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Nike Free Plans Book

All in the Family Ad Campaign

Ivanna Tucker
December 10, 2013

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Product Situation Analysis
The Company
Nike Inc. was founded by Bill Bowerman, former University of Oregon track and
field coach, and Phil Knight, a middle-distance runner from Bowerman's program, in
1964. They began by ordering 300 pairs of Tiger brand shoes from Japan and developed
ways to make the shoes better for athletes. The company was originally called Blue
Ribbon Sports. In 1971, they created the company name Nike, after the Greek goddess
of victory, and began manufacturing their own shoes. A year later, the official line was
debuted right before the U.S. Track & Field Trials. In 1981, Nike became a publicly
traded company (History & Heritage). Its mission is to bring inspiration and
innovation to every athlete in the world (About Nike, Inc.). Its operations are located
in six main areas: Western Europe, North America, Central and Eastern Europe, Japan,
Emerging Markets and Greater China.
Nike, Inc. produces a variety of athletic shoes and apparel that help assist people
in running and participating in athletics. In 2013 the company had revenue of $25.33
billion and a gross income $10.93 billion (Annual Reports for Nike, Inc.). This is a
slight increase from 2012 but a decrease in profits from 2011 (Nike Inc. Profitability
Analysis).
Nike, Inc. has a reputation for sponsoring multiple professional athletes, sports
teams and colleges. It is also known for donating to nonprofits and other charities. It also
is known for creating high quality products. One of its goals is to maintain a sustainable

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business that help make the world better by recycling and helping the environment
(Sustainable business at Nike, Inc). Its widely known slogan is Just Do It and people
all around the world can recognize Nike's signature swoosh symbol.

The Product
Product description and positioning
Nike Free has a thin flexible soles that allow feet to move more freely than the
typical running shoes, which will trigger additional muscles to work while engaging in
physical activity. The deep grooves and breathable mesh help with easing movements and
adapt to every type of foot. The light material used helps with high performance activities
and allows the foot to breath while maintaining necessary support. A benefit of this
product is that it resembles the experience of running barefoot because of the flexible
material and how it has less constriction than normal running shoes. Nike Free Runs are
mostly used for running, preferably long distances (What you should know about Nike
Free). Some customers also use the shoes for other athletic activities such as dance and
simple workout sessions. These shoes are different from others, such as New Balance
Minimus and Adidas Adipure Motions, because they are made with breathable materials
and also provide more flexibility for the foot. There is less material used in the soles as
well. The price for a pair of Nike Free ranges from $85 to $175, depending on the style.
The reputation for Nike Free is that the shoes provide a barefoot feeling and provide
comfort while running and participating in other physical activities (What you should

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know about Nike Free).

Product sales
There is no specifics on how much the style has sold. Americans have spent $6.46
billion on running shoes in 2012, which includes Nike Free. The style was introduced in
2004 (What you should about Nike Free). There is a high demand for the type of shoe.
From the survey I conducted, about 75 percent of respondents either owned or had a
family member that owned Nike Frees or other Nike athletic products. This helps display
Nike Free as a popular choice for workout shoes.

The Market
Current customers
The current customers for Nike Free are mostly men and women ages 18-29, who
are somewhat or very active and already have some sort of dedication to the Nike brand.
The customers typically buy the product online via the Nike website or go to local retail
shoes stores. Current customers purchase the shoes whenever their current pair starts to
wear out, which is typically every four to eight months. There are some who will buy
multiple pairs at the beginning of summer or fall. They buy this product because of its
durability and the current trend to become more active. In addition, people need shoes to
work out and run in, which is the main purpose of Nike Free. Customers like this product
due to the positive reviews and how effective it is when used for physical activities, such

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as running, walking, dancing, and lifting weights. They also enjoy how there are multiple
styles and colors to choose from so that they can customize the shoes according to their
needs and wants.

Product SWOT Analysis

Strengths
A strength of Nike Free is that the company already has endorsed multiple famous
athletes who people look up to and admire. Many of these athletes probably use the shoe
to help train or workout on a normal basis. This helps with the persuasion of others to use
its products due to wanting to share the same experience as celebrities. Another strength
is that Nike Free can be worn in a variety of different environments and used for multiple
purposes, not just athletics. Having product that can be worn or used in a variety of ways
can allow the customer's need for variety to be met. People want to be able to wear shoes
for multiple purposes. Nike also has a high rate of customer loyalty that it has built over
the last 30 years. This gives them a market that is already dedicated to its products and
also promote the brand. Lastly, Nike promotes its use of recycled materials in their
products, which makes the company seem eco-friendly to the public.

Weaknesses
Most of Nike's products are not made in the United States and does not
necessarily support the American economy (Manufacturing disclosure). The majority

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of its products are manufactured in China with a select few factories actually in the U.S.
Another weakness is that the price of Nike Free Runs are on the high end for running
shoes. The cost in comparison to manufacturing is very high, which does not reflect well
on the company to the public. There are also other brands that develop a similar style of
shoe for a lower price, which can cause potential customers to question the price for Nike
Free.
Opportunities
Nike can continue to follow the latest trends and update the shoes to follow along
with what the public wants. It can also discuss the higher quality and how durable the
shoes are in comparison to other brands. The current focus in the United States is healthy
and active living. Nike can take advantage of this and show how the shoes can help
promote this new ideology. This can be done by showing Nike Free as a product for all
basic workout activities, not just running. Another opportunity is for Nike to take
advantage of its customer loyalty. Promoting how customers are faithful to the brand will
allow others to recognize the high quality of the products that Nike produces.
Threats
A major threat to the success of Nike Free are the rumors and protests that
occurred against Nike starting in 1991, relating to the issue of their labor practices
(Nisen, 2013). People began to target Nike with accusations about producing goods in
sweatshops even though there were other companies doing the same thing. However,
Nike has been constantly improving its image and in 2005 released a report describing

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the current working condition of the factories in which it produces its products. Another
threat is the number of suits filed against the product for a variety of reasons in 20082011. These suits dealt with simple quality issues that were quickly fixed in new versions
of the product. There have not been any recent lawsuits (Nike Free). Another threat is
other competing brands with a similar style of shoe as the Nike Free, such as New
Balance. Also, people generally associate Nike with high-level athletes and do not see the
brand as a product for the normal person. The cost can also be seen as a threat because
there are other running shoes that are cheaper. Depending on an individual's income, the
person may not be able to afford the shoes. Lastly, young customers will probably not
purchase the product if they think it is meant for older people because it would not be
seen as trendy. This also is the same for older customers if they see the product as
something for younger people.

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Target Market Analysis
Primary and Selective Demand
Primary demand
Athletic shoes are needed for working out because they are built for the various
levels of activity and provides comfort. The primary demand for running shoes is rising
each year due to the increase of people beginning to engage in physical activity. In 2012,
$6.46 billion was spent on running shoes in the United States (Consumers spent $6.46
billion on running shoes). Running shoes are starting to be used for more basic workouts
in addition to just the primary purpose. In North America, there is more emphasis on
healthy living today, and people are starting to figure out ways to live a healthier lifestyle.

Selective demand
The selective demand for Nike products as a whole is one of the highest for
apparel and shoes in the world (Bhattacharjee, 2011). Nike's sales have specifically
grown in the athletic shoes by seven percent since the 2012 quarter (Kell, 2013). More
people want Nike over other brands, as shown by its 22-percent increase in profit made in
the last fiscal year (Kell, 2013). The company expects a larger increase in the upcoming
year. There is no data specifically on the Nike Free style; however, based off of the
survey, I conducted the participants helped display that there is high demand for the shoe.
Every participant either owned a pair of the shoe or wanted to purchase them.

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The Target Market
My target market for Nike Free is comprised of people who want to become
physically fit and remain healthy. I am interested in focusing more on American families
to expand the current market.
Demographics
The American family consists typically of a mother, father, and two or three
children. However, alternative formations of the family are also included since the image
of the American family is constantly changing. My focus will be toward parents because
they make the major purchasing decisions for the family. These decisions are sometimes
influenced by children as well. The shoes are mostly for those who are willing to spend
over $60 on a pair of athletic shoes, want to start working on getting healthy, and are
somewhat familiar with Nike products. The average household income for this group is
between $35,000-$75,000. The Nike Free are priced higher than other running shoes so it
should be targeted toward consumers with liquidity, such as middle class families. The
parental figures are typically the head-of-household that does all of the purchasing. In
some cases, where the children are older, they can also have their own purchasing
behavior.
Behaviors
The target market for Nike Free wants to begin engaging in exercise at least twice
a week and wants to feel good about themselves. In addition, they want to become part of
a social activity, which is why I want to focus on the family versus just athletes. This

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target market is looking for a shoe that they can wear for all types of workouts. There
may be a few past consumers because based off of the survey conducted at least one
family member owned a pair of Nike Free Runs. Consumers tend to purchase two or
three pairs of shoes that will last them a while and can be used for multiple purposes.
They constantly look for sources for inspiration and motivation to better themselves. An
important aspect to them is their health. They seek out ways to change their physical and
mental well-being.
Psychographics
One common psychographic among the American family is their urge to feel good
about themselves and their health. Due to the high obesity rates in America, people are
starting to take more time to exercise and work to maintain good health. Another
psychographic is that they want to boost their esteem in all ways possible. Through the
use of this product, consumers will be encourage to engage in healthy living practices,
which will improve their emotional and physical well-being. In correlation to the VALS
framework, the target market can be described as experiencers because they want to try
out new things and find ways to connect as a family. Nike Free emphasize the barefoot,
natural feeling of the running experience that consumers will get when using the product
(What you should know about Nike Free). However, the product also provides an
experience that can be beneficial outside of running by encouraging the family to take
part in the healthy living initiative together. Families are constantly looking for ways to
connect with one another. By finding something they can do together, they can

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accomplish this need.

Benefits sought
The target market wants to have a choice in how they become active. Everyone in
the family can find their own unique way of becoming active while using Nike Free.
When looking for a quality workout shoes, the target market looks for light, durable, and
comfortable material. Nike Frees have such qualities, which will persuade the market to
purchase the product. American families also want the encouragement to change their
lifestyle. From the survey I conducted, respondents said that at least one person in their
family has the shoes or a similar style from Nike. The shoes provide motivation to start
exercising in one way or another.

Location of market
I want this to be a national campaign as a part of the fighting obesity campaigns
that have been recently presented in the media, such as Just Move and The Campaign to
End Obesity.

Why this target market?

I chose the parents of the American family because this broadens Nike Free Run's
current target market of athletes and young people. This provides the sense that the shoes
are also for normal people who can use Nike Free for their daily physical activities, such

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as weightlifting, dancing, walking, and other aerobic activities. By choosing this market,
we can also introduce an older generation to the product. The issue with this product is
that people believe that it is just for a specific age group or just for runners. Targeting
American families will bring more of an open interpretation for the emotional and
lifelong benefits of the product and the Nike brand itself. Connecting to the family will
widen the current market and make Nike Frees a product that everyone can have, not just
runners.

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Advertising Objectives
1. Persuade the target market that Nike Frees are the best choice for athletic shoes
2. Inform consumers of the emotional and lifelong benefits of using the product
3. Inform consumers that the product is for everyone
These are my objectives because I want consumers to emphasize the experience
with using Nike Frees. With these objectives, the advertisement will connect with the
audience, ensure that brand loyalty is developed in occasional purchasers, and also
increase purchases by a more diverse market. I choose persuade the target market that
Nike Free Runs are the best choice for athletic shoes as my primary objective because
that is what convinces consumers to continue to purchase the product and builds brand
loyalty. The secondary objective is important because it will help consumers personally
connect with the product and see how it applies in their life. People want to know what
they can get out of a purchase and the goal is to make consumers see that the product is
worth the cost. Lastly, I selected inform consumers that the product is for everyone
Nike products are constantly associated with athletes. It is important to showcase how
everyday people can use Nike Frees. One of Nikes key mottos is if you have a body,
you are an athlete (About Nike Inc.). This is something the ad should showcase so it is
more personal to the market.

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Creative Brief
Opportunity
Nike Free, created by Nike, Inc., has the opportunity to expand its current target
market and make the product seen as something every member of the family can use.
Currently, the United States is promoting healthy and active living by creating campaigns
such as Just Move and The Campaign to End Obesity. One of the main things that Nike
emphasizes is that if you have a body, you are an athlete (About Nike, Inc). By
expanding the target market, the company can better fulfill its mission to bring
inspiration and innovation to every athlete in the world (About Nike, Inc). Customers
may not be aware that Nike Frees are a product that everyone can use to help with
healthy and active living.

Advertising Objectives
There are three main objectives I want the advertisement to achieve. Overall, it
must attempt to persuade the target market that Nike Frees are the best choice for athletic
shoes. Multiple brands have a similar style of shoe, however, Nike Frees stand out with
its ability for customization and high-quality reputation. The second objective is to
inform consumers of the vast benefits of using the product for engaging in physical
activity. Nike Frees provide a barefoot feeling to provide comfort for when engaging in a
variety of athletics and workouts. This will help the market get the most out of their
experience. In addition, the shoes will encourage them to change their lifestyles and

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improve their emotional and physical health. Lastly, the advertisement should to inform
consumers that the shoes can be used by everyone. I want the advertisement to
communicate that anyone can use Nike Frees during physical activity. Nike already has a
vast amount of customers with brand loyalty. It is important to make nonusers aware of
the product and let them know how they can use it in their daily life.

Target Audience
The target audience for this campaign are parents of the American family. All
different types of families are included in this: single-parent families, gay couples, and
the basic four member family (mother, father, son, daughter). They have a middle-class
income and liquidity that allows them to purchase the shoes that are more than $60.
Children shoes range from $45-$55. The heads of the household are the mother and
father, who normally make the purchasing decisions. Based on the survey I conducted,
within each family is at least one person who uses or is familiar with the product. The
audience wants to become more active in some way. They want to have a healthy lifestyle
because it is important to them to feel good about themselves. Their needs for self-esteem
and confidence are things they continue to work on by finding ways to improve their
health and well-being. The audience wants to know how they can be more active. In
addition, they see exercising as an opportunity for social activity. The target market is
made up of experiencers; they want to go out and try new activities sometimes but not by
themselves. The American family wants shared experiences and to connect with one

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another. When looking for athletic shoes they look for comfort, flexibility, and lightness.
This is important because they want to be able to use Nike Frees for other physical
activities.

Brand/ Product Personality

Nike promotes healthy active living. It believes that in some form or another,
every person has athletic potential. The company also embraces diversity and inclusion,
where it wants to represent a variety of people and not leave others out (Diversity &
Inclusion). Nike's advertisements are seen as a source for motivation and show
consumers their potential if they used its products. Nike also values the experience
consumers have while using their products.
Nike Frees are known for its high quality of material and flexibility. Consumers'
experience while wearing Nike Free Runs will be as if they are not wearing any shoes at
all. The personality of the product is very energetic, active, and engaging. Nike Free ads
should portray the idea of inclusion and the optimism toward engaging in physical
activity. They should suggest that Nike Frees is a product for everyone and that by
choosing this brand and style of shoes, they are encouraging themselves to change their
current lifestyle.

Benefits to Communicate
The Nike Free campaign should focus on three different benefits; however, there

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are other benefits that the shoes could provide for consumers. Overall, it should showcase
how the product is something that any person can wear and use for any kind or level of
exercise. The shoe is designed for running; however, it can be used for other physical
activity such as walking, playing around, and working out. Nike Free Runs have the
comfort and flexibility that would provide the support needed during other types of
exercise. It was not solely designed for runners but for people who want to be active.
Another benefit is that the product helps encourage healthy and active living. Since it is a
running shoe, when people purchase a pair, they feel like they need to go out and do
something. Lastly, using the product will lead to lifelong emotional benefits, such as
confidence, self-esteem, and connection with others
Suggestions for tone
The ad should be family-oriented and showcase the product as a shoe for every
member of the family rather than just a shoe for athletes.

Special requirements
This campaign should be similar other anti-obesity campaigns that are present in
the United States. It should send the message that everyone is capable of being an athlete
and become active.

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Creative Concept
One of the creative concepts for the Nike Free campaign is a print magazine ad.
The advertisement is a full page, color ad. The main photo will be of a father and son
playing baseball, smiling, and having fun together. They both will be wearing Nike Frees.
The background is a natural setting in a backyard. The other will be of a mother helping
her daughter tie her Nike Frees. This will allow the action to seem realistic and be full of
energy. The copy will say Why do it alone when you can do it together in bold white,
simple type. In the corner is the signature Nike swoosh followed by All in the family.
This advertisement follows the same energy that other Nike ads follow but with
more of a family vibe. It is simple and embraces the values of self-esteem and
togetherness. It also provides an encouraging tone that showcases the shoe for everyone
and a motivation to go out and be active.

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Media Plan
Media Objectives
Audience objectives:
-To reach American parents with children below age 18
-To focus more on families who have interest in gaining healthy living habits
Message-distribution objectives:
-To reach 16 million parents throughout the year to continue to ensure that
consumers recognize the product's value
-To deliver the message to the overall scope of the Pacific Northwest
-Campaign will begin January 2014 and end January 2015
I chose this range because it will begin right as people start making their
resolutions for the year, which normally include becoming more healthy. It will continue
into the spring and summer because this is when people are more encouraged to become
more active due to the better weather. The ad will end in January 2015 so it can also be a
part of the Christmas shopping season.
-The audience will be exposed to the ad at least once a week, and will continue
throughout the year during selected months
-To attain high frequency seeing the ad three times during essential months such
as January, March, June, and November and then provide low frequency in other months

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Media Strategy
Classes of media to use in the campaign
The Nike Free Run campaign will use three different classes of media: television,
magazines and newspapers. I chose these three classes for paid advertising because they
each can reach my target market in a variety of formats, while reinforcing the message of
the campaign. The television ad will show the positive energy of the product and
demonstrate a variety of activities people can engage in when wearing Nike Free Runs.
By advertising in a magazine, the product will be directly targeted at families who read
that specific magazine. Lastly, the newspaper advertisement will localize the product and
reinforce the other advertisements with a coupon incorporated.

Media vehicles to use in the campaign

The magazine advertisement will be featured in Family Circle magazine. This
is a family-oriented magazine, specifically for mothers. It has articles about activities that
the family can do together, parenting advice and also information about health
(Readership). Its circulation consists of about 4 million readers (Circulation). The
television ad will appear on ABC. ABC has a variety of shows that draw in large familyoriented audiences, such as Modern Family, Dancing with the Stars and America's
Funniest Videos. The newspaper advertisement will be printed in major metro
newspapers throughout the United States. The Oregonian is included on the attached
budget. I chose newspapers because it will reinforce the message of the campaign and

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providing a call for action. The coupon will state that if the consumer buys four pairs of
Nike Free Runs, he or she will receive ten percent off their total purchase. In addition,
there will be testimonial videos posted on the Nike Facebook page that will have families
discuss how they are becoming active together. This will help display realistic
perspectives of what the campaign is about and provide a free source of advertising for
the company.

Size/Length of ads
-Magazine: The ad will be a full page spread. I chose this because it will help
showcase Nike Free Runs as a dominant, strong product and so that competitors cannot
distract consumers from the message.
-Television: The ad will be 30 seconds in length because this is the most common
amount of time for commercials, and it will help the consumer understand the product's
value.
-Newspaper: The ad will be two columns by six inches and in full color. This will
allow the ad to stand out without it being too big for people to tear out and use.

Positioning of ads
-Magazine: The ad will need to be placed in the Health section of Family
Circle. This is to make an effort to reach consumers interested in healthy living
engagement.

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-Television: The ad will be a spot because it will just showcase the fact that it is a
workout shoe for the family. The commercials will come on during primetime shows on
ABC. The shows the campaign with focus on are America's Funniest Videos, Once Upon
A Time, Dancing With the Stars, and Modern Family.
-Newspaper: The print ad should be located in the main section of the Living &
Travel section. This section is one that will have material that relates to the message of
the campaign.

Schedule of insertions
-Magazine: The ad will appear six times throughout the year- January, March,
June, August, November, and December. This is to reach customers at times when they
will most likely want to purchase athletic products.
-Television: The ad will appear in a pulsing pattern on ABC during prime time.
The commercials will appear twice a month on each listed show throughout the year
during the regular season and mid-season premiere months of January, March, June,
September, and November. This will ensure consumers will at least see the commercial
once throughout the month, especially since they might not watch the same
programming.
-Newspaper: The print ad will appear in the Sunday paper in January, June,
August, and November. This will be during times consumers will look for opportunities
to save money while shopping. The coupon will appear the Sunday following the week of

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spot ads to help provide one more chance for the audience to be exposed to the message.
Schedule:
Sunday

Monday

Tuesday

Wednesday Thursday

Spot ad

Spot ad

Spot ad

Spot ad

Spot ad

Spot ad

Spot ad

Media
vehicle

Ad size/
length

Cost per
insertion

Family
Circle
magazine
ABC's
Modern
Family

Friday

Saturday

Newspaper
Spot ad
Newspaper

Budget
Number Total cost for Audience
of
schedule
size (or
insertio
rating)
ns

CPM
(or
CPP)

Full page, $139,360.00

full color

$836,160.00

$310.03

:30 spot

10

$2,573,370.00 10.64
million x
10= 106.4
million

Oregonian 2 column $3,824.00*

by 6
inches,
color

16

$61,184.00

689870 x
$5.54
16= 110.34
million

ABC's
:30 spot
Once Upon
a Time

$94,649.00

10

$940,490.00

4.38
million x
10= 43.8
million

$14.76

ABC's

$94,645.00

10

$940,645.00

13.28

$7.13

:30 spot

$257,437.00

449500 x
6= 2.69
million

$24.20

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Dancing
with the
Stars
ABC's
America's
Funniest
Videos

million x
10= 132.8
million
:30 spot

$59,425.00

10

$590,425.00

6.3 million $9.43

x 10= 63
million

Totals
52
$5,942,274.00 3,597,1720
*Cost estimate based on rates of a similar newspaper (from
http://www.miamiheraldadvertising.com/documents/R01-2013-Retail-AdvertisingRates.pdf )

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References
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http://nikeinc.com/pages/about-nike-inc
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Bhattacharjee, Nivedita. (2011, September 22). Nike sees strong worldwide demand.
Reuters. Retrieved from http://www.reuters.com/article/2011/09/23/us-nikeidUSTRE78L67D20110923
Circulation. Family Circle. Retrieved from
http://www.meredith.com/mediakit/familycircle/production/2013/regional.html
Consumers spent $6.46 billion on running shoes. SF Gate. Retrieved from
http://www.sfgate.com/business/article/Consumers-spent-6-46-billion-on-runningshoes-3588864.php
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Diversity & Inclusion. Nike, Inc. Retrieved on October 14, 2013 from
http://nikeinc.com/pages/diversity-inclusion
Fortune 500: Nike. CNN Money. Cable News Network. Retrieved from

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Kell, J. (2013, June 27). Nikes profit jumps 22% on strong demand. The Wall Street
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040964
Manufacturing disclosure. Nike, Inc. Retrieved from
http://manufacturingmap.nikeinc.com/
Nike Free. CT Research. Retrieved from Lexis Nexis.
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Nike In-depth records. Hoover's Company Records. Retrieved from Lexis Nexis.
Nisen, M. (2013, May 9). How Nike solved its sweatshop problem.. Business Insider.
Retrieved from http://www.businessinsider.com/how-nike-solved-its-sweatshopproblem-2013-5
Rates & dates. Family Circle. Retrieved from
http://www.meredith.com/mediakit/familycircle/production/2013/regionalrates.html

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Readership. Family Circle. Retrieved from
http://www.meredith.com/mediakit/familycircle/production/2013/readership.html
Sustainable business at Nike, Inc. Nike, Inc. Retrieved from
http://nikeinc.com/pages/responsibility/
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