NIKE

INC.
Marketing Plan 2019

Our Objective
This is an all inclusive report that contains and explains the elements of
the 2019 marketing plan for Nike, Inc. in terms of its new strategies,
policies and new marketing ideas for its’ continued growth worldwide.

Alejandra Campos
campos.alejandra@ta.edu
Table of Contents
1. Business Summary
o Executive summary
o Company Name, HQ & locations, mission statement
o Company Overview: History & Current Status
o Marketing Leadership Team

2. Situation Analysis
o Market summary
o SWOT Analysis
o Competition
o Product Offerings
o Distribution

3. Marketing Strategy
o Objectives
o Target Markets
o Positioning
o Strategies
o Marketing Mix & Research

4. Marketing Channels
o Websites: Main, Jordan, Hurley, Converse
o Twitter
o Facebook
o Instagram
o YouTube

5. Budget

6. Controls
o Implementation
o Marketing Organization
Business Summary
Executive Summary
This report details the marketing plan for the upcoming 2019 year for Nike’s current products
and future products. It includes the company’s analysis, situation analysis, which includes the
market summary and SWOT analysis, Nike’s objectives and marketing strategies for the new
year, and the new product additions that will expand the company’s target market. It also
includes an overview of all marketing communication channels currently used with ways to
improve each one, the new budget based on previous years, and how the expansion will result
in revenue from the new products that will be available.

Our Company
Nike, Inc. is a company headquartered in Washington County, Oregon with offices throughout
the entire world and a total of 1,182 retail stores worldwide. The company’s mission is “To
bring inspiration and innovation to every athlete in the world; if you have a body, you are an
athlete.”

Company Overview
History

Nike, Inc. is the world’s largest supplier of athletic shoes, apparel and sports equipment and has
been running for over 5 decades. The company was founded by track athlete Phil Knight and his
coach Bill Bowerman in January 1964. Originally known as Blue Ribbon Sports (BRS), Nike, Inc.
initially operated as a distributor for Onitsuka Tiger, a Japanese shoemaker who is now known
for ASICS, a Japanese footwear and sports equipment corporation.

In its first year of business the company sold 1,300 pairs of running shoes earning $8,000,
mostly from sales at track meets from the inventory out of the car trunks. Nike opened its first
retail store in 1966 in Santa Monica, California. In 1976, however, BRS and Onitcuka Tiger
ended their relationship and the company prepared to launch its own line of footwear.

The company takes its name from Nike, the Greek goddess of victory and officially became
Nike, Inc. on May 30, 1971. The famous Swoosh design, created by Carolyn Davidson, was first
used by Nike on June 18, 1971 and patented on January 22, 1974. In a 1988 Nike ad campaign,
Dan Wieden coined the now famous slogan “Just Do It” and credits the inspiration for the
slogan to American criminal Gary Gilmore’s last spoken words “Let’s Do it.” (O’Reilly)

Current Status

o Today, Nike, Inc. has total revenues

of $36,307.0 MM and total
revenue growth of 5.7%
o Currently has 1,142 stores
worldwide and employs 74,400
people
o Nike’s sponsorship deals include
some of the best athletes such as
Michael Jordan, Tiger Woods,
LeBron James, Kobe Bryant and
Cristiano Ronaldo
o It is ranked number 2 in social
media marketing after Coca-Cola
o Nike has a lifetime deal with the
top basketball player in the league,
LeBron James

Our Executives
Philip H. Knight: Chairman Emeritus – Knight is a co-founder of the company, director since
1968 and current Chairman Emeritus of Nike, Inc. He has lead Nike from a small partnership to
the world’s largest footwear, apparel and equipment company that we know today.

Mark Parker: Chairman, President & CEO – Parker began leading the company long before any
of his current titles when he joined NIKE as one of its’ first footwear designers in the 1979. He
has brought original concepts into his many roles in the company and led the way with
breakthrough designs. He is responsible for the growth of the company’s business portfolio,
which include Hurley International LLC & Converse Inc.

Andy Campion: EVP, Chief Financial Officer – Campion has been leading the company’s
strategic and financial planning since 2007 when he joined as VP of Global Planning and
Development and was then appointed as Chief Financial officer in 2010, making him
responsible for all aspects of financial management for the company’s brand.
Elliott Hill: President of Consumer & Marketplace – Hill is responsible for NIKE’S global sales
organization, marketing team and for the brand’s four geographic operation regions. These
include North America; Europe, Middle East & Africa; China; and Asia Pacific & Latin America.

Hilary Krane: EVP, Chief Administrative Officer & General Counsel – Krane joined the company
from Levi Strauss & Company and bring global knowledge in government affairs, brand
protection, mergers and acquisitions and corporate law into her roles at Nike, Inc.

Monique Matheson: EVP, Global Human Resources – Matheson leads the company’s Human
Resources functions at a top rank in the company. She has been with Nike for 19 years, holding
various positions in the company and being responsible for all aspects of diversity, inclusion and
talent management.

John Slusher: EVP, Global Sports Marketing – Slusher supervises all of the company’s global
sports marketing endeavors, marketing agreements and manages relationships with Nike’s
athlete, team, league and federation partners.

Michael Spillane: President of Categories & Product – Spillane is responsible for development
of the creation of all Nike products and leads merchandising to the global marketplace.

Eric Sprunk: Chief Operating Officer – Sprunk leads the company’s manufacturing, technology,
sourcing and demand & supply management organizations and supervises supply chain.

Situation Analysis
Market Summary
Nike, Inc. is the leading athlete footwear company in the world. What makes this company
stand out from among its competitors is the continuous innovation for its footwear and apparel
and the commitment from its consumers. The majority of its consumers are sportsmen and
athletes who benefit from all fitness oriented products that the company has to offer. Along
with this group are the runners, who are more specified but can be athletes or regular
consumers who enjoy it as a hobby. There is also the youth, which includes ages 15-30, who
continue to follow the brand or extensions of the brand, such as Jordan, in order to stay current
with the trends and hip hop culture in America and its so called “shoe game.” Nike’s current
market includes consumers age 15-50. In 2019, we would like to expand this market to also
include the 50 and up age group, because if we can cover a bigger age range and go beyond our
current market to include all family members, then we can profit from sales for the entire
family groups or individuals of all ages. If we are able to do so, there won’t be any individual
that wouldn’t benefit from our products because our company would offer something for every
single person.

SWOT Analysis
For the new marketing plan, we want to help the brand continue to do what it does well,
improve what it doesn’t, capitalize on what it can do, and defend against what could challenge
it. With that in mind, here is our SWOT analysis for 2019:

Strengths

o #1 shoe maker in the world; global brand

o Joint co-branding with multiple companies
o Innovative designs that continue to expand growth and attention to consumers
o Strong communication channels
o Strong social media platform; ranked #2 in marketing
o Strong following and fan support
o Secure sponsorship agreements
o Subsidiaries like Jordan, Hurley and Converse

Weaknesses

o Over 60% of sales depend on footwear

o Poor conditions in work places and manufacturing locations
o Higher prices than competitors
o Built bad reputation due to controversies like sweatshops and child labor
o Low wage rates for its workers

Opportunities

o It can support, sponsor and make deals with global events such as the Olympics,
Paralympics, FIFA World Cup, etc.
o Develop new products for other sports besides its main sports
o Brand can continue to develop internationally and expand
o Untapped/new available market: 50 and up age group
o Grow its women athlete segment
o Launch new digital wear with expanding technology
Threats

o Global warming/climate change to affect working conditions for workers and factories in
other countries
o Competitors creating higher quality products
o Competitors taking sponsorships from high-end athletes e.g. Stephen Curry
o Current politics leading to economic issues in USA
o Lack of price changes depending on product and region

Competition
Nike, Inc. has been at the very top of the athletic footwear and apparel pyramid on a worldwide
basis for a long time. There is intense competition due to the rapid changes in technology and
consumer preferences in the athletic department and there are many risk factors to consider.
Some of the top competitors include Under Armour, Adidas, Puma and Asics. However, two of
Nike’s biggest challenging competitors that are fighting to gain dominance over the company
are Under Armour and Adidas.

Under Armour has been on the rise

since its’ beginning in 1996. It has built
a huge presence on the market but is
limited in its global presence as most
of its business is still currently in the
U.S. Due to its extensive research on
the athletic benefits of synthetic
fabrics, Under Armour was originally
not a footwear powerhouse because it
focused on engineering moisture-
wicking performance apparel. Not
until their recent basketball shoe line
with Stephen Curry did the company
grow its net revenue by 58% year-
over-year as reported in their recent
earnings report. (Green)

Adidas, on the other hand, has been on the struggling rise after falling behind Under Armour as
the #2 sports wear company in America. After losing deals to Nike, falling out of touch with the
American market and its shares falling by 40% in 2017, it is now time for the company to turn it
all around in the next few years. Adidas’ history dates back to 1924 and has a start in Germany,
so its market is primarily in Europe than it is in America, which can be a future issue for Nike if
Adidas continues to build momentum on the American market right now as it already has an
international upperhand.

The graph above depicts the athletic footwear market share from 2017 in the United States.
Nike alone had a share of 35.6%, while its top two competitors as described above had only
11.4% for Adidas and 2.5% for Under Armour. This is without counting Jordan at 15.7% and
Converse at what seems about 3%, both of which Nike owns. This means that at about 54.3%
Nike was dominating the US Athletic footwear market in 2017 and continues to do so today.

Product Offerings
Currently Nike relies heavily on its footwear products. This includes shoes for running,
basketball, soccer, football and other sports. Its apparel includes exercise clothing, sport bras
for women, anything from t-shirts, sweaters, shorts, socks, tops to belts, skirts and swimwear.
Their smaller category is equipment, which can include but isn’t limited to water bottles,
sunglasses, hats, watches, backpacks, gloves, headbands, sleeves, foam rollers, sport balls
(basketballs, recovery balls, volleyballs, footballs, etc.) and beyond. Below is a graph of the
percentage of sales per category from 2017.

Distribution
All Nike products are distributed by other multi-brand stores such as Footlocker, Finish Line,
Dicks, Champs, etc. as well as exclusive Nike stores which include the Nike Town stores and the
new Nike by Melrose store in Los Angeles, a retail store that combines the online experience
with premium in-store service. There are also discount Nike Outlet stores worldwide. Besides
its physical retail stores, there is also online shopping and e-commerce that takes place around
the globe through Nike.com, Facebook and Amazon.

Marketing Strategy
Objectives

• Increase profits for all products by 5%

• Increase quality of products while maintaining low costs (especially in America)
• Apply new marketing strategies for new target market (50+ age group)
• Profit from sales of new equipment for 50+ age target market
• Open up a minimum of 10 new retail stores
• Nike by Melrose bridges the gap between physical and digital; focus on having 5 out of
the 10 new retail stores be Melrose before expanding to the rest of the world in 2020
• Increase productivity and communication on social media sites
• Keep up with demands from the younger target market in terms of innovations and new
styles with new shifts of fashion and trends

Target Markets
Nike thinks of itself as a marketing-oriented company with the product being its most
important marketing tool. They have realized, however, that everything spins off the consumer
because the consumer leads innovation to bring a reason to market to them. (Willigan) The
company has taken many years in order to learn and understand its consumers and has
narrowed its market to a range of ages and certain markets.
 • Athletes- the biggest consumer group of Nike is all of its athletes. With all the
equipment, apparel and footwear offered by Nike, it’s hard for athletes to turn a blind
eye to the company. The sponsorships with the biggest athletes in the world that
everyone loves and looks up to help the company generate an emotional tie with this
group of consumers. Starting from very young athletes to college and beyond, this is the
primary focus for marketing because it brings in the most profit. Having LeBron James
sign a lifetime Nike deal just shows how much this company impacts the youth. “LeBron
and I have been in love and obsessed with Nike since we were kids, ‘ Maverick Carter,
James’ business partner, said Monday.” (Rovell)
• Runners- this is the second market group because there is so much that is offered to this
particular consumer group. The rapid increase in technology has helped in the past few
years given Nike the opportunity to create the Nike+ app, the running app, the training
app and the Nike+ sports band. As technology keeps increasing, so will the company’s
new innovations that will help this market group achieve their goals.
• Women- we hope to continue our growth with this market, as most of our current
consumers are sportsmen. The company has expanded its apparel to include tights and
sports bras in hopes to attract more women consumers with products designed for their
bodies. We offer the same style shoes that men are offered but in more feminine colors
as well as styles that are designed only for women.
• 50 and up active adults- this is the new target market we hope to reach in 2019 by
providing products that are also fit their specific needs. This consumer group enjoys
activities such as swimming, cycling, golf, fishing and jogging. We look forward to
expanding our swim apparel, golf equipment and create new jogging/running apparel
for their taste.

Positioning
Nike has placed itself as the leader in athletic footwear and apparel in the world and will
continue to do so by creating innovative products and satisfying its consumers. The company
takes a strong positioning on creating what the consumer wants and marketing products
through specific categories. This means making sure that Nike doesn’t lose its magic by getting
consumers confused with its products and what it stands for but instead sending clear,
consistent messages in order to reach the masses. It is known as a running shoe company but it
will continue to expand into more categories within the company as it has done up to now.

Strategies
Product

Nike sells a variety of products with footwear averaging 60% of its sales. Its footwear includes a
variety of shoes for different sports including basketball, baseball, ice hockey, tennis, soccer,
lacrosse, volleyball and others. Because it started as a running shoe company, what they create
best is a running shoe so along with running footwear there is also a variety of technology
geared towards running, apparel for running indoors and outdoors and a wide variety of other
equipment for the running market. They have sponsorship deals with many NBA stars such as
Lebron James, Michael Jordan, Kobe Bryant and others, which bring them a lot of sales for the
same level or lower level basketball athletes and other consumers that are heavily involved in
the basketball world. Its most recent footwear products include the Nike Zoom Pegasus Turbo,
Nike EXP-X14, Nike Air VaporMax Flyknit and Nike Zoom KD11.

Pricing

Nike’s pricing structure is higher than most other athletic footwear companies because of its
popularity and demand from its consumers. Nike has also been successful at earning the most
out of their sales because they have kept manufacturing costs down. They knew the wages
were lower in Asia than in European countries where their competitors manufactured, so they
got around to making the most out of their production and price at a level that would generate
good profits by setting up manufacturing stores in Asia.

Nike is focused on getting consumers to embrace their products and get them to relate their
emotion to the product and create a bond. This allows Nike to set a higher cost because the
consumers find greater value in their products as opposed to other competitors.

Marketing Communications

All of Nike’s marketing media delivers the same message, “To bring inspiration and innovation
to every athlete in the world.” In the marketing channels section of this report, there is detailed
explanation of how each marketing channel is used and how the company is able to deliver this
message through its campaign advertisements and commercials and through photos and what
expectations are set for 2019.

Marketing Mix
The launch for the 50 and up age group is set for on June 17, the day after Father’s Day, with
swimwear & yoga equipment being the first products out.

January- The beginning of the year will be all about creating the advertisement and videos with
celebrities that are in the same age group that the efforts are reaching to market, who are not
professional athletes but are individuals who have been in the public eye for some years, in
order to create a relation to them. If the common elderly person can be inspired by someone
they grew up watching on TV and know that they is their same age, they will be more attracted
to the products. The following celebrities will be sponsored by Nike in 2019:

• Robert Downey, 52- The well known Iron-Man is one of the Marvel heroes that many
can relate to and is not just a fan of Bruce Lee’s Wing Chu training, but also a client of
Brad Rose whenever he needs to get in Avengers-style shape. (Fabian-Weber)
• Lenny Kravitz, 54- The rock star and “The Hunger Games” movie star said he likes to be
outdoors and exercise doing things he can do with his own body –pull-ups, sit-ups, push-
ups and squats. (Fabian-Weber)
• Ellen DeGeneres, 60- The famous talk show host, attributes her success and energy to
her healthy lifestyle. She is vegan and enjoys morning yoga. She will be the inspiration
for the new yoga products, as she seems the best option to create sales for those
products. (Health Fitness Revolution)
• Angela Bassett, 60- The actress is nothing short of a true inspiration. She will do her
cardio and lift some weights but to her 85% of the health journey is diet. This is a person
that most of our target market will truly know from years of being on films and in the
public eye. (Chang)

February- Filming will take the whole month as it is planned to have a different celebrity film
each week for their respective Nike commercials.

March- After all filming has been finished, the production and technology team will work on the
editing of the four new ads to release to all our marketing channels in April.

April- This month will focus on releasing all ads and promo videos for the new products
launching for the 50 and up age group in channels which they typically watch. They will air on
following channels: History channel, Weather channel, the Discovery Channel, ESPN and FOX.
92% of the population in this group watch TV weekly so the company will be able to market
more easily through these channels. (Gillan)
May- The focus in May will be on expanding the marketing to all social media and to our
Facebook, YouTube, Instagram and Twitter sites to get the rest of the market informed about
the release of the new products. This will help spread the announcement through word of
mouth among the younger crowd after the main target market has been reached in April.

June- Finally all new products will be released June 18, 2019 and distributed to all online
purchase stores with some selected items at the physical stores. After data is collected from the
release date, it will be decided whether all products will be released to the retail stores and not
only to online marketplaces or to remain the same depending on the observations and
feedback from the sales.

Marketing Research
Using research, the company can continue to improve on marketing skills as new technology or
social media channels are created over the years. Since Nike’s beginning, its fresh and
innovative designs are what has carried the company to success and by using science and
technology, Nike can carry on the legacy with new and improved footwear for all needs and all
styles to fit all athletes. Five methods will be used in 2019 in order to conduct further research
for the company:

• Surveys- questionnaires will be given out to each target market that will be available in
person at selected retail stores, over the telephone, in-mail and online.
• Focus groups- consumers with high knowledge of the company and years of
commitment will be invited to join our focus groups that will aid in discussions on
improving the company.
• Personal interviews- These interviews will help get to know the consumer’s needs better
and will be given by some of our sponsored athletes to get a better feel for the
professional athlete market and a segmented group of the general population.
• Observation- The company will use consumer’s habits and shopping patterns and
observe, analyze and evaluate how it can improve for the following year.
• Field Trials- For the June release of the 50 and up age group products, this method will
be implied, as only selected products will be out in retail stores to test the market. This
will help make product modifications, adjustments in pricing and establish whether this
target market was an ideal goal for the company.

Marketing Channels
Over the course of the 2019 period, we will launch up our use of the following channels for
educating our customers, generating leads, and developing brand awareness. We currently
have a great number of followers and a large media platform but in order to meet our new
target market we must expand to a new group and use a different strategy. In addition to our
websites and social media sites, we will release our ads and commercials to TV channels that
our new 50 and up target market watch. Below is a chart of our following from our respective
sites from the past two years:

Main Website:
https://www.nike.com/us/en_us/

Purpose of channel: This the main social stream to get to all our online clients and perspective
consumers. All our products are up for purchase at our main site, our information, career
options and all links to our other social sites. This is where we want to see our growth in the
upcoming year, especially because there was a 15% decrease of visits to this site from
December 2017 to June 2018, which shows that in half of a year we lost some attention. With
our new target market addition, we would like to see an increase in website visits as a result
from the new commercials and ads that will be up on TV.
Metrics to measure success: We would like to increase our website visits by 5%-10% from the
end of 2018 to June 2019

Nike+ Website:

https://www.nike.com/us/en_us/e/nike-plus-membership
Purpose of channel: This is an extension from the main site and is geared towards our athlete
community. Nike Plus members are able to unlock members-only gear, expert guidance from
coaches and tailored experiences to each individual’s activity, style and interests. We offer
phone applications such as the Nike+ Run Club, Nike SNKRS, Nike Training Club and Nike
Connect. Our mission in 2019 is to add more information on this site for members to grow
interest in our club programs and download our apps.

Metrics to measure success: We’d like a 2% increase in site views by June 2019.

Jordan Website:
https://www.nike.com/us/en_us/c/jordan

Purpose of channel: This is the second extension from our main website and its focus is on our
Jordan brand. The Nike basketball segment of the company has had much success thanks to our
sponsorship with Michael Jordan and this site features a few collections for the Sneaker Head’s
true Nike heart. We have collections of the following: Jordan Lifestyle, Russell Westbrook, Chris
Paul, Blake Griffin, Carmelo Anthony, Jordan Fly Series, Jordan Flye ’89 and Kids’ Jordan. Nike
has been successful because it has adapted so well to the growing “Shoe game” culture and
trends in America. This site is primarily to reach out to those involved in this current trend as
many grow their own collections from these particular shoes.

Metrics to measure success: A 100,000 increase a month in views as we plan to put out more
Jordan Styles and sponsor fresh basketball players currently in the NBA.

Twitter:

https://twitter.com/Nike
Purpose of channel: The main purpose of Twitter is for communication to flow through the
masses at a very high speed. We want continous talk about Nike between consumers that can
be anywhere from memes to videos to threads about our shoe lines to any questions or
concerns they might tag us in. The main focus is to keep positive communication flowing so that
others may become more aware. It is also another stream where we can post our best ads with
visuals of our sponsored athletes, such as Serena Williams, LeBron James, Kevin Durant and
others.

Metrics to measure success: From December 2017 to June 2018 there was a 0.02% decrease in
followers. We need to surpass and aim for a 1% increase for 2019, for twitter followers
constantly fluctuate and aiming anything higher might just indicate failure

Facebook:

https://www.facebook.com/nike
Purpose of channel: Facebook is a place for friends which means, this channel is specifically to
build our friendship and fan base and simply stay connected to the world. Compared to the
other social media sites, Facebook is the veteran and most known by consumers. With its
recent addition of a market place on the site, we are able to offer online shopping through this
channel along with our main website. Facebook also has a messenger feature, which allows
Nike Assistants to chat with customers and answer questions or help with orders within
minutes. Facebook also provides another way for our photos and videos to be seen, much like
the other social media sites.

Metrics to measure success: increase Facebook like by 10% from 2018 results

YouTube:

https://www.youtube.com/user/nike
Purpose of channel: YouTube is used to share and stream videos for the purpose advertising
products, sharing insight and information with people, explaining how to do things, etc. Nike
posts all ads, promo videos, pack collection videos, JUST DO IT campaign ads, etc. on the
YouTube channel in order to get more information out to the consumer so they can evaluate
products on their own and research the company.

Metrics to measure success: Nike’s YouTube channel has had a 0.04% increase in subscribers
from December 2017 to June 2018. The goal is another 0.10% increase for 2019

Instagram:

https://www.instagram.com/nike/
Purpose of channel: Instagram is primarily used to share photos and videos, with the intent of
appearing on a consumer’s feed as much as possible. The goal here is to get as many likes as we
can on each post and also to get consumers talking in our comments section, whether that is to
the company directly or to each other, and getting shares among consumers and exposure from
our photos and videos being out in public.

Metrics to measure success: Nike’s Instagram profile had a 0.05% increase from December
2017 to June 2018. The goal for 2019 would be a 0.10% increase from June 2018 to mid 2019.

Budget
Over the course of 2019 given the budget allotted to the marketing team, we expect to invest in
the following items to ensure we meet the objectives outlined in this marketing plan:

• 5 new Melrose stores & 5 new regular Nike stores

• New swim, golf, yoga, etc. equipment for new 50+ age target market
• New, innovative shoes & apparel for 50+ age target market
• Marketing ads & commercials to market to new 50+ age target market
• Sponsorships for new deals for celebrities on board to help market for 50+ age group

The above graph shows the expenses from the previous years and the company plans to have a
higher budget of $3500 Mn for 2019, to encompass the new marketing target that has been
added on.

Controls
Implementation
Nike will ensure the marketing plan follows through with all procedures by the top
management with John Slusher, the company’s Global Sports Marketing Director, overviewing
all activity. Andy Campion, the Chief Financial Officer will oversee that the company stays
within budget with all-new activity, advertisement and product releases that are planned for
the month of June.

Marketing Organization
Nike’s chairman, president and CEO, Mark Parker will work closely with all executives making
sure each one is on task for their respective departments so that the marketing plan is
implemented thoroughly. Parker will also provide backup plans for the budget or any other
adjustments that might need to be made.

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