2 MARKETING PLAN FOR BRAND EXTENSION
Watsamonwan Jankham Kristina Akhrarova Angela Lin
3 CONTENTS
4 Executive Summary - 6 The Business - 8 Brand Extension - 24 Marketing Plan - 40 Marketing 4Ps - 70 Financial Plan - 94 Work Cited - 98
5 EXECUTIVE SUMMARY
6 Now, the quality of life has become very important for many people who care about their fitness and leisure time. Nike, which has been known about one of the biggest activewear brands all over the world, keeps announcing that exercise is the best way to keep healthy. Due to the red ocean of activewear market, Nike can use another way to enhance its overall business, bringing lifestyle into a real life by creating a space to connect customers and increase an in-store experience could pioneer an innovative business model.
By creating a lifestyle bar of Nike, it could increase the engagement of customers, making a difference from its competitors. Nike Bar will open every day from 8 am to 12 am, and these opening hours are not provided by its competitors. Nike Bar will be a space that people can spend their leisure time with their friends or individually, and fun entertainment, alcohol and healthy food will be offered.
However, fitness is not equivalent to alcohol. This will be a threat for Nike to affect its business value. Maintaining the atmosphere of the bar and keeping the environment positive and energetic would be a challenge for us. We believe that through Nike Bar, we can represent a new lifestyle for people that they can not only balance their daily duties but also enjoy lives.
7 8 THE BUSINESS
9 ABOUT NIKE
Nike, Inc. is a global leader in design, marketing and distribution of athletic footwear, apparel, equipment and accessories. The company's operating segments include North America, Western Europe, Central & Eastern Europe, Greater China, Japan and other emerging markets. They mainly market their products under their own brand, Nike, however their company's portfolio include subsidiaries such as the brand Jordan, Hurley International and Converse.
10 MISSION
Bring inspiration and innovation to every athlete* in the world.
(*If you have a body, you are an athlete.)
VISION
“ We create innovative, must-have products.
We build deep, personal connections with consumers.
We deliver an integrated marketplace with compelling retail experiences.”
11 HISTORY OF NIKE
NIKE founds as Blue Ribbon Sports. 1962
Officially becomes NIKE Inc. 1971
NIKE signs Micheal Jordan. 1984
The slogan "Just Do It" is coined. Portland It was inspired by serial killer, Gary Gilmore. 1988
First NikeTown outlet opens in Portland. 1990
NIKE begins and $8 billion stock buy-back program and employees more than 44,000 people worldwide. 2012
NIKE unvuils its biggest footwear and tech innovations. 2016
12 BUSINESS STRUCTURE
According to NIKE.com, NIKE sells its products to retail accounts, through NIKE-owned in-line, factory retail stores, NIKE-owned internet websites and mobile applications, and through a mix of independent distributors, licensees and sales representatives in virtually all countries around the world. Virtually all of their products are manufactured by independent contractors. Their sourcing strategy prioritizes and favors these suppliers that show demonstrable leadership in corporate responsibility and sustainability and who seek to move beyond minimum standards. NIKE has approximately 70,700 employees, and its revenue grows every year recently. The following chart is the growing revenue from 2014 to 2016.
30 20
Billions 10 2014 2015 2016 2017
MARK G. PARKER The Chairman of the Board of Directors of NIKE President and Chief Executive Officer and a director since 2006
Multiple brands and lines of Nike Company
13 TARGET CUSTOMER
Males and Females 15-40 years old
NIKE targets people who enjoy doing sport and activities. They are positive and confident, willing to challenge themselves and have goals in their life.
They hang out with friends and travel locally and abroad.
People care about good quality products at a reasonable price and care more about having experience about products.
14 CURRENT MARKETING STRATEGIES
- Sustainability - Innovative - High quality product - Fashionable and functional - Strong product portfolio
Nike distributes its products worldwide through different channels such as resellers, supermarkets, e-commerce sites, retailers, licensees and company-owned outlets.
Nike is the well-known brand globally and its association with the various sports events.
15 BRAND POSITIONING
The brand Nike has positioned itself in the minds of the consumer as a high-end product which is quite costly but the value for money with its service , quality and design.
16 CURRENT MARKETING MIX
PRODUCT
Nike focuses their products in ten key categories by function: Running, NIKE Basketball, The Jordan Brand, Football, Men’s Training, Women’s Training, Action Sports, Sportswear, Golf, Kidswear
Shoes $89.97 - $250.00
MEN Accessories & Equipment $3.00 - $429.00 Clothing $13.97 - $750.00
Shoes $54.97 - $250.00
WOMEN Accessories & Equipment $3.00 - $429.00 Clothing $12.97 - $700.00
Shoes $34.97 - $195.00
KIDS Accessories & Equipment $3.00 - $99.00 Clothing $9.97 - $230.00
17 PRICE
Nike provides trendy shoes at reasonable price in all its international stores as compared to other competing international brands, and odd pricing appeals to certain customer interests.
Shoes : $34.97 ~ $250.00 Clothing : $9.97 ~ $750.00 Accessories : $3.00 ~ $429.00
18 DISTRIBUTION
NIKE distributes its products through three major channels that is selling products to wholesalers in the United state and international markets, direct-to-consumer sales which include in line and factory retail outlets and e-commerce sales through www.nike.com. sales to global brand divisions.
NIKE has four types of stores: NIKE Brand factory stores NIKE Brand in-line stores (including employee-only stores) Converse stores (including factory stores) Hurley stores(including factory and employee stores)
United States Market : 384 stores Non-U.S. Retail Stores : 758 stores
19 PROMOTION
-Social Media Instagram, Facebook
-Discounts Sale online, Seasonal events, Clearance
-Loyalty Program Nikeplus Membership
-Advertisement TV, Youtube, Advertising board
20 CURRENT COMPETITION
DIRECT
STRENGTH : Adidas has an effective distribution system for their products available through different channels.
WEAKNESS : Limited budget allocation to advertisement.
STRENGTH : Low selling price than other competitors and Eco-friendly products.
WEAKNESS : Very short range of target market.
STRENGTH : Offer good product quality at affordable price.
WEAKNESS : New balance has limited market share growth because of global competitors.
INDIRECT
21 SWOT ANALYSIS
STRENGTHS -Market position with a strong brand portfolio. -Focus on R&D activities. -Multi-channel approach both online and physical as well as other channels. -Nike has a significant amount of brand equity in terms of recognition and appeal around the world tied to its status among celebrities and sports professionals.
WEAKNESSES -Dependence on independent contract manufacturers. -Increasing marketing and overhead operating expenses.
OPPORTUNITIES -Growing global footwear market. -Growing online retail channel.
THREATS -Growth in counterfeit products. -Intense competition.
22 COMPETITIVE ADVANTAGES AND COMPETENCIES
- Largest athletic clothing company in the world
- Comprehensive distribution channel
- Various categories provided to consumers
- Having famous and positive brand image
23 24 BRAND EXTENSION
25 THE CONCEPT & MARKETING OBJECTIVES
26 - Exposure to a new market which is food industry
- Increase brand awareness.
- Approach more customers rather than only customers who purchase apparel.
- Test extension of future goals. Ex Nike can collaborate with beverage industry to develop co-branded drinks.
- Provide a Nike lifestyle concept store.
- Increase profits by engaging potential customers to buy NIKE’s products.
- Announce that people can work hard and also enjoy their life, and also how to make their life healthier.
27 SITUATION ANALYSIS
28 MACRO ENVIRONMENT
POLITICAL
According to USA Today, bars are affected by the biggest political issue, which covers wage hikes and immigration laws. Bars have to compliance challenges, such as the Americans with Disability Act, mandatory health care, paid/unpaid leaves, tip allowances and union organizing.
According to U.S. Food & Drug Administration, bars should provide healthy nutrition due to strong political ideology, considering childhood obesity, diet-related diseases, food safety, menu labeling and allergen.
ECONOMIC
An average single person monthly costs is $1,184.49 without rent. Rent per month for Apartment (1 bedroom) in City Centre is $ 3, 323.87. Average Monthly Net Salary (after tax) is $4,973.90. These stable economic progress will provide customers’ solvency. Also, the State of California attracts hundreds of millions of visitors annually. The effects of travel and tourism on California’s economy are significant. This provide stable income and large turnover of customers per day. Nike Bar can attract different aged people and provide healthy service.
29 SOCIAL
Labor pool is growing in USA. Average living has become longer and it has caused paying more pension to their employees. Furthermore, a good social status means everything for modern corporations. Worldwide “health consciousness” idea is spreading fast and forces people to move towards better lifestyles. These people will definitely buy sports apparel for their routine sport procedures and eat health Nutrition because of zeitgeist of the time. As regards bars and cafes trends shift based on what customers want. This is pushed by governmental authorities and consumers. What can be seen is a rise in organic food. Vegetarian, vegan and pescatarian eating are becoming lifestyle choice of people. Health concerns forces people’s will to pay a premium price for healthy food. Also, people want to be more entertained in bars and cafes for increased stress level. People need to get joy not only from healthy food but also from associated activities and events.
TECHNOLOGICAL Technology gives the ability for companies to innovate and compete in many different ways. For example, interacting with customers to designing products, understanding their needs or eliminating weaknesses. Social media allows things to blow up or cut off faster than ever. Technology can create new products, services or social app, it keeps growing on daily basis. Also, Nike builds their brand through using social media. Hence, Nike gets
the opportunity to use valuable information to optimize targeting and production, and maximize revenue. Additionally, the new technology bar of the future can be done: Camera at the entrance with facial-detection algorithm, showing the current male-to-female ratio, average age, and level of activity. All can be seen in App on phone.
30 ENVIRONMENTAL
Environmental issues are on the ever-growing important track nowadays. This impacts on businesses significantly. Nike produces greener and more ethical products as compared with other products in the USA market. Their production are easier to recycle, and the solvent use of reduced by over 85% with competence to Adidas and other brands. This can reflect the environmentally friendly Nike Bar, where can be recycling packaging, low food and drinks waste and green building design. Environmental factors are important for the health consciousness clientele, such as drink organic smoothies or eat organic food, without harm for their health.
LEGAL Food Service License & Liquor License County health department issues Food Service License if a bar operates in accordance with all food safety regulations. Food Service License Cost : Range from $100 to $1000, depending on location and number of employees.
In order to serve alcoholic beverages, liquor license and a beer and wine license have to be obtained from the city government’s liquor control board. It can take more than month to complete the process with applying documents and the cost may vary.
Music License & Live Entertainment License Must have to avoid copyright infringement, including live/CD/streaming music and provide live events like concerts, dance, games, exhibitions or public show. Music fines (range from $750 to $30.000) can be received for playing copyrighted music without a license. Music License Cost: Rates depending on whether the music is live or recorded. For background music: between $250 and $500.
31 MICRO ENVIRONMENT
CURRENT INDUSTRY SIZE
According to the research from Nightlifesf.org, it said that nightlife establishments including restaurants and bars grew by 13% from 2010 to 2015.
INDUSTRY TRENDS
The Cafes industry is heating up as consumers become more interested in moderately priced, high-quality menu offerings. The industry has surged ahead and outperformed the overall food service sector, driven largely by changing consumer preferences.As operators add more stores and consumer awareness of this relatively new segment increases within the food sector, industry revenue is expected to rise.
GROWTH POTENTIAL
Nowadays, the bars and nightclubs industry in the US has experienced steady growth over the five years to 2018. While revenue experienced some volatility during the early half of the five-year period, as a result of shaky consumer confidence causing more people to drink at home rather than at bars or nightclubs, the industry is still expected to grow. Bar and nightclub operators have attempted to respond to volatile growth and increased competition by diversifying new concepts such as wine bars, cocktail lounges and brewpubs to attract new demographics. New operators are consistently entering the industry to satisfy new consumer trends. Customer who love sport activities may love hanging out with friend so, combination between sport brand and bar which offer fun activities, alcohol beverage and food might attract various customer and growth .
32 GEOGRAPHIC LOCATIONS
Downtown, San Francisco. There are so many bars and restaurants in downtown San Francisco area, and this area is full of both local people and travelers, so we can draw various demographic customer to our store. This following table is Industries in Downtown, San Francisco, California.
The highest number of industry in Downtown area is Hospitality which includes accommodation and food services. This is the reason why we choose this location for our brand extension stores.
33 INDUSTRY TRENDS
This past year also continued with more food and beverage transparency; including the use of more organic, sustainable, and locally sourced product. It also brought forth rising labor and overall operating costs, a substantial jump in online ordering and delivery options, and the increased importance of company culture, as well as, the focus on overall guest experiences. I think it can be challenging to navigate all of the different trend and focus on these core attributes; food, drink, operations, and concepts. Restaurants are develop open concept kitchens with a focus on take-out, while providing premium dining experiences at the bar or dining area, or offer eating experience. Restaurateurs and bars also continue to offer education from both the foods and service as part of the overall guest experience while providing more unique. According to the food and drink trends of 2017 by website of Sixty sport bar it said about other notables include: Food and Drink Trends that is 1. Data drives everything 2. Digital menus for everything 3. Off-premise service 4. High-end non-alcoholic drinks
SEASONALITY FACTORS
Sports season : October is the most exciting month for every single sports fan. 1. World Series and MLB playoffs 2. NBA and NHL seasons begin. 3. NFL is in full swing. 4. College basketball begins. 5. College football rivalry matches. 6. Soccer and their rivalry matches. In February, the two best football teams takes the stage and battle it out for the Lombardi trophy. In February there is 1. The Super Bowl. 2. NBA All-Star Game. 3. NHL season continues to gain steam after their All-Star break. In June is the month where the NBA Finals take place. In these time, people always go to sport bars to enjoy cheering their favourite games.
34 PROFIT CHARACTERISTICS
In cafe and restaurant business, success can be addicting and a coffee business owner is always tempted to grow or develop their business into something more. Having the freedom to express the store and put creativity through the coffee business is another great benefit. The growing market of people who enjoy espresso based drinks is increasing – and continues to remain a growing industry. So, providing a welcoming social space for people in your community is really good way to do. Creating a worthy brand, quality customer service, and a community hot spot that people love to visit, the store can build a lasting business that grows and evolves over time. One of the best ways to keep regulars coming back to the store is to recognize and reward customers for their loyalty, from simple the employee acts like remembering their name and favorite meal or offer the best service. Social media has become a big part of the dining experience as well.
DISTRIBUTION CHANNELS
According to GISLOUNGE, commercial coffee cultivation is primarily restricted to the tropical belt around the equator, specifically the area between the Tropic of Cancer and the Tropic of Capricorn, such as Indonesia, Brazil, Vietnam, Republic of Congo and Colombia. Then beans are sent by suppiers to North America, Australia, Europe and Brazil where lots of people cunsume coffee.
35 BASIS OF COMPETITION AND LEADERS IN THE INDUSTRY
Starbucks: This coffee house has over 21,000 shops all over the world. Starbucks is the leader in the coffee market. They have product diversification and they have 16,635 stores worldwide, including 11,068 in the U.S. Starbuck have high brand equity, financial conditions of the company are good,convenient locations like library, shopping malls and customer service is excellent. Starbuck also have high brand awareness, customer base loyalty and good relationships with suppliers.
Blue Bottle Coffee, Inc. is a coffee roaster and retailer headquartered in Oakland, California, United States. The company operated 29 stores in 2016, and it anticipates having more than 50 cafes open by end of 2017. It provides high quality of coffee and a comfortable environment for customers.
In successful bars and restaurants they always has an environment that matches the food it is serving and the customers it attracts. A restaurant that focuses on selling upscale food should create an environment of dim lights, soft music and high-quality items, such as wineglasses and well-cushioned booths. They employ managers and employees who perform at a high level and work to accomplish the restaurant’s goals. They also offer food related a restaurant’s environment, mimic its intended style. Successful restaurants consistently serve fresh food that is exactly as described on the menu.
TRENDS AND CHARACTERISTICS OF THE INDUSTRY
More and more people have been tech savvy, so it would be good for customers and the company to have a system that makes consumption and management of employees easier. Innovative drinks made of organic or healthy fruits and vegetables will be a special selling point due to more and more people putting a huge value of their life quality.
36 CONSUMER RESEARCH
According to QUORA, there are some ways to make a coffee shop attractive to its potential customers. Nice coffee smell appeals to a potential customer's olfactory sensors. Don't create barriers like a closed door or cluttered entry. Create a busy atmosphere of visuals and noise but be comfortable to work in that place.
Turning to bars, according to GOURMET, there are some ways to appeal to customers to engage it. Name drinks and beverages after athletes. Host replays of classic games during slow periods when local teams aren’t competing. Host live events where athletes appear and hang out with your customers. Offer drink and food specials during classic athletic rivalries and playoff games.
According to GOURMET, customers will also be attracted by social media and bar games, such as: Classic tournaments like pinball, video games, darts, and board games Hosting karaoke, bingo or trivia contests Interactive social media games Poker nights Dancing games and contests Encouraging vintage dress for throwback nights Classic bar promotions like hosting ladies’ or singles’ nights
37 STRATEGIC DECISIONS
38 JUSTIFICATION
According to the research we did and from PESTEL technological, we set up some points to achieve our marketing objectives.
- We will build an app that makes consumption easier. (Online instore order)
- Finding healthy protein drinks and smoothies and low-calories beers achieves healthier lifestyle.
- Providing a place that people can work hard and also enjoy their life through the cafe for working and the bar for having fun.
39 40 MARKETING PLAN
41 BRAND OVERVIEW
42 BRAND DESCRIPTION
Regarding as more and more people putting a huge value on the quality of life, we are going to provide a concept store,NIKE BAR, to offer an environment for them to enjoy their life.
NIKE BAR is a chill place providing entertainment and caring people’s health.
People not only can hang out with friends but also have healthy food and drinks in NIKE BAR.
NIKE BAR is for energetic and productive people who are working hard and heath-concious, but also enjoy spending time with friends in a casual atmosphere.
NIKE BAR conveys a new lifestyle.
43 MISSION
Bring a new experience of hanging out with friends and create a productive lifestyle to everyone who is health-conscious, and who loves Nike.
VALUES
Our value is to provide an environment where everyone can work hard, relax and enjoy themselves.
A new lifestyle that enables people to balance themselves between career and leisure time.
44 UNIQUE SELLING POINTS
- Business hours are from 8 am to 12 am, which hours are not provided by our competitors
- New experience and customer service: Through Nike Bar, people can be Nike’s customers without purchasing its apparel and footwear.
- Maitaining healthy and having fun at the same time: Not only providing drinks and food, such as organic coffee, protein smoothies, light salad, and low calories beers and special cocktails, but also offering a chill environment, proving a space for work, hanging out with friends, and enjoying life.
45 BRANDING
46 BRAND CONCEPT STATEMENT
47 BRAND CONCEPT BOARD
48 BRAND IDENTITY
49 BRANDING MATERIALS
50 IN STORE MATERIALS
- Big Screen
- Football table
- Pool table
- Baketball Machine
51 TARGET CUSTOMER PROFILE
52 SEGMENTING AND TARGETING
According to our consumer research, people like fun activities and a good en- vironment. Nike Bar welcomes 3 target markets, which consist of active, positive and social people, such as Baby boomers, Generation X, Millennials and Generation Z. These people are sport addicted and have health-conscious lifestyles. They are wealthy and want have more fun experience in life. They enjoy hanging out with friends and spend time with pleasure by playing active games. They are not alcohol addicted but prefer to drink a glass of wine from time to time with their peers. They consume organic food and quality drinks. Their work occupation varies but they have common sportive and active spirits. They live in or visit San Francisco. They use social media. And they are aware of Nike brand in general.
53 PRIMARY
DEMOGRAPHIC BEHAVIORAL CHARACTERISTICS -Millennials (1980-2000) -Emotional -$40.000 + -Positive -Social -Rational -Active
BRAND RELATIONS GEOGRAPHIC -Customers of Nike’s competitors -Urban city -Brand awareness and loyalty -Satisfaction PSYCHOGRAPHIC -Love/Passion -Health consciousness -Sports games lovers MEDIA RELATIONS -Contribute to arts organizations -Sponsored events with celebrities -Spend money on dining out and traveling. -Internet platform promotional campaigns -Enjoy sports such as jogging/running, biking, tennis, -Community engagement soccer, skiing, yoga, and pilates -Post announcement on Facebook, Instagram, -Leisure activities are painting, reading newspaper, going to bars/clubs, beach, art galleries -Music Nantes are classic rock, pop, jazz, blues, folk -Favor organic food, purchasing groceries at higher-end markets.
54 55 SECONDARY
DEMOGRAPHIC BEHAVIORAL CHARACTERISTICS -Generation X (1965-1979) -Positive -$40,000 + -Social -Rational GEOGRAPHIC -Active -Urban city BRAND RELATIONS PSYCHOGRAPHIC -Customers of Nike’s competitors -Health consciousness -Brand awareness -Sportive -Satisfaction -Spend money on dining out and traveling -Music Nantes are classic, rock, jazz, blues MEDIA RELATIONS -Purchasing groceries at higher-end markets -Sponsored events with celebrities -Community engagement -Send direct messages on personal e-mail, send direct printed mail, Facebook, Yelp, personal e-mail.
56 57 TERTIARY
DEMOGRAPHIC BEHAVIORAL CHARACTERISTICS -Tourists, Generation X, Millennials, -Positive Generation Z -Social -$40.000 + -Rational -Active GEOGRAPHIC -International BRAND RELATIONS -Customers of Nike’s competitors PSYCHOGRAPHIC -Brand awareness -Health consciousness -Satisfaction -Sportive -Active MEDIA RELATIONS -Purchasing groceries at higher-end markets -Sponsored events with celebrities -Community engagement -Post announcement in magazines, journals, send direct printed mail, personal e-mail, Facebook, Instagram, Yelp, personal e-mail.
58 59 COMPETITOR ANALYSIS
60 BASIS OF COMPETITORS
Nike Bar has competitors who cover the same market by providing either organic nutrition and drinks or sport entertainment facilities in greatest variety and assortment for millennials, generation X, generation Z and random tourists.
61 SPIN
This is a social sport club, which provides wide range of food and drinks, but the most striking feature of this bar is a big game hall with ping pong tables. Age limit.
Product Price Wide range of alcohol drinks $$ Tasty restaurant food
Place Promotion Brick and mortar bar, Soma Advertising: social media
Sales promotions: 2 drinks + 1 free Direct marketing: Email, phone message
62 THE PLANT CAFE ORGANIC
Day time restaurant, which serves 100% organic food and drinks, very good for breakfast and lunch. No age limit. Close for weekend.
Product Price Organic food and drinks $$
Promotion Place Advertising: Social media Downtown, rest of the city Direct marketing: Email, phone message
63 JOE & JUICE
Day time Juice bar provides tasty food and drinks during day time. Excellent for breakfast and lunch. No age limit.
Product Price Food $ Non alcohol smoothie Shakes Drinks
Place Promotion Brick and mortar cafe, downtown Advertising: Social media
64 HEYDAY ORGANIC
At HEYDAY os healthy eating and delicious food, while supporting our community and respecting the Earth. Morning and daytime place to have lunch. No age limit.
Product Price 100% organic produce Affordable price point Whole grains and Vital proteins
Place Promotion Brick-n-mortar cafe, Embarcadero Advertising: Social media Direct marketing: Email, phone messaging
65 SWOT ANALYSIS
STRENGTHS -Healthy foods and drinks offering -Various fun activities and entertainment -Offer good service from the morning to late night -New and cool place for hanging out -Offer good environment and atmosphere for everyone -Unique and exceptional place
WEAKNESSES -Maintaining sport machines -Few choice of alcohols when compare with other sportsbars around located area -Lack of food and drink industry experience
OPPORTUNITIES -Nike brand image expansion -Bringing potential larger target customer for Nike -New facilities could create a new market area for customer who into sport activities or enjoy hanging out
THREATS -Local competition which offer similar activities and products -Possibility of failure -High production cost -Expensive bars and restaurant license -High place rental price
66 BRAND POSITIONING
67 COMPETITIVE ADVANTAGES
-Nike Bar opens from daytime to nighttime to provide a relaxed environment for everyone.
We offer organic food, protein drinks and low calories beers and good quality of wine which our competi- tors don’t provide.
Fun activities with an energetic environment gives our customer a new experience of spending time.
68 69 70 MARKETING 4PS
71 PRODUCT STRATEGY & PLAN
72 MERCHANDISING STRATEGY AND SEASONALITY
- Serve smoothies and mocktails in the same price, distinguishing them by ingredients. - Offer few products in few categories, but products are from specific brands such as Fort Point San Francisco Craft Beer and Napa Rayholds Family Winery. - The products in the same category has narrow price range that enable customers to choose items based on their behaviors. - Only sell products in store or self pick-up. - Charge sport machines use per time - Provide special products such as drinks and food for specific vents,e like NBA-finals named set.
MERCHANDISE MIX AND PRODUCT CATEGORIES
Smoothies and Mocktails Coffee Food Beer Wine
73 74 75 PRICING STRATEGY
76 Nike Bar offers differant drinks and food by categories, but items in each category are at the same price. This enables customers to choose products by ingredients rather than price. They can choose what- ever they want based on what they need. The price of Nike Bar is higher than our competitors because we choose organic products with high quality that are helpful and healthy for our customers.
Smoothies : $9 Mocktail : $9 Coffee : $3.5 - $5 Beer : $7 Wine : $12
77 DISTRIBUTION STRATEGY
78 DISTRIBUTION OVERVIEW
Nike Bar has exclusive distribution channel decision distribution, because this bar is the only one in San Francisco, who provides healthy organic food, protein cocktails, smoothies and exclusive organic beer and wine. Also, it has a place for sport entertainment and games. Also, it provides open hours from early morning till midnight and there is no age limit during day time. Nike Bar has no analogs in Bay Area.
Nike Bar uses direct marketing channel only and sell products and service straight to con- sumers, in order not to lose control over new business. Nike Bar receives Franchise from Nike to use its name and will enhance positive market reputation for Nike company.
Nike Bar operates through brick-n-mortar café location and m-commerce, which includes a click-n-mortar App. Advantages are controlling the entire shopping experience, interacting directly with customers, creating an immersive brand experience and control inventory.
79 FLAGSHIP
Time : Mon ~ Sun, 8am ~ 12am Location : Downtown San Francisco, 94104
Urban areas in large cities offer three types of locations which are the central business district, inner city, and gentrified residential sites. Lots of shopping malls and fashion brands are located in Central Busi- ness District like Powell Street which draws plenty of people into the area during business hours. Nike Bar is located in a few blocks, between the Union Square and the Ferry Building, where lots of business offices are located and tourists will pass by. The location not only draws hight traffic of people but also offers convenience for customers to take transportation such as Bart, Muni, cable car, buses and also taxi system.
Population : 42,897 People There are 34 neighborhoods in San Francisco, and these area have 3rd highest population and 2nd density in San Francisco.
Age and Sex : Highest number of age cohort as a percentage of the total population in Downtown area both men and women is between 21-34 years old and second is age between 35-44 years old.
Tourists : 2nd Highest number of people who are not citizen, 21.2% of population in Downtown area and most of them are Asian
80 STORE CONCEPT
DAYTIME
NIGHTTIME
81 NIKE BAR APP
How to use the app - Pick a seat first - Open the app - Add items in the cart - Enter the number of table - Purchase items online - Items would be delivered to your table
82 Click-n-mortar service - Offer a more convenient way for consumption - Reduce customer’s time on waiting in a line or drinks and foods - Promote events from the app - Nike can also grab customer data from the app
- Customers can access Nike website through the app
83 PROMOTION STRATEGY & PLAN
84 PROMOTION OBJECTIVES
Enhance the relationship between customer and Nike Bar
Draw people into Nike Bar
Engage potential customers in the bar and then attract them to be Nike customer
85 ADVERTISEMENT
Yelp Ads
Goal : Target more potential customers when they are seeking for a bar or a cafe.
Description : Yelp Ads will put Nike Bar at the first position of the recommended list when consumers are looking for a bar or a cafe, and then it will drive Yelp users to the page of Nike Bar on Yelp to enhace chances of walk-in customers. Yelp Ads will appear in a variety of places including on relevant search result pages and competitor business pages.
Timeline : Start to introduce our bar 1 week before it opens.
Target Audience : Primary and secondary customers and people live in San Francisco or visitor who use Yelp to make purchase decisions.
86 Google Maps
Goal : Connect with local customers at the exact moment that they are interested in making a purchase or look- ing for a place which is similar to where they want.
Description : Google Maps Ads targeting options for mobile let people to choose the area where their ad appears. When people want something, they look online first. Users who search for local businesses on their smartphones go on to visit our store after they search. An ad on Google Maps can help our business reach both local customers and visitors in the crucial moment when they are deciding where to take their business.
Timeline : Begin to introduce our bar 1 week before store open.
Target Audience : Both local customers and visitors in the crucial moment when they’re deciding where to take their business.
87 SOCIAL MEDIA MARKETING
YOUTUBE
Goal : Provide a live concept brand image to customers.
Description : Nike youtube channel has high number of followers and subscribers, so we also promote our bar on youtube channel by creating a short video or advertisement post on Nike's youtube channel. We also buy pop-up advertising on youtube as well.
Timeline : Begin to introduce our bar 2 months before store open as well as Facebook and Instagram.
Target Audience : Youtube follower, subscriber and Nike's fans.
88 INSTAGRAM
Goal : Offer a visual image and promote upcoming events to draw and interest customer attention.
Description : We encourage customers to exchange and participate in exchanges involving our bar, through the use of hashtag #nikebar. They can share photos of themselves enjoying our products and services.
Timeline : Begin to introduce our bar 2 months before store open.
Target Audience : Primary and Tertiary. Poeple who are into visual presentation and like sharing their pictures.
89 FACEBOOK
Goal : Engage and converse with people to our business, promoting what’s going on and special events.
Description : We will create events on Facebook to let people follow us first, and then like the post. They are going to tag their friends and then post comments, sharing the post. This enables us to expand our events widely and faster. We are also going to buy advertising on Facebook to help our brand to reach more people who are interested in and remember our business. This ads can appear in News Feed on desktop, news feed on mobile, and in the right column of Facebook on desktop to encourage people to visit our business.
Timeline : Begin to introduce our bar 2 months before store open.
Target Audience : Primary, secondary and tertiary. Current customer base and people who always use the internet.
90 PUBLIC RELATION
Grand Opening Goal : Russell Wilson is a professional American football quarterback, 29 years old. American millennials are always exited when he is in game, he will be on the open ceremony in order to make noise around new Nike Bar and attract more sport engaged people.
Description : Grand opening will start at noon Russell Wilson will appear by 1 p.m., followed by greetings and taking photos with guests. He will stay till 4 p.m. and talking about importance of health nutrition. Free food samples will be given. After 4 p.m. guests may enjoy food, drinks and sports entertainment.
Timeline : 1 p.m. to 4 p.m.
Target Audience : Primary, Secondary and Tertiary.
Budget : Russell Wilson costs $1k per hour. Free samples $1000 for the whole day ceremony.
91 Weekly Basketball Winner
Goal : To lure loyal customers among sport engaged people.
Description : Clients’ names will be put on WINNER BOARD every week, who have the highest score among particular sport games per week and will be gifted. There can be several winners.
Timeline : Every Sunday, from 7 p.m. to 9 p.m.
Target Audience : Millennials.
Budget : Bar food or drink 10$
92 MARKETING PROMOTION TIMELINE
MARKETING PROMOTION BUDGET
Advertisement : $7,000 for six months
Social media marketing for six months - $18,000 for a person running social media accounts - $ 5,000 for advertising on Instagram and Facebook - $10,000 for the production of videos and photo shooting
Public Relations - $15,000 per day for Grand Opening - $500 for six months for weekly basketball winner
93 FINANCIAL PLAN
94 95 SALES PROJECTION FOR 3 YEARS
YEAR 2019 2020 2021 LOACATION 1 2 3 CAUSTOMER TRAFFIC 1000 / week 2000 / week 3ooo / week AVERAGE SALE PER CUSTOMER $15 $15 $15 ANNUAL SALES $750,750 $1,501,500 $2,252,250 APP DOWNLOADS 1500 3000 4500
96 MEASUREMENT AND EVALUATION
Sales We plan to use POS system (point of sale) to measure the best selling items, peak times of the day for sales and units sold in a week. Brand Awareness - App Download Number of Nike bar application downloads in app store, play store and others - Foot Traffic Walk-in customers Nike’s fans who go to Nike Bar - Social Media Engagement Number of social media followers : Facebook, Instagram, Youtube. - Advertisement Number of click-through rate from advertising in Facebook, Instagram, youtube, yelp and google map Conversion - Survey from application for getting both positive and negative feedback from customers to develop Nike bar for better services in the future. - Comments from social medias and others sites.
FUTURE MARKETS
After we open our first store, if our bar is successful, we could engage more new customers by expanding locations in big cities, such as New York, Los Angeles and Chicago. These cities are large markets in their own right, and they are growing and prosperous with high foot traffic in downtown area, leading tourist destination. People in these cities are also into sports, such as NBA like Los Angeles Lakers, New York Knicks and Chicago Bulls, so we can engage potential customer from those areas. We are also going to add Nike Bar to our major retail spaces and have Nike Bars nearby pop-up sports events like Marathon and Olympics.
97 WORK CITED
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