Logistics Danielle Pooley
Contents NikeGREEN 3 NikeGREEN Range 4 Locations 5-6
Edinburgh 7-8 Newcastle upon Tyne 9-10 Nottingham 11-12 Cardiff 13-14 Southampton 15-16
Shipping Containers 17-18 Visual Merchandising
Fitness Equipment 19 Display 20 Seating 21 Flooring 21 Music 21 Footwear Display 22 Interactive White Board 22 TV Screens 22
Marketing & Promotion
Advertising Campaign 23 Promotion 24 Apps 25 Bloggers 26 Guerrilla Marketing 27-28
Packaging 29 Payment Methods 30 Transportation
Sea Freight 31 Road Haulage 32
Insurance & Security 33 Total Costs 34 Timeline 35 Store Tour Calendar 36 References 37 2
NikeGREEN NikeGREEN is a one off retail project by sportswear brand Nike in conjunction with the 2012 Olympics. The project will consist of a mobile guerrilla store which will tour the UK, retailing a new range of footwear from Nike Considered Design, which uses recyclable and sustainable materials. The new range will cover a variety of sports featured at the Olympics and Paralympics, and will be available for the public to purchase from the temporary stores. The concept of NikeGREEN is based around the idea of considerate design. “Brands are no longer turning a blind eye to external factors that might affect their designs, as those external factors such as the environment, the economy, and society is what is shaping products.” (www.mudpie.co.uk/trends)
The guerrilla stores will be disused shipping containers, which will be transformed into mini NIKEtown’s using recycled furniture. The energy to power the stores will be generated by an ‘ongoing marathon and rowing machine’.
NikeGREEN Range The main categories which NikeGREEN will focus on are: - Running - Cycling - Athletics - Basketball - Football - BMX All sports have been chosen for their popularity at the Olympic Games and for their reflective target market to that of Nike. The range will be Limited Edition and will only be available at NikeGREEN stores. 300 pairs of each category will be created, 150 for males, and 150 for females. The retail price will vary between £80.00 and £120.00, with 5% going to the environmental charity ‘Friends of the Earth’. Following the store tour, the range will available through the Nike website during the Paralympic Games and will be based on a bidding system, with any profit above the retail price going to ‘Friends of the Earth’. Due to the technology and material composition of the footwear, the range will take approximately two years to design and manufacture.
Locations NikeGREEN will be placed in 5 main cities across the UK during the Olympics. The locations specifically exclude London as one of the objectives of the project is to bring the Olympics to people across the country. To keep the environmental footprint to a minimum, Ireland will not be included within the campaign. All of the locations have been chosen with a number of considerations: - - - -
Public transport system is efficient; encouraging visitors to reduce their environmental footprint. Each city is easily and quickly accessible from surrounding cities. Each city has a reputable amount of tourists. Each city is popular with younger demographic groups.
The NikeGREEN route has been carefully considered and is the most environmentally friendly.
Thursday 26th July- Sunday 29th July Edinburgh is the capital of and the second largest city in Scotland, and is currently the seventh most populous city in the UK. The city is well known for its festivals including the Edinburgh Fringe, the Edinburgh Comedy Festival and the Edinburgh International Festival. Edinburgh does not currently have a Nike store; however there are a number of stores such as Run & Become, which stock Nike merchandise. In 2008, the largest populous age group in Edinburgh was 25-44, with 156,425 people fitting into this age group. Alongside Edinburgh’s tourist market, these figures represent NikeGREEN’s main target market. Location West Parliament Square: in front of St.Giles Church, off the Royal Mile (shopping street) No fee for land rental. Need permission from the Courts and front holders. Street trading permit: £120 Total: £120
Newcastle upon Tyne
Thursday 2nd August – Sunday 5th August Newcastle is a city and metropolitan borough of Tyne and Wear in the North East of England. The city is the twentieth most populous urban area in England, and the sixth most populous area in the UK. It is well known for its culture and vibrant night life, hosting numerous gigs at a variety of locations around the city. The city has a network of Metro trains which run within and beyond the city centre. The main shopping areas of the city include Northumberland Street and Eldon Square. Newcastle does not currently have its own Nike store, however there are a number of stores within the city that stock Nike merchandise. Location Grainger Street: near Eldon Square and the main street towards the train station. Site rental: £950/annum Street Trading Daytime Pitch: £1442/annum Sunday Pitch: £368/annum Total: £2760
Thursday 9th August-Sunday 12th August Nottingham is a large city in the East Midlands which has a relatively small population, however the wider Nottingham urban area has a population which is three times the amount of the actual city. The urban area is currently the seventh largest urban area within the UK. With Nike having such a strong following with the inner city youth market, this will be the main target market for the store within Nottingham. Nottingham also has two prestigious universities, of which one of them is renowned for its Design department. Location Old Market Square: central part of the shopping area. Cost: ÂŁ900/day Street Trading Permit: ÂŁ120 Total: ÂŁ3720
Thursday 16th August – Sunday 19th August Cardiff is the capital, largest and most populous county of Wales. The city is a significant tourist attraction and is the most popular visitor destination within the country, attracting approximately 14.6 million visitors annually. St.David’s Shopping Centre is now home to a Nike store. Due to the city’s reputation for sport, large student population and visitor footfall, these will be the markets which NikeGREEN Cardiff will tap into. Location Queen Street: between St.David’s Shopping Centre and Queens Arcade. No cost for location. Street trading license £82.00 (max 3 days) £23.00 (Sundays) Total: £105.00
Thursday 23rd August – Sunday 26th August Southampton is the largest city in the county of Hampshire and is home to one of the largest Ports within Europe. In terms of population, Southampton is the third most densely populated city in the country after London and Portsmouth. The 20-24 year old age group is the most populous, with the 25-29 age group and 30-34 age group following. The University of Southampton and Southampton Solent University have a combined student population of 40,000. Location Bargate is a regular event space and attracts shopers and tourists. Space rental (inc. license) Thursday’s & Friday’s: £500/day Saturday: £700 Sunday: £700 Total: £2400
Shipping Containers Transumerism; a new form of consumerism which relates to a consumer who is affluent, style savvy and likes to be mobile. This consumer movement reinforces the want for mobile retailing. Refurbished shipping containers are fast becoming popular in retail, events and property. The concept relates directly to transumerism, with the idea of ‘travel equating to temporary freedom’. LOT-EK are a New York based architectural firm who pioneered the use of used containers for structural use. The company have created projects for Puma with ‘Puma City’ and clothing brand Uniqlo. Despite LOT-EK being more expensive than an alternative company, the mileage is considerably less. While New York to England is 3471 miles, Singapore (GRANDSTAND location) to England is 6739 miles. This will reduce the environmental impact of sea freight.
Container size: 320sq feet Production Cost: £29,971.94 2 Shipping Containers = £59,943.88 Production cost includes refurbishment, move & set up, electricity generator and other unforeseen costs. Design Fee: 15-25% of construction costs Total design fee (2 shipping containers): £12,400 Total Cost: £72,343.88 www.lot-ek.com Conversion Rate 11/02/11 1 USD = 0.62 GBP
Layout of NikeGREEN Scale: 1:100
Visual Merchandising Fitness Equipment
A treadmill and rowing machine will be available for visitors to use to create the energy for the store. As the feature is interactive, this will hopefully ensure that customers remember the project, and educate them on the importance of sourcing energy. The fitness equipment will be sourced locally to each location so as to reduce fuel consumption.
City Edinburgh Newcastle Nottingham Cardiff Southampton
Company Fitnessequipment. co.uk Hirefitness.co.uk Hirefitness.co.uk Homegymuk.co.uk Hirefitness.co.uk
Delivery £50 + £78
£25/month £25/month £56/month £25/month
£21/month £21/month £48/month £21/month
£30 £30 £30 £30
£106 £106 £164 £106 £725
+ + + +
£30 £30 £30 £30
Inspired by the Volvo C30 Experience and Sushi bars, there will be a conveyor belt within the store which will use visual story telling to show ‘The Story of Nike’s Considered Sole.’ The belt will be powered by the fitness equipment, which will show a direct correlation between the production of energy and its use. If there isn’t sufficient energy generated, then the conveyor belt will cease to move, or move very slowly. The conveyor belt uses approximately 150W of energy.
Conveyor Belt £459/ first day £138/extra days Total days: 34 Total: £6181.20 (inc. VAT) Delivery: £850 Total: £7031.20 www.sushi-conveyors.com
Items Items for the conveyor belt will be custom made in the Nike Innovation Kitchen, utilising the skills of various designers. An allowance of £5,000 will be put aside for materials and objects.
Andy Gregg, a Michigan based designer, designs furniture from recycled bicycle parts, using as much of the bike as possible. The S-2 Bench will be suitable for the NikeGREEN store as the project includes cycling and BMX in the footwear categories. The bench will be produced in green, and will be able to seat at least 2 people at a time. Building & shipping time: 7 weeks Cost: £324.03/piece x 2 = £648.06 P+P = £246.88/piece x 2 = £493.76 Total = £1141.82 www.bikefurniture.com
The flooring of the store will be made from Nike Grind to promote the Reuse-A-Shoe campaign. The campaign will be promoted at the store, with participating customers being given a discount to spend in the store.
To enhance the environment, music will be played through the store. The music will be from the athlete’s playlists (see Packaging).
The footwear display will be created from salvaged sports equipment that reflects each sports section that NikeGREEN are designing for. The display props will be sourced from various locations including second hand dealers who specialise in salvaged sports equipment. The footwear display props will be be given an allowance of £2000.
As Samsung is a worldwide partner of the Olympic Games, they will be a co-sponsor of NikeGREEN. The Samsung 650TS Interactive White Board allows users to interact with information on the screens. The board will provide information about the footwear, including the material composition, the technology included within the shoe and which athletes will be wearing them at the Olympics.
There will be two Samsung TV’s in the store showing coverage of the Olympic Games. Television License: £145.50
Marketing & Promotion Advertising Campaign
Nike’s advertising campaigns are some of the most successful in the world. The ‘Write the Future’ advert for the 2010 Football World Cup set a new world record for viral advertising, achieving 7.8 million views in its first week. The advertising campaign will be created from ‘recycled’ Nike clips and will be approximately 2 minutes long. The closing cut will simply say ‘Just Save It’, with the web address for NikeGREEN. This will encourage viewers to visit the website to explore the project. One of Nike’s iconic traits is innovation, so as TV advertising is now becoming outdated; the campaign will only be shown online. Wieden + Kennedy, Nike’s primary advertising agency, will create the clip. Nike will already pay W+K a retainer for their ongoing work. Project cost: £750/hour Project time: 4 weeks Total Cost: £1,212,800 YouTube Home Page Roadblock (front page of YouTube for 24hrs): £61,690 Home Page Roadblock x 10: £616,900 Nike will already pay Google for CPC’s (cost per clicks).
Promotion A twitter page will be established, which due to Nikeâ€™s global reputation, will spread through various networks. Nike will follow celebrities that are known for their active lifestyles, such as Fearne Cotton, Gordon Ramsay and Ellie Goulding. Publications such as Vogue and GQ, and editors like Hilary Alexander will also be followed. Through the following of the above people and organisations, this will encourage them to follow NikeGREEN, and thus their followers, creating a chain reaction. The website, www.nikegreen.com, will feature the advertising campaign, and have links to the facebook and twitter page. The web page will be a sub page of the Nike website. Details on the website will include: Locations: directions Store information: opening and closing times, Reuse-A-Shoe campaign etc Product information Project information Since the range is Limited Edition, visitors to the website can sign up for email alerts for products they like, in regards to how many are left.
Apps The NikeGREEN project will be incorporated into the Nike True City App, with information about the project, and directions to each store. Depending on where the user is, the closest city to their location will be suggested first. From the True City App, there will be a link to the official NikeGREEN App, which users can download free of charge. The NikeGREEN App will offer a range of features, including: - Energy Scorecard: visitors to the store who use the fitness equipment will have their time put onto a scoreboard within the App. - Bookmark Feature: App users will be able to bookmark items which they are interested in. - Athlete Playlists: The playlists, which will be distributed with the packaging within the store, will be available on the App. - Just Save It: The advertising campaign will be included with the App. Both the True City and NikeGREEN apps will have information about the Reuse-A-Shoe campaign, to encourage visitors to the take their old trainers along to the store.
Bloggers Due to the rise and world-wide use of the internet, new forms of journalists have been born: bloggers. NikeGREEN will invite 4 important bloggers to the stores to review and blog about the project. The bloggers being invited are as follows. Susie Lau http://stylebubble.typepad.com Susie Lau, known as Susie Bubble has become one of fashion’s most iconic bloggers, and is one of a few bloggers in the world who is able to make an income purely based on advertising through her blog. Based in London, she blogs about everything in the world of fashion, and regularly attends catwalk shows across the globe through invitation only. Laura Bailey & Dolly Jones www.vogue.co.uk/blogs/the-green-style-blog This blog, featured on the Vogue.com website shares everything eco, and regularly includes Livia Firth in discussions. Laura Bailey has been known to vocally campaign for ethical and fair trade fashion. Jonathon Baker www.retailstorewindows.com This blogger produces research for retailers, design companies and industry suppliers. His blog encompasses commercial interior design and visual merchandising. Blogger Expenses: £1000/each = £4000
Guerrilla Marketing Guerrilla Marketing has become an effective method over the years as it aims to get maximum results from minimal resources. NikeGREEN’s guerrilla marketing campaign will involve a flashmob: a group of people who suddenly assemble in a public place for a short amount of time, for entertainment purposes. NikeGREEN’s flashmob will consist of 2 groups of 10 runners who will be jogging through the city centre towards the location of the store from popular destinations, for example; in Newcastle, runners will jog from the train station and Eldon Square (a large shopping centre). The runners will wear Nike running apparel and the new footwear. The apparel will be manufactured using the Nike Considered Design Index, but will look like regular Nike apparel. One of the key elements of this campaign is to maintain Nike’s aesthetic qualities while having the underlying qualities of ‘considered design’. So as to gain attention, text will be printed on the vests with phrases such as: (Front) “Have you seen how big my...” (Back) “...organic cotton content is?” (Front) “ Did you know ...” (Back) “...I’m made from 8 plastic bottles?” The recruitment process will use the power of social networking to attract running participants. A facebook page will be created, promoting the flashmob, and giving details of information that needs to be submitted from each applicant. NikeGREEN will contact applicants to finalise details. Customised Nike top: RRP £40.00 Manufacture: £10.00 Total: £10.00 x 100 runners = £1000
Packaging As opposed to the conventional shoe box, NikeGREEN footwear will be packaged in a vacuum formed clear recyclable plastic. The design will have an integrated handle at the top and will hinge at the bottom. A small hole in the packaging will allow for a metal chain to be looped through with a USB stick hung from it. The USB stick will be manufactured from recycled materials and will have the NikeGREEN logo and a Limited Edition number laser engraved into it. The USB will include a playlist of 10 songs from a variety of athletes performing at the Olympics. Packaging Material: PVC Cost (inc. VAT): £7.72/unit = £13,896 www.theplasticworks.co.uk
USB Drives Bamboo Design 2GB: £4.46 (inc. VAT) Delivery: £10.00 Total: £8038 www.usb2u.co.uk
Music Tracks: £0.79/each Playlist: £7.90 Total tracks: £14,220 www.apple.com/uk/itunes
Payment Methods EPOS System An EPOS System will be used to make transactions. The EPOS system chosen includes: - Touch screen terminal - Receipt printer - Barcode scanner - Cash drawer The supplier used for this item enables the buyer to resell their product after use. EPOS System x 2 Total: £5997.60 (inc VAT) www.eposdirect.co.uk
Chip & Pin EPQ Terminal A Chip & Pin terminal will be hired for the store so that customers can pay by card. Due to the price of the items, it is presumed that the majority of customers will pay by card. Set up Fees, Delivery & Pre-paid Return: £35.00 Refundable Deposit: £245.00 EPQ Terminal x 2 Total: £560.00 www.newhorizon-systems.co.uk
Till Rolls Till rolls will be needed for the receipt printer. The till rolls will be manufactured from recycled paper, and will feature the NikeGREEN logo on them when printed. Due to the short delivery time of the company, more boxes can be ordered throughout the store tour. Box of 40: £9.25 P+P: £6.95 Total: £19.44 (inc VAT) www.tillrollsdirect.co.uk
Transportation Sea Freight As LOT-EK is based in New York, the shipping containers will be shipped from New York to Liverpool using sea freight. Due to the fact that the containers will include glass, the containers will need to be shipped on the basis of last on, first off so as to avoid damage. New York to Liverpool Freight: 2 x Containers = £2967.42 Insurance: £27.88 Additional Costs: £1395.80 Total: £3648.86 Southampton to New York Freight: 2 x Containers = £2300.82 Insurance: £27.88 Additional Costs: £1761.20 Total: £3383.95 Total: £7032.81 www.freight-calculator.com
Road Haulage To transport the shipping containers, a company that specialises in road haulage for abnormal loads will be required. The containers will need to be taken off the vehicle, so a flat bed will need to travel with the main vehicle. Locations Liverpool Edinburgh Edinburgh Newcastle Newcastle Nottingham Nottingham Cardiff Cardiff Southampton Total
Vehicle (£) 960
Flat Bed (£) 960
Total (£) 1920
A small truck will be needed to transport the footwear and visual merchandising for the store. An 18 Tonne box with a tail lift will cost as follows: £475.00/week 4 weeks = £1900 Fuel = £25,000 Total = £26,900
Insurance & Security Insurance
Due to the cost of the shipping containers and the visual merchandising equipment, insurance will be needed throughout the period of the project implementation. ÂŁ50,000 contents cover (inc VAT): ÂŁ3500 www.event-assured.com
All of the merchandise will be removed at night and stored in the truck, which will be taken to a secure holding unit. The shipping containers will have a Rapid Deployment Alarm System on them. The system enables 24/7 wireless security and will allow the system to be attached to both containers. Cost: ÂŁ792
Total Costs Logistic
Store Tour Calendar
Image References 1. BMX Bike: http://www.flickr.com/photos/cavanimages/3480591423/ 2. Starting Line: http://www.flash-screen.com/free-wallpaper/olympic-games.html 3. Nike Basketball: http://niketalk.yuku.com/topic/179407/t/Nike-basketball-
Wallpapers-anyone.html 4. Edinburgh: http://www.cav2005.inf.ed.ac.uk/ 5. Edinburgh West Parliament Square: http://www.flickr.com/photos/hotpixuk/4538157205/in/photostream/ 6. Newcastle: http://www.flickr.com/photos/irashid007/3810258569/ 7. Newcastle Grainger Street: http://www.flickr.com/photos/otisluxton/3387839660/ 8. Nottingham: http://www.flickr.com/photos/decipher_shot/favorites/page18/?view=m 9. Nottingham Market Square: http://www.spacesyntax.com/en/value.html 10. Cardiff: http://www.comp.glam.ac.uk/ukais2000/UKAISVenue.htm 11. Cardiff Queen Street: http://www.aidan.co.uk/photo7158.htm 12. Southampton: http://www.henpartyuk.co.uk/Locations/Locations/England-South/ Southampton.aspx 13. Southampton Bargate: http://www.suht.nhs.uk/WorkingHere/Benefitsofworkingforus/Benefitsofworkingforus.aspx 14.Container by LOT-EK:http://lot-ek.com 15. Volvo C30 Experience: http://www.knock.se/volvo_c30_experience_gothenburg. aspx 16. Conveyor Belt: http://www.sushiconveyor-hire.co.uk/pdf/Portable%20Layouts. pdf 17. S-2 Bench: http://www.bikefurniture.com/pagesother/1bench1.html 18.Reuse-A-Shoe: http://www.nikebiz.com/responsibility/community_programs/ reuse_a_shoe.html 19. EPOS System: http://www.eposdirect.co.uk/ 20. Globe: http://uk.ibtimes.com/blogs/articles/11288/20091112/mission-statement. htm 21. Hallett Silbermann Truck: http://www.hallettsilbermann.com/ 22. Security System: www.compoundsecurity.co.uk/rapid-deployment-alarm-system
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