NIKE x Alessandro Michele

Executive Summary

v This marketing report exhibits how a partnership between a sportswear giant, like Nike, and a design expert, like Alessandro Michele, can be formed to serve the UK market in an innovative way. Some of the major findings in this report is how to appeal to the neo-consumer of Millennials and Generation Z through sustainable product design, omni-channel distribution, and an emphasis on marketing communication tools in order to achieve the marketing objectives and a favorable positioning in the market.

v The internal and external environments will be analyzed and used to determine a new target customer in which to form a positioning strategy that will drive a favorable perception of the brand.

v Additionally, the marketing mix will be discussed in relation to the new customer and this positioning strategy, focusing on what makes the collaboration unique, like the use of sustainable materials. An omni-channel distribution is explored by using Nike’s website, Nike’s application, and an instore experience at the flagship store.

v Lastly, the marketing communications strategy examines different tools that will be used to impact the media, the UK market, and consumers. A budgeting technique of media multiplier allows for a large budget to be spent on PR, advertising, sales promotion, and digital marketing.

Table of Contents

List of Figures

Figure 3.1………………………………………………………………………………9

Figure 3.2………………………………………………………………………………9

Figure 3.3……………………………………………………………………………..10

Figure 3.4……………………………………………………………………………..11

Figure 3.5……………………………………………………………………………..11

Figure 3.6……………………………………………………………………………..12

III. Introduction

In order to understand the current UK market and its trends, the internal and external environment was analyzed through a SWOT and PESTLE analysis. Firstly, The UK has aligned itself with the environmental and social efforts from the UN’s Sustainable Development Goals. Secondly, Nike has already shown efforts to be environmentally friendly in this existing market with a sustainable concept store in Shoreditch, London (Webb, 2019, p. 24). Lastly, the neo-consumers as Millennials and Generation Z were shown to be the most influential on fashion brands, saying that “…companies have a responsibility to address environmental and social issues” (Amed et al, 2019). Consumer demands for a sustainable environment are rising and this market is not unknown to the UK nor Nike, creating a perfect opportunity for this collaboration.

These analytical tools decided the new customer segment and the unique selling point of sustainability that will drive favorable perception of the brand. To increase brand awareness, marketing communications would be used to have customers engage in an immersive, cinematic experience (Mintel Academic, 2019a). Not only does this appeal to the neo-consumers by grabbing their attention (Bell, 2019), but it also fills the tactile aspect that the Nike flagship store in London was missing (See Appendix 1.1).

Furthering the target customer’s societal agenda of activism and inclusivity, the collaboration features gender-neutral designs and only uses 100% recycled and sustainable materials within a reasonable price. This partnership is positioned in the market more fitting according to the customer than its competitor’s collaborations, like Puma x Balmain and Adidas by Stella McCartney (See Appendix 1.4).

Firstly, this report establishes a new customer and how to target them according to their beliefs and style. Secondly, it defines each aspect of the marketing mix in relation to the customer and the UK market. Lastly, the marketing communications is itemized by importance through a media multiplier budgeting technique.

IV. Segmentation, Targeting, and Positioning

I. Segmentation and Targeting

The collaboration between NIKE and Alessandro Michele will target a new segment of customers. The future consumers are those of the Millennial generation and Generation Z, around 16-26 years old . The partnership will focus on the UK market and target undergraduate and postgraduate students who

are environmentally conscious and love to shop for clothing that grab their attention (Bell, 2019). This segment of consumers is unchartered territory for Gucci’s creative director, Alessandro Michele, while NIKE has expressed some sustainability in the making of their sneakers (See Appendix 1.1). Consumer demands from these generations include environmental and social sustainability, making this demographic a profitable segment (See Appendix 1.2). A survey was held about direct-to-consumer brands and 33% of consumers plan to do at least 40% of their shopping with these hyper focused brands (Bell, 2019), so a concentrated marketing strategy will be most beneficial for the targeted customer (See Figure 1.1). Millennials’ and Gen Z’s lives revolve around the digital world, so creating visually appealing and attention-grabbing advertisements on social media and on the NIKE website is a crucial part to informing them about NIKE x Alessandro Michele. Promotional ad campaigns will include models of all races and ethnicities of the same age range of our targeted customer, showing that everyone can wear this range, even if you’re not sporty.

II. Positioning

NIKE x Alessandro Michele is 100% sustainable. The product itself is what is perceived by the customers as valuable because of the high quality, performance materials used. The merging of a design and sportswear expert to create a sustainable, high end sportswear line creates a space for both to learn about the future of sustainability together through new technology (See Appendix 1.6). Customers will perceive themselves as unique, trendy, and environmentally conscious when wearing this line (See Figure 1.2).

Figure 1.1: Customer Profile of the targeted demographic

When looking at other sportswear collaborations with designers (See Appendix 1.4), NIKE’s partnership differs in the way of high-quality material and designs that can suit everyone. In addition, the brand’s price points inform of the quality yet keeps into account the targeted customer and their disposable incomes (See Figure 1.3).

V. Features, Pricing, and Distribution

I. Product Features

This collaboration focuses on the sustainable product elements such as the quality and performance of the materials The clothing line includes gender neutral designs using recycled materials, like cotton and viscose, and sustainable fabrics, like lyocell. In addition, each item will be colored through innovative dry-dyeing technology, which eliminates water waste and toxic chemical emissions (See Appendix 1.2). Muted colors are featured to enhance the environmental aspect of the clothing, faceted with earth tones The brand

Figure 1.2: Kapferer’s Prism of the NIKE x Alessandro Michele Collaboration

image is the future generations sporting the line in motion while still looking fashionable (See Figure 2.1).

With the design expertise of Alessandro Michele, the line will feature a unique sporty look for the target customer, without having to be sporty, which creates a trendy and cool attitude amongst the wearers (See Figure 2.2). Every product feature aligns with the brand image and will be expressed through the use of marketing communications to educate consumers.

Figure 2.1: Mood board and color palette

Figure 2.2: Mock product range

II. Pricing

Customers perceive the collaboration’s products as valuable through the quality and unique features of the line. This is why a value-based pricing approach is most relevant. Buyers deem the product features and the limited availability of this range as value for money, making them willing to pay the price of this line. In addition, strategic advertising increases the perception by selling the sustainable, yet chic mindset to the targeted audience through an exclusive launch event. Because of the high utility seen through the customer’s eyes, a skimming pricing strategy is beneficial to the amount of sales. Starting at higher price points increases the perceived status. This results in a desirability to shop from the brand, ultimately driving traffic to the Nike flagship store.

III. Distribution

Nike and Alessandro Michele’s collaboration will be sold throughout the UK online, however the in-store experience will only be held at the Nike Town flagship store on London’s Oxford Street, following a selective distribution method. The flagship store drives a lot of traffic even without a new product launch due to the amount of merchandise and the ambience that Nike Town has. According to McGoldrick’s retail environment model (See Figure 2.3), design, ambient, and social factors influence the customer’s shopping experience and their emotions; and Nike can improve on their tactile aspects of the store (See Appendix 1.1). When NIKE x Alessandro Michele drops, customers can immerse themselves in the world of sustainability and the whole design and manufacturing process of this partnership. Customers can watch a short film of the collaboration process and be able to feel the fabrics This idea will carry through to the Nike website and the Nike application, where the platforms change to a digital experience, similar to that of the in-store one. Online retailing is convenient for those who can’t go to the flagship store and are able to compare this collaboration to the likes of others. These distribution methods and retail environmental factors will lead customers to enjoy their time in the store, stay longer, spend more, and even recommend this partnership to others.

VI. Marketing Communications Strategy

The NIKE x Alessandro Michele collaboration is targeting the future generations of the world, who were brought up in the digital age of advertisements constantly trying to grab the attention of its users. Romania Rinaldi and Testa (2017, p. 116) says fashion brands are influencers of society and “creating products and services relevant to the neo-consumer, thereby helping them to live more responsibly, means assuming a social spirit and being a positive influence while at the same time increasing demand for the brand and creating value for the company.” This is why the partnership between NIKE and Alessandro Michele will develop the marketing mix through a multitude of marketing communication tools relevant to the neo-consumer (See Appendix 1.5).

I. Advertising

The line is going to be available for purchase on the Nike website and the Nike Town flagship store in London, as well. Customers are going to get a digital experience, similar to the in-store exhibition, as the website will be updated to feature the 100% sustainable range and exclusive photos from the launch event.

Nike is known for the inspirational slogans throughout their advertisements, and this collaboration will continue that ideal with “Envision the Environment.” This will be exemplified throughout the launch event, where people can hashtag the

Figure 2.3: A model of a retail environment’s influences on shopping outcomes (McGoldrick, 2002)

slogan on social media. In addition, advertisements on transit will motivate the younger generations to buy the sustainable line (see Figure 3.1).

To continue the momentum and encourage traffic to the store during the launch, in-store marketing includes an exhibition that will give customers an immersive experience of this sustainable sportswear line (See Figure 3.2). According to Mintel Academic (2019a), a cinematic approach to fashion was a very prevalent campaign theme in 2019. The short film shown at the launch party will be playing on a digital screen, informing people about sustainability and how this collaboration has achieved a design-oriented, environmentally conscious line (See Appendix 1.3). Sales promotion of the marketing tools is fulfilled by free reusable bags with the NIKE

logo.

Figure 3.1: Mockup promotional advertisement campaign

x Alessandro Michele

Figure 3.2: Mockup exhibition space in Nike’s London Flagship

II. Public Relations

Public relation tools are heavily relied on prior to the drop of NIKE x Alessandro Michele. Press advertising has been the preferred and most used channel, even over digital and outdoor media (See Figure 3.3). An emphasis on creating good press before and after the launch date proves to be crucial to the success of this collaboration. In response to this, marketing is going to start in Q1 with paid celebrity posts on social media before the launch party to create a buzz about the upcoming launch. In the first week of Q2, the launch event will take place a month before the actual release date of the line, where almost half of the budget will be spent. During the party, a catwalk show of every piece is going to be showcased, in addition to a short film of the design and manufacturing process. The venue will be plastered with promotional photos, swatches of the sustainable fabrics, but will be exclusive enough to drive editorial coverage Once the event exhibition is over, Vogue will feature a piece about the event and all about the line itself. Celebrity endorsement costs are going to proceed in order to promote the brand and “hype it up” even more (See Appendix 1.7).

III. Digital Marketing

Amongst Generation Z, 78% use social media websites or apps and 61% use their phones or computers to online shop (See Figure 3.4), and because of this, targeted and direct campaigns are on the rise. Digital marketing is another marketing tool that will be utilized in this joint effort with Nike and Alessandro Michele. This entails social media posts to Instagram, Twitter, and Facebook, in addition to the Nike application. On the Nike app, customers can buy the product, see a look book of the line, and be able to learn about the sustainable methods used in this line.

Figure 3.3: Recorded advertising expenditures on fashion (Mintel Academic, 2019a)

IV. Budgeting

Budgeting for the collaboration started with looking at how much Nike usually spends on marketing, or “demand creation” as the fiscal report states (See Figure 3.5) in addition to their annual revenues (See Figure 3.6) With Nike being a huge retailer and gaining revenue from retail stores and wholesalers, the budget for marketing is vast when using a media multiplier technique. This budget setting technique takes into account the previous year’s budget and media costs. In the fiscal year of 2019, Nike spent $3,753 million on marketing communications for the entire company, determining the budget for one partnership in the following fiscal year in the UK market as an approximate £63,000 (See Appendix 1.7) NIKE x Alessandro Michele focuses on engaging the audience in immersive experience through multiple channels. This is shown through the budget being spent on the launch event, the in-store exhibition, and expresses the importance of good press and exposure as well.

Figure 3.4: Digital activities performed by Generation Z (Mintel Academic, 2019b)

Figure 3.5: Total selling and administrative expenses (Nike Inc, 2019, p. 97)

VII. Conclusion

Mark Parker, Nike’s CEO, explains that “collaboration can help share your vision of the future and get you there faster” which is why a NIKE and Alessandro Michele partnership is beneficial to the fashion industry (HYPEBEAST, 2015). The sportswear giant and design expert join forces to create a sustainable, yet fashion-oriented clothing line. NIKE x Alessandro Michele targets the politically active and environmentally conscious consumer through strategic marketing communications. An emphasis on an immersive experience into the world of sustainable will generate positive feedback from the press and share the vision for an environmentally friendly industry.

Figure 3.6: Brand revenues (Nike Inc, 2019, p.95)

VIII. Bibliography

Information

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Photos

Figure 1.1, 2.1

Boddy, J (2019) Europe Colour Trend Concepts S/S 21. Available at: https://www.wgsn.com/content/board_viewer/#/83688/page/9 (Accessed 11 January 2020)

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Casey, C (2019b) Cut & Sew: Key Items Fashion S/S 21. WGSN. Available at: https://www.wgsn.com/content/board_viewer/#/85549/page/1 (Accessed 10 January 2020)

Fenton, C (2019a) Active Style Trend Concepts S/S 21: Transform. WGSN. Available at: https://www.wgsn.com/content/board_viewer/#/83905/page/1 (Accessed 11 January 2020)

Fenton, C (2019b) Active Style Trend Concepts S/S 21: Gamescape. WGSN. Available at: https://www.wgsn.com/content/board_viewer/#/83902/page/1 (Accessed 11 January 2020)

Fenton, C (2019c) Active Style Trend Concepts S/S 21: HomeSpun. WGSN. Available at: https://www.wgsn.com/content/board_viewer/#/83904/page/1 (Accessed 11 January 2020)

Saygi, R (2019) Virtual Reactive: Active Design Capsule A/W 20/21.WGSN. Available at: https://www.wgsn.com/content/board_viewer/#/84761/page/1 (Accessed 10 January 2020)

Figure 3.1

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Pinterest. (n.d. b). Inclusive Ultra-Chromatic Fashion Editorials. Available at: https://www.pinterest.com/pin/291889619601424802/ (Accessed 17 January 2020)

Pinterest. (n.d. c). SISYPHE presents SOUTHSIDE: Lost Boys 2016. Available at: https://www.pinterest.com/pin/291889619601424786/ (Accessed 17 January 2020)

Figure 3.2

Azzardodesign.com. (n.d.). AZzardo Emilio Black. Available at: https://www.azzardodesign.com/bathroom-interior/azzardo-emilio-black (Accessed 16 January 2020)

Nike. (n.d.). Nike Sportswear French Terry Shorts. Available at: https://www.nike.com/gb/t/sportswear-french-terry-shorts-RCxSC8/AR2931-357 (Accessed 16 January 2020)

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Verbanac, J. (n.d.). Nike House of Innovation on Behance | Retail design, Sign board design, Store signage. Pinterest. Available at: https://www.pinterest.com/pin/543880092478881951/?lp=true (Accessed 16 January 2020)

1.1 Store Audit

Design factors

(Layout of store, Signs, Merchandise Displays)

Ground Floor: Women’s Activewear, Sneaker, Air Force One Customization

- Large digital screen showing clips of active people

- differently levelled round pillars holding Air Force One

- Chain link fence backdrop for displays with tape strip design

- Urban Dancing experience with Headphones and TV’s

- Artistic Paint Mural adjacent to Digital Screen with same design

First Floor: Soccer, Football, Men’s Gym and Fitness, Jersey Customization

- Running Mannequins surrounded by neon light up displays of sneakers

- Running position mannequin displaying pants

- Digital screen showing the anatomy of running sneakers

- Display Box of sustainable thread making

- Recycle Sneaker Bin

- Digital Screens on shoe wall

- Soccer Displays of active mannequins with fake grass

- Cleat Shoe Wall with fake grass flooring

- Yoga posed mannequins

Second Floor: Customization, Toddler, Kids, Basketball, Streetwear

-Square pillar displays with basketball hoops holding Air Force’s

- Casual Streetstyle posed mannequins

- AirMax mirrored sneaker wall

- Uneven layered platform with casually posed mannequins

- Jumping height interactive display

- Actively posed children

mannequins in front of a tape strip design

- Dunking posed mannequin holding basketball

- Digital screen advertising recycling old sneakers

Third Floor: Women’s, Plus Size, Sneakers, Expert Studio

- differently levelled round pillars holding Air Force Ones with fencing

Ambient factors (Music, Lightning, Colours, Scents, Tactile aspects)

Music

-Ground floor DJ playing remixes of current pop music

-Third floor DJ

Lighting

- Spot lighting focused on the displays

- neon light signs in various displays

Colours - On the first 3 floors the colour of the walls are dark combined with colourful displays

- On the fourth floor the colours of the walls are white combined with mostly white displays

Tactile aspects

- not many experiential, interactive displays other than the urban dancing experience of the ground floor with headphones

Social factors (Staff, Shoppers)

-Staff wearing black

-Start desk

-Diversity of staff

-Different customers, mixed females and males

-Staff are wearing Nike lanyard and mostly Nike merchandise

-You can pay with the staff at special desks that are around the store when paying by card

-There is staff standing almost everywhere on every level, they are helpful

-People are interested in technology and displays

-The products are stocked, and staff was adding more

-Staff is predominantly men, but there were some women too

-There is always someone standing at cash desk

-There are also kids as customers - whole families that shop

-Football trail area - people are really interested in this and watching other people

-Staff is easy to recognise, friendly, accessible for everyone - They are all wearing black Nike clothes

-People are trying out shoes and clothes, there is a lot of people, different ages, mostly gen z and millennials but also families, people are mostly in 2 or groups, there is no many single buyers

-There is also security on every level

-There are queues to fitting rooms

-There was a DJ

In-store technology (Types of consumer-facing technology)

-Next to every look there is a scannable barcode which gives you the opportunity to visit Nike’s site and purchase the outfit online and take it on the spot

- whole DJ desk

- possibility to buy things not only at cash desks but also within the staff at specific points, only requirement is to pay by cash

- customisation of your own t shirts and shoes

- interactive displays about sustainability and recycling of shoes

- large digital screens with adverts

- recycle sneaker bin

- whole are where it is possible to run and try the shoes

- soccer displays of active mannequins with fake grass, moving posed mannequins

- digital strip screens displaying sneakers

- Jumping height interactive display

- order pick up

- football trail area

- Urban Dancing experience with Headphones and TV’s

- Air Force Customization display with chain link fence backdrop and tape strip design

- learn more – barcodes with the Nike app

- Nike app

Distribution channels (Channels offered by the retailer in-store)

MEMBER EXPERIENCE

Get access to member exclusive products, events and services

ORDER PICK UP

Reserve or buy your favourite styles online and pick them up in store

LEARN MORE

Scan products barcode with the Nike App to view additional sizes and colours

IN STORE ALL-STAR TREATMENT

Enjoy express checkout, store to door delivery and special store hours

Possibility of training with Nike and singing up to the workshops, getting more information

- Air Force Customization

display with chain link fence backdrop and tape strip design

- straight posed mannequins

- stretching posed plus size mannequin

- large round sneaker area with digital strip screens displaying sneakers

- actively posed mannequins

- round and square metal mesh sneaker displays

- posters of models wearing the activewear

- glass frame displaying the anatomy of the “ZoomX” sneaker

- Display Box of the sole contents of the sneaker

PHOTOGRAPHS:

Ground Floor:

Second Floor:

Outdoor Window Displays:

1.2 PESTLE Analysis

Political

- The UK has signed up to tackle the UN’s Sustainable Development Goals “to ensure sustainable consumption and production patterns” (Environmental Audit Committee, 2019)

Economic

- Brexit will result in “drastically increased annual tariff costs for retailers and fashion designers” (Petter, 2019)

- Median income in the UK has risen, making disposable incomes larger (Webber and Mann, 2019)

- Employment rate increased 0.5% (Webber and Mann, 2019)

Social

- “Nine in ten Generation Z consumers believe companies have a responsibility to address environmental and social issues” (Amed et al, 2019)

- “Gen Z will account for 40 percent of global consumers by 2020” (Amed et al, 2019)

- “33% of US consumers plan to do at least 40% of their shopping from direct brands within the next five years, with hero products and hyper - focused offerings being key purchase decisions” (Bell, 2019)

Technological

- Sustainable dry-dyeing technology

- Innovational manufacturing techniques make recycling materials easier

- “A visually overloaded website hurts conversion, as confused and frustrated shoppers won't buy” (Bell, 2019)

Legal

- Fashion companies must abide by the taxation and tariff laws when importing and exporting goods

- Health and safety laws regarding worker’s must be followed

Environmental

- Recycling and reusing fabrics that are already made, reduces waste in landfills

- Dry-dyeing fabrics reduces water waste and toxic chemical emissions

1.3 SWOT Analysis

Strengths

- The collaboration will only feature sustainable and recycled high performance materials

- An interactive shopping experience engages the customer beyond buying the clothes

- Grabs the consumer’s attention for the limited time it’s being sold and drives traffic to store (Rabkin, 2012)

Opportunities

- Sustainable consumer demands are growing amongst Generation Z and Millennials and the market is gaining recognition

For Nike

- Access to specialist skills

- Positive reputation in the sustainable market

For Alessandro Michele

- A large-scale exposure to a new customer base for the designer

- New kinds of products that Gucci doesn’t explore (Rabkin, 2012)

1.4 Competitors Analysis

NIKE x Alessandro Michele

PUMA x Balmain (Penney, 2019) (Eu.puma.com, n.d.)

(I-d,n.d.)

Weaknesses

- Nike as the retailer won’t make a huge amount of sales (Rabkin, 2012)

- High-quality, sustainably made materials could be costly to source and purchase

Threats

- Competition with other sportswear brands and their collaborations with designers

- Suppliers may not be able to supply the raw materials in mass amounts for mass consumption

Strengths Weaknesses

ADIDAS x Stella McCartney (Newbold, 2019) (First Network, 2019) (Stella McCartney, n.d.)

Strengths Weaknesses

Products Sweatshirts, tracksuits, leggings, joggers, accessories, sneakers

Boxing apparel, bomber jacket, dress, sneakers, accessories

Aligns Puma’s strong brand identity & Balmain’s unique designs

Very specified kind of style

Athletic wear, backpacks, sneakers, tennis outfits

Expensive for the usual Puma customer

54-399GBP

Useful, comfortable Only womenswear Pricing 70–300 GBP 55-450 GBP Increases status of puma clothing

Reasonable pricing for sustainable designer

Still may be expensive for the usual adidas customer

Quality High quality sustainable good to high Comfort fabrics Not premium quality

Expertise Design & sustainability Style Customer doesn’t need to be sporty to wear

Unique features Recycled fabric, drydyed colors, collab logo

Distribution Nike flagships, Nike website

Location the UK, launch in Nike Town on Oxford St.

Service Free shipping, free returns, personalize in store

Reputation

Positive for sustainability , minimalistic

Marcomms Launch event, social media, celebrity endorseme nt, billboards

Gold foil detailing & accents, collab logo

Selfridges, Flannels, PUMA’s website, Balmain’s website

Worldwide, launch party in Los Angeles

Less focus on material quality

High quality sustainable Sustainable, comfortable none

Sustainability Focus on material quality

Recognizabl e design Can seem tacky Recycled fabric, drydyed colors, collab logo

Multichannel distribution, accessible to all

Mass production in order to supply these channels

Adidas website, Stella McCartney website

An international customer base covered

Good Standard delivery, free returns

Flashy, over the top, daring

Lifestyle and culture differentiati on weren’t accounted for

Can’t exchange items

Aligns with Cara Delevingne’s personality & Balmain’s brand identity

Devalues the designer aspect

Worldwide, launch in west London

none

Environment conscious Not easily recognizable of the partnership

Accessible to all Not available in stores

Great customer service

Positive for sustainability, high quality, not mass consumed

International customer base covered

Free shipping, free returns, pick up in store

Aligns with both brand identities

Lifestyle and culture differentiatio n weren’t accounted for

No extra services like personalizatio n or alterations

Unknown to the masses who don’t know much about sustainability

Launch party, Vogue issue, social media, celebrity endorseme nt

Launch party created a lot of attention with Cara Delevingne

More focused in the US market, not international

Launch event, Vogue issue, celebrity endorsement

Grimes aligned w the partnership’ s identity

Not much social media or widespread communicati on

1.5 Marketing Mix Product

The product of this collaboration will focus on sustainability, as both Nike and Gucci have fallen under scrutiny for being unsustainable. To merge both sportswear and designer ideals, the line will consist of sweatshirts, tracksuits, leggings, sporty mock necks and accessories with a stylish, highend feel to the clothing. The products in this collaboration will be made of both high-performance recycled material and 100% sustainable fabrics.

Price

Because the target customer of this collaboration are Millenials and Gen Z’s, the prices should be similar to regular Nike merchandise. However, collaborating with designer Alessandro Michele will increase status of the clothing, increasing the prices. For example, Nike’s gender-neutral crewneck sells for 37.95 GBP, while the price of the Nike x Alessandro Michele gender neutral sweatshirt would sell for 120 GBP.

Place

This collaboration will sell in-store and online. There will be an in-store experience space where customers can interact with the collaboration through watching a short film about the process of making the sustainable line as well as the collaboration process. Nike x Alessandro Michele’s online presence will also be experiential and will transform the Nike and Gucci website with similar ideas to the in-store experience.

Promotion

Promoting this collaboration will happen through the use of social media and PR events. An exclusive runway experience will showcase the whole line as well as the sustainable clothing process. Celebrities, models, and environmentally influential people will be in attendance to create a buzz for the upcoming release of the line, driving traffic to the website before the drop and at stores for the release date.

1.6 Ansoff’s Matrix

(Johnson et al., 2018)

The NIKE x Alessandro Michele collaboration falls under the market penetration sector of Ansoff’s Matrix. Nike’s biggest competitor, Adidas, has created a partnership with Stella McCartney, who is an expert on sustainable fashion design. Sustainable sportswear already exists, however with the sportswear expertise of NIKE and the design expertise of Alessandro Michele, these two will join forces to penetrate this market and make it better. The main idea for this collaboration is to make sustainable performance wear with an emphasis on high-fashion design.

1.7 Marketing Communications Budget

(Nike Inc, 2019) (Mintz, 2015)