Air Jordan Source

8/9/2019 Air Jordan Source

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Jordan Brand

Rob DiClementiFinal Marketing Plan


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Executive Summary

Product:

Jordan Brand offers a variety of basketball apparel, but specializes in footwear. Jordan

provides premium, high quality shoes that add protection and improve performance. Classic

sneakers are reproduced in limited supply, which adds to the perceived value of the brand. The

difference between a Jordan Brand sneaker and their competitors is that he conceives of the shoe

as

"objects of art and design that happen to be used for basketball, according to legendary Nike

designer Tinker Hatfield (Freeman, 2012).

Goal:

Jordan Brand aims to capitalize on past success, while using new opportunities to achieve

Greatness, such as Michael Jordan.

1) Increase revenue from limited released Retro sneakers by increasing the supply by 15%, and

increasing the price accordingly.

2) Use Give-and-Go App to increase consumer satisfaction, awareness, and relationships, while

increasing revenue 5-10%.

3) Finally, Jordan aims to build a database of 500,000 former, current, and potential consumers

by implementing several social media strategies

Target Market and Strategies:

Jordan Brand targets all millennials, urban millennials/generation z as a niche, and the

global market. The strategies in place to benefit the brand begin with a slight increase of supply

and price for limitedly released shoes. After this, improving brand image with campaign to stop

violence associated with reproduced shoes. Another strategy is to take full advantage of social

media by communicating, promoting, and gathering information from prospective consumers.

Introducing a mobile application and website that acts as a social media resale site will increase

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revenue through a secondary market. Finally, a partnership with the NBA is the first step in

sustaining a long term relationship to enhance global expansion strategy.

Introduction

Mission Statement:

Jordan Brand aims to capitalize on past success, while using newopportunities to achieve Greatness, such as Michael Jordan.

After Nike gave Michael Jordan his own line of basketball shoes in 1984, the industry

would never be the same. Over the years, the product line expanded to include socks, shoes,

shirts, shorts, and hats, but shoes have always been the best selling product. By using a strategy

of differentiation and product development, the brands market share in the basketball shoe

market has reached 71% (Sandler, 2011).

Today, Jordan produces innovative sneakers with extremely high quality. Now years after

Michael Jordans retirement, Carmelo Anthony and Chris Paul now have their own signature

shoes through Jordan. The brand also produces a number of different modern shoes, all varying

in design, technological advance, and quality (Nike, 2012).

Jordan Brand also releases shoes that were released in the past, and refer to them as

Retro. These shoes are released with a limited supply and priced between $160-$185. By

keeping the supply of Retros low, consumer demand is extremely high (Wahler, 2012). Since the

supply is currently extremely low, consumers must patiently wait in long lines or use to

secondary market to purchase them.

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Overall, Jordan Brand produces premium basketball shoes of the past and present that are

sold at a premium price.

Situational Analysis

Jordan Brands demand trend depends on the actual shoe and how many are produced. If

the shoe is more limited than another shoe, it is likely that the demand will shift in favor of the

minimally supplied shoe. In comparison to other products, as time passes, limited shoes increase

in value.

The technology trend in the basketball shoe market is shifting. In the sense of

performance, producing a light weight, protective shoe is now the objective (DeLisa, 2011).

Adidas actually produces the lightest shoe in the industry, but still own a small portion of the

market share (Elfes, 2011). In addition, cutting traditional advertising budget to increase

nontraditional (social media) spending is becoming more common (Cedrowski, 2012).

The fact that most athletes are within the millennial generation, Jordan uses this

demographic as a large percentage of consumers. Jordans product directly fits the needs of these

people. In addition, the NBA is 82% African American and all but one endorsed athlete is

African American. Celebrity endorsement is a factor in creating legitimacy for the brand, and the

African American culture is a large part of influencing its credibility (Sanders, 2012).

Though Jordan Brand is enhancing their global strategy, and Michael Jordan is an

international figure, they still face international challenges. Li-Ning, a Chinese shoe company, is

making some noise in the international market. Currently, they are not a huge threat to Jordan

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Brands current US sales, it could be a brand that grows in to a powerful rival in the future. With

the recent acquisition of Dwayne Wade, a previous member of Team Jordan, could sway the

outlook of international consumers.

Competitors SWOT

Strengths Weaknesses

- Adidas has endorsement deal with Derrick Rose,and has own shoe line around him (Adidas,2012). Also signed Dwight Howard.

- Introduced the AdiZero shoe, which is theworlds lightest shoe (Elfes, 2011).

- Adidas had campaign ads during the NBAPlayoffs with highly touted players wearing theAdiZero (Elfes, 2011).

- Innovation with ankle support and surfacetraction (Premie, 2011).

- Adidas has one of the most recognizable and oldbrand names in the history of sneakers (Premie,2011).

- Signed an 11 year deal with the NBA to be theofficial apparel supplier (Rovell, 2006).

- Adidas has only a 3% market share (Sandler,2011).

- Adidas only has a 21.8% internation marketshare, which is less than Nike, and they arebased out of Germany (Van Riper, 2008).

- New Shackle Shoes are deemed racist bymany Adidas shoe wearers, and people are notbuying their shoes as a result (Roeper, 2012).

- Foreign labor creates CSR problems.

Opportunities Threats

- Adidas is beginning to break new ground ondistribution (adidas-group, 2012).

- The addition of cost-optimtimsation drives

profitability (adidas-group, 2012).- Adidas is adding customization and

personalization (adidas-group, 2012). This issomething that can compete with Nikesimplementation

- Enter the digital age of social media to campaignadvertisements behind players, even if they areinjured (Laird, 2012).

- Adidas has a rivalry with Nike/Jordan (Nike,2012).- Under Armour is rapidly growing in the

Basketball shoe market. They are attractingplayers out of college and have already signedbig named athletes in Blake Griffin andBrandon Jennings (Team, 2011). Basicallythreat of new entry.

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Adidas has a far smaller market share at 3%. With some high named endorsement deals

and innovative technology, Adidas has stayed somewhat competitive in the basketball shoe

market (Elfes, 2011). The AdiZero basketball shoe has proven to be the lightest shoe on the

market, thus differentiating itself from other companies.

On the flip side, Adidas has controversial issues surrounding their company, just as

Jordan has. For example, foreign labor has created Corporate Social Responsibility issues in the

past (Adidas-group, 2012). The recent release of their Shackle Shoes have been deemed racist

by many people too (Roeper, 2012). They are still struggling in the foreign market with a 21%

market share, even with them in the international market with them being based out of Germany.

When researching the new opportunities Adidas is exploring, they actually are looking to

expand just as Nike and Jordan have. For instance, selling customizable shoes and owning a

better distribution channel is on the agenda for Adidas (Adidas-group, 2012).

Being in the basketball shoe industry, Adidas has the same threats as Jordan, except they

are much more serious. Owning only 3% of the entire market, they have to be more concerned

about Under Armour passing them in the near future.

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Customer Analysis

1) Since 82% of NBA players are African American, it has been 9 years since Michael

Jordans retirement, and African American teens 20% more likely to spend more than

average teen for shoes, Winning Moments campaign can influence potential consumers.

A target market that Jordan Brand engages is the young, urban population. As the years

go by, it is becoming more and more important for Jordan Brand to keep the aura of Michael

Jordan fresh in the mind of young consumers. Any basketball fan that appreciates Michael

Jordan can also be influenced by this commercial, especially since its been years since his

retirement. As a result, the Winning Moments campaign was launched to display Michael

Jordans importance. It focuses around a fictional man named Leroy Smith, who took Jordans

spot on his High School basketball team (Google, Inc., 2010). Though the story is true, and was

what motivated Michael Jordan to become a Hall of Fame caliber player. Jordan Brand used

Google Display Network and used keywords to place their ads in relevant places such as niche

basketball blog sites . The campaign drew 296,000,000 impressions, 296,000 clicks, 6,000

Twitter Followers, and 11,000 Facebook likes (Google, Inc, 2010).

A study by Dr. Robert Lyons, Jr., concluded that African American Millennials spend

20% more on shoes every year than the average US teen. In this case, however, comfort, the

sequence of colors, and style are the most important factors in buying the shoes.This campaign

was used to put a positive influence of Michael Jordan in to the mind of a young, urban

basketball fan.

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2) Jordan Brands new social media focus is most beneficial to the Millennial generation,

who are 18-35, because 96% use social media sites (Social Media and Statistics, 2012)

The Millennial Generations athletes/sport enthusiasts and fashion conscious people may be

the largest target market for Jordan Brand. Ranging from men and women, ages 14-35, this

generation is extremely engaged in social media. For example, 82% of 14-17 use a social

networking site, while 60% of 18-29 years old use more than one (Petrusa, 2011). Expanding

social media advertising and interaction is an urgent objective for Jordan Brand, and enhancing

consumer communication can allow this market to grow even larger. Since Jordan Brand mainly

offers basketball shoes, it is helpful that A higher percentage of men (64%) watch basketball than

football, baseball, hockey, and NASCAR (SportsBusinessDaily, 2012). Athletes and fashion

conscious millennials make up a large portion of Jordan Brands consumer population.

3) With the addition of Larry Miller and the expanded NBA broadcast (215 countries),

Jordan Brands social media strategy and possible NBA partnership, Jordan will soon

target global basketball markets (Jesop, 2012).

The 2012 NBA Finals were broadcasted in 47 languages, and in 215 countries. The NBA

estimated they had about 278 million fans in international markets follow the Finals by using

Social Media (Jessop, 2012). With the emergence of a rapidly growing international basketball

market, Jordan has an opportunity to expand their market outside of the United States. To assist

them in this process, Jordan hired Larry Miller as their President of Jordan Brand. His job is to

expand the entire brand as a whole on to the global market (Nike Inc., 2012).

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Company Analysis

Marketing Objectives

1) By December 1, 2013, Jordan Brand will increase the supply of Retro Limited Release shoes

15%, and increase the price of these shoes $20.00. Jordan is expecting to increase sales

revenue by 10-15%, and continue to hold about 70% of the overall market share.

2) Initiate launch of Give and Go service and receive another 5-10% increase in overall

company revenue over the first year. Measuring the revenue the service brings in through sales

commission and initial fees, Jordan Brands goal is to increase their overall revenue by at least

5%.

3) With the application of multiple social media strategies, Jordan Brands goal is to build a

comprehensive database of over 500,000 people during the first year after the implementation.

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Product Analysis

- Strengths Weaknesses

- Jordan Brand owns the highest percentage ofmarket share (71%). Other than Nikes 22%,Adidas and Reebok own a combined 5%.

(Sandler, 2011)- People of all social classes are buying Jordan

Brand shoes (El-Omari, 2002). -Jordan Brand consumers are

extremely loyal.- Sponsorships with star athletes associate Jordan

Brand with greatness (Derek Jeter, Blake GriffinCarmelo Anthony, Chris Paul, Denny Hamlin,Georgetown University, Marquette University,Gatorade, Upper Deck, 2k Sports) -(Badenhausen, 2011).

- Established a motto that attracts people to theirproducts- Become Legendary (Nike, 2012)

- -Jordan brand hired Larry Miller to be theirPresident and drive a global strategy to expandtheir product sales in international markets (NikeInc., 2012)

-Products are produced in foreign sweatshopswith virtually no human rights and no bargainingpower (Midwest Today, 1997). Though better

than before, Public Relations took a big hit in thepast.

-The only non-African American individualathletic sponsor Denny Hamlin (Nike, 2012).

-Many retro released shoes are made with lessquality than the originals and are still pricedbetween $160-$185 (Snapp, 2012).

Opportunities Threats

-Advancing Jordan Brands relationship withNASCAR can help mesh the sneaker and racingindustry, especially after leading driver DennyHamlin signed a contract with them (Madden,2012).

- Social Media pages have three million followers.Using promotions to directly sell and gainpersonal information from consumers.

-Supply falls extremely short of demand- leavesopportunity to produce and sell more (Hill, 2011)

-Under Armour deemed 5th out of Americancompanies in 2011 growth. -63% increase in annual domestic sales(Mirabella, 2012)-

Under Armour- major endorsements (BrandonJennings, Cam Newton, Bryce Harper) (Team,2011)

--Many retro shoes are released in such a limitedquantity, crimes such as murders are beingcommitted to acquire them (Hill, 2011).

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Jordan brand has a vast number of strengths. The result of their strengths as a subsidiary

of Nike is that they have a 71% market share of basketball shoes (Nike, 2012). This eliminates

threats such as Under Armour, Adidas, and Reebok, who own less than 5% of the market. With

loyal consumers, top notch endorsements, and high quality shoes, there is little competition in

the market of basketball shoes.

With success comes consequences, however. Public relations can be a huge issue with

child labor and crimes that are caused because of their value and limited access (Hill, 2011). To

maintain the value and premium stance of the sneakers, increasing price and supply by 15%

could prevent instances of crime. Though the supply will still likely not come close to reaching

demand, people will have a better opportunity to purchase shoes for their retail price and sell

them without committing a crime.

Tapping in to the NASCAR market could prove to be a huge opportunity for Jordan brand

(Madden, 2012). Advancing in to this market can relate Jordan Brand to the racing industry, and

leads to potential success with the relationship. In addition, hiring Marketing guru Larry Miller

to lead a global expansion plan may increase popularity and add consumers in growing markets

such as China (Nike Inc, 2012).

Jordan brand has virtually no threats within the basketball shoe industry. Under Armour is

a growing company that has received a 63% increase in annual domestic growth in 2012

(Mirabella, 2012), and has signed many up-and-coming athletes that have aided their growth.

Since Jordan is a subsidiary of Nike, they basically own all elements of the supply chain from the

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warehouses, distribution channels, and actual retail stores. They possess almost all the bargaining

power

Marketing Strategies and Tactics

Promotional Strategies through Television

Strategy # 1 - Commercial(s) featuring celebrities

Jordan Brands Team Jordan really focuses on promoting Jordan products through

premium athletes. This strategy, however, focuses on the flip side of entertainment: celebrities.

Tactics:

Its objective is to feature high profile celebrities wearing and promoting Jordan

products, showing that the Brand is a fashionable product. In addition, this strategy is outside the

normal scope of Jordan commercials, which typically include the aspect of basketball Instead of

airing on ESPN, or breaks of a basketball game, Jordan Brand could use MTV, a network that

targets the millennial generation (James, 2011).

Footwear analyst Matt Powell calls Jordan a top-end, conspicuous-consumption brand,

and that top athlete endorsements such as Carmelo Anthony, Chris Paul, Derek Jeter, and Roy

Jones, Jr., are large role in creating that image (Mullman, 2009).

Celebrities such as, but not limited to: Jay-Z, Spike Lee, Ludacris, Eminem, Kanye West,

John Mayer, Justin Bieber, and Kim Kardashian could transcend the image of Jordan Brand

beyond basketball. Each one of these influential figures have been photographed wearing the

historic Air Jordan IV on their own account (La Puma, 2010).

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Celebrity endorsements and associations can provide credibility and legitimacy of a

product instantly (Sanders, 2010). Changing the perception of the product for people outside the

sports world could see the perceived value of Jordan Brand sneakers.

Evaluation:

To measure sales success, Jordan Brand will offer a mandatory survey for all online buys

in exchange for free shipping. When a consumer purchases shoes at an official location, the

receipt could include a link to the survey website. Providing a 10 percent discount to any one

who completes the survey would be the incentive behind providing the beneficial information

needed to assess the commercials influence.

Strategy #2 - Using ESPN to promote Jordan Brand

Jordan Brand will use a new relationship with ESPN to target the basketball fan and sport

loyalist market.

Tactics-

Promoting the Jordan Brand product on ESPN could lead to success. Broadcasting

commercials during basketball seasons during Sportscenter could be crucial because the show

averages about 115 million viewers every month (ESPN INC., Fact Sheet, 2012). In addition,

adding the Jumpman logo to the set of NBA Countdown would be another way to use media

to promote the brand. The show features former NBA players Magic Johnson and Jalen Rose.

This show leads in to a nationally televised game, which is also another option for promotion.

The objective is to market to people that are interested in the game of basketball. Though people

have different motivations for purchasing Jordan Brand shoes, Michael Jordan is one of the most

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prevalent figures in the basketball industry. Advertising on these specific shows can market

directly to basketball fans.

Evaluation-

Measuring success of the commercials can be viewed by looking at sales, Nielson ratings,

and social media responses to the commercial. A relationship with ESPN, the most profitable

sports network with a projected 8.2 billion dollar revenue in 2012, would just be another way to

show they associate with high quality businesses and investments (Greenfield, 2012).

Promotion Strategies using Facebook

Strategy #1 - Attaining valuable personal information of current/potential consumers

Through Facebook, Jordan Brand has an opportunity to use enticing giveaways and

sweepstakes as a method of receiving specific consumer information.

Facebook Background

Jordan Brands official Facebook page has over 2.6 million likes, which is basically a

business version of friends. When a Facebook user likes the page, the brands updated posts

appear in those users feed or timeline the second they are posted. Jordan Brands target

audience can be found by simply looking at the people that liked the page. Facebook is free, and

the business is able to communicate with their target market without cost. Fifty-four percent of

users use their phone to access the site, and the average user (of the 901 million users) are using

Facebook for nearly 8 hours total per month (Pring, 2012).

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Tactics -

Through Facebook, Jordan can hold weekly contest and give away a pair of the most

recently released sneaker to the ten most deserving people. For example, the challenge may read:

Veterans Day is a time to pay respect to our Soldiers. We are giving away the Jordan Cool

Grey Retro IXs to ten fans that display the most American Spirit while wearing a Jordan

product! Click the link below to enter to send us your picture and information. Winners will be

eligible for our grand prize: An all expenses paid trip for four to the NBA All Star Game and

the chance to meet Michael Jordan!

To be able to send the picture and enter the contest, the fan must first answer multiple

questions that will provide valuable information about themselves. For example, fans must

provide their full name, address, email address, and select their interests from the list provided.

Finally, the last question or two would ask them how they feel about an idea Jordan Brand is

thinking about implementing. By doing this, Jordan Brand is given a huge marketing advantage

because they are able to understand their consumers and target market, market to people

differently based on their interests, and send promotional emails. All of this information is gained

at a relatively low price, considering the use of Facebook is free. They produce their own shoes

at a low cost, and the trip will cost only $2000-$3000, which is an extremely low cost in

exchange for the valuable information of potential repeat consumers.

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Evaluation:

The results of the contest and survey can be measured through positive responses via

Facebook posts and by measuring the number of people that took advantage of the additional

promotional offers that were emailed to them. Overall, this promotional idea is extremely

inexpensive, and extremely valuable.

Strategy #2 - Providing link for purchase

When Jordan Brand posts pictures of released shoes, adding a link under the picture is a

method to influence immediate sales.

Tactics-

Jordans Facebook page provides many pictures of the most recently released shoes. For

instance, a picture of the Super.Fly Jordan shoes was posted, and over 11 thousand people

liked it (courtesy of Jordans current Facebook page). However, there is no link to be able to

buy the shoes. Instead of making the consumer go to an official Jordan suppliers site

themselves, or even a secondary site where Jordan does not benefit, providing a link that takes

the consumer directly to a supplier of their choice could increase sales. The link would look

something like :

Click on your preferred store to buy:Foot Locker Finish Line Champs EastBay

This addition to the Facebook page is free, and can lead to a sale that may not have been

there otherwise. The same idea could be used for the mobile App, except the initial link may

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just say Buy, and then a tab with the store list will appear after. The objective of this

implementation is to add another possible way to make a sale.

Evaluation:

To evaluate this objective, one may view the number of hits the link receives, and the

number of shoes that are bought using this method.

Promoting through Expansion of Twitter

Strategy #1 - Gaining Followers

As of 2012, about 500 million people have a registered Twitter Account (Statistic Brain,

2012). The problem is, however, getting people to follow Jordan Brands official Twitter

account, which has 451,00 followers compared to Facebooks 2.6 million. Capitalizing on

Twitter as a free promotional tool, like Facebook, can spread awareness and enhance the brands

image.

Tactic #1-

One way topromote Jordans official Twitter account is printing the handle

@JUMPMAN23 on every box of shoes and sales tag of other apparel they produce. On the side

of the box or the tag, Jordan Brand could print:

For promotional sales, release dates, and news, follow @JUMPMAN 23 on Twitter.

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Jordan Brand has an annual revenue of one billion dollars, and printing the hashtag of

their Twitter account on every item they produce is a way to increase the number of followers

they acquire. Any poster or billboard that Jordan uses to promote their products could include the

hashtag, as well. If the consumer knows what the @ stands for, then it is safe to assume they

understand that it is the hashtag to the Twitter account.

Overall, building a relationship between the product and Twitter handle can ultimately

increase the awareness of the @JUMPMAN23 account.

Tactic #2-

A second way to acquire followers is to post the direct link to the account on Jordans

official Facebook page, multiple pages of the official website, and in the description of all Jordan

products that are sold online from official suppliers. One click from the consumer or potential

buyer will take them directly to the Twitter account, where they have the opportunity to click

follow. Also, in exchange for the direct link to their site on Facebook, the official Twitter pages

of the suppliers can include the handle @JUMPMAN23 when promoting a Jordan product.

The symbol # is often used on Twitter as a function called a hashtag.

The idea of the function is to form a network between people who are tweeting about the

same topics. It groups people together. For example, if an extremely limited shoe is being

released, one may find that #jordan or retro is trending. The function of bringing people

with the same interests to the official Jordan page is another way to have potential consumers

follow the business. Overall, promoting the hashtag and common trend by using the internet is

another way to Jordan Brand can gain followers.

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Tactic #3-

Lastly, requiring TeamJordan athletes to include the hashtag @JUMPMAN23 and the

trending topic #TeamJordan in their Twitter and Facebook profiles could be beneficial in

attempting to gain followers. After visiting the Twitter page of Carmelo Anthony and Chris Paul,

one can see that they have about 2.6 and 1.5 million followers, respectively. Carmelo Anthony

plays in New York, and Chris Paul plays in Los Angeles, which are two of the largest markets in

the United States. The amount of views their pages get are not limited to their followers. Their

pages are both public and can be seen by every one with internet access. If both of these players

send one tweet with the hashtag and trend of the Jordan Twitter page, it is guaranteed to show up

on over four million peoples timelines. It is common for prominent athletes to be retweeted by

fans, where the message spreads to an even larger audience. An example of this is Carmelo

Anthony sending out a tweet that says:

Look at what Im wearing thanks to @JUMPMAN23! #TeamJordan

One tweet can spread awareness, and enhance arousal. This tweet has the potential to

motivate current and potential consumers to click the link to the Jordan Brand page, and possibly

even purchase the shoes. The results can be measured by the amount of followers the

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@JUMPMAN23 official Twitter page gained hours after the tweet was posted. In addition, as the

player(s) accumulate followers, more people will have the opportunity to click the link which

would always be located in the player(s) profile on their page.

Strategy #2- Creating an interactive environment for communication of Jordan

consumers

Tactics #1-

It is possible for Jordan Brand to tweet to fulfill an objective. Jordan could simply tweet a

question to its followers to see what peoples feelings are about a certain product. For example:

What is your favorite colorway of the Retro IV sneakers?

By using the market research, Jordan Brand will be able to group the people that responded by

demographic, location, and other factors. By using this strategy, it is possible that there is an

overwhelming favorite that most people prefer or that different regions of the country prefer

different colors. Once this information is concluded, Jordan Brand can make the decision on

what color to release. It also creates the possibility of releasing one color for one region, and a

different color in another region. This allows Jordan Brand to market directly to their

consumers wants.

Tactic #2-

Athletes of #TeamJordan obviously compete in Jordan products. To enhance the image of

the athlete, who represents the product, highlighting the athletes accomplishments is a way of

building an association with success. A potential tweet that exemplifies this is:

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WHOA! Another highlight reel dunk for @blakegriffin. We are proud to have him as a

member of #TeamJordan!

With this specific tweet, Jordan Brand is publicly praising Blake Griffin for a dunk that

not many other people can do. Associating him with Michael Jordan is a way of showing that

they endorse very talented players, which is a strategy to increase the already high perceived

value.

Incorporating the members of Team Jordan in the social media strategy is also a way to

market to fans of specific teams and players.

Tactic #3-

Lastly, Jordan could retweet a fan that tweets something unique to them. Doing this is a

way of making their followers an actual part of their business. If other followers, or people on

twitter, see that Jordan retweeted a normal fan, they will be more likely to communicate with

Jordan themselves. Retweeting a large amount of followers, that are not Team Jordan athletes,

takes away from the prestige of those followers that are retweeted. Jordan may retweet, for

instance, two fans a day to implement this strategy. If they retweeted 20 people, this strategy

would not have the same effect, because Jordan is a business that values quality over quantity.

An example of a tweet from a follower that could be retweeted it:

Hey @JUMPMAN23, check out my trophy case!

This follower attached a picture to this tweet of his shelves filled with Jordan I-XXIII.

This is a loyal follower, that has gone above and beyond the typical current consumer to prove

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that he is worthy to be associated with Team Jordan. Since all of the Jordan followers are able to

view this picture, it could motivate them to try and do something worthy of Jordans retweet.

New Product Development

Give-and-GoUsing technology to create a new service, with the idea of capitalizing on lost sales

revenue.

Over the past few years, many applications for mobile phones have developed. Some go

as far to say, Theres an app for everything, sarcastically, of course. Jordan enthusiasts, in some

cases, become dealers. These people are nicknamed sneakerheads. They wait in long, endless

lines to be able to buy limited release shoes at retail price. Obviously, the smaller the supply is,

the higher the demand is. For example, the Concord Jordan sneakers were extremely limited

and sold for $180 retail. The next day, they were on a secondary market such as Ebay the next

day. Though Jordan sells out of their limited shoes, they cannot stop people from being resold

(Marritz, 2012). In comparison, TicketExchange by Ticketmaster allows an owner of a ticket

to sell a ticket through the official teams website (ticketmaster.com). This partnership with the

league allows the team to be involved in its resale.

There are many blog sits that sneakerheads go to communicate with each other and stay

up to date with the newest releases. Websites such as, but not limited to, KicksOnFire.com,

NiceKicks.com, and TheShoeGame.com update sneaker enthusiasts about release dates, and

create relationships with people to buy and trade sneakers. They do not have apps like

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professional sports teams, though, that give updates and information about their product. The

Sacramento Kings (SportsBusinessJournal, 2012) are the latest team to develop a mobile app that

works in the same manner as their website.

The technological advances with mobile applications and resale are still continuing to

grow. As part of that growth, Jordan Brand could develop a website and app that works partly

like a social media site, and a resale site too. The App and website will be called Jordan Give

and Go. Since a vast amount of websites exist that are social media, and also many sites that

blog about sneakers, combining the two could work magically. The social media section of the

website and app will both be free of charge. Each user will have to create a profile with all the

information that they would like to include. The users are able to put up their own ads on their

profile with full descriptions of the shoes they are looking to sell or trade. In addition, they must

include the shoes that they are looking to buy, or indicate their shoe interest. This function is

similar to trends in twitter, where people are linked based on what they are looking for. The

website will be able to compare people based on their provided information, and provide a list of

suggested users that are similar to them. Jordan will provide Insiders that will write updates

and stories on the home page of the app/site. These insiders can be viewed be any user.

For the actual resale portion of the App, users must create an account with Jordan Brand.

The user has payment options for this section. They can choose to pay $10 for a single month

use, $35 for six months, or $50 for a full years access. Every user must create an account, where

the credit/debit card information is saved from the activation payment. The account is used for

fraud protection. If a buyer purchases shoes from a seller, their card on file is immediately billed

and put in to the Jordan account. Once the shoes are verified to be authentic, or 48 hours without

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any verification, the money will be transferred from the Jordan account or to the seller. The

process of buying or selling shoes goes directly through Jordan. The shipper must provide

shipping to the Jordan headquarters, where the shoes will be judged by expert shoe analysts. If

they are deemed authentic, Jordan will send them directly to the buyer. The cost of shipping this

time is included in the transaction fee of 3%. If they are unauthentic, the shoes will be shipped

back to the seller. In this case, the money will be refunded from the Jordan account to the buyers

account. The sellers account, is charged a $100 penalty for having the shoes judged as

unauthentic. All terms and conditions of the resale process must be accepted to create an account.

For any user, light or heavy, Jordan guarantees the sale of authentic sneakers on this

secondary marketplace. The Jordan app and resale website helps people with the same interests

communicate with one another, and creates one large marketplace for people to sell or trade

shoes from all over the world. This app is just another way that Jordan can make money off of

their products, even after that already sold them. The success can be measured by the number of

users that spend money to buy and sell their product, and the profit Jordan Brand makes off of

the resale. The success of the App may take time because it will needed to be promoted and must

go through a trial and activation phase.

Building a partnership with NBA to promote Jordan Brand

The NBA and Jordan could meet on a merchandising contract for certain merchandise

that is not already licensed by an official sponsor. For example, the right to associate the NBA

logo with the Jordan logo can be a groundbreaking business deal. For example, the NBA logo is

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on every uniform, which is sponsored by Adidas. However, NBA merchandise such as head

bands and socks are not officially licensed by anyone other than the NBA itself.

Jordan Brand could provide head, arm, wrist, and knee sweat bands. In addition, they

could provide socks, as well. In return, Jordan would be included on the Official Sponsor list

of the NBA, and have their logo promoted through players using their products. The only Jordan

product that can currently be worn on the court are shoes. When the camera focuses in on a

player that is wearing a head band, the logo is clearly visible. The NBA would not have to pay

for these items anymore, and will provide Jordan with advertising opportunities on NBA.com,

NBA TV, and other NBA owned media outlets.

For the NBA, having another business that will be willing to bid for the uniform rights at

the end of the current contract could result in increased revenue. Now that Jordan is able be an

Official Sponsor through the NBA, growth can lead to increased ownership.

Since the NBA is dedicated to expanding globally, as well as Jordan Brand (Nike., Inc.), a

relationship with the NBA could help attain the same global success. Since Michael Jordan is the

most recognized athletes, the NBA could use the Jordan name to help spread awareness to

potential fans (Miller, 2011). The NBA Finals was broadcasted in 215 countries and 278 million

people followed the Finals through social media (Jessop, 2012). The partnership, which could

also be utilized for free through social media, can aid in expanding the game of basketball and

number of Jordan consumers.

Overall, the advertising that Jordan could receive all over the world by providing game

gear to NBA players is a strategy for globally expanding. If the NBA could use the official

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Jordan name in their global strategy, both businesses have the ability to profit from the

partnership.

Restoring Popularity Among Newly Released Sneakers

By wearing Jordan Brand shoes, especially during Michael Jordans career, the consumer

was making a statement. Lacing up the newest pair of sneakers, and paying roughly $100 to do

so, was a way of identifying with the NBAs greatest player. Purchases were made through

emotion and a symbol of status (Petrina).

Today, Jordan Brand is looking to restore that emotion. Jordan President Larry Miller

says, "The goal is to get the brand to be hot today and not just the products that were sold in the

past" (Sprinkle, 2012). Take the Jordan XX8 for example:

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Scheduled to be released on February 16th, 2013, the new design is raising many opinions. The

shoe is extremely light, and includes a neon green tongue. Whether people like it or not, it is

drawing similar attention to the shoes that were released during Michael Jordans career.

Implementation and Control

Public Relations-

Though Jordan Retro shoes are always priced from $160-$180 retail, some shoes are

more limited than others. The supply of these shoes is in direct relation to the actual value,

especially on the resale market, where shoes can sell from hundreds to thousands of dollars. As a

result, it is extremely difficult to purchase these shoes for the retail price. In response, consumers

respond by using violence to attain the shoes.

Increasing the supply is Jordans response to prevent these crimes from taking place. To

improve the image that was impacted negatively, and decrease the number of violent occasions,

Jordan Brand is including a wrist band that reads Life is No Game. Stop Violence. After the

commercials that involve celebrities and athletes, this message will appear alone on the screen

for roughly three seconds.

ABC News Christina Ng wrote an article about violence that occurs because of the high

demand. By announcing this new promotional strategy, Jordan Brand is responding to this claim.

The PR team will go directly to all major news networks and newspapers to talk about the

implementation of this strategy. Michael Jordan will be the leading spokesperson for the

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campaign to increase awareness. There is a possibility for free, good publicity in this promotion

because Jordan Brand is taking a step to help prevent crime.

This activity can be measured more than one way. First, comparing the sales revenue of

limited release shoes before and after the implementation. Next, comparing the crime statistics

associated before and after the change is made can indicate if the change improved consumer

behavior. Finally, reviewing the tweets and posts to the official Jordan social media pages can be

a measure of the consumer response to the implementation. The @JUMPMAN23 official

twitter page currently has 442,000 followers and Jordan facebook page has almost 2.7 million

likes, which allows people to read company posts.

Social Media Response-

As a tool of measure, social media is a way of analyzing consumer satisfaction and

responses. In addition, it can be used as a vital tool in segmenting people. By separating

followers and friends by their age, race, location, and other characteristics, Jordan Brand can

continually modify their promotional efforts. Thus, consumer responses are able to be clearly

accessed. With the new pricing and supply objective, social media is a direct tool to measure

consumer satisfaction.

Advertising Budget-

Jordan Brand is a subsidiary of Nike. Over the past four years, Nike has cut their ad

budget nearly 40%, and now spends the majority of their money around nontraditional

marketing (Cendrowski, 2012). Though Nike does not make Jordan Brands advertising budget

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public, it is clear Nike is focused on social media and online advertising. Even if just one of the

commercial campaigns could exist, celebrities or ESPN, the opportunity for social media

advertising has led Nike their highest annual revenue of all time: 21 billion dollars (Cedrowski,

2012).

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