Nike: Marketing Strategy of Nike

Summary

Nike, a leading American multinational corporation, designs and markets sportswear, footwear, and equipment globally. With a 2020 revenue of $37.4 billion, Nike targets a demographic aged 15 to 40, focusing on active lifestyles and personalization. Its marketing strategy, anchored by the 'Just Do It' slogan, leverages geography, endorsements, and digital innovation, emphasizing brand equity, storytelling, and social media engagement to maintain its status as a top sports brand.

Takeaways

• 🌐 Nike is a leading global brand with a wide range of products including shoes, clothing, and equipment.
• 💰 In 2020, Nike's sales exceeded $37.4 billion and the brand value was estimated at $32 billion.
• 📈 Nike's brand value increased from $29.6 billion in 2017 to $32 billion in 2020, showing consistent growth.
• 🏅 Ranked 89th on the Fortune 500 list in 2018, Nike is among the largest US companies by total income.
• 👟 Nike's products are marketed towards an active demographic, primarily between 15 and 40 years old.
• 👨‍👩‍👧‍👦 The brand appeals to teenagers who admire athletes and extends its influence to middle-aged consumers.
• 🌍 Nike's marketing strategy is heavily influenced by geographical factors, tailoring its approach to local sports and cultures.
• 💸 Despite higher prices, Nike's marketing effectively communicates the value of its products to consumers.
• 🏆 Nike's marketing campaigns are designed to resonate with specific target groups, leveraging demographics and psychographics.
• 🏅 The 'Just Do It' slogan and swoosh logo are iconic, representing Nike's aspirational brand image.
• 🔄 Nike focuses on product innovation to improve performance and align with customer desires and market trends.

Q & A

What is Nike Incorporated?

Nike Incorporated is an American multinational company that designs, manufactures, and markets footwear, apparel, equipment, and accessories, with a focus on sports.

What was Nike's revenue in its 2020 fiscal year?

In its 2020 fiscal year, Nike made more than $37.4 billion in sales.

How many people did Nike employ worldwide as of 2020?

As of 2020, Nike employed 76,700 people around the world.

What was the brand value of Nike in 2020?

The Nike brand alone was worth $32 billion in 2020.

What is the target audience for Nike's marketing?

Nike's target audience is primarily between 15 and 40 years old, focusing on teenagers who look up to great athletes and also marketing to middle-aged people.

What is Nike's market share?

Nike has a market share of 38.2%.

How does Nike's marketing strategy adapt to different regions?

Nike's marketing strategy is heavily based on geography, adapting its marketing to suit different sports in different countries.

What is the significance of Nike's 'Just Do It' slogan and swoosh logo?

Nike's 'Just Do It' slogan and swoosh logo are significant as they represent the brand's aspirational and inspirational image, which has helped it become a globally recognized symbol in the sports world.

How does Nike use personalization in its marketing?

Nike uses personalization in its marketing by offering high-quality items that offer significant benefits and by combining cutting-edge technology with human psychology to appeal to individual customers.

What is the role of storytelling in Nike's marketing approach?

Storytelling plays a crucial role in Nike's marketing approach by creating ads that tell a story and evoke emotions, helping to build the brand's image and connect with consumers on a deeper level.

How does Nike leverage endorsements and sponsorships in its marketing?

Nike leverages endorsements and sponsorships by partnering with well-known athletes and sports teams, which helps to increase brand visibility and credibility.

What is the significance of product innovation in Nike's strategy?

Product innovation is significant in Nike's strategy as it focuses on improving performance and meeting customer needs, which helps the company stay ahead of the competition and maintain a high-quality reputation.

How has e-retail evolved in Nike's sales strategy?

E-retail has evolved to become a significant part of Nike's sales strategy, with a shift towards direct-to-consumer marketing and a focus on online shopping experiences to build better relationships with customers.

What is the role of social media in Nike's marketing?

Social media plays a vital role in Nike's marketing, with the company maintaining a strong online presence and engaging with consumers through various platforms, which helps in building brand loyalty and increasing sales.

Outlines

00:00

💼 Nike's Global Dominance and Marketing Strategies

Nike is a leading American multinational corporation known for its sportswear, footwear, and equipment. In the 2020 fiscal year, it achieved over $37.4 billion in sales and employed approximately 76,700 people worldwide. The company's brand value was estimated at $32 billion, making it the most valuable sports business brand. Nike's target demographic is primarily between 15 and 40 years old, focusing on active lifestyles and leveraging the admiration for athletes among teenagers. The brand's marketing strategy is heavily dependent on geography, adapting to local sports preferences and cultural values. Nike's products are positioned as high-quality and aspirational, with a strong emphasis on personalization and value propositions. The company's marketing campaigns are tailored to specific audiences, utilizing the power of storytelling to create emotional connections and reinforce its brand equity. Endorsements from well-known athletes and the use of social media further amplify Nike's reach and relevance.

05:02

🌐 Nike's Geographical Marketing and Brand Equity

Nike's marketing strategy is deeply rooted in geographical considerations, adapting its approach to different sports' popularity across various countries. The company has maintained a strong brand equity over the years, associating itself with victory, inspiration, and innovation. Nike's brand personality is built around a unique name, the Greek goddess of victory, and a distinctive swoosh logo symbolizing speed. The company's storytelling in advertising has been pivotal in engaging consumers, with campaigns like 'Just Do It' and 'What Our Girls Are Made Of' resonating strongly with audiences. Nike also emphasizes the importance of relevance in its marketing, ensuring that its messages connect with consumers on a personal level. Endorsements play a significant role in Nike's marketing, with partnerships like those with Tiger Woods and Michael Jordan significantly boosting the brand's value. The company's focus on product innovation and performance improvement has been a key driver of its success, with a history of creating lightweight, high-performance footwear that aligns with consumer needs and trends.

10:02

📈 Nike's E-Retailing and Social Media Marketing

Nike has been successful in transitioning to e-retail, focusing on direct-to-consumer sales for better profit margins and customer relationships. The company has shifted its strategy to prioritize online sales, with digital channels now accounting for a significant portion of its revenue. Nike's online shopping experience is designed to be user-friendly, with features like bold branding, smart product suggestions, and loyalty programs. The brand's social media presence is extensive, with a strong following on platforms like Twitter and Instagram. Nike's social media strategy involves collaboration with influencers, participation in consumer conversations, and sharing stories across different platforms. The company's approach to social media marketing is to engage with its audience, create interactive experiences, and sell ideas rather than just products. This strategy has helped Nike build a strong online footprint and maintain its position as a market leader.

Keywords

💡Multinational Company

A multinational company, as defined by the script, is an organization that operates in multiple countries around the world. Nike is used as an example of such a company, with its operations spanning globally to plan, make, sell, and market a variety of products including shoes, clothes, and accessories. This term is central to the video's theme as it sets the stage for discussing Nike's global influence and reach.

💡Fiscal Year

The fiscal year refers to the accounting period used by businesses for financial reporting. In the context of the video, Nike's 2020 fiscal year is highlighted, where the company made more than $37.4 billion in sales. This term is significant as it provides a snapshot of Nike's financial performance and growth over time.

💡Brand Value

Brand value is the perceived worth of a brand, often measured in monetary terms. The script mentions that Nike's brand alone was worth $32 billion as of 2020, up from $29.6 billion in 2017. This concept is crucial to the video's narrative as it underscores Nike's market dominance and the strength of its brand.

💡Market Share

Market share is the portion of the total market for a particular product that is controlled by a particular company. The video states that Nike has a market share of 38.2%, indicating its significant presence in the sports business. This keyword is important as it quantifies Nike's dominance in its industry.

💡Target Audience

Target audience refers to the specific group of consumers towards whom a company directs its marketing efforts. The script specifies that Nike's target audience is between 15 and 40 years old, with a focus on teenagers and middle-aged people who are active or encourage an active lifestyle. This term is key to understanding Nike's marketing strategy and how it aims to appeal to a broad demographic.

💡Active Lifestyle

An active lifestyle is characterized by regular physical activity and a focus on health and fitness. The video mentions that Nike's products appeal to people who live an active lifestyle, which is a strategic choice to align with their brand image. This concept is central to the video's message as it ties into Nike's marketing efforts and product design.

💡Geographic Marketing

Geographic marketing involves tailoring marketing strategies to suit different regions or countries. The script explains that Nike's marketing plan is heavily based on geography, adapting to local sports and cultural preferences. This keyword is important as it demonstrates Nike's strategic approach to global marketing.

💡Product Line

A product line refers to a group of products that are closely related and满足 similar consumer needs. The video discusses Nike's product line, including high-quality, fashionable products, and the Nikei product line that allows customers to personalize their shoes. This term is significant as it showcases the breadth of Nike's offerings and its commitment to innovation.

💡Brand Equity

Brand equity is the value that a company gains from a product or service associated with its brand name and logo. The script mentions that Nike has strong brand equity, built over many years through its unique personality and trustworthy image. This concept is vital to the video's theme as it highlights how Nike's branding contributes to its success.

💡Storytelling

Storytelling in marketing involves creating narratives to engage consumers and build emotional connections. The video emphasizes Nike's use of storytelling in its advertising, such as the 'Just Do It' campaign and the story of marathon runner Walt Scott. This keyword is central to the video's message as it illustrates how Nike creates compelling narratives to resonate with its audience.

💡Endorsements

Endorsements refer to the act of supporting a product or service by a well-known personality. The script discusses Nike's use of endorsements, such as deals with Tiger Woods and Michael Jordan, to boost its brand value. This term is important as it shows how Nike leverages the influence of famous athletes to enhance its market presence.

💡Product Innovation

Product innovation is the process of developing new or improved products. The video mentions Nike's focus on product innovation, such as the development of the Air Zoom shoe and the incorporation of technology to enhance performance. This keyword is significant as it highlights Nike's commitment to staying ahead in the market through continuous improvement and innovation.

💡E-Retailing

E-retailing refers to the sale of goods and services over the internet. The script notes Nike's shift towards e-retailing and direct-to-consumer sales, which has increased its profit margins and allowed for better customer relationships. This term is important as it reflects Nike's adaptation to changing consumer behaviors and the growing importance of online shopping.

Highlights

Nike is a leading multinational company in the sports industry, with global sales of over $37.4 billion in 2020.

The Nike brand was valued at $32 billion in 2020, making it the most valuable sports business brand.

Nike's market share stands at 38.2%, highlighting its dominance in the industry.

Nike's target audience is between 15 and 40 years old, focusing on active lifestyles.

Nike's marketing strategy is heavily based on geography, adapting to different sports in various countries.

Nike's products are positioned as high-quality and fashionable, differentiating them from competitors.

Nike's marketing campaigns are carefully crafted to reach specific demographic and psychographic groups.

Nike's products are often more expensive, but the brand's marketing justifies the cost to consumers.

Nike's marketing approach includes personalization, offering customers a unique shopping experience.

Nike's value proposition emphasizes a healthy lifestyle, with campaigns like 'Nike Running Free'.

Nike's 'Just Do It' slogan and swoosh logo are iconic, representing the brand's aspirational image.

Nike's marketing strategy relies on storytelling, evoking emotions and building brand identity.

Nike's brand equity is built on a strong name, unique personality, and trustworthy image.

Nike's endorsements and sponsorships with well-known athletes and teams boost brand visibility.

Nike's product innovation focuses on improving performance and meeting customer needs.

Nike's e-retail strategy has shifted focus to direct-to-consumer sales, increasing profit margins.

Nike's social media presence is extensive, with a strong following on platforms like Twitter and Instagram.

Nike's social media strategy includes collaboration with influencers, consumer engagement, and sharing brand stories.

Transcripts

Nike Incorporated is an American multinational  company that plans makes sells and markets shoes  

clothes equipment accessories and services all  over the world Nike is a big name in The World of  

Sports in its 2020 fiscal year the company made  more than $37.4 billion in sales and employed  

76,7 people around the world as of 2020 the Nike  brand alone is worth $32 billion making it the  

most valuable company in the sports business in  2017 the Nike brand was worth $29.6 billion and  

in 2018 mik Corporation was ranked 89th on the  Fortune 500 list of the largest US companies by  

total income Nike has a market share of 38.2 3%  Nike's target audience the people Nike wants to  

reach are between 15 and 40 years old the Brand's  main customers are teenagers who look up to great  

athletes but nikee also markets to middle-aged  people so that its success will spread to younger  

people for example parents in their 40s who like  sports can encourage their kids to live an active  

life Mikey knows that their goods are more likely  to appeal to people who are always on the go and  

live an active lifestyle this is why they focus  on this group of people when they advertise and  

sell their newest albums mik tells its customers  that its products aren't about making you look  

good as an athlete but about making you feel  good this is how it divides up different kinds  

of activity because sports are so different from  one place to the next Nike's marketing plan is  

heavily based on geography for example Nike  couldn't Market to football players in India  

Finland or the Philippines because football isn't  nearly as famous there as it is in Mexico England  

or Australia Mike's marketing strategies Mike's  marketing team plans and acts in a very smart  

way then you'll how to get the most most out of  the four Ps of marketing product price promotion  

and place by using a good mix of these things  Nik can attract more possible customers which  

will lead to more sales for the company price  nik's Goods tend to be more expensive but this  

doesn't bother customers because Nike knows how  to Market and advertise in a way that shows how  

great their products are this is very important  for customers because it lets them know what they  

are paying for place the Brand's goods are also  sold by independent resellers and retailers which  

has helped to boost sales but the brand has added  online stores and physical sites to its list of  

places to buy its products product Nike has a long  history of making highquality fashionable products  

which is not always the case with other names and  Nike is proud to keep this image that has worked  

hard to earn promotion each of Nike's marketing  campaigns is carefully made to reach a specific  

group of people even if if they have different  demographics and psychographics what makes Nike's  

marketing and campaigns different Nike is a  well-known name in The Sports World and a big  

reason for that is the way it markets itself mik  has set itself up as a good and aspirational brand  

by appealing to people's goals Comfort levels  and cultural values this has made it become  

a huge success all over the world with its just  doit slogan and swo image it has reached millions  

of people what makes Nike a great brand is its  clever set of marketing strategies Nike didn't  

become successful by chance they worked hard  to build a loyal customer base by using certain  

strategies let's look at what they did to do it  personalization customers choose highquality items  

that offer big benefits things that help them on  their own are reasons to them personalization is  

Nike's main Edge in the market it markets itself  as a high-end exercise brand by combining Cutting  

Edge technology with human psychology in order  to get more customers with the Nik BYU product  

line people can change the color of their shoes  in 2018 the newest technology made it possible  

for customers to use their phones to look at their  feet and get the right shoe size its concept shops  

which take shopping to a higher level give  customers amazing shopping experiences if  

you give your customers a personalized shopping  experience 77 % of them will pay more and tell  

their friends about you value propositions the  company's unique value offer is one reason why  

40% of customers choose Nike over competitors it  markets its goods by emphasizing a healthy way of  

life it encourages people to live a busy life  and sells its shoes as the best way to do that  

nik's running free campaign was so successful  that they quickly made a running free line to  

get people moving the marketing approach got a  lot of people interested in the product and made  

more people aware of the brand if you look at some  of Nike's older ads you can see that the company  

has been using this approach for decades it made  jogging a trend came up with a fitness routine to  

sell its gear and turned its shoes into a fashion  statement to boost sales let's now look at this  

question Mike's marketing strategy heavily relies  on geography because a it focuses on selling its  

products only in certain regions B it adapts its  marketing to suit different sports in different  

countries C it targets only specific age groups  in different locations D it promotes its products  

in different languages based on the region write  your answers in the comment section below brand  

Equity Mike is one of the few companies that has  been at the top for a long time this is because  

it has a strong name it has established its place  in the sports Market by building a strong brand  

a unique personality and a trustworthy image  since its beginning in 1964 Mike has tried to  

be linked to things like inspiration success  and new ideas to do this they started with a  

unique brand name and image they chose the name  of a Greek goddess who stands for victory and  

the swoosh logo which stands for Speed it worked  with well-known athletes to boost the value of  

its products and ran ads that inspired people to  buy its goods millions of people use its image as  

a sign of their social standing your brand Equity  makes people think that your goods are worth more  

it lets you improve the image of your brand and  charge more for your goods storytelling the most  

important part of Nike's marketing approach is  advertising that tells a story and makes people  

feel something it's how it first got people's  attention built its image and still shows what  

the brand stands for today when Nik first started  its just to do it and in 1988 it told the story  

of 80-year-old marathon runner Walt Scott in a  simple way it's still uses the ad which was one  

of its most successful ways to get people to buy  its products it's what our girls made of Campaign  

which pushed sports for women got 3 million views  because of its positive message its find greatness  

ads helped it get 55% more members and make $56  million more money the two examples of above are  

just two of many Nike uses social and sometimes  controversial topics to get people's attention  

and get them to act relevance is an important part  of promoting and Nike makes sure to include this  

in their marketing efforts if people can connect  to the main idea and moral lesson of the ads the  

message will stick with them it's one of its most  successful tactics and has made a big difference  

in how people think of the brand it is now the  main way it markets itself in endorsements most  

of the time Nike sells its sports gear through  sponsorships and endorsements it spends billions  

on sponsorship deals with well-known players and  sports teams to get its name out there in Nike's  

marketing plan famous people and people who have a  lot of impact are important by working with people  

who have been down the same road as the brand  communication about the company will be improved  

the brand gives money to certain competitors this  is because people look up to those who have been  

through hard times and come out on top Tiger Woods  a big name in Gulf and the company signed a deal  

in 1996 that made the brand worth $22 million more  after just one game it has 4.5 million members and  

makes a lot of money on its own because it has a  deal with Tiger Woods its well-known relationship  

with Michael Jordan is another great example of  how well its advertising strategy has worked to  

date it has made an average of four billion dollar  per year from this strategy the value of mik's  

brand is also helped by endorsements because  it was linked to NFL star Colin Kaepernick all  

of its true to seven shoes sold out in just a few  hours large amounts of money for events or leisure  

activities get your name in the media and let you  talk to people in person which you can't do with  

online marketing product Innovation people often  say that Nike's product strategy works because it  

focuses on making things better and improving  performance the company thinks about what its  

customers want and changes its features to fit  the current trends because of this its customers  

almost always have good things to say about the  items it sells Bill Bowerman who started the  

company was a track and field teacher who wanted  to make Souls that might help runners run faster  

his study led to the moonshoe which showed that  people wanted shoes that were light nikei also  

adds different things to its products to to stay  ahead of the competition it has both fashion  

and athletic clothes because of this approach  the size of its Market has grown and has also  

attracted New Market categories every year Mike  makes its goods more valuable by coming up with  

new designs because of this its products are very  high quality and new e- retailing as a well-known  

retailer around the world mik depends a lot on  bulk sales but if you look closely you'll see  

that it has put a lot of money into its systems  for selling directly to Consumers because they  

offer a better profit margin and also make it  easier to build relationships with customers  

since many years ago mik has always offered its  products through reputable stores like Macy's and  

Urban Outfitters but as online shopping grew  in popularity it learned about the benefits  

of direct to consumer marketing and shifted its  focus to e-commerce sales since then its d2c sales  

have gone from 15% to 30 8% it changed its whole  marketing strategy in 2017 and started cutting  

ties with a number of important Partners to focus  on its stores and online shops as a result of the  

move it gained millions of customers through  its shopping app and online stores M promises  

that shopping online will be easy fun and  stress-free M's online shopping site has  

a lot of great features bold branding on websites  smart products suggestions detail oriented product  

filtering loyalty programs at the moment Nike  thinks that internet channels will make up 50%  

of its sales marketing on social media by far the  most people follow Nike on social media because  

it is the most well-known brand in the world  most of what it posts gets good comments from  

its followers and about half of what it tweets is  shared more than once look at Nike's social media  

pages to see how much the company has has grown in  popularity on Twitter 9.7 million people follow it  

and on Instagram 279 million people do these are  the two sites with the most followers across all  

social media sites more than 300 accounts are kept  up to date many big companies do have power over a  

lot of sites but Niki takes it a step further by  making different pages for its products different  

types of customers and different parts of  the world this lets it quickly create ads  

that reach the right people and send them to its  product websites it keeps its fans very happy by  

giving them interactive tasks by making programs  like the chance and fuel your team Nike connects  

directly with its fans gets a lot of attention  and grows its reach Mike's plan for marketing on  

social media includes the following collaborate  with well-known people participate in consumer  

conversations using user generated material share  your stories on different social media sites most  

of Nike's social media strategies are not that  different from those of other big companies  

it has only been able to build a stronger online  footprint by using tools for interacting on social  

media so if you want to use Nike's marketing  strategies you need to figure out who your target  

audience is how to reach them and what they need  from you also remember to sell ideas not things