Nike
Nike started as Blue Ribbon Sports and officially became Nike on May 30th 1971. Nike takes its name from the Greek goddess of victory Nike has many subsidiaries, including Hurley International and Converse; It is known for Air Jordans and Air Max lines of shoes Nike has highly recognized trademarks that include “Just Do It” and the “Swoosh” logo. Fun fact, the “Swoosh” logo only costs $35.
collaboration
Nike collaborated with rapper Kanye west and developed new sneaker called Nike air Yeezy .
History that leads into marketing strategy
To get a better understanding of the company itself, we must go back to the beginning. The company came about when two individuals, Bill Bowerman and Phil Knight, each decided to invest $500 in an idea to promote better quality shoes as well as to promote a healthier lifestyle. Bill Bowerman was a track and field coach who wasn’t satisfied with the shoes readily available. Knight did business with Japanese company Onitsuka in 1964 to start creating shoes with his partner Bowerman. This eventually led to Nike’s first official shoe “The Cortez.” Bill said “A shoe must be three things. It must be light, comfortable and it’s got to go the distance.” This was accomplished with “The Cortez.” This shoe was in fact comfortable, it looked good, and went the distance. The shoe came after a time where Bowerman invested time into writing a book about the benefits of jogging. Was this all carefully planned out or what did everything fall into place? Nike’s focus was on the consumer not just selling the product. Bowerman then began experimenting with his wife’s waffle maker to design a better tread for running shoes. This lead to the Nike “Moon Shoe.” Nike’s first full-time employee Jeff Johnson said great things about Bowerman’s early innovations. He said “He challenged accepted notions of traction, cushioning, biomechanics and even of anatomy itself.”
Nike’s marketing strategy is focused on a “Hero” archetype. Nike’s slogans and many commercials show someone, whether it’s a regular person or an athlete, persevering from less than promising situations and rise to the occasion to do what seemed impossible. Nike is geared more towards emotional branding. Most commercials show people ultimately fighting the beast within to motivate them keep going and fight through what is holding them back. They endorse top athletes to assist with marketing.
Nike’s marketing techniques are proving to be a worldwide hit. For example, in China Nike is experiencing much success. In 2015, Nike’s North American revenue in the footwear sector amounted to about 8.51 billion U.S. Dollars. Comparably in the same year, Nike’s revenue in the footwear segment amounted to about 2.02 billion dollars in China. Some of the impressive results from Nike's Chinese operations include: Sales up 30% year over year. Footwear segment sales up 36% year over year, compared with 20% YoY footwear sales growth in FY 2015. Direct-to-consumer sales up 46%, as the company focuses on online and Nike Brand Store growth. EBIT up more than 50% because of higher margins on higher-priced goods and improved expense management.
MARKETING TECHNIQUES CONTINUED
Put Customer Interests First And Base Strategy On A Felt Need Customers like great products and they like serious benefits. The Nike Moon shoes did this, but only because the customer was beginning to understand jogging and its benefits for their health. Bill’s secret goal wasn’t to sell shoes, he was simply promoting something that he believed in. Initially for Nike’s audience, the felt need wasn’t for better running shoes, but for a better way to get in shape. Certainly, running was already popular among kids and athletes in the 1970’s, but it wasn’t the widespread social activity that we see it as today. The growing white-collar workforce helped pave the way for social activities that included the promotion of cardiovascular health. Once the trend was ingrained, the need shifted and the “jogging shoes” themselves became the felt need.
How Nike’s Marketing Strategy Evolved
1. Embrace New Technologies While Nike’s early marketing strategy centered on print publications, they later went on to dominate other mediums, like television in the 80s and 90s, through modern social media platforms today.
2. Adapt To The Needs Of Your Audience Nike hasn’t historically adopted new communication platforms for their marketing just because they’re chasing new, flashy objects. Far from it. Rather, they’ve been quick to conquer new mediums because they’re where their customers are. For example, their Instagram profile is very content filled and up to par. They know their core demographic includes heavy Instagram users and so it makes sense for their brand to maintain a presence there. However, they also make sure that everything they post provides value. Rather than interrupting the flow of their follower’s feeds with flagrant sales pitches, they share motivational messaging.
3. Staying True To Your Sense Of Purpose Nike makes sure their brand message hasn’t gotten lost over time or across channels. They focus their emphasis on creating content that promotes the benefits of their products, rather than the features. Helping their customers be better at what they love to do is still the focus of their branding and message. By moving their content marketing to the platforms where their customers are it shows that they are keeping their audience’s needs in mind while staying true to themselves. Nike’s marketing strategy has succeeded in sustaining a global brand while many of their competitors have come and gone from the spotlight.