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Digital marketing of Nike

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This is an analysis on digital marketing strategy of NIKE. This presentation is uploaded by students of MISB Bocconi 2012-2014 batch.

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Digital marketing of Nike

  1. 1. By-Anand Narayanan Amit Mehta Kartik Kapoor Rakhi Vipat Sagar Manekar Smiti Mohan
  2. 2.  There is no single “best shoe” and everyone has different expectations. Following are the major categories on which shoes selections are made:- Biomechanics Shape of the Weight Individual’s Individual’s Individual’s Individual’s The surface on feet which one runs People with normal foot require stability shoes People with Flat foot require motion control or high stability shoes People with High-Arched Foot require cushioned shoes
  3. 3.  According to the research done on the responses obtained from customers on why shoes are important we found the following results. Results are based on 50 responses obtained The number represent the no of people for a particular response. Responses 16 5 4 11 2 3 2 5 2
  4. 4. Avg Mention time in Social Media in mins350 300300250200 Avg Mention time150100 50 40 2 7 7 0 Adidas Nike Reebok Puma Fila Time interval between consecutive mentions in Social Media
  5. 5.  Nike has made many campaigns and advertisement with many famous Athletes for promotion. These advertising builds on the globalization of sports culture Some of these campaigns are: I would run Find your Parallel My Time is to you greatness Journeys nowViews 2,661,655 5,380,412 880,502 1,799,581Likes 12457 9545 463 4138Comments 2527 1260 31 846
  6. 6. Ni ke sub brands Brand AmbassadorSpace Ci ty Kobe Bryant. Kevi n Durant. LeBron James FaceBook: Li kes 24315, Coments: 1111, Share: 2813 Googl e+: +1s: 629, Reshares: 95, Comments: 200 Ni ke Total +1s: 381197 Twi tter: Retweets: 178 Pi nterest: 15 Li kes, 30 pi nsFl ykni t Lunar1+ Facebook: Li kes: 4538, Commentss: 253, Shares: 315 Revi ews: 5 Star: 25, 4Star: 15, 1Star: 5 Twi tter: Retweets: 150 Pi nterest: Li kes: 350, Repi ns: 100New Mercuri al Vapor IX Cri sti ano Ronal do Amazon Revi ews: 5 star: 15 Twi tter: Retweets: 402 Pi nterest: Li ke: 15, Repi ns: 25Kobe Bryant shakes and bake Kobe bryant Googl e+: +1s: 300, Reposts: 125 5 Stars: 100, 1 Star: 56 Twi tter: Retweets: 0 Pi nterest: Li kes: 10, Repi ns: 17Ai r Max Lebron James Googl e+: +1s: 356, Reposts: 137 Amazon Revi ews: 5 stars: 67, 1 Star: 36, 2 star: 23
  7. 7. Geography Age group Income level Customer typeUS 15-35 High, Medium, Athletic, Baseball Low players, fans & Fashion consciousEurope 12-35 High, Medium, Football players, Low fans & Fashion consciousIndia 15-35 High, Medium Cricket players & fansRest of the world 12-35 High, Medium Athletic, Football players, fans & Fashion conscious
  8. 8.  Recent trend, Age 12-15 Children are the growing due to European football craze and desire to train for football. Customers look up to Nike for motivation for their athletic activities and active lifestyle. Millions of Americans started to adore an active lifestyle and consider Nike shoes as their first step for an active lifestyle. Generation Y customers look for ever changing products and thus Nike is their best fit as it has a broader product line and upgrades the models regularly. Nike targets customers who already have an active lifestyle or who would like to have an active lifestyle.
  9. 9. Positive NegativeNike Jordon Shoes people find that not only for Mismatch between customer needs and Basketball these shoes are great but also they product offering. Example: Nike Free Run+ 3 are great for wearing with jeans and shorts Men’s Running Shoes are promoted as running shoes. However it is more comfortable while walking than in running Innovative shoes with the best adaptable technology Product Quality not up to Standards: Nike Air Max Shoes have been reported to have low quality. After usage of 2-3 times Nike shoes are falling apart, this is a big safety concernMotivates me to never drive and instead walk to wherever I need to go because they are so comfy. Love the style and simplicity of them. Nike website did not entertain a customer query, since the POS is not a Nike store, it is Wal-Mart. Good Quality, Light Weight and Quite Comfortable
  10. 10. Type Positive attribute Negative attributeSpace City spectacular No mention of cost impressed by players endorsing it Need Better Colors: Too loud Comfortable main focus is on basketball fans Very Roomy compared to Puma Reminds of the 90sFlyknit Lunar1+ Preference of LeBron "Clown Shoes"- Poorly Shaped Nike "Trying too hard"New Mercurial Vapor IX Every1 prasing the brand , as a whole Fans making jokes regarding this They do not connect with the product and rather , they speak abt lossing weight by dieting rather than working out Fashion Statement Foot Discomfort from wear Customers Ready to Repurchase Even after 1 pair Too PriceyKobe Bryant shakes and Prompt Response by Nike Twitter Teambake Favoured and Retweeted Nike Flyknit Lumar1+ Campaigns on Twitter Very comfortable Low avaiability in Washington DC Quick response by Nike Football to queries Colors are too flashyAir Max Great Engineering The free shoes publicity too cheap and don’t go with Favorable publicity for the shoes at a match by Walcott & Dempsey -
  11. 11. Strategy of NikeWho? •Age Group: 15-35 •Athletes, both women and men; •People who love sports and exercisingWhy? •Increase sales, through creation of user generated content on social media platforms like Facebook, Twitter, Pinterest, Google+ •Customer Support by addressing customer queries and grievances over Twitter by Nike online team on one-to-one basis; •Creating awareness of new products. Eg: Nike Air Max, Nike Golf (2232 Likes) •Brand loyalty promotion through promotion of repeat buys by customers. Eg: Convert users of Nike AirMax 2010 to a user of Nike AirMax 2011 •Reputation building by way of hiring ambassadors that are relevant to the times and reputable. Eg: Replacement of Tiger Woods during the scandal. •Brand advocacy by making the athelets that are leaders of that sport actually wear Nike shoes on field. Eg: Tiger Woods, Cristiano RonaldoWhat? • Promotional Campaigns; • Catalyze generation of user content; • Creation of global point of sales and center for after-sales; • Creation of a sense of “Sports Community connected by Nike”; • Directly communicate with the consumers; • Creation of high quality of customer experience.Where • Global connection through a network of 557 retail connections across 200 markets • Use of twitter and Nike official websites for multiple purposes: Direct one-on-one communication? with consumers by Nike, point of Sales, for mass product promotion, and creation of a sense of “community” among consumers; • Use of Social Media for spreading promotion of promotional campaigns; • Sale of products through indirect sales over, Pinterest; • Supplement PR campaigns like the World Cup matches at NikePark
  12. 12.  Advertising at specific sports cultures Nike both embraces niche marketing while also affirming its own ideology, that it is a product- driven corporation that responds to the specific needs of athletes; Its commercials rarely demonstrate products or give product information. Nike ads concentrate on hailing viewers about the aesthetic practices of each sport subculture; Nike focuses on the subcultures of sport those already existent communities of meaning that share values, linguistic codes, rituals, jokes, heroes, concerns, commodity signs, and networks; Nike appears to "speak the voice" of these subcultures as an insider, speaking to other insiders who share a set of recognized signs. The humor, tone of voice, and issues addressed in these ads give Nike an authentic voice. This permits Nike to insert itself as a legitimate part of that sport subculture; In this sense we see Nike advertising constructing sports as cultural practices and then inserting the product, the swoosh and Nike philosophy into those practice;
  13. 13.  People dont concentrate their emotional energy on products in the way fans abandon themselves to the heroes of their games. But great products are the key to great athletic figures. This creates customers who are like fans; The products are perceived as something compelling and profound. What differentiates Nike most from Reebok, Puma or Fila are the ways in which Nike represents its athletes. Industry watchers readily agree that Nike has achieved a degree of authenticity that its competitors have not. When Nike represents an athlete in its commercials, there is a sense we are getting the real thing. Nike seems to respect its athletes as people, permitting them to display their own personalities. While its advertising connects elite athletes to the Nike brand, it also creates space for the rest of the consumers. Nike advertising celebrates transcendent values in ordinary people. Indeed, if all Nike did was to extol great athletes, it would probably find itself in a neck and neck race with the Reeboks of the industry. Instead, the Nike swoosh has come to stand for the athlete in all of us. This takes us back to what we have called Nikes motivational discourses. Over the years Nike has aligned its campaigns not only to the respective target audience but also the product, brand personality, stature of the ambassadors and sports spirit. Nike has successfully leveraged its "fan following" to spread all forms of brand messages
  14. 14. The Nike Free Run+3 is part of acollection of Nike Free shoes Nike Freetechnology emulates natural motion byallowing the shoe to move with thebody.Love makes people do crazy things--likerun across the country. And sing whilethey’re doing it.How running reunites a long distancecouple, thanks to the help of the NikeFree Run+ 3.Strong runner can sing while running
  15. 15. Challenge runners to test their strengthby singing to a special “Nike FreeRunning Karaoke” mix.
  16. 16. Products and Support Services NikeCampaigns: Nike CustomerOnline and Experience Interactions Offline Nike Website
  17. 17. Nike Good Customer Experience EvaluatiuonAccessibility Easy to navigate website; Presence at most social media channels; Fostering of communication between customers as well as with Nike;  Easy access to most promotional material and participation in contestsProduct Offering High availability of products across points of sale; Reasonably priced, high quality and technologically advanced products;  Large range of products;  Quick customer query/ grievance redressal mechanism – online and offline; Choice of customization easily accessible through the website;  Continuous up-gradation and innovation of productsEmotional  High brand salience;  Connection of the name “Nike” with respect and quality;Quotient  High emotional identification of customers with brand ambassadors of the respective product categories;  Very high brand loyalty continuing over decades;  Promotion of entire sport relevant to the specific country rather than just products, to fire customers’ passion; Association of company with promotion of social causes supportedConsistency  Consistent marketing communications across channels;  Smooth and natural connection of online and offline promotional content;  Consistency of marketing communications with business goals and values upheld
  18. 18. Nike Bad Experience EvaluationAccessibility × Over-reliance on Twitter for communications and sales; × Low communication regarding Limited Edition products and customization options; × Low opportunity to customers to reach out to Nike apart from TwitterProduct Offering × Pricing consistent globally, with very few differentiation, which may be too high considering the market standards, like in India; × Colors of apparel and footwear may be the cause for typecasting or stereotyping; × Lower access to customization and limited edition products in certain markets like IndiaEmotional × Low emotional connection of the brand in certain new and emergingQuotient markets due to different local sport preferences. Eg: India favors cricket and Nike is perceived as inactive in the sport; × Consumers connect to the brand ambassadors more than product or Nike company, which may be dangerous for Nike × The social media monitoring of Nike reflects the colors of racism or prejudice towards certain lifestyles, thus hurting their sensitivity unintentionally. This may be attributable to the choice of ambassadors or even the product attributes. Eg: Bright pink shoes were associated with the Blacks or the gay community.Consistency × Nike promotional messages are inconsistent to a small extent between the various sub-brands of products; while some focus on the product itself (eg: Nike AirMax), some others focus more on the sport (eg: Kobe Bryant shakes and bake collection)
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This is an analysis on digital marketing strategy of NIKE. This presentation is uploaded by students of MISB Bocconi 2012-2014 batch.


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