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Nicola Braginsky , Fiona Dantzer, Xoe Jakubowich , Emily Lorsch

NIKE Bar. Nicola Braginsky , Fiona Dantzer, Xoe Jakubowich , Emily Lorsch. NIKE, Inc. Started as Blue Ribbon Sports in 1964. Nike brand created in 1972. NIKE, Inc. became public in 1980. Founded by Bill Bowerman , with Phil Knight and Jeff Johnson Headquarters in Beaverton, Oregon.

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Nicola Braginsky , Fiona Dantzer, Xoe Jakubowich , Emily Lorsch

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  1. NIKE Bar Nicola Braginsky, Fiona Dantzer, XoeJakubowich, Emily Lorsch

  2. NIKE, Inc. Started as Blue Ribbon Sports in 1964 Nike brand created in 1972 NIKE, Inc. became public in 1980 • Founded by Bill Bowerman, with Phil Knight and Jeff Johnson • Headquarters in Beaverton, Oregon Mission Statement: To bring inspiration and innovation to every athlete* in the world. * If you have a body, you are an athlete

  3. NIKE, Inc. • Operates in 160 countries • Brands under NIKE, Inc.: • Nike Brand, Cole Haan, Converse, Inc., Hurley International, LLC, Jordan Brand, Nike Golf, Umbro, Ltd. • The Nike Foundation

  4. Our Product • Product Development and Diversification • Introducing • Nike’s new energy bar for the athlete on the go • Co-Branding with ClifBar NIKE Bar

  5. SWOT FrameworkStrengths • Well-known • Global • Well-Distributed • Positive Brand-Equity • Strong Share of Mind • Philanthropic • Environmentally Friendly

  6. SWOT FrameworkWeaknesses • New to food/beverage industry • Associated with apparel

  7. SWOT FrameworkOpportunities • Further global expansion • Expansion into new market • Growth of health/wellness sector • Sustainability Promotion • Linking fitness with health/wellness

  8. SWOT FrameworkThreats • Competition with other energy bars • Danger of new product failure • Competition with other energy supplements

  9. GoalsFinancial Goals 2015 Revenue Projections $28- $30 Billion 2011 Revenue* $20.9 Billion NIKE, Inc. NIKE Bar 2012 Revenue Projections $1 Million 2015 Revenue Projections $5 Million *As of May 2011 Year-End

  10. Other Goals • Expand into the nutrition/wellness market • NIKE Bar will surpass PowerBar as the leading energy bar • Broaden Nike customer base further • Create a whole NIKE Nutrition Line • Line Extension- variety of NIKE Bar flavors • Product Extension- NIKEade

  11. StrategyValue Proposition • 100% Organic (POD) • More protein, provides more energy • Better taste • Co-branding with ClifBarcombines Nike’s global market with ClifBar’s expertise

  12. StrategyValue Proposition: 2-V Analysis New Product Innovation Organic

  13. StrategyS&T Algorithm

  14. StrategyS&T Algorithm: Target Market • Target individuals in the 18-30 year old market • This demographic cares about nutrition accessibility, and organic products due to their busy and varying lifestyles. • These consumers live active lifestyles in which their looking for a nutritious and sustainable alternative that they can grab on the go.

  15. 2010 and 2011 Most Fit States in the United States

  16. StrategyTarget Market • We have decided to target most heavily in the top 15 fittest states • These states had the smallest percentages of obese people in 2011 • Want to target the fit market because they are conscience of what they eat

  17. StrategyTarget Market Examples • The Athlete Jack grabs a NIKE bar to gain back the energy he lost during a long day at school so he can excel during basketball practice. He was not even in line to get basketball captain and he found out today that he is next year’s captain! Thanks to the NIKE bar, he is going to get all of the girls!

  18. StrategyTarget Market Examples • The Mom Sally is a 28-year-old working mother and grabs a NIKE bar in between packing the lunches of her 2 children and driving them to school. She then has 2 hours before she needs to get to work. Not only is the NIKE bar grab-able and the perfect amount of calories and nutrition to begin her day, but it gives her energy to get in her daily workout and not pass out before her kids are fast asleep.

  19. StrategyTarget Market Examples • The Businessman Do you think a young businessman with long hours has the energy to workout every morning? Todd never had the energy to even attempt to workout but ever since he tried the NIKE bar, Todd is able to workout every day before he throws on his suit and heads to the office for a long day of work.

  20. StrategyTarget Market Examples • The College Student Natalie is a straight A student and doesn’t have the time or energy to head over to the WoodPEC. She is always up late studying and then waking up early to study some more. When Natalie gained the freshman 15, she decided to try the NIKE bar. Now she works out every morning and is not tired at all! She can still stay up late studying and wake up early because the NIKE bar gives her the perfect amount of energy to workout and then get back to work!

  21. Tactics5-C Framework Customers: Ages 18-30 Context: -Growth in fitness & wellness market -On-the-go market -Obesity -Going green Collaborators: Clif Bar Suppliers Distributors Company: Nike Competitors: PowerBar Nature Valley Energy Bars

  22. 5-C FrameworkCollaborators: ClifBar • Collaborating with ClifBar in order to: • Use their expertise to enter the food market • Break away from association with apparel • Combine our green efforts • ClifBar’s 5 Aspirations • Sustaining our Planet, Community, People, Business, and Brands

  23. 5-C FrameworkCompetitors Competitor against NIKE Values Targets athletes Current market leader for sports energy bars • Competitor against ClifBar values • Targets everyday, outdoorsy people

  24. 5-C FrameworkContext: Wellness Market • The overall market for selling natural products through retail channels (such as Whole Foods Market) showed a 7% increase from the prior year. • Demand for the health and wellness industry is projected to grow by at least 4.2 percent over the next five years. • “Wellness is what is going to help people be healthier. This is a booming industry and has the potential to really become center stage..”

  25. 5-C FrameworkContext: Going Green • Nike’s Green Impact • Rated #1 on Newsweek’s 2010 Green Score • Received ACR Commitment to Quality award in 2011 • Ranked highly on Climate Counts • Leads the way in demonstrating that sustainability is good business according to the NWF

  26. 5-C FrameworkContext: Going Green • ClifBar’s Green Impact • 2015 Zero-Waste goal • Wrapper Brigade program • Reducing fossil fuels • Builds wind turbines • Works to conserve and restore the environment

  27. Perceptual Map

  28. Perceptual Map • Relative positioning of the NikeBar within the competitive energy bar marketplace, with respect to consumer “organic interest” and target market “athleticism.” • We define athleticism from Nike’s statement, “If you have a body, you’re an athlete.” • We see the best possible opportunity for positioning our bar to be with a high interest in organic ingredients, as well as a moderately high level of athleticism. • We hope to target hard-core athletes as well as fit individuals between the ages of 18-30 with our 100% organic, nutrition-based products.

  29. TacticsMarketing Mix: Product • NIKE Bar 100% Organic

  30. TacticsMarketing Mix: Product There is sufficient caloric content and a high percentage of calories from fat. The fat in our bar comes from the healthy fats in nuts, nut butters, and coconut oil – not from sugar and syrups. Almonds have an incredibly low glycemic index and provide a great source of Vitamin E and magnesium. There is an adequate percentage of protein (from whey protein) and composition of complex carbohydrates (from raw quinoa). A combination of all of this will create lasting energy. Our bar would be USDA certified as well.

  31. TacticsMarketing Mix: Product • Why consumers should eat the NIKE Bar before working out: • "A relatively high-carbohydrate, moderate protein, low-fat meal is best to consume before exercise. Most bars are glorified candy bars, often providing even more calories.” --Suzette Kroll, a well-regarded expert in the nutrition field. She is a registered dietitian, certified intrinsic coach and specialist in nutritional counseling.

  32. TacticsMarketing Mix: Product • Exercising without eating can: • Not allow you to meet your fitness or performance goals during a workout because you simply do not have the energy • Increase your risk for hypoglycemia, a condition that occurs when your blood sugar gets too low and can cause a lightheaded or dizzy feeling because your brain is not getting enough fuel.

  33. TacticsMarketing Mix: Product • Do your brain and body a favor and fuel up before you go to exercise! You need to fill your muscles with carbohydrates in order to begin your exercise at your strongest and get the most out of your workout. • You don’t need to sit down for a long and heavy meal that you don’t have time for. The NIKE bar has all the protein, carbohydrates, and nutrition that you need to feel energetic and go for a great workout!

  34. TacticsMarketing Mix: Price • $1.99 for one NIKE Bar • In the one dollar range • Ending in an odd number • $18 for a box of 12 bars • 2nd Degree Price Discrimination

  35. TacticsMarketing Mix: Place • Distribution Channels: • Vending Machines • Convenience Stores • CVS, Walgreens, Rite Aid • Grocery Stores • Organic and Health Aisles • Gyms • Sporting Goods Stores • Sports Authority, Dick’s

  36. TacticsMarketing Mix: Promotion • NIKE Van • Drive around college campuses like the Red Bull Car and give out free samples

  37. TacticsMarketing Mix: Promotion • Bundling with ClifBars • Free NIKE Bar in a box of ClifBars • Sampling through Nike.com • Free NIKE Bar with online purchases for the first three months

  38. TacticsMarketing Mix: Promotion • Television commercials: Style of other NIKE commercials • Just Do It… but eat this first. • Point of Sale Promotion: in the checkout lines at Sporting Goods Stores • Online: Banner ads on sports sites and college sites

  39. TacticsMarketing Mix: Promotion • Magazine Advertisements in ESPN Magazine, Sports Illustrated, and Fitness Magazine

  40. TacticsMarketing Mix: Promotion • ADPLAN Framework for TV Commercial • Attention: Variety of individuals, music • Distinction: Few energy bar commercials • Positioning: Targeting wellness and athleticism • Linkage: similar to other NIKE commercials • Amplification: Simple, clear message • Net Equity: Associated with NIKE, high brand equity

  41. ImplementationAdoption Framework • Awareness • TV Commercials • Point of sale displays • Banner ads on sports sites and college sites • Sponsored campus events • Understanding • NIKE Bar tab on Nike.com • Free samples to understand taste

  42. ImplementationAdoption Framework • Attractiveness • 100% Organic ingredients and packaging • Nutritional benefits • Low-calorie • Increasing perceived benefits: all green, low-calorie, energy boost • Availability • Widely available in: • Gyms • Vending machines • Convenience stores • Grocery stores • Nike.com • Sporting goods stores • College campuses with the NIKE Van • Purchase!

  43. ImplementationAdvertising Budget • Total NIKE, Inc. advertising budget: $2.4 Billion Television advertising budget: $8,027,680 Online advertising budget: $17,500 Magazine advertising budget: $3,639,840 Total NIKE Bar advertising budget: $11,685,020

  44. ImplementationAdvertising Budget: Television Cost to Make Commercial Between $300,000 and $500,000 Total: $400,0000 National Primetime Commercials Average price for 30 sec spot: $127,128/spot 5 per week for 12 weeks Total: $7,627,680 Total television advertising budget: $8,027,680

  45. ImplementationAdvertising Budget: Online Advertising Online Banner Ads Average of $35/CPM Want 500,000 impressions on a variety of sports and college websites Total: $17,500 Social Media Create a Facebook page and a Twitter account for NIKE Bar to update consumers Tab on Nike.com Page about NIKE Bar on Nike.com Sold in online store Total online advertising budget: $17,500

  46. ImplementationAdvertising Budget: Magazines Fitness Magazine Full page color ad: $153,920 Run ad 6x Total: $923,520 ESPN Magazine Full page color ad that runs 6x: $214,720/ad Total: $1,288,320 Sports Illustrated Full page color ad: $238,000/ad Run ad 6x Total: $1,428,000 Total magazine advertising budget: $3,639,840

  47. ImplementationAdvertising Budget • Current NIKE Advertising

  48. ControlPerformance Evaluation • Measure sales at three months, six months, and one year • Is NIKE Bar being adopted over PowerBar and other energy bars • Surveys from free samples from orders asking consumers for their flavor preferences • Free box of NIKE Bars for answering survey

  49. ControlEnvironmental Analysis • Is the energy bar market too saturated to adopt our product? • Is NIKE Bar too different from other NIKE products to be adopted?

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