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.TRANSCRIPT
Digital Marketing at NikeBy-
Anand Narayanan
Amit Mehta
Kartik Kapoor
Rakhi Vipat
Sagar Manekar
Smiti Mohan
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
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
Passion for Different Brands- Index
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
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
Social Media Presence Data
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
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
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
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
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
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Customer Feedback
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
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;
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
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.
Social Media
Campaign
Challenge runners to test their strength by singing to a special “Nike Free Running Karaoke” mix.
Creating Buzz
Impact@Social Media
Impact@Social Media
Nike Experience Evaluation
The Nike Experience
Nike Experience
Products and Support Services
Customer Interactions
Nike Website
Nike Campaigns: Online and
Offline
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
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)
Thank You