Professional Documents
Culture Documents
I.
As a well-established brand founded in 1964 with a mature business model and a growing digital ecosystem
(Graph 1.1), Nike is currently looking for opportunities for further growth potentials. Seeing the unbalanced
demand-and-supply relationship between female customers awakening needs of health and fitness digital
services and the underdeveloped female sporting market, Nike is suggested to tap into this emergent tension and
to grasp the opportunity to boost female customer engagement.
Nikes Major Opportunity: to build deep connections to female consumers with digital services (branded
apps) and online communities to driving rapid expansion of Nikes female sporting goods business.
To illustrate how Nike can tailor its strengths to meet its opportunities and avoid possible threats based on
its current historic and current situation and context, a SWOT analysis is conducted as below:
Strengths
1. Strong brand recognition (G1.2)
2. Leading market share and
increasing revenues (G1.3)
3. Large and cohesive
customer/user community
4. Efficient and effective R&D
5. Remarkable marketing and
consumer engagement
Weaknesses
1. High prices of products
2. Large advertising and marketing
expenses
3. Gender bias perceptually (G1.4;
G1.5)
4. High dependency on footwear
sector
Opportunities
1. Build on digital/mobile trend
2. Increasing needs towards
healthcare via mobile devices:
77% of US smartphone owners
aged 18-29 and 68% of those
aged 30-49 use their phone to get
information about health
conditions. (G1.6)
3. Enormous growth potential for
female health and fitness apps:
Women account for 68% of
fitness fanatics.
Opportunity-Strength Strategies
1. Develop branded apps and digital
platforms to accumulate existing
and new users.
2. Focus on CRM, incl. educating
consumers, integrating online
communities and better
communicating on the topic of
health and sports.
3. Target female segment and offer
customized functions and
products to expand female
sporting goods market
Opportunity-Weakness Strategies
1. Offer incentives according to
consumers activeness in branded
apps or online communities to
lower prices but improve
engagement and volumes.
2. Use branded apps as owned
media to advertise and
communicate with consumers to
lower advertising expenses.
3. Cater to womens need and put
more efforts on developing
apparel and equipment sectors.
Threats
1. Industry Rivalry: e.g., Adidas,
Reebok, Asics, Puma, etc.
2. Substitute Services and Products:
wearable devices such as Apple
rd
Watch and 3 party health and
fitness apps
3. New Entrants: Fashion brands or
High Tech companies entering
sporting goods business.
Threat-Strength Strategies
1. Reposition Nike to better
differentiate it from competitors
by means of R&D and Marcom.
2. Cooperate with popular 3rd party
apps to achieve win-win situation.
(Perceptual Map)
Segment
Attributes
We find it advantageous to both target Healthy and Engaged and Challenged but mindful segments.
Both groups show an increasing need of health and nutrients information, a promising attitude toward health
and fitness apps and a much higher income level and consumption level. To our surprise, young and healthy
people, thought by many to be prime candidates for digital health programs as they are the most interested in
new technologies, are actually the least likely to be receptive to digital health solutions based on the research
conducted by C3i. Therefore, we will focus on females who are among 25 to 54. The sum of these two targeted
segments occupy more than a half of the entire U.S female population, approximately 85 million, which is a huge
profitable market.
V. Behavioral Objective
Increase purchase rate of fitness products by healthy and engaged female customers by 10% in 2016.
Increase trial rate of fitness products by challenged but mindful female customers by 5% in 2016.
VI. Mental Objective
The mental objective is to be perceived as the closest-to-female brand among healthy and engaged and
challenged but mindful female customers in the sporting apparel and footwear industry by 2018.
By providing a professional fitness app especially designed for women, Nike will build on customer intimacy with
female target and increase women's awareness on health and sports by educating them on knowledge of health.
In this way, Nike will be in the position to gain more share in the female market and boost its total revenue.
VII. Brand Positioning Statement
1
2
http://www.c3ihc.com/blog/patient-segmentation-research-provides-insights-into-digital-healths-future/
http://flurrymobile.tumblr.com/post/115192181465/health-and-fitness-apps-finally-take-off-fueled
To fitness fanatics and challenged but mindful females in North America, NIKE is the healthy lifestyle
promoter that offers the most customized fitness content for women, because it offers
the most professional workouts plans coached by trainers from IDEA Health and Fitness Association and
NIKE sponsored athletes, customized nutrition and diet plans designed by certified nutritionists from American
Nutrition Association, period recordings and medicine tracker specialized to users current health status and
concerns, and an interactive social network for users to communicate with each other and post their own
workout plans and healthy diets.
APPENDIX
Graph 1.1 - Nikes Brand Ecosystem
Graph 1.3 Sporting goods companies revenue in 2014
Graph 1.5 Wholesale equivalent revenue