Nike’s Marketing Approaches
Nike’s Marketing Approaches
Organizations in their attempt to reach out to their target consumers tend to embrace various marketing platforms they deem suitable. Nike is an example of a company that uses a combination of various marketing approaches including social media as well as traditional approaches including the utilization of billboards, TV and radio adverts, and through print media (Wheeler, 2013). The company generates high returns from its marketing practices, which is a motivation to work hard to maintain the lead in a sector where the competitors are also striving to improve their operations.
Nike is a U.S. multinational company that engages in the designing, development, producing, and global marketing and sales of a wide range of products encompassing apparel, footwear, and accessories, and also provides a number of services. Headquartered in Oregon, the company is regarded as the globe’s largest manufacturer and supplier of apparel and shoes suitable for athletics, and also ranked the leading producer of sports equipment. Nike received annual revenue of 34.36 billion USD in 2018, and employs more than 26,000 workers in the U.S. alone (Nike, 2019). The brand is valued at $32.5 billion (2019) making it the most valued company in the sports sector. The main reason for choosing the company that licenses retailers in different locations to sell its products is because of its competitive nature, particularly with regard to the use of advanced technology. The retail sector under which Nike operates is essential to the growth of U.S economy because the industry generated nearly $1.15 trillion, forming about 5.8% of the gross domestic product (GDP) (Nike, 2019). Nike has a market share of 16% of the sportswear market share in the U.S. followed by Adidas (14%), Under Armour (3%), and Puma (2%) (Park & Kincade, 2010). The analysis shows Nike is far ahead of its competitors in terms of production, revenue, and market share.
Strategies and Techniques – Marketing Strategies
Nike understands the need to market its products via various avenues because it is through such adverts that it increases its chances of attracting more customers. The company seems to acknowledge that powerful presentation of the brand promotes customer loyalty from consumers across the U.S. Nike employs traditional marketing approaches with the use of celebrities being one of the widely embraced mechanisms (Mahdi et al., 2015). The company would display various celebrities on billboards while advertising some of the company’s products, and also widely use television stations to air the adverts. The company, for example, uses marathon Olympic record holder, Eliud Kipchoge to advertise its latest sports footwear, especially the Flyprint, which is manufactured using the 3D printing technology (Nike, 2019). The company also advertises through radio stations, as well as on print media such as magazines and newspapers.
The group largely employs digital media to imrpve its marketing practices. The company relies on its website, which acts as a major platform for notifying buyers of the manufacturer’s products, and through the platforms buyers can make requests and even pay for items they desire (Ayungga, 2018). Nike’s website advertises a wide range of products ranging from adult males and females as well as kids apparel and footwear. Other than using the website, Nike markets using social media, which the report by Yellow (2018) considers to be a marketing approach that is fast developing among large corporations and small and medium enterprises (SMEs). The company uses Facebook and Twitter to market its products and to interact with stakeholders from all over America. Nike uses other social media avenues such as YouTube, LinkedIn and Pinterest.
Nike while carrying out its operations seeks to achieve certain objectives that are fundamental to the group’s activities. One of Nike’s primary objectives is to empower consumers such that and all stakeholders such that they flourish in a sustainable economy where every person experiences profit-making, and where information prevails (Nike, 2019). Certainly, adopting social media marketing will facilitate the transmission of information where those who relate with Nike not only gain through the quality items they purchase, but also acquire awareness that would promote independence and sustainability. It is the reason why the company is dedicated to use the social media avenues that are becoming part and parcel of business.
Response of Engagement
Nike’s use of social media avenues generate much response from customers and other stakeholders who interact with the company on various aspects. Today, Nike is the fourth leading corporation in terms of followers of any company on Instagram with the group having as many as 82.7 million followers. The same happens on Facebook where each posit from Nike attracts hundreds of thousands of likes and comments. The situation is not any different on the other platforms where the company attracts huge following not only because of the appealing products and news they post, but also because of the quick response they give to social media users.
It is evident Nike’s competitors are also using social media to reach out to stakeholders now that they stand to get some benefits from using the online platforms. Adidas, for example, also use a number of social media avenues such as Twitter, Facebook, Youtube and Instagram to reach out to consumers from different parts of the country. Furthermore, it happens that the people engaging with Nike on various platforms report high level of satisfaction because of the quick services and attention they receive from the service providers. As a result, the group continues to post more content on the various avenues, and the satisfaction the customers encounter is evident through the positive and encouraging comments and feedbacks. It is also apparent the group’s attempts to market via online and traditional avenues translate to significant growth, something which can be deduced from the company’s revenue in the recent years. The company improved its revenue from $32.3 billion in 2016 to $34.5 billion in 2017 thereby marking a 8% increase (Nike, 2019). The revenue rose to $39.1 billion in 2019, which is adequate proof that the marketing practices seem to yield the anticipated outcome. Otherwise, the company would regard its marketing through various avenues as not being lucrative if it recorded lower returns every time it releases the financial report. The group would also regard the marketing approach as being less effective if it received harsh or unfriendly reactions from consumers.
The analysis pays considerable attention to the marketing practices by Nike, which applies both traditional and digital approaches in a bid to attract more consumers. The analysis reveals that the company uses celebrities to advertise its products on billboards and various TV and radio stations, and also reaches out to consumers via social media avenues such as Instagram, Facebook, YouTube, LinkedIn, and Pinterest. Nike’s use of social media attracts many consumers, and in turn the group generates more revenue.
2016: $32.3 billion
2017: $34.5 billion
2018: $34.36 billion
2019: $39.1 billion
Ayungga, R. (2018). Customer benchmarking analysis on brand image formation in brand Nike.
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Mahdi, H., et al. (2015). A comparative analysis of strategies and business models of Nike, Inc.
and Adidas Group with special reference to competitive advantage in the context of a
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Nike. (2019). Nike. Retrieved from https://www.nike.com/
Park, H., & Kincade, D. (2010). Historical analysis of apparel marketer’s strategies: Evidence
from a Nike case. Journal of Global Fashion Marketing, 1(3), 182-193.
Wheeler, A. (2013). Designing brand identity. New Jersey: John Wiley & Sons.
Yellow. (2018). Yellow social media report 2018: Part one – consumers. Melbourne: Yellow.