Changing The Game: A Nike Marketing Case Study

Admired by professional athletes and those simply searching for a high-quality and comfortable pair of sneakers, Nike is one of the most globally recognizable sportswear brands. The athleisure brand owes its widespread notoriety in large part to its marketing strategy, which goes beyond an iconic Swoosh logo and famous tagline (although those elements are crucial). Learn more in this comprehensive overview of the Nike branding strategy and gain inspiration to make your brand memorable.

History of Nike

The idea for Nike began cooking in the 1950s, when Bill Bowerman, a track-and-field coach at the University of Oregon, was experimenting with innovative running shoes that gave his team a competitive edge. He struggled to get buy-in from manufacturers, until Phil Knight, a former runner who Bowerman had coached, suggested importing quality yet cost-effective shoes from Japan in 1955.

Knight became Bowerman’s partner when they opened Blue Ribbon Sports in 1964. The company was distributing Japanese Tiger shoes throughout the U.S., with Bowerman improving shoe designs and Knights spearheading sales.

The partners hired their first full-time employee in 1971 – Jeff Johnson. Johnson would handle marketing tasks and store operations. It was also this year when the company rebranded as Nike, a name inspired by the Greek goddess of victory. This name evokes the sense of empowerment that the brand still seeks to instill in its target audience.

Around the same time, Nike’s partnership with the Japanese supplier ended, encouraging the partners to begin designing and producing shoes themselves. Nike introduced the Swoosh logo, which has remained the instantly recognizable face of the brand to this day. In 1972, the company debuted its first line during the U.S. Track and Field Trials, positioning its products uniquely as athletic footwear. Between their lightweight construction and soles designed for performance, these running shoes impressed athletes – and haven’t stopped standing out.

What Is Nike’s Mission Statement?

To bring inspiration and innovation to every athlete in the world. This is the mission that guides everything Nike does. Like the Swoosh, this mission statement is to-the-point easy to remember yet says so much more.

Inspiration

Athletes must go through extensive training to become the stars they aspire to be. Nike seeks to motivate athletes at all levels – from those just starting out to the pros – encouraging them to push past boundaries that limit them and realize more of their potential. It’s why the brand often uses athlete endorsements for their marketing campaigns, as their target audience sees the best of the best touting how Nike helps them achieve athletic goals. Perhaps the clearest indication of Nike’s commitment to inspiration is the slogan – Just Do It.

Innovation

Before it was even Nike, innovation has been the foundation for the sportswear company. Nike is non-stop in its efforts to break new ground in creating cutting-edge products. Its running shoes have helped some athletes make history, such as Kenyan runner Eluid Kipchoge in completing the marathon in just under two hours.

Inclusivity

There’s an asterisk to that mission statement next to the phrase every athlete – If you have a body, you are an athlete. Nike widens its customer base to suggest that everyone has athletic potential, from those training for the Olympics to sports enthusiasts or those who simply want to be more active. Although running shoes might be what the brand is known for, Nike products include a wide assortment of athletic and athleisure appeal. Their lineup features items tailored to athletes of different skill levels, goals, and body types.

Who Is Their Target Audience?

Effective marketing is only possible when the company understands its target audience. As mentioned, inclusivity is a core value of Nike’s, which naturally inspires a diverse customer base:

Professional Athletes and Sports Enthusiasts

With products intended to enhance athletic performance, it’s no wonder that the pros and sporty people flock to Nike. Although its target markets include athletes of all sports, Nike has maintained dominance among runners, including those who’ve participated in multiple marathons to those who enjoy a morning jog. Putting on Nike apparel is putting on a mindset of achievement – no matter what your skills or goals.

Athletic Women

Part of what makes playing sports such a great activity is that it brings everyone together. Men and women share the same desire to reach top performance and meet (or exceed) their goals. Yet, not everyone has the same experiences as athletes or active people, and Nike understands their marketing approach may need to be different to reach women in sports. Nike has already and will likely continue to devote more marketing efforts to empowering this growing segment.

Young Athletes

We hear countless stories of gold-medal-winning Olympians beginning their training at a single-digit age. As these athletes continue their training and show more promise, Nike seeks to foster an emotional connection with this segment, showing them that the brand is by their side as they grow and meet and set new goals throughout their athletic careers.

Eco Conscious Athletes

Nike has increasingly developed environmental initiatives to convey a commitment to sustainability. By incorporating sustainability into its marketing campaigns, Nike seizes the overlapping segment of environmentally conscious consumers.

How Has Nike’s Branding Evolved?

Nike’s influence spans decades, and its staying power reflects the company’s understanding that dynamic branding is essential to remain competitive. Discover some tactics employed over the years that have shaped the Nike branding strategy:

Celebrity Endorsements

Nike had athlete endorsements before it went public in 1980, but it was the partnership with basketball legend Michael Jordan that helped revive the brand following challenges in the mid-1980s. More than a high-profile endorsement, having Jordan be part of their campaigns helped Nike develop emotional connections with customers.

Just Do It

The iconic slogan was first introduced in 1988, with just three simple words expressing the company’s attitude of empowerment, resilience, and determination. Like the Swoosh logo, this tagline has become a crucial component of Nike’s brand identity.

Market Expansion

As Nike moved into the 1990s, it brought its apparel into new sports such as soccer and golf, with new partnerships waiting to reach these segments and expand their target market.

Digital Marketing

Today, digital marketing is a no-brainer for many businesses, but Nike stands out as one early to adopt this approach. It saw the opportunity to reach its customers by creating a strong presence through the internet and social media.

Image source: https://blog.logomyway.com/nike-logo/

Nike’s Marketing Mix

The four Ps of marketing is a longstanding idea you might discover in a textbook, but it’s far from outdated, as a brand like Nike indicates in how its marketing mix comes to life.

Product

For Nike, its products are synonymous with innovation. The brand constantly seeks to rethink designs, implementing technology that caters to the needs and preferences of various segments and for different types of athletes. New features and materials make Nike’s ever-growing lineup more exciting as customers search for products of exceptional quality that can boost their performance.

Price

It might seem like affordability is the way to go for every brand, but sometimes consumers will pay more if they think it’s worth the price. According to research from Marketing Charts, 46% of consumers claim they would pay more for high-quality products, and brands like Nike take notice of this trend.

Nike employs a skimming pricing strategy where it charges more than its competitors to capture the portion of the target market willing to pay premium prices for better quality. In addition to helping Nike boost profitability, this pricing strategy reflects Nike’s brand image. Premium prices mean paying for the performance you need to succeed. So, it’s not just higher prices for the sense of exclusivity – it’s the value of these products that make them worth the cost.

Place

Where can you buy those premium running shoes? Because of Nike’s approach to place, you’ll find them in many locations, both physical and digital. Like many name brands, Nike partners with retail businesses so that their products appear in stock at sporting goods and department stores, as well as ecommerce platforms. However, the company also sells directly to consumers with its own retail locations, plus an ecommerce site and mobile shopping.

This two-pronged approach allows Nike to maximize the benefits of both. By selling through direct-to-consumer channels, it has more control over its brand image and the customer experience. It becomes easier to personalize experiences, both in-store and online, and build brand loyalty. At the same time, selling through retail partners ensures Nike products are available to more people and can bring customers to their offerings by relying on the brand recognition of big retailers.

Promotion

Nike has a product to sell at premium prices with multiple locations for consumers to buy. The last step is to promote these offerings, and the athletic company has a multifaceted approach to increase visibility and engage its audience. Aspects of the Nike advertising strategy include:

• Content marketing: True to its values, Nike’s content marketing comprises written (blogs), video, and interactive materials intended to inspire customers as they purse more active lifestyles.
• Digital marketing: Leveraging some of the most popular social media platforms such as Instagram and YouTube, Nike shares information about products and brand development. Social media also offers a great opportunity to share user-generated content (UGC) to motivate the target audience with stories from real-life customers.
• Sponsorships/athlete endorsements: Alongside its logo and slogan, Nike is also well-known for partnerships with some of the highest-achieving professional athletes and sports teams. Beyond increasing brand awareness, these partnerships increase Nike’s credibility within the sports world.
• Influencer marketing: An extension of the social media strategy, Nike taps into partnerships with online personalities who have considerable influence over their following. These could be pro athletes or individuals who rise to fame started through social media.
• Experiential marketing: Advertisers never stop exploring new ways to resonate with target audiences, and experiential marketing offers one of the most innovative approaches. Nike is uniquely positioned to engage customers this way, as their business centers around physical activity. Initiatives such as Nike Run Club and Training Club bring customers together and increase brand visibility.
• Segmentation strategy: With such a diverse audience, Nike understands it must tailor messaging according to different factors, such as demographics, geographical location, lifestyles, and sports/athletic pursuits.
• Public relations: An American multinational corporation, Nike has had its fair share of controversies, but a strong public relations strategy enables the company to handle these situations swiftly and with transparency to avoid significant reputational damage.
• Retail efforts: Marketing strategies often focus on what happens before potential customers enter the store, but in-store experiences still matter. Nike strives to personalize these experiences, showcasing products and their benefits and features, plus offering additional services.

The Nike Customer Experience

Marketing strategies often emphasize how a brand seeks to pull new members of the target market in, but what turns them into loyal customers? A good experience is paramount. According to some statistics, 74% of consumers claim that experiences alone influence their intent to buy. Nike’s perspective on customer experience has helped the brand become more than just a company selling products to one that makes lasting connections with a loyal customer base. Here are some ways how:

• Nike app: Customer access NikePlus rewards, the brand’s loyalty program, through the app. In addition to exclusive offerings, customers gain advice from Nike experts and personalized workouts, plus priority access to special events. On Nike’s end, this app further enables the company to customize experiences.
• House of Innovation: Nike has transformed select flagship stores into one-of-a-kind experiences that combine physical and digital aspects, such as interactive wall displays and virtual dressing rooms. House of Innovation offers a shopping experience that goes a step further than what customers are used to, and it can build their loyalty to the brand.
• Nike+ activity tracker: This device allows users to keep track of their athletic activity, such as distance on walks/runs, via their smartphones or on the website. Beyond helping customers understand their progress, Nike+ connects them with other athletic people over forums and provides virtual challenges to keep them motivated.
• Live stores: This innovation revitalizes the shopping experience, exchanging traditional retail elements for aspects like rotating product displays, consultation services, and even local artwork. Between their atmosphere and unique offerings, Nike Live stores create an unparalleled customer experience.

Noteworthy Collaborations

We’ve discussed that partnerships and celebrity endorsements are key components of Nike’s marketing strategy, and the brand has had some historic collaborations over the years.

Arguably the most well-known partnership came when Nike was building its brand identity and Michael Jordan was at the beginning of this NBA career. For Nike, the realize of the Air Jordan shoe marked a shift from offering only running shoes to expanding into apparel for other sports. Today, it’s hard to imagine a world where the brand and basketball star aren’t household names, and both can owe some success to this campaign.

Recognizing the success of Jordan’s endorsement, Nike pursued a partnership with another all-star – Tiger Woods. Woods was already making waves within the golfing world, but when Nike’s ad campaigns featuring the golfer aired, it increased his fame even more. These ads coincided with the introduction of Nike’s Golf collection, including Wood’s signature Nike Air Zoom TW/T-Range. Keeping in line with the brand’s mindset, these shoes innovated the standard golf shoe that moved away from the stereotypical country club look to evoke a modern style.

As the relationship continued, the Nike brand became more and more a part of Woods’ game, with the Swoosh appearing on golf balls and clubs. The collaboration hit a rough patch when allegations into Woods’ personal life jeopardized most of his brand deals, but Nike remained a partner, even helping him confront the crisis in a commercial.

The Jordan and Woods endorsements are two of the most memorable, but certainly not the only collaborations Nike has pursued. Athlete endorsements have come from several of the most renowned basketball players like Lebron James, Kevin Durant, and Kobe Bryant. Nike branched out into the tennis space by partnering with Roger Federer and Serena Williams, plus soccer alongside Cristiano Ronaldo. Nike has even pursued celebrity endorsements outside the sports arena with people like singer-songwriter Travis Scott.

8 Famous Nike Campaigns Through the Years

The most effective marketing strategies are those that feature a mix of techniques and channels, yet one can’t deny the power of the commercial. Video ads can be humorous, heartfelt, inspiring, or evoke any other emotion, and they’re always creative. Check out some of the most famous Nike ads:

1. I Am Not A Role Model (1993)

What Made It: Starring Charles Barkley, this ad doubles as a PSA and surprised audiences. Filmed in black and white with closeup shots, the ad captures the rawness of the message. Barkley isn’t a role model, he’s an athlete, and his number one goal is to reach his full potential on the court. Controversial yet captivating, the ad showcases Nike’s ability to use the athlete endorsement as more than a spokesperson.

2. If You Let Me Play (1995)

What Made It: This ad doesn’t feature any sports stars, instead shifting focus to numerous girls and young women explaining the impact sports can have on their lives. This ad is a great example of market segmentation. Nike indicates it sees the concerns of women in sports while also conveying what it means for any human to be an athlete.

3. Failure (1997)

What Made It: It makes sense that such a memorable partnership would create such a powerful ad. “Failure” shows Michael Jordan making his way to the back of arena after the game. He reflects on his lost shots and games he didn’t win. It’s a reminder that “Just Do It” isn’t always as easy it stars like Jordan might make it appear. The message is still the same, as great success often involves failure along the way.

4. Tiger Juggling (1999)

What Made It: Nike wants to inspire, but that doesn’t mean it can’t amuse. This ad shows Tiger Woods juggling a golf ball with the club, moving the club around at the same time. At the very end, as the ball is in mid-air, he strikes it with expert form. It’s simple, fun, and doesn’t miss an opportunity to highlight an athlete’s abilities.

5. Courage (2008)

What Made It: Airing during the 2008 Olympics, “Courage” combines athletic imagery with natural, cultural, and abstract elements, all while the song “All These Things That I’ve Done” by The Killers plays. At the very end, the slogan appears across the screen. The commercial gives a wider understanding of what it means to “Just Do It” and how that concept manifests in all areas of life on Earth.

6. Find Your Greatness (2013)

What Made It: We’ve mentioned that Nike’s mission statement has an extension. If you have a body, you are an athlete. It’s this commercial that highlights this idea. It just shows a jogger – not a pro athlete – pushing themselves to achieve personal greatness. The simplicity of the ad speaks to the power of its message.

7. Worth The Wait (2016)

What Made It: This ad captures a moment in time when the Cleveland Cavaliers made Northeast Ohio proud by winning the 2016 NBA Finals. Here, Nike reminds viewers of the emotional connection sports fans have to their teams as the brand seeks to resonate with its target audience.

8. Winning Isn’t For Everyone – Am I A Bad Person? (2024)

What Made It: One of the more recent commercials on this list, the ad features numerous professional athletes in the middle of games, matches, and races. Voiceover from actor Willem Dafoe has him listing less-than favorable character traits, which would seem negative if it weren’t juxtaposed with the stern faces of competitive athletes. It reminds us that in the field, on the court, and in the ring, perseverance and resilience can come through in unexpected ways. It leans on the being controversial while recognizing its core audience of active people understand exactly the feeling.

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