nike marketing strategy

1. Navigating the Metaverse:
- A Strategic Analysis of Nike's Entry and Beyond
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2. Table of Content:
1. Case Overview - Nike's Entry into the Metaverse
2. Metaverse Perspectives and NFT Insights
3. Metaverse Use Cases in Our Industry - Opportunities and Risks
4. Crafting a Metaverse Entry Plan for Our Brand and Company
5. Nike vs. Adidas - A Comparative Analysis of Metaverse Strategies
6. Pros and Cons of Nike's Metaverse Initiatives - Prioritization and Rationale
7. Recommendations for Nike's Digital Strategy Team
8. Key Takeaways and Concluding Remarks
Navigating the Metaverse - A Strategic Analysis of Nike's Entry and Beyond 2

3. 1. Case Overview - Nike's Entry into the
Metaverse
✔ In-game brand integration with the online video game
Fortnite where two new characters were revealed to be
wearing Nike shoes, called skins.
✔ Developing Block-chain compatible digital sneakers called
CryptoKicks.
✔ Creating a virtual 3D showroom called Nikeland on
Roblox’s online gaming platform.
✔ Filing for trademark protection in the metaverse
✔ Acquiring RTFKT, a creative company that made digital
sneakers and NFTs for the metaverse.
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Navigating the Metaverse - A Strategic Analysis of Nike's Entry and Beyond

4. 2. Metaverse Perspectives and NFT Insights
Metaverse
A virtual world where users can interact
through avatars and digital assets
NFT
Non-fungible tokens that provide proof of
ownership of digital assets
Digital Ownership
NFTs allow users to truly own digital assets like
art, music, videos, etc.
Metaverse and NFTs are bringing digital ownership and new immersive experiences online.
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Navigating the Metaverse - A Strategic Analysis of Nike's Entry and Beyond

5. 2a. Metaverse Perspectives
Collective virtual shared space - Seamlessly merging the physical and
digital realms
Immersive technologies at the heart - Virtual reality (VR) and augmented
reality (AR)
Technological foundations - From advanced 3D graphics to spatial
computing, artificial intelligence (AI), and blockchain
Metaverse's vision - Multi-user, persistent digital universe shaped by
innovation in communication, simulation, and sensory technologies
Fueling Interactivity – May fuel social, economic, and
entertainment experiences through interconnected networks and
digital innovations
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Navigating the Metaverse - A Strategic Analysis of Nike's Entry and Beyond

6. 2b. NFT Insights
It’s a non-fungible token, which means it can neither be
replaced nor interchanged because it has unique properties
Key Features of NFT:
∙ Digital Asset - NFT is a digital asset that represents
Internet collectibles like art, music, and games with an
authentic certificate created by blockchain technology
that underlies Cryptocurrency.
∙ Unique - It cannot be forged or otherwise manipulated.
∙ Exchange - NFT exchanges take place with
cryptocurrencies such as Bitcoin on specialist sites
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Navigating the Metaverse - A Strategic Analysis of Nike's Entry and Beyond

7. 3. Metaverse Use Cases in Renewable Energy - Opportunities and
Risks
Intelligent Energy Management – may provide a.)
real-time recommendations to consumers on how to
optimize their energy consumption b.) personalized
energy-saving tips
Energy Visualization – Enable consumers to
interact with and explore their energy usage in a
virtual environment
Energy Education - energy conservation, benefits of
using RE, Smart Grid,
Virtual Energy Marketplaces – peer-to-peer energy trading and
virtual environment where buyers and sellers can interact and
make informed decisions
Virtual Power Plants - is a network of small, distributed power
sources that can be managed as a single entity to provide energy
to the grid. Metaverse can simulate the behavior of VPPs,
enabling utilities to optimize their operation and minimize energy
waste.
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Navigating the Metaverse - A Strategic Analysis of Nike's Entry and Beyond

8. 3a. Opportunities
• New business models and revenue streams
The metaverse enables new digital business models like virtual
events, digital twins of physical products, virtual real estate, in-world
advertising, NFT marketplaces, and more.
• Enhanced customer experiences
Brands can create interactive and immersive experiences for
customers through virtual stores, digital products, and gamified
interactions.
• Expanded reach and access
The metaverse provides access to new demographics and geographic
markets by removing physical limitations.
• Improved collaboration and connectivity
Remote teams can better collaborate through metaverse workspaces
with avatars, virtual offices, and simulated in-person interactions.
• Data insights
User data and analytics from metaverse interactions provide valuable
insights into consumer behavior, interests, and preferences.
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Navigating the Metaverse - A Strategic Analysis of Nike's Entry and Beyond

9. 3b. Risks / Challenges
Data Privacy
Collecting large amounts of user data raises
concerns around data privacy and security.
Digital Accessibility
VR/AR experiences may not be accessible
to people with disabilities without proper
design considerations.
Energy Consumption
VR/AR hardware and immersive digital
experiences require significant computing
power and electricity.
Addiction
Immersive digital experiences have the
potential to be addictive and over-used.
Misinformation
The metaverse could enable the spread of
misinformation in new ways.
Social Isolation
Overuse of VR/AR could reduce real world
social interactions and increase isolation.
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Navigating the Metaverse - A Strategic Analysis of Nike's Entry and Beyond

10. 4. Crafting a Metaverse Entry Plan for ReNew
Q2 2024
Complete initial virtual
world design and
architecture
Q3 2024
Release first version of
virtual world with basic
functionality
Q4 2024
Expand world regions
and enable renewable
energy power
generation
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Navigating the Metaverse - A Strategic Analysis of Nike's Entry and Beyond

11. 5. Nike vs. Adidas - A Comparative Analysis of Metaverse
Strategies
Nike Adidas
Nike has forged partnerships with renowned gaming platforms
such as Roblox and Fortnite, expanding its reach to a broader
audience within these virtual realms.
Adidas has established collaborations with popular metaverse
communities like Punks Comic, Money, and the Bored Ape Yacht
Club, aiming to broaden its fan base and establish credibility in the
NFT market
By acquiring RTFKT Studios, Nike has gained insights into digital
fashion and NFTs, allowing the creation of unique and avant-
garde virtual goods.
Adidas, in efforts to boost its presence in the metaverse, has
collaborated with prominent virtual influencers and personalities
to design virtual accessories and clothing.
Nike's incorporation of blockchain technology in the metaverse is
evident through CryptoKicks, a collection of tradeable and
customizable digital sneakers popular among collectors, sold as
Nikeland in Roblox.
Adidas has partnered with The Sandbox company, a rapidly
growing entity, enabling users to purchase virtual land. They have
introduced AdiVerse as a counterpart to Nikeland.
Proactively securing metaverse trademarks, Nike has positioned
itself for future success in this domain.
Through new collaborations with various NFTs, Adidas has
experienced increased revenue and a growing presence in
the tech sector.
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Navigating the Metaverse - A Strategic Analysis of Nike's Entry and Beyond

12. 6. Pros and Cons of Nike's Metaverse Initiatives - Prioritization and
Rationale
Pros:
⮚ Include increased brand visibility
⮚ Enhanced customer engagement
⮚ Potential revenue growth.
Cons:
⮚ Might involve technical challenges
⮚ The need for significant investment, and
⮚ Possible resistance from traditional
customers.
Prioritization:
⮚ Initiatives that align with the brand's core values
⮚ Resonate with the target audience
⮚ Offer a seamless transition from physical to virtual
experiences would be advisable
Rationale:
⮚ Increased Brand Visibility
⮚ Enhanced Customer Engagement
⮚ Potential Revenue Growth
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Navigating the Metaverse - A Strategic Analysis of Nike's Entry and Beyond

13. 7. Recommendations for Nike's Digital Strategy Team
⮚ Continuous innovation
⮚ Staying updated on metaverse trends
⮚ Building partnerships with metaverse platforms
⮚ Creating a seamless user experience.
⮚ Balance the virtual and physical brand presence to
cater to diverse customer preferences.
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Navigating the Metaverse - A Strategic Analysis of Nike's Entry and Beyond

14. 8a. Key Takeaways
Start Small and Experiment: Test the metaverse's potential and gather insights before making significant investments
Think Beyond Traditional Marketing: need to focus on crafting content that goes beyond product promotion and
contributes to a richer virtual experience
Explore Emerging Technologies: Explore other emerging technologies as well
Importance of Adaptability: Nike should be flexible and responsive to changes, adjusting strategies based on the dynamic
nature of the metaverse
Strategic Partnerships are Key: Explore collaboration opportunities with other potential partners to enhance understanding
and contribute to effective positioning within virtual realms
Customer-Centric Approach: Metaverse initiatives should be as per customer-centric mindset that align with consumer
preferences and expectations
Continuous Learning and Adaptation: Nike should be open to evolving strategies based on insights gained from
experimentation and consumer interactions
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Navigating the Metaverse - A Strategic Analysis of Nike's Entry and Beyond

15. 8b. Concluding Remarks
⮚ Nike's strategic entry into the
metaverse exemplifies a thoughtful
and adaptable approach to the
dynamic digital realm, emphasizing
the importance of starting small,
fostering collaborations, and
redefining traditional marketing
strategies.
⮚ As the metaverse shapes new
dimensions of consumer interaction,
Nike's commitment to continuous
learning and customer-centricity
positions it for future success, making
the company's metaverse journey a
compelling case study for businesses
and MBA students navigating the
intersection of technology, innovation, 15
Navigating the Metaverse - A Strategic Analysis of Nike's Entry and Beyond

16. Navigating the Metaverse - A Strategic Analysis of Nike's Entry
and Beyond
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