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Victoria by NikexBetseyJohnson A Marketing Plan Presented to the The Faculty of the Marketing Department In partial fulfillment Of the course requirements In MARKET1 Jan Daniel M. Ang Sarah Ann S. Cruz Jeniley J. Dumlao John Derick E. Flores Janelle P. Gollaba Joyann C. Lim Clarisse Abelle Marie R. Patricio Sarah A. Quetua August 27, 2012

Table of Contents Page I. Executive Summary II. Current Marketing Situation Analysis A. Industry Study B. Current Product/Brand Situation 1

C. Competitive Situation III. SWOT Matrix IV. Goals and Objectives V. Marketing Mix Strategies and Programs A. Market Targeting B. Product Development/Innovation Program C. Pricing Program D. Sales and Distribution Program E. Marketing Communication Program 1. Advertising Program 2. Sales Promotion Program 3. Public Relations Program VII. Investment Plans VII. Estimates of Profitability VIII.Evaluation of Results

I. Executive Summary The Victoria shoes is a product of Nike in collaboration with Betsey Johnson that is not only athletic but also fashionable. It aims to incorporate fashion to athleticism. It also aims to address the demand for shoes that can only be worn for sports. This is to develop a pair of shoes that will cater to the needs of the women today who are very much inclined to fashion. The target market are young Filipino women,aged 15-25. Nike plans to expand and improve its sales and distribution program through building more branches especially in the provincial areas to tap potential market. Retail stores would also be increased for sales boost and reach further secondary markets. Victoria by Betsey Johnson will feature known Nike footwear technology such as the Nike Air, Lunarlite, and Foamposite technology. All of these will add to the

effectiveness of the shoes overall performance, as an athletic shoe, casual shoe and fashion-statement-shoe. The marketing communications program used both traditional and non-traditional techniques of advertisements. Magazines, newspapers, television, billboards, Youtube, Facebook and social networking sites were used as platforms for advertisements and promotional activities. In the investment plan portion, the advertising expenses were determined to be P 12,615,000, which followed the short-term advertising goal, which was to have less than P 15 million advertising expenses. On the other hand, promo expenses amounted to P 1,730,000, production expenditures to P 1,745,300 and research expenditures registered P 100,000, a total of P16,191,220.00 in investment plans. Despite the product is at its introductory phase, the net profit equalled to P 9,257,034. It showed that the plans resulted into a relatively high profit during its first year.

II. Current Marketing Situation Analysis A. Industry Study Composition/ Size/ Market Segments Nikes new product Victoria will be available both internationally and locally, but it will focus more on the local market. Usership Patterns/ Significant Buying Habits In general, consumers are spending less for athletic footwear. The current industry is very focused on casual, comfortable and fashionable shoes. Although athletic footwear sales appearance is yet to be recovered, the demand for shoe is still leaning towards the flats casual footwear with a comfortable yet rugged design. This is because of the increasing number of workplaces adapting casual dress codes. However, Victoria a Nike shoe designed in collaboration with Betsey Johnson is not just an ordinary athletic footwear, but it is also a fashionable shoe wearable in different workplaces. Growth/ Decline Patterns

Overall, sales in the athletic footwear industry remain stable throughout the year. Typical trends in seasonality appear for spring apparel, the back-to-school season, and the Christmas holiday season. The athletic shoe industry is a challenging and saturated market. Intense competition among athletic shoe industry, fashion trends, and price conscious consumers have slowed down the growth of this industry. Manufacturers are battling against the sluggish sales with radical new styles, along with offering more styles at a lower price. Nike is searching for a newer ways or strategies to boost sales by capitalizing on the sales of store retailing to consumers. Nike is also increasing its profit by transferring production to cheaper offshore facilities. This segment has reached a point of introduction in the local market and can look forward to only modest sales growth for the long term. However, sales are improving slightly, especially in the launching of the new product of Nike which is the Victoria. Therefore, Nike will increasingly turn to expand its market for growth. B. Current Brand Situation History Nike, formerly known as Blue Ribbon Sports, was founded by track athlete Philip Knight and his coach Bill Bowerman in January 1964. The company works as a distributor for a Japanese shoemaker, Onitsuka Tiger. The Blue Ribbon Sports opened its first retail store at Santa Monica, California in 1966 with the help of its first employee, Jeff Johnson. In June 1971, the first soccer shoe that was released in the summer was named Nike. Nike was derived from a winged Greek goddess of victory. In 1978, the company officially renamed itself as Nike. And the Swoosh logo was designed by Caroline Davidson. By 1980, the company had reached half of its market share in the U.S. athletic shoe market. Nikes growth was caused by the wordof-foot advertising, which runners advertise Nike products by simply wearing it and talk to their friends about it. Also, Nike created its own television ads for improvement. Dan Weiden helped Nike to make its ads. He also created the slogan Just Do It for the Nike ad campaign. The slogan was included in one of the top five ad slogans in the 20th century. In the 1980s, the company started to expand its product line to involve other sports activities and areas around the world. Nike had designed footwear and apparel for golf and soccer for a number of years, the mid-1990s signaled a commitment to truly excel in these sports. In 1994, Nike signed several individual players from what would be the World Cup-winning Brazilian National Team. In 1995, Nike signed the entire team, and began designing the teams distinctive uniform. Nike also signed the US mens and womens national soccer teams, as well as dozens of national teams around the world. In 1996, Nike Golf landed a vastly talented but as-yet-unproven young golfer named Eldrick Tiger Woods for a reported $5 million per year. Sales reached $12 billion in year 2000. Market Segmented Target

Nike by Betsey Johnson caters primarily to women from ages 15-25. These women need not necessarily be athletic nor have a specific lifestyle but rather, Nike plans to capture the attention of both sporty and fashionable, trendy women at the same time through its unique combination of comfort and style in a single shoe. Market Positioning vs. Product Positioning Nike will advertise the new Nike by Betsey Johnson as stylish and up-to-date trendy shoes using currently popular celebrities who have an active lifestyle to heighten the fashionable image of the shoe. The durability and quality of the product will not be emphasized during its publicity, however, the catalogues and reading materials regarding the advertisements of Nike will inform the customers about its technical makeup and quality. Past and current marketing strategies vis--vis objectives and goals Past marketing strategies (before 2000) Nike used the word-of-foot advertising by simple wearing the product and share to their friends about it. Current marketing strategies Nike has decided to target more on teenagers or who spend 20% more on shoes than adults. They use nontraditional advertising. They are creating more trendy designed shoes. In 2006, Nike created the Nike+ platform to change the customers demands in the mobile era. Nike+ is a multi-channel, multi-sensory marriage of Apple and Nike technologies that allows the customers track performance. This platform allows Nike to have a personal connection with its customers. It also acts as a laboratory that lets Nike study its customers behaviors and patterns. In 2010, Nike launched its new digital marketing focus, the Nike Digital Sport that makes new engineers to construct technology for digital communities. Betsey Johnson also use digital marketing to increase online sales and page views of its official site by creating conversation and relationship and to increase loyalty and create life-long customers. C. Competitive Situation
Athletic Shoe Brand Nike Adidas Market Shares (income) 1.95 B (36%) 774.47 (21.8%) M Priceearnings ratio 22.53 18.06 Marketing Efforts (brand image and reputation) 1.5 1.2

Puma

180.4 M (7%)

N/A

1.05

III. SWOT Throughout the success of Nike in the past decades, one of the tools they can attribute their achievements to is their well-known tagline Just Do It and their renowned Swoosh logo. If you casually ask the people around you, most of them will be able to identify Nikes tagline while some are not even aware of the existence of their competitors taglines. Since other footwear brands have failed to design a symbolic catchphrase as popular as Nikes, they should use it to its full potential. One of the major dilemmas Nike has faced before is the controversies about its management of employees and handling of labor. The workers were forced to work in a situation where the air was extremely polluted and dangerous chemicals were handled without any protection. Even if the workers wanted to complain, they were threatened that they would be severely punished for doing so. It's been said that Nike has single-handedly lowered the human rights standards for the sole purpose of maximizing profits. And Nike products have become synonymous with slave wages, forced overtime, and arbitrary abuse. (Wilsey, M., & Lichtig, S., 2009) Although this might have been true in the past, conditions for Nike workers today are very favorable. This area of weakness for Nike allows other companies to have a chance to take advantage of the situation and take the loyalty of Nikes buyers to them.

Even though Nike is considered to have good brand equity today, their market share is still at risk because of its tight competitors. One of its major opponents in the past until now is Adidas. In terms of product similarity, Nike and Adidas have a lot of products in common. However, in advertising, Nike has limited mostly of its endorsers to athletes especially basketball players, while Adidas has a broader range of models consisting of popular celebrities to athletes as well. Seeing that Hollywood celebrities have a huge influence on consumers, Nike should consider widening its choices of brand ambassadors. Following the trends may be a good idea for most clothing and footwear companies, but, since Nike has always been known for their quality sports apparel and shoes, it will be difficult for them to introduce non-sports related products. Given that Nike is a newbie to products outside the sports industry, it is much safer and less risky to stick to their current product mix.

Opportunities Strengths Nike is a very competitive organization Nike has no factories. It does not tie up cash in buildings and manufacturing workers Nike is strong at research and development, as is evidenced by its evolving and innovative product range Despite having a wide product line, the business is still heavily dependent upon its share of the footwear market. Nike should extensively promote its other products

Threats The retail sector is very price sensitive Nike is exposed to the international nature of trade. It buys and sells in different currencies and so costs and margins are not stable over long periods of time. Such an exposure could mean that Nike may be manufacturing and/or selling at a loss The firm should refrain from having contracts with third-party manufacturers that forces their workers to work under poor conditions

Weaknesses

IV. Goals and Objectives Company Goal Nike aims to incorporate fashion to athleticism. It also aims to address the demand for shoes that can only be worn for sports. This is to develop a pair of shoes that will cater to the needs of the women today who are very much inclined to fashion. Short-term (1 year)

1. To make and draft policies that will improve Nike's labor practices 2. To produce at least 10,000 shoes for the Philippine market 3. To increase sales by 10% on the end of the fiscal year 4. To appear once on primetime spots in the two biggest networks of the country for two months and to have appearances in the leading womens magazines throughout the whole year 5. To be available in all key Nike boutiques and stores and in some athletic and department stores all over the country. Medium-term (2-3 years) 1. To reach break-even point on the second year and to produce income on its third year 2. To fully implement all policies regarding labor practices 3. To achieve the non-dependency of sales on advertisements 4. To be available on all Nike boutiques and stores and in all athletic and department stores meoww Long-term (5 years) 1. To have at least 0.5% of the female population of the Philippines, ages 15-25 which is a little less than 40,000 women, having a Nike by Betsey Johnson shoe 2. To establish a new image for Nike, a company that respects the dignity of their employees 3. To make Nike by Betsey Johnson be a self-sufficient, stable brand V. Marketing Mix Strategies and Programs A. Market Targeting Size of the new market Nikes current market extends only to Manila premises. The new market will have to achieve branching out to provinces and to other places that have no easy access to the metro area. Demographic The new product of Nike targets female teenagers and women ages 15 to 25. This includes all races and cultures with active lifestyle. Psychographic Nikes targets psychographically are active teens, athletic/sporty individual, who have casual lifestyle and fashionable taste. The new product is primarily designed to fit sporty womens activities and at the same time, satisfy their fashion and comfort needs. Target should be those excited about accepting and using innovative ideas and

products, willing to invest in a high price but durable goods and prefer wearing athletic shoes. Our understanding and interpretation of todays style leaders result in a new generation of athletically-styled shoes; Modern innovations aim to create something classic, expressive, relaxed, casual, and timeless all in one product. Behavioral Set athletic shoes as fashion statement, fitness craze, multipurpose shoes, and hip/trend. To target consumers who are innovators and early adopters. Give consumers the benefit of having double duty products and offer two things in one price and be the latest presentations of classic athletic performance footwear on the market today. B. Product Development/Innovation Program Nike has created a series of cutting-edge, lightweight performance innovations designed for the track, the court and beyond for this season. Multiple products have been designed to help athletes achieve their full potential. NIKE continues to create products that help to reduce injury, enhance athletic performance and maximize comfort. It believes that innovations in shoes have the potential to change performance. It has always been committed to bringing the best innovations to athletes at every level. Meanwhile, Betsey Johnson's showed enthusiasm, creativity and boundless extraordinary designs on their products. The shoes color, pattern, shape and movement wake up and brighten and bring the wearer to life, drawing attention to beauty and specialness, moods and movements, dreams and fantasies. Nike in collaborating with Betsey Johnson extends to a new line of fashionable shoes that promotes striking and bright colored athletic shoes. The new product would most likely incorporate the hippy image of Betsey Johnson with Nikes outstanding sporty designs. This innovation would make way to higher sales of both companies and stretch the fashion of people in between athletic and stylish. The fickleness and striking appearance of the shoes emphasizes the combination of Nike and Betsey Johnson. PRODUCT FEATURES
Name Nike Ground Description -most basic cushioning material used by Nike -made out of a polyurethane bladder filled with air. -provides adequate cushioning for the casual wearer -a polyurethane-based material that is both durable and lightweight -when first worn, it is somewhat uncomfortable, but over time, the material actually molds to the shape of your foot, thus providing a tailored fit that feels quite natural

Foamposite

Nike Sphere React fabric

-built to breathe - this highly breathable fabric opens up when a person sweats, increasing airflow across the skin and reducing cling -gives a cooling effect on the skin that allows people to perform in greater comfort. -FlyWire keeps the foot locked down tight -its cables wrap around the foot much like tendons. -any extra material is only there to keep out rocks and dirt. -cuts shoe weight by up to 50%. -pound for pound, its five times stronger than steel yet is extremely flexible. -a cushioning that spreads pressure across the whole foot, thus reducing impact on fragile bones.

FlyWire

LunarLite

C. Pricing Program Product Costing Using the records gathered from a data from the Washington Post newspaper (1995), the cost of producing a pair of shoe to Nike is about $20.00 (Production labor $2.75 , materials - $9.00, rent/equipment - $3.00, Suppliers operating profit - $1.75, duties (e.g. taxes and permits) - $3.00, and shipping - $0.50). Assuming that every year, costs for production increases by 2.3% every year on the average, 2012 prices would then hit $29.441, converted to peso (Php42.318 per $1.00 as of 8/17/2012), the unit cost in producing a Nike shoe in the Philippines is at Php1245.79. However, this does not end here. Nike has been investing a huge chunk of money on advertisements and sponsorship. In March 1996 for example, tennis star Andre Agassi was paid a reputed A$140 million to promote Nike shoes and clothing. (Ballinger, J., Olsson, C., 1997) 1 By using the formula F = P(1+i)n Where: P = base price i = 0.023 (fixed) n = 17 years (1995 to 2012) Computation of selling price With Nikes current position when it comes to high brand equity, Victoria by Betsey Johnson should also follow that trend. Nike shoe prices all over the Philippines ranges from Php3,000 to Php5,000. With that given, Victoria by Betsey Johnson should have a high markup rate. If markup is set at a preferable rate of 81% , these shoes would sell at approximately Php5,000, a desirable amount that is within the average price range for high-end Nike shoes.

Pricing objectives and strategies Since the product is new in the market, the company should adopt the concept of promotional pricing even though they have already established a high brand equity. One way is to offer discounts in the first few weeks of its release or giving freebies to the first n number of buyers. However, given that Nike is an already established brand, the price of its newest product should be going back to normal as soon as possible to further avoid losing its name. D. Sales and Distribution Program Policies Nike makes use of a point of sale computer program that is integrated into the cash registers and this allows sales to be monitored at the various retail locations. Retailers place orders with the shoe company in order to receive products to sell in the retail stores, usually found in malls. Retailers can also order particular products from another retail location for a customer if they are out of their size in a certain product and they have to deliver it to the store, which has no available size for the certain product. Easy access to Nike products would result in higher sales and revenues. Sales targets by target market or geographical areas There are currently 46 branches of Nike Store here in the Philippines. Six of these branches include Nike Women located at Cebu and Metro Manila particularly in Galleria, Greenbelt, Gateway, Trinoma and Robinsons Ermita. Nike does not only sell training or running shoes that are applicable for athletic women, but also they have innovated their product into athletic yet fahionable shoes suitable for women, who are into being sporty ,chic and stylish at the same time. As a result, Nike Philippines plans to open more Nike Women Stores nationwide specifically in well-known malls in provincial areas such as Davao, Iloilo and Pampanga. This is to further extend the product to fashionable yet sporty young women who are based on the province and not only to limit the market in Metro Manila because Nike wants to reach their customers needs and not for the customers to reach for Nike. Extent/Terms of distribution Instead of distributing the product solely to its own company, Nike should build more specialty stores or consignment with other existing local specialty stores catering to specific sporting needs like Shoe Salon and Rustans. This would further increase their sales, since Nikes new line perfectly fits Shoe Salon Stores as it provides a wide selection of sporty and trendy shoes. On the other hand, distributing the new product line to Rustans Department Store an exclusive high-end Philippine retail chain will give Nike a sophisticated and high-end image to its customers. In order to accomplish this, Nike makes sure it has several distribution centers and computer systems that track inventory, deliveries, and orders in their respected retail stores. E. Marketing Communication Program

Proposed programs for Nike Womens Betsey Johnson line aim to generate awareness and inform potential buyers of the different styles of shoes in the collection. Marketing activities are mix of traditional and non-traditional means of advertising. Yearround promotions are set for the Betsey Johnson collection that will help in the increase of potential sales for the shoes. There will be series of mall events,contests and other promotional activities to cater the needs and expectations of the desired market. Campaigns and events will be inline to the malls desired market positioning. Marketing efforts should be able to make the target market interested, realize the BENEFIT AND ADVANTAGE OF THE SHOES and induce purchase. 1. Advertising Program Short-term Objectives -to target 60% of the female market -to generate 40% increase in the sales of Nike Womens shoes -to show the target market the fashionable and athletic combination image of the shoe - to spend less than 15 million pesos in total advertising expenses Long-term objectives -to associate this Nike Womens shoes with fashionable athletic shoes through extensive advertising -to produce a television commercial featuring our shoes -to come up with a Facebook page specially dedicated to VictoriaxBetseyjohnson -to achieve top of mind product awareness for Nikes athletic shoes for women Creative Approach Lifestyle Approach LAUNCH PHASE (November 2012-July 2013) SUSTAINING PHASE( August 2013- December 2013) TRADITIONAL MEDIA Outdoor Advertising- Streamers For teaser and launch Target Audience: Primary and Secondary Target Market Cars passing through EDSA, Makati Avenue, Lapu-Lapu City,C-5 and SLEX Media Rationale: The use of streamers to be used in strategic areas of EDSA, Makati Avenue, Lapu-Lapu City, C-5 and SLEX is an effective medium to capture immediate attention of car owners

and commuters passing the area in a day. The use of streamers is also a cheaper form of advertising the shoes during its launching period. Media Planning: 40pcs, 3 x 9 streamers will be placed in the strategic areas during its teaser and launching period. EDSA 10/pcs; Makati- 5/pcs; Mactan. 5/pcs; C-5 10/pcs; SLEX 10/pcs Duration: Teaser: November 2012- February 2013 Launch: March 2013-July 2013 COST: Outdoor Streamer Site Fee: 8 months P9,000/each (40 streamers x 9,000=P360,000) P 360,000.00 ....................... P 360,000.00

Teaser Flyers(Magazine Inserts) Target audience: Primary and secondary target market Young women who has subscriptions to top womens magazines in the Philippines Media planning: Inserts in four magazines to be distributed among magazines from January to Feburary 2013. Womens Health 7,000/pcs Candy 3,000/pcs Cosmopolitan 5,000/pcs Runners World 3,000/pcs Cost: Part of the print advertising cost for the magazines. PRINT ADVERTISING (Teens,Womens and Sports Magazines) Media planning: Throughout the year, launch and sustaining campaigns will be advertised in five magazines. Creative Approach:

The creative approach for Victoria by Betsey Johnson communicates boldness, freshness and a strong sense of athletic attitude as seen in all the campaign materials of Nike.
Magazine Womens Health Runners World Candy Meg Cosmopolitan Months March-October January-March September-December Size Full page Full page Strip Ad-V Half page Half page Frequency 1x/month 1x/month 1x/month 1x/month 1x/month Cost P 55,000 P 50,000 P 24,000 P 43,000 P 45,000

NEWSPAPER ADVERTISING The newspaper ad will run for four months from March to June during its launching period with one spot per two weeks.
NEWSPAPER Philippine Star Philippine Inquirer Daily AD SPACE 9x27ccm(1/2 page) 9x27ccm(1/2page) COLOR Full Color Full Color Schedule Saturdays Sundays Saturdays Sundays and and Frequency Once per 2 weeks Once per 2 weeks

Television Advertising Media planning: Nike by Betsey Johnson 30-sec. commercials will be aired for two months straight from July 1 to September 1 for the sustaining phase of the shoes. The schedule perfectly suits the preferences of the target market. Creative Approach: The 30-sec commercial will show the audience the hip-and-fun design of the Betsey Johnson shoes and let them see the blah blah blah of the shoes in various places where young women usually go.
TV Network Studio 23 Program UAAP Games Time 4:006:00pm Frequency 1x/show Day Saturdays Cost P 120,000

ETC GMA ABS-CBN

Americas Next Model-Cycle 20 Party Pilipinas Gandang Gabi Vice

Top

7:00pm8:00pm 1:00pm3:30pm 10:00pm11:00pm

1x/ 2 weeks 1x/show 1x/show

Mondays Sundays Sundays

P 80,000 P180,000 P 250,000

Gross Rating Point (GRP) Computations

Vehicle Rating UAAP Games Americas Next Top Model Party Pilipinas Gandang Gabi Vice Total GRPs Rating 42.4 32.5 40.4 65.3 Cost (per appear) 120,000 80,000 180,000 250,000 Spots 9 4 9 9 GRPs 381.6 130 363.6 587.7 1462.9

N O N- C O N V E N T I O N A L

MED IA

BILLBOARD ADVERTISING Target market: Primary and Secondary Target Market Car owners passing through the five top locations Surrounding residents of the area Media planning: The billboards will run for about one year from January to December 2013. 1. Located at EDSA-Ortigas Southbound, Size of 40 x 90, enjoys high visibility to slowmoving traffic southbound to Makati coming from Cubao 2. Located at SLEX-Shell Magallanes, Size of 20 x 40 visible to all traffic southbound to Villamor, Merville, Bicutan and Sucat from Makati 3. Located at NLEX-Sta.Rita, Bulacan Size of 40 x 60 visible to traffic northbound to San Fernando, Pampanga coming from Manila 4.Located at Lapu-Lapu city, Mactan ,Size of 20 x 50 ,visible to all traffic going to Mactan Airport coming from Mandaue and Cebu via Marcelo Fernan Bridge 5.Located at C-5, E. Rodriguez,Libis, Size of 40 x 60 ,visible to southbound motorists to Pasig, Taguig and Makati coming from Quezon City

Billboard EDSA-Ortigas Southbound SLEX-Shell Magallanes NLEX-Sta. Rita, Bulacan Lapu-lapu City, Mactan C-5 E.-Rodriguez,Libis April-July

Duration 475,000/mo 195,000/mo 135,000/mo 65,000/mo 215,000/mo

Cost

October-December November-February January-June January-April

Internet Advertising Internet Banner Advertising Media rationale: Captured audience, creative options, provide more complete information and directs the clicker to the official Nike website and Facebook page of Victoria by Betsey Johnson. Media planning: Various sizes of internet banners will be posted starting March 2013- December 2013 in the five websites and blogs that cater to the target market. Websites: ceburunning.com, philippinestreetfashion.com, megastyle.ph, stylebible.ph, takbo.ph Duration: One year Placement Cost: None;Banner Exchange Deals linked to the Facebook page of Victoria by Betsey Johnson. Youtube Advertising Media rationale: Give the target market and secondary market access to the infomercial ,TV commercial and various recorded events of Victoria by Betsey Johnson via Nikes Youtube channel. Media planning: Post weekly Youtube links to its Facebook page. Duration: Cost:

1 year

None

Facebook Side Ads Media rationale: According to Facebooks Help Center, there are about 8,427,400,aged 15-25 young women in the Philippines and about 25.74% of that population are into fitness and fashion. In line with that, Nike would want to tap that percentage of the market for its a good direct target market. Media planning: The side ad will run for the first three months of its launching period,March to May 2013. expected clicks would be about 25,000 of the 25.95%. Cost: For three months (92 days x 10/day) Expected clicks (25,000 clicks x P0.24/click) P 920.00 6,000.00 P6,920.00

2. Sales Promotion Program The objective of the promotions is to encourage the prompt purchase of "Victoria". The product must leave an impact on the target market since this will be the forerunner of the line. Personally, Nike being the best sports brand, their customers are mostly loyal. Nike uses a number of famous athletes that serve as brand ambassadors such as, the Brazilian soccer team, Lebron James for basketball, Lance Armstrong for cycling, and Tiger Woods for golf. Nike's quality products, loyal customer base and its great marketing techniques all contribute to its huge success. PROMOTIONS OVERALL OBJECTIVES: to increase overall sales by 25% to increase store traffic during the lean months by 15%
PROMO The VictoriaxBetseyJohnson Launch (SM Megamall, SM Cebu, ATC and other various malls) Fly Away with Victoria! discount/C TYPE DATES Mar. 2, 2013 DETAILS The event will be held for the product launching and to introduce VictoriaxBetsey Johnson. When they present their flyers from the magazines, they will get a 12% discount.

March-April 2013

School Glam Slam Sale UAAP Raffle Promo

discount/C raffle/C

May 1 - June 1 July 18 14-Aug

Buy a pair and get 15% off on the next purchase of any Nike shoes. Emphasizing on the red, yellow, blue and green version of the shoes. Buy a pair to get a chance to win 10 tickets to the UAAP 76 mens basketball finals. 10% off on all items plus a ticket for one day to the events Buy 2 pairs and get 30% off on the next pair plus 20 pesos will be donated to a charity 150 electronic coupons that will bear 18% discount will be made available in Ensogo from December 1 to 8, 2013. Whoever buys a pair will get a free Nike book planner. hold a contest that whoever creates a unique design that fits both the image of Nike and Betsey johnson, will receive the privilege of having their own designed shoes personally made by Nike.The service can be accessed both online from their homepage and in physical branches so that bloggers or designers can participate.

Philippine Fashion Week Sale Christmas Promo

discount/C discount/C

Oct 28,2013

23-

November 18December 23 Dec. 1-8, 2013

Ensogo.com

coupons/C

Nike Track 2014 Planner NikeID

adv. spec/C contests/C

December 2013

Free pens with Nike logo The Victorian Price-Off

adv.spec/C price-off/T

June 2013 May 5-25

For every purchase of shoe, there also comes a free ballpen When a retailer buys 200 pairs of Victoria during the specified period, they will get a straight discount of 20%. This is to encourage retailers to push the new product in their stores.

push money

push money/T

Whole year

*C=Consumer;T=Trade

BLOG SPONSORSHIPS Media rationale: Blogging is an effective way of reaching the target market with a personal touch. Media planning: Sponsor four of 2011s top fashion and lifestyle blogs in the Philippines owned by renowned personalities in the field of blogging for five months during its sustaining phase. Cost:
Blog/Owner Simply Rins/Rina Alcantara Break My Style/Laureen Uy DavidGuison.tumblr/David Guison Style Manila/Sasha Manuel P 3,000/mo P 5,000/mo P 5,000/mo P 3,000/mo August-December August-December August-December August-December

3. Public Relations Program

an infinitive verb a single outcome stated as a receiver of a verbs action the magnitude of the action expressed in quantifiable terms

a target date or timeframe for achieving the outcome To produce an 8-page quarto-sized newsletter about the organizations planned structural changes, to be distributed on the 21st day of every second month at a cost less than $5,000 per issue, starting in June

Support-an-Athlete Objectives: Build public awareness To encourage young women to address the needs of the athletes To improve communication with target market Reinforce the brand Mechanics: In this program, for every purchase of a pair of shoes from the Betsey Johnson line from any Nike store, 25% of the profit will be allocated to the charity program for young Filipina atheletes who dont have the means to buy a pair of shoes. Schedule: November-December 2013

Promo Costing: 100,000 Fashion for a cause Objectives: To give attention To create interest To strengthen the brand Mehcanics: In this program, a Betsey Johnson fashion show featuring Victoriaby NikexBetsey Johnson shoes. The proceeds of this fashion show will go to the Nike Foundation in which Young Filipina Athletes will receive a scholarship Schedule: May 2013 Promo Costing: 250,000 REUSE-A-SHOE PROGRAM Objectives: To build environmental awareness To create better communities To reinforce the brand
Mechanics: Nikes vision is that products will be closed loop -- that is, they will use the fewest possible materials and be assembled in ways that allow them to be readily recycled into new products. One example of this vision comes to life through the Reuse-A-Shoe program. Worn-out athletic shoes and scrap materials, that are supposed to be headed for the landfill, will be collected for recycling in the Nike Grind. Nike Grind will be incorporated into sports surfaces like in the track and field, tennis court, badminton court and others. Playground surfaces will also be built for kids to play in. The common goal is: to create the highest-quality sports surfaces available using premium-grade recycled material that is born out of the athlete's own equipment. Schedule: January 2014 Promo Costing: 150,000

GANTT CHART
Program Outdoor- Streamers Flyers Magazine-Womens Health Magazine-Runners World Magazine-Candy Magazine-Meg Magazine-Cosmopolitan Newspaper TV Publicity Billboard-EDSA Billboard-SLEX Billboard-NLEX Billboard-Mactan City Billboard-C-5 Internet Banners Youtube Advertising Facebook Side Ads Blog Sponsorships Fly Away with Victoria UAAP Raffle Promo Philippine Fashion Week Sale School Glam Slam Sale Type AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD AD SP SP SP SP SP SP SP N D J F M A M J J A S O N D

Nike Track 2014 Planner

SP SP SP

* First Blue N and D= November and December 2012

VI. Investment Plans

Teaser Materials Outdoor-Streamers Magazine Flyers 360,000 0 P 360,000

Magazine Womens Health Runners World(kasiqtr lang) Candy(for the 1518) Meg Cosmopolitan(for the 20-25)

Months March-October January-March

Frequency 1x/month 1x/month

Cost P 55,000 x 8 P 50,000 x 4 440,000 200,000

September-December March-June February,May,September,D ecember

1x/month 1x/month 1x/month

P 24,000 x 4 P 43,000 x 4 P 45,000 x 4

96,000 172,000 180,000 P 1,088,000

Newspaper(9x27ccm) Philippine Daily Inquirer

Cost 91,000x 2 spots/month x 4 month/yr= 728,000

Philippine Star

88,500x 2 spots/month x 4 month/yr=

708,000 P 1,436,000

TV Network Studio 23 ETC GMA ABS-CBN

Show/Frequency UAAP Games(1x) Americas Next Top Model(1x) Party Pilipinas(1x) Gandang Gabi Vice

Cost P 120,000 x 9= P 80,000 x 4= P180,000 x 9= P250,000 x 9= 1,080,000 320,000 1,620,000 2,250,000 P 5,450,000

Billboard EDSA-Poveda Southbound SLEX-Shell Magallanes NLEX- Sta. Rita, Bulacan Lapu-Lapu City, Mactan C-5, E. Rodriguez Total

Duration 4 months 3 months 6 months 8 months 4 months

Cost 475,000/mo x 4= 195,000/mo x 3= 135,000/mo x 4= 65,000/mo x 6 = 215,000/mo x 4= 1,900,000 585,000 540,000 390,000 860,000 P 4,275,000

Internet Advertising Internet Banners Youtube Advertising Facebook Side Ads Total

Cost 0 0 6,920 P 6,920

Advertising Expenditures Teaser Materials(Streamers & Flyers) Magazine

Cost 360,000 1,088,000

Newspaper TV Billboard Internet Advertising TOTAL

1,436,000 5,450,000 4,275,000 6,920 P 12,615,920

PROMO EXPENDITURES
Promotion activities Nike book planner Cost 150/pc x 1,000pcs P 150,000 P 150,000

Blog/Owner Simply Rins/Rina Alcantara Break My Style/Laureen Uy DavidGuison.tumblr/David Guison Style Manila/Sasha Manuel

Cost P 3,000/mo x 5 months= P 5,000/mo x 5 months= P 5,000/mo x 5 months= P 3,000/mo x 5 months= P 15,000 P 25,000 P 25,000 P 15,000 P 80,000

Promo expenditures Blog Sponsorships Nike book planners Promotional Activities 80,000 150,000 1,500,000

1,730,000

Production expenditure Outdoor- Streamers Teaser Flyers Magazine

Cost P 1,780/pc x 40= P18,000pcs x P2.20/pc= P 71,200 P 39,600 3,000

TV Billboard Window Display Points of Purchase Betsey Johnson Logo Total P27,000 x 5 places= P10,000 x 5 months=

1,000,000 137,500 50,000 344,000 100,000 1,745,300

INVESTMENT PLAN Advertising expenditure Promo expenditure Production expenditures Research expenditures 12,615,920 1,730,000 1,745,300 100,000 16.191,220.00

VII. Estimates of Profitability

Gross Sales 2013 Projected Sales Sales increased by Advertising (30%) Sales increased by promotions (25%) Less: Cost of Goods Sold 2013 cost of Goods Sold Distribution and shipping Store/branches operating expenses* Advertising expenditures Promotion expenditures Advertising materials production cost Royalty (Betsey Johnson Brand) Research expenditure Net income before Tax Less: Tax (30%) NET INCOME 9,257,034 P 22,387,500 P 14,925,000 P 12,437,500 P 9,499,060 P 317,385 P 7,728,000 P 12,615,920 P 1,730,000 P 1,745,300 P 3,000,000 P 100,000

49,950,000

P 36,735,665 P 13,224,335 P 3,967,300 P

*Note that store/branches operating expenses are just assumed at 5% of the companys total expenses in that part. This is because the company offers different products, therefore, such expenses are distributed according to their assumed sales share for the specific fiscal year.

VIII. Evaluation of Results

PROGRAM Print - Magazines Outdoor - Billboard Outdoor - Streamers

EVALUATION PROCESS Monitor media schedule, Monitor reach, monitor number of inquiries, monitor number of sales Monitor media schedule, Monitor reach, monitor number of inquiries monitor number of sales Monitor reach, monitor number of sales, monitor number of

inquiries Television advertising Promotional Activities Launch Plan Blog Sponsorships Newspaper Advertising Facebook Side Ads Monitor media schedule, Monitor reach, monitor number of inquiries monitor number of sales Monitor media schedule, Monitor reach, monitor number of inquiries monitor number of sales Monitor reach, monitor number of guests present the launch, monitor product inquiries, monitor number of sales Monitor reach, monitor number of guests present the launch, monitor product inquiries, monitor number of sales Monitor media schedule, Monitor reach, monitor number of inquiries monitor number of sales Monitor media schedule, Monitor reach, monitor number of inquiries monitor number of sales

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http://nikeinc.com/pages/reuse-a-shoe