Nike FuelBand Presentation
-
Upload
hilary-zwart -
Category
Documents
-
view
187 -
download
2
Transcript of Nike FuelBand Presentation
PowerPoint Presentation
FUELBAND
FUELBAND
(Video)
FUELBAND
FUELBANDMission Statement:
Nikes Mission Statement:To bring inspiration and innovation to every athlete in the world
Fuel Band 2: To provide active and adventurous adults with a highly reliable fitness tool that accurately collects data and analyzes physical activity
FUELBANDOrganizational Data:Headquarters located in Beaverton, Oregon
High brand equity (quality, reliability and comfort)
Dedicated consumer pool
Global production
Global distribution chain
Product development done in close collaboration with athletes
High sponsorship desirability
FUELBANDCurrent 4 Ps
FUELBANDPrice
Currently retails for $40 - $60
Maintain price post redesign
Increase sales to leverage
marketing and relaunch
FUELBANDProductFirst edition doesnt meet the criteria needed to compete
Redesign product to accommodate different sports
Current edition gives Nike Fuel points which advised user of overall fitness completed
FUELBANDPromotionBegin by creating awareness among Nike consumers, specifically Fuelband users
Expand target market. Original appealed to runners only but redesign will allow other athletes to be targeted.
FUELBANDPlaceDistribution through:
Direct Marketing Internet, Call-in, Magazine sales
Specialized sport stores
Gyms
Electronic retail stores
FUELBANDFinancialsIn 2015, Nikes revenue was $30,601,000Gross Profit was $14,067,000Their profit Margin was 11%The growth rate is 13.02%
Sales by segment in 2015 (millions)
Footwear = 8,506.00
Apparel = 4,410.00
Equipment = 824
Source: http://www.nasdaq.com/symbol/nke/financials?query=income-statementhttp://www.statista.com/statistics/241706/nikes-us-sales-by-product-category-since-2007/
FUELBANDProduction Management785 contract factories (at least one on every continent)
Over 1 million factory workers
Over 500,000 different products
Sold in over 170 countries
Incentivizes lean manufacturing
Increasingly sustainable supply chain
Source: http://www.ebay.com/itm/like/222049755552?lpid=82&chn=ps&ul_noapp=truehttp://about.nike.com/
FUELBANDResearch & DesignHeart rate monitor
Different workout categories
Additional accelerometers to accommodate differentsports
Improve FUEL point system, with online sharingplatforms
FUELBANDInformation TechnologyNike is heavily dependant on their information technology
NoSQL technology
Virtual systems model
Agility company model to maintain data
Source: http://www.slideshare.net/AmazonWebServices/arc308-nikes-journey-into-microservices-aws-reinvent-2014
FUELBANDExternal
http://yourbusiness.azcentral.com/environmental-factors-affect-marketing-decisions-22203.html
FUELBANDIndustry Analysis
Valued at $2 Billion in 2014
Expected to reach $5.4 Billion by 2019
Dominated by FitbitSource https://rctom.hbs.org/submission/fitbit-find-your-fit/
FUELBANDCompetition & SubstitutesFitbit, Jawbone Up, GarminVivosmart
Smart Watches Have the potential to cannibalizefitness trackers
Substitutes Pedometers, Smartphone Apps
http://www.post-gazette.com/news/surveillance-society/2015/08/03/Surveillance-Society-Wearable-fitness-devices-often-carry-security-risks/stories/201508030023
FUELBANDMarket Segmentation
Source: https://www.npd.com/wps/portal/npd/us/news/press-releases/2015/the-demographic-divide-fitness-trackers-and-smartwatches-attracting-very-different-segments-of-the-market-according-to-the-npd-group/
FUELBANDSocial Trends
Rated at a 24% adoption rate in the US in 2013Reached 30% adoption rate by the end of 2014Forecast of 135 million device shipments to be made in 2018Up from 9.7 in 2013
Source: http://www.wareable.com/fitness-trackers/fitness-tracker-market-to-top-dollar-5-billion-by-2019-995https://www.statista.com/chart/2682/most-wanted-smartwatch-features/
FUELBANDEconomic EnvironmentEconomic changes could result in an increase or decrease in production cost
The Economy on the upswing lends itself to an increased demand for luxury goods
Source: http://www.economist.com/blogs/graphicdetail/2015/12/daily-chart
FUELBANDTechnological Environment
Improved Technology
New Innovations
Moving strictly to phonetechnologyhttp://gizmodo.com/5401391/the-seiko-uc-2000-wrist-pc-an-awkward-80s-attempt-to-live-the-cyborg-life
FUELBANDLegal & Regulatory EnvironmentManufacturing
Counterfeits
EPA has lowered standards
http://bizarreculture.com/fake-it-till-you-can-make-it/
FUELBANDPolitical EnvironmentLabor Issues
Political pressure fromoutsourcing jobs
Dealing with internationalgovernmental bodies
http://www.nytimes.com/2015/05/08/business/obama-chooses-nike-headquarters-to-make-his-pitch-on-trade.html?_r=0
FUELBANDSWOT Analysis
StrengthsExisting partnership with Apple onNike+ Line
Current Endorsements
Manufacturing Plants
Brand Equity
SponsorshipsUniversitiesProfessional Team
FUELBANDSWOT AnalysisWeaknessesCurrent Market Share within fitness bandFailure to gain traction with first band Not waterproofUnmeasurable Fuel countUnable to choose from multiple activitiesView of Nikes manufacturing plants
FUELBANDSWOT Analysis
OpportunitiesSports-band market shareMulti-sport capabilities non-existent in marketTechnology is growing allowing for smarter and smaller techEndorsers can wear band in game and can be used as an advertisement Stream live updates during event
FUELBANDSWOT Analysis
ThreatsSold at a higher price while doing the same thing as other devices Current Market Share of FitbitDifficult market penetrationWorld Economy Growth in smartwatch capabilities, market
FUELBANDMeasurable Objective
Increase sales - Increase sales by 50% within 12 months.Improve Fuelband awareness - Increase website visits by 300% within 12 months.Increase market share in the domestic market to at least 30% by the end of FY17.
FUELBANDMarketing Budget
Nikes FY15 revenue was $30.6bnMost of high budget marketing will be taken care of through current dealsFY15 Demand Creation budget was $3.2bnWill increase by 10% to account for new product marketing
http://www.highsnobiety.com/2015/06/27/nike-records-30-6bn-revenue-for-fiscal-2015/
FUELBANDMarketing Mix
FUELBANDProduct
A fitness/sport tracker that fulfills the more athletic consumers needs
Multi-Sport CapabilitiesBasketball, Baseball, Golf PotentialCan be used as a GPS run trackerCan be used to track steps, swings, sleep and translates to app on any devise
FUELBANDProduct
Does not require the phone/computer to be within reachSets apart from the competition through full sport trackingLED displayTap on band to change sport currently being used for
FUELBANDPrice
The product will be introduced using the Premium Pricing strategy
The cost will be introduced at $199.99 - matching a lot of smartwatches currently on the market
This premium cost will attract customers with their belief and knowledge of its higher value
FUELBANDPlacement
Distribution will be done through multiple retailers
Electronics stores - Best Buy, Walmart
Pay for premium placement in stores, near front of locations
Sports retailers - REI, Sports Authority, Dicks Sporting Goods
FUELBANDCreative StrategyThe message we are trying to land:
Directly to athletes
Athletic band not just a pedometer
Introduce the ability to track multiple activities
FUELBANDPublic RelationsCause related ads and partnershipsPartner with the V FoundationHas been around for 20 yearsESPN Devotes a month to bring awarenessAlso involved in walks & runs
Special OlympicsNike provides over 400 volunteers to the Special OlympicsAlso provides gear for contestantsHanding out free FUELBANDS to contestants to wearduring Olympics
FUELBANDDirect Marketing
Display Ads Interactive ads, Banners, Pop ups and videos submitted by usersFacebook Social Media (Groups & Contest)
Twitter MusicAds on Spotify fitness clubs
FUELBANDPersonal Promotion
Through sponsorships and endorsementswe will:Distribute to college athleticsCompete with friends in other sports
FUELBANDAdvertising WITHOUT A GOAL, YOU CANT SCORE
FUELBANDNewspaper AdvertisingAdvertising in newspapers will be a small portion of overall mix
Using USA Today, New York Times, Washington Post
Full page ads placed within sports section
FUELBANDMagazine AdvertisingPlace ads in:Sports Illustrated ESPN MagazineMens HealthShapeOxygen
FUELBANDTelevision Ads
Camera zooms in on athlete and says That counts
Screen goes black with
#Makeitcounthttp://time.com/78223/nike-mark-parker-fuelband-wearable/http://www.bnwpix.com/hair-style/aGFpci1zdHlsZQ/
FUELBANDRadio AdvertisingNike currently spends about 5% of their overall marketing budget on radio ads
Using intergraded sponsorshipsthrough sport radio shows
Dan Patrick Radio show
FUELBAND
Thank You And Make it Count
#Makeitcount
FUELBAND