NIKE POP-UP SHOP
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.
COMPANY HISTORY
SWOT ANALYSIS S T R E N G T H S
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
SWOT ANALYSIS W E A K N E S S E S
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
O P P O R T U N I T I E S
SWOT ANALYSIS Product expansion Focus on womens segment of market Building upon strong global brand recognition—many markets that have disposable income to spend on high value sports goods ex: China and India have new richer generation of consumers Advancements in wearable in technology e-commerce expansion
SWOT ANALYSIS T H R E A T S
Currency value fluctuation Competitors constant threat Maintaining reputation of being eco-friendly Technology become obsolete because other brands are constantly competing and 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.
GROWTH
BRAND IDENTITY
PHYSICAL Swoosh Logo "Just Do It" Neutral Colors
PERSONALITY Athlete Sporty Lifestyle
RELATIONSHIP Personalization Interactive Goal-Oriented
CULTURE American Sports and Fitness
REFLECTION Innovative Leader Values Ethical Behavior Worldwide Recognition
SELF IMAGE Athletic Healthy Trendy
BRAND MATRIX HIGH PRICE
HIGH ACCESSIBILITY
LOW ACCESSIBILITY
LOW PRICE
COMMUNICATION/PROMO “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.
PESTEL Constitutional Based Trade Regulations State Laws New Free Trade Agreements
P O L I T I C A L
PESTEL Population: 318.9 Million High Standard of Living Corporate Social Responsibilty Highly Educated Population Women: 49% Men: 51% Median Age: 38
S O C I A L
PESTEL 19% Global emissions of Carbon Dioxide Environmental Planning Strong Environmental Policy Framework and Initiative Clean Air Act Climate Change
E N V I R O N M E N T A L
PESTEL Key Driver of Innovation Global STI Leaders Emergence of 3D printing Rise of E-commerce Omnichanneling Sophisticated Technologies
T E C H N O L O G I C A L
PESTEL 1.7% Inflation Rates One of the Most Developed Economic Systems Reshoring 28% of Global Apparel Retail Apparel Retail $371.2 Billion
E C O N O M I C
PESTEL Trademark & Patent Protection US Customs Border Protection Equal Employment Laws Consumer Bill of Rights Product Safety Commission
L E G A L
DIRECT COMPETITON
ADIDAS
DIRECT COMPETITON NEW BALANCE
PUMA
DIRECT COMPETITON
DIRECT COMPETITON REEBOK
INDIRECT COMPETITON POLO RAPLH LAUREN
INDIRECT COMPETITON VICTORIA’S SECRET SPORT
INDIRECT COMPETITON GYM MEMBERSHIP
INDIRECT COMPETITON MARATHON
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, 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. Technology in sportswear is at a pivotal moment with major international brands competing to present the newest products and climb the market ladder.
TARGET MARKET Our target customers are millennial women who were born from 1980-2000. There are about 77 million millennials in the U.S. and
4.3 million
in New York and make up about 24% of the country’s population. 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 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. About
33% of
millennials live in cities and 34% of women have a bachelor’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 which has a huge market for activewear to reach out to these consumers to purchase goods.
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 BRYANT PARK
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. Women’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 King’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
6 block radius of the 15 different buses that
Park. Around the
park there are 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
PRIZM SEGMENTATION Stay current with pop culture Always on the latest food trend: juicing, kale, avocado Enjoys bicycling Socializing at bars and clubs Enjoys live music Confident being single Exploring the city; Brooklyn, Chelsea
Fitness is important to them Watch reality television Community outings such as movies in the park Staying on trend— shopping An optimistic attitude toward life Independent 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 3 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.
STORE DESIGN
GIVEAWAY T-SHIRTS
PRODUCT ASSORTMENT Nike Shield Flash Max
Cost: $495.00
Nike Flash
Cost: $150.00
PRODUCT ASSORTMENT Nike Elite Compression
Cost: $50.00
Nike AW84 Flash
Cost: $50.00
PRODUCT ASSORTMENT Nike Vapor Flash
Cost: $45.00
Nike Storm Fit
Cost: $35.00
PRODUCT ASSORTMENT Nike Dri-Fit
Nike Dri-Fit
Cost: $30.00
Cost: $15.00
PRODUCT ASSORTMENT Nike Dri-Fit Knit
Nike Pro Fierce Mezzo
Cost: $100.00
Biometric Chip
Cost: $200.00
Cost: $150.00
SALES FORECAST 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