IMC Program for Nike - Case Study Example

Name Class Unit Table of Contents Introduction 3 IMC situation analysis 3 Company analysis 3 NIKE 3 Company mission 4 Corporate goals 4 Product analysis 5 Key product offerings and product lifecycle 5 Audience analysis 5 Personality Archetypes 7 Competitor campaigns 7 Puma 8 Adidas 8 Communication objectives 8 Communications strategy 9 Campaign impact and duration 9 Integration strategies 9 Promotional budget 9 Promotional mix 10 Advertising 10 Direct marketing 10 Internet marketing 11 Sales promotion strategy 11 Public relations 12 Personal selling 12 Sponsorship and Events 13 Measuring the campaign effectiveness 13 Conclusion 14 References 15 Introduction Communication is a method of sharing meaning and thoughts among individuals or organisations. In a marketing channel, communication is used to create a network, promote goods and services as well as to spread ideas. This is through using appropriate channels that are common and effective in transmitting communication. Integrated marketing communication (IMC) focuses on the customer first. This is through addressing consumers’ tastes, preferences, media usage and purchase patterns. IMC is defined as a concept of marketing planning that entails strategic roles of different communication methods with an aim of gaining clarity, consistency and more impact. It’s a strategy that combines different marketing communication tools such as personal selling, public relations, sales promotions, advertising and direct marketing among others. IMC can be used as a move towards an integrated approach that helps to achieve efficiency through synergy (Armstrong et al., 2014). This paper designs an IMC program for NIKE. The paper will look at how elements of IMC can be integrated to have the greatest impact to the chosen audience. IMC situation analysis Company analysis NIKE Nike was founded in 1964 as a distributor of Tiger brand of shoes from Japanese Shoemaker Company Onitsuka Co. the company was initially known as Blue Ribbon Sports and acquired the name Nike in 1973. The company brand is estimated to be worth an estimated $10.7 billion. The company have been able to grow through their innovative brands and marketing campaigns. The main form of the marketing mix used by the company has been use of TV ads and posters. The company ads have a tagline, “Just Do It” (Nike, 2015). The company have also been using sports sponsorship and celebrities. Despite this, the increasing competition in the market requires the company to have a come up with a new IMC. A well-designed marketing communication program for Nike can help a lot in making Nike products to gain a competitive advantage in the market. A well designed IMC is a strategic tool for business (Chitty et al., 2015). This will help to make messages by Nike more efficient and eliminate product related risks in the minds of the consumers. Company mission Nike mission is “bring inspiration and innovation to every athlete in the world”. The company uses the name athlete to target any active individual. This is evidenced by the statement that “if you have a body you are an athlete” (Nike, 2015). Corporate goals Nike corporate goals are based on sustainable growth targets. This is through innovative business strategies by improving the working conditions, sustainable industry and enhances community relations. The company aims to thrive through sustainability. This is aimed at giving the company higher returns. This implies that the organisation has to market their products to the target market as sustainable and environmental friendly (Nike, 2015). Product analysis Key product offerings and product lifecycle Nike has over 7,000 products for both male and women (Nike, 2015). The products are categorised as shoes, clothing and gear. The sports category of Nike products is the most well-known worldwide. Nike products are in the maturity stage of their lifecycle. At this stage, there is a slowdown in sales and the products have already been accepted by most of the potential buyers. The company profits are in a stable state and the competition is high in this stage. The company have been using price reductions as a means to curb competition. Despite this, the stage have some growth hence can be labelled as growth maturity. The stage holds some growth from the remnants of the last major product lifecycle; the growth stage. In this stage, Nike has tried to be more competitive through sustainable innovation. The company products are made in a sustainable manner. Nike products main appeal is their performance in sports. The company claims to make better solutions for the athletes that have limitless future. The brand logo and theme, “Just do it” have made it easy to identify the brand. The brand appeals to the consumer as a sustainable sportswear associated with high performance. The company slogan is known worldwide (Nike, 2015). Audience analysis Nike is a market leader in sportswear and apparel. The company high-performance sportswear targets professional athletes worldwide. The company uses high investments in research and development to come up with products that can help the athletes to unleash their potential. The company have also been focusing on both men and women wear. The company have women and men training wear segments. The women training wear segment have been growing at a very fast rate. Due to the company long-term growth strategy, the target for young athletes has been emphasized on. This is in sectors such as soccer, basketball and running. The company have been focusing on making young athletes their main target market in future. The fact that the company focuses on athletes wear makes them close to the target audience (Desbordes, 2012). The target market knows Nike as a leader in the sportswear market. This is evidenced by the company presence in major sporting events as sponsors. Consumers are well versed in Nike innovative practices in the sportswear industry. The company have won major awards due to their work in sustainable sportswear. With the rise of the internet, target consumers are exposed to the new media channels. Most of the target audience have a presence in social media channels and have access to TV and print media. Digital channels access is very high among the young athletes making it the main channel for marketing (Mihart, 2012). The target customers’ degree of resistance is very low. This is due to the fact that Nike has already built a strong brand image. Most of the athletes aspire to use Nike products due to their proven performance in the track and field. The company products are appealing to both athletes and non-athletes. The proposed IMC design is supposed to ensure that the target audience perception is made more positive towards the products (Mihart, 2012). This is in the wake of increasing competition in the sportswear industry. There will be the use of focus groups and surveys that will look at the entire market segments and determine the media that will be used for each group. The target groups are mainly three; young athletes, older athletes and non-athlete consumers. Based on research, all the three groups have access to digital media channels (Armstrong et al., 2014). The surveys will help to identify the segments in each of the groups and match them to various media. Personality Archetypes The major target segment is athletes. Athletes involve strength, courage, endurance and fearless. Athletes are much disciplined and have their mind set on a specific goal. This implies that the developed marketing plan must have athlete archetype. This is through fulfilling the athlete needs for dominance and high achievement. The target audience are more attracted to high performance products. An athlete is ready to pay more if they are aware that the product is of high quality and have been tested on the field or track before. The target audience is aiming to meet higher needs based on Maslow hierarchy of needs. Thus, archetype and human needs have to work together. The target market purchasing behaviour is based on athlete’s endorsement. Young athletes are highly likely to purchase sportswear that is popular with the senior and well-known athletes. Athletes spend a lot in purchasing their sportswear. This is evidenced by the growth of the sportswear sector worldwide. The target market personality archetype qualities are a disciplined mind set, persistence and focus on a specific goal (Hassongholipour, Amiri & Sheibani, 2013). Competitor campaigns The company main competitors are Adidas and Puma. Both competitors have aggressive marketing communication. Adidas increased their market share by buying Reebok brand. Both competitors have established IMC plans (Desbordes, 2012). Puma Puma is a well-known brand with its logo of a leaping animal (Puma) giving a notion of high performance. The company markets itself as a reliable in the world athlete market. The company marketing communication strategies involves innovative launch, brand endorsement, personal marketing, Advertising, use of new media, TV commercials and print media. The company is also well known for their sustainable practices such as the use of small packaging size. The target market for the company is men and women seeking sports apparel (Desbordes, 2012). Adidas Adidas have been offering stiff competition to Nike. The company brands their products as high performance and of best quality. The marketing communication channels used are TV adverts, print media, internet channels and use of athletes’ endorsement. Adidas use niche marketing. This is through a narrow consumer group that looks for distinctive benefits in the sportswear. The target market includes men and women who require apparel wear (Desbordes, 2012). Communication objectives To enhance consumer awareness of Nike products. This is through enhancing the existing level of consumer awareness worldwide. To influence consumers preference for Nike products and services. To stimulate sales for Nike products through effective communication with the target consumers. Communications strategy Campaign impact and duration The IMC campaign for Nike is expected to last for a whole year. During the period, it is expected that the company will achieve the set objectives. This is through enhancing consumer awareness, influencing preference and stimulating sales (Armstrong et al., 2014). The main market strategy is being able to create brand awareness that will last for a long time. Integration strategies All promotional mix used will be linked together based on the integration strategy. The integration strategy is based on web and new media. Advertising, public relations, direct marketing, sales promotion, internet marketing, and sponsorship and events will all be linked through the web and interactive (Armstrong et al., 2014). This will ensure that there is an integration of all IMC channels. Web provides a neutral ground for all media being used in marketing communication. The message used in the IMC is experiential making it easier to link with the target market. IMC will focus on authentic consumer relationship through creating a genuine relationship (Percy, 2014). Promotional budget Strategy Cost 1 Advertising $40,000 2 Direct marketing $25,000 3 Internet marketing $7,000 4 Sales promotion strategy $20,000 5 Public relations $15,000 6 Personal selling - 7 Sponsorship and events $145,000 Total costs $252,000 Promotional mix Advertising Nike will use both new media and traditional media in carrying out their advertisements. The traditional media that will be used includes newspapers, print magazines, outdoor advertising, radio advertising and television (Belch et al., 2014). New media that will be used includes pay per click, websites, Google ad words, MySpace, YouTube, Facebook and twitter. The use of newspaper will involve placing adverts in the major newspapers globally. This will help in reaching a wider audience. Outdoor advertising is one of the most effective methods. The method is cost effective and utilise billboards and posters on vehicles. The advantage of using magazines and newspapers is the fact that they have sports segments. This helps in targeting the specific audience required (Blakeman, 2014). Athletes are concerned with the news about sports and placing an advert in this section is very vital. Television is a very powerful means of advertising. This is through the use of innovative sight and sound (Percy, 2014). Televisions have the capability to reach the wide area in homes. Direct marketing This method involves the use of both traditional and new media digital marketing. Traditional digital marketing involves the use of solicited and unsolicited direct print mail, posted printed collateral and target lists. The new media strategies involve use of direct mail and direct short messages (SMS) which may be solicited or unsolicited. Direct marketing is an integral part in IMC (Percy, 2014). IMC utilised by the company will involve database management, use of internet and print media. The company will establish a selling point through direct marketing for their products. Direct response advertising will be utilised. This is through ads that will encourage the consumers to make direct purchases from the company. The company will develop a database that will enhance direct selling. Telemarketing will be utilised to persuade customers to make purchases or make decisions on sales leads (Blakeman, 2014). Internet marketing The advance in technology will be the main support for internet marketing. The company will utilise interactive media in this case. This is where users can participate in a two-way communication (Papasolomou & Melanthiou, 2012). The interactive medium will include the company website, Facebook, Twitter, YouTube, Google+ among other channels (Percy, 2014). The company will increase and enhance its online presence. This channel is selected due to the fact that it can execute all elements of a promotional mix. Presence in the social sites and the number of followers is a major milestone in internet marketing. Nike will be more interactive in social media and ensure they attend to any consumer complaints that may arise (Castronovo & Huang, 2012). Sales promotion strategy The IMC designed will use both traditional and new media sales promotions. The traditional sales promotions include use of price coupons, offering discounts and in-store sampling. The new media sales promotion methods that will be used include online competitions, use of SMS. This will involve use of sales activities that have higher incentives to the sales force. The sales promotion used will be segmented into two main categories; consumer oriented and trade oriented (Armstrong et al., 2014). Consumer-oriented sales promotions will be directed to the ultimate user of the product. This will include use of coupons, sweepstakes and contests. The main aim will be encouraging the consumers to make an immediate purchase decision. This can help Nike to stimulate short-term sales. Trade oriented sales promotions are aimed at the distributors, wholesalers and retailers. This will involve the use of price deals, sales contests and trade shows. The main aim will be to promote the company products. This method will increase the brand loyalty and ensure that traders are more committed to selling the company products (Armstrong et al., 2014). Public relations This will involve non-personal communication regarding Nike products. The company will use news stories, announcements and editorial. The main target is the mass audience and the company will not incur any cost. This will be achieved through the use of news releases, feature articles, films and calling press conferences. The main advantage of this method is credibility. Consumers will be more inclined to believe the information that comes from a credible source. The only costs that will be incurred in this method is paying staff, and developing the items to be used in publicity. The company must work to ensure that they retain ethical operations to avoid negative publicity (Danaher & Rossiter, 2011). Personal selling This will involve the use of person to person communication. The sellers of Nike products will; make attempts to persuade buyers to make purchases. This is through face to face communication and telephones. Sellers will be trained on tailoring the message to fit different types of customers and their needs. The method is advantageous since it gives a direct feedback and consumers’ perceptions of the products can be gained. The seller has an opportunity to modify the message if they get negative feedback (Blakeman, 2014). Sponsorship and Events The method will utilise both traditional and modern media sponsorship. Traditional sponsorship will involve event participation and share media exposure. New media sponsorship includes competitions through social media, marketing events and integrating a website with social media page (Castronovo & Huang, 2012). The company will utilise athletes and other celebrities to sponsor them into events. The company will target sports such as football to offer sponsorship. The main aim is to enhance the awareness of the Nike brand quality worldwide. Sports sponsorship is very vital since the athletes use the company products. At the moment, the company mostly sponsors basketball. The company will expand their sponsorship to other games such as football. The company will be able to promote its presence in the major sports such as hockey, football, golf and basketball among others. Measuring the campaign effectiveness The IMC designed will have to be measured for its effectiveness. This will give the marketers a chance to embrace accountability. The assessment will be carried out at the end of the campaign that is a period of one year. The main aim will be to assess the cost benefit for the campaign. The campaign will also utilise media monitoring service to determine effectiveness. This involves collecting and collating mentions to determine success. Social media metrics will be utilised to measure the campaign success through online publicity. This will include tools such as Facebook metrics, DIGG and Stumble upon (Castronovo & Huang, 2012). Conclusion The IMC designed will help Nike to attain its objectives in enhancing the existing level of consumer awareness worldwide, influence consumers’ preference for Nike products and services and stimulate sales for the company. The plan has to be implemented within the stipulated period of one year. The message communicated has to be embedded in all media channels and integrated through web. Promotion mix recommended are; advertising, direct marketing, internet marketing, sales promotion strategy, public relations, personal selling and event sponsorship. The company will have to access the success of the IMC designed to enhance accountability among marketers. The tools recommended are media monitoring and social media metrics. References Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson Australia. Belch, G. E., Belch, M. A., Kerr, G. F., & Powell, I. (2014). Advertising: an integrated marketing communication perspective. McGraw-Hill Education. Blakeman, R. (2014). Integrated marketing communication: creative strategy from idea to implementation. Rowman & Littlefield. Castronovo, C., & Huang, L. (2012). Social media in an alternative marketing communication model. Journal of Marketing Development and Competitiveness, 6(1), 117-134. Chitty, B., Luck, E., Barker, N., Valos, M., & Shimp, T. A. (2015). Integrated marketing communications. Cengage Learning Australia Pty Ltd. Danaher, P. J., & Rossiter, J. R. (2011). Comparing perceptions of marketing communication channels. 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