countries on 6 out of 7 continents all over the world. In 2004, Adidas launched “Impossible is Nothing” campaign. It was a year long campaign aimed at inspiring people to push their limits and break new ground. It featured 22 atheletes including Muhammed Ali, David Beckham, and Tracy McGrady who “challenge the impossible by taking risk, setting records, and changing conventions.” Chief executive, Herbert Hainer, is promising its most ambitious advertising campaign in the company’s history for 2015 in an effort to fight back against its rival, Nike.

New Balance William J. Riley founded the New Balance Arch and Support Company in 1906 to manufacture arch supports and other foot accessories to improve shoe fit in the boston area. In 1934 Arthur Hall became a partner and in 1956 he sold to business to his daughter Eleanor and her husband Paul Kidd. In 1960 they manufactured the worldâ&#x20AC;&#x2122;s first running shoe with a ripple sole. It was also the first shoe to come in a variety of widths. It became the unofficial shoe of the YMCA and was used in college and high school track teams all over the world, such as MIT and Boston University. In 1978 sales started to improve when they focused on creating a new balance culture at a time when the boom in running as excercise was happening. The brand prospered and expanded into a global company. Today it is run by CEO Robert Demartini. New Balance operates over 200 stores available on 4 continents all over the world. In 2013, New Balance launched their â&#x20AC;&#x153;Runnovationâ&#x20AC;? campaign which focuses on the social aspect of running and working out. The idea of this campaign is not to discredit working out alone but to acknowledge that there are those situations that the strength of a group pushes someone up the hill or around the track one more time. ("New Balance launches global brand campaign called, 'Runnovation' - Boston.com") One of the biggest campaigns they continually have as a brand is their position of being made in america. They reported that 1 out of every 4 pairs of shoes made in 2013 was produced or assembled in the USA. This is a major draw for customers looking to bring production back from over seas.

Puma Rudolf Dassler founded Puma on october 1, 1948. That same year they came out with their first football boot the “Atom”. In 1952 they launch the “Super Atom” the worlds first boot with screw in studs. In 1958, the company introduced its trademark logo, the puma formstrip. In 1962, Pele wins his second world cup in the brands gear. 1966 Introduced the Puma King, famous for its ankle support and ball control. In 1967 Lutz Backes, a cartoonist, created the legendary jumping cat logo. In 1991, Puma introduces trinomic technology into their running shoes. In 1999, Puma signs Serena Williams one year before her first grand slam win. In 2001 the speedcat is born. In 2004 they partnered with Scuderia Ferrari, the most successful formula one team of all time. In 2014, they introduced their most powerful boot, the Evopower, inspired by the freedom of barefoot kicking. Puma operates over 540 stores all over the world. Their products are available in 120 countries. In 1996 at the Olympics in Atlanta, Georgia, Linford Christie came to a press conference wearing blue contact lenses with the Puma logo white in the center of each eye. This stunt had Puma on the front of magazines all over the world the following morning ("Puma Contact Lenses"). In August of 2014 Puma launched its new campaign and mantra “Forever Faster”. They created this campaign with the mission of becoming the fastest sports brand in the world. They included athletes who stand out such as Usain Bolt, Mario Balotelli, and

Reebok Reebok got its start in 1895 as J.W. Foster and Sons. In 1958, Foster’s grandsons started a new branch of the company they named Reebok. In 1979, everything changed at the Chicago International Sneaker Convention a sporting goods distributor took notice of the brand and thought it was excel in the north american market. In 1981, they made over $1.5 million and in 1982 they took the industry by storm and introduced the first athletic shoe for women. In 1989, they entered the basketball market with the extremely successful “Pump”. Sales declined in the early 1990s and in 1996 they signed allen iverson as a celebrity endorser. In 2005, during NBA all star weekend they introduced the ATR Pump. Shortly after it was introduced however adidas bought the brand for $3.78 billion. Reebok operates over 500 stores all around the world. In 1992, Reebok launched “Clash of the Titans”, one of the world’s most famous advertising campaign. It introduced the world to Dan O’brien and Dave Johnson two men who had a high chance at medaling at the olympic decathalon in Barcelona, Spain. The campaign was just a thinly veiled message about their “clash” with titan of industry Nike. Reebok was trying to disrupt the monopoly Nike had on the track-andfield market. To this day this campaign is one of the most influencial of its time. ("Remembering Reebok's "Dan and Dave" Campaign 20 Years Later") In 2013 they launched their “Live with Fire” campaign. Their goal with this campaign is to change the way the public views excercise. They want to show how living an active lifestyle can “inspire people to live their lives with passion, intent, and purpose”. (Reebok Launches Inspirational “Live With Fire” Campaign)

INDIRECT COMPETITION Polo Polo Ralph Lauren started in 1967 as a men’s tie company. Ralph Lauren started with a $50,000 loan and within two years had a store inside the Manhattan Bloomingdale’s. In 1971, he launched his first collection of women’s apparel. The company went international in 1981 and the Polo Sport line was introduced in 1993. In 1997, the company went public and the New York Stock Exchange and in 2000 then ventured into the e-commerce world with polo.com. Polo has an extensive sports line for women which includes tennis gear, golf gear, as well as basics such as tank tops, pullovers, and active pants. Their iconic polo logo is embroidered into the top left corner of all tennis and golf polos. Ralph Lauren operate 179 stores in 6 stores on 6 continents around the world. ("Ralph Lauren Store Locations ") One of the most famous campaigns Ralph Lauren has put out in recent history is the Big Pony Collection. These ads feature four girls wearing brightly colored polos shirts, polo belts and pants. Each girl is wearing a vibrant color polo that has and oversized polo logo in a different bright color. This campaign was very successful because it caught the attention of everyone who saw the ad. It was four girls in head to toe bright pink, blue, purple, and yellow polo walking through a pasture. There are also oversized numbers on the sleeves and the back which really reference polo and the other sport categories Polo features.

Victoria’s Secret Sport In 1977 Roy Raymond had an idea to make a more appealing shopping setting for women and the men in their lives and the rest is history. As of 2012, Victoria’s Secret was worth $6.12 billion a far cry from the $80,000 it used to start the business. In 2012 Victoria’s Secret launched an athletic line, Victoria’s Secret Sport. This was a smart move by the company because no one knows a woman’s body better than Victoria’s Secret. They decided to capitalize on this notion and create a comfortable affordable, and chic line of active wear for women. They carry sports bras, workout leggings, tops, and jackets ("Victoria's Secret's New Sport Collection Is Simply EVERYTHING"). These are just the early stages so we can expect future expansion. Victorias Secret operates 1,100 stores all over the US, Canada, and the UK. Because Victoria’s Secret is still a relatively new introduction to the brand’s lines Sport has not had very many ad campaigns. They did however make a video that can be accessed online at VSAllAccess. It’s a video a little under a minute long that shows all the different angels working out in the Sport collection. This video was a good marketing tactic because it gives the customer a behind the scenes look at their favorite angel to see what they are wearing and how they are excercising ("VS All Access: Victoria's Secret Sport: Train Like An Angel"). Victorias Secret Angels have arguably some of the most desired physiques by women and by showing videos of them working out it creates an aspirational quality that the consumer can look like that too if she wears their product.

Gym Membership Gymansiums have been used as far back as Ancient Greeks. They used these gyms for military training, physical therapy for the week or injured, and fitness sports. Eventually gyms were estalished as a place for olympic athletes to have a place to work out on their own ("The Rise of the Gym Through History"). In 1825 Charles Beck established the first gymnasium in the United States. The YMCA was established in 1851 in Boston, Massachusetts. Throughout the 1920s there was a large increase in the building of public high schools with gynmnasiums. Today monthly memberships to gyms such as YMCA, Gold’s Gym, 24 Hour Fitness, or Planet Fitness can range from $30-$100+. It’s an expense people use their disposable income for because they may feel the benefits are greater than those benefits of purchasing a single pair of running shoes. Gym memberships give clients the freedom to come and go as they please. They always have a to excercise no matter the weather or time, depending on the establishment. These are factors one might consider when deciding how to spend the extra income they have at the end of the month. Gold’s Gym came out with a very interesting print advertising campaign where they had plain colored backgrounds with powerful imagery targeted towards health and fitness. One image had a yellow background with the word “FAT” three times and a overweight man in the middle as a the letter “A’. By the third word he was thin and in shape and the word had turned into “FIT”. Another ad also placed on a yellow background has an image of a heart and under it reads “Face it. You can’t live without me.” These ads do a nice job of recognizing the issues of obsesity and heart disease without bombarding us with negative imagery. These ads take a positive look at the problems by offering

Marathon The modern marathon was originally a 24 mile run to commemmorate the run of the soldier Pheidippides from a battlefield at the site of town Marathon, Greece to Athens in 490 B.C. The first organized 24 mile marathon took place at the Olympics on April 10, 1896 as a way to revive the legend of Pheidippides. In 1908 at the London Olympic Games the distance of the marathon was changed to 26.2 miles. The extra 2 miles was added on so the race could finish in front of te royal familyâ&#x20AC;&#x2122;s viewing box. After 16 years of debate this became the official distance of a marathon at the 1924 Olympics in Paris, France ("Marathon Running Statistics"). The record time for the fastest marathon ever run is two hours three minutes and fifty-nine seconds which is approximately one mile every four minutes and forty-five seconds. The average cost of a marthon is $67. The average number of pairs of tennis shoes runners go through while training is 2. The average number of calories burned by a woman during a marathon is 2,880. The average number of miles run per week during training is 40 ("Marathon Running Statistics"). These statistics point to a consumer who is dedicated to setting and accomplishing their goals. For some people running a full marathon is a lifelong goal and the value of accomplishing that goal is priceless, this could lead to consumers spending money on an entrance fee rather than buying a new pair of leggings. Different products and services hold different priorites to different people which lead to tough buying decisions.

STATE OF INDUSTRY The activewear industry has increased by 4% in 2013 to reach $81.7 billion and Nike is the industry leader followed by top rival, Adidas. Activewear brands have been trying to make a mark with technologically advanced materials. Under Armour introduced charged cotton as the world's first true performance cotton, it is a "supercharged fabric that has advanced moisture wicking properties" that makes it capable of drying five times faster than standard materials. Asics has created a battery operated jacket that lights up in the dark for more visibility in the dark. Reebok's ZigTech running shoes have a "noodle" bottom that is designed to reduce muscle fatigue. These shoes opened to large success in Europe and soon gained a large U.S. following. Technology in sportswear is at a pivotal moment with major international brands competing to present the newest products and climb the market ladder. ("Advances in Technology Drive Menâ&#x20AC;&#x2122;s Activewear Market")

TARGET MARKET 27

Our target customers are millennial women who were born from 19802000. They are very diverse among other generations and have been surrounded by technology their whole life and are no stranger to the internet. This generationâ&#x20AC;&#x2122;s digital tendencies mean that marketers need to keep up with reaching out to their customer base. There are about 77 million millennials in the U.S. and 4.3 million in New York, including men, and make up about 24% of the countryâ&#x20AC;&#x2122;s population (Nielsen). Technology is essential to millennials, they go nowhere without their smart phones, which is what makes this generation unique. About 47% of millennial women have jobs (Abraham, 50 Facts About Millennials) and the younger millennials (age 18-27) make an average income of $25,000 and older millennials making almost double the amount at $48,000 a year (Demographic Stats About US Millennials). About 33% of millennials live in cities and 34% of women have a bachelorâ&#x20AC;&#x2122;s degree, the highest out of any generation. Millennials always want to buy the latest technology and trends for an immediate satisfaction. Up to 88% use some form of exercise (Lesonsky, Gen Y and Health and Fitness) which has a huge market for activewear to reach out to these consumers to purchase goods.

New York millennial women are always looking for the latest and upcoming events that take place in the city. There are many that take place throughout the year and pop up shops located in the city. They share a sense of connectedness through the internet and have a need for instant gratification (Marketing Psychographics-Talkin’ Bout My Generation). Millennials grew up to be money cautious and have a need for safety because of global incidents. They require a need to protect themselves from harms way, especially women, which is why Nike is offering self defense classes to promote women’s safety. Millennials are also very concerned about the environment and their impact on society. They conserve energy and are interested in purchasing “green” items, so they have a tendency to be more attentive to a company’s CSR.

Millennials are connected to the virtual world and take in a lot of their information through viewing social media sites. More than 50% of them view social media while in the bathroom. 41% of millennials have purchased items on their phones (Abraham, 50 Facts About Millennials). They use apps to seek out deals and coupons while shopping. By targeting millennials through social media outlets, we are able to reach out to our customers for this promotional event. Millennials do not like advertisements in general, they are less likely to be influenced by ads on TV and tend to ignore them. By posting this event through social media and through news sites and bloggers, word will spread quickly among this generation, especially in a trendy city like New York. Women are influenced by brands and share their opinions with their friends and family as well as online. â&#x20AC;&#x153;Women value relationships and seek out brands that allow them to connect with each other. Engagement is a phrase that has been consistent in discussions about millennials. Women especially want to be included in the conversation instead of being told what to do or what to purchase. When marketing to millennial women, it is important to realize that they are a demographic of their own and value inspirational messages, interesting visuals and the opportunity to voice their opinionsâ&#x20AC;? (Fromm, Millennial Marketing). Millennial women are looking for products that have a subliminal message behind them as well as multi-use for their products.

Name: Danielle Bryan Age: 26 Education: College graduate Income: $36,000 Location: Lower East Side Occupation: Actress Interests: fashion, photography, spending time with friends and family, fitness Habits: impulse shopper, up to date on current trends, prefers in-store experience to e-commerce platform

Name: Abby Pickett Age: 20 Education: College student Income: $10,000 Location: SoHo Occupation: Student Interests: live music, pop culture, reading, going to the movies Habits: conservative with her money, does extensive research before purchasing, interested in finding creative ways to work out

LOCATION DESIGN & PRODUCT 33

LOCATION SELECTION Location We have chosen to place our Nike pop up shop in Bryant Park in New York City from June 1-7, 2015. In an age of feminism and female empowerment all around us, our popup shop is targeted at millenial women to encourage self awareness, independence, and strength. Our target market is millennial women and New York is a beacon for youth and independence. Bryant Park is located between 5th and 6th avenue and 40th to 42nd street. Our shop takes place at the beginning of summer which is a high foot traffic season and one of the main pass times is to go spend the afternoon at the park. We will be offering them the chance to spend the day at the park and learn some new skills to defend and protect themselves.

Area Competition Bryant Park is located in a busy part part of Manhattan, between 5th and 6th avenue and 40th and 42nd street. Surrounding businesses that would serve as competition include Pilates Reforming New York. Our target customer is dedicated to health and always looking for a fun way to work out so the pilates studio stands to take away potential customers. Womenâ&#x20AC;&#x2122;s City Club of New York is a few blocks away from the park and has potential to distract women who want to go to the park, but might have a limited schedule to complete their workout. Lucille Roberts Gym is also a surrounding gym that could draw customers who do not want to be outside or prefer less people around them when excercising. The last potential competitor would be Kingâ&#x20AC;&#x2122;s Thai Boxing. Our pop up shop is promoting the strength of women and we offer a self-defense class; women looking for a more strenuous defense class could look here has an option.

Area Factors

We have chosen a very accessible location in an effort to attract as many potential customers. There are 5 subway lines that have a stop directly at Bryant Park. Around the 6 block radius of the park there are 15 different buses that have stops. Taxis and Uber cars are always available if our customers does not prefer public transportation. Not many people drive their own cars throughout the city because there are no parking decks or lots available and the only parking permitted on the side of the road is for city workers. A large amount of residents prefer walking as their prominent form of transportation.

Area Attractions

Bryant Park is located near three of New York City’s biggest tourist attractions: The New York Public Library, Grand Central Station, and Times Square. The public library is located directly behind the park and attracts tourists looking to tour the landmark. Grand Central Station brings in thousands of people a day who take the train into the city or just want to eat lunch in and take pictures in the famous foyer. Times Square is a few blocks away which is arguable New York’s largest tourist attraction. It is a melting pot of age and ethnicity which spills into the rest of the city. Directly around the park are stores including H&M, Zara, Urban Outfitters, and BCBG Maxazria these combined with restaurants such as Pret a Manger and Chop’t will give us access to consumers who are shopping and out to lunch for the day.

Segmentation Stay current with pop culture

Fitness is important to them

Always on the latest food trend: juicing, kale, avocado

Watch reality television

Enjoys bicycling Socializing at bars and clubs

Community outings such movies in the park

Staying on trendâ&#x20AC;&#x201D;shopping

Enjoys live music

An optimistic attitude toward life

Confident being single

Independent

Exploring the city; Brooklyn, Chelsea

Watches soccer

Human Resources To staff our pop up shop we will need employees to man the tent and sell our product offerings, we will need 1-2 trained instructors to teach our self-defense class. To staff the tent we intend to pull select managers and employees from the Manhattan Nike stores. We believe this will be beneficial because they are the most educated on the brand. They are the most familiar with the product line so they will be able to answer any questions the customer may have about the Flash product line. They will be paid their hourly rate as if they were in the store. We will be renting a tent so the company we do business with will provide employees to assemble and disassemble the structure.

Legal

A typical liability insurance policy for using the park covers a minimum of $3 million per occurence. All events must provide a deposit for any potential damage that may occur to park property. Hosting an event in the park requires several permits including NYC Department of Parks & Recreation Special Events Permit, Street Activities Parking Permits, and a Department of Buildings Structures Permit. Nike needs each permit for a specific reason. The Recreational Special Events permit allows them to host the popup shop in Bryant Park. They neeed the Street Activities Parking permit so the event company will be able to unload and reload the tent and all of the furntiture. The Building Structures permit allows Nike to put up a tent in the park. All of these permits must be obtained prior to and event to prevent any issues from occuring and disrupting an event. ("Bryant Park Event Planning Guide")

Bryant Park, NYC

Pop-Up Shop Space

When exiting the tent the customer will take a left if she has signed up for the self defense class we are offering. The class is set up on the lawn allowing the women to excercise in the nice outdoors. Each class has a maximum of 15 people so it maintains the individual experience with the instructor. The instructor will navigate the class to help the class members and improve their form. When they finish the class they will get a t-shirt created for the event. They have the option to test the new technology we are selling during their class to get a feel for how it works.

PRODUCT ASSORTMENT 49

Nike Shield Flash Max

black/polka dot

Cost: $495.00 Sizes: xs,s,m,l,xl

Nike Flash

black/gold stripes black/silver stripes

purple/silver stripes

Cost: $150.00 Sizes: xs,s,m,l,xl

Nike Elite Compression

black/neon yellow

grey/grey

neon yellow/grey Cost: $50.00 Sizes: 1,2,3,4,5,6

Nike AW84 Flash

metallic silver/black

Cost: $50.00 Sizes: one size

Nike Vapor Flash

Nike Storm Fit

neon yellow/black

grey/green/black

Cost: $45.00

Cost: $35.00

Sizes: one size

Sizes: xs,s,m,l

Nike Dri-Fit Nike Dri-Fit black

pink/grey neon yellow

neon yellow/grey hot pink Cost: $30.00 Sizes: s/m, l/xl

Cost: $15.00 Sizes: one size

Nike Pro Fierce Mezzo

white/black

Biometric Chip Cost: $100.00 Sizes: xs,s,m,l,xl

Nike Dri-Fit Knit

Cost: $200.00 Sizes: one size

heather grey/black

Cost: $150.00 Sizes: xs,s,m,l,xl

The biometric chip will be placed in the sports bras in the band and around the chest for the compression shirts. It collects data from sensors that send updates to a Nike smartphone app. It tracks distance, movement, calories burned, heart rate as well as your location. The GPS locator is used for emergency purposes for people who like to run at night or alone so if anything were to happen to them, a loved one will be notified of their location. The sports bra and compression shirts contain special material that helps keep the customer motivated by increasing blood circulation and it is even temperature controlled; keeping you cooler or warmer depending on the weather. The garments are water resistant and are machine washable, but the technology chip must be taken out before washing. The app helps motivate the consumer to reach their goal or push them further with their workout. They can compare their results to their previous workouts or even their friends. Once they have completed working out they just tap the chip and it ends the workout. The technology chip costs $200 and is separate from the sports bras and shirts that are specially made for the technology chip.

PROMOTIONAL PLAN 55

Week 1

Week 2

Week 3* Event Week

Week 4

Social Media Facebook

Week 1

Week 2

Week 3* Event Week

Week 4

Social Media

Twitter Instagram

Facebook

Blogging

Twitter

Digital Marketing YouTube

$320,500.00

Instagram Blogging Digital Marketing

Email PR

YouTube Ads

Posters/Banners

Email PR

Event Marketing Self Defense Classes

Ads

$78,350.00

Posters/Banners Event Marketing

Sponsorships Point of Sale Giveaways

Self Defense Classes

$3,820.00

Sponsorships Total

Point of Sale Giveaways Total

1 1

Total $961,500.00

$1,364,170.00

Nike spends $800 million on non-traditional marketing a year (Cendrowski, Fortune). For this pop-up shop, Nike is promoting this event mostly through social media outlets. Social media is a great outlet to reach out to our target demographic. News outlets are another way to hype up the event, through bloggers, news sites, fashion media and event media, Nike will spend $961,500 on social media and digital marketing towards the pop up shop, which is a fractional cost from the original $800 million spent on marketing. Nike spends $50,000 on sponsorship for runners in marathons to wear their clothing (Vigneron, ESPN). The self defense classes cost $30.00 per person, per class and there will be a class every hour during the day (10:00am-8:00pm). Each instructor will get paid per class ($3,500 in total) and the total cost for giveaway shirts will go out to each person who participates in the self defense classes, which cost $3,820. In total, the promotional marketing will cost $1,364,170.00.

BUDGET 59

Product Categories Tops

% 20%

Day 1 $14,480.00

Day 2 $16,160.00

Day 3 $17,280.00

Day 4 $17,920.00

Day 5 $19,040.00

PRODUCT CATEGORIES

Day 6

Day 7*

Total

$20,000.00

$21,120.00

$126,000.00

Sports bras

20%

$14,480.00

$16,160.00

$17,280.00

$17,920.00

$19,040.00

$20,000.00

$21,120.00

$126,000.00

Biometric Tech Chip

$3620.00

$4,040.00

$4,320.00

$4,480.00

$4,760.00

$5,000.00

$5,280.00

$31,500.00

Bottoms

20%

$14,480.00

$16,160.00

$17,280.00

$17,920.00

$19,040.00

$20,000.00

$21,120.00

$126,000.00

Jackets

$3620.00

$4,040.00

$4,320.00

$4,480.00

$4,760.00

$5,000.00

$5,280.00

$31,500.00

$30,000.00

Accessories

30%

$21,720.00

$24,240.00

$25,920.00

$26,880.00

$28,560.00

$31,680.00

$189,000.00

Total Revenue:

100%

$72,400.00

$80,800.00

$86,400.00

$89,600.00

$95,200.00 $100,000.00 $105,600.00

$630,000.00

Units Product Categories Dri-Fit Knit Top Pro Fit Fierce Mezzo Sports Bra Biometric Technology Chip Flash Legging Shield Flash Max Jacket Dri-Fit Leg Warmer Vapor Flash iPhone Case Storm Fit Gloves Dri-Fit Headband Elite Compression Socks AW84 Flash Cap

Unit Price Product Categories 2 Dri-Fit Knit Top Pro Fit Fierce Mezzo Sports Bra Biometric Technology Chip Flash Legging Shield Flash Max Jacket Dri-Fit Leg Warmer Vapor Flash iPhone Case Storm Fit Gloves Dri-Fit Headband Elite Compression Socks AW84 Flash Cap

$150.00 $100.00 $200.00 $150.00 $495.00 $30.00 $45.00 $35.00 $15.00 $50.00 $50.00

Day 1 96.53 144.80 18.10 96.53 7.31 120.67 80.44 103.43 241.33 72.40 72.40

Day 2 107.73 161.60 20.20 107.73 8.16 134.67 89.78 115.43 269.33 80.80 80.80

Day 3 115.20 172.80 21.60 115.20 8.73 144.00 96.00 123.43 288.00 86.40 86.40

Day 4 119.47 179.20 22.40 119.47 9.05 149.33 99.56 128.00 298.67 89.60 89.60

Day 5 126.93 190.40 23.80 126.93 9.62 158.67 105.78 136.00 317.33 95.20 95.20

Day 6 133.33 200.00 25.00 133.33 10.10 166.67 111.11 142.86 333.33 100.00 100.00

Day 7* 140.80 211.20 26.40 140.80 10.67 176.00 117.33 150.86 352.00 105.60 105.60

Day 1 $14,480.00 $14,480.00 $3,620.00 $14,480.00 $3,620.00 $3,620.00 $3,620.00 $3,620.00 $3,620.00 $3,620.00 $3,620.00

Day 2 $16,160.00 $16,160.00 $4,040.00 $16,160.00 $4,040.00 $4,040.00 $4,040.00 $4,040.00 $4,040.00 $4,040.00 $4,040.00

Day 3 $17,280.00 $17,280.00 $4,320.00 $17,280.00 $4,320.00 $4,320.00 $4,320.00 $4,320.00 $4,320.00 $4,320.00 $4,320.00

Day 4 $17,920.00 $17,920.00 $4,480.00 $17,920.00 $4,480.00 $4,480.00 $4,480.00 $4,480.00 $4,480.00 $4,480.00 $4,480.00

Day 5 $19,040.00 $19,040.00 $4,760.00 $19,040.00 $4,760.00 $4,760.00 $4,760.00 $4,760.00 $4,760.00 $4,760.00 $4,760.00

Day 6 $20,000.00 $20,000.00 $5,000.00 $20,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00 $5,000.00

Day 7* $21,120.00 $21,120.00 $5,280.00 $21,120.00 $5,280.00 $5,280.00 $5,280.00 $5,280.00 $5,280.00 $5,280.00 $5,280.00

Total 840.00 1260.00 157.50 840.00 63.64 1050.00 700.00 900.00 2100.00 630.00 630.00

Total Revenue $126,000.00 $126,000.00 $31,500.00 $126,000.00 $31,500.00 $31,500.00 $31,500.00 $31,500.00 $31,500.00 $31,500.00 $31,500.00 $630,000.00

EXPENSES Expenses Week 1 COGS Promotional $ 87,000.00 Build of Space Set up Production Tent/interior Extra Interiors Exterior Class Instructors T-shirt Giveaways Wages I-pads Interactive Technology $ 9,000.00 Break Down Production Total Expenses

Week 2 $ $

$ $ $

96,000.00 $

Week 3* Event 340,000.00 $ $ 530.00 $ $ $ $ 3,820.00 $ 3,475.29

Week 4

834,670.00 $ 2,000,000.00

102,500.00

26,600.00 2,000.00 3,200.00 3,150.00 6,440.00

$ 347,825.29 $

530.00 103,030.00 $

2,876,060.00 $

Interior Fixtures Unit Cost Units Tent/Interiors $ 3,800.00 Round Tables(included) Square Tables(included) Large Table(included) Temporary Walls(included) Chairs(included) Flooring(included) 32x60 sq ft Indoor Lighting (included) Small Signage $ 200.00 Quote Signage $ 300.00 Floor/wall Lighting $ 50.00 Floor Lamps $ 80.00 Exterior Fixtures Unit Cost Units Large Signage 400 Large Light Signage $ 2,000.00 Total

Cost 7 $ 8 8 2

3,422,915.29

26,600.00

1 3 10 5

$ $ $ $ Cost

3 1 $ $

200.00 900.00 500.00 400.00 1200 2,000.00 31,800.00

Total Revenues Product Classes Total

$ $ $

630,000.00 28,350.00 658,350.00

COGS Product Classes Total

$ $ $

252,000.00 6,970.00 258,970.00

Expenses Expense Total

3,422,915.29

INVESTMENT

3,023,535.29

TOTAL INVESTMENT: $3,023,535.29

SALES FORECAST 63

Day 1 Foot Fall

Day 2

9050

Conversion Rate

Day 3

10,100

Day 4

10,800

Day 5

11,200

Day 6

11,900

Day 7*

12,500

Total

13,200

Average Basket

$100.00

Total Revenue:

$72,400.00

$80,800.00

$86,400.00

$89,600.00

Product Categories

Day 1

Day 2

Day 3

Day 4

$95,200.00 $100,000.00 $105,600.00 Day 5

Day 6

Day 7*

$630,000.00 Total

Tops

20%

$14,480.00

$16,160.00

$17,280.00

$17,920.00

$19,040.00

$20,000.00

$21,120.00

$126,000.00 $126,000.00