Nike plans to collaborate with the nonprofit Oceana on a clothing line to raise awareness of ocean conservation. This would help Nike's sustainability efforts and increase sales. However, competition from similar collaborations is intense. Additionally, pricing the clothing higher to benefit Oceana could alienate customers. The collaboration must differentiate itself and clearly communicate that the clothing is not made from recycled ocean plastics. Secondary research on consumer behaviors and environmental concerns will inform the marketing strategy.
Nike x Oceana: Spreading Awareness for Ocean Conservation
1. 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
2. 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
3. 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
4. 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.
https://www.sustainablebrands.com/news_and_views/marketing
_comms/libby_maccarthy/new_report_reveals_86_americans_ex
pect_companies_take
https://www.marketingcharts.com/brand-related-60166
https://www.marketingcharts.com/brand-related-60166
5. https://www.marketingcharts.com/brand-related-60166
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
6. 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
7. 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
https://trust.guidestar.org/how-nonprofits-can-build-
partnerships-with-businesses
https://www.thestreet.com/lifestyle/history-of-nike-15057083
https://about.nike.com/pages/airmi-sustainability
https://oceana.org/what-we-do
Hypothetical product concept example
Banana Republic Fit
I need this part below for Nike x Oceana concept
8. Hypothetical Product
Healthy Energy by Red Bull
Introduction
Since its launch in 1987, Red Bull has become the most popular
and successful energy
drink in the world due to its marketing through advertising,
sports events, celebrity
endorsements, and music. However, consumers are becoming
more health conscious. With this
ever increasing trend in health conscious consumers, our plan
for Red Bull is to create a new
healthier energy drink which we believe is important for Red
Bull’s image, as well as vital for the
company to be able to reach these consumers and to no longer
alienate them. For our proposal,
we will discuss our marketing plan, which will include internal
and external analyses, as well as
our methods for collecting data.
Environmental Context/Background of Problem
There is still an obesity epidemic in the United States, but at the
same time, more
individuals are trying to boost their health through diet and
9. exercise, meaning a tremendous
opportunity exists for marketing to health-conscious consumers
(Vong, 2012). As more
Americans are becoming more concerned about what they put in
their bodies, with regards to
the different types of food and drink, Red Bull needs to be able
to target these specific
demographics that are demanding healthy beverages. For this
demographic of health
consumers, there are three types which consist of: millennials,
baby boomers, and females
between the ages of 40 and 55 (Berry, 2013).
In order to appeal to all of these demographics, Red Bull needs
to make sure that this
drink meets the core requirements: healthy, has a good taste,
and is able to give consumers the
energy they need throughout the day. In order to appeal to each
demographic individually, Red
Bull needs to be able to have the energy drink presented in
various formats, such as cans,
bottles, and cartons. Baby boomers and older women are more
likely to drink from a bottle or a
carton, while millennials will most likely drink from a can. Out
of all of these demographics, the
most important demographic that Red Bull needs to be able to
target are the millennials.
Millennials are between the ages of 19 and 32. They are the
most aware of and are a part of the
healthy lifestyle trend more than any other generation.
Millenials want to understand and
become a part of the brand through social media sites and
interacting with their friends. If the
product does not meet their expectations, they have no trouble
switching to another brand or
actively ruining the brand by telling their friends how much
10. they disliked the product through
word of mouth.
Red Bull also needs to combat their perceived image about how
unhealthy their energy
drinks are. These drinks usually contain high levels of caffeine
and other additives, such as
taurine, ginseng, and carnitine that act as stimulants (Koelliker,
MD). Coffee has about 100 mg
of caffeine, while energy drinks can contain 500mg of caffeine.
Energy drinks are sold as
nutritional supplements, which means they do not fall under
FDA regulations. This means that
there is no limit to the amount or content of the ingredients in
energy drinks. If someone drinks a
large quantity of energy drinks, it can cause high blood
pressure, restlessness, seizure,
abnormal heart rhythms, and even death.
Red Bull needs to counter this by making sure their new line of
healthy energy drinks are
made from healthy mostly natural ingredients. Since energy
drinks don’t fall under FDA
regulation, they need to be able to regulate themselves and earn
the consumer’s trust by
properly labeling the ingredients on the back of their cans,
bottles, and cartons. Red Bull should
also lower the caffeine dosage, to at least the standard amount
that Coffee has. They also
should take out and replace some of the additives. The drink
needs to be able to be healthy
enough so that a consumer can drink large quantities of it,
without being in danger of their
11. health. If this new energy drink is successful, it would not only
help Red Bull’s image, but the
image of energy drinks as well.
Problem Identification
1. Industry Image. There is a disconnect between energy drinks
and a healthy way of living.
Energy drinks are for the “extreme” consumer who cares about
living life to the fullest and
pushing their boundaries. Staying up too late, needing extreme
amounts of caffeine to function,
doing activities that are dangerous to the normal person are
some basic situations where
energy drinks are warranted. An unhealthy lifestyle is
synonymous with energy drinks. This will
be a hard stereotype to break away from, especially if the new
“Healthy Energy” is displayed in
the same section as normal energy drinks.
2. High Competition. New energy drinks are coming on to the
market almost daily. With this
low new entrant level making it easy for new competition to
penetrate the market, it is hard for
Red Bull to keep their standing. Red Bull competes with other
well-known energy drinks like
Rockstar and Monster, both of which are large sponsors of
events and sports, much like Red
Bull is. In addition, there are also other large players that offer
products that compete with
energy drinks or serve a similar purpose to an energy drink even
if the users are not the same.
Products such as the 5 Hour Energy, SK Energy Shots,
Starbucks Espresso Double Shot and a
host of other energy shot like products also are quite popular in
the market In fact Redbull and
12. its major competitors also carry energy shot products.
3. Pricing. Energy drinks and energy drink products are often
known to be expensive. This
coupled with the overall industry image of it being an unhealthy
beverage linked to an unhealthy
lifestyle will be a problem. Trying to offer a better product
while hoping to be the cost leader in
this segment will be a feat almost undoable. Pricing will
determine ultimately how successful this
drink will become. If it is too expensive for people (especially
millennials) to afford, then our
target market is almost useless.
4. Breaking habits. People with a predisposition to drinking
energy drinks, or their preferred
source of caffeinated product have likely had that predisposition
habitualized. Getting users to
switch from coffee, tea, or an energy drink to another
alternative will be a difficult challenge for
the marketing message. If free sample are given at events, and
the marketing message weighs
heavily on the health aspects of this new product, only then will
consumers try our product and
potentially break their old habits.
Product/Business Concept
Target Consumer: Young, adventurous, and hardworking
consumers who are health conscious
that need that extra push drive at any given moment or
situation.
13. Benefits: A new alternative energy drink for consumers without
the additive ingredients with this
new health-conscious energy drink Red Bull can differentiate
their products from competitor’s
energy drinks and tap into the health-conscious consumers.
Comparative Claims: Using health conscious energy-building
ingredients, Healthy Energy can
still provide the benefits of what a traditional energy drinks
contain that helps improve
concentration, increase alertness, contributes to normal mental
performance, and reduction of
tiredness and fatigue.
Consumption: Consumers will be assured that while still
attaining the energy effects of that in a
regular Red Bull can, they will also feel positive in that the
ingredients being ingested into their
bodies are a healthy alternative.
Marketing Challenge: There are many misconceptions with
healthy alternatives especially
pertaining to taste. While avoiding any adverse effects such as
the large quantities of sugar in
regular Red Bull cans, most consumers might feel that flavor or
taste would be compromised.
Current consumers may not feel any particular way to healthy
alternatives or could be biased as
to not giving healthy Red Bull a fair chance in the market,
maybe leading inevitably to a product
flop. Can we still call this a Red Bull product without all of the
Red Bull ingredients? Will this
product be effective and still give consumers the wings
experience?
14. Secondary Data Collection
Although data based on a primary research would be ideal for
this project, because of time
constraints we will limit our data search to only secondary
sources. We plan to investigate
thoroughly all the available secondary data sources with a
special focus on other drink
categories that may be competition to Red Bull. During this
research we hope to find out:
-What is our most attractive target market?
-How old are they? What do they do for a living?
-What are the most popular beverages people use to stay awake?
-Coffee? Tea? Energy Drinks? Other? - Breakdown by
percentages -How many servings
do users drink? By the cup/can/shot?
-What are people’s habits with regards to energy drinks and
other caffeinated beverages?
-Usage times/situations? -How often do they use?
-What are people’s thoughts on the health effects of energy
drinks?
-Do they have a bad stereotype attached to them?
From the research and the data that we collect, we will
determine how to best market our
alternative to the unhealthy energy drinks to a consumer that
may be more health conscious,
but not prefer the taste of coffee or tea. The research findings
will assist us in positioning the
product, create a marketing message that will appeal to our
15. target market and price the drink at
an appropriate pricing level for success in the long term.