Integrated Marketing - Nike Fuel Bar

transcript

NIKE+FUELBAR

UNLEASH YOUR INNER ATHLETE

THE JUST DO IT TEAM

CHRISTOPHEROUDAVANH

JAMES ZHENG

EMMAWANG

EVANMAO

ANOCHAUDOMBUASUWAN

•BACKGROUND INFORMATION•POSITIONING PLATFORM•MARKETING STRATEGY•PLAN HIGHLIGHTS

AGENDA

READY TO IGNITEBACKGROUND

#1 IN THE WORLD – SPORTS APPAREL• NIKE US BASED MANUFACTURER FOOTWEAR, APPAREL,

SPORTS EQUIPMENT• $27.8 BILLION IN 2014 (+10% GROWTH)• WORLD WIDE 45+ COUNTRIES

• 2014 FOCUS• LEAD WITH INNOVATION• FOCUS ON THE CONSUMER• BUILD A THRIVING DIGITAL ECOSYSTEM

Source: Nike Form 10-K, 2014

EXPLOSIVE GROWTH FOR NIKE

2010 2011 2012 2013 201405,000

10,00015,00020,00025,00030,000

1832420,117

23,33125,313

27,799

Source: Packaged Facts, Food Bars in the U.S.: Cereal / Granola Bar and Energy / Nutrition Bar Trends, April 2012

WHAT IS GOING ON IN THE INDUSTRY?

CEREAL BARS

GRANOLA BARS

NUTRITION / ENERGY BAR

+16%-0.1%

Clif Bar

General Mills

Abbott Labs

Atkins

Nestle

17%8.7%

8%7.7%

ONLY 2 BRANDS ARE THE MAIN PLAYERS

Kellogg 7.4%Source: Packaged Facts, Food Bars in the U.S.: Cereal / Granola Bar and Energy / Nutrition Bar Trends, April 2012

WHO IS WINNING THE MARKET?

PERFORMANCEDIET

HARD COREATHLETE

LEISURE

PERCEPTUAL MAP: ENERGY BARS ATHLETICISM & PERFORMANCE

• HEALTH: DIETING /PROTEIN/HEALTHY ALTERNATIVE

• NEW NUTRITIONAL PRODUCTS APPEAL

• WOMEN MORE LIKELY TO EAT NUTRITION BARS

• EATING NUTRITION BARS A SIGN OF AFFLUENCE

TRENDS LEADING TO GROWTH

WILL NIKE BE A GOOD PLAYER?

LOW CREDIBILITY IN FOOD PRODUCT

STRENGTHS WEAKNESSES

STRONG BRAND NAME

GOOD PARTNERSHIP

MANY LOYAL CUSTOMERS

BROAD PRODUCT LINES

HIGH INVESTMENT IN NEW RESOURCES

SHOULD WE COMPETE IN THIS MARKET?

NEGATIVE PERCEPTIONS TOWARDS ENERGY BAR

OPPORTUNITIES THREATS

GROWING MARKETFEW STRONG COMPETITORS

HEALTH-CONSCIOUS TREND

CONSUMER LIFESTYLE

BROAD ALTERNATIVE SELECTIONS

OF HEALTHY PRODUCTS

• COMPETITORS ARE NOT REALLY STRONG

YES! ENERGY BARS MARKET IS A GREAT OPPORTUNITY FOR

• COSUMERS CONCERN MORE ABOUT FOOD & HEALTH

• MARKET OF ENERGY BARS IS NOW GROWING

READY TO SERVEPOSITIONING PLATFORM

INTRODUCING THE NEWNIKE+

FUELBAR

ACTUAL PRODUCT

CORE PRODUCTConfidence to unleash the inner athlete in

ANCILLARY PRODUCT

Fulfill specific energy needs

NikeBrand

Scientifically Formulated

High Quality Ingredients

Portfolio

Of Bars

Tailored to different activities

Pro Athlete

Approved

SatisfactionGuarantee

NutritionalCalculation

And Recording

Nike Community

Trained sales person

In-store &

Online

Connect withNike

Devices

Nike Apps

NIKE+FUELBAR

WHAT IS IT?

CONFIDENCE TO UNLEASH

THE INNER ATHLETE IN YOU

Nike+ FuelBar

Family of energy bars designed for different activities PRODUCT FEATURES

Satisfy specific activities’ nutritional and energy needsFUNCTIONAL BENEFITS

Feel more confident in tackling challenges in my life

EMOTIONAL BENEFITS

Active, assurance, inclusive, understood, all-encompassing

BRAND PERSONA

WHAT IS ITS ESSENCE?

WHO ARE OUR CUSTOMERS?

OUR CUSTOMERS ARE

• The Millennial (18 - 35)• Male & Female• Single / Not Married• Full-time professional• Middle – Upper Middle

Class• Metropolitan area,

DEMOGRAPHIC & GEOGRAPHIC ENERGETIC

PERSONS

ACTIVE LIFESTYLE

HEALTH CONSCIOUS

LOVE EXERCISING

CONFIDENT

EARLY ADOPTERS

GOAL-ORIENTED

LOVE CHALLENGES

BODY BUILDERS

RECREATIONAL USERS

NIKE CUSTOMERSSPORT LOVERS

Source: Simmons OneView, NHCS Adult Study 06 – Month, Spring 2012

TO MILLENNIALS WITH AN ACTIVE LIFESTYLE,NIKE+ FUELBAR IS A FAMILY OF ENERGY BARS THAT FULFILL YOUR ACTIVITIES' ENERGY AND NUTRITIONAL NEEDS.

POSITIONING STATEMENT

READY TO LAUNCHMARKETING STRATEGY

• CREATE A NEW STREAM OF REVENUE– RAPID GROWTH IN SEGMENT

• STRENGTHEN BRAND LOYALTY OF CURRENT CONSUMERS– HIGH INDEX FOR ENERGY BAR CONSUMPTION (132)

• ACHIEVE MARKET SHARE OF 5% IN THE FIRST YEAR – 7TH PLACE

3 KEY BUSINESS OBJECTIVES

Source: Packaged Facts, Food Bars in the U.S.: Cereal / Granola Bar and Energy / Nutrition Bar Trends, April 2012 Source: Simmons OneView, NHCS Adult Study 06 – Month, Spring 2012

3 CONSEQUENT MARKETING OBJECTIVES• SELL $127 MILLION IN REVENUE FOR THE FIRST YEAR– TOTAL MARKET SIZE: $2.52 BILLION

• ACHIEVE 50% OF BRAND AWARENESS IN THE SEGMENT– CLIF AT 75.8%

• ATTAIN PENETRATION RATE OF 50% IN CURRENT NIKE CONSUMERS– ACQUIRE ESTIMATED 45.5 MILLION CUSTOMERS

PERFORMANCEDIET

HARD COREATHLETE

LEISURE

PERCEPTUAL MAP: ENERGY BARS ATHLETICISM & PERFORMANCE

A PORTFOLIO OF NIKE+ FUELBAR

Enthusiasm. Joy. Encouragement. Change. Freedom.

Power. Strength. Formality. Professional.

Spiritually. Possibility. Brilliance. Perfection. Bright. Brilliant.

WHY ORANGE BLACK ANDWHITE?

Size Price

68g $1.45

55g $1.60

85g $3.30 $2.99

HOW MUCH TO PAY?

• NIKE BRAND IN-LINE STORES (NIKE TOWN)– 33 STORES IN US– BOOTH WITHIN THE STORE

• SPORTING VENUES– GYM AND YOGA STUDIOS• TRIAL STANDS TO START• VENDING MACHINES TO FOLLOW

DISTRIBUTE THROUGH NIKE TOWN & SPORTING VENUES

CONSIDERATION• TV + PRINT • PR EVENT

EVALUATION• SEARCH• SPORTS CELEBRITY

ENDORSEMENT

PURCHASE• SAMPLING• COUPON/BUNDLING

BOND & ADVOCATE• SPORTS EVENT

SPONSORSHIP• SOCIAL MEDIA

TARGET 4 STAGES OF CONSUMER JOURNEY

FIRST CONTACT BY TV, MAGAZINE AND PR EVENT

57% NAMED TV AS THE WAY THEY FIRST BECAME AWARE OF THE PRODUCT

21% NAMED MAGAZINE

• PR EVENT34.4% of A18-29

27.9% of A29-35

23% of Men

43% of Women

Source: Packaged Facts, Millenials in the U.S., April 2012

• SEARCH ENGINE IS PRIMARY METHOD TO GATHER INFORMATION (INDEX OF 115)– KEYWORDS: NIKE+ FUELBAR & PERFORMANCE/REVIEW

(BRAND); CLIF (COMPETITOR); ENERGY BAR (GENERIC)

• LEVERAGE ON CURRENT PORTFOLIO OF ENDORSER OF NIKE– TO BUILD AUTHORITY IN THE SEGMENT• Allyson Felix : U.S. Olympian

SEO/SEM CAMPAIGN AND SPORTS CELEBRITY ENDORSEMENT

Source: Simmons OneView, NHCS Adult Study 06 – Month, Spring 2012

• FREE SAMPLES WOULD BE GIVEN DURING CHECKOUT AT NIKE TOWN– YES, YOU GET TO TRY ONE TOO!

• COUPONS– 10% OFF FOR NEXT PURCHASE OF NIKE+

FUELBAR• BUNDLING– 15% OFF IF PURCHASED TOGETHER WITH

OTHER NIKE MERCHANDISE

SAMPLING AT CHECKOUT AND COUPON & BUNDLING TO PUSH SALES

• SPORTS EVENT SPONSORSHIP STRENGTHEN THE BOND– RUNNING: MOST POPULAR SPORTS ACTIVITY– NYC MARATHON AND BOSTON MARATHON

• SOCIAL MEDIA CREATE THE PLATFORMS TO ADVOCATE– NEW PRODUCT DISCOVERY: 29% THROUGH

FRIENDS, 26% THROUGH FAMILY

SPONSORSHIP AND SOCIAL MEDIA CONTEST TO DEVELOP LOYALTY AND GENERATE WOM

Source: Packaged Facts, Millenials in the U.S., April 2012

CATEGORYMONETARY BRAND AWARENESS LOYALTY

OBJECTIVES

• CREATE ADDITIONAL REVENUE

• 5% MARKET SHARE IN THE FIRST YEAR

• 127 MILLION SALES

• BRAND RECOGNITION• BRAND RECALL• MORE ACCESS TO TRIAL OF

NIKE+ FUELBAR

• STRENGTHEN BRAND LOYALTY

• INCREASE LEVEL OF ENGAGEMENT IN CUSTOMER’S LIVES

• INCREASED PREFERENCE

MEASUREMENTS

• BENCHMARK/SALES TRENDS

• ANNUAL REPORT• SALES RESULT/ROI

• NO. OF ONLINE TRAFFIC• NO. OF SOCIAL MEDIA

EXPOSURE• NO. OF ARTICLES IN PRINT

MEDIA AND ONLINE• NO. OF IN-STORE VISITS• NO. OF SAMPLE AND COUPONS

DISTRIBUTED• NO. OF VISITORS AND SALES

MADE THROUGH EVENTS• SURVEY RESULTS

• ANALYSIS ON REPEAT BUYERS

• TRENDS OF PURCHASE FREQUENCY

• THIRD PARTY REPORT ON CHANGES IN PREFERENCE

EVALUATION AND CONTROL

READY TO PERFORMPLAN HIGHLIGHTS

NIKE+ FUELBAR UNLEASHES THE POWER OF THE BRAND

• RIGHT MESSAGE: FUELBAR’S POSITIONING IS ALIGNED WITH OVERALL NIKE’S BRAND PROMISE

• RIGHT PEOPLE: EXPAND THROUGH SELLING NEW PRODUCT TO CURRENT CUSTOMERS INVOLVES LESS RISK

• RIGHT TIME: GROWING SEGMENT SIZE & PURCHASING POWER

• RIGHT PLACE: CRUCIAL TOUCH POINT WITHIN CONSUMERS’ ACTIVE LIFESTYLE

WE ARE READY, ARE YOU?

Q & AThank You!

Integrated Marketing - Nike Fuel Bar

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