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Nike Media Plan 2020
Nike Media Plan 2020
Nike Situation Analysis Market Situation Analysis Nike, formerly known as “Blue Ribbon Sports” is a retail company specializing in clothing, shoes, and sports equipment. Blue Ribbon Sports was founded in Beaverton, Oregon in 1964 by Bill Bowerman and Phil Knight. It was not until 1978 that the company changed its name to the one recognized by people all around the world today, Nike. Operating 1,152 stores all around the globe, Nike’s main mission is to “bring inspiration and innovation to every athlete in the world” (Smithson, 2018). Nike claims its identity through its signatures, “swoosh” and “just do it,” both of which remain some of the best known slogans in marketing today. Having a vast target audience is one of the many ways Nike has been able to remain on top. Through advertising and strategies such as celebrity endorsements, Nike generated about “$36.4 billion in revenues in 2018 alone” (Parker, 2018). Nike has used its logo as a symbol of strength and dedication, one of the many reasons customers want its products. Nike prides itself not only in its diverse inventory, but also on the quality of its products. Through the strong brand identity created by Nike, it is able to stand above its competitors and remain at the top. Nike currently holds around 31% of global, athletic footwear sales (White et al., 2019). In the 2019 fiscal year, Nike made $39.117 billion, a 7.47% increase in revenue from 2018 (MacroTrends, 2019). The brand continues to follow an upward trend in regards to annual sales. Additionally, as of 2018, 70% of Nike customers plan to purchase additional Nike products (Sonenshine, 2018)
Nike’s Competitors One of the many things that set Nike apart from its competitors is its strong branding. By carrying a large inventory of clothing and shoes, the brand is able to keep customers both happy and loyal to the company. Nike’s ability to keep up with changing fashion trends is something it prides itself on and is key in such a competitive marketplace today. Designing products based on remarkable athletes is yet another reason Nike is considered to be the best of the best. Using influential athletes’ names such as “Michael Jordan” appeals to its customer base and creates the idea that purchasing Nike’s shoes will enable them to also be a star athlete, an area in which Nike’s competitors, Adidas and Asics, fall short. Nike has “close to $29 billion in revenue,” almost twice the amount of the brand’s biggest competitor, Adidas (Mourdoukoutas, 2018). Its other competitor, Asics’, total revenue for the same year was a mere “$386.7 million” (Asics Corp.). Another way Nike rises above its competitors is by being the official uniform provider
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Nike Media Plan 2020
of the NBA, a deal that the brand took from Adidas. Additionally, by owning Converse, Hurley, and the Jordan Brand, Nike is able to outshine Adidas who only owns one other company, Reebok.
Competitor Analysis: Adidas
Adidas is an apparel and accessories brand founded in Germany by entrepreneur, Adolf Dassier (Adidas Group, 2019). The brand’s marketing team bought the three stripe logo for 1600 euros from the Finnish athletic footwear brand, Karhu Sports. This widely recognized logo is now used on all the company's apparel (Adidas Group, 2019). Adidas is currently the largest sportswear brand in Europe and second-largest sportswear brand in the world with stores in 100 nations. The brand’s mission is to beat Nike and become the top sports company in the world. The corporation is the holding company for the Adidas Group which consists of the Reebok sportswear company, TaylorMade golf company/Ashworth, German football club Bayern Munich, and Runtastic (Adidas Group, 2019). The company also has 3 different groups within the brand: Y-3, Adidas Originals, and Adidas Performance, all focusing on different aspects of the brand and making Adidas what it is today (Adidas Group, 2019). The brand has over 900 million sports and sports lifestyle products with independent manufacturing partners worldwide and collaborations with well-known designers such as Alexander Wang, Raf Simons, Yohji Yamamoto, Kanye West, Pharrell Williams, and Stan Smith to create some of the company's most notable and coveted pieces (Adidas Group, 2019). In 2018, Adidas generated € 21.915 billion through sales of all types of different sport’s equipment. $153 million of that revenue goes towards investment into research and development (Adidas Group, 2019). Based on financial data, the brand’s sales and net income from continuing operations have increased $1.709 billion in the last 10 years without any net debt (Adidas Group, 2019). The brand has an operating margin of 10.8% and an average number of 201,759,012 worldwide shares (Adidas Group, 2019). Adidas has consistently impressed with innovative and high-profile celebrity partnerships. These include collaborations with Beyonce, Pharrell Williams and Kanye West (Mourdoukoutas, 2019). Footwear News, a well-respected source on the inside of the sneaker world, gave insight stating, “the right celebrity at the right moment in the right shoes can mean big things for emerging brands- and even established players” (Sutherline, 2018). This is exactly what Adidas does as a well established company. It reaches out to big name celebrities and smaller influencers alike to tap into the audiences that these people have already captured. A tag from a celebrity or an influencer wearing a new style is a new form of online shopping (Sutherline, 2018). Furthermore, Adidas is known for working with companies such as Bape and Run DMC to tap into popular culture (Mourdoukoutas, 2019) and inspire buzz around its products and company. Despite this PAGE 3
Nike Media Plan 2020
buzz, Nike consistently has beat Adidas in regards to Google Search Engine results (Mourdoukoutas, 2019). As of April 2019, Adidas pulled in 3.27 trillion search results while Nike topped the brand with 3.78 trillion results (Mourdoukoutas, 2019). While Nike reigns supreme in SEO (Search Engine Optimization), Adidas has outperformed the market in 2019 shares while Nike has remained in toe with the rest of the market (Mourdoukoutas, 2019), proving that Adidas is a serious competitor. Adidas markets on traditional and nontraditional platforms, including but not limited to TV ads, billboards, print, online ads, social media and email. Adidas’ marketing is fairly consistent in timing, a challenging yet important element for the brand (Budell, 2018). The brand values continual touchpoints and communication channels with consumers. In addition, like many of its competitors, Adidas launches campaigns around major sporting events. The Clio awards, an award for recognition in advertising, design and communication, awarded Adidas a Gold Winner for the Billie Jean King (BJK) “Your Shoes” campaign in 2019 (Clios, 2019). Billie Jean King was a female tennis player who upset male dominated sports and the tennis world by winning against a male player in a high profile match. The campaign focuses on the change Billie Jean King inspired and the pair of blue Adidas she wore for the duration of the match (Clios, 2019). The campaign video then showcases how the brand changed its most famous styles into Billie Jean King styles, BJK styles. The ad featured multiple Nike tennis shoes being spray painted and transformed into a representative item of the Adidas brand (Clios, 2019). At the United States Open, Adidas allowed any fans to change their shoes into this BJK style shoe (Clios, 2019). This showcases the continued competitive culture between Nike and Adidas, as well as the impressive, award winning advertising Adidas has produced.
Competitor Analysis: Asics
Asics came to the United States from Japan in the 1970s, around the same time of Nike’s founding. Built on a passion for a happy and healthy life, Asics is actually an acronym for the Latin, “Anima Sana In Corpore Sano,” which translates to, “A sound mind in a sound body” (Asics, 2019). Asics had the third highest sales of sneaker companies in 2018, following Nike and Adidas, with sales of $2.9 billion (Richter, 2019). Although not as popular as Nike for the everyday tennis-shoe-wearer, Asics has consistently been on top of the game in the running world. Having only been beat out by Brooks and New Balance, Asics has maintained its position in the top for many years now (Verry, 2019). Back in 2008, Asics decided to invest heavily in a television ad campaign. Spending $5 million of its $27.6 million budget, Asics focused its ads around the Olympics and cut spending in other media
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Nike Media Plan 2020
(Mullman, 2009). All this effort paid off as Asics was able to increase sales by 11% over the following year (Mullman, 2009). As one of Nike’s closest competitors, Asics uses different sources of media to compete in the shoe market. The brand implements its advertising of shoes on social media platforms like Instagram, Twitter, and Facebook. On these platforms, there are different Asics accounts for different countries to better relate to customers. For example, in one picture on Twitter for the Asics Australia page, the brand retweeted the Australian Women’s Cricket team winning and showing off the Asics logo on the team’s jersey. Also, there is an Asics Tiger USA, a newly promoted shoe, account for both Instagram and Twitter. Another successful campaign for Asics was one depicting how Asics shoes are versatile. In the 60 second ad, it showed a young couple moving a couch with their Asics gel shoes, maneuvering around and up the stairs (Sherwood, 2019). The ad is suggesting that these shoes can be used in a person’s daily life and are not just for running. Next, in regard to timing, Asics heavily promotes its shoes around the tennis U.S. Open that starts in August every year. As Asics is a major brand for tennis, the U.S. Open, a huge tennis tournament across the world, is a great opportunity for the brand to market. Keeping its tennis market in mind, Asics allows customers to practice the sport on a mini tennis court at its New York City store with the chance to earn prizes (Bell, 2019). Overall, Asics is aware of media being a huge aspect in attracting the public to its brand. The brand tries to improve and be competitive by showing its audience that its is not just a running shoe brand.
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Nike Media Plan 2020
Marketing Problems and Objectives Key Marketing Problem(s) As trends come and go in the ever changing fashion industry, Nike’s key marketing problem is to maintain its stance as the top athletic shoe brand by sustaining upward sales and positive market trends. This must all occur while staying true to its brand values. Marketing Objectives ❏ Nike will set an objective to hold 36% (a 5% increase) of all athletic shoe sales to not only increase revenue, but to push the brand to come up with more innovative ideas to ensure that this goal is met. This objective is in part derived from Nike’s mission statement: “to bring inspiration and innovation to every athlete in the world (Nike, 2019).” ❏ In addition to gaining a larger percentage of the athletic shoe market, Nike must continue its trend of increased annual revenue. To maintain its status at the top and promote innovation, Nike will set a marketing objective to reach $44 billion (a $5 billion increase) in the 2020 fiscal year. ❏ In order to maximize profits and continue its upward sales trends, Nike must also establish and maintain a loyal customer base. Repeat customers means increased profit. A loyal customer base is also more likely to recommend Nike products to a potential new buyer or encourage repeat brand purchasing. The brand’s goal must be to increase this number of Nike customers who plan to purchase from the company again to 80% (a 10% increase) by the end of the 2020 fiscal year.
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Nike Media Plan 2020
Media Objectives
❏ Generate social media impressions among 18-25 year-olds: It is crucial that Nike engages with the platforms young adults ages 18-25 utilize. This age group consists of both current consumers and potential customers. By connecting with this population at a young age, we can establish brand loyalty early throughout the U.S. population. According to The Pew Research Center, this audience heavily incorporates the internet and social media into daily routines (Smith & Anderson, 2019). Like the majority of Americans, this age demographic uses social media but consists disproportionately of heavy Snapchat and Instagram users (Smith & Anderson, 2019). Using a schedule pattern of flighting, we can maintain an ongoing presence in the lives of our target audience. The campaign peaks during the back to school and holiday seasons. ❏ Reach 50% of the target audience population: This campaign will focus on reach over frequency, ensuring that as many people as possible in our target demographic hear the brand’s message. Since our audience is very large, having a goal of 50% will ensure that purchases of the product can still be made. If half of our target audience, then being 14.5 million 18-25 year-olds (KKF 2017), is reached with our ads, the marketing funnel leading up to a point of purchase for a member of our audience still lends us to a large number of purchases. By reaching half of this audience, we are still reaching a large portion of the population and thus can ensure that a significant amount of purchases are made as a result of our advertisements and can maintain our goal of Nike being #1. ❏ Generate 12 million impressions from our 18-25 year old demographic with this campaign: According to Investopedia, the power of innovation can significantly increase a company’s market share (Kramer, 2019). Innovation can come in the form of new methods of advertising, the inclusion of impactful influencers, and targeting untapped markets. Nike can grow its market share using innovative methods as satisfied customers speak of their positive experience to friends and relatives who then become new customers (Kramer, 2019). One way of doing this is instituting an interactive billboard campaign. Many metropolitan cities have digital billboards along the sidewalks with city information and advertisements. Creating something interactive would be more engaging and meet our target audience where they already are - out and about. The more engagements with our advertisement, the more it will be shared and viewed. ❏ Advertise promotions drawing in 2,000 new customers aged 18-25: The focus of this campaign will be on reach, delivering Nike’s message to as many people as possible. By maximizing this reach and holding a national campaign, Nike is bound to reach people who are not current customers. The goal is to convert 2,000 18-25 year olds who are not current customers to avid buyers. By posting promotions, coupons, and discounts who view the campaign, we will blend online e-marketing and promotional marketing seamlessly. Combined, these methods will strengthen clientele allegiance and loyalty. PAGE 7
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Target Audience
Choosing the target audience: We chose the 18-25 year-old demographic for various, researched reasons. To begin broadly, millennials number 80 million, nearly 28% of the American population. The 18-25 year-old demographic makes up 29 million of this (KKF, 2019). This makes it the largest demographic in the country. Additionally, millenials have approximately $200 billion in spending power annually (Team, 2016). To improve upon sales numbers, it makes logical sense to target such a large percentage of the population. A study conducted by MONEY found that millennials tend to spend the most money in ten significant categories, athleisure brands being one of the ten. Forty-five percent of that athleisure market is millennials (Team, 2016). In addition to the significance of its buying power, the 18-25 year old demographic most closely models the same values and beliefs held by Nike. As seen with its advertisements featuring Colin Kaepernick, LGBTQ+ athletes like Megan Rapinoe, and hijabi athletes, the brand holds socially progressive views and tends to resonate best with our chosen demographic. Lastly, by choosing a younger generation, Nike is able to establish brand loyalty young. People tend to stick with the brands that are familiar to them (Aaker, 2017), and if they are purchasing Nike’s footwear at a young age, there is a better chance that they will continue to purchase from Nike as they grow older. The earlier brands can establish brand loyalty, the more money the company is able to make. As young adults are able to make their own decisions for the first time, we must ensure that they are choosing Nike. Analysis of the target audience: In terms of basic demographics of our audience, 60% of this demographic is in college, around 49% of 18-24 year olds live with a parent and nearly 54% live in family households. Family is very important to many young adults (Mintel, 2011). This age group has a distinct lifestyle. Marriage is not as significant in the lives of the target demographic, but relationships with significant others are extremely important. This generation is also 36% more likely to be a part of volunteer organizations than other adults. Because much of this demographic is in college, members are 221% more likely than older adults to participate in school-sponsored clubs (Mintel, 2011). Knowing this information allows Nike to understand where it may be able to best reach this group. Perhaps targeting specific colleges, organizations, or clubs will be most beneficial to market directly to our desired audience. Lastly, it is important to note the significant social networking this group engages in. 18-25 year-olds have a vast online presence. They are very engaged on social media including platforms like Instagram, Snapchat, and Twitter. Survey results show that this demographic tends to have nearly twice as PAGE 8
Nike Media Plan 2020
many friends on social media as other adults. The networking extends beyond online social platforms. Much of this group participates in church groups, group charity work, sports teams, etc. (Mintel, 2011). Nike can capitalize on this because it is evident that a sense of community and connection are important to its target audience. Strategies such as influencer marketing, social media campaigns, and experiential marketing may resonate best with this group.
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Target Audience Measurements Audience measures: One audience measure used to determine 18-25 year-olds as our target audience was the index number. According to Inquisitr, adults 18-34 make up 30% of Nike’s customer base (Smith, 2018). People of the same age account for 28% of the total U.S. population (Team, 2016). Therefore, the index number for this group would be 107.14. According to Sissors and Baron, “the segment with the highest index number represents the best potential for usage” (Sissors & Baron, 2010). Because the index number is already high, this shows a history of success in advertising to this demographic. Nike can engage in a defensive strategy as it continues to market to this demographic. A second audience measure we used to determine millennials as our target audience is BDI. With 18-34 year-olds making up 43% of Nike’s customers (Smith, 2018), and millennials making up 28% of the U.S. population, the BDI would then be 153.6. Because Nike’s BDI among millennial customers is high, that means that the sales potential in this market is high. Another audience measure used to determine this age range as our target is CDI. According to an NYSE survey, 23% of millennials say they invest their money in sports brands/athleisure (Petro, 2019). Still accounting for 28% of the U.S. population, this would mean that the CDI for athleisure-wear among millennials is 82.1. The CDI helps us see the relative strengths of athleisure as an overall category, and although this might be particularly low, the high BDI accompanying this value is overall why we chose to stick with millennials as our target audience. Because Nike has a high BDI and low CDI among millennial buyers, they have a high share of the market and although the market itself should be monitored, they’re obviously doing something correctly right now. We are choosing to market toward 18-25 year-olds in the United States to maintain our position as the top brand. Nike is doing much better than its competitors in marketing toward millennials, so in order to keep its position at the top, it is a good option for the brand to engage in a defensive strategy. Market share value must also be considered. Many college students are influenced heavily with current fashion trends in today's society. A variety of adults use different kinds of social media and are influenced by many brands such as Nike. According to Sprout Social, 81% of 18-29 year-olds use Facebook, 64% use Instagram, 40% use Twitter and 68% use Snapchat (West, 2019). With a large presence of our target demographic on a variety of platforms, Nike can utilize this to share new, innovative ideas and stand out from competitors
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Nike Media Plan 2020
Strategies: Influencer Marketing
The first strategy that Nike should employ is influencer marketing. According to PMYB, a leading influencer marketing agency, this strategy is an effective method for resonating with the 18 to 25 year old demographic for two main reasons: a perceived sense of innovation compared to traditional advertising and the weight on the value of peer opinion (Tayla, 2019). This aligns well with Nike’s value of innovation and its earned media focus. In regards to generating impressions, social media is the way to go, especially when using influencer marketing. Not only does social media have the national reach that Nike is looking to attain, but more impressions can also be generated as users share content that they like. This leads into the value of peer opinion as well. As expressed by PMYB, 18 to 25 year olds are highly influenced by the opinion of their peers (Tayla, 2019). If someone were to share Nike’s promotional advertisement on his or her feed, the viewer would not only be exposed to the message more frequently, but he or she would also be more likely to engage with the advertisement, and perhaps even to buy a Nike product. This is because of that value of peer opinion. If the sharer perceives the Nike ad to be important enough to share, the viewer values that perception and thus is motivated to engage with the advertisement him or herself. This is why an influencer marketing strategy would be successful. This same mentality is present. People follow influencers because they admire them, look up to them, and/or value their opinions. If an influencer were to recommend a Nike product, this would get his or her followers to pay attention to the message and perhaps even act upon it in the form of sharing the message or buying the product. As Nike is an athletic brand, it makes sense that the company would choose athletes as brand ambassadors or influencers. Since Nike is also keen on being associated with innovation and progressivism, athletes who are quite literally changing the game are the best choice. This strategy has proven effective with the selection of athletes like Colin Kaepernick and Serena Williams for past advertisements. For this campaign, influencers for Nike to consider would be Michael Sam (the first openly gay NFL player), Venus Williams, LeBron James, etc. (Lazerretti, 2018). These athletes are all known for both their progresssive views and activism. Not only do they represent the same beliefs and values that Nike holds, but they are actively doing something about it – a nod to Nike’s slogan. By wearing or using the company’s products, they are endorsing and promoting Nike’s brand. Nike should also consider the use of young activists outside of the athletic industry who are making a difference in the world today. Again, PMYB emphasizes that 18-25 year olds value others’ opinions, especially those of their peers (Tayla, 2019). Seeing other 18-25 year olds who are making a difference in the world can establish a perceived similarity to the source and personal connection to the ad. Young activists who fall into this category, including those like Emma Gonzalez or Malala Yousafzai, must be considered (Pimentel, 2018). These individuals embody Nike’s “just do it” spirit. To achieve the highest level of engagement from potential customers, the selected influencer(s) should be featured on social media platforms including Instagram, Twitter, and Facebook. Instagram is PAGE 11
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particularly crucial as it is reported as the best platform for influencer marketing. This is likely due to its high levels of reported engagement. Hashoff conducted a survey of over 150,000 influencers; 91.9% of them reported Instagram as their favorite platform through which to share content. In a study conducted by Bloglovin, 59% of influencers said Instagram produced the highest levels of engagement from their fans compared to other platforms (Influencer Marketing Hub, 2019). Social media networks such as Twitter and Facebook should also be used as they allow for easy sharing of content, generating earned media for Nike. All three forms of social media have a vast reach with combined access to over a billion users and are used daily by nearly all American 18-25 year olds, the target audience. For this strategy, Nike will partner with two macro level influencers who will post content during the back-to-school months of August and September. This strategy achieves a national reach, key to hitting Nike’s marketing objectives.
Strategies: Native Advertising on Social Media
We want to use social media marketing for Nike, because social media is a helpful tool to reach the younger generation. 18 to 25 year-olds are part of Gen Z, the newest generation to be named and were born between 1995 and 2015. That generation lives and breathes social media, especially in a world where a WIFI connection has become as necessary as running water or electricity. Failing to engage with young people on social media platforms will put Nike at risk of its target audience leaving the brand behind. Social media marketing has a couple benefits such as investments, clearer for search and displaying advertising. With social media we would be constantly targeting our 18-25 year-old demographic group who is actively engaged or trying to buy. Using that platform to engage with them, will let them not only be aware of but also engage and purchase from Nike. Then when they do switch on and they’re ready to buy, Nike’s products and services become their obvious choice. According to Statista, North America has one of the highest social network penetration rates in the world. In the United States, 79 percent of the population had a social media profile (Statista, 2019). This places the United States as one of the countries with the largest social network user in the world. By 2023, the number of social network users in the United States is forecast to increase to approximately 257 million (Statista, 2019). Gen Z uses social media differently compared to other generations. They’re not on the same platforms, and actively try to avoid spending much time in the same places. If someone older, for example, their parents or grandparents are on Facebook all the time, they will not be. Media outlets that we are specifically using to reach 50% of the target audience population are Instagram and Twitter. Instagram is one of the most popular platforms for reaching younger people. Teenagers especially are avid Instagrammers. According to Statista, 59% of our target audience engage with this media outlet. Instagram appeals to Gen Z’s creative side and Nike can quickly capture millennials’ attention with stunning visuals. Instagram features stories which are also a great way to connect with younger users.“75% of Instagram users take action, such as visiting a website and purchasing from there, after looking at an Instagram advertising post” (Hootsuite 2019). Twitter, another media outlet that causes global online traffic, is one of Gen Z’s favorite social platforms. Twitter appeals to this demographic because the information on the feed is always up to date, newsworthy and it’s a great platform for word of mouth. With the most-followed people on that media PAGE 12
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outlet being artists and musicians that Gen Z listen to, that shows a good indication of the demographic engaging with the medium. Also, according to a Pew Research Centre survey in 2019, they reported 78% of 18 to 24 year-olds used Twitter, many of them multiple times a day (Pew Research Center, 2019). Since the focus is on reach, this media platform will easily spark conversation and generate shared media. Twitter in the past is particularly a relevant platform for progressive ad campaigns that grab the audience's attention and political activism trending topics. These social media outlets will focus on reach over frequency, ensuring that as many people in our target demographic hear the brand’s message as much possible. This is beneficial because Instagram and Twitter have a national reach and can reach the target audience where they already are on social media. To stand out from the competitors on social media, Nike will use native advertising on their Instagram and Twitter. According to ExactDrive, consumers are 25% more likely to look at native advertisements, but they are also 53% more likely to engage with that advertisement in a positive and potentially profitable way (Parikh, 2016). Native advertising will be more engaging for our ads and that will lead to more shares and views which leads to brand awareness. That is why we will have 3 native ads on Instagram and 3 native ads on Twitter. Based on our media objectives, we would tell the buyer to purchase 6 million reach in the 18-25 year-old age range. These will be implemented in the months of August through September 2020 throughout the United States to build a relationship with the target audience.
Strategies: National Network TV 30 Second Advertising Spots (Prime Time)
The third strategy, and most impactful, that Nike should employe is prime time 30 second advertising spots on a national network. TV is the most effective media persuasion technique because it’s a platform that uses both sight and hearing; we can connect with our target audience and help achieve our goal amount of impressions. Television allows the presentation of the product both visually and audibly, with advertisements that will intrigue young target consumers. Television is known for gathering a captive audience (Rush, 2019). Even if only for a short amount of time, an advertisement has the spotlight in the gaze of the audience, with few distractions (Rush, 2019). With prime time advertising spots, the audience is generally locked into the television for the program they are enjoying, and the advertisement becomes intrinsically part of that experience. AdWeek compares television to a megaphone; an incredibly powerful means to get a message out (Lynch, 2015). Among the advantages of TV, advertising is the opportunity to reach mass audiences with a single ad spot. According to AdWeek and MarketShare, research found that among all media outlets, television has the highest efficiency at achieving high performance. This means television averaged four times the sales increase compared to digital (Jasonlynch, 2015). Studies show that after viewing a television advertisement, 60% of consumers are likely to purchase that item. This is compared to a 40% return that relates to online advertising (Rush, 2019). Furthermore, television advertisement allows Nike to tell a longer story. With the goal of continuing relevance in the political sphere, television allows the organization to capture the attention of our 18-25 young adult audience for a longer duration. For example, the 2018 Nike ads featuring Colin Kaepernick PAGE 13
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swept the nation creating more publicity for Nike. By using prime time coverage, we are also able to capture the attention of our audience for longer periods of time. With advertising, such as online, viewers tend to only see the content for 30 seconds, whereas in TV advertising viewers are exposed to longer ads, thus making them more likely to remember the brand. TV advertisements take more time, resources and money to produce and share (Rush, 2019), and because of this, consumers trust it above other mediums (Rush, 2019). It is more sophisticated due to its dual simulation of senses (Rush, 2019). It also is known for being more realistic and vetted compared to other advertising mediums. Whether focusing on political centered advertisement or more traditional creative ideas, the medium of television will be highly trusted by our target audience consumers aged 18-25. In order to best reach our target audience, Nike will play its advertisements on shows with high viewership from this public and a national reach. Thirty second prime time ad spots will be purchased throughout the season on The Bachelor (24 episodes) and for the National Championship of college football.
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Sainsbury Formula for Social Media and Influencer Marketing Reach = a + b - (ab) There are roughly 29 million 18-25 year olds in the US (KFF, 2017). We intend for there to be 6 million impressions on social media (a) and 3 million through influencer marketing (b) To find a → 6 million/ 29 million = .207 To find b → 3 million/ 29 million = .103 Reach of social media and influencer marketing = a + b - (ab) = .207 + .103 - (.207x.103) = .207 + .103 - .021 = .289 or 28.9% Our goal is to reach 50% and our social media strategy plus our influencer marketing strategy (without TV) already hits 28.9% Frequency = GRPs / reach 5 posts for influencer marketing (during the back to school period) 12 posts for social media (roughly one ad each month) Influencer marketing: reach x frequency = GRP = 10 x 5 = 50 GRPs Social media: reach x frequency = GRP = 21 x 12 = 252 GRPs Frequency = GRPs/ reach = 302/ 29 = 10.4 We will reach our intended audience an average of 10.4 times over the course of the year.
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Flowchart Nike’s budget follows a flighting pattern for the 2020 marketing campaign, specifically during the back to school period, holiday season, and during select tv programs.
Month (2020)
Influencer Marketing
Social Media
30 Second TV Spots
January
$0 (0%)
$0 (0%)
$3,144,120 (82%)
February
$0 (0%)
$0 (0%)
$344,120 (9%)
March
$0 (0%)
$0 (0%)
$344,120 (9%)
April
$0 (0%)
$0 (0%)
$0 (0%)
May
$0 (0%)
$0 (0%)
$0 (0%)
June
$0 (0%)
$0 (0%)
$0 (0%)
July
$0 (0%)
$125,000 (4%)
$0 (0%)
August
$900,000 (45%)
$1,772,500 (59%)
$0 (0%)
September
$900,000 (45%)
$1,102,500 (37%)
$0 (0%)
October
$20,000 (1%)
$0 (0%)
$0 (0%)
November
$90,000 (4.5%)
$0 (0%)
$0 (0%)
December
$90,000 (4.5%)
$0 (0%)
$0 (0%)
$3 million
$3.8 million
Total: $8.8 million $2 million
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Nike Media Plan 2020
Budget: $10 Million Influencer Marketing Budget: $2 Million Nike is looking to work with two macro influencers: major athletes and/or social justice warriors that resonate with the target 18-25 year old demographic. These high profile influencers are going to be costly. The 2 million dollars will be spent heavily during the peak, back-to-school months of August and September. The reach of this strategy is national, so focus will not be placed on any specific geographic area, however the budget will be most divided by time period. Budget Calendar: ● January 2020 - July 2020: 0% of budget, $0 ○ No money will be spent during these months on this strategy. ● August 2020 - September 2020: 90% of budget, $1.8 million ○ The money spent during this peak period will be spent on paying the influencers to create content on behalf of Nike and promoting these posts on the social platforms selected: Twitter, Instagram, and Facebook ● October 2020 - December 2020: 10% of budget, $.2 million ○ The money spent during these last months of the campaign can be used to continue to promote these posts on our selected social platforms, particularly through the holiday season: late October through late December. Social Media Budget: $3 Million During the peak of back-to-school months from July to September, Nike plans to buy social media advertisements on Twitter and Instagram. In July, Nike will start advertising on Instagram with native ads, a great way to remind people about back to school shopping. A good portion of the US starts back to school shopping in mid-July. In August, Nike will sponsor promoted hashtags on Twitter and continue native ads on Instagram. Nike will be spending the majority of the social media budget that month because it’s National Back to School Month, motivating people to start/continue their back-to-school shopping and get excited overall. In September, Nike will plan to continue both tactics but at a slower rate, as the majority of the target audience will already be in school.Both tactics have a national reach and meet the target demographic on the platforms where they are already active. Budget Calendar: PAGE 17
Nike Media Plan 2020
● January 2020- June 2020: 0% of budget, $0 ○ No money will be spent during these months of this strategy. ● July 2020- September 2020: 100% of budget, $3 million ○ Three million dollars will be spent on social media advertisements. $1.5 million will be spent on promoted hashtags on Twitter and the other half will be spent on native ads on Instagram. $750,000 will be used to buy sponsored hashtags on Twitter at the beginning of the campaign which will be in July. The reason we decided to start with July on Twitter is to reach a broad, national audience and because our target audience begin shopping for back-to-school supplies several weeks before school starts. The remaining $2.25 million will be evenly split between the back-to-school months of July and August and September and then evenly split between Twitter and Instagram. ● October 2020- December 2020: 0% of budget, $0 ○ No money will be spent during these months of this strategy. National TV Budget: $5 Million Nike is pursuing strategic advertisement through the platform of Television. With 30-second prime-time television spots relating directly to the programs our target audience, young adults aged 18-25, are nationally tuned into. The budget is primarily divided by time period, with the geographic coverage being a national sphere. Budget Calendar: ● January 2020: 82%, $3,144,120 ○ The regular aired episodes of the television program The Bachelor will have 2 30-second prime-time spots per episode. This is 8 episodes in the month of January. The total being $344,120. ○ Furthermore, The National Football Championship is aired during this month. Nike plans to have an ad spend of $2.8 million on the total of 2 30-second ads. ○ In total, this comes to $3,144,120. ● February 2020-March 2020: 18%, $688,240 ○ The regular aired episodes of the television program The Bachelor will have 2 30-second prime-time spots per episode. This is 8 episodes in the month of February and 8 episodes in the month of March; 16 total episodes. The total spend being $688,240. ● April 2020 - December 2020: 0% of budget, $0 ○ No money will be spent during these months on this strategy.
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Nike Media Plan 2020
Works Cited Aaker, D. (2017, January 1). The drivers of brand loyalty may surprise you. Retrieved from https://www.ama.org/marketing-news/the-drivers-of-brand-loyalty-may-surprise-you/ About Asics. (2019). About ASICS. Retrieved from https://www.asics.com/us/en-us/about ASICS Corp. (2019, September 10). Retrieved from https://asia.nikkei.com/Companies/ASICS-Corp Adidas-Strategy Overview (n.d.). Adidas group. Retrieved https://www.adidas-group.com/en/group/strategy-overview/ Anderson, G. (2017, October 26). 5 objectives to integrate into your social media marketing strategy. Retrieved from https://blog.digimind.com/en/insight-driven-marketing/5-objectives-to-integrate-into-your-social-media-marketing-st rategy Asics. (2019). Retrieved from https://www.owler.com/company/asics Barrabi, T. (2016, January 11). The Business Of College Football's National Championship. Retrieved from https://www.foxbusiness.com/features/the-business-of-college-footballs-national-championship. Bell, J. (2019, August 15). US Open preview: Adidas, K-Swiss & other brands gear up with special product & retail events. Retrieved from https://footwearnews.com/2019/focus/athletic-outdoor/us-open-preview-adidas-fila-asics-sneakers-store-events-120 2817047/ Budell, K. (2018, September). How collaborative marketing and insights helped Adidas tell stronger stories. Retrieved from https://www.thinkwithgoogle.com/marketing-resources/experience-design/adidas-marketing-collaboration/ CIRCLE (2018, November 7). Young people favor democratic house candidates by historic margin, data continue to suggest high youth participation for a midterm. Retrieved from https://civicyouth.org/young-people-favor-democratic-house-candidates-by-historic-margin-data-continue-to-suggesthigh-youth-participation-for-a-midterm/. Cohn, D. V. (2016, June 23). Minority babies (barely) the majority among U.S. infants. Retrieved from https://www.pewresearch.org/fact-tank/2016/06/23/its-official-minority-babies-are-the-majority-among-the-nations -infants-but-only-just/) Consoli, J. (2017, December 29). Buyers Optimistic About New Year's Day College Football Playoff Viewership. Retrieved from https://www.broadcastingcable.com/news/buyers-optimistic-about-new-year-s-day-college-football-playoff-viewershi p-170834. Clios. (2019). Adidas - Billie Jean King your shoes. Retrieved from https://clios.com/awards/winner/branded-content/adidas/billie-jean-king-your-shoes-67783 Dehnart, A. D. A. (2018, October 9). How much ads cost for network reality shows: The Voice, Bachelor, Survivor, Idol, and more. Retrieved from https://www.realityblurred.com/realitytv/2018/10/network-reality-show-advertising-rates Gordon, K. (2019, March 18). Social media usage in the United States - statistics and facts. Retrieved from www.statista.com/topics/3196/social-media-usage-in-the-united-states/ Gleeson, S., & Perez, A. J. (2018, January 10). Alabama-Georgia title game scores big audience for ESPN. Retrieved from https://www.usatoday.com/story/sports/ncaaf/2018/01/09/alabama-georgia-title-game-scores-big-rating-espn/1016 621001/. Kaiser Family Foundation. (2017). Population distribution by age. Retrieved from https://www.kff.org/other/state-indicator/distribution-by-age/?dataView=1¤tTimeframe=0&sortModel=%7B% 22colId%22:%22Location%22,%22sort%22:%22asc%22%7D Kramer, L. (2017, July 7). What strategies do companies employ to increase market share?
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Retrieved from https://www.investopedia.com/ask/answers/031815/what-strategies-do-companies-employ-increase-market-share.as p Lazerretti, C. (2018, October 12). Athlete activists who changed the world. Retrieved from https://www.stadiumtalk.com/s/most-influential-athlete-activists-changed-society-cfd0aedd8cf9428f Lynch, J. (2015, June 9). Why TV is still the most effective advertising medium. Retrieved from https://www.adweek.com/tv-video/why-tv-still-most-effective-advertising-medium-165247/ MacroTrends. (2019). NIKE Revenue 2006-2019: NKE. Retrieved from https://www.macrotrends.net/stocks/charts/NKE/nike/revenue Martinez, G. (2018, September 10). Nike sales increase 31% after Kaepernick ad despite backlash. Retrieved from https://time.com/5390884/nike-sales-go-up-kaepernick-ad/ Mintel (2011). Social Dynamics of 18-24-year-olds. Report Mourdoukoutas, P. (2019, April 14). Adidas is beating Nike on Wall Street. Retrieved from https://www.forbes.com/sites/panosmourdoukoutas/2019/04/13/adidas-is-beating-nike/#34c527901150 Mullman, J. (2009, March 25). Sales jump 11% after Asics gives TV a try. Retrieved from https://adage.com/article/news/sales-jump-11-asics-tv-advertising-a/135527 Newberry, C. (2019, October 22). 37 Instagram statistics that matter to marketers in 2020. Retrieved from blog.hootsuite.com/instagram-statistics/ Nike. (2019). Read Nike's mission statement and find information about NIKE, Inc. innovation, sustainability, community impact and more. Retrieved from https://about.nike.com/ Parikh, A. (2016, March 31). 3 powerful benefits of native advertising. Retrieved from http://www.exactdrive.com/news/3-powerful-benefits-of-native-advertising Parker, M. G. (2018, July 24). Nike, Inc. . Retrieved from https://www.sec.gov/Archives/edgar/data/320187/000032018718000142/nke-5312018x1 0k.htm Pimentel, J. (2018, December 23). 20 young activists who are changing the world. Retrieved from https://www.complex.com/life/young-activists-who-are-changing-the-world/malala-yousafzai Petro, G. (2019, June 14). Nike, Adidas, Under Armour: Do millennials have the luxury of flexing for sport? Retrieved from https://www.forbes.com/sites/gregpetro/2019/06/14/nike-adidas-under-armour-do-millennials-have-the-luxury-of-fl exing-for-sport/#36e120b37d8d Rago, O. (2019, April 12). The average Instagram engagement rate is 4.7%. But can you do better? Retrieved from https://blog.iconosquare.com/average-instagram-engagement-rate/ Richter, F. (2019, May 15). Nike still on top of the sneaker world. Retrieved from https://www.statista.com/chart/13470/athletic-footwear-sales/ Rush, M. (2019, January 24). What are the benefits of advertising on TV ahead of any other medium? Retrieved from https://smallbusiness.chron.com/benefits-advertising-tv-ahead-other-medium-3585.html Sherwood, I. (2019, April 2). Forget specialized sneakers - Asics are the right shoe for ‘Everything’. Retrieved from https://adage.com/creativity/work/asics-shoe/2157546 Sissors, J.Z., & Baron, R.B. (2010). Advertising media planning. The McGraw-Hill Companies. Smith, A., & Anderson, M. (2019, April 17). Social media use 2018: Demographics and statistics. Retrieved from https://www.pewinternet.org/2018/03/01/social-media-use-in-2018/ Smith, T. (2018, September 6). Nike’s Colin Kaepernick ad makes sense after looking at customer demographics. Retrieved from https://www.inquisitr.com/5059602/nikes-colin-kaepernick-ad-makes-sense-after-looking-at-customer-demographic s/ Smithson, N. (2019, June 23). Nike Inc.'s mission statement & vision statement (An analysis). Retrieved from http://panmore.com/nike-inc-vision-statement-mission-statement
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Sonenshine, J. (2018, June 21). Nike is winning over new customers and it could 'dramatically increase prices' (NKE) Retrieved from https://markets.businessinsider.com/news/stocks/nike-stock-price-winning-customers-could-dramatically-increase-pr ices-2018-6-1027308709 Sutherlin, M. (2018, July 17). The 10 most valuable celebrity brand endorsers. Retrieved from https://footwearnews.com/2015/influencers/power-players/celebrity-brand-endorsements-shoes-fashion-photos-532 88/ Tayla. (2019, March 2). How to easily target the 18-25 year old demographic, locally, nationally and globally! Retrieved from https://pmyb.co.uk/easily-target-18-25-year-old-demographic-locally-nationally-globally/ Team, T. (2016, January 14). For athletic wear vendors, how athleisure can continue to grow by remaining "trendy". Retrieved from https://www.forbes.com/sites/greatspeculations/2016/01/14/for-athletic-wear-vendors-how-athleisure-can-continueto-grow-by-remaining-trendy/#4d532b935419 The beginner's guide to influencer marketing on Instagram. (2019, June 13). Retrieved from https://influencermarketinghub.com/the-beginners-guide-to-influencer-marketing-on-instagram/ “The Bachelor.” T he Bachelor (a Titles & Air Dates Guide), epguides.com/Bachelor/ The Bachelor TV Show on ABC: Ratings (Cancel or Season 24?). (2019, May 11). Retrieved from https://tvseriesfinale.com/tv-show/the-bachelor-season-23-ratings/ Top 10s: TV Ratings, Music, Video Games, Social. (n.d.). Retrieved from https://www.nielsen.com/us/en/top-ten/ US Census Bureau. (2019, June 18). Population and housing unit estimates tables. Retrieved from https://www.census.gov/programs-surveys/popest/data/tables.html Verry, P. (2019, March 12). How Asics plans to dominate the running market – again. Retrieved from https://footwearnews.com/2019/focus/athletic-outdoor/asics-running-sneakers-gel-cumulus-gel-nimbus-120275946 6/ West, C. (2019, February 5). Social media demographics to drive your brand’s online presence. Retrieved from https://sproutsocial.com/insights/new-social-media-demographics/#AllDemographics White, D. M., Sharma, G., Benjamin, S., & Patrick, C.(2019, March 22). Nike SWOT 2019: SWOT of Nike. Retrieved from https://bstrategyhub.com/swot-analysis-of-nike-nike-swot-analysis/ Wojcik, S., & Hughes, A. (2019, July 24). How Twitter users compare to the general public. Retrieved from www.pewresearch.org/internet/2019/04/24/sizing-up-twitter-users/
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