MARKETING MANAGEMENT FINAL EXAMINATION MARKETING PLAN TO IMPROVE NIKE AIR JORDAN 1

2.1 Market summary Targeted customers belong to many different segments such as students, shoe collectors, sports players Table 2.1: Table of customer segments Target Segment Customer Ne

THE FINANCIAL UNIVERSITY OF FINANCE - MARKETING

MARKETING MANAGEMENT

FINAL EXAMINATION MARKETING PLAN TO IMPROVE NIKE AIR JORDAN 1

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LƯƠNG HOÀNG DI LINH - 2021001662 TRẦN MINH NGHĨA – 2021000053

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TABLE OF CONTENTS

1 EXECUTIVE SUMMARY 4

2 SITUATION ANALYSIS 5

2.1 Market summary 5

2.2 S.W.O.T 6

 Strengths: 6

 Weakness 7

 Opportunity 7

 Threat 8

2.3 Competitor 8

2.4 Product Offerings 11

2.5 Distribution 11

3 MARKETING STRATEGY 11

3.1 Objectives 11

3.2 Target Markets 12

3.3 Positioning 12

3.4 Strategies 12

Product 12

Price 14

Distribution 14

Marketing Communications 14

3.4 Marketing mix 14

3.5 Marketing Research 15

4.0 FINANCIALS 17

5.0 CONTROLS 18

5.1 Implementation 18

5.2 Marketing Organization 18

1 EXECUTIVE SUMMARY

Nike is a US-based supplier of sportswear and equipment It was founded in January

1964 and its headquarters are located near Beaverton, Oregon Nike is the world's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment The Jordan 1 is Nike's iconic shoe In 1985, the Air Jordan 1 was officially produced and became a commercial product with a retail price of $ 65, known as the most expensive basketball shoe ever since 1985 AJ1 was designed based on Nike products of that period with the signature "swoosh" mark on the side, the Nike Air logo on the tongue (in Retro versions replaced with the Jumpman logo) and especially the Air Jordan "Winged Basketball" logo AJ1 owns an "Air" cushion in the heel, an ankle buffer to limit injuries when playing football With the development of the market, customers' requirements for a pair of sports shoes are also gradually changing Although this is a highly iconic shoe, comfort is still quite low In response to that change, we launched an improved version of the Air Jordan 1 Our goal for the first year is to achieve 12,000 sales with a profit of about 1.1 million USD, keeping the loss in $300,000 the first year Break even after 6 months of year 1

2 SITUATION ANALYSIS

The sports shoe market in Vietnam is extremely exciting with a lot of potential for development According to statistics of the Ministry of Industry and Trade, each year the country consumes 130-140 million pairs of footwear with a value of over $1.5 billion, accounting for about 30% of the industry's export revenue Because the needs of people are increasing day by day, they love the new and unique things that shoes bring Therefore, the market in Vietnam can be said that this is a potential market for investors and businesses, and it can be seen that the shoe market in general is very competitive, if you want to gain market share, stand firmly in the market, and gain trust from customers, you need to invest in product quality, reasonable prices, a unique breakthrough in design

as well as other features the accompanying performance of the shoe

2.1 Market summary

Targeted customers belong to many different segments such as students, shoe collectors, sports players

Table 2.1: Table of customer segments

Target

Segment

Customer Need

Express your own style and personality.

Affordability

Unique design

The product is comfortable to use

Unusual design

Price doesn't matter

Easy to clean

The target audience, however, has a few different needs But aside from that, there are still a lot of the same requirements From those common needs, Nike offers the required elements on new products

 Feature request: Unique design, easy-to-match colors, with integrated Airbag insole for increased comfort, treated leather for easy cleaning

2.2 S.W.O.T



 Strengths:

Product innovation: In a highly competitive shoe market, innovation is an important

determinant of sustainability Nike, has always been successful and is considered as one

of the pioneers in introducing various enchanting products With its ever-evolving and innovative product range, it has cemented its position as one of the leading brands in the apparel and footwear industry, gaining the trust and confidence of its customers Nike has accounted for more than 40% market share in the Vietnamese shoe market Nike has always strived, constantly developing products to meet the needs of customers The table below provides how Nike has implemented various initiatives to meet their product innovation strategy

Table 2.2: Table provides how Nike has implemented various initiatives to meet their product innovation strategy over the years

2014 Launch of Nike Vapor Untouchable

2015 Make a revolution by introducing the Nike FlyEase

2017 Air Jordan 11 "Space Jam" launch marks the most successful shoe in Nike history

2018 Nike introduces their innovative Tech Pack collection

Strong global brand: Nike, is considered one of the strongest global brands with a

prominent worldwide presence The brand is promoted by celebrities and top sports experts, creating brand recognition in the eyes of customers, being brand ambassadors of international sports events with famous stars age in the sports world: Michael Jordan, Cristiano Ronaldo, Rory Mcilroy and Rafael Nadal, with its recognizable and inspirational “Just do it” tagline to all its potential consumers



 Weakness

Depends heavily on the footwear sector: The brand has a wide range of products

including apparel, equipment and footwear But marketing trends show that Nike's sustainability largely depends on its footwear sales So if in the event of a risk, the footwear segment has a problem, the organization will be seriously affected In North America, more than half of all sales are generated from footwear each year

Spend a lot of money on advertising: Nike spends a lot on advertising and brand

endorsements While considered a successful marketing strategy, annual increases in costs vary widely and make a significant impact on profit margins However, as competition increases with each financing, the allocation to advertising costs also increases exponentially The company itself argues its stance by claiming this is a demand-generating process, but the percentage increase is not reflected in the expected productivity gains



 Opportunity

Product Expansion: Nike is known to be one of the few brands that spends millions of

dollars on research and development As they dominate footwear, apparel and sportswear that gives them a significant opportunity to increase their product range Nike has focused

on product innovation, designing unique and new products to meet the needs of

Figure 1 revenue generated from footwear over the years

Footwear

Garment

Equiment

customers, and Nike's creative research and development department always brings innovative products products that fascinate, stimulate the needs of customers Some products such as Nike Flyknit, recycled polyester, Colordry, Nike Grind, Nike vapor untouchable, “Space Jam” Air Jordan 11, Tech Pack collection, etc show skill and relentless product design creatively new

Explore emerging markets: In the 21st century, the globalization of the world, China,

Brazil, have had high economic growth Consumers in high-income countries and brand interest are on the rise, and these are the key markets Nike targets, which can drive sales and generate revenue profit for Nike



 Threat

Fierce competition: Nike is known to be a famous brand that is interested and favored by

many people, and is appreciated more than its competitors However, Nike's biggest fear

is facing big competitors like Adidas, Puma, in the market for clothing, sports shoes and other accessories The needs of customers are increasing day by day, so Nike must always grasp trends and come up with appropriate strategies to be able to develop and stand firm in this fiercely competitive market

Dangerous Supply Chain Management: For a global company like Nike, reaching

customers and delivering products with precision is critical Nike does not own the footwear and apparel factory, although it accounts for 90% of sales All production is outsourced to third parties again accumulating materials from independent contractors It improves margins and reduces inventory, but it also adds risks to the entire supply chain management system

2.3 Competitor

Revenue in billions

Figure 2 revenue of competitor

Nike

Adidas

Puma

ADIDAS: As one of the most powerful sports brands worldwide, loved

and trusted by many people and Nike's biggest competitor, the company

has a wide product portfolio with a wide range of shoes and accessories

different events, along with the popularity of the variety of different

shoe lines Adidas has an efficient distribution system for their products

to be available through different channels, has built a brand in the hearts

of customers and created a strong presence in the community by

sponsoring organizations Major sports organizations like FIFA, UEFA, NBA &

Olympics have increased awareness of Adidas in the market and thus also increased

highly targeted customer base

PUMA: Puma is associated with many famous brands around the world,

which is very important in making it a top brand, besides it is always at the

forefront of the latest trends back to Puma creative advantage also they

have very strong marketing department to make sure that the world never

misses anything they do Puma has also built a brand in the eyes of

customers by sponsoring 7 football federations at the World Cup, including

Ghana, Cameroon, Ivory Coast, Algeria, Italy, Switzerland and Uruguay

NEW BALANCE: Known as a brand with a variety of different shoe lines,

the N-brand becomes the focus and gradually exerts a strong influence on

world fashion Because of this, many people mistakenly believe that this is

a brand of the Land of Kimchi, but New Balance comes from the US, a

symbol of popular fashion Besides, the brand has built trust and trust with

customers who are philanthropists for many years and are also sponsors for

teams and players in the Olympics, cricket, Australian Football Federation

and the Australian Football Federation NBA

FILA: Is a brand that is also interested by many people with the hotness of the Fila

brand's Sneakers Designed in a bunker style but still customized to fit the Asian figure,

the "quality" Fila sneaker has taken the throne making anyone want to own

Table 2.3: Comparison table of shoe lines of brands

Brands

and

products

Adidas

Ultra Boost 22

Puma Puma Cell Endura Rebound ‘White’

New balance New Balance Made In-991 Classic

Fila FILA Disruptor 2 White

Material,

substance

Made with Adidas'

specialized Primeknit

fabric

Specialized fabric of Puma

The midsole is classic Abzorb

Mainly high quality leather material

Recycled ingredients.

Mesh fabric runs all over the shoe

Airbag at the bottom

High quality nubuck leather material

Midfoot part made of suede

Elastic mesh in several positions, neoprene sole

Feeling

when

carrying

The heel part hugs more, no

longer feels the heel lift

when running feel

comfortable

when carrying

Very durable and lightweight to help bring comfort to the wearer

The sole is carefully made,

so the foot is extremely comfortable

Always keep ventilation

The breathability is quite good, providing

a comfortable and cool

exercising a lot

The sole with good grip and suitable weight makes the feet feel more stable when moving and operating

Prime Blue

high-performance yarn - 50% of

the fabric is Parley Ocean

Plastic, the remaining 50%

of the textile is recycled

polyester

The plastic frame of the

ultraboost 22 is

supplemented with a

special "hole" for the wire

The boost midsole has been

tweaked to improve energy

return

The outsole is applied the

latest technology:

Continental Natural

Outsole

Soft materials and meticulous stitching

Neutral color gamut

There are breathable fabric sections on the forefoot

The iconic N is highlighted

Combined with those are sharp cuts and curving lines around the shoes, thereby showing the delicate and eye-catching design

Designed with simple, delicate colors suitable for many customers

The sole of the shoe is pitiful, eye-catching, and the embroidery is solid

2.4 Product Offerings.

These are criterias based on market analysis, analysis of product strengths and weaknesses of competitors:

Made of lightweight material

Easy to handle simple stains

The sole is integrated with boost technology

Sweat-wicking and breathable

Increase comfort for the foot

Leather material is increased softness

2.5 Distribution

Nike products are distributed primarily through retail stores Nike has its own exclusive stores in which products are sourced directly from the company

On the other hand, many multi-brand showrooms will also display Nike clothing and shoes These multi-brand showrooms source products from one distributor

In addition, online distribution channels are increasingly being divided into: direct distribution and indirect distribution With a direct distribution channel through Nike's website, with an indirect channel through reputable third-party sales websites: Shopee, Lazada, Saigonsneakerstore,

Nike distribution channel diagram:

3 MARKETING STRATEGY

3.1 Objectives

We have set achievable goals for the first 6 months and the last 6 months of the year With the first 6 months of the year we are aiming for unit sales of 2600 pairs, breaking even in the second quarter with a sales volume of about 4667 pairs In the next 6 months,

we continue to develop the product according to the established plan

Final customer

producer

producer

Geography: Nike chooses to market large, densely populated cities For example: Ho Chi Minh, Da Nang, Hanoi, Hai Phong

Demographics: Targeting both men and women Age 16 to 35 Monthly income 7 million

or more

Behavior: Targeting people with a modern lifestyle, willing to pay for high-quality products, often regardless of the price, the owner cares about the quality that the product brings

Psychology: Targeting the group of people who want to own a pair of shoes that are both fashionable and can serve many sports activities This group of customers has the mentality that they will buy a slightly expensive but high-quality item rather than choosing low-quality items

Targeting:

Our main target customers are middle class and above, aged about 16 to 35, including students, office workers, people with jobs in the sports field With product requirements

is dynamic, youthful, get comfortable when using

The second target is shoe collectors, who want shoes with a basic shape that can be easily customized to their own preferences

3.3 Positioning.

Nike brand with positioning statement: "For true athletes, Nike gives them confidence and the perfect shoes for any sport" Besides, the slogan "Just do it" has been deeply imprinted in the minds of customers and with that saying has conveyed positive inspiration to customers

3.4 Strategies

Product

- Weaknesses on Nike Air Jordan 1:

The sole of the shoe is a bit hard and thick, when exercising a lot, it will cause a hot feeling in the feet

Fabric does not dissipate heat well

The material where the contact point with the ankle is not soft enough