Nike is a well-known force and global powerhouse within the sportswear, leisure and shoe industries. Offering options of athletic gear, shoes and sports equipment, Nike enjoys the visibility of being one of the most recognized brands in the world. Its slogan “Just Do It” has permeated minds across the world. Touting itself as fostering “a culture of invention,’ Nike looks to inspire and spark innovation across an entire population.
Nike began experimenting with social media in the late 1990s and by the year 2000 Nike started to learn the ways to connect with consumers through a medium emerging that they were trying to learn as well. Nike’s first attempt at social media was its blog Art of Speed, a move made in partnership with media website Gawker. The website featured 15 filmmakers whom give their interpretations of the idea of speed (Piskorski & Johnson, 2014). Nike continued to push its limits with new innovations such as Nike+, a partnership with its technology equal Apple, to sync an iPod with a user’s fitness data; Nike Digital Sport; Nike+ Training, etc.
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Nike’s social media marketing prowess enables it to enjoy even more positive reputation, brand awareness and for some consumers, even brand insistence. Its current promotional efforts include personal involvement and engagement with consumers, above all; CEO Mark Parker reinforced this belief by saying that creating dialogue with consumers “is also a critical element of our ecosystem” (Smith, 2014). It uses its social media to deepen the corporation-consumer relationship in the form of relying on social media and following industry trends such as moving away from more traditional media. The fact that the average costs for TV and print advertising in the United States had dropped by 40% in three years as of 2014 (Smith, 2014) could explain Nike’s advertising allocation shifting towards digital and social media.
Understanding customer value is a very important factor of business marketing and offers a proper gauge and reading of customer satisfaction. Value is defined as what customers get in return for paying the retail price of the product, not features and benefits of the product. Nike’s marketing strategy has enabled it to success because it puts the consumer at the forefront and as the literal driving force of the business; without consumer appeal and connection, buyers have no reason to come back to or even begin to purchase Nike’s products. As it looks to foster both individuality and collectivity for every athlete—meaning everyone with a body—Nike puts customer interests first and capitalizes on target markets’ strong needs, which is the need and want for a healthier lifestyle. When consumers make the decision to purchase Nike products, they, as any other consumer, is looking to make a return on their investment into the company and for the retail price.
Nike is known for having high prices for its merchandise but hardly ever failing to deliver on product quality, which makes this a double-edged sword; consumers are willing to pay these high prices for Nike’s merchandise, knowing that the prices will probably go up, but understanding that the quality makes it worth it. In turn, the high quality of the clothing and footwear gives Nike top-of-mind awareness, attracting more and more customers and thus driving up the price. This is due to Nike’s current pricing model that simply measures how much a consumer would be willing to pay for a product. The return that consumers get for paying the retail price is not only the high quality of the product, but they receive a company that always looks to engagement and putting them first.
- Piskorski, M.J. & Johnson, R. (2014). Social strategy at Nike. HBS No. 9-712-484. Boston, MA: Harvard Business School Publishing.
- Smith, J. (2014, July 21). Social Media & Digital: Nike Doesn’t Just Do It. They Get It. Retrieved July 1, 2016, from https://www.linkedin.com
