Marketing Plan
I need two pages for CUSTOMER ANALYSIS (Check Banana Republic Fit - SAMPLE FINAL REPORT) Page 1: Market Size & Consumer Behavior Page 2: Forecast & Discussion of Marketing Challenges and Opportunities Hypothetical Concept Nike x Oceana collaboration
Introduction
After Nike was founded in 1964 by Bill Bowerman, the company has distinguished themselves as a market leader for all athleisure wear, footwear, and accessories. Nike was built on innovation, product- development, fashionable trends, and marketing endorsements by major athletes such as Michael Jordan. As consumers are becoming more aware of sustainability and the effects of their carbon footprint; we believe that Nike should collaborate with an environment based nonprofit to uphold their sustainable and trusted reputation. In which, the nonprofit Oceana whose vision is to “seek to make our oceans as rich,healthy, and abundant as they once were” would be a smart marketing decision for both companies. Throughout our proposal we give deeper thought on our marketing plan that will include our marketing research along with external and internal analysis regarding this collaboration. Environmental Context/ Background of Problem:
With oceans making up 71% of our globe, there is a strong emphasis for consumers and businesses to be socially responsible for maintaining the ocean’s health. Oceana states, “The oceans are vast, but they are not immune to human influence. We have already altered or destroyed marine ecosystems and driven million-year-old species to the brink of extinction.” Society as a whole has progressively destroyed these oceans and changes need to be made soon. In a study by Science only four percent of the ocean remains unaffected by humans. Humans are becoming more aware of environmental issues by the popular outlet of social media. It has given society a platform to share pictures, videos, news articles and more about issues occurring worldwide. With so many posts now going viral, consumers are taking more conscious steps to help the ocean. The National Geographic suggests stopping the use of plastic and that consumers purchase reusable straws or paper ones given by restaurants.
Nike as a whole is making changes and has a campaign “Nike Move to Zero” with a mission that states, “We exist to serve athletes everywhere and that’s why we’re on a mission to help ensure a healthy planet.” Nike understands the importance of helping the planet and that staying healthy is a key factor in why it is beneficial for both Nike and Oceana to collaborate on
a clothing line. The reason being, “studies show consumers want socially responsible businesses and will actually choose these companies over their competitors. They may even seek out responsible products and services as alternatives. Up to 66 percent of consumers are willing to pay more to a company that reflects these values' ' (Dolye, 2018). With this collaboration it could lead to a spike in sales and consumers will feel better making purchases knowing that a portion will be given back to Oceana Nonprofit.
This collaboration is beneficial to spread awareness of Oceana and their mission and will inform consumers on how they can do their part. For Nike this would lead to great CSR, help tackle their campaign Nike Move to Zero, and increase in profits. Nike will have to uphold their fashionable standards, so this would be a priority when designing the clothing line.
Problem Identification: Extreme competition: The main problem with the Nike x Oceana collaborative clothing line is the intense competition that surrounds the fashion industry as a whole, and more specifically the market for athletic clothing. There are many athletic companies that have come out with sustainable clothing lines to support the prevention of climate change, Adidas for example. Adidas did a collaboration with the organization, Parley for the Ocean, where they took plastic from the ocean and recycled that to make shoes. Adidas and Parley for the Ocean were incredibly successful with the launch of this collection, with an expected $1 billion in revenue. We are a different type of collaboration than the Adidas x Parley for the Ocean since we are not taking ocean waste and recycling it into new products, but we need to differentiate ourselves and make this collaboration unique to stand apart from other similar competitors. Pricing: Another issue surrounding this collaboration with Oceana is the increased pricing of our products. Nike shoes typically fall between the prices of $90 to $110. Since we are making products in collaboration with Oceana, we will increase our price point. Our price point won’t be dramatically increased, it will just raise by about $10 to $20 depending on the product in order to raise as much money for the campaign as we can. Target Consumer: Athletes of all ages that are conscious and passionate about the healthy state of the environment around them. Benefits: Having the option to make a difference with what a person wears. Being able to know and spread the name of Oceana proudly.
Comparative Claims: Other brands don’t always have the environment in mind when coming up with new products. Through this collaboration, Oceana’s name will be plastered wherever Nike is and spread through different countries and nations. Consumption: While still buying a quality name brand item, consumers can make a change, big or small, by just sharing the name on their back. The beauty of word of mouth advertising and marketing is that it can never be foreseen who will hear of it next, be it local friends and families, companies looking for nonprofits to sponsor, or billionaires wanting to throw their money at a good cause. Marketing Challenge: The main marketing challenge to pay attention to is making sure customers understand that these products in the collaboration are not made of recycled materials. This collaboration is solely to spread the name and create awareness for the nonprofit Oceana. There could be major backlash if consumers are under the impression they are buying products made of recycled materials and later on find out that they are not. Secondary Data Collection: Due to time and unfortunately a worldwide disease, will we gather data from secondary sources. We plan to investigate all external and internal analysis regarding Nike and other brands in relation to ocean pollution and consumer behavior. During this research, we hope to find out: -What is our most useful target market?
How old are they? What is their lifestyle like? -Why do consumers purchase Nike over other sport brands ?
What are the motives when purchasing sportswear? (Looks, Exercise, Ethics) -How frequently do consumers purchase sportswear?
Loyalty to a brand? -What are their most concerning environmental issues today?
How concerned are the consumers about ocean pollution? -What advancements are being made from recycled pollution? The research will help us create a marketing message for today’s consumer and the next generation. With the statistics from gathering all secondary data, we will have an overall report on how to market both the brand and the organization to become a successful collaboration in regards to corporate social responsibility and brand value.
References: How Nonprofits Can Build Partnerships with Businesses. https://trust.guidestar.org/how-nonprofits-can-build-partnerships-with-businesses History of Nike: Timeline and Facts https://www.thestreet.com/lifestyle/history-of-nike-15057083 Nike https://about.nike.com/pages/airmi-sustainability https://oceana.org/what-we-do