MILAN ITALY
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MARKETING PLAN CARLOTTA CONCAS NABA 2011/2012
contents
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NIKE -history -market -logo evolution -mission
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NIKE wol -mission -product values -where
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market research
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marketing objective marketing analysis
-questionnaire
-segmentation -environment analysis -SWOT
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marketing strategies -marketing mix -advertising strategy -brand positioning -Ansoff matrix -Porter’s competitive strategy -five forces analysis
037 038 039 040
communication objectives communication strategy social marketing concept advertising
95 nike HISTORY
who we are
The company was founded on January 25, 1964 by Bill Bowerman and Phil Knight from Oregon.
Bowerman, a track coach and Knight, a runner, were two visionary men
who pioneered a revolution in athletic footwear: their idea was to create an innovative shoe. At the beginning the company was called Blue Ribbon Sports, but later they changed the name into “Nike” after the ancient Greek goddess of victory, and the swoosh logo was added.
In 1972 Nike became a very important brand: some of the top olympic mar-
athon runners were wearing Nike shoes and this had a very strong impact in the sports world.
Running was becoming increasingly popular; with a new logo, new name, innovative design and important athletes endorsing the new shoes, Nike increased profits considerably.
In the mid 80s running became less popular, Nike shifted its products to other areas and continued doing so.
Then, when Nike created special basketball shoes “AIR JORDANS”, the company became again the number one making enourmous profits. Nike chose Michael Jordan as testimonial.
They quickly reached the top with their Air Jordans.
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Steve Prefontaine of Oregon Track Club won the 2 mile event in 8:36.4 at the California Relays, Modesto CA, May 24, 1975 wearing Nike Waffle Racer shoes.
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market
WHERE WE SELL
Nike sells in almost 200 countries with primary market in the United States, Europe, Asia Pacific, and the Americas. Nike owns about 37% of the US athletic shoes market. Its popularity is largely due to the use of Nike shoes by famous athletes such as LeBron James. Its main competitor is Reebok, which owns 20% of the market. Nike not only produces shoes, but also athletic apparel and accessories. The company feels that there are still new markets to conquer.
- 44.000 workers - Listed on the New York Stock Exchange - 2.1 billion dollars sales in 2011 + 16% on last year turnover
NIKE’S REVENUE IN 2011 15% EMERGING MARKETS 4% JAPAN 11% CHINA 6% CENTRAL AND EASTERN EUROPE 21% WESTERN EUROPE
42% North America
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LOGO EVOLUTION
1971
1978
1985
1995
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nike mission:
to bring inspiration and innovation to every athlete* in the world *IF YOU HAVE A BODY, YOU ARE AN ATHLETE
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why wol? wol means WAY OF LIFE. Nike will open an entertainment bar chain, based on the Nike values: innovation, inspiration, young in mind, sporting, togetherness, health, as the new social wellness trend.
nike WOL mission:
to inspire and nurture the human spirit. one person, one cup and one neighbourhood at a time.
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product values
NIKE WOL
FREEDOM
URBAN STYLE
CREATIVITY
YOUNG IN MIND
INNOVATION TECHNOLOGY
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INDEPENDENCE
NIKE revolutionizes sport experience and starts the digital era. Nike WOL wants to become a trendy place non only for sporty people but also for young in mind. The menu will offer simple low calories food : sandwiches, snacks and light meals at convenient price. The quality is high. Menu will vary according to the different part of the day: morning, brunch, lunch, happy hour, dinner, after dinner. Cocktails will be beautifully enriched with fresh fruit. The furniture and the style of the bar will be modern and will remind you of the Nike brand. Black and white will be dominant colours of the walls and of the bar where drinks are served. Great attention will be given to the lighting: big bubbles lampshades will soften the light so that screenwalls can stand out: you can easily watch videos, pictures, read information about sport and competitions. With this new initiative Nike is broadening its horizons: not limited any more to the retail area , but also the food and beverage world.
The first concept Bar will start in Milan. Once the test is over, the bar will be built in other important and cosmopolite european cities like London, Paris, Berlin, and afterwards in New York and Tokyo. Nike Wol has a major marketing role: in the coffehouse people will meet eachother, talk, watch the screens, read information, meet Nike’s co-workers, specialists in different sport disciplines. The aim is to make the client part of a sport dream, make him feel to be part of the Nike world. Bar clients will have a digital fidelity card, they will belong to a virtual club and will have access to a digital web channel, showing sports news, local events, partnership and promotions. The aim is to open 15 bars within the next two years.
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NIKE WOL
milan, italy MILAN 181,76 km² 1.300.000 population
0-19 years
14 %
20-24 years
5%
25-34 years
16 %
35-49 years
21 %
50-64 years
21 %
more than 65 years
23 %
foreign population (extra ECC)
16 %
50 NIKE STORES IN ITALY Italy represents one of the most important country as regards turnover (it is among the first 10 countries), but it is definetely the first with the highest number of Nike stores (50). The ambition is to open even more stores; and today the strategy is to look for locations close to railstation or airports. Our need is to be connected to the many people. In particular our target is people among 18 and 50 years who represent 42% of Milan population.
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Paris
London Berlin
THE AIM IS TO OPEN 15 BARS WITHIN THE NEXT TWO YEARS. THE NEXT THREE OPENING WILL BE IN EUROPE.
London
1,570 km² 8,174,100 population
Paris
105,40 km² 2,300,000 population
Berlin
892 km² 3.500,000 population
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market research 10 MOST PRACTICED SPORTS IN ITALY 2011
1. SOCCER 2. SWIMMING 3. GYM 4. BASKET 5. CYCLING 6. TENNIS 7. ATHLETICS 8. VOLLEYBALL 10. DANCE
ITALIAN PEOPLE WHO DRINKS NUTRITIONAL DRINKS 2011
4 % REGULARLY DRINK
32 % DRINK AS NEEDED
65 % DON’T DRINK
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COFFEE CONSUMPTION BY COUNTRY 2011 0
2
4
6
8
10
Finland Sweden Switzerland Germany France Italy Brazil United Stades Japan Britain
DAILY COFFEE CONSUMPTION-BY TIME OF DAY/ BY AGE 2011
90
93 18-24 years
PERCENT DRINKING
81
25-39 years
70
40-59 years 60+ years
27 18
24
18
20 8
BREAKFAST
MORNING
15 14
16 6
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LUNCH
10
AFTERNOON
14 9
12
11 8 9
4 7
DINNER
EVENING
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questionnaire We will make 500 interviews in five of the most international cities chosing people from different background. This will help us to understand the different needs and tastes among inhabitants.
- would you like to go to a place/bar where you can meet athletes and talk about sports? - would you like to go to a trendy bar where they serve healthy drink and food? - do you often drink energetic beverage? - do you usually eat healthy food? - do you usually choose the same bar to have breakfast or happy hour? - if you do, can you explain why do you choose the same bar? Is it for the food? Athosphere? People? - would you be interested in testing sport equipment? - would you like to be a testimonial for Nike?
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marketING OBJECTIVE Italy is a country very well known for good coffee and bars but there isn’t an important food and beverage chain. This gap looks as a business opportunity and give us the possibility to develop the Nike WOL project successfully
NIKE WOL IS MORE THAN COFFEE It’s not a place where you simply drink a coffee, but where you can find everything else that goes with a full and rewarding COFFEEHOUSE EXPERIENCE. A place where is not unusual to meet athletes or to see people coming to chat, meet up or even work.
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marketing analysis nike wol
segmentation environment analysis swot
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SEGMENTATION Nike is a globally recognized brand and has a huge population of loyal customers. For the younger generation Nike is not only a sport brand but a fashion brand. It attracts the sport population as well as the non-sport one. One of the major reason Nike is so successful in selling its footwear, apparel and accessories it’ s because it hires sports celebrities as their spokesman, including legendary basketball player Michael Jordan, tennis player Serena Williams, and the professional golfer Tiger Woods.
geographic variables Geographic area: North Italy, Milan
socio-demographics Age: from 18 to 50 Gender: male-female Income/occupation/education: not relevant; even if we expect a faster adoptation among well educated people.
psychographic Social class: not relevant Life style: Nike way of life, sporty, healthy, urban style. Nike WOL it is a “must” even for trendy people, who cares about new season fashion. They like to wear Nike clothes because the brand inspires them freedom and innovation. They are loyal to Nike brand but very interested to every new event in the society and environment.
behaviour Benefits: healthy, high quality food and drinks, new social relationship. Attitude: positive Brand loyalty: good
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ENVIRONMENT ANALYSIS MICROENVIRONMENT Microenvironmental factors are internal factors close to a business that have a direct impact on its strategy.
NIKE COMPETITORS ADIDAS REEBOK PUMA ASICS
NIKE WOL international COMPETITORS HARD ROCK CAFE’ STARBUCKS GENIUS BAR JOE AND THE JUICE McDONALDS
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suppliers furnitures & electronic devices suppliers: IKEA, Samsung food & beverage suppliers: Nestlè (for coffee), D&F TRADING GMBH (alcoholic and nonalcoholic beverages), catering bio (AL.NA. S.R.L.) merchandising suppliers: Nike
partners Foot Locker Inc. is an American sportswear and footwear retailer, with its headquarters in Manhattan, and operating in approximately 20 countries worldwide.
MaCROENVIRONMENT The macro environment consists of larger social forces that affect the micro environment including demographic, economic, natural, technological, political and cultural forces. Nike is the leading footwear company in the world. Nike designs, develops and markets worldwide athletic footwear, apparel, equipment and accessories. Thanks to its products worldwide popular, Nike now wants to start a new project in a totally different area; food and beverage. Nike doesn’t want just to sell all different type of coffee, but everything else that goes with a full and rewarding coffeehouse experience. Nike has 20,000 retailers worldwide including Nike factory stores, Nike stores, NikeTowns, Cole Haan stores, and Web sites which sell Nike's sports and leisure products. Nike accounts for 33% of the global market share in the athletic footwear industry.
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PESTel Analysis Nike, as an international organization, needs to focus on macro environmental factors. Macro environmental factors include Political, Economics, Society, Technology, Environment, and Legal.
p e s
Political Analysis not relevant Economic Analysis Italian economy now is facing bad times but there are still some areas that aren’t feeling the economic crises; as for example the fashion or the aestethic/beauty sectors. Society Analysis People are more health conscious nowadays. Diet and health are becoming major issues. Consequently, more and more people are joining fitness clubs. There is a growing demand for places where to find healthy food and low calories beverages. Technology Analysis In the areas where technology is rapidly developing and becoming part of everyday life, the
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coffeehouse is very innovative. Inside Nike WOL there are screenwalls which show videos, pictures, information on sports, and competitions. Free wi-fi Internet point is another way to attract customers. Customers can always be updated on events and sport news through our website. Environmental factors There is a growing sensibility towards sustainability, and environmental behaviour.
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The sales of Nike WOL are not going to be affected by climate or weather conditions. One of our aims is to be as friendly as we can to the environment we are living in. For this reason we try to use products that don’t cause pollution, and low power consumption household appliances. Legal factors Not relevant.
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swot analysis The schema below is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a marketing plan. It identifies, in the internal and external factors, those elements that are favorable and unfavorable to achieve that objective.
S o
STRENGHTS
WEAKNESSES
-global recognition of the brand
-strong competitors
-high quality : healthy food -effective marketing strategy
-no menus for children
-capacity of innovation -good value for money -strong customer relationship’s satisfaction -music style fits
OPPORTUNITIES
THREATS
-expansion into emerging markets
-fierce industry competition
-increased demand in product
-economic rescission
innovation -increase servers connection with customers -the first sport brand providing this kind of service.
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marketing strategies nike wol
marketing mix product,price,placement,promotion, politics, packaging
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marketing mix Product: Nike WOL is a meeting point not only for sporty people but also for YOUNG IN MIND people. Our coffehouse is a break from the worries outside, a place where you can meet friends and athletes at the same time; Nike WOL is about enjoyment at the speed of life – sometimes slow and savoured, sometimes faster. Always full of humanity. Inside Nike WOL you will find upbeat dance music, good choice of juices (including some nice and green ingredients like spinach and celery). The menu is quite simple and based on fruit cocktails, apple juices (as a base) with many different fruits and natural ingredients like: passion fruit, ginger, avocado, celery, lemon, apple and melon. The result is a drink that hydrates you without making you feel heavy and sluggish. In other words a better alternative to booze or coffee. If you are a bit hungry during the day, Nike WOL will offer you some different healthy food options as for exemple our special warm sandwich with pesto, avocado and tomato. Every Nike WOL will be part of the community, and we take our responsibility to be good neighbours seriously.
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Price: COST EVALUATION assumption - The opening hours will be 14 hours a day (from 9am to 11pm), x 350 days a year. - The value expected of each ticket is 6€ average - The MARK UP (difference between the cost of a good or service and its selling price) is 5€ - Costumers/tickets expected a day: 230. (230 : 14h = 17 costumers/hour) - Number of expected tickets a year = 80.500 FIXED COSTS: Rental costs, electricity power expenses and rental equipment costs. 50.000 euro VARIABLE COSTS We forecast 10 hours cost for worked hour and in order to cover the opening hours we hire 4 people. The most important variable cost is the cost of the worked hours: 174.700€/year 14h x 4cw x 10€ = 560€/day 560€/day x 6days = 3.360 €/week 3.360€/week x 52weeks = 174.700€/year Advertising campaign: newspaper, subway, sport magazines, radio, web, social media, guerrilla. Opening campaign for 15 days 50.000 euro.
price calculation TOTAL COSTS : 354.500€ /year (fixed costs 50.000 + variable costs 174.000 + marketing 50.000 + food&beverage purchases 80.500 )
INCOME : 483.000€ (6€ x 80.500 tickets)
PROFIT (income - total cost) : 128.500€ BREAK EVEN 354.000€
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Placement: The new coffehouse chain will be adopting a retail direct distribution.
Promotion: We will adopt a promotion strategy mostly based on unconventional media, as social networks, guerrilla, web banner. In the opening week it will be possible to meet the most famous Nike spokesmen (italian and international champions). Nike has a number of famous athletes that serve as brand ambassadors such as the Brazilian Soccer Team (especially Ronaldo, and Roberto Carlos), Lebron James and Jermane O’Neal for basketball, and Tiger Woods for Golf. Nike brand images, its name and the trademark swoosh made the company one of the most recognizable brands in the world. Nike brand power is one reason for its high revenues. Nike quality products, loyal customer base and its great marketing techniques contribute to make this company very successful all around the world.
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advertising strategy Designed to make a connection with the consumer. Nike spent nearly $800 million on unconventional advertising in 2011. Sometimes the company name is not mentioned, featuring instead only the swoosh logo (very recognizable). Seek to portray the core values of sport. Collaborations with other strong branded products (such as Apple iPod). Employed many athletes as its spokesmen, among the athletes are Michael Jordan, LeBron James, Serena Williams, and Tiger Woods.
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brand positioning Brand positioning refers to “target consumer’s� reason to buy your brand in preference to others.
innovative
loneliness
togetherness
traditional
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ansoff matrix The Ansoff Growth matrix is a tool that helps businesses decide their product and market growth strategy. Due to the lack of this kind of offer in the Italian market, we develop this new format. Nike WOL place itself in the existing market but with a com-
existing product
new product
existing market
market penetration
product development
new market
pletely new product.
market development
diversification
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Porter’s competitive strategy We choose a differentiation and personalization strategy because it fits with Nike values and cover a lack on the existing market of the coffee bars. Nike WOL’s price strategy will mirrow the price strategy adopted by the “traditional” Nike offers
limited target
wide target
(shoes,clothes...).
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low cost
differentiation
cost leadership
big differentiation and personalization
focus on cost
focus on differentiation
FIVE FORCES ANALYSIS FOR NIKE wol Porter’s five forces of competition framework view the profitability of an industry as determined by the five forces of competitive pressure. It is a simple but powerful tool to understand where power lies in a buisness situation. It helps a firm in understanding its current strenght in the industry. It also brings into light the strenghts of the competitors. With a clear understanding of where power lies, a firm can take reasonable advantage of a situation of strenght, improve a situation of weakness, grab the opportunities and keep away from taking wrong steps. This makes it an important part of planning a strategy for any firm in any industry. At the same time, the tool helps in identifying whether new products, servies have any future prospect and the potential to be profitable.
low THREAT OF ENTRY
high
BUYER POWER
RIVALRY
SUPPLIER POWER
high
high
THREAT OF SUBSTITUTE
low 35
RIVALRY - high The rivalry among existing international competitors in the food and beverage industry is high. Large firms such as Hard Rock Cafè and Starbucks have grown immensely and established their brand name in the field. These firms are also globally recognized and have a huge loyal customer population. In Italy there is a different situation: there are lots of independent litte coffee bar, but at the moment there isn’t any big chain (EXCEPT for McDonalds chain, which despite, has a totally different buisness case: different in values, different in quality of food, different in the way of togetherness) This situation give us the opportunity to discover with a new developed format of bar, a new virgin niche successfully.
THREAT OF SUBSTITUTE - low The substitution for Nike WOL is low, as there are very few alternatives available because it’s a really unconventional bar. Characterized by healthy food, innovating technology, giant wall screens showing sport events, fitness information, curiosities... and corners with Nike WOL gadgets to sell. Despite this, there are a lot of small bar or bakery that offer just part of our offer. On the market there isn’t anyone that have our total offer.
threat of entry - low Our successfull story could be an opportunity for big international chains to look at our new buisness case.
SUPPLIERS POWER - high Inside Nike WOL will be served only high quality food coming only from the country where the bar is based (km 0). This will give us the opportunity to match with our high environmental values (reduce pollution due to the transport as much as possible.)
BUYERS POWER - high Young, and young in mind people (18 to 50 years old). Well educated. People who care about innovation, new trends, and togetherness.
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communication objectives BUILDING A NEW ECOSYSTEM FOR CONSUMER EXPERIENCE
WHAT ARE THE THINGS I WANT TO OBTAIN: Create awareness. Have people talk about the Nike WOL and Nike products. Increase brand preferences Increasing the brand consideration in people’s mind when thinking at their sport life. Building a stronger and trustfull relationship with existing customers. Drive visits to store. Building a new social member Nike card. Motivating new people to come more often (visit more often NIKE stores) and buy more.
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communication strategy MESSAGE I WANT TO COMMUNICATE: We will increase the brand consideration: -By building an empathetic and emotional communication based on true insights about the numerous people who are interested in practicing a sport -By stimulating/inspiring passion for sporting life needs to encourage people to improve their daily healty habits. -By reinforcing our strengths and improving our quality perception, connected with sporting life needs. -By building and reinforcing even more trustful and loyal relationships with people, also providing solutions for more sustainable life.
AUDIENCE I REFER TO: -The many people
TOOLS&ACTIVITIES: Addressing our communication media to the many individuals -With a strong brand positioning approach. -Using billboards, radio, social networks, web banner, guerrilla, events. We will build a stronger and trustful relationship with our customers: -Creating reasons why to subscribe the new Nike card. -Customizing the communication content starting from the members needs and shopping behaviour. -Stimulating customers to come more often to the bar and the store. -Developing members involvement in social and environmental initiatives to create a trustful and long lasting relation.
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social marketing concept brand awareness nike brand
benefits to society togetherness
customer Nike urban fashion healty lifestyle
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ADVERTISING “even the best need a rest”
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even the best need a rest
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CARLOTTA CONCAS marketing course 2011/2012 Mrs Quarenghi Wray graphic design NABA
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