Capstone 1 – Nike
Table of Contents
1. Overview
Nike Worldwide Competition
4
NIKE Worldwide Revenue Sales
US Market eCommerce and Mail Order Revenue for Sporting Goods
2. Data Analysis + Insights
Target customer is everyone that has access to internet via the online channel which includes PC, smartphones, and access to Nike’s physical store. Segmentation of Nike’s products are primarily with tennis shoes, apparel fashion and equipment.
What can you learn from keyword data?
Nike strategy of direct to consumer offense can be seen as it relies enormously on Nike’s brand equity value for Keyword bidding and therefore can target just about any product it launches with the product name after the “Nike” keyword branding allowing traffic directly to their web page including Nike branded shoes.
General keywords should be a focus since this might direct consumers to wholesale distributors.
3. Customer Journey + Channel Mapping
How does this customer typically find/research/buy your product?
Consumer would like to buy a tennis shoe or fashion apparel from Nike
Consumer searches online for product or goes to a retail store that carries Nike Products (ex. Dicks)
Consumer decides if order on line or goes physically to a store
Consumer creates account at Nike site, downloads App, Nike Store puechase, or retail site
Consumer makes purchase
Consumer receives purchase
Consumer ☺ or ☹ with purchase
Consumer research/analyzes product (size, quality, specific sport, $) and chooses best option
Mapping to marketing channels?
4. Brand Positioning + Competitors
Where does this brand sit within its competitive space?
Competition are tennis shoes and apparel fashion which also include specific segments such as running, tennis, and other sports.
What is the Reason to Believe for consumers?
Attributes: Tennis shoe technology, App all in one running (tracking), fashionable (cool) channel, discounts, sports news channel, sport events.
Does this company have brand equity?
Brand Value is US $42 billion – 2022
5. Channel Strategy
Which digital marketing channels will you use?
Where will they target in the funnel?�How will they work together?�
www.nike.com, Google Search, Google Display
Social media
Call to Action: download Nike App
Online purchase, App purchase or
In store -purchase
App Data Targeting
6. Content Marketing Plan - Social Media
How is the brand message communicated?
The tennis shoe is a hook for all other products (Fashion & Apparel)
All these campaign attributes will be for customers benefit which they can post on Instagram, Twitter, Tik-Tok, and other social platforms creating content which presently has 3.38% participation.
For each specific product – down load the app 10% on next purchase and discounts
Tik-Tok, Facebook
Instagram, Tweeter =
NIKE APPS
7. Offline Media
Will you use offline media?
Yes, on the shoe itself or via a unique QR scan pasted on the sole or attached like a key chain (not permanent)
How will this tie in with the online campaign? Every consumer of tennis shoe will eventually download the app.
“Must be placed on the shoe sole”
8. Assumptions + Risk Mitigation
What assumptions are built into your plan?
That all consumers will download the Nike App when purchasing a tennis shoe and/or get curious of the QR code on the sole
Each QR code will be unique on the bottom of the shoe which will eventually fade and therefore consumer will do immediately
U.S. market only
How will you course-correct if things do not go to plan?
Change the Ad Copy
Allocate budget according to metrics
CRO – Conversion Rate Optimization
Choose the correct placement of QR code that generates the largest # downloads of the Nike App
9. Proposed Testing - download of app via QR code via display Ad or on the sole of the shoe
What is an experiment that could help validate/falsify a hypothesis?
What are best practices for conducting a test?
Two A/B Testing:
1. Display Ad with a QR code direct to the App or Nike page (shown or not shown the Ad)
2. With a some 20,000 pairs of shoes with the QR code on the sole and the other 20,000 random shoe without the QR code on the sole.
The no show of a QR code will not be placed on the shoe but on the box
We will be able to find out where is the best place to put the QR code which eventually creates a call to action to download the Nike App.
All of the shoes will come with informative pamphlets about the Nike App and its benefits inside the box.
We will also be able to calculate the incremental impact of the proposed testing
10. Budget Allocation How will you split the allocated budget across channels for optimal efficiency?�
How will you analyze results and optimize once campaign data is available?
Nike will use:
Zodiac a consumer data analytics company acquired in 2018
Celect a Boston-based predictive analytics company acquired in 2019
11. Metrics: which metrics will you analyze? �
What would be a reasonable estimate of the ROI for each channel’s budget?
The optimal ROI I would use is cost per acquisition compared to the estimate CLV (customer life time value) were the lifetime value after acquisition is greater than the acquisition cost.
In other words, just by acquiring a consumer with this purchase notion all other additional products such as Apparel/Fashion and repurchase of new tennis shoes will be profitable.
CPM🡪 Cost Per Mile: Ad Spend/Impressions shown*per 1000 Ads
CTR🡪 Click Through Rate: Total clicks/total number ads shown *100
CPC🡪 Cost Per Click: total campaign costs/total clicks
Conversion rate🡪 Products purchased/number of clicks
Cost Per Action🡪 Original Ad Spend/total number of purchases
CAC🡪 Customer Acquisition Cost
12. Future Opportunities
Jose A. Serrano
Columbia Business School
Capstone Project 1
Nov. 2022
Bibliography