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A POP UP SHOP FOR NIKE MOROCCO

HANNAH PLEASANT JANIS M. SHANE AIDAN TOOHEY PROFESSOR ALESSANDRO CANNATA FASM 410


1 2 3

COMPANY SUMMARY PROFILE HISTORY CORPORATE STRUCTURE BRAND IDENTITY SWOT ANALYSIS CURRENT COMMUNICATIONS POSITIONING/DISTRIBUTION

MARKET ANALYSIS COUNTRY OVERVIEW MARKET OVERVIEW PESTEL ANALYSIS COMPETITORS

TARGET CONSUMER

DEMOGRAPHICS/PSYCHO GRAPHICS BEHAVIORAL TRENDS CUSTOMER PROFILE

ABOUT THE STORE

AREA LIFESTYLE LOCATION LEGALITIES HR STRUCTURE DESIGN PRODUCT ASSORTMENT

PROMOTIONAL PLAN

PROMOTIONAL ACTIVITIES

FINANCIAL PLAN

SALES FORECAST AVG. PRODUCT PRICING OPERATING EXPENSES INCOME STATEMENT

CONCLUSION

4 5 6 7


Nike is an American athletic brand with a strong global presence. As a leader in innovation Nike continues to revolutionize it’s products. Their mission is to bring inspiration and innovation to every athlete in the world.


1964

1964

1971

1972

Blue Ribbon Sports is founded

Phil Knight & Bill Bowerman start the company with only $1,200

Nike is created and Carolyn Davis is paid $35 to design the swoosh logo

Nike’s first model the “Waffle Shoe” us debuted at the U.S. track and field trials

1990

1988

1984

1982

The first Niketown store opens in Portland, Oregon

Nike releases the famous “Just Do It” campaign, continuing their innovative use of advertising

1993

1998

Nike develops reuse-a-shoe program toward sustainability efforts

Phil Knight commits Nike to strict standards for manufacturing facilities

Nike signs Michael Jordan to a contract worth $500,000 a year

1999

Bill Bowerman the co-founder of Nike dies at 88 years old

Nike becomes the #1 supplier of athletic shoes in America

2003

Nike buys bankrupt Converse for $305 M

2004

Nike buys Hurley and enters the surf industry


Nike Inc. (NKE) is a publically traded holding company whose subsidiaries include Converse and Hurley. Their business consists of the design, development, marketing, & distribution of footwear, apparel, equipment, & accessories for a variety of different sports and activites. They have 70,700 employees globally. Nike does not manufacture their own products but instead they have contracts with 408 factories in 39 countries. In the fiscal year of 2015, Nike made 32.2 billion dollars in revenue.

PHILLIP H KNIGHT CHAIRMAN EPIRITUS

MARK PARKER CHAIRMAN, PRESIDENT, CEO

DAVID AYRE EVP, GLOBAL HR

MICHAEL SPILLANE PRESIDENT, PRODUCT & MERCHANDISING

TREVOR EDWARDS PRESIDENT, NIKE BRAND

HILARY KRANE EVP, ADMINISTRATIVE OFFICER & GENERAL COUNSEL

ANDY CAMPION EVP, CFO

JOHN SLUSHER EVP, GLOBAL SPORTS MARKETING


PRODUCT

Nike’s products are innovative and performance based. The company strives to make efforts towards developing more sustainable products by reusing wasted materials. Nike is a leader in technology, they’ve developed the first ever self lacing shoe which puts the company ahead of its competitors.

As an organization Nike was bred in America but has since grown to become a global phenomenon. Nike concentrates its efforts on revolutionizing the athletic industry. The company has stores across the world, featured in almost every continent.

ORGANIZATION

PERSONA Nike is known for its classic swoosh icon. The name itself stems from the Greek Goddess of Victory. Aside from these notorious icons and symbols, many athletes represent the brand, promoting its image. Athletes like Lebron James, Serena Williams, and Michael Jordan are some notable athletes to name a few.

Anyone who wears Nike, is an athlete. Able bodies do athletic things, that is the image Nike presents itself to its customers. Customers are competitive and motivated to be the best, whether casually dressed or while performing in action. Nike customers have a no quit, “Just Do It” attitude.

SYMBOL


STRENGTHS

WEAKNESSES

Nike has a strong global brand recognition Nike offers a wide variety of product categories

Nike is highly saturated throughout the global marketplace

Nike utilizes and creates unique technologies to use in its products

In the past Nike has been exposed for manufacturing misconduct

Their products are readily available in brick and mortar and ecommerce platforms all over the world Nike collaborates with a variety of artists and athletes on products and design

OPPORTUNITIES

THREATS

Lifestyle trends such as athleisure and the aesthetic of the sneaker heads show continuous growth and influence Growing omnichannel and ecommerce Platform based technologies such as the Nike Fuel band are bringing Nike into more tech based industries Increase sustainability within production and technologies Expansion into Middle East and Africa

There is a lot of competition within the athletic apparel industry There has been an increase of counterfeit goods


Nike is a brand that is known for its campaigns. Their ads reach a vast audience and often feature popular celebrities or athletes. They advertise on a variety of different platforms including television, print, and also social media. Their social media channels each have millions of followers. Sponsorships are another way that Nike gets its brand in front of the consumer. They sponsor college and professional sports teams alike for sports such as soccer, football, baseball, and many others. Since 2015, Nike has raised its advertising budget by 10% bringing the amount allocated to $804 million dollars.


AVERAGE PRODUCT PRICING (IN USD)

WORLDWIDE STORE COUNT

1400

1800

1200

1600

1000

1400

800

661

600 400 200 0

198 335 Nike

1,698

1200 1000

203

153

190

200

70 159

264

256

54 114 92

Under Armour

Adidas

Reebok

Apparel

339 Puma

100 211 89 New Balance

600

Accessories

Nike is a leader in innovative technology. The company has a large presence as a global ambassador. Their online infrastructure is seamlessly efficient as they were ranked 61st for Internet Retailer Top 500 in 2015. the Overall, Nike’s product assortment is extensive and ranks higher in cost compared to direct competitors.

600

400 200 0

Footwear

1,045

800

212 Nike

Under Armour

220 Adidas

Reebok

200 Puma

New Balance


WORLDWIDE REVENUE Worldwide Revenue North America

Western Europe

Central & Eastern Europe

Greater China

3.7 B 869 M 1.4 B 1.4 B 5.8 B

14.7 B

Japan

Emerging Markets

Nike is available all over the globe. Nike products are sold through its own brick and mortar locations, including in-line and factory stores. There are 196 factory stores and 34 in-line stores domestically; abroad there are 588 factory stores and 72 in-line stores. Products are also sold through e-commerce and licensed third party retailers.


Morocco has a large and wealthy population of 34 million people. The country is both economically and politically stable, offering higher security compared to other countries in Africa. There is a high tourism rate and the government is committed to becoming the top 20 destination by 2020. There is an overall increase in tourists from Europe and Asia as the retail density remains low. There is an increase of investments made by international retailers, as they are operated through partnerships in Morocco. Retail growth has increased by 5% annually since 2005. Most retail locations are placed in traditional stores, small shops, open markets, outlets and supermarkets. Shopping malls are very prevalent and e-commerce is rapidly growing.


FORECAST SALES OF APPAREL, FOOTW EAR AND SPORTSW EAR (MOROCCAN DIRHAM MAD MILLION) Apparel

Footwear

Sportswear

16,000.00MAD

14,000.00MAD

12,000.00MAD

12,107.50MAD

12,353.80MAD

12,612.10MAD

12,880.70MAD

13,164.70MAD

10,000.00MAD

13,534.90MAD

9,651.60MAD

8,000.00MAD 6,968.50MAD

7,426.90MAD

7,920.80MAD

8,453.20MAD

9,028.80MAD

6,000.00MAD

4,000.00MAD

4,700.50MAD

4,835.80MAD

4,996.10MAD

5,130.50MAD

5,265.50MAD

4,573.70MAD

2015

2016

2017

2018

2019

2020

2,000.00MAD

0.00MAD

Moroccans are increasingly adopting western habits. They are taking up a greater interest in personal health and attending gyms or health clubs. Sports are another way that people are staying active. Soccer is the most popular sport in Morocco. The rise in athletic trends has resulted in athleticwear accounting for 24% of total apparel and footwear sales in Morocco. Nike and Reebok are the leading athletic brands sold in the country. There is a very large counterfeit industry within Morocco which directly impacts the sales of popular athletic brands. As a result, consumers prefer to purchase their products directly from retailers instead of from small markets. E-commerce is also rapidly growing within Morocco and they currently have about 18 million internet users.


- Growing infrastructure within the country. More roads are being built making it easier to travel around - Projected to become one of the top 20 international tourism destinations by 2020 POLITICAL - High investment - Stable government and opportunities for political environment - Home to the leading port international retailers - Retail has grown at 5% since within Northern Africa - Anti-terrorism acts in place 2005 to protect against militant - Increase development of shopping malls groups - High growth rate within - High concentration of E-commerce counterfeit goods as a - International retailers - High shipping tariffs on operate mainly through imports and exports partnerships - 85% of retail business is carried out through small scale informal operators

- Low literacy rate throughout the population - High rural unemployment rate

ECONOMIC

ENVIRONMENTAL

- Increase in minimum wage in 2015 - Low oil prices - Total Retail Sales in 2015: SOCIAL - Population: 34 Million $39 Billion

LEGAL

TECHNOLOGICAL

- 18 Million internet users - High digital piracy - In 2015 cell phone users increased by 65% and text message traffic increased by 31.8%

- Ranked 64 out of 180 by Environmental Performance Index

- Progressive changes for intellectual property rights - Non-discriminatory legal system for foreign investors - Counterfeit goods causing great economic loss


ADIDAS

Description and History Founded:1949 by Adolf Dassler Headquarters: Herzogenaurach, Germany Current CEO: Herbert Hainer Mission: “The Adidas Group strives to be the global leader in the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. We are committed to continuously strengthening our brands and products to improve our competitive position.” Scope and Size Adidas is an International Brand with a focus on sportswear and equipment. As a company, they employ over 55,000 people in 160 countries. They have 1,698 brick and mortar stores worldwide. In 2015 Adidas had sales of approximately 18.4 billion dollars.

PUMA

Description and History Founded:1924 by brothers, Rudolf and Adolf Dassler Headquarters: Herzogenaurach, Germany Current CEO: Björn Gulden Mission: “To be the fastest sports brand in the world” Scope and Size Puma is an International Brand with a focus on designing and developing footwear and apparel. As a company, they employ over 10,830 people. They have 600 brick and mortar stores worldwide. In 2015 Puma had sales of approximately 3.5 billion dollars.


REEBOK

Description and History Founded:1895 by Joe and Jeff Foster Headquarters: Canton, Massachusetts Current CEO: Matthew H. O’Toole Mission: “Always Challenge and Lead through Creativity” Scope and Size Reebok is an International Brand with a focus on designing and developing footwear and apparel. As a company, they employ over 9,000 people. They have 220 brick and mortar stores worldwide and generate 4 billion in sales annually. Reebok is an American sportswear brand specializing in athletic apparel and footwear. It is the official crossfit brand. The company is a subsidiary of Adidas group which was acquired in 2006. The first women’s athletic shoe was debuted in 1982.

UNDER ARMOUR

Description and History Founded:1995 by Kevin Plank Headquarters: Baltimore, MD Current CEO: Kevin Plank Mission: “Make all athletes better through passion, design and the relentless pursuit of innovation” Scope and Size Under Armour is an International Brand with a focus on designing and developing footwear and apparel. As a company, they employ 13,400 people. They have 193 brick and mortar stores worldwide and generate 4 billion in sales annually. Under Armour is an American sportswear brand specializing in athletic apparel and footwear. Founder and CEO Kevin Plank was a former University of Maryland football player that found the need for moisture wicking shirts. Under Armour has since expanded beyond football and is now a leader in athletic apparel and footwear.


Brands primarily sell through third party retailers within Morocco and therefore Nike has quite a few indirect competitors within the country. Despite the fact that they all sell the product of Nike’s direct competitors, they also sell Nike products. The direct competitors are: Go Sport, Planet Sport, InterSport,Decathlon, City Sport, and Urban Jungle.


DEMOGRAPHICS 50% of Morocco’s population is under 30 60% of Morocco’s population is in the middle class 60% of population are debit and credit card users 60% of population lives in urban areas The median age of the population for males is 27 and females 29.

PSYCHOGRAPHICS Official languages spoken are Arabic, Berber and French as an unofficial second language. French is typically spoken when used for economics, government and education. Roughly 56% of people pursue secondary education and 11% pursue higher education. Islam is the official religion of Morocco. Men and women tend to dress modestly. The main ethnicity is Arab-Berber but there are many people from other parts of Africa as well as European and Spanish foreigners. Men and women predominantly dress modestly and the Moroccan people are known for their generosity and friendliness.

BEHAVIORAL TRENDS It is custom for businesses to close at noon until 2 PM for lunchtime. Moroccans tend to shop for sport related footwear over apparel. There is a large football fan base with 83 professional football clubs national teams sponsored by Adidas There is an overall positive economic outlet with a 5% GDP growth in 2015. Morocco’s middle class has the disposable income to spend on branded and higher priced apparel and footwear. As a whole the retail industry contributed to 11% of Morocco’s GDP, employing 1.2 million people Morocco attracts high interest rates for foreign direct investment which positively impacts their currency. There is a high count of illegal importing of products from Turkey and China. Counterfeit and illegal imports contribute to 85% of apparel and footwear sales, reflecting a strong demand for purchasing goods online. There is a 43% increase in foreign citizens from countries: Algeria, France, South Sudan, Italy, Libya, Saudi Arabia, Yemen, Jordan.


Name: Zineb Azad Age: 33 Education: Université Cadi Ayyad in Marrakech (Cadi Ayyad University) Bachelor’s in Marketing Marital Status: Single Occupation: Event Marketing Coordinator Income: 180,000 MAD/year ($17,845.66 USD)

Names: William and Charlotte Smith Ages: 36 and 32 Education: King’s College, London Occupation: Telecommunication Director and Part Time Pilates Instructor Income:120,000 pounds/year ($149,789.95 USD 1,510,923.74 MAD)

When Zineb is not busy tending to her work she enjoys dining out with friends and spending time in the local Medinas (markets). She is a member at her local gym club and enjoys a wide range of physical activities from yoga, cycling and boxing. Zineb lives outside the city of Casablanca but commutes to work by the city’s TRAM system or her car.

William and Charlotte have been married for five years. They met while both attending King’s College in London. Together they own a recently renovated flat just outside of the city. Last year they purchased a vacation home in Morocco. The love taking trips into Casablanca and being around the culture. William and Charlotte are a very active couple. Charlotte participates in the London Marathon every year. William works as a pilates instructor twice a week when he is not doing volunteer work.

Name: Karim Goumri Age: 28 Education: University of Hassan II Occupation: Financial Analyst Income: 205,920 MAD/year Karim is a recent graduate living and working in the city of Casablanca. He lives in the Maarif neighborhood of downtown Casablanca and has a relatively short commute to work. Karim works as a financial analyst for BMCI and takes frequent trips to Paris to visit their headquarters. In the evening Karim meets up with a group of his friends to go running. They consider him to be well informed on new fitness products and often come to him for advice before making purchases.


The city of Casablanca has a population of more than 3 million residents making up 16.4% of the country’s total population. The city’s port makes it an economic hub for transporting imported and exported goods. There are many luxury homes, beach front hotels and restaurants along the shoreline in Casablanca’s Corinche district. While Casablanca is the most developed and fast paced city, it is still rooted in the traditions of Sunni Muslim where it is preferred that men and women dress modestly. Morocco’s middle class has the disposable means to spend on branded goods, and Casablanca is the premier destination for shopping. In a country notorious for the selling of counterfeit goods, it is important that shoppers are able to purchase brand name merchandise from trusted retailers. Casablanca is an urban environment that has an up and coming art and music scene, a variety of restaurant cuisines and high-end boutiques. Western culture has influenced people to obtain a healthier lifestyle, participate in various fitness activities and take part in the latest fashion trends. The city has some luxury real estate developments that feature communities with golf courses, soccer facilities, fitness clubs and schools. There are many retail developments opening throughout the city, attracting many western brands to lease space within the shopping malls and centers.

ATTRACTIONS

Some key attractions for shopping in Casablanca is the Bouskoura Golf City Shopping Center and the Zenata Centre Mall. Both of these developments are in the works of opening soon. The Bouskoura Golf City Shopping Center will feature various amenities from shops, golf courses, fitness clubs and more. The Zenata Centre Mall will be opening in 2017 and is planned to cover 90,000 m2 of land, housing 250 stores and 3,650 parking spaces. Casablanca is along the coastline with many scenic views and nightlife activities in La Corinche district. Beach club Miami Plage, is one of the largest in the city which features pools, basketball courts, bars and more. In addition to these attractions there are many monumental Mosques to visit, with a rich history of architecture dating back beyond the 20th century.

FACTORS

Public transportation is an affordable and reliable method for commuting. There are taxi’s, buses, trains and trams that go throughout Casablanca and Morocco. Businesses close at noon daily for lunch time until 2 o’clock, except during the month of Ramadan when they remain open at mid-day but close earlier in the afternoon.


LOCATION

SALES POTENTIAL

Nike’s pop up shop will be featured in Morocco’s most populated and also the most metropolitan city of Casablanca. Casablanca is highly saturated with many shopping malls and centers, the Mall of Morocco is the most popular shopping mall in the city. It is the largest mall in Africa spanning 70,000 m2, with 3 levels of stores selling over 600 brands. The location serves as a pivotal place for entertainment with a variety of stores, restaurants and interactive attractions. The mall of Morocco is not only a key destination for tourists, it is also a place for locals to spend their entire day exploring the sights and partaking in activities in the mall.

The Nike pop-up shop will be open from September through November. During this time of the year, the weather is pleasant and there is a peak in tourism during this season. Morocco Mall is the prime location for shopping, bringing 15 million visitors a year. There are approximately 41,000** visitors in the mall per day.

The Mall of Morocco has something for every kind of customer as people come to enjoy both shopping and leisure activities. Store categories vary from high-end luxury goods, sporting apparel & equipment, home decor and so much more. Many people come to the mall to enjoy the IMAX movie selections, musical fountain, indoor aquarium, indoor theme park, and skating rink. Services provided by the mall include: a private lounge, specialty free parking, shopping bag service and valet parking. The mall also features a service for reserving taxi’s called iTaxi and there are two levels plus an outside lot for parking. In addition to these services there is a pharmacy, mosque and food market for shoppers convenience. There are 350 retail spaces available in the mall, the Nike pop up shop will be located on the 1st floor diagonal from it’s top direct competitor, Adidas. We believe that this will be the best location for our pop shop as it will generate the appropriate sales and foot traffic in a highly concentrated area.

**Calculation estimated: 15 million visitors a year / 365 days a year = 41,095.89 visitors per day

ESTIMATING COMPETITION In the mall, there are many indirect competitors that sell brands like Reebok, Puma, Under Armour and more. These local retailers only feature some Nike products but do not encompass the full Nike store experience. City Sport, Planet Sport, and Sports Plus are amongst the most popular sport apparel and footwear retailers in Morocco. In regards to direct competitors, Adidas has a strong presence featuring two stores, one for kids and the other, adults.


Payment

Building

For the exchange rate between Moroccan currency and US currency, one Moroccan Dirham is worth tens cents of a United States dollar. In 2014 the Moroccan Prime minister raised the minimum wage to Dh13.46/hour in the private sector and the public monthly minimum wage to Dh3,000. Sixty Percent of the Moroccan population are credit and or debit card users.

Since the Nike pop up shop of Morocco is located in a mall, the building regulations and restrictions are not as strict as they would be if this were being built in a freestanding location somewhere else within morocco. Another ease is that a vacant store front will be used for the location rather than kiosk in an open area within the mall.

Trade

Health and Safety

Morocco has a Free Trade Agreement that was signed on June 15, 2004. The EU has an Association Agreement with Morocco that was signed in February of 1996 and covers all sectors of the economy pertaining to trade. Nike contracts to 408 factories in 39 countries across the globe making it easier to move the product to the venues that it needs to go to.

International health and safety codes must be followed within this store location. Since there will be fitness class offer within the location, proper cleaning supplies and sanitary precautions will be taken to ensure the safety of employees and customers alike.


The Moroccan Nike pop up shop will be headed by a General Manager who will handle with the overall scheduling and organization of the store. The general manager will then be supported by two Assistant manager who will help with the managing of the employees and tasks such as merchandising and customer service. There will also be two lead employees/ key holders that will support in the daily task and also have the ability to open and close down the store. There will be ten store associates. They will all have the ability to operate as cashiers and customer service. The janitorial duties will be carried out by the whole staff and not have a designated position. The employees will not be hired from local areas but rather from within Nike itself choosing to bring in highly trained employees. These employees will be recruited from staff in France. However, the trainers and instructors will be hired from gyms around Casablanca to ensure that they have all of the proper local certifications for their field.

GENERAL MANAGER

ASSISTANT MANAGER

ASSISTANT MANAGER

TEAM LEAD

TEAM LEAD

STORE ASSOCIATES


MOOD BOARD

FLOOR PLAN CHANGING ROOMS STORAGE

CUBBIES

YOGA STUDIO

MIRROR WALL GLAZED GLASS WALL

CHANGING ROOMS

MANNEQUIN CHECK OUT

MANNEQUIN WOMEN DISPLAY

MEN DISPLAY

SHOE DISPLAY

MANNEQUIN SHOE DISPLAY SOCK DISPLAY

JERSEY DISPLAY

BENCH GRASS FEATURE SHOE DISPLAY SOCCER BALL DISPLAY

FLOOR PLAN WITH TEXT

ENTRY/ EXIT


Upon entering the store customers will be reminded of the Nike brand identity by using similar displays as existing Nike stores. The store will use a free flow layout of displays and product in order to utilize the space in the most productive way. Directly to the left, past the entrance turf flooring, there will be the soccer section to imitate an ‘on field’ environment with an array of cleats, socks, jerseys, and shorts. To the right, men’s and women’s footwear will be displayed with benches to try on product. Continuing on into the store men’s apparel will be located on the left side of the store and women’s on the right. After passing through the apparel, the checkout counter will be placed on the left passed the women’s apparel with the fitting rooms directly across from the cash registers. At this point a glass wall separates the fitness studio space from the rest of the store. Behind the glass wall the studio space contains a wall of mirrors, changing rooms, as well as shelving for yoga mats and other fitness equipment. The Nike pop-up store will feature a dual place for retail shopping and a studio space for fitness classes. The overall design of the popup shop features industrial elements of heavy stainless steel, contrasting with wood flooring as well as concrete accents used throughout the interior.

STORE ENTRY VIEW

The purpose of incorporating wood is to evoke a calm and . welcoming emotion, similar to a yoga studio. The retail space will have a subtle scent of rubber and the studio space will have notes of lemon. Lemon has been proven to reduce stress and increase concentration. To evoke taste, the store will provide lemon infused ice water for studio members and customers in need of a refreshing beverage. The overall sound projected in the store will be upbeat and current music from the top 100 charts.

STUDIO VIEW


ITEM Industrial Lights Track Lights Studio Mirrors T-Stands Straight Tacks Tables Large Medium Small Shelving Turf Shoe Shelving Sitting Benches Large Small Ceiling Fan Yoga Mat Racks Mannequins Half Forms Mobile POS Trash Bins Lockers TOTAL

QUANTITY

COST 12 5 3 2 2

MAD MAD MAD MAD MAD

907.83 3,530.43 10,591.30 3,026.09 605.22

2 MAD 3 MAD 2 MAD MAD 10/sq. feet MAD 50 MAD

4,034.78 3,782.61 3,530.43 1,513.04 1,008.69 504.35

1 5 1 3 8 8 3 5 1

MAD MAD MAD MAD MAD MAD MAD MAD MAD MAD

907.83 3,026.09 1,210.43 1,361.74 8,069.56 4,034.78 4,539.13 353.04 3,833.04 60,370.41


Women’s Short Sleeved T-Shirt

Women’s Long Sleeved Shirt

Women’s Zip Jacket

Women’s Running Tights

Women’s Shorts

Men’s Short Sleeved T-Shirt

Men’s Long Sleeved Shirt

Men’s Zip Jacket

Men’s Running Tights

Men’s Shorts


Men’s Running Shoe

Men’s Soccer Cleat Soccer Ball

Yoga Mat Women’s Running Shoe

Unisex Drawstring Bag

Unisex Drawstring Bag

Women’s Specialty Short Sleeved T-Shirt

Men’s Specialty Short Sleeved T-Shirt

Unisex Specialty Zip Jacket


Because pop up shops happen for such a short amount of time, brands need to start off strong in terms of promotion in order to get the word out and fast. Social Media is a tool that can be heavily applied in order to achieve that. Facebook and Instagram are the main channels of social media that will be used for the promotion of the Nike Pop up shop. They are some of the most popular social networking sites within Morocco. Television is the most popular form of communication and therefore in August (one month before the shop is to open), a commercial will start to be broadcast throughout Morocco.


SALES FORECAST

AVERAGE PRODUCT PRICING

OPERATING EXPENSES OPERATING EXPENSES Design of Space Fixtures Storing Wages/Janitorial Rent & Utilities Logistics Promotional Activities Hotel and Flight TOTAL

SEPTEMBER

OCTOBER

NOVEMBER

MAD20,173.90 MAD20,173.90 MAD20,173.90 MAD303.00 MAD303.00 MAD303.00 MAD151,906.69 MAD151,906.69 MAD151,906.69

MAD28,191.67 MAD28,191.67 MAD28,191.67

TOTAL MAD40,347.55 MAD60,370.41 MAD60,521.70 MAD909.00 MAD455,720.07 MAD4,000.00 MAD160,000.00 MAD84,575.01 MAD866,443.74

INCOME STATEMENT Income Statement Net/Sales Revenue COGS Gross Margin Operation Expenses Net Profit

MAD1,983,960.00 MAD793,584.00 MAD1,190,376.00 MAD866,443.74 MAD323,932.26


Nike’s plans for expansion into Africa led us to choose Morocco as the best contender for the pop up shop location. Morocco is ranked #14 for the GRDI, as the country has a stable political and economic climate with an overall high security infrastructure. The retail industry in Morocco is very promising, as the GDP rate is shown to steadily increase in the years to come. Morocco will become the tourist destination by 2020 bringing many international retailers to the country. The Nike popup shop will generate overall brand awareness influencing Morocco’s newly adopted western habits. The pop-up shop will promoting the Nike ideal that every person is an athlete around the globe.


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