digital marketing of nike

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Digital Marketing at Nike By- Anand Narayanan Amit Mehta Kartik Kapoor Rakhi Vipat Sagar Manekar Smiti Mohan

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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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Page 1: Digital marketing of Nike

Digital Marketing at NikeBy-

Anand Narayanan

Amit Mehta

Kartik Kapoor

Rakhi Vipat

Sagar Manekar

Smiti Mohan

Page 2: Digital marketing of Nike

There is no single “best shoe” and everyone has different expectations.

Following are the major categories on which shoes selections are made:-

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

Customer ExpectationsIn

div

idu

al’

s Biomechanics

Ind

ivid

ual’

s Shape of the feet

Ind

ivid

ual’

s

Ind

ivid

ual’

s WeightThe surface on which one runs

Page 3: Digital marketing of Nike

Customer Expectations 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.

Comfo

rt

Avoid

Inju

ries

Supp

ort

Balan

ce

Prov

ide

trac

tion

Cushi

on

Prov

ide

spee

d

Stat

us

Styl

e

5

16

42

11

32 5

2

Responses

Page 4: Digital marketing of Nike

Passion for Different Brands- Index

Page 5: Digital marketing of Nike

Average Mention Time

Adidas Nike Reebok Puma Fila0

50

100

150

200

250

300

350

40

2

300

7 7

Avg Mention time in Social Media in mins

Avg Mention time

Time interval between consecutive mentions in Social Media

Page 6: Digital marketing of Nike

Viral Content and Information 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 to you

Find your greatness

Parallel Journeys

My Time is now

Views 2,661,655 5,380,412 880,502 1,799,581

Likes 12457 9545 463 4138

Comments 2527 1260 31 846

Page 7: Digital marketing of Nike

Social Media Presence Data

Page 8: Digital marketing of Nike

Social Media Presence DataNike sub brands Brand Ambassador

Space City Kobe Bryant. Kevin Durant. LeBron James

FaceBook: Likes 24315, Coments: 1111, Share: 2813

Google+: +1s: 629, Reshares: 95, Comments: 200 Nike Total +1s: 381197

Twitter: Retweets: 178

Pinterest: 15 Likes, 30 pins

Flyknit Lunar1+ Facebook: Likes: 4538, Commentss: 253, Shares: 315

Amazon.com Reviews: 5 Star: 25, 4Star: 15, 1Star: 5

Twitter: Retweets: 150

Pinterest: Likes: 350, Repins: 100

New Mercurial Vapor IX Cristiano Ronaldo

Amazon Reviews: 5 star: 15

Twitter: Retweets: 402

Pinterest: Like: 15, Repins: 25

Kobe Bryant shakes and bake Kobe bryant

Google+: +1s: 300, Reposts: 125

Amazon.com: 5 Stars: 100, 1 Star: 56

Twitter: Retweets: 0

Pinterest: Likes: 10, Repins: 17

Air Max Lebron James

Google+: +1s: 356, Reposts: 137

Amazon Reviews: 5 stars: 67, 1 Star: 36, 2 star: 23

Page 9: Digital marketing of Nike
Page 10: Digital marketing of Nike

Cultures of Customers & Communities that Form the Brand’s Potential MarketGeography Age group Income level Customer type

US 15-35 High, Medium, Low

Athletic, Baseball players, fans & Fashion conscious

Europe 12-35 High, Medium, Low

Football players, fans & Fashion conscious

India 15-35 High, Medium Cricket players & fans

Rest of the world

12-35 High, Medium Athletic, Football players, fans & Fashion conscious

Page 11: Digital marketing of Nike

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.

Cultures of Customers & Communities that Form the Brand’s Potential Market

Page 12: Digital marketing of Nike

Positive

Nike Jordon Shoes people find that not only for Basketball these shoes are

great but also they are great for wearing with jeans and shorts

Innovative shoes with the best adaptable technology

Motivates 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.

Good Quality, Light Weight and Quite Comfortable 

Negative

Mismatch between customer needs and product offering. Example: Nike Free

Run+ 3 Men’s Running Shoes are promoted as running shoes. However it is more comfortable while walking than

in running

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 concern

Nike website did not entertain a customer query, since the POS is not a

Nike store, it is Wal-Mart.

Customer Feedback

Page 13: Digital marketing of Nike

Type Positive attribute Negative attributeSpace City

spectacular No mention of costimpressed by players endorsing it Need Better Colors: Too loud

Comfortable main focus is on basketball fansVery Roomy compared to Puma Reminds of the 90s

Flyknit Lunar1+ Preference of LeBron "Clown Shoes"- Poorly ShapedNike "Trying too hard"

New Mercurial Vapor IX Every1 prasing the brand , as a whole Fans making jokes regarding thisThey do not connect with the product and rather , they speak abt lossing weight by dieting rather than working out

Fashion Statement Foot Discomfort from wearCustomers Ready to Repurchase Even after 1 pairToo Pricey

Kobe Bryant shakes and bake

Prompt Response by Nike Twitter Team

Favoured and Retweeted Nike Flyknit Lumar1+ Campaigns on TwitterVery comfortable Low avaiability in Washington DCQuick response by Nike Football to queries Colors are too flashy

Air Max Great Engineering The free shoes publicity too cheap and don’t go with the product imageFavorable publicity for the shoes at a match by Walcott & Dempsey

-

Customer Feedback

Page 14: Digital marketing of Nike

Strategy of NikeWho? •Age Group: 15-35

•Athletes, both women and men;•People who love sports and exercising

Why? •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 Ronaldo

What? • 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 Amazon.com, Pinterest;• Supplement PR campaigns like the World Cup matches at NikePark

Page 15: Digital marketing of Nike

Nike Storytelling 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;

Page 16: Digital marketing of Nike

Nike Storytelling People don't 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 Nike's 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

Page 17: Digital marketing of Nike

NIKE –”I WOULD RUN TO YOU” Campaign

ConceptLove makes people do crazy things--like run across the country. And sing while they’re doing it.

Story How running reunites a long distance couple, thanks to the help of the Nike Free Run+ 3.

Relevance Strong runner can sing while running

ProductThe Nike Free Run+3 is part of a collection of Nike Free shoes Nike Free technology emulates natural motion by allowing the shoe to move with the body.

Page 18: Digital marketing of Nike

Social Media

Campaign

Challenge runners to test their strength by singing to a special “Nike Free Running Karaoke” mix. 

Creating Buzz

Page 19: Digital marketing of Nike

Impact@Social Media

Page 20: Digital marketing of Nike

Impact@Social Media

Page 21: Digital marketing of Nike

Nike Experience Evaluation

Page 22: Digital marketing of Nike

The Nike Experience

Nike Experience

Products and Support Services

Customer Interactions

Nike Website

Nike Campaigns: Online and

Offline

Page 23: Digital marketing of Nike

Nike Good Customer Experience Evaluatiuon

Accessibility 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 contests

Product 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 products

Emotional Quotient

High brand salience; Connection of the name “Nike” with respect and quality; 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 supported

Consistency 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

Page 24: Digital marketing of Nike

Nike Bad Experience Evaluation

Accessibility × 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 Twitter

Product 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 India

Emotional Quotient

× Low emotional connection of the brand in certain new and emerging 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)

Page 25: Digital marketing of Nike

Thank You