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NIKE164th Intake/ DSM 402 / Group assignment for Marketing CommunicationWe declare that this report is 3991 words in lengthCordially consolidated by:Leader:Michelle Zheng Pei Yi (S8822344Z)Members: Noorjanah Khatoon Bte Mohd Khan Sarattee (S7930425E)NikeEugene Nah (S7925122D)1 PageHuang PeiLing (S8827406G)

NIKE2Content Page1.1 Nature of Business . Page 31.2 Nike Origin and Background . Page 31.3 Nike Popularity Page 41.4 Key Milestone I Page 51.4 Key Milestone II. . Page 61.4 Key Milestone III Page 72.0 Competitor Analysis Page 82.0 Competitor Analysis II . Page 92.1 Competitor Market Analysis . Page 103.0 Consumer Analysis . Page 113.1 Consumer Analysis – Characteristic of Generation Y Page 124.0 Product Background .Page 134.1 Market Challenges . . Page 145.0 Campaign Objectives . . Page 155.1 Campaign Selling Idea . . Page 166.0 IMC Tools I .Page 177.0 IMC Tools II Page 187.0 IMC Tools III . Page 197.0 IMC Tools IV . Page 208.0 Evaluation Methods . . Page 20NikeReferences . Page 212 Page

NIKE31.1 Nature of BusinessNike Inc. principal business activity is the design, development, worldwide marketing and distributorof high quality footwear, apparel, equipment, and accessory products for a wide variety of sports andfitness activities.Nike is the largest seller of athletic footwear and athletic apparel in the world acclaimed.Nike sells their product to retail accounts through Nike-owned retail including stores and internetsales, and through a mix of independent distributors and licensees, in over 170 countries around theworld.Nike products are manufactured by independent contract manufacturers and most of Nike productsare manufactured outside of the United States. (1)1.2 Nike’s Origin and BackgroundNike co-founder Phil Knight & Bill Bowerman a legendary track coach started as an importer ofJapanese shoes. Blue Ribbon Sports (BRS) was the company created in 1964 to provide athleteswith better shoes. It wasn’t until 1971 that BRS introduced the concept of the Greek winged Goddessof victory, Nike. In 1978, BRS officially changes its name to Nike Inc.NikeNike has established a strong Brand Asset Value (BAV) with several wholly-owned subsidiariesincluding Cole Haan, Converse Inc., Hurley International LLC, NIKE Golf, and Umbro Ltd.Nikeheadquarter is located near Beaverton, Oregon, a suburb of Portland, Nike Towns, the first store,opens 1990. Today Nike operates in more than 160 countries around the globe. Through suppliers,shippers, retailers and other service providers. Nike is constantly involved in the design,development, and marketing. The company has relied on consistent innovation in the design of itsproducts and heavy promotion to fuel its growth in both U.S. and foreign markets.3 Page

NIKE41.3 Nike’s PopularityNIKE, Inc. President and CEOMark Parker said “We havepowerful competitive advantagesin our portfolio – innovative andcompelling products, brands thatare distinct and relevant to theirconsumers, and the world’sgreatest athletes and teams. Ourfocus is to build, fuel andaccelerate the power of ourportfolio.”(2)The Nike brand generated 16.7 billion in revenue for the fiscalyear 2009, another record performance, as footwear sales topped 10 billion and apparel sales topped 5 billion. Sales for the Jordan Brand exceeded 1 billion. (3)Nike Inc. has been able to attain a premier position through "quality production, innovative products,and aggressive marketing. In recent second Forbes Fab 40, a ranking of the world's top sports brands,reveals that Tiger Woods, Nike ( NKE - news - people ), Manchester United and the Super Bowl arethe most valuable names in their respective categories. (9)Nike’s distinctive competency lies in the area of marketing, particularity in the area of consumerbrand awareness and brand power.While the reasons that Nike is successful in marketing their products are numerous, this keydistinctive competency towers over the competitors. As a result, Nike’s market share is number-onein the athletic footwear industry. .NikeWith its motivational slogans like, "Just Do It," and symbols like the Nike "Swoosh," couple withsports icons to serve as instant reminders of the Nike Empire with marketing campaigns thatemphasize fitness, competition, and sportsmanship, consumers identify their purchases with theprospect of achieving greatness. Consumers benefit from this positive influence. This image issomething that competing companies cannot easily duplicate.4 PageNike popularity owes it successes through constant effort of being innovative through themeans of research and development. It is further enhanced with the help of extensivemarketing and exposures. These are made possible with celebrity endorsement as well as theuse of opinion leaders; mainly contributed by the star power.

NIKE51.4 Key Milestone INikeIn 1982, Nike released the Air Force 1, a basketball shoe thatfeatured a revolutionary technological innovation: a pocket ofair in the heel for cushioning and support. The shoe, althoughexpensive at 89.95, was an immediate hit among players, fromthe N.B.A. to the playground, with professionals like MosesMalone and Michael Cooper endorsing them and wearing themduring gamesMoses Malone was an early adopter.NikeThe famous rapper Nelly recorded an ode titled “Air Force Ones.”5 Page“It’s the No. 1 seller in the history of athletic footwear,” said Matt Powell, an analyst atSportsOneSource, a research and data firm in Charlotte, N.C., that follows the sporting-goodsindustry and Powell estimated that about 12 million pairs of the Air Force 1 were sold at its peak in2005. (4)

NIKE61.4 Key Milestone IIThe Pegasus 25, Nike's best selling running shoe, is considered.NIKE, Inc. debuts Nike Considered DesignNikeNEW YORK, NY. - October 28, 2008 - NIKE, Inc. (NYSE:NKE) today debuted Nike ConsideredDesign, its latest products which combine sustainability principles with the newest innovations forsport. While Nike has delivered consumers Considered products for several years, for the first time,Nike Considered Design will be featured in all of Nike's six key categories: basketball, running,football (soccer), women's training, men's training and sportswear, as well as in tennis and ACG (AllCondition Gear). (5)6 PageLeBron James (Born December 30, 1984) is an American professional basketball player for theCleveland Cavaliers of the NBA. Nicknamed "King James," he was a three-time "Mr. Basketball" ofOhio in high school, and was highly promoted in the national media as a future NBA superstar whilea sophomore at St. Vincent–St. Mary High School. Now, let’s know the detail information of LebronJames Shoes. At the tender age of 18, Lebron James inked an 80 million contract with Nike to bethe exclusive outfitter of his footwear and clothing needs for 7 years. This was the largest shoe dealever made and especially for an 18 year old. The first Lebron James shoes were released only a fewmonths after the deal was made. Nike has released 3 models of the Air Zoom Lebron series so far aswell as many exclusive Lebron Air Force Ones and a few special edition Lebron James Dunks SB.Keep your eyes open and your wallet full, there are many more exclusive colorways coming out ofeach model including SVSM colorways of every model of Lebron James shoes. The Lebron JamesShoes deal was far larger than the one Nike made with Michael Jordan. Jordan received only a 5 year, 2.5 million dollar contract. Lebron James earned more than 25 times more per year with his sneakerdeal than Jordan did with his Lebron James shoes! (6)

NIKE71.4 Key Milestone IIINikeThe 1980’s were marked by the signing of Michael Jordan as a product spokesperson, revenues inexcess of 1 billion, the formation of Nike International Ltd., and the "Just Do It" campaign. Nikecreated a signature shoe for him, called the Air Jordan7 PageAbout Kobe Bryant ShoesKobe Bryant (Born August 23, 1978) is an American shooting guard who plays for the Los AngelesLakers in the NBA. Bryant enjoyed a successful high school basketball career and made instantheadlines when he decided to go directly into the NBA upon graduation .Have you paid anyattentions to Kobe Bryant shoes? As we know, Kobe Bryant shoes are special designed for him tocelebrate his immense success on court. Up to date Nike have launched several generations andvarious styles of excellent NBA basketball player Kobe Bryant official signature shoes, KobeBryant Shoes have maintained the top position in the market for many years for they could providespeed, strength, increased flexibility, traction, comfortable, ventilation, and support, etc. (7)

NIKE82.0Competitor AnalysisCompetitorList of ProductsStrengthsWeaknessesPrepare Compete RecoverPricingTECHFIT SeamlessCompressionTECHFITPowerWEBTECHFIT TunedCompressionPUMAAdidas strategies were based onendorsement focus strategy, advertising,sponsorship programs focusing on majorglobal events, sports associations, and teams,and sub-brands.Product innovation. Adi Dassler registeredmore than seven hundred patents.Active promotion of global sporting events,especially the Olympics.At the 1972 Olympic game in Munich, everyofficial wore Adidas – Deep heritageJAM PerformanceRunning JacketUnique StrategyInsufficient Marcom effortsPUMA is positioned as a sport lifestylebrand that takes pleasure in skillfullycombining sports and lifestyle influences andwhich strives to contribute to a better world.As comparing to its competitors,Puma’s Marcom efforts are lower thanits competitors. Although Puma haveinvolved in sponsorship of jersey toWorld cup teams (e.g. Uruguay) andengaging endorsers like Bolt, there arestill marcom area where Puma can gointo to reach its target audience.PUMAVision and the four principles are putinto practice through the programs:puma.safe (environmental and socialstandards), puma.peace (supporting peaceinitiatives worldwide), and puma.creative(supporting artists and creativeorganizations).Product developmentPUMA engaged London fashion designerHussein Chalayan as creative director for thecreative orientation of the PUMA. Lookingto strengthening the design competence ofthe brand in the lifestyle fashion segment,PUMA is cooperating with other topdesigners such as Alexander McQueen andYasuhiro Mihara basis.PricingNikeLooking at the merchandise Adidasthey are too diversified and is tryingto gain every piece of share in themarket. Thus, they are not able to beleader in the majority sports category.Product range - Winter sports incl. skis,snowboards, snowblades, ski boots andbindings, inline skates, hiking, apparel.Mavic -Cycle components, Bonfire Snowboard apparel. Arc'Teryx - Outdoorapparel, climbing equipment, Cliché Skateboard equipment, footwear and apparelSustainable productPuma look to provide their merchandise byusing the best raw material. For example,“the procuring of raw materials through the“Cotton made in Africa” initiative and thebuilding up of suppliers’ capacities”8 PageFocus too diversifiedAdvantage with SalomonConsumer-oriented & Society-drivenLong-sleeve HalfZip Running ShirtBy comparing the prices of theproduct category with its competitor,Adidas pricing is higher ad may loseprice sensitive customers tocompetitors.Puma’s merchandise pricing is reasonableand they adopt the price penetration methodwhere their products are cheaper than itscompetitors.Insufficient R&DPuma’s merchandise technologieshave been one of its biggestweaknesses. Looking and its maincompetitors (Nike and Adidas), theyhave invested a lot into R&D of newtechnology where Puma have beenstagnant