Final Project: Marketing Plan for Nike Air Presto 2019 (SPT 608)

This project presents a detailed marketing plan for the Nike Air Presto 2019 shoe, developed as a final project for the SPT 608 course. The report begins with an executive summary, providing an overview of the marketing plan, including company overview, macro and micro-environmental factors, SWOT analysis, and marketing objectives. The project analyzes the target market, current trends, and market research methods. It examines internal and external market factors, including competition, political, economic, social, and technological aspects. The marketing strategy section covers product, price, place/distribution, and promotion, including a social media campaign, promotional events, and sponsorship events. The plan also includes an implementation and evaluation section, with a project calendar, success determinants, evaluation methods, and a contingency plan. The report aims to define how the Nike Air Presto 2019 shoes will be promoted, packaged, and priced, and how to allocate resources effectively to maximize market penetration and growth. The report includes references. The project also covers the Nike company overview, mission statement, and potential sales and revenue growth opportunities. The marketing research approach includes both primary and secondary data. The company's key competitors and their strengths are also considered. The report also considers the readiness of the sports organization and the current economic conditions.

Running head: NIKE AIR PRESTO 2019 MARKETING PLAN
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Nike Air Presto 2019 marketing plan
Name:
Institution:

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Executive summary
The report entails the marketing plan for Nike Air Presto 2019 shoes product. The paper
demonstrates how the firm can provide the new brand to the market segment. The report
comprises a comprehensive marketing plan element such as company's overview, macro, and
micro-environmental factors and SWOT analysis of the company. The paper demonstrates the
firm’s objectives and marketing approaches regarding its 4Ps that illustrates how they can be
used in the case of the Nike Air Presto 2019 product promotion. The report analysis shows how
the company can still use the pricing strategies to capture new and existing customer target for
the product. Besides, the implementation and contingency plan is presented which relies on
Nike's senior executive and team members who would make goals possible for the Nike Air
Presto offering.

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Table of contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................5
The Nike Company-Overview (History and Current Status).......................................................5
Goal of marketing........................................................................................................................6
Current state.................................................................................................................................6
Mission Statement........................................................................................................................7
Potential sales and revenue growth opportunities........................................................................7
Target Market Analysis:..................................................................................................................7
Current and future trends.............................................................................................................7
Target customers..........................................................................................................................8
Market research methods.............................................................................................................9
Internal market factors.................................................................................................................9
Financial sustainability.............................................................................................................9
Mission, vision and organization culture.................................................................................9
External market factors................................................................................................................9
Competition..............................................................................................................................9
Political...................................................................................................................................10
Economic................................................................................................................................10
Social......................................................................................................................................10
Technological.........................................................................................................................10
Business data..............................................................................................................................10
Industry and Organization Factor Analysis...................................................................................11
Status of the industry..................................................................................................................11
SWOT analysis..........................................................................................................................11
The readiness of sports organization..........................................................................................12
Economic conditions..................................................................................................................12
Marketing Strategy........................................................................................................................13
Product.......................................................................................................................................13
Price...........................................................................................................................................13

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Place/Distribution.......................................................................................................................13
Promotion...................................................................................................................................14
High-level promotion and advertising strategy......................................................................14
Social media campaign...........................................................................................................14
Promotional events.................................................................................................................15
Sponsorship events.................................................................................................................15
Timeline of promotional events.............................................................................................15
Implementation and Evaluation.....................................................................................................17
Project calendar..........................................................................................................................17
Determinant of success..............................................................................................................18
Evaluation..................................................................................................................................18
Contingency plan.......................................................................................................................18
References......................................................................................................................................20

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Introduction
The Nike Company-Overview (History and Current Status)
NIKE, Inc. is the world largest apparel and sports footwear firm. The key Nike products are
typically focused on sportspersons, vending connected brands such as sporting shoes, clothes,
and gears. Over the past years, the request for sporting merchandise has been growing. By 2020,
users will advance to be more fitness conscious, which will increase the necessity for the athlete
gears.
The firm was founded by the University of Oregon coach Bill Bowerman and athlete Phil Knight
in 1964. Its first name was Blue Ribbon Sports (BRS) which initially functioned as a supplier
for Japanese shoe maker Onitsuka Tiger (Nike Inc. 2016). The company has made itself a
significant brand in the United States sporty market and encompassed half of its market share.
The firm with collaboration with Wieden Kennedy performed many marketing communiqué
means to influence the users and to create brand awareness.
The brand that has been selected for this Nike marketing plan is Nike Air Presto 2019. The brand
is broadly certified by users, particularly athletes who prefer lightweight shoes which are hard
and flexible. The brand was launched, at the Sydney Olympics in 2000, at the beginning of the
new era. The boots have been produced with the support and flexible foot-hugging upper for
comforts for the long-distance racers. The shoe was introduced with 13 different colors, and each
of them had unique name (Nike.inc, 2014). The firm has decided to transform the shoe design at
present and, the unique structure comprises features such as lightweight support and comfort
along with the loop in the front portion for getting at ease. The enterprise has produced both
women and men brands (Nike News, 2010).

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Goal of marketing
The objective of the Nike marketing plan is to assist in defining how Nike air presto 2019 shoes
will be promoted, packaged, and priced. It will also assist in allocating cash and promotion. Nike
air presto marketing strategy will help to pinpoint the target users and organize the re-launch of
the brand properly to minimize the cost and to have a planned growth of a firm (Anagnostakis,
Ritchie, Lim, Craig & Speedie, 2015).
Current state
Currently, the company has a broad alignment of its offering, which is accessible globally. By
the end of financial 2015, it had revenue of $3.27 billion. At the same time, it generated
approximately $12 billion of joint free income from its operations (Nike Inc, 2016). The business
strives to grow its product portfolio by embracing the development approach. By acquiring of
Umbro, the firm developed its rank as the most excellent shoemaker in the industry. Over the
years, the company has attained a robust name in the marketing of football, racing, and
basketball programs in North America and Europe (Nike Inc, 2016).
The company's general market would remain and be the fundamental driver for progress. Nike
has geographical prospects that it would create its growth alignment to all six advanced
geographical zones areas such as North America and Japan. To ensure users are satisfied with the
new brand such as presto, it has shown a course of action that it will develop new Nike shoes
internationally. The company will upsurge user awareness and its development by using novel
technologies. And therefore, with this course of action, the company projects it would offer an
extra of $2.2-2.6 billion by 2022 (Nike Inc, 2016). In the future, it is expected that the company
will upsurge its rates which will raise the productivity of the product (Nike Inc, 2016).

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Mission Statement
The business’s mission statement is "to bring inspiration and innovation to every athlete in the
world." The present state of the Air presto brands is goods and has positive user feedbacks
which comprise having a modest support level, comfortable and lightweight. However, the main
challenges are due to their longevity. The components utilized to produce the brand is not long-
lasting. Secondly is the price which does not justify the product longevity.
Potential sales and revenue growth opportunities
The company long-term financial objectives that would assist in growth and development
includes; 10% increment in profit and increase in earnings per share growth yearly. Additionally,
Nike plan to have 25% returns on invested capital and growth of dividend by 25% yearly (About
Nike, n.d.)
Target Market Analysis:
Current and future trends
During 2019, the company reported a weaker than anticipated sales in North America during its
fiscal third quarter. Even though the total revenue was in line with the company's estimates, Nike
shares fell more than 4% (Lauren, 2019). The following is what the company reported for its
fiscal third quarter; earnings per share 68% and revenue $9.611 billion. The company reported a
net income of $ 1.1 billion, matched with a net loss of $ 921 million, a year ago (Lauren, 2019).
According to the company, the digital business surged by 36% and it continues to venture in
online initiatives likes the customization options for users and mobile application. Nike said that
the shoppers used the Nike retail app to an average of 40% (Lauren, 2019). The company focus
has changed from its wholesale associates to selling directly to the users through its website and
stores. The Nike innovation trends are comprehensive, and it provides the company with

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confidences that it will use to win users for many years in future. The firm plans to focus on
women's brands in the future such as sports bras and yoga brands (Lauren, 2019). The quest for
sporting merchandise is increasing over time. In the subsequent two years to 2020, users will
become more fitness mindful, which will upsurge the call for the sporting gears (Nike Inc. 2016).
Target customers
Young sporting individuals can be the primary target for Nike air presto in the future. With its
product, the company has a powerful location to persuade young populaces by introducing the
social media platforms. For any firm to build a good connection with its users, it must figure out
the requirement of users. Therefore, Nike has done so by offering services and even when the
user encounters the problem, they can respond by sending an email. By that, the users have a
positive image of Nike in their thoughts which can upsurge their buying decision and behaviors
towards the Nike air presto 2019 shoe brand.
The company has segmented its market in a gender and age group to serve both the male and
female with age set of 15-55 years. The company market segmentation answers the users’ need.
With air presto shoe, it will market and focus on long racers and those individuals with interest in
exercise and fitness due to the lightness and comfort of the brand. The company has segmented
to serve its target users all over the globe. It has markets in Africa, Asia, Europe and the USA but
it has steady goals to serve other regions such as middle-east and Japan (Nike Inc, 2016).
Market research methods
The marketing research approach will comprise both primary and secondary data. The
company’s personnel will use both the survey and interviews during the major events to known
the level of customer engagement with the products (Harrison & Lock, 2017). The marketing

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team will acquire the relevant journals from the reputable organization, news media, and
corporation annual report data to draw its conclusion.
Internal market factors
Financial sustainability
The company prides itself for having a robust association with Apple iPod and also has a high
marketing budget. The company can advance innovative and original products in house with
lower risk. Also, the company is the leader in sport and apparel industry in terms of experiences
and innovation.
Mission, vision and organization culture
The business’s mission is to bring motivation and innovation to all athletes in the globe. Its
vision statement is to carry on the legacy of inventive thinking, whether to advance the brands
that assist the sportspersons at every level of capability to attain their potential or to build
business prospects that differentiate the firm from competitors. The company's culture entails
maintaining a reputation by creating a hugely committed workforce.
External market factors
Competition
The key competitors of the company are Adidas, Puma, and Reebok and their brand are not
wholly diverse from Nike’s merchandises, but the firm is having a unique and differentiation
competencies in the area of research and development, and marketing such as the launching of
the air presto brand. Nike has always created user brand awareness and has robust product
strength for an extended period (Porter, 2011).

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Political
Workers laws and rights significantly affect the company's internal processes. It has positive
regime approaches which back it in developing their growth opportunism, particularly in the
United States.
Economic
Due to the economic slump, users can be influenced, and it can minimize their confidence
towards the Nike brands. There is also a great peril of interest rate, currency and exchange rates
for the company's products.
Social
Health awareness and sport engagement will increase the demand for sporting gears. Increasing
the market share for the long distance runners for both male and female users can be an
opportunity for the company to sell the Nike air presto shoe.
Technological
Through the use of technology, it can create highly innovative products such as Nike air presto.
Also, it can generate a different website and mobile apps from which the clients can make an
online purchase through the new social media trends.
Business data
The company long term financial goals include future expansion and development by 2022. The
company plans to increase its profit annually by 10% (Nike Inc. 2016). It also plans to expand
its return on invested capital by 25% and upsurge earning per share growth annually. Finally, it
plans to increase its dividends yearly by 25% (Nike Inc. 2016). Assessing the above data, the
only way the company can achieve its long term goals is by innovation and aggressive
marketing. Therefore, the company can only make that by marketing its innovative product that
is Nike Air Presto 2019 shoe.

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Industry and Organization Factor Analysis
Status of the industry
In contemporary sporting gears, there is increasing marketing in the United States as matched to
other sectors. Products such as sporting merchandises are purchased through the virtual networks
and have significant development in the market share of the delivery channel. In spite of the
online channel, individuals also prefer to buy over the store outlet (Sporting Goods Industry -
Statistics & Facts, 2014).
SWOT analysis
Strengths Weaknesses
Strong distribution networks
Innovative shoe design such as Nike Air Presto
2019
Good position over its long term debt
Joint venture with Apple's iPod in its steady
innovation
Diversified product portfolio
Different targeted segments such as footwear,
baseball, basketball, and golf
Strong marketing promotions
Strong brand name
Transactions highly depend on the footwear
section
Offer a minimum wage rate to its employees
Deprived environments in some workstation
High prices matched with a close competitor
such as Adidas
Opportunities Threats
Support many market events such as FIFA and
Olympics
High rivalry from competitors who are
becoming aggressive and producing high-

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Developed brand such as sunglasses
Rising segmentation in the women athletes
quality products which are less-expensive
Economic fluctuation in currency
The readiness of sports organization
The company has a well-known international brand name as number one shoemaker. It will help
the company to sell the Nike air presto shoes due to its excellent user confidence. The company
also has a reliable distribution channel across North America, Europe, and Asia regions. The
chance of the users to innovative their shoe design online is a tremendous competitive edge for
the company. More importantly, secure financial status for the Nike, make it be a leader in
innovation and marketing on Nike air presto to the long distance runners (Sporting Goods
Industry - Statistics & Facts, 2014).
Economic conditions
As a result of an economic slump, the users are conscious of how they spend towards Nike
product. Also, the peril of the currency, exchange and interest rate for Nike's brand could be a
problem with the sales of the Nike air presto 2019. Finally, the labor and material cost affects
the company’s product sale.
Marketing Strategy
Product
Nike air presto shoes 2019 is insanely comfortable, light and mid-foot cage hold the foot quite
well. The presence of the heel loop makes it stress-free for on and off, which is the most
appreciated aspect of the Nike air presto. Another critical element is the ability of
personalization and customization which are available for the Nike air presto for both men and
women. Specific buyers like white brands due to its clean look while others want the black color