Professional Documents
Culture Documents
Marketing is the activity set of institutions and process of creating, communicating and
delivering and exchanging offerings that have value to the customer, client and society at
large. And the value refers to the customer perception of all the benefits of a product or
service weighed against the cost of acquiring and consuming it.
1 Introduction
1.1 Company and industry
Founded as an importer of Japanese shoes, NIKE, Inc. (Nike) has grown to be the
world's largest marketer of athletic footwear and apparel, with the company's
products sold worldwide in retail stores, Nike Towns and factory outlets.
Nike involved in the design, development, and marketing of its wide range of core
athletic shoes and apparels which are mostly manufactured by independent
contractors located overseas.
Through consistent innovation in the design of its products and heavy promotion, the
company fueled its growth in both U.S. and foreign markets.
1.2 External Factors
“In the third quarter of fiscal 2009, Nike revenues declined 2% to $4.4 billion; net
income decreased 47% to $243.8 million.
2 Brand Analysis
2.1 Brand positioning
The appeal of brand names is greater than ever as marketers recognise that building
and reinforcing the image of their brands is a key to profitability and growth. And in
today’s context no longer can building and maintaining brand equity be attained by
spending large sums of money on media advertising as Brands become more about
how people relate to them or the communities that form around them rather than just
the product quality or performance.
It is through this message that has brought together the core values, core
competencies and the brand aspirations, which defines the identity, personality and
brand voice, articulated as the brand promise. Thus a Brand audit has been created
marking the starting point of all planning.
And through the same goal it has branched to other brand measurement value, the
Brand Equity or a favorable impression to the brand name and the Brand Relationship
or impressing the consumer that the brand actually does deliver as perceived, thus
providing with a competitive advantage that allows earning of greater sales volume
and higher margins than it could without the name.
To leverage this finding, Nike sponsored the 2003 Shape Run which is one of
Singapore's first marathons for women only.
"Response to this event was overwhelming," said Wong, "We had over five thousand
registrants for only 2,500 spots." (Haymarket Media Limited, 2006)
An at the end of the event, Nike developed an online blog to collect 'iStories', or
testimonies of challenges and insecurities that local women face which was
consolidated into a global portfolio. Which prove to show the continuous effort of
Nike to innovate and utilizing on new found mediums of marketing communication to
build on the brand relationship with the consumers.
3 Campaign objectives
3.1 Demographics
The marketing communication process begins with identifying the audience or
customers who have similar needs and wants, thus able to represent some type of
market segment that can be reached with the same basic communication strategy.
“Singapore, 23rd October 2007 - Nike has rolled out another “Just Do It” campaign,
which kicked off on 11th October, at street level this time with a mission to redefine
sports for Singaporean youths, particularly those aged between 14 to 28 years old, by
celebrating new sports tribes and amplifying their passion for their sports.
To ensure high visibility and awareness building among the experimental sports-
driven youths, the campaign entitled “Respect the Tribes” ran on JCDecaux, Street
side Network comprising of 12-sheet posters as well as a Billboard buy on the
building façade of The Heeren. Covering a distinct area of 8 meters wide and 10
meters in height, the campaign sought to emphasize the individuality, spontaneity,
improvisation and creativity of ‘real-life’ people who are excelling in the tribe.
The creative rationale was to use naturalistic settings, where these sporting activities
take place, to their full advantage, so as to ‘ground’ these tribes and their cultures
within the urban fabric of Singapore. Let the tribes speak. Let the tribes play. Keep it
real. JUST DO IT.
Glenn Heng, Marketing Manager of Nike Singapore, explains: “We chose Outdoor as
the key medium for our campaign as we wish to reach the youths on their home
grounds and inspire their passion for their chosen sports. Visibility garnered from
Outdoor medium will resonate and re-energies our ‘Just Do It’ message to our
youths.”
The 12-week campaign also runs on booklet distribution, posters and online. Media
duties were handled by Mindshare Singapore. “(JCDecaux Singapore, 2007)
This previous campaign has set the stage for the hierarchy of effects model for the
target segmentation as a touch-point and as a learning response. The nature of the
product is apparels and its pricing model is leaning towards high involvement, thus a
model of Feel-learn-do (psychological) is recommended for this affective group.
Which continuous marketing communications are needed to build on this targeted
group from a cognitive stage feeding them with knowledge and raising awareness to
the next stage of effectiveness in liking to the style, having preference and building of
conviction to the brand.
The recent 2009 US Open was experienced by more fans on-site, on television and
online with the total visits to USOpen.org, the official website of the US Open,
topping 63 million, surpassing last year’s record of 39 million visits.
ESPN2 which is available to Singapore cable market posted its two most-watched
tennis telecasts in its history on Wednesday, Sept. 9, and Thursday, Sept. 10. The US
Open coverage on Tennis Channel on Saturday, Sept. 5, broke all previous ratings
records for the network, and the network ranked within the top 10 on all ad supported
cable, including the No. 4 rank during the 8 p.m. to 9 p.m. hour (USOpen.org, 2009)
Following the success of viewership of the U.S Open 2009, the campaign hope to
replicate and optimise the coming Australian Open in Jan 2010 as top sporting events,
with its mass appeal, has the ability to reach out and attract a wide and diverse
audience, offering the best way to make a touch points to viewers.
“Sports are ubiquitous and it is a known fact that people's appetite remains strong
despite the current demanding economic times. As The Economist reported, while
nothing can entirely escape the economic downturn, leading sports do come close. In
hard times, people need escapism and the best way a sponsor can benefit from that
affinity is to leverage on the platforms that build the connections between sports fans
and premium sports properties. “(Contributed Content, Singapore, 2009)
The upcoming Australian Open 2010 is deem to be the best medium of marketing the
campaign for Singapore market being that the current Barclays Premier
League2009/10 Season has already its own set of global marketing objective, while
the Formula one event has already been held earlier of the year. Tennis would suit the
theme of the targeted audiences which is popular among young upscale male
audiences across Asia. Especially with a reach of over 45 million viewers across
Asia, and STAR Sports'(available to Singapore Cable market) comprehensive
television coverage of the Australian Open which includes nearly 160 hours of live
tennis matches, will be much anticipated reinforce touch points between the brand, t
he sport and the viewers. (Contributed Content, Singapore, 2009)
The selection of the moving images using the top range of technological advancement
of transportation (or Movement) is symbolic to the slogan of (Power, Speed, Control)
with Nike’s logo interpreted as a sign of approval (checked) or the ability to “Just Do
it”. In additional, the Tennis stars featured are the finalist or featured clash (match) of
the recent passed major sport event in tennis which also will raise awareness as all
three of the tennis stars happen to be spoke persons of Nike. Thus again bringing the
impression that the brand is a must to achieve greatness as well as the only choice of
arsenals to compete in the top flight.
6. Conclusion
With the plan set for the marketing campaign, next would be the steps of the selection
of Media choice as well as developing a Media plan. The selection of Media is likely
to be through Television and the Internet. Reason being that these are the avenues
which the audience are able to watch the matches. In Singapore, due to the limited
breasting companies, this reduce greatly the cost to widely advertise, Thus meeting
the goals set in the introduction while taking consideration of the external factors.
7. References
Funding Universe, 2009, Company Histories (Nike Inc), Last Access 11/11/09,
http://www.fundinguniverse.com/company-histories/NIKE-Inc-Company-History.html
Yahoo Inc, 2009, SEC Filings for NKE (Form 10-Q on 9-Apr-2009), Last Access
11/11/09, http://biz.yahoo.com/e/090409/nke10-q.html
Nike, 2009, Company Overview (If you have a body, you are an athlete), Last Access
11/11/09, http://www.nikebiz.com/company_overview/
Haymarket Media Limited, 2006, Nike eyes female market in Spore, Last Access
11/11/09, http://www.media.asia/searcharticle/2008_08/Nike-eyes-female-market-in-
Spore/8492
JCDecaux Singapore, 2007, Nike Reaches Youths with JCDecaux Street side and
Billboard Network, Last Access 11/11/09,
http://www.jcdecaux.com.sg/content/news/20071023.htm
USOpen.org, 2009, News by Day (2009 US Open experienced by more fans in...), Last
Access 11/11/09, http://www.usopen.org/en_US/news/articles/2009-09-
16/200909171253202709273.html
Contributed Content, Singapore, 2009, Sport's best of the best, Last Access 11/11/09,
http://www.marketing-interactive.com/news/14179
Nike, 2009, Company Overview (Diversity Helps Drive Success), Last Access 11/11/09,
http://www.nikebiz.com/company_overview/diversity/