Assumptions

We can reach 90% awareness in the first year 10% of our media costs is for production charges There is a demand for Nike TruFit Maternity Parents magazine full page ads are the same price as American Baby ads (owned by the same company) Assume that 35% of purchases are made online Ad pre & post testing assumed cost of $10,000 per ad test We will assume production/design will be done in-house The cost of Iron Girl 10K is the same as the Five Points of Life Marathon The US Department of Health and Services Birth Data for 2002 for our target market is the same for 2006 Assume the cost per water bottle after a quantity of 5000 is $4.00 each 2006 Global Sales Summit sponsorship prices for events will be the same for the American Baby Faire Expo Attendance for number of participants at Nike Women's marathon is the same for Iron Girl No share of voice for the industry Print quota for in-house printing All coupons online for the promo kit are used for the marathon Postage based on 3 Digit zip code pre-sorting prior to mailing Log analysis software is in-house Video will be produced and posted in-house No shipping costs for promotional give a ways Assume spa getaway package airline tickets and hotel package equal $1700

Executive Summary
The following Integrated Marketing Communications presentation was developed by the Nike Corporation in support of a new division called Nike TruFit Maternity. TruFit Maternity is a line of fully functional fitness and athletic apparel designed to support a healthy active pregnancy. Our product is customized by our clients to achieve ultimate comfort, showcase their individual style and demonstrate that being pregnant is beautiful. A woman that exemplifies our TruFit profile is, 20-49 years old and has a household income of $30,000 or higher. Our customers receive benefits that are both tangible and intangible in nature. They receive the highest quality material, designed exclusively for the bodily changes of pregnant women. Comfort is achieved through our customization option, allowing the customer added support, change dimensions and adjust seam position and cut specifications. These benefits lead to our customers being satisfied with the merchandise they purchase and more importantly, translates into motivation that leads to a healthy lifestyle during their pregnancy. Intangibles such as increased self-confidence, developing healthy habits, and reducing fetal complications will be amongst the most important benefits derived from our products. All of these benefits considered, women will be able to identify to our brand through our promotional theme, Do it for your Baby. Do it for yourself. Just do it! Our marketing efforts will begin in February 2007 with print, television, e-commerce, viral campaigns, POP displays, sales promotions, event promotion, and public relations. Synergistic design and implantation of these components will solidify brand recognition, and assist us in meeting our goals for the first year of business. We plan on achieving 90% recognition from our

target market as well as achieving $335,850,800 in retail sales ($265,272,480 - wholesale sales). With the institution of our media campaigns and supported by the pre-existing distribution network of Nike Inc. and its subsidiaries, women around the globe will be anticipating the due date of TruFit Maternity on, April 12, 2007.

Recommendations Segmentation Strategy

Consumer Target Market Characteristics (Appendix 1) o Geographic Information General United States Focusing more on suburban areas o Demographics Age: 20 49 Sex: Female Income: $30,000 or higher Occupation: professionals, students, homemakers Education: some high school, high school graduate, some college, college graduate o Psychographics Personality: introverted, extroverted, compulsive, ambitious, outgoing. Lifestyle: active, adventurous, health conscious, self-aware. o Benefits Sought Customized design/fit Comfortable material Accessibility Durable High quality Product diversification Comfort Practical Affordable o Usage Rate of use: light, medium, heavy users User States: potential, first time, regular users Consumer Target Market Definition and Size (Appendix 1) o Definition: Our ideal target market for Nike TruFit Maternity is an audience of females between the ages of 20-49 years old, who occupy any profession with an income of $30,000 or higher. Ideally our clients will already live an active life, although we hope to reach those who are new to or curious about the benefits of maintaining a healthy lifestyle. Our customers can be existing Nike supporters or ones that are experimenting with our new product offering.

o Target Market Size: According to the data collected by the US Department of Health and Human Services, there are 4,019,280 women within our target market (See Appendix 1a). Trade Target Market (Appendix 2) o Niketown stores, Nike Womens stores, and Nike Factory stores across the United States totaling 115 stores o Lady Footlocker, Footlocker, Champs, and Finish line stores across the nation

Positioning Strategy
Positioning Strategy o Positioning Strategy Statement: Nike TruFit Maternity will offer a complete line of customized maternity clothing that will fully conform to a pregnant womens ever changing body. We will be using a functional benefit positioning strategy in order to express to our target market that they will now be able to exercise more comfortably, while still looking fashionable.

Competitive Analysis
Category Competitors: (Appendix 3) o Athletic Maternity Clothing: Fit Maternity Maternity Active wear Mimi Maternity o Athletic Clothing: Lululemon Adidas Russell Athletic Perceptual Map (Appendix 4)

Marketing Objectives
Value Proposition: o Unique Selling Proposition: Do it for your baby. Do it for yourself. Just do it! o Functional: Nike TruFit Maternity is custom fit for a womens pregnant body and expands as the body grows. The clothes are very flexible and move with the body, which makes it ideal for pregnant women to workout in.

o Emotional: This product gives women the ability to custom fit their clothes which will make them fit better, giving women more self confidence. This product is also designed to promote and encourage a health active lifestyle, and this could motivate more women to also work towards healthier habits. o Self Expressive: When a women is seen wearing Nike TruFit Maternity she will be perceived as a health conscious, pregnant women that leads a healthy active lifestyle, and is not only concerned with her babies health but also her own. Our product presents the image that you are a confident, self-motivated, and health conscious. Marketing Objectives for 2007 (Appendix 5) o o o o Product Introduction Due Date: April 12, 2007 Total Retail Sales: $ 335,850,800 Total Wholesale Sales: $ 265,272,480 Total Units Sold: 4,823,136 units

Marketing Mix
Product Strategy o Type of Product: Athletic Maternity clothing o Name of Product: Nike TruFit Maternity o Features: Customized fit Custom design High quality material Durable Comfortable Affordable Pricing Strategy o Wholesale Price: For all garments is as follows: Walking / Jogging: $28 - $56 (Pants) Yoga / Stretching: $28 -$56 (Pants) Tank / Short Sleeve / Long Sleeve / Sleeveless Tops: $17.50 - $38.50 Sports Bras: $17.50 - $49 Causal Wear Pants and Tops: $28 - $77 (Pants) $17.50 - $49 (Tops) Warm-up Suits: $70 - $140 o Retail Price: For all garments is as follows: Walking / Jogging: $40 - $80 (Pants) Yoga / Stretching: $40 -$80 (Pants)

Tank / Short Sleeve / Long Sleeve / Sleeveless Tops: $25 - $55 Sports Bras: $25 - $70 Causal Wear Pants and Tops: $40 - $110 (Pants) $25 - $70 (Tops) Warm-up Suits: $100 - $200

Advertising Plan
Advertising Objective (Appendix 5a) o Increase our products awareness from 0% to 90% within our target market in fourteen months. Advertising Budget (Appendix 5) o Forecasted Sales = $265,272,480 o Using 20% of forecasted sales o Ceiling for advertising budget = $53,054,496 o Share of voice = none Creative Strategy o Copy Platform Target Market Lifestyle Characteristics Active, adventurous, self-motivated Enjoys working out and leading a healthy lifestyle Target Market Benefits Sought Comfortable material High quality Customized fit Affordable Durable Practical Product diversification Objective: To develop strong brand awareness, knowledge and image by convincing consumers that Nike TruFit Maternity offers a new lifestyle for pregnant women. With the customized fit and comfort not only will pregnant women feel good about working out, they will also look good doing so. Benefits: Custom fit Dri-Fit material Comfortable Support: Custom fit: Option of having clothing measurements taken and made to customize your body Comfortable: Clothing is designed to move with the growing pregnant body Campaign Theme: Do it for your baby. Do it for yourself. Just do it!

Encouraging healthy pregnancies one step at a time o Execution Television advertisement ( Appendix 6-8) Print advertisements (Appendix 9-10) Banner ads ( Appendix 11) Internet website (Appendix 12-20) o Integration Campaign theme, Do it for your baby. Do it for yourself. Just do it! will appear in all advertising both online and off The website address www.niketrufitmaternity.com will be included in all television, print, and other promotional materials Sponsorship of the Nike Women's Marathon, Iron Girl 10K, and the American Baby Faire Expo will be incorporated into print and internet advertising Sales promotions will be incorporated in internet advertising

Media Plan
Media Objectives o To create an awareness of the Nike TruFit Maternity brand and benefits in the target market (ages 20-49, female, target market size 4,019,280) through the use of media vehicles that match their demographic characteristics, attitude, and lifestyle o The Geographic Scope is national, with an emphasis in suburban areas Media Strategy (Appendix 21-23) Reach/Frequency o Reach 90% awareness in the target market (3,617,352) four times over a four week period during the 14 months of the media plan o The reach goal is also consistent with the communications objective of achieving 90% awareness set as advertising objective Continuity Strategy o A combination of pulsing and continuous will be used, with the flighting level of advertising during the product introduction o Our strategy for the length and size of ads are 30-60 second commercials in late March and early April as well as two-page, full-color ads and ads on cover 2 of selected magazines

Media Vehicles Magazines (Appendix 24-26) o Parents Magazine o In Style o American Baby o Self

o Shape o Fit Pregnancy Network/Cable Channels (27-28) o Oprah o Ellen DeGeneres Show o Live! Regis & Kelly o Friends o Wheel of Fortune o Jeopardy o Sex & The City o Who Wants To Be A Millionaire Internet o Banner Ads o Online Community o Viral Video (Appendix 62) o Podcast Length of Ads o Single full page color ads and one full color ad on cover 2 in magazines. o 60-120 second ad commercials to begin in February two months before our launch Media Budget o Media Costs (Appendix 58-61) Total Television Cost = $20,328,764.50 Production Cost = $2,032,876.45 Total Magazine Cost = $4,656,485 (Appendix 29-33) Production Cost = $465,648.50 Total Internet Advertising Cost = $526,800 Total Media Advertising Cost = $25,512,049.50 o Advertising to Sales Ratio Year One Forecasted Wholesale Sales = $265,272,480 A/S Ratio = 15.61% o Share of Voice Total Product Category Ad Spending = none Share of Voice = none Integration o Our advertising campaign will begin two months prior to the launch date of Nike TruFit Maternity. All of our media vehicles such as the print, television, and internet will be consistent in image having all of the same colors, fonts, themes, slogans, and models used. Media Tactics (Appendix 34 for scheduling)

o Media Schedule

Internet/Website Advertising
Internet Advertising o Objective: To prompt internet users to click on the banner ad this will then link the consumer to the Nike TruFit Maternity website. A podcast will be posted weekly to promote brand loyalty. o Strategy: Banner ads will be put on the sites that our target market will frequently use: Oprah.com Fitpregnancy.com Podcasts will be posted on the TruFit Maternity webpage. The program downloads automatically each week to subscribers o Timing: Sneak-Peek banner ads will be put up in mid-February 2007. After the product launch banner ads will continue to be put up on affiliated websites Podcasts will be put to the TruFit Maternity website prior to the product launch to give the customers a feeling of anticipation and ownership before the product is available o Cost: (Appendix 35-37) Banner ad design: in-house (no cost) Banner ad placement: $526,800 Podcasts: in-house (no cost) o Integration: Banner ads Banner ads will have the same style, models, coloring as our other print advertising and website They will be placed on websites of products and services that will also promote womens health and style Podcasts Podcasts will be available on our website. The messages will all be centered around the Nike TruFit Maternity goal of promoting a healthy lifestyle for mothers and their babies Website o Objective: The website will be the primary means for our customers to learn about TruFit Maternity products and purchase them

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The website will also be used to create a sense of belonging to a community for the customer through an Events page, Podcasts, and Pregnancy Resources o Domain Name: www.niketrufitmaternity.com (Appendix 38) o Timing: The website will be up mid-February, 2007 for those that click through on the banner ads, see the URL on the print and TV ads, and from the Nike website o Cost: (Appendix 39) Website design: in-house (no cost) Website hosting: $99/ year o Integration: Niketrufitmaternity.com will incorporate the same color scheme, models, and products that are featured in other TruFit Maternity communications The website will also be a store which features the Nike TruFit Maternity clothing line Niketrufitmaternity.com will also have pages to view the TV ads as well as print ads The website will also feature an events page informing visitors of Nike TruFits sponsored events. The first year, TruFit Maternity will be sponsoring the Nike Womens Marathon on October 21, 2007 in San Francisco, California The podcasts and regnancy resources will be centered around Nike TruFit Maternitys central goal of promoting the health of mothers and their babies The media will feature sources and experts in their field The pages have the same style as the rest of the website

Direct Marketing
Direct Marketing to Consumers o Objective: Create awareness for Nike TruFit Maternity among the target market, and prompt the recipients to go the Nike TruFit website o Strategy: E-mail Customers of the TruFit website that opt-in to direct e-mail Direct mail list purchased from Fit Pregnancy to reach members of the target market

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Print/Gift Direct Marketing: (Appendix 39a) Direct Mail: mailer would give an overview of the benefits of Nike TruFit Maternity active-wear. In the brochure will also be a swatch of Dri-Fit material and a TruFit Maternity magnet OB/GYN Informational Packet: A small guidebook describing how to maintain a healthy lifestyle while being pregnant Event Gift Bag: At the Nike Womens Marathon, Iron Girl Seattle, and American Baby Baby Faire participants will receive a drawstring athletic bag containing a Fit Pregnancy magazine, a pink Nalgene water bottle and informational brochures o Timing: The direct mail brochure will be mailed in mid-February to build anticipation and awareness The information packet to be included in the OB/GYN gift bag will be an on-going program that will be evaluated at regular intervals (i.e. quarterly or yearly) to find the packets effectiveness The event gift bag will be given to the participants of TruFit Maternity sponsored events Direct E-Mail will help build anticipation with pre-release e-mails and also be an on-going program. Pre-release e-mails will be teasers and link the recipient to the website. After the introduction, the e-mails will feature new product offerings, exclusive savings, and events o Cost: (Appendix 40-43) Direct e-mail list: $75,000 (1 blast per month for 14 months) Direct mail: $8,534,683.98 Gift bags: $179,550 Total Cost = $8,789,233.98 o Integration: The Direct Mail piece will be a tri-fold mailer that will have the same color scheme and photos as used in the TruFit Maternity ads and interactive The OB/GYN Info Packet and Event Gift Bags will all have the Nike TruFit logos on them, as well as brand slogans and frequently used colors and styles

Sales Promotion
Online Promotion o Objective:

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The objective of our online promotion will be to drive online sales, increase traffic to our website, and provide our customers with additional incentive to purchase our merchandise o Strategy: Our online promotion will feature a special pregnancy kit that will be shipped for free with each online order The pregnancy kit will include: Nike womens fitness journal to track and monitor their physical activity and a copy of the current issue of Fit Pregnancy magazine, tips for healthy dieting and meal plan ideas, and a $10 off coupon for the registration price of the Nike womens marathon o Timing: The online sales promotion will begin with the launch of Nike TruFit maternity, April 12, 2007 and will end April 12, 2008 o Cost: (Appendix 58-61) Total Cost of pregnancy kits = $5,064,292.80 o Integration: Our website will feature identical color schemes, themes, and subjects as our print and television advertisements. Our print advertisements will feature our website URL and the current online promotion

Bricks and Mortar Sales Promotion o Objective: Provide incentive to purchase merchandise and drive sales at our physical retail stores o Strategy: Each item of merchandise has a set of tags that are attached to the item. Among the tags is a special tag that will be a coupon for 20% off your next purchase of non-maternity (or post maternity) apparel Also in store we will feature of TruFit Maternity kiosk that will allow you to browse through merchandise in our line, create a virtual personal shopping assistant that is customized to resemble your stage of pregnancy o Timing: The merchandise tag promotion will be run in all articles of merchandise starting with our launch date, April 12, 2007 o Cost: The cost of the merchandise tag promotion is absorbed by the organization in the printing costs for all other price and information tags

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We will buy computer equipment (monitors, keyboard, and mouse) from the Dell Company for $948 per package. Initially we will release 50 kiosks making our computer costs $47,400 o Integration: Our merchandise tags will have our website information printed on them. Our kiosk system will be an in-store version of our online store and will feature identical user interface, colors, and images. We will also run and advertisement to explain the usefulness of our kiosk system

Point-of-Purchase (POP)
In-store POP o Objective: Our point of purchase displays are designed to captivate customers attention with visually appealing color schemes, subject themes and sales promotions All point of purchase displays will be organized and easy to find merchandise, and will have feature items to up-sell each purchase o Strategy: Our design will include large print signs that direct women to the category of apparel they are looking for placing similar items near each. Displays will have sizing information and feature a helpful guide to selecting apparel that best fits your needs. (Appendix 7) We have accessory items located around the store and strategic locations as well as at all pay points. o Timing: Our point of purchase displays will be operational on our launch date of April 12, 2007. They will be re-merchandised and re-designed every other month o Cost: (Appendix 44) The cost of our point of purchase displays will be free of additional expenses. Nike stores already have display case shelves and shelf space, we have no slotting fees Total cost of Kiosk Displays: $ 47,400 o Integration: All visual aids that are a part of the POP displays will be recognizable on our website and by our advertising theme Do it for your baby. Do it for yourself. Just Do it! Online POP

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o Objective: Suggest additional items that the consumer may find necessary. o Strategy: When shopping online our computer database can match and pair items that are traditionally sold together When a customer goes to check-out the database generates a list of items that compliment the ones already selected. Accessory items are also included (water bottles, hats, gloves, fitness journal, etc.) o Timing: This feature will be used when our online store goes operational on our due dateof April 12, 2007 o Cost: Online POP features will be included in web development. Nike Inc. has an in-house web development division o Integration: The same items that are suggested as up-sell items are also featured at our bricks and mortar POPs

Public Relations
Consumer relations o Objective: Our objectives of our public relations tactics are to promote our new product. Our pubic relations will help to get our objective of 90% awareness of our brand through press releases and event sponsoring throughout the year o Strategy: We will send out press releases to the media that contains information about our product introductions, sales promotions and event sponsorships We also will be using media coverage at our sponsored events o Timing: The first press release will be released on February 1, 2007 to coincide with the beginning of our advertising campaign. This press release will introduce our product and create buzz in the media and the pubic The second press release will be released on our launch date April 12, 2007 (Appendix 45) The third press release will be distrusted in each city before each American Baby Faire to announce our sponsorship of the exposition. The fourth press release will be distributed on June 1, 2007 to promote registration for the Nikes Womens Marathon

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The fifth press release will be distributed September 1, 2007 to announce our sponsorship with Iron Girl 10K o Cost: (Appendix 46-47) Total Cost = $4210 Trade Relations o Objective: Make retailers aware of our product prior to our launch date, to allow them time to place orders, so the product is available in their stores on the launch date. o Strategy: We will send out press releases that explain our product, and the versatility it offers in away that sounds appealing to retailers so they want to carry our product in their stores. These press releases will also have our scheduled events on it o Timing: The first press release will be released approximately 6 months prior to our launch date of April 12, 2007 The second press release will be released February 12, 2007 to remind retailers of our planned launch date of April 12, 2007 o Cost: (Appendix 46-47) Total cost = $1290 o Integration: The press releases that are published will also be available on our website. Promote and inform consumers and the press of our sponsorship of the 2007 American Baby Faire Expo Promote and inform consumers and the press of our sponsorship of the 2007 Iron Girl 10K Promote and inform consumers and the press of our sponsorship of the 2007 Nike Womens Marathon Inform and promote our product to trade representatives and retailers

Event Sponsorship
Nike TruFit Maternity will sponsor three events during the year to help promote healthy active pregnancies. The first will be our own Nike Womens Marathon, the second will be the Iron Girl 10K, and the third will be the American Baby Faire Expo. o Nike Womens Marathon Objectives:

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To increase awareness to our healthier active target market by introducing our new clothing line through the event and giving each participant a Nike TruFit Maternity athletic bag which include a Fit Pregnancy magazine, a Nalgene bottle, and direct mail pieces Strategy: By sponsoring a marathon with active women we will create an image of Nike TruFit Maternity as an active participant in promoting healthy active pregnancies Timing: The event will take place in San Francisco California on October 21, 2007 Costs (Appendix 48-50) Sponsorship Cost: $0 Estimated cost of Promotions: $179,550 Total Cost of Event Sponsorship: $179,550 Integration: Throughout the event there will be TruFit Maternity banners placed at every mile marker with our slogan; Do it for your baby. Do it for yourself. Just do it! Encompassing the same font, colors, and design of all the print media directing the consumer to go to the website URL. One informational booth will be in the expo of the event with, brochures, a TruFit Maternity kiosk display, and TruFit Maternity clothing to purchase o Iron Girl 10K Objective: To increase awareness to our healthier target market by sponsoring a 10K run to introduce our new clothing line through the event Strategy: By sponsoring this 10K will create an image of Nike TruFit Maternity as being an active supporter in promoting a healthy active pregnancy and get women motivated to continue their habits when pregnant Timing: The event will take place in Seattle Washington on September 9, 2007 Costs: Sponsorship Cost: $50,000 (Appendix 51-52) Estimated Cost of Promotions: $179,550 (Appendix 48-50) Total Cost of Event Sponsorship: $229,550

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Integration: Throughout the event there will be TruFit Maternity banners with our slogan; Do it for your baby. Do it for yourself. Just do it! Encompassing the same font, colors, and design of all the print media directing the consumer to go to the website URL. One informational booth will be in the expo of the event with, brochures, a TruFit Maternity kiosk display, and TruFit Maternity clothing to purchase

o American Baby Faire Expo Objective: To increase awareness to our target market of moms and moms to be, through establishing a sponsorship through the expo faire Strategy: By sponsoring a baby faire expo we will be targeting a different segment of our target market This will allow Nike TruFit Maternity to establish themselves among a different market where we can then promote our new customized clothing line to women and get them motivated about leading a healthy lifestyle Timing: The events will take place on weekends throughout the 2007 year starting in the beginning of February and ending in late November. Costs: Sponsorship Cost: $120,000 (Appendix 53-54) Estimated cost of Promotions: $1,452,000 (Appendix 48-50 & 55-57) Total Cost of Event Sponsorship: $1,572,000

Integration: Throughout the expo there will be banners with our slogan Do it for your baby. Do it for yourself. Just do it! Encompassing the same font, colors, and design of all the print media directing the consumer to go to the website URL We will have a pregnant run way show of our clothing line to show case our new collection to consumers We will also have an informational booth at the faire with informational brochures, healthy tips for being pregnant guide, a TruFit Maternity kiosk display, and the TruFit Maternity clothing to purchase and an enter to win drawing for an all inclusive spa getaway

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Evaluation of Promotion Plan

Pre-testing o Television Gallup & Robinson In Tele Test o Magazine Gallup & Robinson Rapid Ad Measurement Post-testing o Media Advertising Starch INRA Hooper: Impression Study o Event Sponsorship Exit surveys, number of attendees o Website/Internet Log Analysis Software o Public Relations Monitor the publics reactions to our press releases Monitor how Nike TruFit Maternity is represented in non-company produced media o Direct Mail of catalogs Number of people who respond by registering online o Online Contest Number of entries Total Evaluation Cost: $22,500 (Appendix 60)

IMC Budget (Appendix 58 - 61)

Budgeting Method o Objective and Task Total cost of each IMC Element Total IMC Budget: $53,054,496 Total Advertising Spending: $ 41,405,539.23 Advertising Expenditures as a percent of IMC Budget: 78.04 %

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Analysis
Segmentation Strategy (appendix 1) The target market for Nike TruFit Maternity is very unique. We are targeting pregnant women who are between the ages of 20-49 years old. These women are active and strive to have a healthy lifestyle. From our research we were able to find that on our target market is 4,019,280 women across the United States. This is approximately 5.5% of the entire United States population. Our efforts will be focused within our countries borders but will have no geographic boundaries otherwise. Based on demand and sales figures after our first year, an international campaign may be launched. This target market is unique because of the physical changes that occur during pregnancy. Our research has found it conclusive that the current trend in America is to engage in a healthy, active pregnancy.

Women that fall into our target market are those that are currently expecting or planning on becoming pregnant. There is no marital status requirement and we wish to attract women that are single, married, divorced or widowed. We are marketing to both professional working women and those that are homemakers. Although, the purchase of our clothes does not require a certain level of education, most customers will be high school graduates or have achieved some higher level of education. Typically our clients will have a combined household income of $30,000 or more.

The psychographic profile of our consumers is relatively broad in scope. Traditionally a Nike TruFit woman is ambitious and has created her desired lifestyle through dedication, focus and talent. She is active and adventurous; she embraces activities that

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are physically challenging in search of self gratification. A Nike TruFit woman values health and nutrition. She believes that being conscious and aware of her body can lead to a longer, happier life. Although an ideal TruFit woman fits this description we also encourage those who are not as easily defined. Our product calls together for women of all shapes and sizes. We want our focus to be on the child not the mother. With this in mind we also wish to target women who are willing to dedicate time and energy to creating new habits, changing existing patterns, and who see the value in having a healthy pregnancy for their babies. Positioning Strategy Nike TruFit seeks to take advantage of a specialized niche market that has been overlooked by the apparel industry. This line of products appeals to a target market that is an extremely stable and secure group of consumers. Pregnancy is an opportunity to leave a legacy behind. With that legacy we hope to instill healthy values that are taught by example from parent to child. No other manufacturer of athletic apparel has a full line of maternity active wear. Nike TruFit Maternity will be the pioneer in this segment of the apparel industry.

Our product line will feature a variety of products created from the existing Nike DriFit technology. Our garments will have functional benefits of comfort, durability, diverse product offerings and be of the highest quality material on the market. Value is added to these benefits with the option to customize each item to compliment the continuously changing bodies of our customers. Through our online retail store women can control every dimension, seam placement, logo color and placement, and cut of every

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item they purchase. For the first time in the athletic apparel industry the client has the ultimate power.

Competitive Analysis (Appendix 3 & 4) Nike TruFit Maternity is classified as being in the athletic apparel industry. We manufacture items such as: sports bras, short and long sleeve shirts, tank tops, full length pants, sport Capris, yoga pants, and complete warm-up suits. With this product description we compete with hundreds of retailers and manufactures on the same product basis. What sets us apart from the competition is that all of these items are tailored specifically with a pregnant body in mind. This drastically reduces the amount of direct competitors in our niche. Our primary competition is comprised mostly of online retailers of maternity active wear and the largest manufactures of general athletic apparel. The following is a list of our main competitors: Mimi Maternity Fit Maternity Maternity Active Wear Lululemon Adidas Russell Athletic

We have established these businesses as our main competition within our market. Competition will be fierce but we are confident that Nike TruFit Maternity will withstand competitive pressure by the nature and value of our products. Many of these companies offer limited lines of maternity active wear, but not to the extent of Nike. Others, such as Adidas, Russell Athletic and Lululemon are competitors because they offer an alternative solution to maternity specific apparel. They manufacture general athletic apparel that is not customized to fit the changing needs of pregnant clients. A visual representation of 22

our position relative to our competitors can be seen in (Appendix 4). These reasons give us confidence that we will not only survive in highly competitive market, we will thrive.

Marketing Objectives (Appendix 5 & 5a) Nike TruFit Maternitys due date is on April 12th, 2007. This is when both online and bricks and mortar retail stores will be actively selling merchandise. This date was selected because spring is known as the season of birth and life. This directly compliments our products objective. Spring is also a time when people start to engage in more physical activities. The diminishing presence of winter-time weather changes consumers attitudes and habits toward exercise and fitness. Women in particular begin to think of the arrival of bathing suit season and feel the need to tone up or lose those unwanted holiday pounds. Pregnant women are making the effort to stay in shape during the term of their pregnancy rather than trying to get back in shape after 9 months of inactivity. Keeping up is easier than catching up! Our marketing goal for the first year of business is to create 90% awareness in our target market. This will translate into 10% of our target market buying the product at least one time, and 5% of our target market being repeat buyers and loyal customers. (Appendix 5a)We will attract those customers by creating a value proposition and unique selling proposition that customers can identify and believe in. Our unique selling proposition is a phrase that builds on the Nike company slogan of Just do it! We added on to this slogan by making it more personal to our targeted consumer. Women will be able to identify our line through many integrated aspects of our marketing mix one of which being our slogan, Do it for baby. Do it for yourself. Just do it!

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An essential element of marketing today is to remember that the consumer is very smart. Their purchasing habits can be sporadic and unpredictable. We have made an effort to control those irrational behaviors by creating a stable value proposition. Functional benefits are perceived as the reasons a woman needs to buy athletic apparel. She needs comfort, support, style, affordability and durability. Our functional benefits are a one stop shop. Our merchandise is adjustable and expands and moves with the body. We feature adjustable bras and stretchy material to ensure that our customers remain satisfied with their purchases throughout their pregnancy. Emotional benefits include the ability to be in control of what you buy. If you are able to design what you wear you are more likely to wear it, and you have a sense of pride in what you are wearing. Another benefit that creates emotional attachment is the amount of time women will spend exercising. Women that look and feel great are more inclined to stay focused on their healthy habits. This creates higher self confidence. There is also a self expressive benefit to our product. The customization of our merchandise can allow women to make a statement about their style and individuality. This feature alone may make our clients become the trendsetters in their neighborhoods, schools or place of business. Nike is amongst the highest end retailers in the athletic industry. By endorsing the swoosh women are making a statement that they are confident, expressive, and proud. From a numerical standpoint achieving our marketing objectives will be determined by a few essential figures. Our goal is to sell a total of 4,823,136 units in the first year. (Appendix 5). If this number is reached we will achieve our forecasted sales figure for the year. Our forecasted wholesale sales are $265,272,480. Our forecasted retail sales are

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$335,850,800. Achievement of these figures will provide powerful growth potential figures for our investors and stakeholders.

Marketing Mix Product Strategy Nike TruFit maternity clothing items have an array of unique advantages that will make them the most comprehensive maternity active wear garment on the market. As mentioned before the ability to control the placement of stitching and embroidery, and nearly every other design dimension will provide the most customized fit imaginable. We are aware that people prefer clothes to fit in different ways, and need comfort and support in different areas. We have summarized the cut styles into an easy to see visual that will help customers select their desired fit. Once the product has been custom fit to each individual, the fun begins. We surrender creative control to our clients. Base color, accent color, stitching color, logo color and placement, and material pattern can be manipulated to fit their tastes and preferences. One thing that is not negotiable in our product is our material. We insist on providing the highest quality material in the world. Nike is the inventor of DriFit and Sphere textile technologies. All of our merchandise will be made of these material types. DriFit technology pulls moisture away from the body during physical exercise. This reduces moisture induced friction irritation. Sphere technology pertains to the bodys temperature. As the body increases in temperature tiny pockets in the material expand, capturing the heat from the body. As the body cools down, this trapped energy acts as a layer of insulation allowing the body to cool down at a more controlled level. Our material is also extremely durable. We expect that our customers will use our 25

merchandise for physical activity. The combination of spandex and polyester, make our merchandise stretchy and resistant to shrinkage. Our products are designed to withstand daily washing and drying. The cost of Nike TruFit merchandise is very affordable, especially considering the level of quality and custom fitting. We are sensitive to the fact that pregnancy come with its own set of costs and unplanned expenses. We do not want to have a product that deters customers because of the price. For this reason we have made our products affordable relative to the competition. Pricing Strategy Since Nike is the worlds largest retailer of high-end athletic apparel, our pricing strategy will compliment the organizations existing model. After our research we used current low and high end cost to find the price range for our merchandise. The price of Nike TruFit is comparable to that of regular industry prices. Since customization is only an option, consumers can purchase merchandise that has been traditionally designed and manufactured. The extra cost is incurred only if the client wants custom apparel. The average additional cost of customization is $20 per item. Our wholesale and retail prices are as follows: Wholesale: Walking / Jogging: $28 - $56 (Pants) Yoga / Stretching: $28 -$56 (Pants) Tank / Short Sleeve / Long Sleeve / Sleeveless Tops: $17.50 - $38.50 Sports Bras: $17.50 - $49 Causal Wear Pants and Tops: $28 - $77 (Pants) $17.50 - $49 (Tops) Warm-up Suits: $70 - $140 Retail: Walking / Jogging: $40 - $80 (Pants) Yoga / Stretching: $40 -$80 (Pants) Tank / Short Sleeve / Long Sleeve / Sleeveless Tops: $25 - $55

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Sports Bras: $25 - $70 Causal Wear Pants and Tops: $40 - $110 (Pants) $25 - $70 (Tops) Warm-up Suits: $100 - $200 Note: Our wholesale pricing is 30% less than our retail pricing. Distribution Since we are a division of Nike, our distribution network has already been established. We have major national retail accounts with Foot Locker and Lady Foot Locker, Champs, and Finish Line, as well as 115 Nike owned and operated factory outlets, and Nike Town locations. We are adding a Nike TruFit Electronic Kiosk to our bricks and mortar locations where clients are walked through the steps of customizing their merchandise, placing their orders and receiving order confirmations. This feature is also available online at our e-commerce clientele. HYPERLINK "http://www.nike.com" www.nike.com for

Advertising Plan
Our extensive advertising plan will begin in February 2007. Since Nike TruFit Maternity is a new product, our main focus is on creating value proposition and increasing awareness from 0% to 90% of our target market and transitioning through the preceding stages of the Communication Effects Pyramid (See Appendix5a). Creating awareness and buzz about our product is a critical component to our advertising plan, considering we are the first to introduce such a product to the market. Our goals will be measured by comparing actual sales, profit and market share data with our annual forecasted figures. Seeing as we are the only kind of product in our industry we have established our own budget, the budgeting method we used was objective and task. We

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have forecasted our first year sales to be $265,272,480 (See Appendix 5). Using 20% of our forecasted sales we have set our advertising ceiling at $53,054,496 (see Appendix 5). We do not have a share of voice for our industry. We are the pioneers of this product and have no product class competitors. With the Nike TruFit Maternity launch we hope to capture the attention of clients who previously viewed our brand as strictly competitive apparel. We hope to expose the practical, nurturing side of Nike that embraces the experience of having a baby. Our target market is defined by a combination of both demographic and psychographic characteristics. We wish to reach an audience of females between the ages of 20-49 years old. They are characterized as being stylish, out going, health conscious, and adventurous. They enjoy going out on the town, shopping, working out, being social and leading a healthy lifestyle. Our customers can be existing Nike supporters or ones that are experimenting with our new product offering. They can be from any profession as well as from any geographic region in the country. Ideally our clients will already live an active life although we hope to reach those who are new to or curious about the benefits of maintaining a healthy lifestyle. Nike TruFit Maternity allows women to customize their garments to create the ideal fit. They are also able to adjust color and other attributes to express their own style and creativity. Our material is the highest quality in the industry and is equipped with DriFit technology that pulls moisture away from the body, reducing friction irritation. Our sports bras feature adjustable support features to provide optimum comfort during exercise or leisure activities. Another unique feature is the option to have the babys due date, name or other custom text embroidered on the garment in a position selected by the customer. We have adjusted the positioning

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of seams and cosmetic stitching to further enhance our clients satisfaction with the product. These attributes will ensure comfort; provide women with motivation to be active, and outfit them in apparel that TruFits their every need. Creative Strategy During the first fourteen months of our marketing campaign, we will conduct several executions. We will have one viral video (See cover 2), several television ads (See Appendix 6), an internet website (See Appendix 12-20), banner ads (See Appendix 11), podcasts, and several print ads that will be seen in magazines of interest in our target market specific magazines(See Appendix 9-10). The purpose of our advertisements is to introduce a new product line called Nike TruFit Maternity that focuses on an active, health lifestyle during pregnancy. By creating customized maternity athletic apparel we are establishing a unique niche in the apparel that has previously been overlooked. We believe that by outfitting women in fitness apparel that is comfortable, supportive, practical and aesthetically pleasing, they will engage in activity that will stimulate a lifetime of healthy habits for both mother and child. We consider the integration of our advertising campaign to be very important throughout our fourteen month schedule. All advertising and promotional media will be consistent with use of design, fonts, colors, photos, theme, our slogan; Do it for your baby. Do it for yourself. Just Do It!, and our Nike logo. The website URL will be included in all advertising and promotional media as well such as our direct mail, informational brochures, and catalogues.

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Media Plan (appendix 21-23) The objective of our media plan is to create awareness in our target market that stimulate trial use and repeat customers. We plan to reach 90% of our target market (3,617,352 people) 4 times over a four week period during the 14 months of media planning. A combination of pulsing and continuous advertising will be used during a majority of the media schedule and flighting will be used early on in the schedule to assist in product introduction. We have planned a detailed schedule of various vehicles to help our message be heard. We have used national media to reach the largest portion of our market. We have placed print ads in various niche market publications to isolate a more specific group of consumers. Our television advertisements will be 60 seconds in length during the introduction stage and drop to 30 second slots for the remaining 10 months. Our print advertisements will be one and two page, full color ads many of which will be on the 2nd cover of our magazine choices. The combination of continuity strategies will be effective due to the synergy created in the design as well as the carefully planned release of each media vehicle. Each release is planned to support another aspect of our IMC plan. For example, press releases will be released at a time when they compliment an event or significant occurrence provided by our organization. This is how we developed a fully integrated marketing communications plan. Many members of our target market will be tuned into television, reading magazines, or logged onto the internet during these time segments. Stay-at-home moms and homemakers may have leisure time during the daytime hours and will be exposed to at least one of our selected media vehicles.

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Magazine (Appendix 23) We selected a host of magazines to run our print media. We chose these specific magazines because their readership audience matches our target market. We selected specialty magazines such as Parents Magazine, American Baby, and Fit Pregnancy to focus on readers who currently have children or are thinking of having more. Our other magazine choices are ones that are more broadly focused on our target market, Shape, Self, and In-Style. Being featured in doctors offices, school and displayed in homes, all of these magazines have high pass along readership numbers, supporting our decision to advertise in them.

Television (Appendix 21-22) Using national television advertising is the fastest way for us to reach a large number of people in our target market. We used the Marketers Guide 2006 as a basis for our research figures and found that we will maximize our advertising effect if advertising is done during the daytime and early evening television programming. We concentrated much of our advertising efforts during popular shows that have a majority of female viewers. These shows include, the Ellen DeGeneres Show, Oprah and Live! With Regis and Kelly. One of the major benefit of advertising during these shows is that the CPM is the lowest of television advertising rates. Other shows that we have to chosen to run advertising in are the afternoon and early evening time slots. The syndicated shows of Friends, Wheel of Fortune, and Jeopardy are the specific shows we chose for the afternoon and evening. We decided against running many advertisements in the late night segment. We assumed that many women will be putting children to bed, cleaning up from

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dinner, catching up on last minute work obligations, or getting ready for bed during those hours. We did choose to run advertisements in one prime time show, Sex in the City. Since many members of our target audience are career professionals they typically wont spend a majority of their evening hours being receptive to advertisements. Our television advertisements will be 30-60 seconds in duration, and be a combination of feel good and light humor in theme. Our television advertising is planned to run the entire 60 weeks of our advertising schedule.

Internet and E-commerce Recently, online efforts have been a hotspot for marketing and advertising. New ways to reach specific groups of consumers continue to appear all over the internet. Our advertising efforts on the web consist of banner advertisements, viral videos and consumer to consumer advertising, our website, and podcasts. The main emphasis for our online advertising is our website. This is the place where we can stress the importance of our mission. Our web site also has links to online health information, local community fitness activities, information and motivational podcasts, and healthy recipe ideas. We are also the host of many events and activities. All information and registration can take place from our site. Our website also features our online store that is directly tied to sales promotions and point of purchase plans.

Website Advertising
Banner Ads (Appendix 35-37)

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To prompt internet users to go to the Nike TruFit Maternity website, banner ads will be developed and placed on Oprah.com and Fitpregnancy.com. These websites were selected based on the high number of visitors from the target market. Simple sneakpeek banner ads will be put up in mid-February, to build anticipation for the new product line. After the product launch rich media banner ads will continue to be put up on affiliated websites. Podcasts Podcasts will be posted weekly to give the users of Nike TruFit Maternity a resource and a sense of belonging to something more than just a product; it will also promote brand loyalty. Podcasts will be developed in-house and will be simple short videos that are educational, inspirational, and occasionally funny. This will be updated weekly to prompt users to keep returning to download the videos to their computer or subscribe to the podcast to download it automatically. Podcasts will be put on the TruFit Maternity website prior to the product launch to give the customers a feeling of anticipation and ownership before the product is available. The integration of the Banner ads will have the same style, models, coloring as our other print advertising and website. They will be placed on websites of products and services that also promote womens health and style. The Podcasts will be available on our website which has a uniform style. The messages will all be centered on the Nike TruFit Maternity goal of promoting a healthy lifestyle for mothers and their babies.

Internet

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The website for Nike TruFit Maternity (appendix 12-20) will be used to show the clothing line. Customers will be able to go to the Maternity Collection section of the site to view the clothing and customize the fit based on their measurements. Once the order has been customized, the purchase can be made and then sent to the customer by mail. The website will also be used to create a sense of belonging to a community for the customer through an Events page, Podcasts, and Pregnancy Resources. The Events page will inform site visitors about the sponsored events The Nike Womens Marathon, Iron Girl 10k, and the American Baby Faire Expo. The Pregnancy Resources will be a collection of information on various topics on how to have a healthy pregnancy. The Nike TruFit Maternity website will be up and running well before the product is available. This will be for those who click on the banner ads, see the URL on print and TV ads, find the site through the main Nike website, and want to download the podcasts. The purpose of having the website up before the product launch is to educate the customers about the benefits of TruFit Maternity and to build anticipation. The TruFit Maternity website will incorporate the same color scheme, models, and products that are featured in other TruFit Maternity advertisements. The website will be where it all comes together. The clothing line will be featured in the Maternity Collection section. Press releases can be read in TruFit News. TV and print ads will be viewable on the site as well. To stay true to the Nike TruFit Maternity message the Pregnancy Resources and Podcasts will focus on aiding women in having a healthy pregnancy.

Direct Marketing

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To help create awareness for Nike TruFit Maternity, direct e-mail, mail, and gift bags will be utilized to reach the target market. The end goal is for recipients of the direct marketing to visit the TruFit Maternity website. Direct E-mail Direct e-mail will be sent to customers from the TruFit Maternity website and from the opt-in e-mail list from Fit Pregnancy (Appendix 40). To make a purchase, customers will enter their e-mail addresses and may opt-in to be a part of the Nike TruFit Community. Fit Pregnancy is a publication that caters to the TruFit Maternity target market, and will be a good fit for an e-mail list. The recipient will receive direct e-mails about TruFit Maternity promotions, health tips, and events. Direct Mail Brochure (Appendix 39a, 41-43) Direct mail brochures will be sent to the target market to inform potential customers of the benefits TruFit Maternity offers. The brochure will give an overview of the active-wear customization feature as well as the better material used (Nike Dri-FIT). A swatch of Dri-FIT material will be attached to the brochure so recipients can actually feel and see the difference. To promote continued awareness, a magnet will be included so recipients will see TruFit Maternity every day. Event Gift Bag The Event Gift bag will be given to participants of the TruFit Maternitys sponsored events. Currently TruFit Maternity is planning to sponsor the Nike Womens Marathon in San Francisco, the Seattle Iron Girl 10k, and the American Baby Faire Expo which takes place in various cities in the U.S. The bag is a draw string sport-bag

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featuring the TruFit Maternity name and logo. It will contain an informational brochure, a healthy tips guide for being pregnant and a pink nalgene bottle. OB/GYN Information Packet The objective of the information packet is to benefit pregnant women and to increase brand awareness. Women visiting the OB/GYN for their maternity appointments receive a gift bag with formula, diapers, coupons, etc. Included in this gift bag will be a small guidebook describing how to maintain a healthy lifestyle while pregnant. Integration The direct e-mail will have a similar style and color scheme as the TruFit Maternity website. It will feature the products as well as tips on how to have a healthy pregnancy. The direct mail brochure is also in the same style as other advertisements. The event gift bag and OB/GYN information packet will feature the TruFit Maternity logos and colors as well as helping promote the goals of maintaining a healthy pregnancy. All direct marketing will give the URL to direct recipients to the website.

Sales Promotion
Our sales promotion will be broken down into two divisions; online sales promotions and in store sales promotion. We plan on having unique promotions in each division to reward the customer for purchasing merchandise from both mediums. Although we will feature separate promotions, we will create an integrated promotion that creates synergy amongst our promotional vehicles.

Online Promotion

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The objective of our online promotion will be to drive online sales, increase traffic to our website, and provide our customers with additional incentive to purchase our merchandise through our online store. We hope to capitalize on the design, implementation, and creative resources available to us at Nike Inc. Our online promotion will feature a special pregnancy kit that will be shipped for free with each online order. The pregnancy kit will include: Nike womens fitness journal to track and monitor their physical activity (See appendix 62), copy of the current issue of Fit Pregnancy magazine, tips for healthy dieting and meal plan ideas, and a $10 off coupon for the registration price of the Nike Momens Marathon. All of these things combined will create a nice presentation that will be a rewarding and useful gift. The online sales promotion will begin with the launch of Nike TruFit maternity, April 12, 2007 and will end April 12, 2008. The online sales promotion will be supported by two months of online advertising prior to April 12, 2007. Our web site will feature preliminary information and a count down to the product due date. The cost of our free pregnancy kit will be $3 per kit. The Nike womans Fitness Journal will total about $3 per unit for binding. The printing costs will be absorbed by our in-house printing and publications department. The second feature, a recent copy of Fit Pregnancy Magazine will also be donated to us free of charge. We have come up with an agreement with the magazines owner that allows them to give us 1,000 copies per month. The contract was negotiated as such for the complimentary issue to be taken out of the magazines controlled circulation budget. They have requested that a mailing database be sent to them every month to follow up on the potential leads our agreement my have created. The third aspect in our online pregnancy kit is tips for healthy dieting

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and meal ideas. This publication will be created by members of our team. They will collect information from credible online sources and combine it with research from textbooks, journals, and magazines. The information will be published in a magazine style. Articles will feature the original source of information and how to purchase the original documents. We will follow the same process for collecting healthy meal ideas that are simple, nutritious and cost efficient. We will have a nutritional doctor review our selections before it is distributed. The cost for these items will also be absorbed by our inhouse publications department. The final part of our pregnancy kit will be a $10 off coupon for the Nike Womens Marathon. The cost for printing the coupons is absorbed as the rest of our printing costs. However the money that would be made from charging full price for the marathon will be lost. The dollar amount that could potentially be lost is $150,000 on registration. The marathon has 15,000 participants. Our website will feature identical color schemes, themes, and subjects as our print and television advertisements. Our print advertisements will feature our website URL and the current online promotion. We further integrate this part of the marketing mix by adding the incentive and discount to participate in one of our planned event sponsorships.

Bricks and Mortar Sales Promotion The objective for our bricks and mortar sales promotion will be to provide an incentive to purchase and drive sales made at our physical retail stores. As shoppers have become accustomed to each item of merchandise having a set of tags that are attached to the item. Among the tags are our promotional tags that will be a coupon for 20% off your next purchase of non-maternity (or post maternity) apparel. This will not reduce the price of the current item causing no problem with price orientation, but inspire brand loyalty

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and repeat purchases in different divisions of the company. Also in stores we will feature our TruFit Maternity kiosks that will allow you to browse through that stores available merchandise inventory, and create a virtual personal shopping assistant that is customized to resemble your stage of pregnancy. This virtual personal assistant will enable the customers to try on clothes without having to step a foot in a dressing room. This assistant will also suggest items that would compliment your current check-out basket, and offer you the option to order your products the store doesnt have in stock. Shipping fees for orders placed using our kiosk system will be free of charge. This could be a turning point in consumer shopping. It combines the worlds of online retailing and bricks and mortar stores. The purpose is to make an easy to use, personalized, efficient system that provides a solution to every problem a customer could encounter. The merchandise tag promotion will be run in on all articles of merchandise starting with our launch date, April 12, 2007. The in-store kiosk will become available in our Nike towns, Nike factory outlets and stores with the highest sales volume first. They will become available to smaller stores in three month increment and on an as needed basis. The cost of the merchandise tag promotion is absorbed by the organization in the printing costs for all other price and information tags. The kiosk technology and user interface is essentially an extension of our website and existing Nike technology. Our technology department will create the interface. We will buy computer equipment (monitors, keyboard, and mouse) from the Dell Company at a base price of $948 per package. Initially we will release 50 kiosks making our computer costs $47,400 (see appendix 44).

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Our merchandise tags will have our website information printed on them. Our kiosk system will be an in-store version of our online store and will feature identical user interface, colors, and images. We will also run an advertisement to explain the usefulness of our kiosk system. Point of Purchase In-store P.O.P. Our point of purchase displays are designed to captivate customers attention with visually appealing color schemes, subject themes and sales promotions. Since many sales transactions are decided upon at the point of purchase, we want to highlight the benefits of our products, and have them be visually stimulating to our customers. All point of purchase displays will be organized and easy to find merchandise, and will feature items to up-sell each purchase. Our design will include large print signs that direct women to the category of apparel they are looking for. We will place similar items near each other. Displays will have sizing information and feature a helpful guide to selecting apparel that best fits your needs. (See appendix 63) We have accessory items located around the store and strategic locations as well as at all pay points. Our point of purchase displays will be operational on our launch date of April 12, 2007. They will be re-merchandised and re-designed every other month. This will keep our displays up-to-date, and give our customers an experience that is new and refreshing each time they shop. The cost of our point of purchase displays will be free of additional expenses. The effort of our point of purchase displays will be focused around the merchandising layout and our in-store kiosks. Nike factory stores already have display cases and shelf space, as

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do Nike Town facilities. We have no slotting fees at Footlocker and Lady Footlocker stores because Nike has already purchased wall and floor space for a slotting fee. Our in store merchandise will be arranged in a section of space that has already been allotted to Nike products. All visual aids that are a part of the POP displays will be recognizable on our website and by our advertising theme Do it for your baby. Do it for yourself. Just Do it! This theme will be present on display cases, hangers and on wall and overhead signage.

Online P.O.P. The goal of our online point of purchase is to suggest additional items that the consumer may find necessary at the transaction point. We have technology that databases customers purchases and is able to find trends and buying patterns from that data. Each customer creates a login and password that is used to access the online store. Mailing addresses, e-mail addresses and previous payment methods which will help expedite the check-out process. When a customer clicks the check-out link from the web site they are directed to a screen that shows suggested items that compliment their current merchandise. Often times this feature will go unused, but in many instances it has proven to increase sales based on the customers impulsive nature. The database also will display what items have been purchased by each customer when they log onto the online store. This feature will be used when our online store goes operational on our due date, April 12, 2007. We have webmasters that constantly monitor the condition of the site, the information displayed and correct any maintenance issues. Online POP will be provided

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by our award-wining internal web-development department. This dissolves any major costs associated with our point of purchase. Similar to our Bricks and Mortar store point of purchase displays, the merchandise that is available and suggested to the customer and the transaction point will help add revenue the customers purchase. As mentioned previously, our online customers receive the free pregnancy kit that will integrate our event on bricks and mortar stores. Public Relations Consumer During the introductory period of Nike TruFit Maternity, we will be distributing five different press releases to announce the launch and promotional information about our product. We will be distributing our press releases through PR newswire; we plan to use these press releases as our main source to raise the publics awareness of our new line of maternity wear. Our goal is to generate media attention through our press releases and have press coverage of our stories, and news stories written about Nike TruFit Maternity. The first press release (Appendix 34) will be released on February 1, 2007 to coincide with the beginning of our advertising campaign. This press release will introduce our product and describe the features that it has to offer. This press release is meant to establish our new product as the future of athletic maternity wear. Our next press release will be released on our launch date which is April 12, 2007, (Appendix 45) this release will pertain information about our product and our sponsored events that are coming up within the next year. There will also be three other press releases that follow that will be released throughout the first year. These releases will contain more in-depth information pertaining to our sponsorship of the American Baby Faire Expo and the chance to win a spa getaway to New York City. In June we will also be announcing and 42

promoting early registration for the Nikes Womens Marathon. To promote early registration and get women to visit our website, we will offer free pregnancy kits for those who sign up for the marathon through Nike TruFit Maternitys website. Also in September we will send out a press release to announce our sponsorship of the Iron Girl 10k that is taking place in Seattle Washington. All of the press releases that are above are meant to help us get a positive word out about our product and help us reach our target market objective. The total cost of the five consumer press releases will be $3940 at $645 per release and $170 for statewide for each American Baby Faire Expo, according to PR newswire rates (Appendix 46-47). Trade Our main goal with the trade public relations is to let retailers know about what our product has to offer and the value that it would bring there customers if they carried Nike TruFit Maternity. Although we will be selling our product through our website and all Nike stores throughout the United States, we will also relay heavily on our retailers. Our trade publicity is meant to directly show retailers that our product is like no other athletic maternity wear, and will be in high demand. As with the consumer press releases the trade press releases will also be released through PR newswire. Our first press release will be sent out approximately six months before our launch date of April 12, 2007. This press will explain our product in-depth and all the versatility that it has to offer to pregnant women. We will also have our scheduled events contained in the press releases. With our press releases we not only want to create buzz within our target market but also with any possible retailers. Our second press release will be released in February approximately two months before our launch, as a

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reminder to retailers to place orders if they already have not so they can have their store stocked in time for the launch of Nike TruFit Maternity. The total cost of the two trade press releases will be $1290 at $645 per release according to PR newswire rates (Appendix 46).

Event Sponsorship Nike TruFit Maternity will be sponsoring three events throughout the fourteen month marketing period. The first event will be our own Nike Womens Marathon, the second will be the Iron Girl 10k, and the third will be the American Baby Faire Expo. We will have all of our sponsored events on the website as well as press releases to the public to inform them of our upcoming event sponsorships. We believe that these events will be very beneficial to sponsor in order to gain awareness and build a positive image among our target market of TruFit Maternity, being an active supporter of leading a healthy active lifestyle while being pregnant. At all the events we will be giving out promotional TruFit athletic gift bags and inside will be a Fit Pregnancy magazine, a pink Nalgene bottle with our slogan, logo, and website URL on it, informational brochures and other direct mail pieces explaining our products benefits. The Nike Womens Marathon will take place on October 21, 2007 in San Francisco California. Part of the proceeds will go to supporting the Leukemia and Lymphoma Society, which is the worlds largest voluntary health organization dedicated to funding blood cancer research. In launching our TruFit Maternity line at the event we will be gaining an increased awareness to our healthier active target market of women who are already aware of the Nike brand name. In launching our new maternity line at this event Nike users will see that we are active supporters in promoting healthy active 44

pregnancies among women and establish ourselves as the only maternity custom fit athletic wear on the market to increase our brand loyalty. We will incur no costs in sponsoring this event because it is our own event, the only costs we will incur will be that of promotions (See Appendix 48-50). The Iron Girl 10k will take place on September 9, 2007 in Seattle Washington. In sponsoring this event Nike TruFit Maternity will hope to gain an increased awareness to our healthier target market of women who might not be aware of the Nike brand name. In establishing a presence at this event we will gain an increased awareness of our healthier target market and establish brand name recognition of Nike being the only custom designed maternity athletic wear clothing line on the market. There we will have a booth were consumers can go and receive further information on Nike TruFit Maternity. Also at the booth there will be a kiosk display for consumers to customize and design their own clothing and be able to get tips on achieving a healthy pregnancy. The costs for this event will be $50,000 for sponsoring the event and the promotional costs we will incur assuming an audience of 15,000 participants will be $179,550, for a total cost of sponsorship of $229,550 (See Appendix 48-52). The American Baby Faire Expo will be taking place throughout the market year starting in early February and ending in late November. By establishing a presence as a sponsor of the Baby Expo, we hope to reach a different part of our target market who might not lead an active lifestyle. In targeting moms and moms to be at this Expo, we hope to promote an active lifestyle while being pregnant. To get our target audience motivated to be active while carrying their child. In showing the benefits and customized design of our clothing line we hope to catch our target markets attention in seeing that

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you can be comfortable and also look good while working out. At the Expo TruFit Maternity will be recognized as a sponsor in having our name, slogan, and website URL on all the showcase literature bags handed out at the door with TruFit healthy pregnancy kits, pink Nalgene bottles, and informational brochures and direct mail pieces inside. We will also have two table top showcase display booths set up in the main entrance of the Expo with banners set up as you enter the Expo. Our both will showcase our clothing line, a enter to win all exclusive sweepstakes giveaway for a pregnant spa getaway package to New York City (See Appendix 55-57),have informational brochures and our kiosk display to show women how you will go about customizing and designing their clothes. During the Expo we will have a pregnant run way show with everyday women, to showcase our clothing line to our target market and increase brand recognition by showing them how good they too can look while being pregnant. The costs for these events will be $15,000 for sponsoring the event, the promotional costs assuming an audience of 15,000 people attending will be $179,550, the cost of the spa giveaway will be $2000 for a total cost of event sponsorship totaling $1,572,400. (See Appendix 48-50, 53-57)

Evaluation of Promotion Plan Pre-testing of Advertisements (TV and Print) In order to effectively evaluate our print and television advertisements, we did both pre-testing and post-testing of our ads. We are using Gallup and Robinson to pre-test our ads. By using Gallup and Robinson we will gain a deeper understanding of viewers overall attitudes towards the ads as well as gain insight on product and brand recognition. Gallup and Robinson In-Tele Test and Rapid Ad Measurement testing will give as an 46

overall evaluation of the likeability, brand recognition, effectiveness, and general reaction to our advertisements. This will help us determine which advertisements are effective to then implement within our IMC Plan. For post-testing we will be using Starch INRA Hooper: Impression Study, this will work for our print and television advertisements. This study will help us identify the communications effect of our advertisements through personal interviews of consumers who have viewed the advertisements; this allows us to accurately determine if we are reaching our goal of 90% awareness. The total cost for the evaluations of our promotional plan are $22,500. (See Appendix 60) For our event sponsorships we will be using exit surveys to measure the effectiveness and the number of people attending. To measure the effectiveness of our website and internet advertising we will use log analysis software, this will provide us with the websites number of hits, pages, visits, unique users, and what exactly the consumers visited within our site. To measure the effectiveness of our online sales promotion and direct mailing of informational brochures and catalogues we will use the number of entries in the contest and the number of registered consumers who receive our direct mailing pieces. Lastly, in measuring the effectiveness of our public relations we will monitor any non related company publicity that is being distributed throughout the media. IMC Budget (Appendix 58-61) Initially, the advertising budget for Nike TruFit Maternity was estimated at $53,054,496, based on 20% of forecasted sales for the first year. Nike TruFit Maternity follows the Nike tradition of producing high quality active-wear using the best clothing

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technologies. Adding the feature of women being able to order custom-fit clothing, TruFit Maternity truly stands alone. Due to these characteristics, the primary advertising goal for the introduction of the custom tailored, maternity active-wear line is to create awareness among a large portion of the target market. The belief is, with few options for high-quality maternity active-wear, informed women will eagerly purchase from Nike TruFit Maternity to maintain their health and self-image, as well as helping their babies stay healthy. To increase awareness, funds from the advertising budget were allocated to TV advertising, print advertising, internet advertising, website development, direct marketing, event sponsorship, sales promotions, point of purchase and public relations (See Appendix 61 for pie chart) Television ads are effective at reaching a large number of women in the target market and a good vehicle to effectively communicate the message of TruFit Maternity. The shows selected to advertise in, were due to their large portion of women viewers at times when other obligations at work and home would draw their attention away. Total spending for this medium amounted to $20,328,764.50 of the total IMC budget (See Appendix 58). A better medium for targeting members of the target market has proven to be print advertising. Magazines that specifically cater to women who are driven, healthy, and intelligent were chosen to promote the Nike TruFit Maternity line. Two of these magazines were also used in other marketing efforts Fit Pregnancys website and e-mail opt-in list, as well as American Baby Faire Expo. To reach these women, of the IMC budget was used for print advertising or $5,508,225 (See Appendix 58)

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Banner ads placed on two websites that are frequently visited by the target market Oprah.com and Fitpregnancy.com. Based on the online advertising rates from the two websites $526,800 (appendix 58) will be spent placing the ads previous to the due date and after the introduction. Offering weekly podcasts to potential customers will bring the most bang for the buck. The service will automatically download educational, inspiring, and funny short videos to subscribers computers each week. These videos will all be focused around TruFit Maternitys central message, Do it for your baby. Do it for yourself. Just do it! The proverbial icing on the cake will come at no cost to the IMC budget. All videos will be produced and posted in-house by Nike. The website, nike-trufitmaternity.com, will be central at giving information about the TruFit Maternity line, as well as giving other information about the TruFit Maternity lifestyle. All print, TV, direct marketing, internet, and other advertisements will all prompt potential customers to the website. Like the podcasts, the website will be developed in-house by the Nike web design team and will only cost $99 per year, or .0002% of the IMC budget. This insignificant cost pales in comparison to the purpose of the website. Direct marketing was selected as a tool in achieving the communications goal due to its ease of measuring effectiveness, and ability to contact the target market. Fit Pregnancy maintains and opt-in e-mail database that will be utilized to engage more involved members of the TruFit Maternity target market. After the release of the product line, an opt-in e-mail list will also be compiled from the TruFit Maternity web orders. The cost of the e-mail database from Fit Pregnancy will be $87,500 (See Appendix 59), and the TruFit Maternity customer list will come at no cost. Direct mail will also be

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utilized to further propagate the benefits of Nike TruFit Maternity. A direct mail list was obtained from InfoUSA of the addresses of women that best match the target market. This list was purchased for $803,271.90 (See Appendix 59). Each address will be sent a brochure that details the advantages of maintaining a healthy pregnancy and Nike TruFit Maternity. The brochure will cost $0 because they are produced in house and postage will cost $7,731,412.08. At Nike TruFit Maternity Sponsored Events will be an effective means of building awareness of the brand and promote a positive brand image. Three events will be sponsored The Nike Womens Marathon, Seattle Iron Girl 10k, and the American Baby Faire Expo. The Nike Womens Marathon and Seattle Iron Girl both will be held during the fall of 2007, giving the brand a much needed boost at a time of year that is typically a lull in retail sales. At each event gift bags will be given to help build a positive image, as well as aid in sponsorship recall. Included in the sport-bag will be a Fit Pregnancy magazine, a pink Nalgene bottle - with the Nike TruFit Maternity logo, slogan, and URL printed on it, and an informational brochure giving more detail about Nike TruFit Maternity. The total estimated cost of the event gift bags will be $179,550 per event (based on 15,000 gift bags (See Appendix59). There will be no cost in sponsoring the Nike Womens Marathon aside from the cost of the gift bags. Sponsoring the Seattle Iron Girl will amount to $50,000 for the sponsorship and $179,550 for the gift bags, totaling $229,550. The American Baby Faire Expo will be an opportunity to promote to the less-active members of the TruFit Maternity target market. The Expos will be in eight U.S. cities between February and November 2007. The cost of sponsoring each event will be $15,000 to sponsor the event, $2000 for the spa-give-away

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promotions at the events, and $179,550 to distribute 15,000 gift bags at the Baby Faire Expos. The total cost of each expo will be $195,750 per event, totaling $1,566,000. In total event sponsoring will be $1,981,500. Sales promotion tactics will also be utilized to draw attention to the Nike TruFit brand, enhancing the shopping experience, and promoting a healthy lifestyle. Customers of the TruFit Maternity website will be given a Healthy Pregnancy Kit with their purchase, which will include a fitness journal, current Fit Pregnancy magazine, pregnancy nutrition guide with meal ideas, and a $10 off coupon to register for the Nike Womens Marathon. The cost for each online sales promotion will be $3 for the kit and potentially $10 against the revenue from the marathon registration fee. If each recipient used the coupon to register, it would cost $195,000 (Appendix 59). To provide a more engaging shopping experience at Niketown stores and Nike factory outlets, computer kiosks will be set up. The kiosks, using Dell computers, will feature a virtual shopping assistant that resembles the body type of each customer. This will enable the customer to try on her clothes without having to enter a cramped dressing room. The virtual shopping assistant will also suggest other items to complete the shopping experience, and help follow through to the order. This revolutionary in-store shopping experience will come at a small cost, only $47,400 (See Appendix 59). Due to the kiosks being placed in Nike stores, there are no other positioning fees. In addition, other P.O.P. signage and displays at Footlocker and Lady Footlocker stores will come at no additional cost due to the current slotting arrangement between Nike and the stores. A credible voice to promote the Nike TruFit brand will be through press releases to the news media. The press releases will be produced to increase awareness of Nike

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TruFit Maternity and distributed through PR Newswire. These will aimed at customers before and during the product launch, and build a positive brand image through news of TruFit Maternitys sponsored events. Press releases will also be directed toward retailers carrying the TruFit Maternity products to build awareness pertaining to the benefits of this exciting new product. There will be five consumer targeted press releases and two trade targeted press releases. PR Newswires fee for each press release is $645 for national distribution and $170 for statewide distribution, totaling $5,500 for all of the press releases distributed (Appendix 59). Through all of these marketing efforts, the goals set out to build brand awareness among a large portion of the target market will be effectively met. The vehicles chosen were based on their ability to reach as many women in our target market, while maintaining a positive brand image, and communicating the central message of Nike TruFit Maternity Do it for your baby. Do it for yourself. Just do it!

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