Marketing lessons from Nike
From trainers for basketball, football, running, tennis the list is seemingly limitless. Nike has been convincing us for decades that we need the latest and greatest sports shoe in order to perform at our peak.
What are some of the company’s main strategies? (aside from excellent advertising)
Right from the get go Nike was differentiated from its competitors through a waffle soled shoe design. This had never been done before and was to be the basis of later product innovations. We have the “dipped back tab” for reducing pressure on the Achilles tendon, the Air cushioned heel (which spawned a sub-brand of air Jordan and some fantastic ads see below,) even lights on the soles of shoes were Nike innovations. All of these innovations added to the image of Nike as a cutting-edge brand which would give consumers the edge over competition. Obviously celebrity endorsement helped fuel this trend through Air Jordan’s in the 1990’s.
Another interesting strategy employed by Nike is actually giving its product away for free. Sounds counter intuitive at first thought but it helped establish Nike as the consumer’s first choice, much in the same way that Microsoft gives Internet Explorer away for free. Nike donates equipment and sports gear to high school and college teams. Having top high school and college athletes using your product allows them to become indoctrinated into the brand and become lifelong supporters and having these people as lifelong supports helps the brand immensely.
A further strategy Nike employs is securing retail commitments. Developing an advanced commitment system helps the company predict sales levels more accurately as well as securing purchase commitments.
Of course Nike has been influential over the internet. Advertising Age has stated Nike’s website is a prime example of “how to put together an integrated marketing campaign.”
The website emphasises how the products relate to the individual’s lifestyle rather than going for hard sell tactics. A recent example would be the Nike+ campaign allowing consumers to upload and track their running times, reach personal bests and virtually compete with other’s scores.
the average US company spent around 4% of gross sales on marketing in the early 2000’s. Nike’s spending was closer to 10%. Says it all really.
“Can Nike still do It?” Business Week
“The Nike story? Just tell it” Fast Company
“In the vanguard: trainers, sneakers and shoes” The Economist
