Executive Summary

Advertising is a paid form of non-personal communication about a service, brand,

organization or a product. However the nature and purpose of advertising differs from
one industry to another and across different situations, it could be in the form of
communication and persuasion or as Brand Equity, Brand Image or Relational marketing.

Marketing is the activity set of institutions and process of creating, communicating and
delivering and exchanging offerings that have value to the customer, client and society at
large. And the value refers to the customer perception of all the benefits of a product or
service weighed against the cost of acquiring and consuming it.

While marketing communication in the past is fragmented or uncoordinated, it has been

regained that to effectively advertise within a budget and to achieve maximum reach, a
communication mix is needed.

Thus the report is on a proposed campaign of building of existing mixed of

communication marketing to achieve the goals of maximizing outreach.

1 Introduction
1.1 Company and industry

Founded as an importer of Japanese shoes, NIKE, Inc. (Nike) has grown to be the
world's largest marketer of athletic footwear and apparel, with the company's
products sold worldwide in retail stores, Nike Towns and factory outlets.

Nike involved in the design, development, and marketing of its wide range of core
athletic shoes and apparels which are mostly manufactured by independent
contractors located overseas.

Through consistent innovation in the design of its products and heavy promotion, the
company fueled its growth in both U.S. and foreign markets.
 1.2 External Factors
“In the third quarter of fiscal 2009, Nike revenues declined 2% to $4.4 billion; net
income decreased 47% to $243.8 million.

The deteriorating macroeconomic environment has caused significant volatility in

global financial markets and has continued to put significant pressure on discretionary
consumer spending worldwide. The Company might well position from a business
and financial perspective, but is not immune to global economic conditions. In the
future, these conditions could affect the business in a number of direct and indirect
ways, including lower revenues from slowing consumer/customer demand for our
products, reduced profit margins and/or increased costs, changes in interest and
currency exchange rates, lack of credit availability and business disruptions due to
difficulties experienced by suppliers and customers.“ (Yahoo Inc, 2009)
In responds to the inherent uncertainty presented by the evolving macroeconomic
conditions, it is necessary to identify and manage potential exposures over the short
and long term and managing to continuously increase the stake in different regions.
Thus the aim of this project is to propose a marketing communication campaign plan
for Nike in Singapore.

2 Brand Analysis
2.1 Brand positioning
The appeal of brand names is greater than ever as marketers recognise that building
and reinforcing the image of their brands is a key to profitability and growth. And in
today’s context no longer can building and maintaining brand equity be attained by
spending large sums of money on media advertising as Brands become more about
how people relate to them or the communities that form around them rather than just
the product quality or performance.

It was by foresight of Nike co-founder Bill Bowerman made a description on his

observation on the endless possibilities for human potential in sports, setting the tone
 and direction for the company, Nike, which was made many years ago and has
continued till even today to inspire. “The goal is to carry on his legacy of innovative
thinking, whether to develop products that help athletes of every level of ability reach
their potential, or to create business opportunities that set Nike apart from the
competition and provide value for the shareholders. Thus creating the mission
statement [to bring inspiration and innovation to every athlete* in the world.]” (Nike,
2009)

It is through this message that has brought together the core values, core
competencies and the brand aspirations, which defines the identity, personality and
brand voice, articulated as the brand promise. Thus a Brand audit has been created
marking the starting point of all planning.

And through the same goal it has branched to other brand measurement value, the
Brand Equity or a favorable impression to the brand name and the Brand Relationship
or impressing the consumer that the brand actually does deliver as perceived, thus
providing with a competitive advantage that allows earning of greater sales volume
and higher margins than it could without the name.

2.2 Social networks and influences

The relationship between brands and their customers has become much more
complex, with the consumers using the internet to make price and quality
comparisons, or to learn what others think about various brands while sharing their
experiences and satisfaction level through forums, blogs and online web
communities. Companies are finding the increase difficulties to control their brand
image while such wealth of information about their products and services are easily
accessed and shared throughout the internet. Similarly such influences are not totally
to the disadvantage of the company as this opens up to new avenues of marketing
communications.
 In year 2003, Nike has localized its global 'I Woman' platform via on-ground
activities in Singapore.

According to Beverly Wong, marketing manager of Nike Singapore, the Nike

Women retail offering is particularly strong in Singapore. "Since 2003 onwards, we
noticed women were becoming increasingly active in sports, so we intensified our
efforts here," said Wong, "This year we've experienced a 50 per cent growth in the
first half, year-on-year. And we've noticed certain trends. For instance, there are more
and more women running outdoors rather than in gyms." (Haymarket Media Limited,
2006)

To leverage this finding, Nike sponsored the 2003 Shape Run which is one of
Singapore's first marathons for women only.

"Response to this event was overwhelming," said Wong, "We had over five thousand
registrants for only 2,500 spots." (Haymarket Media Limited, 2006)

An at the end of the event, Nike developed an online blog to collect 'iStories', or
testimonies of challenges and insecurities that local women face which was
consolidated into a global portfolio. Which prove to show the continuous effort of
Nike to innovate and utilizing on new found mediums of marketing communication to
build on the brand relationship with the consumers.

3 Campaign objectives
3.1 Demographics
The marketing communication process begins with identifying the audience or
customers who have similar needs and wants, thus able to represent some type of
market segment that can be reached with the same basic communication strategy.

“Singapore, 23rd October 2007 - Nike has rolled out another “Just Do It” campaign,
which kicked off on 11th October, at street level this time with a mission to redefine
sports for Singaporean youths, particularly those aged between 14 to 28 years old, by
celebrating new sports tribes and amplifying their passion for their sports.

To ensure high visibility and awareness building among the experimental sports-
driven youths, the campaign entitled “Respect the Tribes” ran on JCDecaux, Street
side Network comprising of 12-sheet posters as well as a Billboard buy on the
building façade of The Heeren. Covering a distinct area of 8 meters wide and 10
meters in height, the campaign sought to emphasize the individuality, spontaneity,
improvisation and creativity of ‘real-life’ people who are excelling in the tribe.

The creative rationale was to use naturalistic settings, where these sporting activities
take place, to their full advantage, so as to ‘ground’ these tribes and their cultures
within the urban fabric of Singapore. Let the tribes speak. Let the tribes play. Keep it
real. JUST DO IT.

Glenn Heng, Marketing Manager of Nike Singapore, explains: “We chose Outdoor as
the key medium for our campaign as we wish to reach the youths on their home
grounds and inspire their passion for their chosen sports. Visibility garnered from
Outdoor medium will resonate and re-energies our ‘Just Do It’ message to our
youths.”

The 12-week campaign also runs on booklet distribution, posters and online. Media
duties were handled by Mindshare Singapore. “(JCDecaux Singapore, 2007)

This previous campaign has set the stage for the hierarchy of effects model for the
target segmentation as a touch-point and as a learning response. The nature of the
product is apparels and its pricing model is leaning towards high involvement, thus a
model of Feel-learn-do (psychological) is recommended for this affective group.
Which continuous marketing communications are needed to build on this targeted
group from a cognitive stage feeding them with knowledge and raising awareness to
 the next stage of effectiveness in liking to the style, having preference and building of
conviction to the brand.

3.2 Target Audience

Building on the previous targeted segment particularly those aged between 14 to 28
years old, with passion in sports. There is a recent and future event to more narrow
down the targeted audience and the potential of profit.

The recent 2009 US Open was experienced by more fans on-site, on television and
online with the total visits to USOpen.org, the official website of the US Open,
topping 63 million, surpassing last year’s record of 39 million visits.

ESPN2 which is available to Singapore cable market posted its two most-watched
tennis telecasts in its history on Wednesday, Sept. 9, and Thursday, Sept. 10. The US
Open coverage on Tennis Channel on Saturday, Sept. 5, broke all previous ratings
records for the network, and the network ranked within the top 10 on all ad supported
cable, including the No. 4 rank during the 8 p.m. to 9 p.m. hour (USOpen.org, 2009)

Following the success of viewership of the U.S Open 2009, the campaign hope to
replicate and optimise the coming Australian Open in Jan 2010 as top sporting events,
with its mass appeal, has the ability to reach out and attract a wide and diverse
audience, offering the best way to make a touch points to viewers.

“Sports are ubiquitous and it is a known fact that people's appetite remains strong
despite the current demanding economic times. As The Economist reported, while
nothing can entirely escape the economic downturn, leading sports do come close. In
hard times, people need escapism and the best way a sponsor can benefit from that
affinity is to leverage on the platforms that build the connections between sports fans
and premium sports properties. “(Contributed Content, Singapore, 2009)
 The upcoming Australian Open 2010 is deem to be the best medium of marketing the
campaign for Singapore market being that the current Barclays Premier
League2009/10 Season has already its own set of global marketing objective, while
the Formula one event has already been held earlier of the year. Tennis would suit the
theme of the targeted audiences which is popular among young upscale male
audiences across Asia. Especially with a reach of over 45 million viewers across
Asia, and STAR Sports'(available to Singapore Cable market) comprehensive
television coverage of the Australian Open which includes nearly 160 hours of live
tennis matches, will be much anticipated reinforce touch points between the brand, t
he sport and the viewers. (Contributed Content, Singapore, 2009)

“Diversity and Inclusion is fundamental to Nike’s performance. It’s what makes us

better. It’s what makes us smarter. It helps our business grow and helps us connect
with consumers.”
—Gina A. Warren, VP Global Diversity & Inclusion (Nike, 2009,)

5. Message strategy development

5.1 The Slogan

“Power, Speed, Control” with Nike’s “Swoosh” logo

5.2 Proposed message positioning

The proposed slogan builds on Nike’s continuously effort of innovation as well as

building of emotional feelings of accomplishment. The words “Power”, “Speed” and
“Control” and fulfilling the above objective as it give a sense of superior technology
or it could be also interpreted as a sense of achievement making it a combination of
rational and emotional appeal to the consumer. Not forgetting the trade mark of the
Nike Logo which has already plunge deep into the consumer minds that it is symbolic
to the slogan “Just do it”
5.3 storyboard

The selection of the moving images using the top range of technological advancement
of transportation (or Movement) is symbolic to the slogan of (Power, Speed, Control)
with Nike’s logo interpreted as a sign of approval (checked) or the ability to “Just Do
it”. In additional, the Tennis stars featured are the finalist or featured clash (match) of
 the recent passed major sport event in tennis which also will raise awareness as all
three of the tennis stars happen to be spoke persons of Nike. Thus again bringing the
impression that the brand is a must to achieve greatness as well as the only choice of
arsenals to compete in the top flight.

6. Conclusion

With the plan set for the marketing campaign, next would be the steps of the selection
of Media choice as well as developing a Media plan. The selection of Media is likely
to be through Television and the Internet. Reason being that these are the avenues
which the audience are able to watch the matches. In Singapore, due to the limited
breasting companies, this reduce greatly the cost to widely advertise, Thus meeting
the goals set in the introduction while taking consideration of the external factors.
7. References

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http://www.fundinguniverse.com/company-histories/NIKE-Inc-Company-History.html

Yahoo Inc, 2009, SEC Filings for NKE (Form 10-Q on 9-Apr-2009), Last Access
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Nike, 2009, Company Overview (If you have a body, you are an athlete), Last Access
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Haymarket Media Limited, 2006, Nike eyes female market in Spore, Last Access
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