& IMC

Mission
“To bring inspiration and innovation to every athlete* in
the world.”
*If you have a body, you are an athlete.

US$68B Market Capitalization

January 25, 1964 Founded

Key Market US

Phil Knight Founders Notable Campaigns

Bill Bowerman “Make It Count”
“Find Your Greatness”

Brand Endorsers LeBron James

Maria Sharapova
Cristiano Ronaldo
Target Consumers
 • Robust market position
• Strong brand equity
Strengths •
•
Strong product innovation
Extensive distribution network
• Strong marketing communication

Weaknesses • Older and younger consumers perceive brand differently

Opportunities • Move into wearable technology

Threats
• Endorsement Scandals
• Pressure for better corporate citizenship
 From hero-selling to storytelling

NIKE’S
MARKETING
From traditional to digital marketing

REVOLUTION
From product innovation to customer centric ecosystems
How IMC works at Nike.
 Stage 4: Financial & Strategic Integration
Use of data to drive strategic planning such as product offerings

Stage 3: Application of IT
Collection of behavioral data and customer preference data

Stage 2: Redefining scope of marketing communication

Matrix organizational structure Code of Conduct for all business partners

Stage 1: Tactical Coordination

Brand level: Brand Campaign level: Integration Between campaigns: No
elements are consistent across all brand contact points campaign is at odds with another
 #8
Guiding Principle Y/N Justification
#1 Become a customer-centric organization ✓ Customization of shoes in NikeiD store

#2 Use outside-in planning ✓ Consumer data drives corporate strategy e.g. Nike+

#3 Focus on the Total Customer Experience ✓ Integration is achieved across all brand contact points and stakeholders in the value chain

#4 Align consumer goals with corporate objectives ✓ Focus on digital to pursue younger consumers

#5 Set customer behavior objectives ✓ Target segments and goals are established for each campaign

#6 Treat customers as assets ✓ US$2.7B marketing budget; 15% of revenues spent on endorsements

#7 Streamline the functional activities ✘ Divided into Sports Marketing, Events Marketing, Branding etc.

#8 Converge marcom activities ✘ Digital marketing department is separated from traditional marketing

*Tie compensation to IMC goals ✘ No evidence

 #8
Guiding Principle Y/N Justification
#1 Become a customer-centric organization ✓ Customization of shoes in NikeiD store

#2 Use outside-in planning ✓ Consumer data drives corporate strategy e.g. Nike+

#3 Focus on the Total Customer Experience ✓ Integration is achieved across all brand contact points and stakeholders in the value chain

#4 Align consumer goals with corporate objectives ✓ Focus on digital to pursue younger consumers

#5 Set customer behavior objectives ✓ Target segments and goals are established for each campaign

Guiding
#6 Treat customers Principle
as assets Y/N Justification
✓ US$2.7B marketing budget; 15 of revenues spent on endorsements

#1 Become
#7 a customer-centric
Streamline organization
the functional activities ✓
✘ Customization
Divided of shoes
into Sports in NikeiD
Marketing, storeMarketing, Branding etc.
Events

#2 Converge
#8 Use outside-in planning
marcom activities ✓
✘ Consumer
Digital data drives
marketing corporate
department strategy e.g.
is separated fromNike+
traditional marketing

#3 Focus
*Tie on the Total
compensation Customer
to IMC goals Experience ✓
✘ Integration
No evidenceis achieved across all brand contact points and stakeholders in the value chain

#4 Align consumer goals with corporate objectives ✓ Focus on digital to pursue younger consumers

#5 Set customer behavior objectives ✓ Target segments and goals are established for each campaign

#6 Treat customers as assets ✓ US$2.7B marketing budget; 15 of revenues spent on endorsements

#7 Streamline the functional activities ✘ Divided into Sports Marketing, Events Marketing, Branding etc.

#8 Converge marcom activities ✘ Digital marketing department is separated from traditional marketing

*Tie compensation to IMC goals ✘ No evidence

 Out-of-Home Advertising

Print & TV Advertising Social Media

Supply Chain
Word-of-Mouth
Management
Endorsements The Products

CSR Corporate Culture

Experience
Events Point-of-Sale

Compensation/Incentive Policies Employee Communications

Media Relations Mobile

Web
#MakeItCount
#FindGreatness
#JustDoIt

+
COMMERCIAL (ONLINE & TV)

MARKETING ACTIVATION: SOCIAL MEDIA & EVENT

PRODUCTS

ADVERTISING & POINT-OF-SALE

COMMERCIAL (ONLINE & TV)
MARKETING ACTIVATION:
SOCIAL MEDIA & EVENT
PRODUCTS
ADVERTISING & POINT-OF-SALE
 Most shared
campaign on the
planet in 2010

CAMPAIGN Twice as much brand

buzz as official

HIGHLIGHTS
sponsor Adidas at
the World Cup

Global sales
growth of 7%
following the
campaign
#MakeItCount
#FindGreatness
#JustDoIt

+
#MakeItCount
#FindGreatness
#JustDoIt

+ COMMERCIAL (ONLINE & TV)

PRODUCT

MARKETING ACTIVATION: SOCIAL MEDIA

#MakeItCount
#FindGreatness
COMMERCIAL (ONLINE & TV)
#JustDoIt

+
#MakeItCount
#FindGreatness
#JustDoIt

+
PRODUCT
#MakeItCount
#FindGreatness
MARKETING ACTIVATION:
#JustDoIt SOCIAL MEDIA

+
#MakeItCount
#FindGreatness
MARKETING ACTIVATION:
#JustDoIt SOCIAL MEDIA

+
#MakeItCount
#FindGreatness @nike (2.2M )
VS
#JustDoIt @adidas (470K)

+
CAMPAIGN Nike+ digital
ecosystem: From

HIGHLIGHTS
8.5M to 18M users
in a year

18% profit (2012)

driven by the sales of
FuelBand
COMPETITION
IMC IMC IMC
• Advanced stage • Advanced stage • Early stage
• Digital & social media savvy • “All In” Campaign • “Nature of Performance”
• Nike+ & FuelBand • MiCoach Campaign
How IMC works for Nike.
 Competitors

Presence Identity/Image

Constituencies
Financial Value

Perceived Quality Commitment

Components of Brand Equity

Presence BREADTH
“one sight, one sound”

DEPTH
Dialogue = knowledge
IDENTITY Identity/Image

Secrecy

IMAGE
Customers as Co-Creators
 Identity/Image

IDENTITY IMAGE
Secrecy Customers as Co-Creators
 INTERNAL
Talent Retention

EXTERNAL
Price Inelasticity Commitment
 ALIGNMENT
Promise VS Expectations

CLOSED LOOP
Perceived Quality Using Customer Data
 Competitors

Presence Identity/Image

Constituencies
Financial Value

Perceived Quality Commitment

Components of Brand Equity

 Attitudinal
Financial Value
PRESCRIPTIVE EVALUATIVE

BrandDynamics The Conversion Model

EquiTrend

Brand Asset Valuator

Meaningful Brands Study

The Effectiveness of IMC

1. Define time frame
2. Pre-IMC Measurement
3. Post-IMC Measurement
4. Compare
 Meaningful Brands Study

Financial Value

Would your customers care if your

brand disappeared tomorrow?
 Meaningful Brands Study

Financial Value

Connect human well-being with brands

Meaningful brands beat stock market by 120%

Nike ranks 7th on the list

 Financial
Financial Value
BUSINESS BRAND

Annual Report BrandFinance

Fortune 500 InterBrand

The Effectiveness of IMC

Attitudinal Financial

1. Monitor brand listings

2. Develop internal KPI
3. Track brand equity
Moving Forward
Financial Integration

Linking Compensation

Evaluation Loop
JUST DO I{MC}.
Customer Brand Valuation

Streamlining Functions

40
 We have challenges, but
challenges have always made
us better and stronger.
-Mark Parker
Q&A