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To bring inspiration and innovation to
every athlete in the world.
NIKE
Nike’s new campaign, “Possibilities,”
inspires viewers to push their limits
and strive to reach new goals
through a variety of playful scenarios
featuring an all-star cast of athletes
and guest stars. Digital and social
media help viewers to #justdoit
themselves through a series of Nike+
challenges.
 Brand name recognition. Nike has been around so long, the
brand is recognized and respected both internationally and
domestically.
 Nike has consistently produced quality products that appeal to
its consumers both internationally and domestically, esBrand
establishing brand loyalty.
 Number one footwear manufacturer in nine international
countries with distribution centers both internationally and
domestically.
.
 Ad agency with offices in three different countries in order to
reach their target audience on a local level.
 The organization does have a diversified range of sports
products. However, the income of the business is still heavily
dependent upon its share of the footwear market. This may leave
it vulnerable if for any reason its market share erodes.
 High Advertising Costs: Part of the company’s marketing strategy
involves locking up major sports stars in lengthy endorsement
deals. This has proven to be a rather successful tactic, as
evidenced by the global awareness of the NIKE brand and the
company’s strong share positions in each of its categories. The
strategy comes at a pretty high price tag. Total advertising and
promotion expenses were about $2.7 billion, or nearly 11% of
sales, in fiscal 2013, which ended May 31, 2013.
 Favorable Industry Trends: Among these are the growing popularity
of running worldwide and the increased desire for minimalist footwear.
A heightened emphasis on fashion in the athletic realm is also giving
NIKE a boost, since style has always played a large role in its footwear
and apparel lines. The company’s fashion focus explains, why NIKE
gear is universally worn casually rather than merely during sporting
pursuits.
 Direct to Consumer: eCommerce, in particular, represents a big
opportunity for NIKE, and it is expected this to be a $2 billion business
annually, versus closer to $540 million today. The company should
continue to expand its base of retail shops and factory stores, as these
locations allow NIKE to best control its brand, more effectively manage
its inventory, and win new wholesale accounts. At present, there are
over 750 retail units worldwide, including over 300 in the United
States.
 Heightened Competition: In addition to entrenched
rivals, like V.F. Corporation , which markets goods
under The North Face and Timberland labels, The most
significant competitors are Skechers USA and Under
Armour , the latter of which has been growing at a
blistering pace since going public in 2005 and has done an
enviable job of reaching out to young consumers.
 Product Cost Inflation: Rising raw material costs are apt
to be a long-term headwind, with the developing world
continuing to use up more commodities. Labor inflation
will likely be an issue, too, but, as we’ve suggested, we see
NIKE making productivity improvements in this area.
Nike began experimenting with digital platforms as early as 1996
when the brand launched the website for the Atlanta Olympics.
In 2006, Nike created the Nike+ platform to meet the changing
demand of customers in the mobile era.
It is a multi-channel, sensory combining Apple and Nike
technologies that allows individuals to track performance. For
the first time, this platform allows Nike to have a personal
conversation with its customers. It also supplies data to Nike
laboratory to study the behaviors and patterns of its customers.
In 2010, Nike launched Nike Digital Sport and hired new engineers
to make technology for digital communities.
Nike is well positioned with their Nike+ integrated
platform and community ecosystem. Their great brand
and expertise in fitness and athletics also puts them in
a great position of credibility. Nike needs to continue
to invest in innovative tracking capabilities, Big Data
analytics, and Human Internet of Things (HIoT)
integration into clothing and equipment to stay in a
leadership position.
Recommended Platforms,
Tactics and Strategies
 In today’s networked age, competition is increasingly over
platforms. Build a better platform, and you will have a decided
advantage over the competition.
 By building a digital platform, other businesses can easily
connect their business with yours, build products and services
on top of it, and co-create value.
 Nike is also shifting from products to platforms. Building on the
success of its Digital Sport products, Nike launched its Nike+
Accelerator to help companies build on the Nike+ platform.
Nike’s announcement reflects platform thinking. “We are
looking for people who want to create companies that build
upon the success of [Nike+] to make the world more active.”
How to Measure Success
Bonchek. M (2013). Three Elements of a Successful Platform Strategy. https://hbr.org/2013/01/three-elements-of-a-
successful-platform
Friesner, T. (2014).SWOT Analysis Nike, Inc.http://www.marketingteacher.com/nike-swot/
Griffith, I. (2012).How social media and digital marketing has impacted global branding.
http://www.smartinsights.com/online-brand-strategy/international-marketing/how-social-
and-digital-marketing-has-impacted-global-branding/
Hellman, J (2014)NIKE: A Short SWOT Analysis.
http://www.valueline.com/Stocks/Highlight.aspx?id=15623#.VPMc0fnF98E
Moth,D (2013).10 awesome digital marketing campaigns from Nike..https://econsultancy.com/blog/63129-10-
awesome-digital-marketing-campaignsfrom-nike/
Moth,D (2013). How Nike uses Facebook, Twitter, Pinterest and Google+.
https://econsultancy.com/blog/62412-how-nike-uses-facebook-twitter-pinterest-and-google/
Swallow, E. (2011).How Nike Outruns the Social Media Competition.
http://mashable.com/2011/09/22/nike-social-media/
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Nike campaign

  • 1. To bring inspiration and innovation to every athlete in the world. NIKE
  • 2. Nike’s new campaign, “Possibilities,” inspires viewers to push their limits and strive to reach new goals through a variety of playful scenarios featuring an all-star cast of athletes and guest stars. Digital and social media help viewers to #justdoit themselves through a series of Nike+ challenges.
  • 3.  Brand name recognition. Nike has been around so long, the brand is recognized and respected both internationally and domestically.  Nike has consistently produced quality products that appeal to its consumers both internationally and domestically, esBrand establishing brand loyalty.  Number one footwear manufacturer in nine international countries with distribution centers both internationally and domestically. .  Ad agency with offices in three different countries in order to reach their target audience on a local level.
  • 4.  The organization does have a diversified range of sports products. However, the income of the business is still heavily dependent upon its share of the footwear market. This may leave it vulnerable if for any reason its market share erodes.  High Advertising Costs: Part of the company’s marketing strategy involves locking up major sports stars in lengthy endorsement deals. This has proven to be a rather successful tactic, as evidenced by the global awareness of the NIKE brand and the company’s strong share positions in each of its categories. The strategy comes at a pretty high price tag. Total advertising and promotion expenses were about $2.7 billion, or nearly 11% of sales, in fiscal 2013, which ended May 31, 2013.
  • 5.  Favorable Industry Trends: Among these are the growing popularity of running worldwide and the increased desire for minimalist footwear. A heightened emphasis on fashion in the athletic realm is also giving NIKE a boost, since style has always played a large role in its footwear and apparel lines. The company’s fashion focus explains, why NIKE gear is universally worn casually rather than merely during sporting pursuits.  Direct to Consumer: eCommerce, in particular, represents a big opportunity for NIKE, and it is expected this to be a $2 billion business annually, versus closer to $540 million today. The company should continue to expand its base of retail shops and factory stores, as these locations allow NIKE to best control its brand, more effectively manage its inventory, and win new wholesale accounts. At present, there are over 750 retail units worldwide, including over 300 in the United States.
  • 6.  Heightened Competition: In addition to entrenched rivals, like V.F. Corporation , which markets goods under The North Face and Timberland labels, The most significant competitors are Skechers USA and Under Armour , the latter of which has been growing at a blistering pace since going public in 2005 and has done an enviable job of reaching out to young consumers.  Product Cost Inflation: Rising raw material costs are apt to be a long-term headwind, with the developing world continuing to use up more commodities. Labor inflation will likely be an issue, too, but, as we’ve suggested, we see NIKE making productivity improvements in this area.
  • 7. Nike began experimenting with digital platforms as early as 1996 when the brand launched the website for the Atlanta Olympics. In 2006, Nike created the Nike+ platform to meet the changing demand of customers in the mobile era. It is a multi-channel, sensory combining Apple and Nike technologies that allows individuals to track performance. For the first time, this platform allows Nike to have a personal conversation with its customers. It also supplies data to Nike laboratory to study the behaviors and patterns of its customers. In 2010, Nike launched Nike Digital Sport and hired new engineers to make technology for digital communities.
  • 8. Nike is well positioned with their Nike+ integrated platform and community ecosystem. Their great brand and expertise in fitness and athletics also puts them in a great position of credibility. Nike needs to continue to invest in innovative tracking capabilities, Big Data analytics, and Human Internet of Things (HIoT) integration into clothing and equipment to stay in a leadership position. Recommended Platforms, Tactics and Strategies
  • 9.  In today’s networked age, competition is increasingly over platforms. Build a better platform, and you will have a decided advantage over the competition.  By building a digital platform, other businesses can easily connect their business with yours, build products and services on top of it, and co-create value.  Nike is also shifting from products to platforms. Building on the success of its Digital Sport products, Nike launched its Nike+ Accelerator to help companies build on the Nike+ platform. Nike’s announcement reflects platform thinking. “We are looking for people who want to create companies that build upon the success of [Nike+] to make the world more active.” How to Measure Success
  • 10. Bonchek. M (2013). Three Elements of a Successful Platform Strategy. https://hbr.org/2013/01/three-elements-of-a- successful-platform Friesner, T. (2014).SWOT Analysis Nike, Inc.http://www.marketingteacher.com/nike-swot/ Griffith, I. (2012).How social media and digital marketing has impacted global branding. http://www.smartinsights.com/online-brand-strategy/international-marketing/how-social- and-digital-marketing-has-impacted-global-branding/ Hellman, J (2014)NIKE: A Short SWOT Analysis. http://www.valueline.com/Stocks/Highlight.aspx?id=15623#.VPMc0fnF98E Moth,D (2013).10 awesome digital marketing campaigns from Nike..https://econsultancy.com/blog/63129-10- awesome-digital-marketing-campaignsfrom-nike/ Moth,D (2013). How Nike uses Facebook, Twitter, Pinterest and Google+. https://econsultancy.com/blog/62412-how-nike-uses-facebook-twitter-pinterest-and-google/ Swallow, E. (2011).How Nike Outruns the Social Media Competition. http://mashable.com/2011/09/22/nike-social-media/