Jon Nichols

12/11/2014

Nike Women’s Running Shoes

Media Strategy

Table of Contents

Introduction…………………………………………………………………………………………….1

About Nike Running………………………………………………………………………………..2

Running Trends…………………………………………………………………………………….…4

Nike’s Competition………………………………………………………………………………….8

Industry Trends………………………………………………………….…………………….……17

Nike’s Consumers………………………………………………………….………………………18

Primary Research………………………………………………………….………………..…….20

SWOT Analysis………...…………………………………………………….…………………….24

Nike’s Target………...…………………………………………………….………………………..25

Say Hello to Lena…………...……………………………………….………….……………….26

Media Overview…………...……………………………………….………….………………...27

TV…………...……………………………………….………….………………………………………..29

Digital…………...……………………………………….………….………………………………...30

Radio Streaming………...……………………………………….………………..…………….31

Non-Traditional………...……………………………………….………………..……………….32

Media Flowchart………...……………………………………….………………..……………..33

Budget………...……………………………………….………………..…………………………….34

Summary……...……………………………………….………………..…………………………..36

Appendix………...……………………………………….………………..…………………………37

Executive Summary Nike is the leading athletic shoe supplier in the world and one of the

most well-known brands in the entire world. For this media plan, Nike has

decided to focus on a small niche market of college women ages 18-25. The

primary and secondary research conducted helped come to the conclusion

that this target demographic would be most receptive to Nike’s marketing

and advertising. Survey results from 59 women ages 18-25 showed that

88% of respondents reported using Nike and 62% rated Nike as their number

one running shoes preference. Participants also said that when purchasing

running shoes, consumers look at function, comfort, and price. The focus

group consisted of nine female participants between the ages of 18-21. Nike

found that 44% of participants’ main running shoes are Nike brand, and that

the participants that purchased Nike were usually moderately active

individuals. With this information, Nike has proposed a cross-platform media

plan that will cover digital, radio, and event media. Digital media will include

presence MTV.com, Buzzfeed, Facebook, and Instagram. Nike will also put

playlist streaming on Spotify and Pandora. In order to reach our target

demographic specifically, Nike will take a branded tour bus to the Big Ten

schools to show women how to have fun while they exercise. With this Nike

will be able to reach a niche market in order to put Nike in the minds of their

consumers.

Introduction

The purpose of this Nike Running Shoes Media Strategy is designed to

use strategic research and consumer insight in order to determine

the best way to convey Nike’s message to its target market. The Nike

team utilized primary research through surveys and focus groups to

get a better understanding of Nike’s image to its consumers.

Secondary research was used in order to determine our best

consumer markets and what media vehicles to utilize.

The following pages will show an in-depth review of research findings,

including primary and secondary research on industry trends,

competitor markets, consumer insights, media budgets, current

channels of communication, and possible new media outlets.

1

About Nike Running

The Beginning1

● Began in New Hampshire in 1964 ● Founded by Philip Knight and his track coach Bill

Bowerman ● Started with the name Blue Ribbon Sports (BRS) ● Operated for a distributor for Onitsuka Tiger (now

ASICS) ● Sold 1,300 pairs of running shoes in its first year of

business growing over $8,000

Getting There1

● By 1971, BRS prepared to launch its own line of footwear

● Changed name to Nike--the Greek goddess of victory

● Moved headquarters to Beaverton, Oregon. ● By 1980, Nike had acquired 50% of the athletic

shoe market ● Throughout the 1980s, Nike expanded its

product line to include a range of athletic wear and sports equipment

Nike Today1

● Nike is the leading athletic shoe supplier in the world with over $24 billion in revenue each year.

● Nike is located all over the world ● Nike offers a variety of products including

athletic shoes, apparel, sports equipment, and athletic electronic devices.

● Nike focuses on innovative designs with breakthrough technology to create the “highest performing shoe” for its consumers.

● The Nike Lab is a world-class research facility that is dedicated to state-of-the-art science in the sporting goods industry.

● Nike focuses on designs to increase performance and decrease injury

Since Nike prides itself on its technology, it tends to be perceived as higher quality. This affects the pricing promotion, and place of Nike, described on the next page.

2 1"Company Profile." About Nike -. N.p., n.d. Web. 10 Dec. 2014.

About Nike Running

3

PRODUCT2

● Nike has a wide variety of running shoes

● Nike Lab: world-class research facility that focuses on state-of-the-art

science

● Works to increase performance and reduce injury

PRICE2

● Nike has higher average selling prices compared to most competitors.

● Uses vertical integration for pricing their products

PROMOTION2

● Nike spends about $1.8 billion on advertising and marketing each year.

● Much of Nike promotional effort goes to endorsing athletes and

partnerships with sporting organizations (e.g. NFL).

● Nike’s print, TV and digital advertising features athletes and focuses on

the performance aspects of the shoe.

● Over the past ten years, Nike has decreased their print/TV advertising

by 40% and is putting more of their budget into endorsement deals

and partnerships.

PLACE2

● Nike is located all over the world and is the leading competitor

throughout the world for the athletic shoe industry.

2"Sneakernomics: Who Will Be The Next Nike?" Forbes. Forbes Magazine, n.d. Web. 09 Dec. 2014.

Nike is a trend setter in the running footwear industry, which will be discussed on the next page.

Running Footwear Trends

4

PRODUCT DEVELOPMENT

Nike running shoes is part of the running footwear industry. Over the

past 50 years, the running footwear industry has evolved from thin, rubber

soled shoes into modern-day shoes with elevated cushion-heels and motion

control in order to reduce running injuries.3 Although this was done in order

to reduce running injuries, these injuries continued to be a prevalent issue

among runners. Therefore, over the past several years there has been a

reversal of this trend; runners are now looking for shoes with minimal

support that allow them to run in a natural motion.3

After researching the Stanford track team and discovering that running

barefoot allowed their athletes to run faster and have fewer injuries, Nike

was inspired to develop a shoe that mimicked a flat foot orientation.3 In

2004, they created Nike Free, the first modern minimal shoe.3 The Nike Free

completely revolutionized the idea of society’s running footwear. Over time,

this brand developed into 3.0 and 7.0 versions, with the 3.0 having less

support and the 7.0 having more support.3

Today, Nike has a variety of running footwear designs, ranging from

elevated shoes to ones with minimal support. These shoes are created to fit

a variety of runners needs, and styles are made specifically for track, trail,

or race running.3

3Davis, Irene S. 2014. "The Re-emergence of the Minimal Running Shoe." Journal Of Orthopaedic & Sports Physical Therapy 44, no. 10: 775-784. SPORTDiscus, EBSCOhost (accessed October 21, 2014).

Running Footwear Trends

CURRENT TRENDS IN SALES

● Spending and risk4

○ Stable purchasing health

○ Stable spending rate

○ Low risk propensity

● Steady revenue growth4

○ Generated revenue of $25.313 billion during review period

that ended on August 31, 2014

■ 8.5% increase from fiscal year 2012

■ 7.71% five-year growth.

○ Maintained higher operating margin of 12.86% than its

competitors adidas (8.29%) and Puma (2.09%)

5 42014. "NIKE, Inc. SWOT Analysis." NIKE, Inc. SWOT Analysis 1-8. Business Source Complete, EBSCOhost (accessed October 20, 2014).

Running Footwear Trends CONSUMER USE

● Reasons for purchasing athletic footwear5

○ Most popular reason for buying new athletic footwear: to replace old or worn-out shoes ■ Younger buyers (18-34) state impulse, fashion, special

occasions, and work requirements are also important factors

■ 6 in 10 consumers have purchased at least one pair of athletic footwear in the past year

● Important Attributes5

○ Most important attributes for footwear shoppers include comfort, durability, and fashion ■ Women place more value on fashion, while men place

more value on durability ○ Only 7% of 25-54 year olds report that customization is

important when selecting running shoes ● Cost5

○ 77% of buyers are willing to pay more for shoes that are comfortable

○ 18-34 year olds are more likely to purchase less expensive shoes, but replace them more frequently

○ Attitudes towards footwear shopping ○ 6 in 10 footwear shoppers enjoy shoe shopping

■ View it as an opportunity to embrace fashion and style, or to connect with family and friends

○ Women ages 18-34 show the highest enjoyment in footwear shopping

○ 89% of shoppers shop in-store, but 57% have made some purchase online

● Brand loyalty5

○ Among athletic shoe brands, Nike ranks second with consumers, ages 45-65, third with consumers 25-44, and fifth with consumers 18-24

6 5Men and Women's Footwear - US September 24. (2014). Retrieved from Mintel. 6Elliott, S. (2013, April 14). Losing a Step, Nike Seeks to Regain Its Edge. Retrieved November 1, 2014, from http://www.nytimes.com/2013/04/15/business/media/nike-once-cutting-edge-seeks-to-regain-its-brand-aura.html?pagewanted=all&_r=1&

Running Footwear Trends ADVERTISING TRENDS

● Nike’s early success due to prominent, well-respected athletes such as Michael Jordan6

● Nike’s advertisements used to be energetic, confident and cheeky, but now they are having a harder time standing out as cool6

o Slogans used to be extremely popular “Gotta be the shoes” “You don’t win silver, you lose gold” “There is no finish line” “I am not a role model”

● Nike revolutionized the sports advertising industry, but now that they are no longer the new brand in the industry they are struggling with their maturity6

o They are adjusting to the shift of fragmentation of audience and the media, and they are figuring out how to market to their consumers in a new technology age

● 1995-2012: Spent more than $3.2 billion to run ads6

○ $115.7 million in 2012 alone, an increase of 20.2% from $96.3 million in 2011

● January-June 2014: Spent $56.4 million on TV commercials6

○ Spending mostly on NBC Sports, ESPN, and Univision during athletic programming such as the Winter Olympics

● Risk Everything 2014 Campaign6

○ Multichannel campaign for 2014 World Cup ○ Designed to appeal to youth, tech-savvy demographic and

create an edgy feel ○ Featured soccer apparel, interactive website, Nike Soccer

App, television ad featuring star soccer players Nike has a long history of innovative advertising compared to their competitors, who will be analyzed next.

7

6Elliott, S. (2013, April 14). Losing a Step, Nike Seeks to Regain Its Edge. Retrieved November 1, 2014, from http://www.nytimes.com/2013/04/15/business/media/nike-once-cutting-edge-seeks-to-regain-its-brand-aura.html?pagewanted=all&_r=1&

Nike’s Competition

8

Puma Adidas

Asics Reebok

Major

Minor Minor

Major

Category: Running Shoes

The brand category of running is characterized as competitive

because there are multiple stable brands who hold a portion in the

marketplace and continue to generate sales. The principal methods of

competition in our category which Nike and the competing brands

provide are the following: product design, product performance, quality,

brand image, price, marketing and promotion, customer support and

service, and ability to meet delivery commitments to retailers.7

9

7Global Athletic Footwear Market is Expected to Reach USD 84.4 Billion in 2018: Transparency Market Research. (n.d.). Retrieved October 11, 2014, from http://www.prnewswire.com/news-releases/global-athletic-footwear-market-is-expected-to-reach-usd-844-billion-in-2018-transparency-market-research-171316751.html

Financial Analysis

Adidas: Second leading manufacturer of running footwear Revenue as of Dec. 2013: $18 billion8

Profit Margin: 11% Global Market Share: 15% Puma: Third leading manufacturer of running footwear Revenue as of Dec. 2013: $4.7 billion8

Profit Margin: 4% Global Market Share: 6%

10

8Von der Heydt, A. (2013, November 12). How Puma Can Compete With Adidas And Nike. Retrieved December 10, 2014, from https://www.linkedin.com/pulse/20131112110118-175081329-how-puma-can-compete-with-adidas-and-nike

Brand Positioning

Adidas:

Making ALL athletes better, with innovation at the heart of all adidas

products. From a category perspective, football, running and basketball are

their key strategic categories for growth. However, to underline credibility

as the multi-sport specialist and spark brand strength, adidas also supports

a wide range of other sports and activities such as training, American

football, rugby, tennis, baseball, handball, volleyball, badminton and

boxing.9

“Innovation AND making athletes better”

Puma:

Previously pitching its shoes and clothing to those who live casual hipster

lifestyles, Puma is shifting its marketing focus to serious athletes. Puma

“wanted to reposition itself as a sports-performance brand rather than the

casual thing it was,” said Julian Easthope, a Barclays Capital analyst. Puma

aims to be the fastest sports brand in the world.9

“Bona fide athletes AND Troublemakers”

11

9Global Brands Strategy. (n.d.). Retrieved December 11, 2014, from http://www.adidas-group.com/en/investors/strategy/global-brands-strategy/#/adidas-strategic-positi

Advertising Analysis Adidas

“The Dream: All in or Nothing”10

The ad begins with Messi asleep and dreaming of himself and fellow star footballers

as they prepare for the 2014 FIFA World Cup Brazil. Attention then turns to cutting

edge football action on the field, with leading adidas players going “all in”, showing

off extraordinary skills. Players, fans, managers and nations all join together in

their desire for the ultimate prize, before Messi awakes knowing it is time to go ‘all

in or nothing’ for 2014 FIFA World Cup Brazil.As it comes to an end, the viewer will

be presented with the same choice as Leo Messi. The final screen of the ad on will

offers a choice; an “all in” button, alongside a “nothing” button.

Message: It’s all about personalized athletics and personalized designs, specifically

for Adidas football.

Puma

“#ForeverFaster: Calling All Troublemakers”11

The ad features star athletes each in situations that emphasize both their

athleticism and their personal lives off the field. Olympic sprinter, Bolt relaxing in a

hot tub with a group of women before lacing his sneakers and running off. The ad

proceeds with professional golfer, Thompson flirting with two buff men during a

splash fight, and professional soccer player, Balotelli winking as he gets a penalty

card.

Message: Inspiring full-fledged athletes by humanizing the stars with the hot tub

and other elements such as wrestling bears, splash fights and fast cars that tell

them to be proud, bold and driven.

12

10The Dream: All in or nothing ft. Messi, Alves, Suárez, Özil, RVP and more -- FIFA World Cup™. (n.d.). Retrieved February 11, 2014, from http://youtu.be/jR1XQsCiAKE 11#ForeverFaster | Calling All Troublemakers | PUMA. (n.d.). Retrieved December 11, 2014, from http://youtu.be/LUZ5m_402MU

Promotion Adidas

Athlete sponsorships of the best footballers in the world including: Leo

Messi, Xavi, Alves, De Rossi, Bale, Robben, Van Persie, Ozil,

Schweinsteiger, Lahm, Alonso, Gerrard, Lampard, Kagawa, Lucas, Torres

and Kaka.

Team sponsorship include: Chelsea FC, Bayern Munchen, AC Milan, Real

Madrid CF, AFC Ajax, Bayer Leverkusen, FC Basel 1893, FC Kobenhaven, FC

Schalke 04 and Olympique de Marseille, Swansea FC.12

Puma

Athlete sponsorships include: sprinter Usain Bolt, golfers Lexi Thompson

and Rickie Fowler, soccer stars Cesc Fabregas, Sergio Aguero, Marco Reus,

and Mario Balotelli.13

Team sponsorships include: Arsenal, Italia, and BVB.13

12Adidas Football Boots, Shoes, Cleats, Apparel & Gear | adidas Football. (n.d.). Retrieved December 11, 2014, from http://www.global.adidas.com/football 13Football. (n.d.). Retrieved December 11, 2014, from http://global.puma.com/en/sports/football

13

Media Spending

Adidas

Spent $1.79 billion in global advertisements14

Mainly TV/digital

Puma

Media spending in 2012, totaled about $4 million, down from

nearly $14 million in 2011. Originally, Puma's global spending was

"estimated" at $100 million. Note, each of those figures don't

include online spending.15

14

14Puma Reviews Its Creative Business. (n.d.). Retrieved December 11, 2014, from http://www.adweek.com/news/advertising-branding/puma-reviews-its-creative-business-152219 15Thomasson, E. (2014, August 8). Adidas marketing push an uphill battle against 'cool' Nike. Retrieved December 11, 2014, from http://www.reuters.com/article/2014/08/08/us-adidas-nike-rivalry-analysis-idUSKBN0G81MP20140808

HQ/Offering/Distribution/Pricing

Adidas HQ: Herzogenaurach, Germany

Offering: The company sells sports shoes, apparel, and equipment

sporting its iconic three-stripe logo in 170 countries. The #2 sporting

goods manufacturer (behind NIKE) focuses on football, soccer,

basketball, running, and training gear and apparel as well as lifestyle

goods including fashion brands.

Distribution: Global

Pricing: Adidas spent $170,000,000 towards new product development

in 2013. Their annual revenue was roughly $19 billion Their women’s

running shoes range anywhere from $90 to $220.15

Puma HQ: Herzogenaurach, Germany

Offering: The company designs and makes footwear, apparel, and

accessories sold under the PUMA, Tretorn, and Cobra Golf labels. While

shoes are PUMA's heritage, apparel accounts for a growing portion of

sales. It has been expanding its athletic apparel styles to include

men's golf, sailing, motorsports, and denim items. PUMA also operates

its own retail stores and controls product distribution on a global scale.

Distribution: Global

Pricing: Puma’s annual revenue for 2013 was roughly $3 billion. Puma

women’s running shoes range anywhere from $50 to $130.16

15

15Adidas AG. (2014, October 16). Retrieved December 11, 2014, from http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=3&sid=7d506489-e356-42d2-b5cf-cdeefc1a78c7@sessionmgr114&hid=124 16Net sales of Adidas and Puma worldwide 2006-2013 | Statistic. (n.d.). Retrieved September 26, 2014, from http://www.statista.com/statistics/269599/net-sales-of-adidas-and-puma-worldwide/

Demographics/Psychographics

Adidas15

14-29 year old males and females

Ready-to-wear fashionistas/fashionistos

Pure sports-lovers

Soccer enthusiasts

Trendsetters

Puma16

14-35 year old males and females

Intense athletes

Marathon-runners

Comfort-seekers

Sports fans

Nike and these competitors are highly affected by industry trends that will be discussed in the next section.

16

15Adidas AG. (2014, October 16). Retrieved December 11, 2014, from http://web.b.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=3&sid=7d506489-e356-42d2-b5cf-cdeefc1a78c7@sessionmgr114&hid=124 16Net sales of Adidas and Puma worldwide 2006-2013 | Statistic. (n.d.). Retrieved September 26, 2014, from http://www.statista.com/statistics/269599/net-sales-of-adidas-and-puma-worldwide/

Industry Trends

17

The athletic footwear industry has seen growth in the past few

years and is expected to continue to grow in the coming years. There

are several trends influencing this growth including the increasing health

awareness among Americans and the increasing level of disposable

income.

The pursuit of healthy and active lifestyles among Americans will

prove beneficial for Nike. People are becoming more aware of their

health and are taking initiative to change their lifestyle.17 Being strong

and fit is perceived as desirable and people are exercising more. The

growing health awareness will open up a new market of men and women

who want to improve their health. These people will be more inclined to

buy a new pair of running shoes than they were before. Nike has the

opportunity to position itself as a brand that can fulfill the needs of

people new to exercising.

Furthermore, the increase of disposable income among Americans

will also support the growth in the running shoes industry. In August

2014, the Disposable Personal Income in the United States was at an all

time high.18 This provides Nike with the opportunity to expand their

market to new customers. Nike can target people who usually opt out

from buying new running shoes because it was not a financial priority.

These trends have shaped who is currently buying Nike running shoes.

This consumer will be examined next.

17Athletic Footwear Market - Global Industry Size, Market Share, Trends, Analysis And Forecast, 2012 - 2018. (2012, September 26), from http://www.transparencymarketresearch.com 18United States Disposable Personal Income 1959-2014 | Data | Chart. (n.d.), from http://www.tradingeconomics.com/united-states/disposable-personal-income

18

Nike’s Now

Nike’s current female audience is between the ages of 25 and 34 and are

well settled in their lives. They work in professional or related

occupations making over $75,000 in annual household income. Typically

they are caucasian located in the Northeast or South United States.

These consumers put importance on entertainment and being able to

afford consumer goods. They like that they are successful and use their

disposable income on fashion or on ways to expel energy such as

sports, outdoor activities, and exercise. They are very self-expressive

and are the best adopters of new technologies and items that may not

be “mainstream” right off the bat.

Nike’s Consumers

Nike’s Consumers

19

Who wears Nike now19? ● Women, Caucasian ● Ages 25-54 ● Professionals and related

occupations ● HH income of $75,000+ ● Strong residencies in the

Northeast and South US states

What are they like? “Innovators” and “Experiencers”

● Young, enthusiastic, impulsive, seeks variety

● Savors the new, the off-beat, the risky

● Uses outlets like exercise, sport, and outdoor recreation to release energy

● Spends a high proportion of her income on fashion, entertainment, and socializing

● Some favorite things: ● Social Media Followings ● Being entertained ● Being established ● The ability to purchase

goods

19MRI Mediamark Report: “Women who have jogged once in the past week”. Accessed 12/10/2014: mriplus.com.

20

1. Survey OBJECTIVE

● To gain a better understanding of Nike’s image and media habits of our target market of women ages 18-25.

RESPONDENTS ● 59 females from the ages of 18-25.

KEY QUESTIONS ● How often do you run for exercise? ● How often do you purchase new running shoes? ● What factors affect your running shoe purchases the most? ● Where do you get information on new running shoes when getting

ready to purchase a new pair? ● Rank your running shoe brand preference. ● Why do you prefer your number one brand? ● Have you ever used Nike running shoes?

RESULTS ● See next page for further results.

INSIGHT ● While 88% of respondents reported using Nike shoes, only 62%

rated Nike as their number one running shoe preference. ● Respondents base their running shoe preference off of

technology/function, price, and appearance more so than availability and brand.

● Information from family/friends and advice from store salesman help in the running shoe selection process more so than magazines and websites.

● Comfort was the most common reason for brand preference. ● Consumers buy new running shoes once a year on average.

CONCLUSION ● When purchasing running shoes, consumers look primarily at

function, comfort, price, and appearance. Nike was the overall prefered brand among respondents and is perceived as a reliable, stylish, and comfortable running shoe.

Primary Research

Survey Results How often do you run for exercise?

How often do you buy new running shoes?

Where do you get information on new running shoes when getting ready to purchase?

12 12

21

Survey Results (cntd.)

Have you ever used Nike running shoes?

Rank the running shoe brands to your preference with 1 being the most preferred and 7 being the least.

Rate which affects your purchase of running shoes from 1-5 with 1 being the most important and 5 being the least.

22

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2. Focus Group OBJECTIVE

● To obtain personal, descriptive insights about purchasing and media habits of our target market of women ages 18-21.

KEY QUESTIONS

● How often do you exercise and how important is physical fitness to you? ● What factors are important to you when purchasing running shoes? ● What are your impressions of Nike?

ACTIVITIES

● Five group members moderated a group of nine participants for 30 minutes.

● We began with a written assessment asking about exercise habits and moved to oral questioning.

RESULTS

● 44% of participants’ main running shoes were Nike brand ● Good foot support and price were the most important aspects of their

shoe-buying habits ● Physical activity and exercise have become more important with age ● Participants highly associate Nike brand with athletes ● Participants that had Nike shoes ranked exercise about number 4 of

importance of priorities during their daily routine INSIGHT

● People choose Nike because of brand recognition and innovative design. Consumers who like to exercise for fun are most likely to purchase Nike shoes. Nike was most recognized with famous athletes from TV or print medium.

CONCLUSION

● Consumer loyalty is high, and brand is perceived as good quality. Focus on ways to convey shoe technology while still making it fit for the average person. Through this primary research we were able to identify some of Nike’s strengths, which will be compared to their weaknesses, opportunities, and threats next.

Primary Research

SWOT Analysis

24

STRENGTHS

OPPORTUNITIES THREATS

WEAKNESSES

● Poor public image due to factory work in third-world countries

● Competitors are becoming more aggressive with research in footwear design

● Operating business internationally leads to global currency fluctuations

● Global presence ● Leader in technological

research ● Large product range

(shoes, clothes, accessories)

● Athlete endorsements make Nike perceived as “higher quality”

● Retail sector is very price sensitive

● Nike has not fully obtained the market of ‘very intense runners’

● Receives products from overseas which can give them little control over product quality

● Can delve into other products, such as sunglasses or jewelry

● Partnerships with organizations outside of sports industry (e.g. nonprofits)

● Expand online retail channel

Nike’s SWOT analysis reveals a lot about the brand. Nike is a leader in

technological research and has a great marketing campaign, which makes consumers

perceive the brand as higher quality. However, Nike does have lower control over

product quality since its products are made oversees. Because of this, many “very

intense runners” are loyal to other brands instead of Nike. Nike has a lot of opportunity

to expand globally as well as partner with other organizations. However, the media has

put a lot of scrutiny on Nike due to its working conditions oversees. Along with this,

competitors are becoming more aggressive with their research and design--Nike’s

“forefront” of their running shoes.

Based on research and observations, Nike’s target audience for this strategy will

be college aged females, who will be detailed in the following portion of the book.

Nike’s Target Demographics

Age: 18-25

Gender: Female

Occupations: Students, young workers

Psychographics

Nike’s target for this media campaign is young, working women who

are always on-the-go. They go from class to work to working out to

going out. These women have an on-campus job to help pay off

student loans or to have some extra spend

ing cash. Since our target demographic is young, they are constantly

on their smartphones and laptops. They spend a lot of time browsing

the internet and looking at social media. These consumers also like

exercising for fun. They go to the gym about two times per week and

enjoy taking fitness classes, such as Zumba. School is their top

priority, and exercising is more of an extracurricular activity than an

important part of their daily routines. These women are social, and

having fun at school is an important part of their lives. They love

meeting new people and exploring new things. They are risk-takers

and love to experience everything they can in life.

According to US Census data, there are about 5.5 million females

who fit this demographic in the Midwest region of the United States,

which is what Nike’s media campaign mainly targets. Nike’s target for

our media campaign is small on the scale of typical Nike campaigns

because we have a smaller budget than Nike usually uses throughout

the year.

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9:00AM Lena wakes up, rolls, out of bed, puts her leggings on, and crawls to class

10:00am - 1:00pm

Class

1:00pm Lunch

2:00pm - 4:00pm

Lena is a responsible student worker and enjoys making a little of her own spending money

4:00 - 5:00 This is Lena’s downtime to relax and get things done which may be finishing up some Netflix episodes, homework, or send out some e-mails

5:00pm - 7:00pm

Work Out - Lena goes to the recreation center when it’s not nice enough to run outside. She may be running, or attend a bootcamp or Zumba class

7:00ish Dinner

9:00pm - ??

The night is young and Lena now is getting ready to go out for the night and party with her best friends

Say Hello to Lena....

The next section will discuss the media strategy that will best reach this target audience.

Overall Strategy Explained ❏ Based on primary research and analysis of MRI data, the strategy will

take a cross platform approach utilizing popular culture trends that

“college twenty-somethings” will follow. By making Nike Running Shoes

relevant and placing spots on TV channels such as MTV and the CW in

addition to traditional Nike channels like ESPN, the niche audience of

college aged females will be reached.

❏ Digitally there will be ads on MTV.com to coincide with traditional TV

spots broadcasted on MTV, and :30 spots on Vevo.com. Vevo is used by

our target to watch the latest music videos of artists like Taylor Swift

and Ed Sheeran, which get millions of hits. These two publishers in

addition to a strong social media presence on Buzzfeed, Instagram,

Facebook, and Twitter, will help the Nike Running brand stay front of

mind.

❏ Radio streaming, although a small part of the strategy, will be effective

at the gym where the target goes to work out socially with friends. They

use their smartphones to listen to Spotify and Pandora workout stations,

which will stream Nike spots after high intensity songs to get them at

peak arousal.

❏ The last component of the strategy is to have a traveling Nike event

coming to college campuses in the Big10 NCAA Conference. A Nike

branded tour bus will bring fitness classes and women’s Nike Shoes to

try on and do the events in. This will garner interaction with our target

as well as earned media opportunities.

❏ The majority of the $1 million budget will be allocated towards TV spots

to obtain high reach. Smaller percentages will then be split between

digital, radio streaming, and non-traditional mediums to spark interest

and garner further reach.

Media Overview

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Media Overview

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Objectives: Marketing Objective: Within 1 calendar year, increase share in running shoe

category from 59% to 64%.

Advertising Objective: Increase brand preference by 10% within the first 6

months of the campaign and increase by a total of 20% by the end of year 2015.

Media Objectives: Reach 75% of college females ages 18-25 with a frequency

of 5 times per month during the peak months of March-June and November-

December; Maintain a base reach of 40% with a frequency of 2 times per month

during the off seasons of January-February and July-October.

TV ❏ MTV

❏ CW ❏ ESPN ❏ Hulu

Digital ❏ MTV.com ❏ Vevo.com ❏ Social Media:

❏ Buzzfeed ❏ Instagram ❏ Facebook ❏ Twitter

Radio ❏ Pandora ❏ Spotify

Non-Traditional ❏ Big10 Campus Crawl

Media Tactics

TV

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MTV

Index20: 152 Viewers: 281,000 viewers/week Top Programs: ❏ MTV Movie Awards - April 12,

2015 ❏ VMAs - August 30, 2015 ❏ Teen Wolf

ESPN (Including ESPN2, Classic, U, and News) Overall Index20: 151 Viewers: 2.85 million/week Top events for our target: ❏ Football College Weekend (197) ❏ Football Pro Weekend (198) ❏ Football Pro Pregame Show

(240)

CW is a local CBS affiliate and was not measured in MRI. Viewers: ~1.999 million/week Top Programs: ❏ Vampire Diaries ❏ Supernatural ❏ Beauty & the Beast

Hulu Online Streaming Index20: 251 Viewers: ~24.1 monthly unique Served 1.44 billion ads in Feb 2013 Top Programs: ❏ New Girl ❏ Grey’s Anatomy ❏ Glee ❏ Modern Family

*All numbers based on Primetime and include Live + Streaming Device 20MRI Reports, Women engaged in jogging 1 time per week, 12/10/2014: mriplus.com

Digital

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Advertise with MTV on all platforms to maximize reach.

Unique Viewers: 48,195,00021

Reach: 21.4% Index: 124

Opportunities: ❏ Banner ads ❏ Display ads ❏ Sponsored Content

Place Video Ads and Scroll-Over Ads surrounding most popular videos of the week on Vevo.

Unique Viewers: 56,498,00021

Reach: 25% Index: 224

Opportunities: ❏ Pre-Roll ❏ Banner Ads

Social Media - BuzzFeed, Instagram, Facebook, Twitter

As social media becomes more and more prevalent on desktop and mobile, it will

be a staple part of Nike’s strategy to reach college females. Research has shown

Facebook, Twitter, and Buzzfeed to be where much of the target gets their news,

and instagram is becoming more and more popular as our target becomes more

visual. Nike can better reach the target on a level playing field on these platforms

to facilitate conversation.

21ComScore Media Metrix Ranks Top 50 U.S. Web Properties for July 2013. (n.d.). Retrieved December 11, 2014, from http://www.comscore.com/Insights/Press-Releases/2013/8/comScore-Media-Metrix-Ranks-Top-50-US-Web-Properties-for-July-2013 MRI Reports, Women engaged in jogging 1 time per week, 12/10/2014: mriplus.com

Radio Streaming

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Spotify

Top Workout Playlists22: ❏ Cardio - 757,325 followers ❏ Power Workout - 554,548 followers ❏ Running Mid Tempo - 453,833 followers ❏ Hip Hop Workout - 251,189 followers

Index: 163 Monthly Active Users22: 50+ million Monthly Paid Subscribers22: 12 million Available in 58 markets22

Opportunity: ❏ :15 and :30 spots breaking up

playlists and radio stations

22Information. (n.d.). Retrieved from https://press.spotify.com/us/information/ 23Top 10 Pandora Stations for Working Out. (n.d.). Retrieved from http://skinnyms.com/top-10-pandora-stations-for-workouts/ 24MRI Reports, Women engaged in jogging 1 time per week, 12/10/2014: mriplus.com

Index: 179 Monthly Active Users23: 77 million 1.73 billion listening hours Opportunity: ❏ :15 and :30 spots breaking up

radio stations

Top Workout Radio Stations24: ❏ Dance Cardio ❏ Pop Fitness ❏ Pop and Hip Hop Power Workout ❏ Sexy and I Know It

Non-Traditional

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Big 10 Campus Crawl ❏ To kick off their new Running campaign, Nike will take a branded

tour bus across all campuses in the Midwest in the Big10 NCAA

Conference and conduct group fitness classes for college women

to participate in. The bus will bring down the newest shoe in all

different colors for girls to test out during the classes.

❏ Millennial females 18-21 are social, connected, and thrive

through experiences rather than letting life pass them by. By

bringing the brand to them and incorporating it in an activity

they currently do, we are being relevant and bringing the Nike

brand to the front of their mind.

❏ This tour will kick off the campaign for the rest of the

year as well as serve as a platform to gain earned

media, as local university medias can include the

event in their press. Impressions will also be

increased as the bus serves as a mobile out of home

advertisement as it drives from campus to campus.

1. Minnesota 2. Wisconsin 3. Nebraska 4. Iowa 5. Illinois 6. Northwestern 7. Purdue 8. IU 9. Michigan State 10. Michigan 11. Ohio State 12. Penn State 13. Rutgers

Media Flowchart

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Scheduling Rationale:

All media will be on during the first week of January as our Special Event

kicks off. Radio spots will be scattered throughout the entire year with

special emphasis in January as our Campus Crawl is going on. Social Media

will be always on to maintain consistency online, while other digital spots will

be off except for our peak months. TV spots will be heavier while the target

is in school because this is a common college pastime, and will have random

spots air throughout the summer months. October-February will be heavied

up on ESPN since those are the major football months.

Budget

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$500,000 TV

$200,000 Publisher Direct ●MTV.com ●Vevo.com

$100,000 Non-Traditional ●Big10 Crawl

$100,000 Connected TV ●Hulu Streaming

$50,000 Social Media

$50,000 Radio Streaming

Tests will be run in order to determine the effectiveness of the

entire media campaign. First, Nike will conduct a survey after Big Ten

visits in order to determine consumer thoughts about the Nike tour bus

campaign. The survey will include questions and information about

raising the awareness and perception of the Nike brand. It will also help

to determine more about the psychographics of the target consumer.

Nike will also review page views from all digital media as well as review

consumer data in order to determine who is viewing their

advertisements. With this information Nike will be able to tailor digital

media even better in the future.

Evaluation

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Summary By targeting women ages 18-25, Nike has the potential to expand their market to a

younger demographic. These tech-savvy millennials are heavy consumers of TV, radio, and

digital content including websites and social media. This demographic also seeks out

experiential events, which is why the “Big 10 Campus Crawl” has the potential to have a

viral effect on this audience.

As shown through MRI data, women ages 18-25 are prominent viewers of

MTV, the CW, ESPN, and Hulu. They are also wired to social media including Facebook,

Twitter, Instagram, and BuzzFeed. Websites such as MTV.com and vevo.com are popular

among this group as well, making these outlets prime platforms to spread brand

awareness. With over 50 million active users on Spotify and 77 million active users on

Pandora, these growing websites are commonly used by runners using a playlist. By

placing Nike advertisements on fitness playlists, they will be directly reaching key

stakeholders.

If followed correctly, the Nike Media Plan has the potential to increase share in

the running shoe category from 59% to 64%. Nike brand preference can be increased by

10% within the first 6 months of the campaign and as high as 20% by the end of 2015. By

reaching 75% of college females ages 18-25 with a frequency of 5 times per month during

March-June and November-December and maintain a base reach of 40% with a frequency

of 2 times per month during the off seasons of January-February and July-October, Nike

has the power to expand their brand to be even more of a media giant than they already

are.

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Appendix

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Primary Research Information

FOCUS GROUP GUIDE Participants: Ten women from the ages of 18-22 Introduction Have each participant introduce herself/himself. Projective Question: If Nike were an animal, what would they be like and why? Activity: Word Association

● Write down 5 words you associate with running Activity: Writing Activity

● Provide a date of the year. Write down 2 things that would motivate you to exercise on this day and 2 things that would persuade you to not.

Discussion Questions: What do you do in your free time? What social media accounts do you use? How important is physical activity to you? How often do you exercise? What type of running shoes do you currently own? Why? How often do you buy new running shoes? Are there certain times of the year that you buy running shoes? What are your impressions of Nike? What other brands do you associate with Nike? What makes a brand stand out to you? What do you use your running shoes for? Closing Thank them and tell them the goals from the focus group. Ask if they have any questions and let them go. SURVEY INFORMATION: Surveys were distributed primarily through social media. We acquired 59 female respondents from the ages of 18 through 25. See full survey on next page.

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