What are the things that comes in your mind when you talk about Nike? The answer is the Nike’s slogan”Just do it”, as do some famous endorsements, products and the Nike’s swoosh logo also comes in our mind pretty quickly. But is that really all these things that Nike is doing? Or, is there something deeper behind their strategy and tactics?
The marketing strategy that is used by Nike and as all of us recognize isn’t the one that made them famous, at least not in the early days.Well it’s not all about marketing principles, marketing plans and carefully planned marketing strategies. Like many of the similar success stories, it was as simple as providing real value to the customer. The marketing strategy of Nike is one of the techniques followed by many business to become successful in the world of business.
Background Information
- Originally named Blue Ribbon Sports, a running show company, by founders Phil Knight and Bill Bowerman.
- Changed it’s original name to Nike and adopted the swoosh logo in 1972.
- By 1979 Nike had captured half of the US running shoe market and filed for an IPO in 1980.
- By the 90’s Nike had become known for it’s innovative and compelling marketing.
- Recorded revenues for 20.8 billions in sales in 160 countries.
- Also has over 35,000 employees on 6 continents.
Nike’s Marketing Strategy
Bill Bowerman was a track and field coach and he was also one of the co-founders of Nike. In the mid-1970’s, he started experimenting with his wife to make a good design and a better tread for running shoes.He later used that design to make the first Nike shoe commonly known as “Nike Moon shoe.” It was the first step of many that putted Nike on the map, but just than a great tread—wear design and a waffle maker their is more to the story.
1.Think About Customer Interest
- Customers like great products that gives them serious benefits. And things that benefit the customers are easy to justify. The Nike Moon shoes did the same, but only because the customers was being able to understand jogging and its benefits for their health.
2. Believe In The Product You’re Selling
- Nike’s only goal was to promote a sport and an idea that they believed in. As marketers, we should also believe in the product and the ideas that we are selling? For Bowerman, that’s why it made marketing a lot easier. He was “marketing” without even realizing what he was up to.
How Nike’s Marketing Strategy Evolved
Since 70s marketing landscape has been changed a lot. So Nike’s marketing strategies has also been changed.
In fact, it’s amazing that how well the brand has adapted its approach to new trends, designs and technologies without losing an single core of their identity.
1.Technology And Social Media
- As technology and social media are helpful to connect people in many ways than ever, Nike is now faced with lots of opportunity/task to reach their consumers and continue to grow their brand name.
- Launched nike.com in 1998.
- After their early success to the internet they began to experiment with many ways to use the emerging medium to connect with consumers.
Examples
- Art Of Speed: First social network marketing campaign(2004).
- Nike +: Wanted to sync iPod with a user’s running data.
- Nike Grid: Citywide running game in the streets of London.
- “The Chance”: Global competition to join the Nike Academy by uploading videos of yourself on Facebook.
2.Fit To The Needs Of Your Audience
- Nike hasn’t historically adopted new communication platforms from where they started marketing just because they’re chasing new things and flashy objects. Far from it. Rather, Nike has been quick to work on other mediums because they’re where their customers are.
Example
Take a look at their Instagram Profile.
3.Stay True To Your Purpose
- Nike use to focus their emphasis on creating content that promotes the benefits of their products for their customers, rather than explaining the features of their products. Helping their customers be better at what they love to do is still the focus of their branding and message.
- Nike’s marketing strategy has succeeded in sustaining a global brand while many of their competitors were not able to do that so and have come and gone from the spotlight.
Issue 1
- Issue: Nike will have to “fill the gap” between their social media users and their active lifestyle depicted in their campaign videos.
- Action: They have to perform more activities like “The Grid”.
- Good Consequence: Motivate more people to get up.
- Bad Consequence: People without the proper Nike equipment can’t participate.
Issue 2
- Issue: Nike is spending more on digital marketing as compared to traditional TV and print ads.
- Action: Use some of the digital marketing budget to improve other innovative ideas.
Issue 3
- Issue: How will Nike keep their social media campaign.
- Action: Create Nike sponsored accounts on all of the social media sites and other digital platforms so to have a diverse advertising campaign.
Perspectives
Social Media Users: Because it creates a fun and interactive way for Nike to engage their users.
competition: Nike need to find out a way to catch up people who are experimenting on digital marketing for years.
Strengths
Already one of the world’s most recognizable brand.
Has always had innovative advertising strategies.
Weaknesses
Ignores people without access to internet.
Nike leads to much more expensive products.
Opportunities
Social media sites create a virtually infinite market opportunities.
Making exercising fun to motivate people.
Updates
Nike is leading the sports gear, apparel, and footwear market on social network.
Nike averages about 50,000 mentions daily on twitter.
Almost 13,000,000 Facebook friends.
Photo Credits: Instagram, socialbakers
