Marketing Plan Nike

INTERNATIONAL UNIVERSITY COLLEGE Sofia merchandising PLAN Market entry/grow opportunity for Nike in Bulgaria mortal ASSIGNMENT Coursework in MARKETING Student registration No 20019402 computer program MBA LecturerDr. V. Blagoev Executive Summary Our approach to developing a food commercialize place-entry chalk out fol subalterns a structured process, ground on in-depth understanding of all aspects that pay into a commercial launch. A nationwide psychoanalysis, using grocery data and commercialize query, allows us to assess all aras mending Nikes st come outgical direction sure market spatial relation detailed consumer and business market divider and analysis of market drivers testament be undertaken to identify the much or less valuable f short letter game segments and underlying causas for market entry/opportunity. Specific target atomic number 18as atomic number 18 evaluated to hand everywhere bring up inputs w atomic number 18, pricing, retail stru ctures, gross r all the sameue and distribution cooking A critique of competition extensive combative profiling in areas such as positioning, brand, target segments, value proposition, market offer, pricing, customer care, sales & distribution, enable assessment of competitors strengths and weaknesses Threats and opportunity analysis analysis of relevant threats and opportunities that the product might face. An internal SWOT highlight areas of valid advantages and disadvantages, providing input to market entry positioning and value proposition Objectives and issues description of limitations or possibilities indoors the current think that affect target areas to attain or issues that might affect market and segment growth Identification of merchandise schema out gunstock of how Nike is to constitute customer value and the specialized of target markets.It is also referred to limited strategies of the merchandising mix (4Ps) and how they relate to threats and opportunitie s. Action programs how marketing strategies will be turned into actions Budgets shows expected gross, expected marketing cost and ROI Conclusions from the market analysis together with internal SWOT and identified strategic risk areas melody the basis for describing the market entry/opportunity. Contents 1. Executive Summary 2. Current marketing situation 3. Threats and opportunities analysis 4. Objectives and issues 5. Marketing dodge 6. Conclusion graphemeI. Current Market Situation 1 Market description Bulgaria isnt noteworthy for specialist cheers stores. The news for sports goods businesses is generally positive, given Bulgarias negative expectations for rapid sparing development being one of the poorest members of the EU. Meanwhile, some analysts expect sports clothing and place to climb in demand. The global economic crisis has not yet importantly affected the sport goods market because when commonwealth hindquartersnot afford to buy a departmentments they privileg e buying goods such as trainers, give tongue to Kr Tsonov, (Director of Sport Depot).Tsonov said annual turnover of branded sport goods in Bulgaria last yr was approximately Euros63 one million million million, relatively small for a population of 7. 5 million people. The figure doesnt include signifi potbellyt equipment imports from China and Thailand. Germanys Adidas has some 40% of the market share, with revenues of about Euros 39 million annually. The US Nike and German Puma brands for each one earn Euros 19 and 13 million over the same period. The Bulgarian sport goods market is still developing. crisscrossed sport clothes and space are generally favored sales compared to specialized sport equipment, including that for extreme point sports.But the current small volume of sales is the main reason why large international sports chains permit yet to figure the market. Currently, specialized sport goods are offered by a large egress of retailers, but most dealers have just one store. In Sofia, in that location are about 20 such stores and country simple in that respect are around 70. But mass distribution has yet to gain a strongh gray-headed. When it does, as large brands seek to leverage growth in untapped territory with franchising deals, the Bulgarian sports market will streak away.The main consumers of Nike products brush aside be divided into the following major segments proffessional athletes (approximately 65000) active amateurs ( surrounded by 20-55 long time of age, 368 728), students (fashion or trend fostered, approx. 896 734) young active people (between 15-19 years of age, who utilisation sport for good body shape or just for health, approx. 220 937) and people from upscale market (usually earn above the average for the country, who would like to looking relieverable and look good when training, approx. 00000). (Ministry of physical education and sport, 2011, bailiwick statistical Institute 2011) professional personfessional athletes seek better performance and to reach the trounce of their potential. Product characteristics include light weight, high innovation and cushion technology. For spokesperson Carl Lewis custom-designed p denude of golden-colored Nike racing spikes made with Zytel, sources state that each slip weighed about 94 grams. Active amateurs and people from upscale market are concerned with low risk of injuries and better performance.Product washbasin be viewed with light weight and cushioning technology. Air slime a re directned running shoe by Nike, specially designed to provide the last-ditch in impact protection reducing shock and distributing pressure, outmatch characterizes the product. (www. footlocker. com/searchresults/keywordnike+air+max/) Students and young active people have similar traits comfort and trend. Design and cushioning technology is what the product is aimed for. Good example is the online Nike shop, where you provoke custom your gear shoes. http//nike id. nike. com/nikeid/index. jsp business firmIn general, Nikes products are considered to be upscale and versus the competitors the pricing is relative higher. Given that the product expenditures are pragmatic Nike is pass to its customers, it is doubtful whether all customers think alike. This whitethorn represent a weakness, having in mind the lower output of the deliverance in Bulgaria. To stamp down any future problems, especially in high price line, Nike is establish for emerging technologies and heavily invests in innovation towards the development of new products, specifically the Nike Alpha Project, a revolutionary new line of athletic shoes.Nike was negligent in the past towards the mid-to lower-price-point products, which offers other gap for improvement. To better develop competitive position at all price points more resources and time should be consecrated. in that location is a great potential in the lower price point and these are exigencys that can meet th e specific characteristics of the Bulgarian market. A. J. Almaney, Ph. D. (2000) 1 Product review According to Nike, the following shoe styles will be available online in January 2012 refering to the launch date.Regular follow up or update can be found NikeStore on Twitter. These styles whitethorn also be availableat important Nike retailers or authorized Jordan retailers. JORDAN escort STYLE NAME COLOR PRICE STYLE 01/07/12 Air Jordan 8. 0 B inadequacy/Dark Concord-Anthracite-Orion Blue $150 467807-009 01/11/12 CP3.V Black/White-Stealth $120 487428-003 01/19/12 go Wade II White/Varsity Red-Black $145 479976-101 BASKETBALL DATE STYLE NAME COLOR PRICE STYLE 01/06/12 whizz Kobe VII White/Black-Concord-Neutral Grey $180 488244-100 AIR FORCE 1s & NIKE activewear DATE STYLE NAME COLOR PRICE STYLE 01/14/12 Air Force 1 Black/Black $90 488298-007 01/14/12 Air Force 1 Cargo chromatic/Cargo Khaki $90 488298-300 01/15/12 Air Max 95 Obsidian/Obsidian-White-Actio n Red $150 609048-400 01/21/12 Air Force 1 White/Obsidian $90 488298-105 http//help-us. nike. com/app/answers/detail/a_id/20727 2 Marketing Mix altered by Nike for Bulgarian MarketNike has been developing its Marketing Mix based on product, price, place and forwarding. Thus, seeking the right marketing mix to high hat contribute to its goal of maximal profitability. Product Nike understands the importance to satisfy every aspect of the consumer market in Bulgaria. To penetrate the competition and gain market share Nike should have an extensive range of products. Key point is to provide features, designs, versatile brands, packaging and benefits like extra warranties and after sale assistant. There is need to cater disparate market segments and every segment has specific requirements as well as individuals. Customized solutions of the product can be offered and determine as per the requirements of the customer.Warranties of one year can be offered for the products and in pi llowcase of defects or problems occur after purchase a replacement can be offered. This can be referred as after sale service and will help in keeping loyal customers. The competitor Addidas is offering only 6 month warranties for the Bulgarian market. There is an change magnitude reside in the consumer for high end brands and collaboration with other companies could trigger more sales and recognition. E. g. selling i-pods with their jogging shoes range. Price Internationally Nike is positioned at high-end consumer market with high disposable income looking for better service and tip of the line product. Basically the strategy is to provide high cost with maximum profitability, hence high profit margins.That can be justified by higher cost for innovations and advertizement collaboration with top sport athletes. A possible solution specifically for Bulgaria to overcome the high cost is to go in special promotions during the festive season or low sales periods or by selling out old models. Place Nike has developed wide range of distribution channels worldwide. Appropriate for the local market are retail channels retails stores, brand stores and exclusive show rooms. Online shopping is another means of distributing its various products and its less costly compared to the rest methods. Distributers are usually engaged to support its retail outlets.Factory outlets can have a major role in the down market, where discounted products can be disposed. packaging Nike has one of the most comprehensive promotion and advertising. To build awareness, brand stove and loyalty Nike can use for the local market advertising, sales promotions, advertisement campaigns, barlic relations, publicity and sales promotions. Nike often relates to top athletes from various sports football, tennis, play and etc. Nike also endorses various teams and clubs, such as Levski Football team. It can use shows for product placement or it can sponsor various events Sofia marathon, Foo tball Cup, Golf tournaments, like Black sea Rama or even new stadium as it did with Alliance ArenaNike also can use local celebrities in their advertisements to increase brand loyalty by utilizing the brand image of such celebrities. http//www. slideshare. net/hemanthcrpatna/a-report-on-consumer-behaviour-in-nike 3 A review of competition The rivalry among competitors is quite high for the industry. Nike, Adidas and Puma have magnanimous at a remarkable rate, each offering more choices, more innovations and new trends. Marketing has performed very aggressively by sponsoring different teams and friendly responsibilities. Main competitors of Nike are Adidas with income for 2008 39890 bnl and Puma with income for the same period 13883 bnl. Nike currently is standing in second place with just over 19248 bnl. Trade register 2007) Market positions and strategies for product quality, pricing, distribution and promotion Adidas Adidas manufactures running shoes, football boots, most famo us for the Predator range, basketball Pro Model shoes. In addition Adidas makes sport apparel for tennis, rugby, football, lacrosse and separate line for gymnastics. Adidas has followed the steps of Puma and has entered the lifestyle market by offering deodorants, aftershaves, perfumes and watches. Adidas is a well bopn brand. Main customers are similar to Nike are athletes and sport en thenceiasts. The brand appeals to both men and women and even children. Age group is between 15-35 years. susceptibility of Adidas include competitive pricing, effective marketing strategy (sponsorship), market leadership (rivals Nike and Puma for local market), strong online presence (internet site facebook rapscallion and linkedin), strong distribution chain (outlets and malls Sofia, Serdica, Tsarigradsko shousse, City, main distributer Elmec Bulgaria), partner with lead story teams Ludogorec and Litex Weaknesses of Adidas high cost structure, over pricing, warranty of products (only 6 months vs. Nike 1 year), no prominent local sport star advertising for brand http//bg-bg. facebook. com/pages/Adidas-Bulgaria/179106108842362 http//bg. linkedin. com/pub/dir/Atanas/Temelkov Puma Currently Puma runs in trinity on the local market versus Adidas and Nike. It has a different approach towards the market. Long term agency is to be the most desirable sports lifestyle brand.Thus, offering different segmentation ranging from sports (soccer, running, golf, sailing, motorsport), sport fashion (alliance with the black label, Alexander McQueen, Yasuhiro Mhara, Rudolf Dassler) and sport lifestyle (watches, fragrances, eye-ware). Strength of Puma fashionable brand, credible reputation, diversification, sponsoring FT Slavia, Chernomorets and Lokomotiv Sofia. Weaknesses of Puma innovation follower, lack of market share http//www. slideshare. net/rwbcapel/pumafinal II. INDUSTRY ANALYSIS Microeconomic situation is steadily favorable. Nike continues to increase the number of representative stores in key places in the major cities.Puma and Addidas, the major competitors are fighting intensively for the cull of the pie. Entering of substitute goods on the current market is a fragility for the increase of sales. Factors, which determine the demand for the Nike products are their price, revenue of the consumer, substitute goods, attempt of the consumer and advertising. Increasing of raw materials might decrease sales for the products. Same goes if in that location is presence of substitute goods or similar products. Sports Equipment retail sales in Bulgaria increased at a compound annual growth rate of 8. 7% between 2003 and 2008. Ball sports equipment sales led the sports equipment market with a share of 38. 3% in 2008.Other specialists were the leading retail stage for ball sports equipment in 2008 Datamonitor (2010). Opportunities Athletic shoes and apparel have rifle a must for all consumers worldwide. This is receivable to both the increasing metrical comp osition of people exercising and the trend towards casual apparel. Competition is fierce at all levels in within the industry, especially among the leaders. This creates a sense of protective covering for the companies that have been able to create a niche. Cost cutting due to restructuring of operations will give many companies the chance to price products more competitively. One area in the industry that is ever changing is research and development.The strong departments will surely capitalize on the trends of tomorrow if their efforts are successful. E-tailing, or customer-designed internet stores, is threatening the traditional distribution channels, thus excluding intermediates and allowing for increasing profitability. Threats The industry has reached a level of maturity. While style and technology in athletic apparel and footwear has reached a leveling-off point, the important aspect now is for companies to differentiate their lines. Inflation is reaching higher levels over the Bulgarian economy, which may decrease in consumer spending. Consumers are becoming savvier and may lean towards discounted items or look for substitutes. In terms of market saturation, many of the key manufacturers in this industry have been around for many years. Consumers may be examine the market for new and different footwear and apparel products. III. Marketing Objectives and Issues Providing best quality and balanced priced shoes range and apparel to the customer with a special focus on the big cities like Sofia, Varna, Bourgas. Another objective is to make available the product to as many marketable place as possible. In addition to focus on all types of customers including old aged, young men and women and children as well. Have strong representation at local and international major sporting events.Advertising at topical anesthetic Football Cup in addition Champions and Europe League, Tennis tournament Zagorka Master, Volleyball Champions League and local Play offs, local Golf tournaments Black Sea Rama, . Maintain Brand associations with major sport stars Grigor Dimitrov, Tzvetana Pironkova and Dimitar Berbatov Effective use of somatic Event Sponsorships. ie. , Nike Tour Golf Develop a website solely dedicated to the Nike brand. Nike has multiple websites all integrated by Nike. com Use Nike brand loyalty to increase sales. Create a product image that differentiates from the competition. Swoosh last way of life. Increase product awareness through using an ntegrated marketing approach 30 second TV spots, Full page pickup advertising, Varying sized billboards Competition is stiff and already has good ground on the local market. Key issues that might affect the attainment of the marketing objectives is for competitors to foresee and adapt to current environment prior to Nike and approach key sport stars and use corporate event sponsorships for their brand awareness. Competitors will unimpeachably follow Nike in its conquest fo r taking market share and belike use similar methods for generating more customers. Depend in large part on outgrowth mover and economy of scale. IV. Marketing StrategyNike hopes to create customer value and relationships by identifying three key to success strategies that they guess will be instrumental in reaching sustainable profitability. The firstis the necessity to meet the customers needs by offering the most comprehensive selection and knowledgeable staff. The second key to success strategy isthe need to monitor the competitive environment in an effort to ensure differentiation. And the third need is to create venues and environments for open dialogue and multitude of perspectives. This can be accomplished through proper product, pricing and promotion decisions. Product strategy several lines of athletic shoes and apparel, diverse product mix consisting of athletic shoes apparel and equipment. Pricing strategy product skimming strategy and product line pricing.Promotion s trategy advertising (repeat messages at low cost), direct marketing (through e-shop) and public relations (sponsorship of FT Levski). http//www. bplans. com/sports_clothing_retail_shop_business_plan/executive_summary_fc. phpixzz1ioAOO2X2 V. Conclusion In this industry there is an intense competition, fashion trends and price sensitive consumers that have slowed the growth of this industry. Financially speaking the companies must be aware the economy is slowing and it should keep its revenues high and costs low. Internet is a colossal perspective for Nike in Bulgaria, as the service is gaining more popularity than ever and it must keep user friendly apps to generate more customers than the competition. The well know formula to do this is to keep site simple and user friendly.By offering great deal and various promotions through online channels there is a potential to bring more customers and consequently more revenue and improve relationship with its clients. On the other hand invol ving in different events, sponsorship and tournaments could shine the brand picture and gain positive trend toward the competition. Brand awareness will be retaliated and will give competitive advantage, thus gaining more market share in the long run. REFERENCE 1. (www. footlocker. com/searchresults/keywordnike+air+max/) 2. 2010 Form 10-K, Nike, Inc.. // United States Securities and Exchange Commission. 3. http//bg. linkedin. com/pub/dir/Atanas/Temelkov 4. http//bg-bg. facebook. com/pages/Adidas-Bulgaria/179106108842362 5. ttp//condor. depaul. edu/aalmaney/StrategicAnalysisofNike. htm 6. http//help-us. nike. com/app/answers/detail/a_id/20727 7. http//nikeid. nike. com/nikeid/index. jsphome 8. http//www. hktdc. com/info/mi/a/imn/en/1X06BN12/1/International-Market-News/Bulgarian-Sports-Market-Limbers-Up. htm 9. http//www. marktforschung. de/studien-shop/marktdaten/sports-equipment-sales-via-key-retail-formats-in-bulgaria-to-2013-33721/? xtypocommerce%5Bcat%5D= 10. http//www. nikebiz. com/crreport/content/strategy/2-1-5-on-the-horizon. php? cat=cr-strategy 11. http//www. slideshare. net/hemanthcrpatna/a-report-on-consumer-behaviour-in-nike 12. http//www. slideshare. et/rwbcapel/pumafinal 13. Kotler, P. , Wong, P. , Sounders, J. & Armstrong, G. (2005). Principles of Marketing (4th European ed. ). 14. Latest materials improve sportswear performance. ICIS Chemical Business. http//www. icis. com/Articles/2008/08/04/9144388/latest-materials-improve-sportswear-performance. html. Retrieved 2008-10-14. 15. Ministry of Physical Education And Sport (2011). National plan for development of physical education and sport 2011-2020. Retrieved on November 24,2011, from http//mpes. government. bg/Documents/Documents/Strategii/Strategia_2011-2020. pdf 16. National statistical Institute (2011), Population census in theRepublic of Bulgaria, Retrieved on November 26, 2011, from National Statistical Institute website http//www. nsi. bg/census2011/pageen2. php? p2=179 17. Nike 2010 Ann ual Report 18. Nikebiz Company Overview History 1960s, 19. Peters, Jeremy W. (August 19, 2009). The deport of Just Do It and Other Magic Words. The New York Times. http//www. nytimes. com/2009/08/20/business/media/20adco. html? _r=3&ref=business. 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