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Case Study | Inside Nike’s Radical Direct-to-Consumer Strategy

• Chantal Fernandez

In October 2020, in the middle of a global pandemic that had infected 188 countries, causing record sales damage across the retail sector, Nike’s share price hit an all-time high.

Like other retailers, Nike had been forced to close most of its network of more than 900 stores across the world, as had its key wholesale partners like Nordstrom and Foot Locker.

But the American sportswear giant’s performance during the pandemic, when its online sales spiked, signalled to many that Nike had the competency to prosper long term, in a future that will be increasingly defined by e-commerce and digital brand connections.

It was a validation of a strategy that Nike prioritised three years ago, dubbing it “Consumer Direct Offense,” but the seeds of the approach go back almost a decade.

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Above all, Nike is a marketing company. It doesn’t just sell sneakers; it sells the brand aspiration that imbues those sneakers with meaning. But to achieve the reach required to scale its business, Nike’s distribution strategy had long-relied on third-party retailers to sell its products, even if the consumer experience offered by those partners diluted its brand.

But in a future increasingly defined by e-commerce, fast-moving trends and, above all, the rising power of branding to drive consumer preference when competitors are just a click away, Nike realised that in order to thrive, it needed to take control of its distribution to better manage its brand and deepen its connection with consumers.

It was definitely architecting a new retail, and a bold, retail vision for Nike.

Such an evolution is easier said than done, especially for a business as large as Nike in a category as competitive as sportswear. But by radically cutting back on its wholesale distribution and raising the bar for brand experience with the third-party partners that remained; expanding its focus on content, community and customisation to keep customers close; investing in its data analytics and logistics capabilities; and rethinking the role of the store as a brand stage, Nike drove a veritable direct-to-consumer revolution.

When the pandemic hit, these shifts went into overdrive.

“It was definitely architecting a new retail, and a bold, retail vision for Nike,” said Heidi O’Neill, Nike’s president of consumer and marketplace, and one of the most prominent executives leading the brand’s new strategy in recent years. “But it started with our consumer, and we knew that consumers wanted a more direct relationship with us today.”

In this case study, BoF breaks down Nike’s pioneering direct-to consumer strategy and how it has worked to the brand’s advantage, propelling its share price to new heights during the global crisis of 2020.

Click below to read the case study now.

• Mark Parker
• John Donahoe
• direct to consumer
• athletic apparel

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Nike Marketing Strategy 2024 - 7 Effective Findings from Case Studies

• 38 Comments
• Published on Sep 20 2023

Table of Contents

Nike marketing strategy: top effective findings from case studies, history of nike, goals and objectives - nike marketing strategy, nike’s target audience, nike marketing strategy: challenges, solutions, and its approaches, how nike’s marketing strategy evolved, how to apply the nike’s marketing strategy to your brand, growth and market reach, what to take.

Nike has taken an image of an athleisure company and an American multinational corporation, but, the brand has taken way the world with inspiration, emotion, diversity, and unity with its simple marketing campaigns.

The core purpose of Nike marketing strategy is to keep moving the world forward. Over the years, it has launched and introduced various stylish and sustainable services from remembering the Swoosh, and the tagline ” Just Do It” which does not only come into our mind.

Enlisting the action of Nike's marketing strategies is remarkable. What makes it so special to get the products?

There are multiple reasons why people buy Nike products in this case study explained, but, one absolutely convincing means is that it is more than a brand that builds communities, planet protection, and makes sports accessible beyond diverse horizons. We have also discussed the top Nike Marketing Strategies that you can learn in 2024.

Purpose of the Article

The main aim of this article by Sprintzeal caters to information as social proof from various case studies about a process, product, or service that can resolve marketing issues.

Known as one of the largest athletic apparel companies,  Nike (Nike, Inc.)  is an American multinational association that deals with the design, development, manufacture, and global marketing and sales of footwear, accessories, apparel, equipment, and services. Began with a mission to, “bring inspiration and innovation to every athlete” in the world It is based in Beaverton, Oregon, NIKE, Inc. includes the Nike, Converse, and Jordan brands, and many more. 

It was founded by Bill Bowerman and his former student Phil Knight in 1964.

Nike plans to build a 3.2 million square foot expansion to its World Headquarters in Beaverton.

The Nike brand strategy focuses on bringing the culture of the invention to today’s athletes while solving issues for the upcoming generation.

Nike has acquired and sold several footwear and apparel companies over the years. It has also acquired Starter, Zodiac, Celect, and Datalogue and purchased RTFKT Studios.

It was founded in 1964 by Bill Bowerman, a track-and-field coach at the University of Oregon, and his former student Phil Knight as Blue Ribbon Sports. The brand was rebranded in the 60s, their company was relaunched as Nike in 1971.

In 1972, Blue Ribbon sports which later became Nike unveils "Moon Shoes

In 1974, the Waffle Trainer was patented, featuring Bill's famous Waffle outsole.

In 1982, introduced the Air Force 1 basketball shoe.

In 1994, Nike signs LeBron James

In 2000, launched Nike Shox in the market.

In 2008, introduced the Flyware shoe and signs Derek Jeter

In 2018, introduced React Element 87. Nike launched a new "Just do it" ad campaign featuring Colin Kaepernick.

In 2020, Nike Air-max 97G "Peace and love" was introduced. It also reveals uniforms for the 2020 Tokyo Olympics.

The main priorities and objectives of Nike marketing strategy,

• It includes promoting diversity, equity, and inclusion.
• Innovations that create sustainable materials and approaches to tackle environmental impact.
• Towards advancing a transparent and responsible supply chain.
• To build community by investing in organizations that pay efforts on economic empowerment, education, and equality.
• Uplifts unity with the current generation through sport and encourages an active lifestyle to reach their potential future.

To truly understand the effectiveness of Nike's marketing strategy, it's crucial to dissect the various segments within their vast target audience. Nike's ability to connect with different consumer groups is a central theme in this Nike marketing strategy case study. Let's delve deeper into these segments:

Athletes, Professionals, and Enthusiasts: Nike casts a wide net, catering to athletes at all levels, from elite professionals to passionate enthusiasts. Their product range is meticulously designed to enhance athletic performance, making Nike the preferred choice for athletes worldwide.

Running Enthusiasts: Nike's dominance in the running domain is unparalleled. They offer an extensive selection of running shoes, apparel, and accessories tailored to the specific needs of runners, whether they're seasoned marathoners or occasional joggers.

Sports Enthusiasts: Beyond athletes, Nike appeals to anyone with a fervent passion for sports. Their marketing efforts invite individuals to adopt the mindset of an athlete, whether they actively engage in sports or simply lead an active lifestyle.

Women in Sports: Recognizing the growing influence of women in sports, Nike has dedicated a significant portion of their marketing efforts to empower female athletes and sports enthusiasts.

Young Athletes: Nike understands the importance of cultivating brand loyalty from a young age. Their marketing strategies are crafted to inspire and engage young athletes, nurturing a lifelong connection to the brand.

Sustainability Advocates: In recent years, Nike has expanded its reach to consumers who prioritize sustainability and ethical practices. Their marketing seamlessly integrates these values, resonating with the environmentally conscious audience.

This diverse and inclusive approach to their target audience has been a pivotal factor in the success of Nike's marketing strategy. It showcases their ability to resonate with a wide range of consumers, from professional athletes to environmentally conscious individuals.

Striving to create more eco-friendly materials as possible, bioplastic for their sneakers is used as a replacement for plastic, leather, and other materials.

Well known for the fact that Nike promotes its products through sponsorship agreements with influencing athletes, professional teams, and athletic teams.

- High level competition of Nike with Adidas and Reebok and other companies with the closely similar product line and common target markets. 

- Limited exports of Nike products due to legal restrictions can be one reason for fewer sales or revenues.

- The economic and political situation of those countries manufacturing Nike products is also one main challenge.

- Being a global brand, controversies are sensitive to the company image.

Hence, these is some of the reasons why strategies are relevant for Nike.

The questions still arise, why do people go after Nike products even if several brands apply the same approach? Does Nike market segmentation do it differently?

With being able to pull effective  Nike marketing plan  guidelines over past years; the other part also had faced consequences and drove up on solutions-making with,

1) Advertising

One of the key parts of the  Nike advertising strategy  is advertising through television ads and other social media forms with affiliate marketing.

In 1982, Nike aired its first three national television ads during the broadcast of the New York Marathon.

2) New Media Marketing

Having to understand the importance of having different mediums along with display advertising, content marketing, and social media promotions, boosts Nike global marketing strategy in the right direction.

Nike is risk-taker, with the way to early application of internet marketing, email management technologies, narrowcast communication technologies, and broadcast to build multimedia marketing campaigns.

3) Emotional Branding

How undeniable that Nike always puts powerful emotions through the brand! The advertisement seldomly briefs on its products and services.

A few of the best ads and commercials from Nike quotes for motivation, inspiration, and greatness can be:

“We gave up giving up”,

“All you have to do is pick up your feet.”

“My better is better than your better.”

“Don’t believe you have to be like anybody to be somebody.”

The building of the right emotions by Nike effortlessly comes through curated content and narrative that again narrates a story; a tale of inspiration applicable to anyone to combat their challenges and meet their victory.

Instead, Nike emotional branding has been impactive followed as an effective strategy in the world of marketing at present. It inturns invokes emotions related to success, morale, victory, and self-improvement which makes it a powerful product.

4) Nike Target Market Segmentation

One thing marketers should learn from  nike segmentation targeting and positioning 

is understanding their customer.

And, Nike focuses very well on their main target markets for their product and services i.e., athletes, runners, and sports enthusiasts.

In the running years, it enlarges strategies to lead precise market segments for runners, women, and young athletes. 

An observation is taken into action to create that meets the custom interests as per customer requirements.

5) Convey a Story

To have been accompanied by a global audience, another marketing strategy applies by conveying the story in simple and effective points rather than using descriptive or jargon with their brand voice.

In this way, they connect and try to encourage the masses to chase their dreams and “Just do it”.

An instance as shown in the above image; another excellent technique is their tagline which builds an emotional marketing story that relates to anyone to catch their dream and build customer loyalty,

6) Newsworthiness

This brand strategy uses newsworthiness to impact and appeal to a story. In most cases, it uses recent events or happenings about what people need or want to know.

It is also tricky to decide what stories to cover, but Nike evaluates and continues with newsworthy stories before the release to avoid controversies or false information.

This pattern could be applied based on events that impact your readers all over the world

7) Invest in Customer Loyalty

In Nike, it associates with diverse masses apart from the target audience. Does it have good customer loyalty? Yes. 

With less loyal customers, the challenge to come up with anticipatory decisions and effectively plan your finances can be scary.

One of the reasons the brand is irresistible globally till current which is less surprising is sole because of customer loyalty. The precise, well-executed product and service not only attract new customers but retain customers with good profit margins.

- Nike is releasing “No Finish Line,” a new book that celebrates and figures Nike’s 50 years of game-changing design and innovation in the favor of athletes and sports. It lay down a design vision for the next 50 years.

- It applies measures to create a better future by investing in active and inclusive communities. Nike Community Impact Fund (NCIF), an employee-led and neighborhood-focused approach 

in aid of local community organizations globally for a positive, effective, and making a play for all the kids.

- Nike made about 35% digital and aims to achieve 50% by 2025.

One of the best ephemeral approaches is that a part of Nike’s success goes to influencing and inspirational athletes such as Michael Jordan, Mia Hamm, Roger Federer, Tiger Woods, Kobe Bryant, Lebron James, and many others.

To truly appreciate the efficacy of Nike's marketing strategy, it's essential to trace the evolutionary path it has taken over the years. This retrospective analysis of Nike's marketing strategy is integral to our Nike marketing strategy case study. Here is a comprehensive exploration of the evolution of Nike's marketing approach:

The Early Years: Nike's origins can be traced back to its predecessor, Blue Ribbon Sports, which primarily served as a distributor of Japanese running shoes. During this nascent phase, Nike's strategy was firmly rooted in performance and innovation.

The Birth of Nike: In 1971, Nike emerged as a distinct entity, drawing inspiration from the Greek goddess of victory. This marked the inception of Nike's emphasis on empowerment and achievement, an approach that would become central to their branding.

Celebrities Take Center Stage: The 1980s heralded a new era for Nike, marked by the strategic use of celebrity endorsements, most notably with basketball icon Michael Jordan. These high-profile endorsements solidified a deep emotional connection between Nike and consumers.

The "Just Do It" Era: In 1988, Nike introduced its iconic "Just Do It" slogan, encapsulating the ethos of personal determination and resilience. Swiftly, it became synonymous with the brand's identity and mission.

Digital Transformation: Nike was an early adopter of digital marketing, recognizing the potential of the internet and social media. They harnessed these platforms to engage consumers through multimedia campaigns and create a digital presence that mirrored their innovative spirit.

Emotional Branding: Nike's pivot towards emotional branding represented a pivotal moment in their marketing evolution. Rather than simply showcasing products, they focused on evoking powerful emotions, such as success, motivation, and self-improvement. This shift solidified Nike as a potent and influential brand.

Sustainability and Inclusivity: In recent years, Nike has demonstrated a commitment to sustainability and inclusivity, both in their products and marketing. They aim to create eco-friendly products and promote social responsibility, aligning with the evolving values of today's consumers.

This journey of evolution highlights Nike's remarkable adaptability and capacity to align their strategy with changing consumer landscapes. From their roots in performance and innovation to their current focus on emotional branding, sustainability, and inclusivity, Nike's marketing strategy has continued to resonate with a diverse and ever-changing audience.

To harness the power of Nike's potent marketing strategy for your own brand, it's essential to follow a well-defined blueprint. This section of our Nike marketing strategy case study provides a step-by-step guide on how to apply Nike's principles to your brand effectively:

Know Your Audience Inside Out: Much like Nike, start by conducting thorough market research to understand your target audience's specific needs, preferences, and aspirations. Tailor your products and marketing strategies accordingly.

Forge an Emotional Connection: Take a page from Nike's playbook and aim to create profound emotional connections with your audience. Share compelling stories that resonate with your brand's mission and values, inspiring and motivating your customers.

Embrace the Digital Realm: Leverage the expansive digital landscape, including social media, content marketing, and multimedia campaigns, to amplify your brand's reach. Follow Nike's lead in utilizing these platforms effectively to engage and captivate your audience.

Champion Sustainability and Social Responsibility: If your brand aligns with sustainability and social causes, make them integral to your strategy. Showcase your commitment to positive change through sustainable practices and support for relevant social issues.

Consistency is Key: Maintain a consistent brand image and message across all marketing channels. This consistency not only reinforces your brand identity but also leaves a lasting impression on your audience.

Prioritize Innovation: Continuous innovation should be at the heart of your strategy, much like Nike's dedication to pushing the boundaries. Innovate your products and marketing strategies to stay relevant and capture the full attention of your audience.

Leverage Influencers and Celebrities: Collaborate with influencers or celebrities whose values align seamlessly with your brand's mission. This partnership can help expand your reach and enhance your brand's credibility, similar to Nike's successful partnerships with iconic athletes.

By following these steps, you can effectively incorporate the power of Nike's marketing strategy into your own brand. Building a successful brand, as exemplified in this Nike marketing strategy case study, requires a strategic approach, unwavering dedication, and a profound understanding of your audience's aspirations and needs.

Don't Wait, Just Do It

In the ever-changing field of marketing, the key to success is action. Much like Nike urges you to take action; we encourage you to propel your digital marketing career forward by enrolling in Sprintzeal's Digital Marketing Course. Don’t let your hesitation cost you your opportunities.

Equip yourself with the skills, knowledge, and confidence excel in the digital marketing domain. We curate and design our courseware to ensure you're well-prepared for the dynamic world of digital marketing. So, why delay? Enroll now , and allow us to help you make your career in digital marketing.

As per  Wikipedia , During the Q1 of 2020, the company's online sales have grown by 36%. While the net income in mil. is $6,046 and revenue is $46,710 in 2022. 

As per the Forbes report, Nike's Financial Summary for 2022, the revenue is $46.9 billion with assets of $38.6 billion and profits of $6.1 billion.

The following image gives a glance at the percentage growth with the approaches.

Image Source:  Nike

Final Results

During the article study, we also found that problems may occur subsequently with changes made to the distribution, marketing, and management strategies of Nike.

Companies can refer to Nike's marketing strategy to influence the four Ps i.e, price, product, promotion, and place. New features may expand the changes to higher growth of the product and might develop a new market.

Source 1:  Nike-A Case Study Just Do It

Source 2:  Nike Marketing Case Study

Source 3:  An Investment Analysis Case Study: Nike - NYU Stern

Research Details

This article emphasizes curated study from three case studies apart from Nike’s official website.

Therefore, all the effective strategies are presented for information and education means for readers in response to the current marketing issues along with the given references in this article.

Winning the market is one technique that Nike has been doing so well since its implementation till date. What’s even interesting is having to market its products under its various brands and subsidiaries.

The subsidiaries like Nike+, Nike Golf, Nike Blazers, Nike Pro, Air Jordan, Air Max, and other brands like  Hurley Int., Jordan, and Converse.

In the field of such marketing, digital marketing plays a dominant role. To pursue a career in digital marketing training, choosing from a globally recognized ATO (An accredited training organization) from  Sprintzeal  accelerates your career of interest.

To explore more courses, consider visiting  Sprintzeal’s all courses  and earn a certification to level up your career.

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Nchumbeni Yanthan

Nchumbeni is a content writer who creates easy-to-read educational blogs, articles, varying client request, and social media content helping millions of learners meet their career goals.

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A Case Study: Nike's Marketing Strategy

Nike's marketing strategy rested entirely upon a brand image that is favourable and has evolved into a great multinational enterprise over time. The brand image has been kept afloat due to the strong association with Nike's logo which is quite distinctive and the slogan “Just Do It” which has been used in advertisements for quite some time. The company has been known to invest heavily in ads and brand promotion.

Market Segmentation

Most of the consumers of Nike's products are mainly sports enthusiasts or people intending to carry out some form of physical activity, be it a long walk or football match. This is the case because of the utility that comes with the products. Nike targets these consumers by agreements between them and athletic teams for product sponsorship and eventual promotion to the members of these teams. In this way, Nike is able to reach a wide number of consumers and consumers who are more likely to buy. Even though others are likely to buy the products, Nike pays specific attention to targeting the athlete more than any group of individuals, viewing them as the light bearers of trends. 

Targeting strategies

Nike uses a number of strategies to target their immediate consumers; athletes and other sportsmen. The targeting strategies include, among others the sponsorship of products by professional athletic teams, celebrity athletes and college athletic teams. This strategy is specifically successful because of its ability to reach a large number of athletes. If the athletic team manager prescribes a specific type of track shoes made by Nike, the trainees have no option other than to buy them. The teams can as well buy the track shoes in bulk and supply them to the team members.

The second strategy that Nike applies is the designing of a product destination. It does this by associating success with the product. For example, when a celebrity athlete sponsors a specific brand of athletic shoes, the brand will be associated with success. This psychological effect is reinforced with ads that affirm this position.

Next up, Nike targets the consumers who are likely to develop product intimacy; those who care more about the utility and quality of the product than the price. In this way, the pricing is not affected too much in a bid to accommodate a large number of consumers. However, price, amongst other things has also been factored into Nike's marketing strategies.

Pricing Strategies

So we already know that Nike targets consumers who embrace product intimacy and thus care less about the product. This has enabled Nike to set relatively higher prices than its competitors. This is a strategy that calls for higher pricing points so as to push the perceived product value. It has been established that consumers who consider a product to be of high quality are likely to pay a higher price more often and consistently. Once consumers develop product intimacy, they come to associate their person with the product and will pay whatever price quoted on the product provided it has the Nike logo on it.

Another very important thing to note is the fact that Nike uses the vertical integration pricing strategy in which they take ownership of the participants at channel levels that differ and they also engage in multifarious channel level operations both in a bid to control costs and thus influence pricing function.

Distribution Strategies

Distribution strategies embraced by an organisation can either give them an edge in the market or make them lag behind the winners in the market. The more efficient the product distribution is the more sales and thus more profits. The delivery of the right product and at the right time to the consumer not only effects utility but also leads to a high degree of consumer satisfaction and loyalty. Nike distributes its products on a level basis. The high priced premium products are given to certain distributors while leaving the low priced to be sold at highly discounted prices at mega retail stores such as Wal-Mart. Whereas Reebok embraced a limited distribution strategy Nike ventured more into a global market capitalisation.

Promotional and Communication Strategies

Apart from Nike selling quality products that have to lead to a high degree of customer loyalty, the promotional strategies that the company employs are simply superb. Nike has contracted a number of professional and celebrity athletes who have managed to draw considerable attention to their products. Some of the sportsmen signed by Nike include football (or soccer) stars such as Ronaldinho, Ronaldo and Roberto Carlos, basketball players such as Jermaine O'Neal and Lebron James2, triathlete Lance Armstrong and golf superstar Tiger Woods. This has created a relatively high degree of Nike products' awareness. Besides the signing of celebrity sportsmen to promote its products, Nike has also employed a lot of ads through mass media. Nike employs a selective-demand advertisement focused on the high priced shoes used for traditional sports.

Nike has remained and continues to remain at the top of the production and distribution of sports gear and equipment. However, it should be noted that competitive pressure cannot allow Nike to ‘sleep at the top'. The recent Reebok- Adidas merger poses a great challenge to devise new marketing strategies to continue leading or recede to oblivion. The following recommendations are suggested in a situation where marketing management is competent. These include: 

Increased market share through new product development, competent pricing strategies, advertisement and other sound promotional activities.

Restructure market dominance by driving away competitors mainly through fierce promotional strategy coupled by pricing function that will make the market quite unattractive for the competitors.

Increased social responsibility to strengthen the image of the company

Diversification of market through factoring the Asians and Black Americans in their product promotion besides doing research to establish the tastes of these groups.

Venture into new distribution channels especially in international markets

Different pricing strategy so as to open up new market segments.

All the above show competent marketing management can hoist organisations to become market leaders and making the market leaders maintain their competitive edge in the market through adherence to marketing ethics, marketing plans and well thought out and formulated marketing strategies . 

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Nike Marketing Strategy: How Nike became a market leader and you can "just do it" too!

Learn about nike's iconic marketing strategy and advertising campaigns. read how nike aces the 4ps of marketing mix - product, price, promotion & placement..

• overview#goto" data-overview-topic-param="history">Revolutionary history
• overview#goto" data-overview-topic-param="first">Nike's First Shoes
• overview#goto" data-overview-topic-param="mix">Nike's Marketing Mix
• overview#goto" data-overview-topic-param="strategy">Nike's Marketing Strategy
• overview#goto" data-overview-topic-param="noteworthy">Noteworthy Marketing Campaigns
• overview#goto" data-overview-topic-param="key">Key Takeaways

When you hear the word Nike, it’s impossible that you don’t see the Swoosh logo right in front of your eyes along with the words “Just Do It”. This is the result of Nike’s exemplary marketing and brand positioning since its inception in 1964. Today, Nike has established itself as the undisputed leader in the sportswear industry.

Being a consumer brand, Nike has managed to develop a competitive advantage of customer loyalty and strong brand recognition. What marketing strategy did Nike use to be the top-valued brand worth USD 176 billion in the sportswear industry? Let's find out!

Revolutionary history and innovation of the first Nike shoes

Inspiration and innovation are Nike’s deeply rooted core values. To understand this better, we need to know Nike’s history to understand why it is the way it is.

Foundation of Nike as a company

Nike Inc, previously known as Blue Ribbon Sports, was founded in the year 1964 by Bill Bowerman and Phil Knight. Nike is an American sportswear company headquartered in Oregon.

Fun Fact - Bill Bowerman was a track and field coach at the University of Oregon, and Phil Knight was his former student.

Source - Business insider

The jogging revolution

Jogging wasn’t mainstream in the early 1960s. It was believed to be only for athletes. 

On a trip to New Zealand in 1962, Bill discovered jogging and its benefits. He published a pamphlet on jogging in 1966, which was then turned into a book the next year. Bill is credited for bringing the jogging craze which swept America in the late 1960s. Jogging was then seen as a means to maintain a healthy lifestyle.

First shoes by Nike – Waffle Trainer

Nike’s first retail outlet was opened in 1966. Once, while having breakfast, Bill looked at the waffle and said the top part would be perfect for the track field. He got the materials for making the shoe soles and poured them into the waffle iron. This is how Nike created its first shoe, Waffle Trainers. Nike launched them in 1973.

Where did Nike derive its name and logo from?

Blue Ribbon Sports was renamed Nike Inc in 1979 and went public in December 1980. Nike derived its name from the name of the Greek Winged Goddess of Victory. The logo represents the wings, symbolising motion and speed.

Nike’s first content marketing strategy

In Nike’s case, content marketing came before the product. The customer base was built before the idea of the product was even thought of. Which marketing strategy did Nike use in its initial days?

Customer awareness

In the 1960s, people were unaware of the benefits of jogging. Selling shoes in a market that didn’t know it needed them would have been a fool’s act. Nike sold shoes only when customer awareness was shifted from Unaware to Solution aware.

Existing pain point 

Nike solved an existing problem which is ‘how to get fit’. It didn’t try to solve a non-existing pain point. 

You must develop products keeping your customers in mind.

Benefit-centric marketing

Nike shoes were sold as a means to support a healthy and sporty lifestyle. It didn’t boast about its product features. It used a benefit-centric marketing plan instead of a product-centric one.

Sell products you believe in

Bill Bowerman invented shoes that were lighter and faster. This shows how passionate he was about them. Nike’s belief in providing the highest customer value originates from its founders themselves. Nike truly believes in its products. This reflects in Nike’s customer perception as well.

Nike Marketing Mix - The four P’s of marketing

Nike uses its marketing mix to determine the strategies to be applied to execute its marketing plan. Nike’s marketing mix focuses on high-quality sportswear sold through online or offline mediums at a premium price while using customer-centric promotion strategies.

Nike Product Strategy

Although Nike shoes are the MVP, it’s a sportswear brand. Nike's products range from sports shoes, clothes, backpacks, sports equipment, and accessories. 

Nike has positioned itself as a leader in the sportswear industry. It focuses on high-quality products that are durable, visually appealing, and trendy. 

Nike produces distinct shoes for different sports like running shoes, basketball shoes, tennis shoes and ice hockey skates. Air Jordan is the most valued Nike shoe brand. Modern technology and innovation are the core elements of the creation process of Nike products.

Nike’s Pricing Strategy

Nike charges a premium price for its product quality, the value it provides, and the intensive technology investment.

Nike's strategy consists of the below two pricing plans:

Value-based pricing strategy

In this pricing strategy , Nike analyses the consumer perception that is the maximum price the consumers are ready to pay for its products and charges value-based prices.

Premium pricing strategy

Nike charges premium prices to establish itself as a premium brand amongst its competitors. Premium branding is done by partnering with high-profile sports celebrities and sponsoring them as brand ambassadors as well as being a sponsor of sports events like being an Olympic sponsor. This establishes Nike as a brand with premium products.

Nike’s Distribution channels

Nike sells its products through online and offline mediums for higher market reach.

Retail stores

Nike uses retail stores to sell its products to a wider target market without spending extra costs on infrastructure. These are strategically located to be easily accessible to consumers. This includes local stores as well as shopping malls. 

Online store

Nike’s online store website offers a wider range of choices along with the convenience of place and time. It offers an effortless and fun user experience through vibrant pictures, detailed filters, and smart product recommendations. Online store product prices are lower because other than delivery and manufacturing cost, there isn’t any added cost.

Nike-owned retail stores

Nike-owned retail outlets are called NikeTown. In these stores, only Nike athletic footwear, apparel, and accessories are sold. This allows them to control the sales process and provide customers with a brand-focused user experience. As of May 2022, Nike owns 1,046 retail stores all over the world. 

Source - Nike Website

Nike Promotion Marketing Strategy

Nike uses a highly influential promotion marketing strategy to maintain a strong brand image and bring in maximum sales.

It uses every possible marketing trick in the book to amp up its reach like Banner Advertising, placing a sales team for personal selling through retail outlets and direct marketing via website, emails, and social media networks. Nike also spends a ton of money on sales promotions by offering discount codes. It's also heavy with its Public Relations activities and ads via digital marketing strategy to improve its brand value.

As of 2022, Nike's global ad spending amount to USD 3.22 billion alone, minting them USD 46 billion in revenues!

Nike's Marketing Strategy

Nike has adapted well to the ever-changing trends and dynamic technology without losing its core identity, brand message, and voice. Their approach is still consumer-centric and benefit-driven. Even in a fiercely competitive market, Nike manages to be the talk of the town with below methods:

Brand positioning

The Nike marketing strategy operates in a focused target market which is the sporting goods industry. Nike’s target audience is professional athletes, sportspersons, and people who want a healthy and sporty lifestyle.

Focused marketing helps the Nike company be at the top of the mind of its consumers. When people think of sportswear, they automatically think of Nike. 

It uses a customer-centric approach. Instead of boasting about the product and its features, Nike focuses on their consumer’s pains and problems and how a Nike product can solve them. Few companies are doing it like Nike.

As a brand, you must  define your ideal customers and serve only them. If your marketing message doesn’t target a specific group of people, or you are serving multiple vertical markets, you are writing your doom. 

Your consumers don’t care about the brand-new features of your product. They care about how it can make their life easier. Don’t sell products, sell benefits.

Emotional storytelling 

Nike is the ace of brand storytelling. Through Nike’s ‘Just Do It’ campaign, it tells stories to encourage and inspire people to achieve their fitness and sports goals.

Authentic stories build trust and a strong connection with the brand. Nike helps people to dream big and customers feel like they belong. This builds a strong community and unshakable consumer loyalty, which is rare to find in other brands.

Nike’s very first commercial shows a shirtless 80-year-old man running across the Golden Gate Bridge. He runs 17 miles every morning. The core message is, if an 80-year-old can do it, you can too!

Nike - Just Do It (1988) - Very first commercial

Nike’s Find Your Greatness campaign conveyed the message that greatness isn’t for a select few. It’s in every single one of us. This ad shows people from various parts of the world and ages overcoming their fears and achieving greatness.

Nike: Find Your Greatness

By taking inspiration from the Nike marketing strategy, you must use storytelling in your content marketing strategy. Take your potential customers on a Hero’s journey where they are the protagonist fighting their way through obstacles and achieving victory.

The Nike social media strategy

Nike’s consumers are the younger generation between the ages of 15 and 45.

The company depends on this data to find out on which social media platforms Nike users hang out and develops a marketing plan to provide value to them on those platforms.

Social media marketing channels help Nike improve its brand recognition and be at the top of its target customers’ minds.

Nike differentiates itself based on the value it provides instead of price or any other factor.

Nike’s social media content types include:

Sports celebrity endorsements

Nike collaborates with high-profile faces in the sports industry and uses emotional marketing and storytelling to celebrate their achievements and talk about their failures.

Endorsements by famous athletes like Michael Jordan, Kobe Bryant, Ronaldo, Serena Williams, LeBron James, and many more establishes Nike as a premium brand.

In this Instagram post, Olympian and gold medallist Simone talks about how becoming the first Black swimmer to win gold impacted the future of the next generation of Black swimmers.

https://www.instagram.com/p/ClboXHrrVMj/

Joining customer’s social conversations

Nike joins existing customers' conversations on social media where it is mentioned. This ensures direct communication with Nike customers. Nike’s audience feels heard and valued, further solidifying its relationship with its customers.

Source - Twitter

Affiliate marketing by influencers

Nike developed an affiliate marketing program through which influencers can earn commission by promoting the line of products Nike sells. This enables the brand to earn mentions across various social media channels in the form of product unboxing, reviews, or use case videos. Nike reaps the benefits of influencer marketing without spending extra costs on advertisements.

Nike’s Email marketing strategies

Email marketing is at the core of the Nike marketing strategy. Nike sends 3 - 4 emails every week to its customers to keep them engaged and eager for more.

The emails are automated responses to various touchpoints like signing up, leaving reviews, successful purchases, product delivery, and newsletters. Their email marketing strategy enables them to be in direct contact with their target consumers and stay consistently connected.

4. Ensuring a simple, fun, and hassle-free online shopping experience

Nike ensures a smooth user experience for online shopping through its strategic eCommerce marketing strategy

Nike website theme - bold, vibrant, and youthful

Nike uses youthful, fearless, bold, and athletic pictures on its website to align with its brand image. Nike positions itself as a sports brand that is unique, youthful, and vibrant.

Source - Nike website

The detailed product filtering process

Customers can filter products on the basis of type, gender, price, colour, brand, sport, athletes, weather, and collaborator. This detailed filtering helps customers to find exactly what they want, fast!

Product recommendations

Nike's website recommends relevant products to the product the user is viewing. This makes the buying process easy, quick, and effortless for the buyer.

Nike membership

Nike membership provides members exclusive products, Nike by you customization, and special offers to its members.

5. High-quality, unique and innovative products

Nike puts its customers first. It collects data on its target customer behavior to optimize its products and services to meet its needs.

Nike uses advanced and innovative technology for constant improvement in its products.

One of the most innovative Nike products is HyperAdapt 1.0. A Shoe with adaptive lacing technology that laces itself when you put your heel in.

Source - Amazon Website

Noteworthy Nike Marketing Campaigns

Nike’s creative advertisements are at the centre of the Nike marketing strategy. They deliver impactful messages that stay with the viewer long after seeing them. Nike is well known for its campaign ‘Just Do It’ which encourages people to go after their dreams and just do it! 

Ten of Nike’s most noteworthy advertising campaigns:

I am not a role model - Charles Barkley, 1993

Nike’s controversial ad sparked an uproar about whether   athletes   should be looked at as role models.

Nike "I Am Not a Role Model" commercial w/Charles Barkley - 1993

Hello World - Tiger Woods, 1996

This advertisement introduced Woods to the world when he was just starting his career in golf. Nike claimed Woods will be influential in the future, and its predictions came true.

Failure - Michael Jordan, 1997

In this Nike ad, Michael Jordan talks about his failures. This is a retrospective ad on his Basketball career.

Love me or hate me - Kobe Bryant, 2006

This ad was crucial because it was Nike’s first ad with Kobe Bryant after he was faced with sexual misconduct allegations. While others didn’t want anything to do with him, Nike stood their ground and supported him.

I feel pretty - Maria Sharapova, 2006

This ad was aimed at eliminating the “Pretty Girl” label Maria was given despite taking the tennis world by storm.

No excuses - Matt Scott, 2007

Matt Scott, an American wheelchair basketball player, points out excuses people use to not do something in this powerful ad.

Bottled Courage - Olympics, 2008

This Nike ad’s message is that the courage you are seeking on the outside is already within you.

Equality - 2017

Nike aimed at fighting the prejudice and discrimination against Black people with this ad.

What are girls made of? - 2017

This stunning Nike ad starts with the girl stating the general stereotypes about girls and then goes on to share that girls are made of iron, resilience, dreams, and dedication.

One day we won’t need this day - 2020 

On International Women's Day in 2020, Nike honoured women’s achievements by featuring women athletes in its ad, hoping that someday we won’t need a day to celebrate women.

Key takeaways from the Nike Marketing strategy for entrepreneurs 

Nike’s marketing strategy is a gold mine to learn from and grow your brand. These are the key takeaways you must apply to your brand to see exponential growth.

Identify what your target customers want from you

Nike identified its target customer’s need to become fit. It smartly positions itself as a brand that helps its customers reach their fitness and sports goals.

Identify your target customer’s problems, pains, concerns, fears, and doubts and help them overcome them. You can build brand authority by answering your target customer’s most prominent concerns. Provide them value instead of boasting about your product and being salesy.

Instead of putting all your focus on product features and competitor strategy, identify what your customers want from you and give them that. 

Research the best medium to reach your customer

Determine your target customer, know where they hang out and how best you can reach them. 

Don’t be on a platform just because everyone else is. If your target audience is below 25, they will be hanging out on Instagram way more than on Facebook. If you are on Facebook instead of Instagram, then you are doing it wrong. Create content with your audience in mind and share them on the right platform at the right time.

Bonus tip: Provide consistent value to stay on the top of your target audience’s mind.

Create customer-centric content

Whatever form of content you create - blog, social media posts, videos, white papers, they should all be customer-centric. That is, they must provide the best content to solve your customer’s problems.

If you provide high-quality content, then you’ll be seen as a market leader. Your content will be widely shared and spread.

The biggest key takeaway from the Nike marketing strategy is that your customer must be your hero and included in your brand image . Everything you create and share must be done keeping them in mind. If you're building a retail product, we would also recommend you read our marketing case study on Jockey which also uses similar product-focused marketing tricks.

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Just Do It Right: Analyzing Nike’s Timeless Marketing Strategies

Just Do It Right: Analyzing Nike’s Timeless Marketing Strategies 9 min read

In the dynamic realm of sports and fashion, there exists a legendary brand that has left an unparalleled mark on the world – Nike. With its iconic “Swoosh” logo, Nike has become an emblem of passion, determination, and unrivaled athletic performance. For decades, this sportswear giant has been at the forefront of innovation, crafting top-notch products that not only elevate athletes’ abilities but also empower individuals from all walks of life.

Nike’s journey began in 1964, founded by Bill Bowerman and Phil Knight as “ Blue Ribbon Sports. ” From its humble origins as a distributor of Japanese-made running shoes, the brand swiftly evolved, adopting the name “Nike” in 1971, inspired by the Greek goddess of victory. Since then, Nike has been conquering the sports industry with its revolutionary designs, setting new standards in performance, comfort, and style.

What sets Nike apart is not just its cutting-edge products but also its unparalleled marketing prowess. The brand’s powerful ad campaigns and emotional storytelling have stirred hearts, inspiring people to overcome challenges and pursue greatness. The famous “Just Do It” slogan, launched in 1988, has become a universal call to action, encouraging us all to push beyond our limits and achieve our dreams.

As a beacon of innovation, Nike continually raises the bar, introducing groundbreaking technologies like Air Max, Zoom, and Flyknit. The brand’s unwavering commitment to excellence has made it the go-to choice for professional athletes and fitness enthusiasts around the globe.

Beyond its athletic achievements, Nike has deeply immersed itself in social causes, championing diversity, inclusion, and environmental sustainability. By partnering with influential figures, sports stars, and community initiatives, Nike demonstrates a genuine commitment to making a positive impact on the world.

Today, with a massive global following of athletes, celebrities, and loyal fans, Nike’s influence extends far beyond the sports arena. It has become a cultural icon, shaping trends and setting the stage for the future of sportswear.

Table of Contents

Marketing Strategies of Nike

Nike has become synonymous with innovation, athleticism, and cutting-edge designs. Its unparalleled success is not just a result of producing quality products; rather, it’s the outcome of meticulous marketing strategies that have captured the hearts and minds of consumers worldwide. Let’s delve into the key marketing strategies that have propelled Nike to the forefront of the sportswear industry.

Branding and Logo

Nike’s iconic “Swoosh” logo is one of the most recognizable symbols globally. Designed by Carolyn Davidson in 1971, the Swoosh embodies motion and speed, aligning perfectly with the brand’s essence. Nike’s consistent use of the logo across all its products, marketing campaigns, and advertising has helped establish a strong brand identity, fostering trust and loyalty among consumers.

Since day one, Phil Knight knew he wanted Nike to stand for something bigger than just a mere shoe company, aiming to make his brand synonymous with the ideals of Greek goddess of victory – “Victory” or “Nike”. He found success with his dream when Nike adopted its name after the Roman variant term for her. It now serves not simply as the moniker for a sportswear conglomerate but also means triumph embodied in the emblem itself, a slender representation of wingtips set amidst a bold shield with a tick on top that is meant to convey quickness above anything else in life whether personal or professional aspirations.

A common way to abbreviate the word would be the use of ‘swoosh’ to represent any instance describing motion similar to birds gliding through air currents. If there is a time you associate with victory personified best by the speedy wings of an insect or avian friend instead think of Nike first.

Emphasis on Athlete Endorsements

Nike places a significant focus on collaborating with high-profile athletes, such as Cristiano Ronaldo, LeBron James, and Serena Williams, who act as global ambassadors for their products. These top-tier athletes work closely with the brand on various creative projects, advertising campaigns, and charitable initiatives, enhancing Nike’s visibility to the public. Furthermore, the endorsement partnerships extend beyond the realm of athletics into areas like music and fashion, with notable artists like Pharrell Williams also joining forces with Nike.

By aligning themselves with influential figures known for pushing boundaries and inspiring people worldwide, Nike aims to foster a shared vision of the future in sports and pop culture. This approach leaves a lasting impact through powerful imagery, showcased globally. Captivating visuals portray remarkable plays on courts, fields, and tracks, while renowned photographers like Brent Salcido and Todd Rosiak capture defining moments in athletes’ careers. Such photography encapsulates the magic of Nike’s moments, evoking a desire for their apparel and equipment.

Nike offers a comprehensive range of products, from head to toe, as well as specialized footwear and equipment designed for various activities. Each design reflects significant moments in sports, connecting fans to their favorite sports on deeper levels. With unwavering commitment, Nike proudly stands behind all their endeavors, crafting vibrant content that highlights the achievements of legendary athletes, witnessed by billions of fans across the globe.

In every ad campaign, commercial clip, photo session, or promotional effort, Nike showcases its dedication through a wide array of world-class athletes who collectively inspire generations worldwide.

Just Do It Campaign

“ Just Do It “ campaign remains one of Nike’s most memorable marketing efforts. The slogan, created by ad agency Wieden+Kennedy , goes beyond promoting products. Instead, it aims to inspire and empower individuals to embrace their inner champions, take risks, and pursue their dreams – all while wearing Nike gear. This message of empowerment has resonated deeply with consumers, forging an emotional connection between them and the brand.

Nike’s iconic “Just Do It” campaign has a rich history dating back to 1988, showcasing multiple versions featuring renowned athletes like Maria Sharapova, Dwyane Wade, Kevin Durant, and many others. Each iteration tells compelling stories that emphasize the strength of human determination, urging individuals to persevere despite challenges. Notably, one rendition stars Colin Kaepernick, who returned to football after a hiatus marked by kneeling during the national anthem to protest social inequality issues.

Every chapter of this campaign features famous figures embarking on new ventures, serving as a reminder to viewers that they, too, possess capabilities akin to their admired heroes. The slogan has continued to evolve annually, maintaining its relevance by staying in tune with societal pulse and addressing current events through fresh and courageous perspectives—all wrapped up succinctly within those four powerful words: Just Do It.

Emotional Advertising

Nike advertisements are renowned for their heavy emphasis on inspiration and emotions, setting them apart from numerous other brands. Rather than directly promoting their products, Nike delivers a compelling message through impactful storylines.

This mastery of storytelling has been a defining characteristic of Nike’s marketing for years. Each advertisement evokes deep emotions, creating a desire that can only be fulfilled through the experience of using Nike products.

Campaigns like “ Find your greatness ” and “ Dream Crazier “ exemplify Nike’s approach. They challenge self-limiting beliefs imposed by society and encourage individuals to overcome obstacles. While others might say, “Can’t do it,” Nike’s resounding response is, “Just do it.”

Emotional branding forms the foundation of Nike’s marketing strategy, cleverly employing storytelling to inspire people to conquer their fears and take action, all while embracing Nike products.

A prime illustration of this strategy is the 2017 commercial titled “ What are girls made of? “ released on YouTube. The ad features a young girl singing on stage, initially conforming to stereotypical notions of what girls are made of, such as flowers, marmalades, and gossip. However, she breaks free from these conventions, boldly asserting that girls are made of power, punches, battle, pain, and anything they aspire to be. This empowering narrative exemplifies Nike’s commitment to using storytelling to inspire and uplift its audience.

Digital Marketing and Social Media

Nike excels not only in delivering consistent messaging through commercials and campaigns but also stands out as an exceptional social media brand. Boasting an impressive following of over 302 million on Instagram and 9.8 million on Twitter, Nike has cultivated an engaged audience with a unified voice and active participation across various platforms.

One of Nike’s strengths on social media lies in leveraging user-generated content (UGC ). UGC refers to content created by consumers and brand followers to express their opinions or feelings about the products or the brand itself. Nike frequently shares user-generated content on their profiles as part of their campaigns.

For instance, their “ Better for it ” campaign, aimed at empowering women, encouraged them to share their health and fitness goals using the hashtag #betterforit . This campaign featured a blend of stories from female ambassadors and customers worldwide, which Nike proudly shared across their platforms. The overarching theme was to motivate women to embrace new challenges, face them with confidence, and prioritize their physical well-being.

Moreover, Nike actively participates in customer conversations on social media . They understand the importance of listening to their customers, and they do so with genuine sincerity through their social media profiles. Nike engages with customers who mention the brand on Twitter and actively initiates conversations with them.

This customer-centric approach is integral to Nike’s brand philosophy, as it helps them establish authentic connections with their consumers and gather valuable feedback. By actively listening to their audience on social media, Nike gains insights that inform the creation of targeted campaigns and products, shaped directly by the conversations they have with their customers.

Sponsorships and Event Marketing

Nike’s strong bond with top-level athletes and its participation in various Olympic Games have earned it a reputation as a beloved brand among sports fans. They have built deep connections with legends from major leagues like NBA, NFL, and MLS, becoming household names among loyal followers who eagerly anticipate thrilling matchups each week.

In addition to star players, Nike’s influence extends to coaches, many of whom are former or current star athletes themselves. They bring their professional experience and winning leadership styles to mentor future prodigies, creating a continuous cycle of success among Nike’s brand ambassadors for generations to come.

Nike’s expansion into soccer, especially in Europe, is noteworthy due to the sport’s immense popularity and large fanbases. This move complements their existing support for American basketball and soccer teams, allowing them to reach an even broader range of consumers with similar interests and values.

Moreover, Nike’s annual “ NBA All-Star “ game tradition showcases league stars competing against each other in specially designed uniforms, which are cleverly merchandised for fans to purchase nationwide. This unique blending of branded artistry and competitive spirit unites players from different cultures, highlighting the unifying nature of sports worldwide.

Nike’s unrivaled success in the sportswear industry can be attributed to its mastery of marketing strategies that go beyond product promotion. By leveraging emotional connections, powerful branding, and innovative storytelling, Nike has transformed itself into more than just a brand; it has become a cultural icon. Through the combination of athlete endorsements, impactful advertising, and a strong digital presence, Nike has secured its position as a global leader, inspiring athletes and non-athletes alike to “Just Do It” and embrace the spirit of excellence and achievement.

Also Read: Unveiling Disney Marketing Strategies and Marketing Mix

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Nike Marketing Strategy: The Case Study (Just Do It)

Nike is a popular and leading shoe brand serving its customers for around more than 3 decades has an amazing story from the past. Here in this article, we will discuss the marketing strategy and a detailed case study of the popular shoe brand Nike.

Table of Contents

Nike Just do it: a hymn to daily challenges

More than forty years have passed since the first shoes with the famous mustache appeared on the market, but Nike’s success does not stop. The Oregon company continues to lead its competitors with annual sales of close to $30 billion and growth of 10% over the past five years. The brand is unstoppable, just as customers want it to be unstoppable by wearing their shoes during sports. ‘ Just do it: Nike’s motto has been the same for almost three decades, and it will remain so for a long time to come.

It perfectly represents not only Nike’s consumer community but also the company itself, simply and quickly. By the way, recently it turned out that this slogan was proposed by advertiser Dan Wieden , who was struck by the last words of a death row inmate in Utah. “Let’s do it,” 

In a somewhat grotesque sense, the man had accepted his latest challenge. It was a short step from here to the famous ‘Just do it: The goal of Nike’s marketing strategy is, in fact, to make its products real allies in their consumers’ daily fitness struggles .

The principal was running and waffle

The way they came to market strongly and positively influenced Nike’s subsequent marketing strategy. The landmark, odd to say, was a waffle maker.

It all started when University of Oregon coach Bill Bowerman founded Blue Ribbon Sports with his athlete (Philip Knight). In addition to training some of the best American athletes and trading sneakers, Bill also developed an interest in running, a practice that was unpopular at the time.

He examines, he observes, he proposes: in 1966, together with a cardiologist, he publishes the book Jogging, which is today seen as the launch pad of the running craze that swept the United States in the 1970s.

The importance of creativity (and storytelling)

Meanwhile, relations with Onitsuka, the manufacturer of the Tigers, begin to deteriorate: Bill is convinced that thanks to his running knowledge, he can do better and design and manufacture better, lighter running shoes. to guarantee athletes the highest performance. And at this point, in the early seventies, Blue Ribbon Sports changed its name to Nike ( referring to the mythological winged personification of victory ): The company, previously a simple sneaker distributor, has thus become a manufacturing company.

History tells us that the first soles designed by Bill were made through his wife’s waffle maker: Nike’s marketing strategy does not fail to evoke this humble yet brilliant origin at times. They didn’t eat waffles at Bill’s house anymore for several months, but that little sacrifice was definitely worth the candle.

Today, his company is actually worth $71 billion

$19.7 billion brand.

Nike Moon Shoes , the first product released under the umbrella of Nike , were developed from a handmade model printed with a waffle maker . Compared to current offerings, the simplicity of these shoes disarms: however, what will be the spirit of the company is already in this first running product, for which the famous ‘mustache’ was also created. we know today.

The creator of the symbol was a design student with a salary of $35 . It’s interesting and shocking to note that today this brand is worth $10.7 billion , and without it and under another name, the company’s value would drop from its current $71 billion to $52 billion . long on the value of a good designer in the birth of a business.

Nike’s marketing strategy before marketing

Nike running shoes hit the market at the very beginning of the running era, which Bill Bowerman’s book initiated and caused, at least in part. Was it a coincidence or was it the first bold move in Nike’s successful marketing strategy? Neither, or rather a bit of both.

What we need to understand is that Bowerman did not publish this book, among other things, to sell his product, which was conceived and brought to market only years later.

No: He wrote that brochure because he really wanted to promote running and its health benefits. Of course, this wasn’t a very witty snippet of Nike’s hypothetical, newborn, or even early marketing strategy, but it could have been, nonetheless, especially given the results it brought.

By Michael Jordan and the Beatles

However, from then on, each Nike marketing strategy was deliberately and rationally designed: as early as 1973, for example, the company signed its first sponsorship contract with a tennis star, Ilie Nastase . Since then, the faces of athletes that Nike has incorporated into its products are innumerable.

First of all, we all know Michael Jordan: In 1984 the most famous basketball player became the brand’s flagship man, sponsored by ‘ Air Jordan ‘, a line of apparel and footwear for basketball that he still bills to the company. with $2 billion every year.

Air Jordan’s first promotional release

Nike even managed to use a Beatles song for a television commercial on the occasion of the 1987 Air Max release to give more power to its marketing campaign : no one from Liverpool had ever managed to brag about a song by the band. commercial. The impact of this ad was enormous: imagine the Air Max line still being produced. To date, there are more than 40 models.

Focus on customers also through social media

Jordan, Ronaldo, Ibrahimovic, McIlroy: Over the years there have been many prestige faces to Nike’s marketing strategies, as mentioned, but the core message has never changed. Even better: from the seventies to the present, the brand’s voice and identity have remained true to themselves, always putting consumers’ needs before their products.

The aesthetics of communication have changed, and the media to convey their message to has multiplied, but the brand has never betrayed itself or its customers: take a look at the official Nike pages on the social network to understand this. The way the company interfaces with Facebook or Instagram shows that its presence on those platforms isn’t driven by new and shiny business goals: no, Nike is on Instagram because their customers are there too.

And communication on these pages is not limited to an aseptic commercia l offer, it is far from it: each post is designed and created to convey something of value to the user-consumer. So, in the spirit of the company, Nike’s social updates are mostly motivational messages for their athletes – yes, Nike’s philosophy is that anyone with a body can be an athlete too. That’s why the focus of corporate branding remains on helping clients do what they love to do best, whether it’s running, playing basketball, soccer, or tennis, anytime and in any situation.

Beyond shoes: technology to be closer to the consumer

Athletes first, shoes second: this is the mantra of Nike’s marketing strategies , and it was this thinking that prompted the company to launch Nike, the first mass-produced high-tech product , in 2006. + iPod Sports Kit. It was a risky move designed to set the company firmly apart from its competitors: Once again, and more than ever in digital devices, the focus was on athletes rather than shoes. The kit allowed to measure the distance and speed of the race.

Oddly enough , yes, the product was Nike in every way, but everything was actually made by the iPod. Nike, on the other hand, was content to sell a chip to have ideas and put them in shoes, and a device for wireless connectivity.

In short, in this case, the partnership with Apple can be considered the best possible partnership. Over time, Nike+ devices have improved upgrade after upgrade, giving up first the iPod and then the chip: in 2010, everything was replaced by an iPhone ap p, and more than 6 million people are connected to a virtual community where they can analyze and share their sports. achievements.

In this way, as a complement, Nike had the opportunity to get closer to its customers, examine them closely, and communicate with them frequently. This technological lea p, which established a permanent relationship with the consumer, also made it possible to reduce advertising costs by 40% without compromising sales figures.

Nike’s goal

The final piece of Nike’s marketing strategy for a phased approach to the customer is the FuelBand bracelet , which calculates energy, and therefore – approximately – calories burned throughout the day. To make the data collected by the bracelet more reliable, Nike has created an online platform where customers can compare their energy consumption. Therefore, the athlete is in the center, the product is on the side, and the brand is always ready to motivate its consumers/athletes more.

This long-term strategy is explained above all by looking at the origins of the brand: it was born for running, not for team sports. That’s why Nike’s goal is the lone and even somewhat unruly runner who at times runs aggressively to overcome their physical and psychological limitations. The effectivenes s of this message was so effective that it persisted even as these lone athletes entered a community fueled by Nike through social media , which continues to differentiate the brand from its competitors.

Conclusion: selling shoes without selling shoes

That’s why the history of Nike’s marketing strategy teaches that in order to properly launch a product, it is necessary first and foremost to understan d what consumers need.

Once their desires are understood, a marketing campaign can be created through their products that can provide all possible solutions. For example, Nike realized that people needed a new way to stay fit, not shoes, so they offered to help them achieve this by selling shoes.

In addition, Nike’s marketing strategies teach that every consumer communication act of a company must create value, especially over the web: if you’re not solving problems, not providing real answers if you’re not helping your business. to improve the daily lives of viewers, then you inevitably have the wrong approach.

Marketing isn’t just about selling your product, or at least on the surface: Bill Bowerman didn’t start an empire by selling shoes, but by selling the art of running to customers who responded by purchasing billions of Nike Moon Shoes and by Air Max .

Other Related reads:

Electronics Giant Apple (Think different) Marketing Strategy

Puma Marketing Strategy Between Competition & Sponsorship

Red Bull Marketing Strategy: The Case Study

A go through into the marketing strategy of Starbucks

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Nike Branding Strategy and Marketing Case Study

Analysis and examples of nike’s identity, positioning, key messages, tone of voice, brand archetypes, customer benefits, competitors, and marketing content..

Back To The Branding Strategies Homepage

Brand Overview

Business type.

Physical Products

https://www.nike.com

Target Customer

Fashionable Athletic Wear Consumers

Primary Need ( Job To Be Done )

Dress in athletic clothing that balances high performance and style

Brand Visual Identity & Content

Primary brand colors, brand typefaces.

• Nike Futura
• Helvetica Neue

Hero Content

Hero Content Type

Content features people, brand messaging, key messages, benefit or feature focus, tone of voice, brand archetypes.

( Learn More About Brand Archetypes )

Everyperson

Brand Positioning ( Elements of Value )

( Learn More About The Elements of Value )

Aspirational

Self-Actualization

Design & Aesthetics

Brand Benefits

Confidence that clothing has been developed with deep expertise in athletics

Access to a blend of modern and throwback design aesthetics that are always fashionable

Feeling of self-actualization through a brand that inspires action and empowerment

Competition

Key competitors.

Adidas , Under Armour, Lululemon, New Balance, Puma, Converse, Allbirds

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Nike Marketing Case Study: How Do They Do It?

• Written by 440 Industries
• Experiential Branding , Fashion Business , Fashion Merchandise
• September 23, 2021

Nike boasts of 1.15K stores in 170 countries and roughly 76.7k employees spread out across the globe. Better still, it scores some serious bragging points with annual revenue of 39.12 Billion USD. With a compound annual growth rate of 11% between 2011 and 2015, projections show that Nike will expand its revenue by 30,601 million over the next five years. The secret behind the impressive growth is the brand’s intelligent marketing approaches. Stick around to learn more about the genius Nike marketing strategy. 

When it comes to footwear brands, Nike is a powerhouse that commands global respect. The brand’s slogan “Just do it” sets the standards for the company’s operations. Furthermore, the swoosh logo is a familiar scene on the feet of renowned athletes. Nike, a brand founded in 1967, was first known for its basketball shoes. However,  it has expanded its product line over the years. Today, you can find Nike sports equipment, eyewear, digital devices , clothing, apparel, and socks, among other items. Generally speaking, Nike is at the peak of the game in the apparel industry .

Quick Facts About Nike 

Before we check out the Nike marketing strategy, let’s first go through the impressive stats of the brand. Hopefully, this will help you understand why Nike is creating so much buzz and has remained the market’s dominant player despite having fierce competitors.

• Nike was founded in 1967 by Phil Knight and Bill Bowerman
• The name “Nike” stands for the Greek goddess (also known as the Winged Goddess) of strength, speed, and victory.
• Nikes swoosh logo resembles the wing of the goddess
• The brand enjoys a 27.4% market share in the athletic apparel scope in North America
• Nike has for decades enjoyed an astounding 96% of the market share for basketball footwear (this has changed slightly in recent years)
• Compared to other athlete footwear brands, including Puma and Adidas, Nike still rules in terms of overall annual sales
• In the fiscal year 2019, Nike’s Air Jordan sneakers generated a whopping $3.14 billion
• Nike’s website enjoys over 60M users monthly

Nike Marketing Strategy; Discover the Secret?

Even with a slow global economy, Nike’s sales keep increasing with each passing year. What’s the brand’s recipe for success?

Let’s diver deeper to understand the Nike marketing strategy:

Find Your Vision and Mission

Bill Bowerman, one of Nike’s founders, was a track and field coach. Naturally, he worked closely with athletes and understood most of the setbacks of having improper sporting footwear. Hence, he envisioned creating shoes that allowed athletes to move faster and soar higher in their profession. While Bill and Phil would have named their company whatever name that popped in their minds, they took a deep look into their vision. This allowed them to find a brand name and mission that told their story.

Generally, the brand’s aim, right from the beginning, was to make sportswear for sportspersons. As such, they wanted their brand name, mission, and vision to make people think about comfortable, lightweight, supportive, and durable footwear. Essentially, even the meaning of their brand name and logo tell a story and give consumers the illusion of training their bodies and minds. Nike’s “just do it” slogan sets the athlete’s mind to focus on overcoming all challenges while on the field.

Ensure Proper Product Positioning

The instant someone mentions “Nike,” the first thing that pops in your mind is athletic footwear. Well, this is all thanks to the genius Nike marketing strategy of ensuring proper product positioning. According to Bill, sticking to a specific niche ensures people can quickly relate to the brand and differentiate it from the competition. Don’t get me wrong; product positioning is easier said than done. It took implementing a multi-facet marketing strategy to achieve the correct product positioning for Nike.

Here are the four fundamental elements that went into the strategy:

• The use of social media platforms and channels to connect the targeted audience
• Multiple collaborations with athlete celebrities like Rafael Nadal, Tiger Woods , and Serena Williams
• Consistent brand involvement in consumer’s conversations on social media platforms
• Ongoing engagement of social media influencers to help promote the brand

Keep the Online Purchasing Process Dead Simple

According to Nike’s CEO Jon Donahoe, digital marketing is the future of retail. If you want to increase your sales on both land-based and e-commerce stores, it is imperative to invest in digital marketing. Moreover, make sure your online sales funnels are dead simple to follow. Nike’s online sales in 2020, right before the global pandemic, stood at over 50% of the brand’s overall revenue. The crisis has surged this percentage significantly. Hence, there is a greater need for entrepreneurs to spruce up their e-commerce marketing tactics.

Here are six tactics in the Nike marketing strategy that help the company to offer a smooth online shopping experience:

Professional Website Design

If you are reading this, then the chances are that you have peeped through Nike’s website. It has top-quality imagery for stunning visuals. Each page on the website contains vibrant pictures that make the athlete’s lifestyle seem incredibly appealing. Moreover, the brand’s marketing strategy involves leaving website visitors feeling that Nike’s products can keep them healthy and youthful.

Nike Marketing Strategy; Product Analytics

Nike thrives on making its consumers a priority. Customers dictate new product designs and marketing strategies based on their shopping behavior and reviews. For instance, through using practices such as trend analysis, Nike can compare business data over a specified time and note any patterns, trends, or consistent results. Consequently, the brand can develop a marketing strategy that responds to these trends and its business objectives.

Intuitive Product Recommendations

Through intuitive product recommendations, Nike can give its website visitors the best online buying experience. This is a big part of any e-commerce marketing strategy . Essentially, each picture you click recommends other related products automatically. This makes it dead simple for consumers to choose the right products to buy from a whole array of merchandise that suits their style and preferences.

Email Marketing

Even in the Nike marketing strategy, email marketing reigns supreme. By encouraging customers to sign up for your email list, you also benefit from a means to do follow-ups. Furthermore, email marketing simplifies the process of keeping your fan base engaged and in the know of upcoming merchandise.

Nike Marketing Strategy; Product Filtering

Another Nike marketing strategy that is worth mentioning is how the brand filters products. Simply put, consumers enjoy an easy means of sorting out products based on their needs. For instance, you can get a whole list of shoes based on aspects such as technology, material, color, size, model, and more. By including a product filtering feature in your e-commerce website, you can ensure visitors stay on your site for more extended periods. Ultimately, this increases their likelihood of purchasing something they fancy.

Customer Loyalty Reward Programs

It’s in human nature to feel attached to relationships where they feel valued. As such, a loyalty program helps to encourage buyers to remain loyal to the brand and make more purchases. Nike’s customer loyalty program had over 100 million subscribers in 2017. These subscribers made nearly three times more purchases than guest buyers on the brand’s website. Loyal fans of the brand were willing to spend a little more just to receive exclusive benefits such as priority access to exclusive products or early access to Nike sneaker launches.

Tips To Help You Implement the Nike Marketing Strategy into Your Business

You are probably wondering how you can implement the Nike marketing strategy into your business and help it thrive. Well, adding the above methods into your current marketing strategy is not easy, but it’s doable.

If you are eager to “just do it,” here are three tips that may get you started:

Nike Marketing Strategy; Identify Your Audience

There is always someone out there browsing the internet in search of what you can offer. With proper brand positioning , that someone will find you with the hopes of getting particular concerns addressed. Consequently, the right content should make handling your targeted audience’s specific pain points and problems more manageable.

The Nike marketing strategy targets athletes and people seeking to adopt new lifestyles and get in shape. Consequently, the brand identified its audience and positioned itself as a company that can help them meet their fitness goals by providing the proper footwear.

Find Out the Best Means to Reach Your Brand Fans

Where does your targeted audience hang out? Are they often on social networks, or are they more active on email? How can your brand go where your targeted audience is? These are just some of the questions you must ask yourself. Once you have your answer, you can now decide on the most effective content distribution tactics.

Create Content Designed To Address Your Fans Needs

As you can tell from the Nike marketing strategy, there are more than a few clever ways of finding your brand fans. It could be through social media channels, blogs, video platforms, or emails, just to mention a few. Irrespective of where your fans are based, you must deliver the right content to grasp their attention.

Great content should:

• Entertain your audience
• Answer their questions
• Solve their problems

Just Do It!

There you have it, detailed information about the Nike marketing strategy. While this may seem like too much information to take in, it highlights the best marketing practices that could take your venture to the next level. The bottom line is that the best approach is to do more than just sell. Content is king , and the more it spreads, the better your chances of making top sales. You have to sell ideas, tell a touching story and ultimately gain a great and loyal following.

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Please note you do not have access to teaching notes, co‐creating value through customers' experiences: the nike case.

Strategy & Leadership

ISSN : 1087-8572

Article publication date: 5 September 2008

This case aims to demonstrate how leading firms are learning how to sustain competitive advantage by co‐creating experiences of value with customers.

Design/methodology/approach

The shoe company Nike provides a glimpse of the next “best practices” of value co‐creation with customers. By engaging with informed, connected, and networked customers around the globe, Nike has found their shared experiences to be a new source of value.

The paper finds that customers are now informed, connected, networked, and empowered on a scale as never before, thanks to search engines, engagement platforms, the growth of internet‐based interest groups, and widespread high‐bandwidth communication and social interaction technologies. Customers have learned how to use these new tools to make their opinions and ideas heard.

Practical implications

A few leading companies like Nike are involving customers in the value creation process by offering Internet sites where they can share their interactions and experiences. These range from customers' ideas about how to improve or customize products to their feelings when they use products.). For Nike, the learning from these interactions creates new strategic capital. The company can now learn directly from customers' direct input on their preferences. Nike can build relationships and trust with the Nike+ community and experiment with new offerings, all the while enhancing its brand.

Originality/value

The strategic opportunity for Nike is to build and promote the use of Internet engagement platforms through which the firm can build customer relationships on a scale and scope as never before. Effectively managing these new initiatives initially posed a new challenge for Nike, a traditionally product‐centric organization. Now their viewpoint is reversed. “In the past the product was the end point of the consumer experience. Now it is the starting point.”

• Value added
• Customer information
• Social interaction
• Consumer marketing
• Customization

Ramaswamy, V. (2008), "Co‐creating value through customers' experiences: the Nike case", Strategy & Leadership , Vol. 36 No. 5, pp. 9-14. https://doi.org/10.1108/10878570810902068

Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited

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Case Study: Nike & Colin Kaepernick “Just Do It” Campaign

Case Study: Nike’s 30th Anniversary “Just Do It Campaign” With Colin Kaepernick

Brian Urvater and Courtney Vandegrift 

Comm 473: PR Campaigns

Professor Renea Nichols

September 28, 2021

When Nike released the 30th anniversary “Just Do It” campaign, Nike’s brand leadership team members were taking a calculated risk. They knew full well how Kaepernick’s high profile protest might rub some of its consumer base the wrong way, yet they moved forward with it anyway In 2018, Nike launched a new ad campaign that was based on a strong political conflict capable of tearing apart the United States. The nation was polarized as a result of increased racism, police brutality, and social injustice. In the midst of an era labeled as the Black Lives Matter movement, where african americans felt oppressed and helpless due to the violent attacks against black communities across the country, Nike drew a great deal of attention with their new campaign strategy that showed support for black communities, athletes, and civil liberties proponents. The ad featured professional football player and civil rights activist Colin Kaepernick, best known for taking a knee during an NFL game’s national anthem to protest social injustice and police brutality. The advertisement image began with a quote that stated “Believe in something. Even if it means sacrificing everything.” Since Nike is a sports gear and apparel company, their products fit well into this campaign strategy because it highlights a celebrity athlete that is known worldwide. Their main objectives were to bring headline attention to the campaign by highlighting athletes that were pushing boundaries in society in some way.

This case study’s purpose is to research the public relations methods used in the 30th anniversary of the “Just Do It” Nike social media campaign featuring prominent NFL figure Colin Kaepernick. With input from former NFL player and founder of Go Big Recruiting Ross Tucker, this paper reflects the communications strategies used by Nike’s PR department to send a specific message to their target audience and influence their perception and brand loyalty. By taking a stand for a controversial social figure during a time of political disarray, Nike took a risk to convey their brand as a platform that brings attention to important social and political matters. Since the launch of the campaign in 2018, Nike has continued to represent themselves as an organization that supports local communities and athletes. By bringing more thought to important social issues such as systemic racism and police brutality, their objective is to use sports as a platform to accelerate social movements and reflect their brand as an organization in favor of activism and reform. Their message to consumers is strong and impactful, showing consumers that it is more than just sports, but also about making the world a better place by giving athletes a platform to discuss social problems and encouraging young athletes to take a stand for their own values and beliefs.

Communication Plan

Situation Analysis:

Nike is a retail organization that provides high quality athletic products that are used by professional sports organizations and aspiring athletes around the world. The light weight material of their clothing and the superiority of their sports products have made Nike the most prominent sports brand in the world. The company has partnerships with several professional leagues including NCAA, NBA, MLB, and NFL. In terms of distributing products, Nike has over 1,000 factories and over a million employees, which makes for a fast, efficient distribution process that translates to major financial success. The company brands itself well with a globally recognizable swoosh logo and a short, confident slogan known as “Just Do It,” which represents their mission to inspire athletes to pursue their wildest hopes and dreams. Nike not only uses famous athletes to endorse their products and engage with their sports-devoted audience, but the organization also pays close attention to social trends and issues that are impacting the United States. By using social responsibility to advance their agenda, the organization increases their popularity and widespread attention, and ultimately influences brand loyalty among consumers. Additionally, the use of controversial social justice campaigns has proven to be beneficial to Nike’s reputation of goodwill because it can lead to national headlines and widespread media attention that helps guide public opinion in the area of social awareness.

The organization depends on the United States market for revenue more than any other country. 40% of Nike’s revenue comes from North America, which leaves the company exposed to factors that can negatively impact the business. It presents a high risk when a company focuses on a single market because public relations and marketing campaigns can backfire if that specific market does not agree with the ideas presented by the organization’s campaign. Accordingly, this specific case study reviews a high risk social media tactic during a time of social dispute in the United States. With Nike’s growing competition, it is important for them to discover new strategies of engaging the public and grabbing the attention of their audience in which they simultaneously represent the values and beliefs of their brand.

In 2016, world renown San Francisco 49ers quarterback Colin Kaepernick took a stand against social injustice and police brutality by kneeling during the national anthem before a nationally televised game. This act led to public backlash from angry consumers over the idea that a high profile figure disrespected the U.S. flag in front of thousands of people. However, this performance of social activism came at a time of mass hysteria during BLM movements, where the nation was polarized due to increased rates of police cruelty and inequity among black communities. Young black athletes around the country were determined to fight for their civil rights and protect their liberties. In their pursuit to support athletes and black communities, Nike supported social justice activism by launching a social media campaign that focused on the controversial behavior of the NFL star. The organization’s goal was to convey the bigger picture of sports by incorporating the concept that athletics can be used as a platform to bring attention to important social and political issues. At the same time, Nike hoped to encourage consumers to follow their largest dreams and stand up for what they believe in. This multifaceted technique was a unique way of expressing the organization’s core standards and values. In a time of social dispute, Nike aimed to gain massive media attention through the campaign by developing a high risk social media strategy that would get people talking about sports and its relationship to real world issues.

Following his idea to kneel during the national anthem, an outbreak of disapproval for Colin Kaepernick surged throughout the nation. A poll during the 2016 season named Kaepernick the most disliked player in the league, with 37% of caucasians saying they “disliked him a lot,” and 42% of African Americans saying they “liked him a lot.” However, according to survey research conducted by YouGov to determine how Nike customers feel about Colin Kaepernick, 46% of responses revealed a positive outlook on the NFL star while 23% see him in a negative light. This reveals that a majority of Nike customers support social activism and the push for reform in the area of racial inequality and police cruelty. Therefore, by creating a social media campaign around Colin Kaepernick and social activism, Nike hoped to strategically reach their target audience and influence public opinion about their brand. However, other research states that 53% of Americans object to the idea of kneeling during the national anthem because they consider it to be disrespectful to the flag and the country as a whole. There was a high risk in launching a marketing campaign that was created from these statistics, but Nike is a company that thrives on taking risks with the public because they want their organization to be unique and stand out among others.

According to the Washington Post, the decision to use Colin Kaepernick as the main figure in their ad campaign was popular among young Americans. Cindy Boren from the Washington Post stated that “a Quinnipiac University poll showed voters approved of Nike’s decision to feature Kaepernick in its latest ad campaign, 49 percent to 37 percent.” The poll also determined that there was a large age gap among people who agreed and disagreed, “with those 18 to 34 approving of Nike’s decision by a 67-21 margin, while voters 65 and older disapproved of the decision, 46 to 39 percent.” Overall, the 30th anniversary of the “Just Do It” campaign was creative in the sense that it took a controversial social issue and turned it into something positive and innovative, in hopes that it would be beneficial to social movements, activist athletes, and eventually would influence product sales.

On the political side of the research that went into this campaign, there was a strong disconnect between opinions of whether kneeling during the national anthem was considered to be morally acceptable. According to a NY Post article, in a poll of 1,570 Americans, “Democrats strongly favored the right to protest, at 77%. Only 20% of Republicans, and 20% of self-described Trump voters, said yes. Along racial lines, 77% of blacks, 57% of Hispanics and 47% of whites answered positively.”

Nike also collected data about the overall reactions of consumers to brand’s voices about social issues and controversial topics. In a poll conducted by Sprout Social, 1,000 American consumers were asked if “people want brands to take stands on important issues.” 66% of consumers responded that “it is important for brands to take public stands on social and political issues.” This information was important to Nike’s decision to launch this campaign because it conveys what consumers are looking for in a brand. Many consumers, especially younger people, look for brands that they can personally connect with from an ethical standpoint. Furthermore, a 2017 survey from Edelman found that “the majority of millennials (60%) are belief-driven buyers” that trust a company based on the company’s brand identity and social/political beliefs. 53% of Millennials pay attention to how companies that they purchase goods and services from act with political and social matters. Moreover, 80% of teens, which is a huge target audience for Nike, support the Black Lives Matter movement. Looking at this research from an economic standpoint, younger generations are crucial for Nike to engage with through tactics such as these. According to a Forbes article by Jules Schroeder, “Millennials have $200 billion in buying power and Gen Z has $143 billion in direct buying power”, which is an area Nike wanted to take full advantage of with this campaign strategy. Nike’s decision to take a public stand on a social issue and promote Kaepernick in order to gather more attention and connect with their audience on a deeper level was a thoroughly researched public relations strategy. 

Nike aimed to create a strategic communications plan that highlighted social and political issues that were impacting athletes and communities around the country. More specifically, the campaign intended to support the revolution against social injustice in black communities due to implications of racism through police brutality and racial profiling. In order to accurately display their support for social movements occurring throughout the U.S., Nike centered their campaign strategy around Colin Kaepernick, whose decision to kneel during the national anthem to protest against racism and social injustice conveyed his will to sacrifice his career for the greater good. However, his actions on the field also sparked mass amounts of controversy throughout the country. 

One objective for this strategy was to raise awareness about an important issue. Nike describes themselves as an organization committed to addressing systematic racism and supporting local communities. They thrive on showing their support for social movements and using their platform to address underlying societal issues. By combining the sports world with the need to raise awareness about important topics, the campaign strategy targets a wide array of people. Not only did Nike desire to catch the eye of black communities, athletes, and sports fans by promoting a controversial social problem through a large, sport-based platform, but the organization also aimed to target millennials and Gen Z-ers in hopes of positive responses in a harsh political climate. Additionally, Nike planned to gain widespread media attention that would advertise the goodwill of the brand and appeal to younger, more prosocial generations. Additionally, the attention gathered from the campaign would boost brand loyalty and social media engagement. Although it involved high risk, the 30th anniversary of the “Just Do It” campaign was something that yielded extreme success.

Another objective included exemplifying the organization’s mission statement. As expressed by the founder of Kaye Media Partners Karen Mcfarlane, “Nike’s mission is to bring inspiration and innovation to every athlete in the world. Colin Kaepernick, through his advocacy, conviction, and talent on and off the field, exemplifies those values in the strongest of terms.” By launching a strategy that uses a prominent athlete who is known for social activism in the campaign, it will raise awareness for the issue and positively impact the social credibility of Nike. Additionally, by utilizing a notable person who gained national attention for sparking a controversial issue, Nike aimed to earn massive media attention that would engage their audience in order to promote the ethics and goodwill of the brand. This strategy brings attention to social concerns and connects the activism for these issues to Nike’s brand. Furthermore, this campaign tactic gives athletes a platform to speak out about their views on social issues, thereby impacting a large target audience of sports fans, young athletes, social activists, and black communities. Through this campaign strategy, Nike conveys that their organization stands by its athletes through political chaos and controversy, which sends a clear message about the brand’s identity to the target audience about what kind of company Nike intends to be known as. This communications plan proves that the company is principled and loyal to its publics, and is willing to fight for social justice despite the risks involved.

Execution: 

To execute this plan, Nike made the decision to partner with notable NFL quarterback Colin Kaepernick. The campaign, launched in Fall 2018, includes a close up image of Kaepernick with the quote, “Believe in something. Even if it means sacrificing everything,” across the picture. The famous Nike swoosh logo and slogan is printed on the bottom. This poster was distributed through social media platforms and on billboards. The campaign was first announced through Kaepernick’s social media accounts, which increased the amount of initial views and shares. In addition to social media shares, the image was also printed on billboards in prominent locations such as Times Square.

The poster is paired with a full advertisement called “Nike Dream Crazy” that features young and experienced athletes and encourages viewers to follow their dreams despite any roadblocks that may hinder their success. The narrator of the commercial says, “because calling a dream crazy is not an insult, it’s a compliment.” Not only does the ad stimulate viewers to push for their biggest goals, but it also addresses the idea that it’s bigger than sports; it’s about making a difference in society and the world. The ad expresses this message by featuring pro athletes such as Lebron James and Colin Kaepernick. A video of all star NBA player Lebron James speaking out at a rally is accompanied by the narrator saying “don’t become the best basketball player on the planet, be bigger than basketball.” This message encourages the audience to take a stand against social issues just as Lebron James and Colin Kaepernick have. 

The audience is able to see Nike as a company that protects social equity and works for the benefit of communities. The commercial tries to spread the message that sports are not just for entertainment, but they are a platform for spreading valuable messages and ideas that can positively impact society. Another theme is also presented in the commercial that reinforces the idea that people should work for their dreams no matter what barriers they have to break through. This message is presented with the stories of athletes like Shaquem Griffin, who plays in the NFL with only one hand, and Serena Williams, who grew up in Compton and later became one of the most talented athletes in the world. Overall, the creative aspect of this campaign sends two messages to publics: It’s bigger than sports, and anything is possible if you put your mind to it. As per PR and customer service expert Anna Cachares and digital marketing specialist Beth Kramer, “Nike released the Nike Dream Crazy ad featuring Kaepernick on YouTube, which has over 2.6 million views. It is worth noting that Nike launched these ads on social media, not on traditional channels, which suggests that they are targeting younger generations (Millennials and Gen Z).”

In addition to the graphic and advertisement that Nike launched in the fall of 2018, Nike also began selling merchandise that symbolizes Kaepernick’s impact. For the four year anniversary of Kaepernick taking a knee during the national anthem, Nike created an all black jersey with the number 7. The number 7 is representative of Kaepernick’s jersey when he took a  knee playing for the San Francisco 49ers.  “Through his continuous commitment, the number 7 jersey has become an iconic symbol for progress and positive change” (Nike). This jersey sold out on the Nike website. “True to each other.
 True to the movement.
 True to 7,” (Nike). Selling merchandise that goes along with the social activism campaign also adds to the execution of the overall strategy because it further emphasizes the brand’s dedication to their cause. Nike is able to make extra profit off the campaign’s theme by selling custom jerseys that symbolize working towards progressive social movements and change.

Analysis and Evaluation:

This case study introduces the idea that Nike’s PR department is willing to abide by a “high risk, high reward” policy. The fact that research showed a split between public opinion of the Colin Kaepernick crisis in relation to the Black Lives Matter movement conveys that Nike is a brand focused on supporting high profile figures that are willing to push for social reform. In Nike’s “Black Community Commitment” page on their website, they reference that addressing systematic racism and encouraging action and reform is a top priority of the company. The brand identity Nike creates through supporting a controversial figure’s social advocacy is  a great method of engaging their younger audience. Nike uses sports as a way to bring people together in unifying fashion to bring attention to important social issues and 

spark change. Their use of innovative social media strategies not only increases their reputation of being a brand of goodwill and ethics, but it also grabs massive amounts of attention from media and consumers. By using Colin Kaepernick as a main figure to promote social activism in the area of racism and police brutality, the organization was able to make national headlines and promote their brand as an inspiring, community-driven company that is focused on using sports to make a change in the world. Former NFL player and entrepreneur Ross Tucker agrees that it is a lot more common in recent years for athletes to have a cause and stand up for issues that are important to them, and brands are beginning to take advantage of this factor because large audiences are likely to be “receptive and supportive to that.” A large company like Nike is able to take risks with controversial issues to gain media attention because they have a wide array of publics. However, In Tucker’s case, he tends to stay neutral with political statements because he does not want to “turn off” one side of his audience as a result of conflicting viewpoints. With their big 

following, Nike has developed a strategy of using risky PR tactics to promote the goodwill of their brand, which is something that other smaller companies are unable to do in today’s political climate.

The poster image was successful in generating attention and presence on social media, and the video ad was successful in spreading important messages and influencing public opinion. According to Scharninghausen in the business wire press release, the single best thing about the ad as per 48% of viewers was the theme and message. In the first 24 hours of the campaign’s launch, Nike brought in $43 million worth of earned media, and their brand mentions increased 135% with over 2 million mentions (Cachares & Kramer).  In addition, “Advertisin g analytics company Ace Metrix says that the Nike Kaepernick ad is “less polarizing than social media suggests.” Just 13% of consumers reported that they were less likely to buy from Nike after viewing the Dream Crazy Kaepernick ad. This dropped to 10% among Millennials and 6% to Gen Z.” 

Overall, the 30th anniversary of the “Just Do It” campaign was created because it took a controversial social issue and turned it into something positive and innovative, in hopes that it would be beneficial to social movements, activist athletes, and eventually would influence product sales. In this case study, Nike proved that by supporting communities and athletes affected by social issues in the United States through unique social media marketing campaigns, and by tactically using prominent figures, target audiences can be successfully reached, ultimately having a positive impact on a brand’s social and economic success.

Current Information: ( https://about.nike.com/ )

The number 7 jersey being sold on the Nike website symbolizes the progress Kaepernick has contributed to the Black and Brown communities. This all black jersey is created and sold for the anniversary of Kaepernick’s impact.  The corporate website offers insight into Nike’s mission and goals. “Our mission is what drives us to do everything possible to expand human potential. We do that by creating groundbreaking sport innovations, by making our products more sustainable, by building a creative and diverse global team and by making a positive impact in communities where we live and work.” This current information ties into the case study topic because it provides information about Nike’s determination to make a difference in society by positively impacting communities in times of social despair. On the corporate website, there are four subcategories that describe the values of Nike as an organization, which ultimately support the campaign strategy for the 30th anniversary of the “Just Do It” slogan. The first category is “innovation,” where the company states that “to make big leaps, we take big risks,” which is true to the Coin Kaepernick issue because Nike supported an individual who was extremely controversial at the time for his activism for social justice. Next, the website refers to the team at Nike, where they describe their team of workers as “empowered, diverse, and inclusive,” ultimately representing the brand as a team that is united by sports. This is a feature that was represented in the Colin Kaepernick advertisement and currently persists as a main theme of Nike to encourage diversity and harmony despite cultural or racial backgrounds. Additionally, the website offers a look into “social and community impact,” where the company describes their belief that the power of sports can help change the world for the better. This concept was expressed with emphasis in the Kaepernick campaign, and is still a main theme of the organization that they continue to work towards today. Finally, Nike references “sustainable business innovation” on the corporate website to highlight a “sustainable future” in sports where athletes are able to thrive on a healthy, fair playing field and simultaneously use the power of team sport to improve social issues and positively impact the world. 

Current Impact:

Nike’s legacy from the 30th anniversary of the “Just Do It” campaign continues to live on and have an impact on society today. In a 2019 New York Times article titled “Colin Kaepernick ‘Dream Crazy’ Ad Wins Nike an Emmy,” Nike’s ad campaign conveys its creative nature as the advertisement was awarded an E mmy for being an outstanding and creative commercial. The idea of including a social aspect that relates to sports not only attracts young viewers and sports fans to the brand, but it also engages an audience of politically interested publics. People interested in politics and social activism now see Colin Kaepernick as the face of the NFL for his actions on the field, and they are more impacted by Nike for their brand values and support of a controversial athletic figure (Junge Welt, 2021).

The organization continues to support athletes that stand up for social movements and systematic racism, leading to a return of support from activist athletes. According to a 2021 Huffpost article, “longtime Collingwood sponsor Emirates condemned racism and said it was behind the club “proactively adopting changes as per the recommendations identified in their report.” In a statement.” As a result of media success with Colin Kaepernick and the will to work towards a better future for the world, Nike continues to use the same PR strategy to promote their brand and connect with their target audience that supports defending social movements. Nike expressed that the company st ood “against racism and discrimination in any form,” and that it believed “in the power of sport to create an equal playing field for all”. Current articles illustrate the idea that Nike’s media success in a harsh political climate during their 2018 campaign suggests that the same social media tactics can be effective in encouraging brand loyalty among consumers: “Since Nike is known for large-scale advocacy campaigns to drive social change through sport, most notably with US footballer Colin Kaepernick, one expert said the brand could see its partnership with Collingwood as an opportunity rather than a PR nightmare (Williams, 2021).” Their new campaign with Collingwood will accomplish the same goals because it has potential for controversy while also articulating the company’s focus on fixing social issues and resolving systematic racism around the world.

Nike also continues to push for the advancement of social movements by spending money on lobbying efforts. Years down the road, the company still pushes the idea of being viewed as a social activism organization by lobbying on topics such as physical education grants, taxes and climate change, as well as the “Uyghur Forced Labor Prevention Act.” Nike is an organization that has been heavily criticized in the past for their use of sweatshops and child labor in developing countries. “‘In the first three quarters of 2020, Nike spent $920,000 on in-house lobbying of Congress and other federal agencies,’” the New York Times reports” (Lowe 2020). In order to convey to the public that the company holds  good intentions and stands against unfair labor, they donate large sums of money to lobbying efforts. These issues have stemmed directly from the Kaepernick “Just Do It” campaign as Nike continues to adhere to the public by supporting social movements and the theme of making the world a better place.

Nike also continues to push their campaign with Kaepernick by c ommemorating anniversaries of his call to action with the kneeling protest. Four years after the social activism outbreak, Nike still pushes the campaign by selling special all black #7 Colin Kaepernick jerseys to increase profits and build off the highly su ccessful campaign. The company is able to continue their successful campaign by showing constant support for the activist athlete, commemorating him by holding special anniversaries that honor his stand against systemic racism and social issues related to the BLM movement. According to a recent article by Aaron Colen on Blaze Media, Kaepernick released a statement on social media about the bigger picture of sports and football, which is an idea that Nike forms around their brand through this campaign: “Four years ago, I took a knee to protest against systemic racism and social injustice,” Kaepernick wrote on social media. “It was that day that the number on my jersey would come to represent something greater than football, somethin g greater than me. Since then, the number 7 jersey has been a symbol for advancing the liberation and well-being of Black & Brown communities. Thank you for staying True.” People seem to resonate with the idea of buying Kaepernick apparel to support a social movement; “Nike released just two products related to Kaepernick, both of which were produced in seemingly low volumes and quickly sold out. They have been out of stock  for months, and consumers searching ‘Colin Kaepernick’ on Nike’s website are encouraged to sign up to be notified about ‘future Colin Kaepernick products,’” as per a NY Times article. Nike is able to profit off these continuous social media campaigns because the connection to Colin Kaepernick went viral online and had an emotional conne ction with many viewers. 

Despite all of the reactions from consumers, Nike did not put out any news releases for this campaign. The company communicated to their audiences and launched the cam paign primarily through social media and on billboards. On September 3, 2018 Colin Kaepernick posted a tweet of the Nike image he was featured i n. Nike retweeted this image and then launched the video advertisement a few days later. The only comment about the case came from Gino Fisanotti, North America’s vice president of brand for Nike. “We believe Colin is one of the most inspirational athletes of this generation, who has leveraged the power of sport to help move the world forward,” (Nike features NFL’s Kaepernick among athletes in ‘Just Do It’ campaign). Nike reported to ESPN about the partnership, and that business was the first one to spread the news.

Although Nike did not make many public statements, multiple media agencies and businesses made a comment about the campaign. The National Football League (NFL) issued a statement in support of the campaign just one day after the launch.‘“The National Football League believes in dialogue, understanding and unity,” NFL executive vice president of communications and public affairs Jocelyn Moore said Tuesday in a statement. “We embrace the role and responsibility of everyone involved with this game to promote meaningful, positive change in our communities . The social justice issues that Colin and other professional athletes have raised deserve our attention and action,” (NFL, 2018). This statement came to a surprise to some, since Kaepernick has been in a collusion case with the NFL since 2017.

Other media outlets covered the issue emphasizing the losses Nike was facing, and not on the issue Nike was taking a stance on. News outlets talked about how consumers were boycotting the brand. The Business Insider featured an article that talked about the hashtag, #Justburnit, which trended on social media with images of people destroying their Nike merchandise. This response toward the campaign showed a side of anger and opposed the collaboration.

This case study of Nike’s partnership with Colin Kaepernick provides a lot of insight in the field of public relations. Public relations professionals can learn from Nike’s strategies in this case to implement a strategic communications plan that engages their own audience in a meaningful way. Nike took a calculated risk when partnering with a public figure known for his polarizing beliefs. However, with Nike’s plan, they were able to create a campaign that drew in the attention of others. Their campaign provided the company an opportunity to use their platform to make a difference in society. Touching upon societal issues can be difficult, but when done appropriately they have a great impact. In addition to how Nike executed their plan, public relations professionals can take away how to use multiple platforms to get a message across to their audience. Nike utilized social media to spread their campaign as well as billboards in standout locations to grab the attention of others.

Another corporation who had a similar case to Nike was Pepsi. P epsi’s “Live for Now – Moments”  campaign. This campaign was a video designed to come across as an advertisement that promotes diversity, unification, and touch on the issue of police brutality, similar to Nike. They also featured a public figure, Kenall Jenner to grab their audience’s attention. However, the advertisement was poorly executed and outraged many viewers due to the insensitivity in the short film. The advertisement shows a diverse crowd of people coming together to protest. The crowd is then joined by celebrity Kendall Jenner, who leaves her photoshoot to join the protest and hand one of the police officers a pepsi. After he takes a sip, everyone who engaged in the protest celebrates. The execution of this advertisement made the issues of racial inequality and police brutality a simple fix. Pepsi released a statement apologizing for the advertisement and explaining that their intended message was not relayed appropriately. This advertisement was taken off air almost immediately.

Another campaign that was successful in getting their message across to viewers was Airbnb. Airbnb created a campaign in response to President’s Trump  closing the Ame rican borders to refugees in 2018. The advertisement aired during the Superbowl and was highly favored by the audience. The campaign was called “We Accept” and showed pictures of a bunch of different people of different nationalities. The quote on the advertisement read We believe no matter who you are, where you’re from, who you love or who you worship, we all belong. The world is more beautiful the more you accept.” Similar to Nike, Airbnb used their platform to address racial inequalities in society and bring attention to this issue. Although they did not use a celebrity, their timing of the advertisement got a huge amount of attention.

I believe that the tactics Nike used in this campaign were exclusive to their organization because it is difficult for a brand to side with a political viewpoint without losing a large chunk of their viewers. In a polarized political climate, organizations must be wary of the consequences of taki ng a side that part of their audience will not agree with. However, a company as big as Nike researched how people felt about Colin Kaepernick’s actions in order to determine the best strategies to implement into the campaign. Since they adhered to their young target audience and took a risk that conveys their brand identity and represents Nike as a brand of goodwill that supports social movements and activism, I think their PR department successfully accomplished their goals and objectives. I think their use of a prominent social activist figure in sports was a perfect way to display their brand identity and engage the most people possible. They were able to clearly get their message across to viewers that people should express their beliefs and fight for their values, even if it means losing everything you have worked for. After all, this idea of standing up for your own principles is the whole premise of the “Just Do It” slogan. Therefore, as a public relations professional, it is clear to me that their strategy of showing how people can “just do it” in a way that represents sports and social activism simultaneously was a remarkable way of gaining media attention and support from consumers.

References:

Balkam, J. (2021). Nike & Colin Kaepernick — A Case Study on Authentic Cause Marketing. Retrieved 28 September 2021, from https://medium.com/3-win-sponsorship/nike-colin-kaepernick-a-case-study-on-authentic-cause-marketing-1f8d2af02211

Carissimo, J. (2021). Colin Kaepernick joins Nike’s 30th anniversary “Just Do It” campaign. Retrieved 28 September 2021, from https://www.cbsnews.com/news/colin-kaepernick-nike-just-do-it-campaign-announcement-today-2018-09-03/

Case study: PepsiCo & Kendall JENNER’S controversial commercial . astute. (2020, February 21). Retrieved September 28, 2021, from https://astute.co/pepsi-kendall-jenner-commercial/  

Draper, K., & Creswell, J. (2019). Colin Kaepernick ‘Dream Crazy’ Ad Wins Nike an Emmy. Retrieved 27 September 2021, from https://www.nytimes.com/2019/09/16/sports/football/colin-kaepernick-nike-emmy.htm

Gilliland, N. (2021, February 18). 10 brand campa igns that took a stand on social issues . Econsultancy. Retrieved September 28, 2021, from https://econsultancy.com/brand-campaigns-that-took-a-stand-on-social-issues/

Hunnicutt, T., Allen, J., & McGurty, F. (2018, September 3). Nike features Nfl’s kaepernick among athletes in ‘just do it’ campaign . Reuters. Retrieved September 28, 2021, from https://www.reuters.com/article/us-nike-kaepernick/nike-features-nfls-kaepernick-among-athletes-in-just-do-it-campaign-idUSKCN1LJ21Y  

Jonathan Intravia, Alex R. Piquero, Nicole L eeper Piquero & Bryan Byers (2020) “Just Do It? An Examination of Race on Attitudes Associated with Nike’s Advertisement Featuring Colin Kaepernick”, Deviant Behavior, 41:10, 1221-1231, DOI: 10.1080/01639625.2019.1604299

Joon Kyoung Kim, Holly Overton, Nandini Bhalla, Jo-Yu n Li, Nike, Colin Kaepernick, and the politicization of sports: Examining perceived organizational motives and public responses, Public Relations Review, Volume 46, Issue 2, 2020, 101856, ISSN 0363-8111, https://doi.org/10.1016/j.pubrev.2019.101856 .

Li, J.-Y., Kim, J. K., & Alhar bi, K. (2020). Exploring the role of issue involvement and brand attachment in shaping consumer response toward corporate social advocacy (CSA) initiatives: the case of Nike’s Colin Kaepernick campaign. International Journal of Advertising , 1–25. https://doi-org.ezaccess.libraries.psu.edu/10.1080/02650487.2020.1857111

Merriam, L., & Quint, M. (2021). Nike Controversy: Colin Kaepernick Marketing Strategy Analysis. Retrieved 28 September 2021, from https://www.amanewyork.org/resources/nike-controversy/

Nfl. (2018, September 4). NFL: Issues raised by KAE PERNICK deserve attention . NFL.com. Retrieved September 28, 2021, from https://www.nfl.com/news/nfl-issues-raised-by-kaepernick-deserve-attention-0ap3000000958222

Nike cashes in on Kaepernick and anthem kneeling with jersey celebrating the anniversary of the protests. (2021). Retrieved 27 September 2021, from https://www.theblaze.com/news/nike-commemorates-four-year-anniversary-of-national-anthem-kneeling-with-special-edition-colin-kaepernick-jersey

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Nike uses Kaepernick and BLM to distract you from their support of Islamophobic genocide. (2021). Retrieved 27 September 2021, from https://www.msn.com/en-us/news/world/nike-uses-kaepernick-and-blm-to-distract-you-from-their-support-of-islamophobic-genocide/ar-BB1bt97T

Stillman, J. (2021). Here’s the Data That Proves Nike’s Colin Kaepernick Ad Is Seriously Smart Marketing. Retrieved 28 September 2021, from https://www.inc.com/jessica-stillman/heres-data-that-proves-nikes-colin-kaepernick-ad-is-seriously-smart-marketing.html

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Case Study: Nike’s Digital Marketing Strategies 2024 Edition

• July 18, 2023

Table of Contents

When we think of businesses that sell sports shoes or running shoes , one of the first names that come to our mind is Nike .

The business giant initially started as an American import-export company that imported the infamous Tiger shoes from Japan and sold it to American citizens.

Founders of Nike

Phil Knight , a college student, and his coach Bill Bowerman came together to start this venture in 1964 under Blue Ribbon Sports .

Their business was a success from the start as they bridged the gap that existed in the community. They provided superior quality shoes at affordable prices in comparison to their now competitors, Adidas or Puma.

In 1971 , due to a conflict with Tiger shoes, Blue Ribbon Sports officially split from their supplier and renamed themselves, Nike. Inc. based on one of their revolutionary designs the “Tiger Cortez” or the “Nike Cortez” which was the reason for the conflict in the first place.

Nike Revenue from Financial Year 2005 to 2022 (in Million USD)

Nike has generated over 46.71 billion USD in revenue in 2022 establishing itself time and again as a force to be reckoned with.

As of 2022, Nike is operating in over 1000 retail stores across 170 countries and has over 80,000 employees . Their world headquarters are located in One Bowerman Drive, USA, and have several head offices across the globe.

They have expanded their product inventory from selling just sports shoes to selling shoes, clothing, equipment, and sports accessories for men, women, and children.

Nike – Company Highlights

Over the years, Nike has come up with some of the most innovative and creative ad campaigns . From their infamous “Just do it” campaign in 1988 to its most recent “Dream Crazy” campaign in 2022 , Nike has experimented with and tested several different marketing strategies.

So let us now analyze the different marketing strategies that were implemented by Nike to sustain and thrive across decades.

Nike’s Ideal Target Segment

Over the years Nike has gradually treaded into the luxury industry . They not only have a wide range of inventory, but they also have versatility in their price range.

This has expanded their target demographic. Individuals from high-income families and socio-economic groups form Nike’s Ideal target audience.

Consumers who are sports enthusiasts and prefer a healthy lifestyle but are still conscious of their image and brands form their major target segment.

North America generates the most revenue for Nike.

When we further analyze this data, it can be concluded that men form a vast majority of their consumer group, responsible for 55.06% of the total engagement and women contribute 44.94%.

Three primary age groups generate the most traffic on their online sites. Those in the age group of 25-34 form the majority by contributing 31.18% of the traffic. Those in the age group of 18-24 and 35-44 contribute 26.84% and 19.09% respectively.

Now that we have discussed the ideal target audience, let us look at some of Nike’s digital ad campaigns to better understand the strategies and practices implemented by them.

Nike’s Successful Digital Ad Campaigns

Nike’s campaign 1 – the wonder woman of vogue.

“The wonder woman of vogue” campaign was Nike’s way of showing that they are proud allies of the LGBTQ+ community while still promoting their latest collection called “#BeTrue” .

This video ad campaign was produced by Public Record and was aesthetically conceptualized and shot by Daisy Zhou .

Nike collaborated with Leiomy Moldonado a Vogue artist and ballroom dancer who is also a part of the LGBTQ+ community. The entire short film’s audio appeal was enhanced with wonderful narration by Precious Angel Ramirez .

Every athlete can leave a mark on this world. @wond3rwoman1 takes the #BeTrue collection to the ball. Learn more: https://t.co/qRCpTZQ0SN pic.twitter.com/R2LZvwW5qX — Nike NYC (@NikeNYC) June 22, 2017

The ad campaign was shot as a short film that served three primary purposes. The first purpose was to explore the contributions of the LGBTQ+ community to art , particularly the birth and culture of Voguing.

The second was to promote their latest collection

And third, the purpose was to celebrate PRIDE month . And the ad managed to do all this in a duration of a minute, and that is the power of storytelling .

The ad was released on Nike’s official social media pages like Facebook, Instagram, YouTube, and others.

Nike’s Campaign 2 – You can’t stop us

Nike launched the “You can’t stop us” campaign in July 2020, to inspire people when all hope was lost during the pandemic. The goal was to motivate and give hope to people that things will get better and that they can overcome challenges and emerge victorious.

The ad was conceptualized and created by Weiden+Kennedy . The whole process involved analyzing and handpicking a few videos from more than 4000 videos showcasing brilliant moments of human resilience and the power of determination across different sports like tennis, baseball, gymnastics, basketball, skateboarding, athletics, and so on.

The edit, flow of the story, and the raw emotions that can be felt in the ad form the entire crux.

The ad was released on major social media platforms like YouTube, Instagram, Facebook, and others. The 1.5-minute ad inspires, motivates, and gives hope to people to stay positive during difficult times as there is always a meaningful light at the end of the tunnel.

This ad campaign was not created for sales or to generate revenue . It was created with a consumer-centric approach to stand as a source of support to all those suffering in a major healthcare crisis .

It reflected Nike’s brand and its image and mission through powerful storytelling, visuals, and auditory elements.

Nike’s Campaign 3 – Reactland campaign

Nike’s Reactland campaign was launched in March 2018. The ad campaign was one of a kind with its perfect blend of technology and product placement.

Nike collaborated with Wieden+Kennedy Shanghai to create a unique AI experience for their customers while showcasing their latest collection of running shoes.

The experience allowed shoppers to try on the new collection , and get their pictures clicked to help in the creation of their 8-bit avatar .

The customers would then step on the treadmill and start running. And this would reflect on the screen as their avatar. At the end of this immersive experience, the customers would receive a 10-second customized video of this experience.

And about 50% of the customer s who tried on Nike’s react running shoes and had this immersive AI experience ended up making their purchase.

This installation was introduced in only four stores and also a pop-up store in China for about a month.

The customized videos and campaign ads were promoted on different social media handles with the hashtag “Reactland” and “Nike” .

It was an extremely unique and innovative marketing strategy that took in-store trials to the next level. It proved to be immensely successful in reflecting Nike’s brand value. 

Nike’s Website Strategies

The main purpose of the website is to generate a stream of revenue and an online presence for the brand.

Nike’s website is well organized and categorized to ensure a seamless customer experience . It has a mobile-first approach to ensure that consumers can access and log in to the website through any device.

The look and feel of the website are minimal and cohesive with the brand’s image and have a user-friendly UI design .

Having said this, some argue that the color choices and style of design might be a little too boring and forgettable. It is a fast-loading website that has clear and distinct labels and hyperlinks placed to ensure easy navigation throughout.

All the different products are categorized accordingly to ensure customers can easily access what they are looking for.

Flexible payments and filters encourage consumers to buy with ease and also help with quality lead generation.

The brand’s website also supports easy ordering and tracking by all teams and consumers to ensure the entire process is smooth. They also facilitate consumers to customize their orders and this is completely done through their website.

The website is also highly interactive and has quality links embedded to access the homepage and sub-pages. Nike has also implemented an efficient feature that allows its customers to access any part of the website with just a click.

And the website has over 92 technologies embedded to ensure no lagging occurs at any stage of the ordering process.

Overall, Nike has a well-rounded and inclusive approach to its website to ensure the best experience for its customers.

Hence, we can conclude that Nike has a consumer-centric approach to creating and developing its website.

Nike’s SEO Marketing Strategies

Nike has an optimized online presence which is reflected in its website traffic. According to SEMrush, Nike receives a total of 179.1 million average online visitors every month . Consumers surf through the website for an average of almost 4 minutes .

And Nike occupies the 4th position in the US in the category of “Fashion and apparel” .

These statements reflect the quality of the plans and SEO strategies implemented by the brand.

Nike has performed timely on-page and off-page SEO audits for its multiple websites to ensure that it is bringing in quality leads.

24.45% of the total traffic on their website is generated organically. Hence, we can conclude that their keywords, landing pages, and content have been fully optimized for the purpose.

 Nike’s website migration to nike.com, optimization of the homepage to add value to internal linking, and its investment in launch pages have significantly improved its ranking online.

Nike’s Unique Product Landing Pages

Uniquely created product splash pages are a great tool to drive consumers into downloading and installing the Nike app to facilitate conversions.

• https://www.nike.com/air-max
• https://www.nike.com/air-force-1
• https://www.nike.com/jordan

The brand has optimized and retargeted its keywords to ensure that the business ranks high even when generic terms are searched.

Nike has optimized its website for over 112k keywords out of which some of the top searches are:

• Jordan shoes
• Nike air force 1
• Nike shoes for men

Overall, Nike has focused on fully developing all aspects of its website to ensure maximum reach and engagement .

Their design and approach are cohesive with their brand. They have impeccable and innovative site architecture and pages that not only create a seamless experience for the consumers but also generates quality leads and conversions for the brand.

Nike’s Main Organic Competitors

The top five competitors of Nike are:

• Foot Locker
• Dicks Sporting Goods
• Sports Direct

Each of these brands focuses on the sports and athletics category and caters to a similar clientele. Hence, Foot Locker and Nike have an affinity score of 100%. Food Locker receives a total of 17 million visits a month in comparison to Nike’s 179.1 million visits.

Nike’s Social Media Marketing Strategies

2.70% of the engagement on Nike’s website comes from their social media. Given that their total revenue was 44.5 billion USD in 2021. They are active on several different social media platforms, 26 to be exact.

Out of these, YouTube (37.97%), Facebook (32.64%), Reddit (7.03%), and Twitter (6.38%), are the most popular ones.

They have a multiple-account approach which means that Nike is operating more than 300 official accounts on several different social media platforms simultaneously. This is a common strategy adopted by large brands to ensure that each of their product categories is being marketed effectively and accurately.

These social media accounts are for their men’s collection, women’s collection, kid’s collection, yoga, swimwear, basketball, football, skateboarding, and so much more.

Nike’s content team creates highly specific and brand-cohesive content that can be shared on all platforms with just a few minor tweaks.

Powerful story-telling through an emphasis on EQ and simple yet catchy slogans is their signature approach. Powerful visuals speak louder than words and hence most of their social media campaigns prioritize the auditory and visual spectacle over the spoken word.

Very cleverly, they have established themselves as not only a business that sells products but as a brand that promotes a healthy and conscious lifestyle . This is crucial to influence the consumers and convert them into loyal customers.

Nike’s social media content always ensures to bring to light any issues or movements unfolding in society. Hence, they have shown their support by conceptualizing and creating campaigns against racism, hate, and violence .

Nike has a huge list of A-list athletes who endorse the brand. And this facilitates the creation of likable and shareable social media content.

View this post on Instagram A post shared by Nike (@nike)

View this post on Instagram A post shared by Nike Football (Soccer) (@nikefootball)

Top athletes like Lebron James, Michael Jordan, Tiger Woods, Serena Williams, Marcus Rashford MBE, and Christiano Ronaldo endorse the brand, appealing to a much wider demographic.

Overall, Nike has a very clear, concise, and no-nonsense approach to its marketing which stands cohesive with its brand image. 

Nike’s Influencer Marketing Strategies

Nike is one of the many brands that has actively utilized the power and reach of celebrities to promote the brand right from the start. Hence, they have always been aware of the influence of those select few who can take the brand to the next level.

The type of marketing that involves onboarding celebrities or social media influencers to promote the products of a business to their respective fan base is called influencer marketing . The system of payment between the influencer and the business client can vary accordingly from freebies, benefits, and memberships to financial payments and sponsorships.

The Lebron XX. These aren’t your father’s shoes. Well, unless you’re Bronny. #LeBronXX 👑🕰️ pic.twitter.com/Pvb16JscuD — Nike (@Nike) November 2, 2022

Thank you, Sue 💛 We partnered with @nike and friends to celebrate @S10Bird ’s epic career. pic.twitter.com/FrfNwFDcPU — TOGETHXR (@togethxr) August 7, 2022

Nike believes in the “Pyramid Spillover” approach which means that the athletes who endorse the brand influence consumers and also reflect the image of the brand.

And this belief can be seen in most of Nike’s ad campaigns which involve top athletes from different sports and games.

Nike has also collaborated with other well-known personalities like Drake, Kanye West, J Balvin, Anna Wintour , and so on.

From Steve Prefontaine and Michael Jordan to Rafael Nadal and Tiger woods , Nike has a checklist of traits that it actively seeks out in its ambassadors.

And so far, all have proved to be immensely successful.

Due to its brand value and legacy, Nike does not pay social media influencers to promote its products. These influencers do reviews and unboxings of Nike products to gain traction for their accounts and all the brand has to do is permit them.

Overall Nike has a fully optimized influencer marketing strategy which has facilitated not only sustaining its brand value but also enhancing it.

Nike’s E-commerce Strategies

A successful e-commerce strategy facilitates a wide reach and more revenue generation. And before the pandemic, Nike had optimized its e-commerce strategy which was based on the “Triple Double strategy” . This strategy involved doubling the efforts and focusing along three lines, innovation, speed, and direct contact with consumers.

Since 2017, Nike shifted their focus from solely catering to the wholesale needs of retailers to directly supplying shoes to consumers in the retail category.

And hence, they began reducing their dependence on departmental stores and directly connecting with buyers online. This was the start of their innovative e-commerce strategy.

They developed their channel of communication to ensure the best experience for their customers. They stopped selling on Amazon in 2019 and decided to go with only 40 strategic retailers and maximize their sales on their e-commerce platform .

With a highly efficient app and website , they cater to every need of the consumer to ensure maximum lead generation and conversions.

Keeping consumers engaged in between their purchases is crucial to retaining them in the long run. And Nike continued with product launches even during the pandemic to maximize their sales by analyzing consumer behavior and relevant data. A great example of their strategy and innovation was their launch of active maternity wear in 2020 to cater to a unique clientele.

Similar to Apple, Nike has built an efficient ecosystem that facilitates consumers to step into the business from several entry points.

Their training apps and running cubs are a few of these entry points. This is a great strategy to optimize e-commerce while expanding their demographic.

Overall, Nike is one of the leaders in successful e-commerce strategy which has enabled it to not only reach out to a versatile demographic but also grow its business exponentially.

Nike’s App Strategies

Nike’s app strategy is very clear. They believe that a unique and unforgettable experience needs to be provided in both mobile shopping and traditional stores.

So, to optimize their mobile apps, they have ensured quick download and installation followed by an easy registration process.

They have a multi-app approach to ensure each of their categories receives the attention and focus they need to expand and generate revenue.

Their apps are compact and designed to bear less load. They have a clear and simple inventory display which allows consumers to navigate effortlessly and make their purchases.

Nike has introduced built-in tracking systems that allow the app to collect user data which is then analyzed and implemented at every stage of the design process and marketing.

And lastly, they create unique experiences and a sense of exclusivity which can be seen in the launch strategy of their app exclusively for sneakerheads . They focus on a narrow consumer pool for such launches and build on the traction received from the exclusive clientele.

Overall, their app strategy is unique and holistic that ensuring the brand is optimized at all levels efficiently.

Nike’s Content Marketing Strategies

Content marketing is a very powerful tool that facilitates customer retention and also quality lead generation. It refers to the concept of creating unique and engaging content in the form of videos, blogs, commercials, podcasts, etc, and promoting that on different mediums.

It reflects the brand value and is extremely valuable for engaging customers in between their purchases and ensuring that your brand is memorable.

Nike has effective content marketing strategies that consist of immersive social media posts and challenges, engaging blogs, and even video content on trivia about the brand and also their stand on certain topics of importance like equality, discrimination, and so on.

Their content strategy relies on powerful storytelling that pays homage to raw human emotions.

Their content is inspirational and aims at motivating and encouraging people to practice a healthy lifestyle and stay resilient in tough times.

Overall, their content marketing strategy is inclusive and well-rounded and perfectly bridges a unique gap. It balances what Nike wishes to achieve as a brand and what the audience finds interesting and engaging.

1. What is Nike doing to improve its digital marketing strategies for the next two years?

Nike has recently focused on improving its digital marketing strategies by investing in data analytics and personalization technologies to better understand and target its customers. The company has also increased its social media presence and launched innovative campaigns such as the Nike Run Club app and the Nike Training Club app to engage customers and promote its products.

2. What digital marketing strategies does Nike use?

Nike uses a variety of digital marketing strategies including social media marketing, email marketing, influencer marketing, content marketing, search engine optimization (SEO), and online advertising . They also invest in creating engaging and interactive websites and mobile apps to improve customer experience and drive sales. Nike’s digital marketing campaigns often focus on storytelling , inspiring and motivating their audience with powerful messages and relatable content.

3. What is Nike doing to stay ahead of the curve in digital marketing?

Nike is leveraging technology and innovation to stay ahead of the curve in digital marketing. They are investing in data analytics to better understand their customers and personalize their marketing messages. Additionally, Nike is exploring new technologies such as augmented reality and virtual reality to enhance the customer experience and create unique marketing campaigns.

Nike has been operating for decades and hence has built up quite a few strengths through years of innovation and testing.

One of Nike’s biggest strengths is the clarity it has in its brand image and value. This facilitates the creation of well-planned marketing strategies to produce beneficial results.

Nike has a very loyal customer base, high-profile celebrity endorsements that are not superficial but genuine, and its focus on sustainability are some of the factors that give Nike an edge over its competitors.

A versatile inventory and product category list, trained professionals and experts, low manufacturing cost, support from the black community, and a high market share value are some of the other factors that strengthen Nike’s brand image.

With strengths come weaknesses and Nike has its share of those. Debts and arrears which are yet to be paid, lack of labor regulations in foreign manufacturing units, market share of retailers, internal conflicts within the brand, dependence on the US consumer base, and lack of a diversified category are some of the weaknesses that Nike needs to overcome.

Nike has several brilliant opportunities to further expand and grow. Prioritizing the retail sector over wholesale, diversifying their product inventory, and embracing new and exciting technological advancements and tools in their product development and marketing are great ways to further drive their brand toward success.

Fun Fact: Learning about the  latest marketing case studies , and strategies   of brands  will provide you with an edge over your competitors. And this edge is extremely beneficial in the long run.

Implementing innovative and creative marketing strategies also facilitates expansion and better revenue generation.

Nike also experiences severe competition from other similar brands. This dilutes the quality and flow of traffic to their site, thereby impacting sales and revenue.

Fake products and dupes divert leads and prevent conversions and sales. Budgeting issues, foreign exchange issues, and disputes over patents and authenticity drain energy and resources.

Overall, Nike has a well-rounded and cohesive marketing strategy that aims at inspiring consumers.

It has an engaging and interactive approach to its strategies and ensures a clear representation of its brand image in all its marketing endeavors.

Nike has grown tremendously over the last 5+ decades and will continue to do so.

Also check,

Dabur Digital Marketing Strategies

Tata Motor Digital Marketing Strategies

Lenskart Digital Marketing Strategies

Nykaa Digital Marketing Strategies

Tesco Digital Marketing Strategies

Meesho Digital Marketing Strategies

Fabindia Digital Marketing Strategies

Alibaba Digital Marketing Strategies

Hindustan Unilever Digital Marketing Strategies

Written By Digital Scholar

Digital Scholar is a premier agency-styled digital marketing institute in India. Which offers an online digital marketing course and a free digital marketing course worldwide to elevate their digital skills and become industry experts. Digital Scholar is headed by Sorav Jain and co-founder Rishi Jain, who are pioneers in the field of digital marketing. Digital Scholar’s blogs touch upon numerous aspects of digital marketing and help you get intensive ideas of different domains of digital marketing.

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A Marketing Case Study on Nike

Written by Miles Media on April 10, 2016 . Posted in Uncategorized .

1.0 INTRODUCTION OF NIKE

Nike is a major publicly traded sportswear, footwear and equipment supplier based in the US which was founded in 1962 originally know as Blue Ribbon Sports. Nike is the world leader in the manufacturing of sportswear and gear with more than 47 market shares across the global (Nike.com, 2011).

Nike produces a wide range of sports equipments such as running shoes, sportswear, football, basketball, tennis, golf, etc. Now Nike follows the global fashion trends and is well known and popular in the youth culture and hip hop culture to supply some fashion products. Nike recently teams up with Apple Company to produce the Nike+ products which can monitor a runner’s performance through a radio in the shoe that can link to the iPods. Besides that, Nike also becomes the top of three companies which are climate-friendly companies which build better image to customers. 

Nike’s excellence marketing strategies are their energy to achieve their market goals. Nike believes the “pyramid influence” that the preferences of a small percentage of top athletes influence the product and brand choice. So Nike contracted with many athletes’ spokesperson, professional teams and college athletic teams to advertise and promote their products to customers. Nike seriously pay attention on the technology producing, design and selling such as e-commerce, high-tech running shoes, Nike+ with Apple, etc. Nike outsourcing their products most of the factories are located in Asia such as China, Indonesia and India.

2.0 PROS OF NIKE’S CORE MARKETING STRATEGY

Nike put heavily proportion in their marketing strategies and products deign. In order to sustain their dominance in the industry and retain their competitive advantages, Nike actively responds to the market trends and changes in consumer preference by adjusting their marketing strategies, the mix of existing product offerings, developing new products, styles and categories, and influencing sports and fitness preferences through various marketing strategies. Now we discuss the pros of Nike’s core marketing strategies and related them to the relevant marketing theories help us to depth understanding.

2.1 Distribution

More efficient product distribution is the more sales and thus more profits. The delivery of the right products and at the right time to the customers is not only effect the utility but also leads to high level of consumer’s satisfaction and loyalty. Nike distributes its products on different level basis. The high premium products are given to a certain distributors while leaving the low priced to be sold at highly discounted price at the retail stores such as Wal-Mart (Jeannet J, 200, pp 44).

Nike has become the leader in the e-commerce by being the first to the market with its e-commerce website. Nike launched its e-commerce site in April 1999 by offering 65 styles of sport shoes to the US market for purchasing (Nike, 2000). This program represents the first time a company has offered mass footwear through the Internet and provides competitive advantages to Nike.

2.2  Advertising and Promotion

Nike makes contracts with some celebrity athletes which can draw attention to their products such as Tiger Woods, Ronaldo. This has created a relatively high level of Nike’s awareness. Besides that, Nike also employed a large amount of advertisements through the mass media (Goldman S, 2000, pp 154). Nike’s brand images, including the Nike’s name and the trademark are considered to represent one of the most recognizable brands in the world. The Nike name and associated trademarks have appeared from players’ shirts, pants and everywhere. Their aggressive advertising campaigns, celebrity endorsements and quality products all enhance their brand and image. For example, when a celebrity athlete sponsors a specific brand of athletic shoes, the brand will be associated with success.

Nike targets on the consumers who care more about the utility and quality of the products rather than the price. In this way, the price is not affect too much (Frank, 2004, pp173). This has make Nike to set relatively higher price than its competitors. This strategy focuses on the consumers who like Nike and pushes the products value to a higher level. The customers who consider a product to be high quality are likely to pay the high price more often and consistently. Once the consumers develop the product intimacy, they come to associate their person with the products and will pay whatever price quoted on the products.

Nike use vertical integration price strategy in which they take ownership of the participants at channel level that differ and they also engage in various channel level operations both to control costs and thus influence the pricing function (Goldman S, 2000, pp154).

2.4  Market Segmentation and Target

Most of the consumer of Nike’s products is mainly athletic. Nike is the master of segmentation, their segmenting market typically target’s athletes, both women and men from the age 15 to 35. Nike’s targeting market is active people who enjoy high quality sporting goods, especially footwear. Nike focuses on creating premium consumer experiences on product innovation, brand leadership and elevated retail presence. Nike targets on these customers by agreements between Nike and athletic teams, college’s athletic teams for products sponsorship and eventual promotion to the members of these teams. Even though others are likely to buy the products, Nike focuses on the athlete more than any group of individuals even though it also target on the youth. This strategy is especially successful because of its ability to reach a large number of athletes.

3.0  CONS OF NIKE’S CORE MARKETING STRATEGY

Although Nike’s marketing strategies had brings lot of positive implications to the company, but it will bring negative implications to Nike too. The negative implications that will identify in this assignment are high cost incurred, influence of spokesperson, and competitors.

Since Nike has implemented several marketing strategies, it had incurred high costs in producing and promoting its products. The costs are increase among handling inventory, designing, advertising and production. (Abhiroopsur, 2009) Beyond that, the inflation had raised the costs of raw materials and transportation. To deal with these problems, Nike has increased the products’ prices and reduces its marketing budget. Therefore, this could hurt the long-term growth of the Nike. (Taulli, 2011) According to Boggan (2001), Nike had also employed child labor in Cambodia to reduce its production and labour costs. This had affected its brand image, and it might have many people boycott Nike and stop to buy anything from Nike. (Boggan, 2001) Furthermore, Nike has been using child labour in the production of its soccer balls in Pakistan. (TED, 2011)

3.2 Influences of spokesperson

One of the Nike’s core marketing strategies is depend on a group of athletes to promote its products. Nike prefers to have high profile athletes as its endorsers, like Runner Steve Prefontaine, Michael Jordan, and LeBron James. The athletes had positive and negative influence on changing consumer preferences, changes in consumer tastes and priorities, and also consumers’ buying decisions. The action and attitude of Nike’s chosen spokespersons could bring the impacts on its promotional strategies. For instance, it will attract the athlete’s idolater to purchase the products if Nike using a popular athlete as endorser. On the other hand, if the athlete were caught in drug addicted or any immoral attitude, it will affect the customers not to buy Nike’s products, thus will affect Nike’s sales, revenue and profit. (Cloke M., 2011)

3.3 Intense Competitors

There is intense competition faced by Nike. Their competitors are Adidas, Reebok, Puma, and so forth, whilst competition is tighter with the coming of Adidas. More, the product line is slightly different between Nike and Adidas. Nike is mainly focus on footwear for men and women who between 15 to 35 years old, while Adidas is specialize in footwear for men, women and children between the age of 10 to 30. This had shown that there is less diversification of Nike marketing strategy. They could also provide footwear for children to attract more parents to become their potential customers. Additionally, Nike distribution strategy is mainly focus in domestic market which is United States of America, whilst Adidas’s main office is located at Germany, but it focus in European market. Therefore, Nike should distribute its products to more region and countries in order to capture more potential customers and achieve greater reputation. (Allick et al., 2000)

4.0 RISKS OF NIKE’S CORE MARKETING STRATEGY

Nike faces many risks when they use their core marketing strategies to achieve their goals and these risks can come from both internally and externally environmental circumstance. The risks will have a negative influence about Nike’s future development, for example, the market share in the world, reputation, brand image and customer loyalty.

4.1 Changes in Market Trends, Consumer Tastes and Preferences

Nike needs to stay on the top of changes in consumer taste and preferences as evidenced by changes in fashion. So Nike face the risk that fashion trends may change so fast that Nike fails to follow. For example, for a period, the global athletic sportswear is focus on personality and Nike’s products still be general to the customers this will lead Nike go behind of their competitors if their competitors can follow the trends. For another example, such as the social changes, women are becoming more fitness-conscious and are increasingly being targeted as growth potential in the sporting apparel and footwear industries. Due to constant changes in consumer tastes and fashion, these industries are always changing. If Nike cannot follow the fitness trends in the market they will face risks of losing market shares. To compete with this risks and problems, Nike should position it as a trendsetter and not a trend follower and be responsible to their customers. (St. John University, 2004)

4.2  Fast changing of Nike’s products

From the above risk, the changing in fashion and customers’ preference had brings negative effect on its marketing strategies. Hence, Nike should introduce new products to maintain its customer loyalty as well as attract new customer markets. However, it will also have negative implication if Nike’s implement new products rapidly.

As we know, Nike’s products are focus on the athlete’s shoes, apparels and equipments and their target consumers are for the athletes. But now the global trends are to be fashion and personality. So Nike change its marketing strategies and products design to become more fashion and focus on the youth consumers. It brings risks to Nike because in the traditional mind of customers, they consider Nike only sell the athletic products. The fashion or the changing style products is unimaginative for customers to purchase. Not all the customers can follow the changing of Nike. Sometimes customers maybe feel fed up because they cannot follow the changing of Nike’s products will lead Nike lose customers which drop down the customer loyalty and market shares. (St. John University, 2004)

Therefore, Nike should analyse the market and customers’ preference as well as customers’ buying behavior from time to time. Nike could prepare survey form to their customers in order to have more understanding on customers’ taste, requirements when buying sportswear or footwear, and also collect the feedback and recommendation from consumers.

4.3 Expanding to the Overseas

One of Major Nike’s marketing strategies is to expand to overseas and become the leader in the world. It also will bring risks to Nike when they expand their business globally. For example, Nike outsources their products to developing countries such as China, Indonesia, and Thailand. Currency exchange rate fluctuations can disrupt the business of the independent manufacturers that produce Nike products by making their purchase of raw materials more expensive and more difficult to finance. Besides that, the global economic recession influence the overall business operation in the outsourcing countries. For example, inflation rate too high in an outsourcing country will increase the cost and reduce the profits for Nike. What’s more, the war and fuel price fluctuations also can lead to unstable situation for Nike over the long period. (Florzak, 2011)

5.0 COMPETITORS – ADIDAS

5.1 IFFICULTIES FACED BY ADIDAS WHEN COMPETE WITH NIKE

5.1.1 Marketing Strategies

One difficulty most likely to be faced by Adidas is in its marketing, compared to its competitor Nike, Nike spends more money on advertising and promoting their products reputation, Nike spend about $1.13 billion as of 1998 involving celebrities like Tiger Woods, Micheal Jordan, Carl Lewis etc. while paying these celebrities large amount of money (Bedar, 2002), as of 2010, Nike spent about $800 million on Nontraditional advertising by using other medium of advertising their products other than TV and has reduce TV and Print advertising by 40%, and in 2006, Nike introduced the Nike + Platform which is a multi-channel, multi-sensory integration between apple and Nike technologies that allows persons to track performance (Fluffylinks, 2012) in essence, Adidas will have a hard time trying to compete with Nike in terms of advertising and promotion, considering Nike’s utilization of low labor cost of production, Nike can afford to spend so much money in creating awareness for their products and gaining consumers loyalty by utilizing celebrities. Adidas will have to invest more money on advertising and create innovative means of advertising their product, having consumers in mind and following the trends of technologies, for example, Adidas can collaborate with IT companies such as Samsung to create innovative means of advertising their products.

5.1.2  Adidas and Reebok Reputation on Its Finances

Adidas and Reebok joining up together as a merger would be a good deal for leading over Nike but the two companies have a bad reputation due to financial problems which almost led them to bankruptcy and since they are to work together. The expansion of their business will take a while to develop because they have to have strong advertising strategies until the Asians .If the Asians like their ideas then they might as well adjust to the culture in countries like china since it has the biggest population. In the long run Asian countries like China might as well take a long time to work with the company in terms of coming up with factories in china. This might be one of their biggest problems which will enable them take a long time to lead Nike in terms of their market Nike. To go through all that they will be a lot of expenses thus the company might run bankrupt again. (Adidas-Rebook, 2011)

5.2 HOWADIDAS COMPETE WITH NIKE?

5.2.1 Develop the Small Computer “Smart Shoe” Product Line

The development of a product line of smart shoes will build on this reputation and show buyers that Adidas is humorless about innovation and using technology to advance athletic accomplishment. The line of smart shoes combines a microprocessor or implanted controller, sensors, and tiny motors along with memory and battery. The sensors work to steadily monitor, measure, and supply data looking at the landscape, impact of each step, athlete’s body temperature, environment temperature, and athlete’s heart rate. This data can steadily be fed to a microprocessor which agent motors to adjust padding and airflow within the shoe. (Dogiamis et al., 2009)

Wireless GPS system is another feature on the small computer production line that enables runners to decide their accurate location, distance traveled, and speed from the shoe’s GPS by wearing a small wireless GPS wrist strap. The shoes implanted memory can keep data about workouts such as average heart rate, body temperature, calories burnt and force of each step. For situation, in basketball the micro can watch how high the athlete jumps and how hard of a landing they make.  As many athletes demand goods created that can deliver   both watching and accomplishment bettering capabilities, they will find Adidas the solution thus leading to much higher revenue, profit, and market share in sports that Adidas already leads and in sports where Adidas lags in revenue, profit, and market share (Dogiamis et al., 2009)

5.2.2 Implementation of Rebranding Reebok Program

Adidas Group should phase out its high accomplishment athletic shoe line and reposition itself in the casual footwear and active footwear market within the next years. The high accomplishment athletic shoe line can be sponged up into the Adidas brand. Adidas It should consider opening Reebok retail outlets that market Reebok as well stylish Reebok at more upscale department stores such as Macy’s and Nordstrom. Reebok should ensure keeping up a very high level of quality and durability of its shoes. However, it should work with major fashion designers such as Calvin Klein to come up with a well stylish product line of shoes meant for active, casual use, gain brand image as an upscale and more cultured shoemaker. Reebok should first come up with a line of casual but well stylish shoes designed by Calvin Klein that blend quality and style. (Dogiamis et al., 2009)

The rebranding of Reebok can help Adidas to make larger advancements with women. They want a shoe that can be useful for all visible feature of an active lifestyle. Therefore, marketing Reebok as a well stylish line of shoes meant for active lifestyle might allow Adidas to make larger in roads with women.  Reebok should start a line of well stylish shoes prepared toward women with active lifestyles. (Dogiamis et al., 2009)

The overall rebranding of Reebok should be finished to avoid internal competition within Adidas Group where the Reebok division is seen as the less profitable sibling of Adidas and to keep buyers from believing that Reebok is not an expensive substitute for an excellent Adidas product. (Dogiamis et al., 2009)

5.2.3 Expand Its Sponsorship Program (Marketing)

Adidas mainly focuses in the European market even though it is known in other parts of the world, which is because of its collaboration with soccer events all over the world and football associations with bodies such as FIFA, UEFA, leagues, clubs and individual players, in 2010, Adidas experience its most successful year in the history of football with sales above 1.5 billion Euros. It also had a sure climax during the 2010 FIFA World Cup of which it sponsored the wining team Spain and the adiZero F50 which is also an Adidas product had the top scoring boot in the event, lastly, Adidas Football group on Facebook massively increased from 100,000 members to over 6 million members presently. Adidas has been an official sponsor of the Olympics and has also been included as a sponsor of the 2012 Olympics; this gives it an edge over its competitor Nike. (AdidasGroup, 2011) It should use this opportunity to carry out precise marketing, by focusing on its segment market which includes the soccer, tennis and athletics teams and probably expand its focus to the up and emerging local teams in the grassroots, because, this group of people are keen about sports and spend time watching them on the TV but hardly get access to them unless they purchase the product themselves.

5.2.4    Change in Consumer Perception to Products

Adidas can also change the consumer’s perception about its products, most consumers perceive Adidas product as being too stiff and therefore are uncomfortable with it, Adidas can come up with a durable but use soft materials for its product as well as rebrand it product as not just a sporting shoe but also a fashionable shoe which consumers can wear on a casual basis example for outings, parties etc. when this is instilled in the minds of the consumers, more of Adidas product will be purchased by consumers as it will be perceived as durable and fashionable.

5.2.5 Encourage Product Customization

Adidas can also make provisions for consumers to customize their products online before it is delivered to them, this will give customers unique and a wide range of their products to choose from and will also allow them to understand what their consumers really want and focus on satisfying their consumer. With each consumer trying to be very creative and unique in their way, Adidas will shift its focus on their consumers from how much they are to pay for the product to how much they can benefit from the product. Adidas can promote this feature through its Facebook page which has over 6 million members.

5.2.6 Focus on Emerging Market

Adidas can capitalize on Nike’s weakness which is its focus on local market, Adidas can capture emerging markets, and already it has a lead in market such as India and Japan. In Latin America, it experiences a growth sale of 38% in 2007. (ReComparison, 2012) Although it is competing with Nike in China, it should focus on ranking its investment solely on markets which offer superior channels to long-term growth and profit prospects and should also focus on expanding its share to unreached areas especially in China, Russia, Africa and the United States. It should also ensure that it differentiates consumers’ buying behaviors as it differs in different regions and countries and understanding this will be an added advantage to Adidas. 

6.0 CONCLUSION AND RECOMMENDATIONS

From the above analysis, we had understanding about the pros, cons and risks of Nike’s core marketing strategies with relevant marketing theories. Besides that, the difficulties Nike faced when they competing with Adidas. We discuss from the distribution, price, products design, promotion and advertising, market segmentation to analysis Nike’s competitive advantages in the global market. We also find that the other side influences of Nike’s core marketing strategies such as costly advertising, raw materials costs affected by the global economic, the spokesperson’s behaviors which has negative influences to the Nike’s brand images. What’s more, the risks of Nike’s core marketing strategies such as Nike cannot follow the world fashion trends, the profits has affected by the currency exchange and economic recession when expand to the global.  

Nike has remained and continues to remain at the top in producing and distributing their sports clothes and equipments. However, Nike should consider the competitive pressure is very heavy and not allow the “sleep at the top”. So Nike should continuously find efficient marketing strategies to keep their top leaders positions.

The following recommendations are suggested in a situation where marketing management is competent. Nike should increase their market shares through issue new products, competitive pricing strategies, and advertisement and promotions activities. Nike also should restructure market dominance by separate themselves from the competitors mainly through mass promotion strategies and pricing strategies which make Nike more attractive to customers. Besides that, Nike must increase their awareness of corporate social responsibility to strengthen their image of themselves. What’s more, Nike should pay much attention to their R&D department to research out different kinds of people with different taste to get the market diversification goals.

All the above show a competent marketing management which can help Nike Keep their top market leaders and keep their competitive advantages.  

7.0  REFERENCES

Abhiroopsur (2009) ‘Nike – How the Brand Survived until Today’, (online) (cited 1st March 2012). 

Adidas Group (2011) ‘Adidas Strategies’, (online) (cited 10th March 2012). Available from

Adidas-Rebook (2011) ‘Adidas-ReebokMerger’, (online) (accessed 11th March 2012).  

Allick M., Keany E., Koslow J., Tansamrit A., Thorkelson D. (2000) ‘Comparison between Nike and Adidas’, (online) (cited 26 Feb 2012). Available from Soc.duke.edu/~s142tm17/compare.htm 

Bedar S. (2002) ‘Putting the Boot In’, The Ecologist, 32:3, (online) (cited 11th March 2012).

Boggan S. (2001) ‘Nike Admits to Mistakes Over Child Labor’, (online) (cited 2nd March 2012). Available from: http://www.commondreams.org/headlines01/1020-01.htm

Cloke M. (2011) ‘Marketing Management 01′, (online) (cited 26 Feb 2012). Available from URL: http://www.slideshare.net/michaelcloke/marketing-management-01-8568487

Dogiamis G., Vijayashanke N. (2009) ‘Adidas: Sprinting Ahead of Nike’, (online) (cited 4th Feb 2012). 

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Source by Steve Jones

marketing , small business marketing