Future footwear DivisionNIKE Integrated Marketing Plan January 1st, 2019 The new Air Max Custom. future of footwear. Promotional Objectives Although orthotics are not a new idea to the shoe market, the concept to have custom molded insoles built into the actual running shoe (non removable) is a new idea . To promote this new product for Nike, the three objectives will need to be emphasized: building awareness, creating interest, and providing information. To build awareness we hope to target and reach serious runners who regularly participate in half and full-marathons. Running ads and banners at the race will inform the target market that a revolutionary new product from Nike will allow them to increase their performance through molded insoles. Additionally, this product will be introduced through ads in several popular running magazines, and their accompanying websites. Athletic shoes with custom, built-in insoles are the future of footwear. It is the new idea that will fuel new interest in the product. The more knowledgeable and well informed the target market is, the more sparked their interest will be. Booths will be available at races and inside retailers to create interest in the new product and allow new customers to experience the molding process. This will tie in with the “trade in” promotions. Interest is automatically created when people begin to see others experience the product for themselves. Public displays, especially where real people are interacting with a new process like molding shoes to their feet, get lots of attention. Promotional Booth To provide information, customers will be informed through informational booths, through informative and sponsored reviews of the product, and through the Nike website. Information about the product, especially clarifying the need and benefits that it presents to the consumer, will be the main focus. Nike is currently one of the most well known shoe brands in the world, so this innovative change to current running shoe technology will set them apart from their competitors. Nike running shoes are considered more of a stylish shoe opposed to a performance shoe. Introducing this inventive and original style of shoe that is specifically intended to help the customer’s running will put Nike running shoes above their competitors and will be taken more seriously as a performance shoe. The current promotional objectives will closely follow the recent successful release of the “Air McFly” shoe, project by the Future Footwear Dept. Taking design and promotional cues from the Air Mcfly launch will add confidence to the launch of the Air Max Custom. Original Air McFly concept (1989) New Air McFly (2019) Creative Brief Client Nike (Future Footwear Division) What is being promoted? A new running shoe from Nike called the Air Max Custom. This shoe has custom molded insoles built in, and will be categorized under the new Nike slogan “Future of Footwear”. Overall promotional objective? We want people to buy our new custom shoe. Create awareness of a new concept product designed to improve performance. A revolutionary product using newly acquired technology (Custom Kicks) to lead the future of the footwear industry. The objective is also to test the reception of the product in the running market, and to expand into the other shoe segments in the future. Positioning statement? We are positioning our product as a shoe that is customized to the individual’s foot with our insole built in. We are changing the way a shoe is built, attempting to define the future of footwear. The new technology used in the shoe increases performance with its use. Did you know? Target customer? Half and full marathon runners. Men and women in their late thirties, early forties,. Generally well educated running enthusiasts that value the quality of their shoe. They are in good health, and in general like to feel youthful. These customers have more disposable income and often pay more for running shoes and buy from specialty stores. In a national running survey, of the people that were considered “running enthusiasts” (ran at lease 4 times and 23 miles/week), their attributes were: • 78% were college educated • the average age was 38 years old, 44 years old for men • most trained for half marathons • staying in shape was their biggest priority • Women on average bought 3 pairs of running shoes per year. • 59-64% spend $90 or more on their shoes. • Between 43-50% purchased their shoes from a specialty store What do they currently think about the product/service? Because this product uses a new, recently acquired technology, they are unaware of our product. They respect Nike as an established brand and also recognize the innovation of the company. They think that Nike shoes are a good shoe but not necessarily the best running shoe. Our target market has the impression that Nike shoes are more for the younger generation and that they are flashy. What should they think of the product after seeing this advertising? They should desire to buy the shoe to benefit from its performance enhancing technology. We want them to realize the advantages of having custom fit shoes that have been molded to their feet. They should view the product as a necessary premium and that this shoe is the future of performance footwear. What do we want them to do after they see this advertising? We want them to act on the perceived need, and to purchase our shoes. We want them to re-think the kind of shoes they use for running and realize we offer a superior product. What tone should the creative have? Our tone is professional, educational, and youthful. This product is based on customized performance. We want them to buy our shoe because it is the newest and greatest shoe. Media Plan Promotional Tools The most effective way to target our demographic will be through three channels: Print ads in running/health magazines, promotions at marathons and running events, and online banner ads shown on websites for runners. We chose these three tools because they generate high traffic, specifically by those in our target market. A high percentage of these people are interested in products to help enhance their running performance. The cost will be effective because every ad we run will reach the maximum demographic at the best price. Reach Objective Target Market • Men and women that run more than 100 days per year • College/health Educated • Income of $75,000 or more • Run to stay in shape, concerned about health • Have a goal of running at least one marathon • Well informed about running shoes, usually spend over $100 per pair We plan on launching our print ads in various running and health magazines, having our ad appear in each monthly edition. This will allow us to reach 32 percent of our market for the first and last three months of the year. During the first three months, we want to create awareness of our product and create a hype before the April launch. Starting in April we will begin targeting the 10 most popular marathons (from April to December). We plan to reach 40 percent of the target market (present at the events) throughout the eight month period; each event will reach about 450,000 persons in our demographic. The internet banner ad will run on various health and running websites for the full year which we expect 18 percent of our market to view each month. This is cost effective because these sites are updated daily, and bring a high volume of daily traffic from their users. The last three months we will re-launch our print ad in the same magazines to keep the product fresh in the minds of our target market and reiterate the importance of having the shoe while preparing for future marathons. • Purchase multiple pairs of running shoes per year, focused on quality and support of shoe rather than style Participation in Running is the highest in the last 20 years 32 Million total runners, up 10% from 2005 8 Million frequent participants, up 15% Outpacing other sports in the past 4 years Over 10 million race participants, up 10% over last year. (Source: Runnersworld Media Group - RunnersWorld.com) Time line For Advertising Pre Launch Post launch Media Scheduling Tactics Our biggest advertising campaigns will start in April and end in December. These months are when marathons and running events are the most well attended. Having the core of our marketing budget focused on one place allows us to be efficient with our advertising costs. The magazine ads will be run January through March before the running events in order to hype the product and create new awareness. Near the end of the events (the last three months) we will launch the magazine ads again to keep the idea fresh in their minds as they train for the next year’s races. The online ad will run all year on popular running and health websites because it is cost effective and runners frequently look at those sites for health tips and updates on events. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Internet banner Runners World Mens Health Women’s Health Fitness Boston marathon New York Honolulu Chicago Walt Disney Indianapolis Nashville Phoenix San Antonio Las Vegas Mara tho 43,250 33,475 20,321 n/Ha lf Ma ratho n Att enda n ce 20 09 30,281 14,927 22,920 Frequency Objective 22,111 N e w Yo r k Honolulu 20,077 Chicago Wa l t D i s n e y 17,880 Indianapolis Nashville Phoenix San Antonio L a s Ve g a s For our magazine ads we plan for our demographic to view the ads at least four times in each four week period that the ads are run. This is cost effective because the ad would only need to be run in six different editions of the magazine. This would reduce the advertising cost by half while still receiving a high number of views. The online ad will reach the target market at least three times a week. It will be worth the investment because the sites are frequently viewed daily by our target market. Targeting the event spectators and participants will reach at least 400,000 people in our target market per event. In 10 events we will be able to reach 40 percent of the target market. This will hit the most important group of our target demographic, the serious, competitive runners. Magazine Plan Our ad will be a full page ad in color, which we will run in various magazines that appeal to runners. In the Men’s and Women’s health magazines we will place our ads around cardio workout ads and those having to do with marathons and runners. In the runners magazines we will not seek particular adjacency because everything in the magazine appeals to runners. Our large marketing budget allows us to purchase full page color ads as opposed to smaller black and white ads. Men’s Health magazine has readership of 1.6 million readers, Women’s health 11 million, Fitness magazine 1.1 million, Runners world 500,000. The rationale behind the Runners world ad is that a large majority of target market reads this magazine. Men’s health subscribers are youthful and fitness oriented, as is the readership of the Women’s health magazines. Fitness magazine focuses on people who create a lifestyle around being fit and running is a big part of that. 11,000,000 Magazine Viewership 1,000,000 1,100,000 500,000 Women’s Health Men’s Health Fitness Runner’s World Men’s Health readers are active, successful, professional men who want greater control over their physical, mental and emotional lives. They are looking for in-depth reporting on everything from fashion and grooming to health and nutrition, as well as cutting-edge gear, the latest in entertainment, and more. Our product appeals the readership of Men’s Health, in that we are offering cutting edge footwear for men. The Women’s Health brand is created for the woman who sees being healthy, physically and emotionally, as her edge. Their readers are women who want to do more, have more, and be more. It is a magazine that helps women stay on pace in their lives with practical advice on nutrition, fitness, relationships, style and beauty and much more. We will target Women’s Health subscribers that are looking for practical advice on fitness; this is where we hope to reach runners that our shoes would appeal to. Runner’s World brings advice on new running techniques, introduces the latest running products and national and international race information. It includes strategies, tips and advice to fuel performance, prevent injuries, burn fat, shed stress, and achieve personal goals. Runner’s World is filled with the powerful information that helps people run faster and farther and have more fun doing it. Fitness Magazine is a woman-oriented magazine that presents a practical and realistic guide to maintaining a lifestyle that's healthy for the body, mind, and spirit, complete with everything from exercise and dieting tips to advice on beating stress. Each issue contains helpful information such as pointers on beautifying oneself naturally, reviews of health and beauty products, and strategies for eating smart, getting the proper workout, and keeping your life in balance, both physically and emotionally. We will target fitness subscribers who value new ideas on exercising and proper workouts.. Outdoor Media Plan / Internet Banner The outdoor media plan will include sponsoring events such as half marathons and full marathons where booths will be set up displaying the new concept product. This is important to do because much of the target market is serious about running and are likely to participate in these types of events in great numbers. The booths will be supplemented by physical banner ads, along with product and company logos on event staff and participant shirts and merchandise. 2009 Nike Women’s Marathon Banner 2009 Nike Women’s Marathon Truck Wrap Besides our outdoor media, a year long internet advertising push will be critical. Banner ads will be run on Runnersworld.com, Menshealth.com, Womenshealthmag.com, and Fitnessmagazine.com. These websites will be targeted in order to reach those who use the internet as a daily source of information, rather than subscribing to a magazine. These ads will also tie in with the print ads in their corresponding magazines, should the consumer use both. This tie-in could create double the awareness. Using internet advertising over TV is more logical because in general runners do not watch as much TV, and the chances of reaching them when they do is slim. The target market generally reads more online material and participates in marathons; therefore it would be most effective to reach them through these methods. Sample Booth Monthly Hits per Website 2,400,000 1,200,000 960,000 785,000 Men’s Health Women’s Health Runner’s World Fitness Budget Pre-2020 Nike Air Max Custom Marketing Launch Budget Shoe Sales $15,000,000,000.00 Running Shoe sales $2,250,000,000.00 Running Marketing Budget $157,500,000.00 New Line Advertising $9,604,983.00 100% $9,604,983.00 Magazine First Quarter Pre launch Runners World $377,514.00 Mens Health $559,365.00 Women's Health $507,435.00 Running Times $444,000.00 $1,888,314.00 39% 6 months online ad 728X90 ad size 12month Runnersworld.com $486,000.00 Menshealth.com $1,281,340.00 Womenshealth.com $876,980.00 Runningtimes.com $1,120,900.00 39% $3,765,220.00 Full Marathons Runner Sponsor Boston marathon 20,000 New York 20,000 Honolulu 20,000 Chicago 20,000 Walt Disney 20,000 100,000 Half Marathon Runner Sponsor OneAmerica, Indianapolis 20,000 Country music, Nashville 20,000 PF Chang's Rock, Phoenix 20,000 Rock n Roll, San Antonio 20,000 Rock n Roll, Las Vegas 20,000 100,000 21% 200,000 100% Maketing budget Magazine Print Ads Online Ads Full Marathons Half Marathons $9,604,983.00 $3,776,628.00 $3,765,220.00 1,205,945 857,190 15% 7% Magazine Ad Distribution Runners World 20% Running Times 24% Mens Health 30% 6% 4th Quarter Post launch $377,514.00 $559,365.00 $507,435.00 $444,000.00 $1,888,314.00 $3,776,628.00 Total $755,028.00 $1,118,730.00 $1,014,870.00 $888,000.00 $3,776,628.00 Women's Health 27% Half-Marathon Costs Rock n Roll, Las Vegas $140,900 OneAmerica, Indianapolis $218,700 Race Sponsor 240,000 237,900 212,300 210,345 205,400 1,105,945 Race Sponsor 198700 148900 138890 149800 120900 757190 1,863,135 Marketing Total Total 260,000 257,900 232,300 230,345 225,400 1,205,945 Total 218,700 168,900 158,890 169,800 140,900 857,190 2,063,135 $9,604,983.00 Rock n Roll, San Antonio $169,800 Country music, Nashvi $168,900 PF Chang's Rock, Phoenix $158,890 Full-Marathon Costs Walt Disney $225,400 Boston marathon $260,000 Chicago $230,345 Honolulu $232,300 New York $257,900 Budget Spending by Category Half Marathons Full Marathons 9% 13% Magazine Print Ads 39% Online Advertising Runnersworld.com 20% Runningtimes.com 24% Menshealth.com 30% Online Ads 39% Womenshealth.com 27% Print Advertisement Internet Banner Ad Sales Promotion Consumer Sales Promotion: The consumer sales promotion will offer thirty five dollars off to anyone that brings in their old shoes. The old shoes will be donated to shoesforhumanity.org, a non-profit organization that recycles shoes for the needy in third world countries. This is not only more sustainable and socially responsible, but will help improve our company image. The promotion also symbolizes the idea for the customer that the new Nike shoe is replacing the old technology of the shoes they just donated. They will feel good about saving money and helping others, and be more excited about the product. This supports the positioning statement by reinforcing that the new shoe will replace old technology by literally replacing their old shoe. This promotion will last for the first 3 months after the release date of the custom shoe. Trade Promotion: There will be a promotional sale for retailers, specifically the buyers for individual stores and specialty chains. The objective will be for these buyers to take advantage of the bulk discount and to sell the product in their stores as soon after launch as possible. These contracts will be negotiated through stores already carrying our product, the process beginning in January, four months before launch. Our promotion will include discounted prices on bulk orders of at least 100 pairs of shoes. The retail price for the shoe will normally be $120 and our regular price to retailers will be $90. If they decide to carry the product in the first three months after release they will get a special rate of $80 per pair instead of $90. This will save the retailer $1500 on every order of 100 pairs of shoes. Public Relations Nike plans to release a press release to top newspapers, running magazines, and radio stations throughout the U.S. We think they will run our story because Nike has changed the way shoes are built forever. They are beginning to offer a new, innovative product that no one else has yet introduced to the retail world. Orthotics and running shoes exist, but combining the two at such an affordable price is completely new to the market. Contact: Marty McFly NIKE, INC. Phone: (800) 344-6453 Fax: (503) 389-7523 One Bowerman Dr. Beaverton, OR 97005 www.nike.com NIKE PRESS RELEASE Nike, Inc. Announces New Air Max Custom After acquiring custom insole technology from orthotic startup Custom Kicks, Inc., Nike announces new running shoe offering customized, built-in insoles. Portland, January 1, 2020: Nike, Inc. today announced that after last year’s acquisition of Custom Kicks, Inc. a new Air Max running shoe will be released utilizing new high-end “customizable” insoles. Custom Kicks, based out of St. George, Utah, had specialized in custom orthotic insoles distributed through medical and retail channels . The new running shoe combined with the customized insole will be called Air Max Custom. This innovative running shoe will be different then anything else that has been or is on the market currently. Each running shoe purchased by the customer will have the built-in insole molded to their foot at the time of fitting/ purchase. The planned launch date for this new running shoe will be April of this year. Nike is planning to release this product to any retail chain or specialty store in their current supply chain, and will take applications from other interested distributors through the typical application process. Promotional deals have been discussed between Nike and shoe distributors and retailers. Explicit, but fairly easy training will be required for the employees of each store selling the Air Max Custom. Training will involve heating the insoles and properly molding them to customer’s feet; a quick process that takes approximately five minutes. Speculation about a new revolutionary product from Nike have swirled since the acquisition of Custom Kicks, Inc. a year ago. “We are excited to finally be able to bring to market the technology acquired from Custom Kicks. We are pleased to offer such a revolutionary product to serious runners, and we are looking forward to expand this new concept to all of our lines of shoes in the future. We believe that this product is the future, and will bring “podiatrist-level” comfort and support that has not been available up until now. " says VP Marty McFly. Nike anticipates that serious runners will convert from their current running shoe to the Air Max Custom because of its unique technology. Runners can count on increased performance and comfort by having a shoe that is not just the “right size”, but custom molded specifically to their foot. FOR RELEASE 9 A.M. PST, JANUARY 1, 2020 Appendix Group Ideation Session Participants: Amanda, Michael, Rob, Aaron, Charles Discussion Leader __Jake___________________ Scribe 1. 2. ___Amanda__________________ Review the Creative Brief to provide direction. Generate big ideas-(Don’t evaluate them, just generate them). Record all ideas here, with just enough detail to help others recall them at a later date. Use additional paper as necessary. You should come up with at least four or five big ideas which should include following: 1) Tag line or synopsis of the big idea “Lead the pack” “What is holding you back” “Enhance performance” “Are you wearing the right shoes” “The future of footwear” 2) A brief description of the concept A man leaving his house to run. Takes a path in the woods where he subsequently is chased by a raging pack of wolves. He is ahead of the pack and at the end of the advertisement it cuts to a scene with the same runner crossing the finish line. Athletes of different sports wearing shoes that do not go with that sport. For example, a tennis player wearing baseball cleats, a boxer wearing tennis shoes, a basketball player wearing golf shoes. Then we will have the punch line come in that says, “Are you wearing the right shoes” A man attempting to run with a ball and chain attached to his foot. It will show the man running and because he does not have custom shoes he is being held back. The punch line will be “What is holding you back” and then we will show their shoes. The future of footwear will show shoes from the 70’s 80’s and 90’s and then show our shoes in 2020. It will show the future of footwear by showing runners from each year wearing the shoes popular in their era. Our punch line will be “The future of footwear, shoes customized to your foot” A guy running to the edge of a cliff and flying over the drop off. It will be unrealistic but designed to show how our new shoe enhances individual performance. This marketing campaign has legs in that we can continue using unrealistic things that show performance. Another example would be a scene where a guy runs through a flash flood and the rest of the runners stop and do not go on. Punch line is “Enhance your performance with custom kicks” Group Synthesis Session Date: 11-9-2010 Time: 3:00 pm Place: Smith 340 ParticipantsAmanda Dimick, Michael Norgrant, Jake Fullmer, Aaron Hildreth, Rob Staples, Charles Holloman Discussion Leader: Jake Fullmer Scribe: Amanda Dimmick 1. Ask all participants to select their top three ideas from the idea session - based on Positioning, Target Appeal, Attention, Retention, and Accomplishment of objectives. Lead the pack, a person with our special shoe with the orthotic leading the pack. Wearing different shoes soccer player with golf cleats. Breaking free, a weight on his foot or something holding him back. Clown shoes. The evolution of footwear from the 70’s to 2000’s, the future of footwear. Can you combine elements of different ideas or modify them to be more “on strategy”? Firm up & flush out ideas before proceeding. Leading the pack is our main idea thus far. 2. 3. Now systematically evaluate all ideas remaining, according to the following criteria. I suggest using a scale of 1 -5 with 5 being the best. Idea Conveys Target Gets Accomplishes Memorable Has Totals Position Appeal Attention Objective Legs Leading the pack 23 3 3 5 4 5 3 Clown Shoes 17 Breaking Free Wearing Different shoes Future of Footwear 2 3 3 2 4 3 16 3 3 3 2 3 2 18 3 3 4 3 3 2 27 4 4 5 5 4 5 4. Choose your big idea. Which satisfies all 6 criteria above? If none, can one be improved? The Future of Footwear is our big idea.