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

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 i

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THE FINANCIAL UNIVERSITY OF FINANCE - MARKETING

MARKETING MANAGEMENT

FINAL EXAMINATION MARKETING PLAN TO IMPROVE NIKE AIR JORDAN 1

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1 ASSESSMENT CRITERIA.

- Work completion time.

- Content quality.

- Attitude at work.

2 DETAILED ASSESSMENT OF EVERY MEMBERS

Name Work completion time Content quality Attitude at work Total

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

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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

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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.

Customer Need

Student Used for many purposes.

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Express your own style and personality.

Affordability.

Unique design.

The product is comfortable to use.

Sneakerhead Easy to customize.

Unusual design.

Price doesn't matter.

Sport man Comfortable, smooth when used for sports activities.

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

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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

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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.

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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.

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Midfoot part made of suede.

Elastic mesh in several positions, neoprene sole.

Feels 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 Design The shoe body is made of

Prime Blue performance yarn - 50% of the fabric is Parley Ocean Plastic, the remaining 50%

high-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.

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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.

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

Tiêu đề	Marketing Plan to Improve Nike Air Jordan 1
Tác giả	Lương Hoàng Di Linh, Trần Minh Nghĩa
Trường học	The Financial University of Finance - Marketing
Chuyên ngành	Marketing Management
Thể loại	Final Examination
Năm xuất bản	2023

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