Nike: Marketing Strategy of Nike
Summary
TLDRNike, 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
💼 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.
🌐 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.
📈 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.
Mindmap
Keywords
💡Multinational Company
💡Fiscal Year
💡Brand Value
💡Market Share
💡Target Audience
💡Active Lifestyle
💡Geographic Marketing
💡Product Line
💡Brand Equity
💡Storytelling
💡Endorsements
💡Product Innovation
💡E-Retailing
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
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