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Case Study | Inside Nike’s Radical Direct-to-Consumer Strategy

Inside Nike's Radical Direct-to-Consumer Strategy Case Study

Chantal Fernandez

In October 2020, in the middle of a global pandemic that had infected 188 countries, causing record sales damage across the retail sector, Nike’s share price hit an all-time high.

Like other retailers, Nike had been forced to close most of its network of more than 900 stores across the world, as had its key wholesale partners like Nordstrom and Foot Locker.

But the American sportswear giant’s performance during the pandemic, when its online sales spiked, signalled to many that Nike had the competency to prosper long term, in a future that will be increasingly defined by e-commerce and digital brand connections.

It was a validation of a strategy that Nike prioritised three years ago, dubbing it “Consumer Direct Offense,” but the seeds of the approach go back almost a decade.

Above all, Nike is a marketing company. It doesn’t just sell sneakers; it sells the brand aspiration that imbues those sneakers with meaning. But to achieve the reach required to scale its business, Nike’s distribution strategy had long-relied on third-party retailers to sell its products, even if the consumer experience offered by those partners diluted its brand.

But in a future increasingly defined by e-commerce, fast-moving trends and, above all, the rising power of branding to drive consumer preference when competitors are just a click away, Nike realised that in order to thrive, it needed to take control of its distribution to better manage its brand and deepen its connection with consumers.

It was definitely architecting a new retail, and a bold, retail vision for Nike.

Such an evolution is easier said than done, especially for a business as large as Nike in a category as competitive as sportswear. But by radically cutting back on its wholesale distribution and raising the bar for brand experience with the third-party partners that remained; expanding its focus on content, community and customisation to keep customers close; investing in its data analytics and logistics capabilities; and rethinking the role of the store as a brand stage, Nike drove a veritable direct-to-consumer revolution.

When the pandemic hit, these shifts went into overdrive.

“It was definitely architecting a new retail, and a bold, retail vision for Nike,” said Heidi O’Neill, Nike’s president of consumer and marketplace, and one of the most prominent executives leading the brand’s new strategy in recent years. “But it started with our consumer, and we knew that consumers wanted a more direct relationship with us today.”

In this case study, BoF breaks down Nike’s pioneering direct-to consumer strategy and how it has worked to the brand’s advantage, propelling its share price to new heights during the global crisis of 2020.

Click below to read the case study now.

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Nike E-Commerce: How Nike’s D2C Strategy Hits 50% Digital Penetration

by Editorial Team
Jan 14, 2022
10 min read

This article is part of Commerce 4.0 , a series about the next frontier of e-commerce along with the strategies and tactics used by iconic brands to transform how we discover, select, and purchase products.

Nike , the largest seller of athletic footwear and apparel in the world, has never been shy about its aspirations of becoming a digital-first, direct-to-consumer (D2C) company. Over the years, Nike has accelerated its digital transformation by expanding its global supply chain and making “ significant investments in digital technologies and information systems” to power D2C e-commerce .

As part of its D2C push, Nike set out to reach 30% digital penetration by 2023, meaning 30% of total sales would be Nike e-commerce revenue. However, Nike blew past that goal two years ahead of schedule. It now expects its overall business to reach 50% digital penetration in 2022 .

Meanwhile, total D2C sales have soared from $2.5 billion in 2010 to $16.4 billion in 2021. And, over the trailing 12 months, the company generated a staggering $46.2 billion in total sales, putting it on track to meet its lofty goal of $50 billion in 2022 .

In this Commerce 4.0 profile, we’ll review Nike’s digital strategy that serves as its foundation for continued success in e-commerce. We’ll also explore the tactics Nike implemented to realize its mission of driving growth through digital and direct-to-consumer initiatives.

Nike E-Commerce Growth Strategy

The world’s largest sportswear brand has rapidly evolved from a traditional marketing-first retailer into a D2C juggernaut by creating and executing two key strategies: the Consumer Direct Offense (CDO) and Consumer Direct Acceleration.

Consumer Direct Offense

Much of the company’s recent success can be attributed to Nike’s company-wide strategy since 2017, aptly named the Consumer Direct Offense (CDO) . Executing the plan has allowed Nike to completely change its business model, shifting away from the lagging wholesale distribution business toward high-growth direct sales to consumers.

Over the last few years, the company has said goodbye to many long-time wholesale partners including Macy’s, Urban Outfitters, Shoe Show, Dunham’s Sports, Dillard’s, Fred Meyer, and Zappos. Nike also ended a high-profile partnership with Amazon after a two-year pilot program, even though Nike products are still among the top 200 most-searched keywords on Amazon.

Instead of working with these partners, Nike is focusing the majority of its efforts on D2C. Leveraging the power of digital has created a much faster pipeline to better serve Nike’s customers personally, and at scale, with tenets outlined in the CDO.

The Consumer Direct Offense involves:

Accelerating innovation and product creation
Moving closer to consumers by growing operations in 12 key cities across ten countries
Deepening one-to-one connections with interactive experiences across different channels

Consumer Direct Acceleration

In 2020, the company announced the Consumer Direct Acceleration , the newest phase of the CDO. This latest strategy involves several initiatives.

The first is to create the connected digital marketplace of the future , which focuses on developing a premium and seamless brand experience wherever customers shop. This leads with digital, online-to-offline services, as well as physical experiences through store concepts such as Nike House of Innovation , Nike Rise , Nike Live , and Nike Unite .

The second is to operate under a more straightforward consumer construct of men’s, women’s, and kid’s categories. Nike’s customers are not just runners or yoga practitioners, so broadening the categories allows Nike to create products with deeper insights and drive even greater specialization. The shift in consumer construct touches every area of the business, including innovation, product creation, marketing, merchandising, and distribution.

Finally, the third is to aggressively invest in digital capabilities in their end-to-end technology foundation to accelerate digital transformation. To date, this has included demand sensing , insight gathering , inventory management , and more.

Nike E-Commerce Growth Tactics

There are many valuable lessons to take away from Nike’s pivot from wholesale distribution to D2C. But, looking back, several critical decisions were made that directly led to the company’s extraordinary results, including:

Investing in key technologies
Building a headless commerce platform
Strengthening the supply chain
Pivoting with changes in leadership

Without these critical decisions, Nike would not have transformed into the technology-first company it is today and exceed expectations in terms of digital penetration. Below, we will explore each of these choices to see how they contributed to the company’s digital resurgence.

Tactic #1: Investing in key technologies

Nike has been investing aggressively in technologies to further its leadership position. Over the last several years, the company has made several key acquisitions of technology startups to help boost its digital capabilities.

Predictive analytics

Nike acquired the data analytics company Zodiac , a predictive customer analytics platform, in 2018. The platform forecasts the behavior of individual customers and customer segments and uses a company’s historical transaction logs to predict each customer’s future buying habits.

Zodiac’s predictions improve customer acquisition, reduce churn, and enhance the accuracy of sales forecasts. This technology has been important for Nike’s apps—SNKRS, Training Club, Run Club, and its commerce app—which have helped drive immense value for the company. According to John Donahoe, “a consumer who connects with us on two or more platforms has a lifetime value that’s four times higher than those who don’t.”

In addition to data analytics, demand forecasting for retailers is an inexact science that’s notoriously crude and error-prone. To help address this issue, Nike acquired Celect , a demand sensing firm based in Boston, in August 2019. The company’s cloud-based analytics platform provides proprietary insights that allow retailers to optimize inventory across an omnichannel environment through hyper-local demand predictions.

The goal is to integrate the technology into Nike’s mobile apps and website, which would allow them to predict what styles of sneakers and apparel customers want, when they want them, and where they want to buy them from.

Computer vision

Another acquisition is Invertex Ltd., a leading computer vision firm based in Tel Aviv, Israel. Invertex was acquired by Nike in 2018 and specializes in 3-D foot scanning. It even created the FeetID system , which includes an in-store unit that can precisely measure and 3-D-scan a shopper’s feet and send the data directly to their mobile phone within seconds.

According to co-founder David Bleicher, “Invertex’s combination of powerful deep learning and augmented reality, combined with its 3-D body scanning technology and domain expertise, have created the world’s most accurate body-based match engine for footwear.”

Data integration

Nike’s most recent acquisition is Datalogue, which it acquired in February 2021 . The company has “built cutting-edge and proprietary machine-learning technology that automates data preparation and integration.” This latest acquisition will help Nike integrate data from all sources—including the company’s app ecosystem, supply chain, and enterprise data—in a fast, seamless, easily accessible, and standardized platform.

Tactic #2: Building a headless commerce platform

Nike has also invested in custom software to create Nike’s e-commerce platform that is powered by headless commerce , cloud-native technology, and microservices . Early on, Nike recognized that technology was a strategic priority and began shifting its focus to transforming the entire tech stack of the organization.

Nike software engineers carefully examined many areas of the company’s engineering organization where off-the-shelf vendor software was routinely used and found that, in many cases, the software did not meet their strategic needs for functionality, security, or scale.

At the time, commerce-in-a-box solutions for enterprises were slow, prone to problems, difficult to scale, and wholly inadequate for a company the size of Nike. Today’s commerce platform-as-a-service (PaaS) providers would have supported all of Nike’s use cases and allowed it to focus on its core IP instead of managing technology infrastructure and services. However, these platforms were still years away from development.

As a result, Nike engineered its own solutions from the ground up. Its engineering teams aggressively marched towards cloud-native, microservice architecture and developed cloud-based software, resulting in cutting-edge applications and platforms that serve at a global scale. These investments enabled speed, scale, and stability across the enterprise.

In addition, they helped ramp up its backend capabilities to capture more of the demand generated from its industry-leading personal experiences.

According to Murali Narahari, Nike’s Director of Engineering, Shared Commerce, and Retail:

“Over the last five years, we have re-imagined our entire technology stack using observability, security, reliability, availability, and performance as core principles for software development.”

Tactic #3: Strengthening the supply chain

Nike’s products are sold directly to consumers through: Nike-owned retail stores; Nike-owned digital platforms; retail accounts; and a mix of independent distributors, licensees, and sales representatives in practically every country around the world. Simply put, getting Nike’s vast catalog of products to its customers requires a robust and highly complex supply chain strategy .

Not surprisingly, the company has invested heavily in IT systems ( p.16 ) to beef up its supply chain. Key areas include product design, production, forecasting, ordering, manufacturing, transportation, sales, distribution, and processing financial information for external and internal reporting purposes, retail operations, and other business activities.

Manufacturing

Independent contractors manufacture virtually all of Nike’s products. In an effort to be transparent, the company releases up-to-date data on the independent factories and material suppliers used to manufacture Nike products, including the name and location of each factory and the products they produce. As of August 2021 , 193 footwear factories in 14 countries and 342 apparel factories in 33 countries supplied the company.

Nike has been actively developing new technologies to enhance its manufacturing business model with investments in automation, modernization, sustainability, and innovative new manufacturing methods.

For example, Flyknit is a digitally engineered knitting process used to manufacture shoes that produce 60% less waste than traditional cut-and-sew methods. Nike has also invested in 3D printing technology for years and announced the Flyprint in 2018, the world’s first 3D-printed textile upper in performance footwear.

Fulfillment

As part of the CDO strategy, Nike has been trying to improve the speed and efficiency of its fulfillment capabilities. For example, in response to the global pandemic, Nike tripled its digital fulfillment capacity across North American, European, Middle Eastern, and African markets last year. The company also opened a U.S. fulfillment center in Los Angeles and ramped up in time to reduce fulfillment costs per unit on West Coast shipments before the holidays in 2020.

Increasing total fulfillment capacity has also included the introduction of robots to fulfillment operations. In 2020, Nike developed more than 200 robots in collaboration with Geek+ and met the rapid growth in e-commerce while also mitigating labor shortages and high labor wages.

Supply chain challenges

Disruptions are testing the resiliency of Nike’s supply chain. Container shortages, transportation delays, and U.S. port congestion interrupted the flow of their inventory last year. In addition, government-mandated COVID-19 lockdowns in Vietnam and Indonesia also caused inventory issues. In response, Nike maximized its footwear production capacity in other countries and shifted apparel production to countries like Indonesia and China to offset the impact of the shortages.

The good news is that consumer demand has never been higher , which will likely help accelerate the company’s D2C strategy . Moreover, according to Nike’s CFO Matt Friend, the temporary supply chain disruptions will likely trigger an even greater acceleration in the transformation of the marketplace—toward Nike and their most critical wholesale partners.

Tactic #4: Pivoting with changes in leadership

When Nike announced that John Donahoe would become the company’s third President and CEO, many people were surprised to learn that a career technology executive was taking the reins of the iconic sports apparel brand.

Donahoe, who served on Nike’s board since 2014, was the former President and CEO of Bain & Company, eBay, and ServiceNow, and still currently serves as the Chairman of the Board of PayPal Holdings.

After serving as Nike’s Chairman, President, and CEO for 14 years , this well-publicized transition of power allowed Mark Parker to relinquish his day-to-day management duties and step into an Executive Chairman position within the company. More importantly, Donohoe’s carefully planned appointment as CEO made it clear that Nike would not be making any drastic or significant shifts in its strategy and would safely stay the course with its new leadership.

According to former CEO Mark Parker, “Donahoe’s expertise in digital commerce, technology, global strategy, and leadership—combined with his strong relationship with the brand—make him ideally suited to accelerate our digital transformation and build on the positive impact of our Consumer Direct Offense.”

However, even though Donahoe is a strong choice for the company to continue executing its plans, he is making moves with other leadership changes to try and accelerate Nike’s growth with the Consumer Direct Acceleration strategy.

Nike recently announced a series of senior leadership changes shortly after he became the CEO. The company also shuffled the management team and announced massive job cuts, which resulted in “one-time employee termination costs of approximately $200 million to $250 million.”

More recently, a Nike VP/GM that oversaw the brand’s North America business stepped down from her position after a Bloomberg Businessweek story uncovered her son’s sneaker resale operation. Sarah Mensah immediately replaced her and was named the VP/GM of North America.

With these leadership changes in place, and with Donahue’s recent appointment as CEO, it will be interesting to see how fast and how far Nike can take its digital transformation.

The Future of Nike E-Commerce

It’s not easy to replicate Nike’s digital transformation strategy. Scale matters, and with the company’s breadth and depth, no one has the advantage in this space that Nike has to connect with consumers directly. Nike’s size, products, brand strength, direct consumer relationships, and ability to create seamless and differentiated shopping experiences is how it has set itself apart from competitors such as Adidas and Under Armour.

The company recently filed trademark applications that indicate it might sell digital versions of its sneakers, clothing, and other goods in virtual worlds, such as videogames or other online platforms. Perhaps it sees blockchain technology as yet another opportunity to deepen connections with its customers.

However, the company understands that it’s in the midst of a multi-year journey with lots of opportunities ahead, which is why the company isn’t resting on its laurels. According to CEO John Donahoe, “While we’ve had tremendous success in digital and quickly pivoted to the accelerated consumer shift, I truly believe that Nike is just scratching the surface of what’s possible.”

Key Takeaways

Executing on Nike’s Consumer Direct Offense strategy has transformed the company from a traditional marketing-first retailer into a massive D2C technology juggernaut.
Key technology acquisitions and investments in cloud-native microservices that power Nike’s e-commerce platform have increased the lifetime value of customers.
Nike engineered its own e-commerce platform since no flexible, headless commerce solution was available years ago.
New President and CEO John Donahoe is attempting to push digital transformation forward with leadership changes and the Consumer Direct Acceleration strategy.

Digital content editorial team @ fabric.

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Nov 2, 2021

Nike: Always Ahead of the Curve

Digital Strategy
Content Marketing
Social Media Marketing

Written by Clark Boyd

Nike is truly one of the great, marketing-driven organizations. From its early “Just Do It” TV ads to its modern-day collaborations with cultural megastars, Nike has revolutionized the very concept of marketing and what it can achieve.

Although Nike is a giant corporation today, its rise is instructive for marketers at companies of all sizes. Below, we discover the fascinating history of Nike and share the lessons we can all take from their approach to marketing.

The most famous - and successful - collaboration between Nike and a high-profile athlete is its series of ads with basketball giant Michael Jordan. Jordan initially wanted to sign with Adidas, but they made no specific approach to his agent. Nike saw the huge potential of Jordan in his early career and made a pitch that showed their ambition.

Nike’s blockbuster television commercials live long in the public consciousness, yet the partnership with Jordan fundamentally shifted the idea of what sports marketing means. Before Jordan, basketball stars were marketed as part of a team. Nike wanted to push Jordan as an individual, as they would with a tennis star. At the time, Converse (acquired by Nike in 2003) actually charged some NBA teams for shoes. Even Magic Johnson and Larry Bird were not signed up as brand ambassadors by shoe manufacturers.

Nike gave Jordan his own shoes, the Jordan 1, and it took the market by storm. They sold an incredible 126 million pairs of Jordan 1s in the year following their release.

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Dec 24, 2020 — Read time: 4 mins

How Nike’s digital transformation helped them thrive during Covid-19

Per a recent article in Business of Fashion, the forward-looking company was able to grow their share price and re-establish the exclusivity and covetability of their brand by implementing a digital-first strategy.

Nike’s latest triumph in the retail market once again proves how aptly the company is named.

The Radical Strategy That Drove Nike’s Pandemic Success traces the development of this strategy back to 2017 and before, when former Nike CEO Mark Parker announced that the brand would cut their roster of distribution partners from 30,000+ to just 40.

“With a big unveiling on October 25th, 2017, with his company’s stock trading at roughly $51, then chief executive Mark Parker committed corporate suicide… Where most CEOs are reticent to fire even a single customer, Parker had just pink-slipped thousands in a single day." Business of Fashion

Nike’s leadership team had taken stock of their identity as a brand: At their best, their footwear is highly desirable, aspirational, and collectable, associated with the lifestyles of celebrity athletes and performers. They quickly realized the worst thing they could do was to allow their merchandise to be sold in department stores or other retail locations where they’d be stacked on a shelf along with all the other brands in their category, undifferentiated and not linked to their powerhouse experiential marketing efforts.

With this vision of their brand in mind, Nike didn’t just reduce their footprint in partner stores—they went all-in on digital first strategy that linked their ecommerce with their in-store experiences, and focused on a data-driven model that would leave most CTOs and CSOs drooling.

A concept store is nothing new in retail, but Nike’s purpose for their Melrose Avenue, LA retail location is nothing short of genius. Selling shoes and clothing was almost secondary—the intention of the store was to be a customer-data-collecting engine, with information about which products were selling, and to whom, fed back into Nike’s strategic decisions for the brand as a whole. The most impressive data point of all? The highly customer-focused experience Nike created at this store allowed them to convert shoppers into Nike Plus members six times faster than any other retail location in their network. These shoppers also spent 30% more on their next online purchase with the brand than those who hadn’t visited the store, proving the value of creating the high concept experience.

Making this strategy work for you

The Nike leadership dubbed their digital transformation plan the “triple double strategy”. In 2017, they planned to double their 1) innovation; 2) speed to market; and 3) direct connection points to customers over the next five years. In fact, they outperformed their targets: With a plan to achieve a 33% lift in direct-to-consumer sales by 2022, they hit that target and kept growing by 2019.

The focus here is twofold: 1) Understanding what makes your brand salient with your audience; and 2) Understanding that digital transformation has become a must-have, not a nice-to-have.

It’s easy for companies to unintentionally dilute their brand. Nike themselves had been doing it for years by growing their wholesale business in an effort to grow their bottom line. But in the world of fashion especially, ubiquity is not a plus. The more exclusive a product is, the more consumers will want to buy. (The steady success of Hermès is all the proof one needs.)

If your company is suffering from this kind of identity crisis, it’s time to make some hard decisions about who you partner with and why, who you sell your products or services to, and the gap between where you are and where you want to be.

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Nike's Digital Transformation Efforts Continue to Win Big

Nike’s digital transformation enters the metaverse and embraces supply chain automation.

Long a pioneer in the retail sector , over the past decade Nike has emerged as a true digital visionary. The embrace of cutting-edge technology combined with a “Consumer Direct Acceleration” (CDA) strategy has not only enabled Nike to survive the turbulence of the last two years, but thrive.

In fact, according to the company’s most recent earnings report , digital channels and applications now account for 26% of Nike’s revenues, its Q3 earnings revealed, with digital sales in the US up 33% on the same quarter last year. Furthermore, Nike revenues for the quarter were $10.9 billion. Net income was $1.39 billion, down 4% on the same period in 2021.

In the years leading up to the COVID-19 pandemic, Nike made a number of savvy digital investments including the launch of its mobiles apps (NIKE mobile app, the SNKRS mobile app, the NTC (Nike Training Club) and NRC (Nike Run Club). Nike’s exercise app, the Training Club, alone was responsible for boosting sales in China by 30% during the pandemic.

In partnership with intelligent automation provider Laiye , they also launched a chatbot that not only helped e-commerce customers find what they were looking for, but could also offer the shopper personalized product recommendations.

The company has also made significant investments in data science technology , acquiring data integration startup platform, Datalogue, in 2021 as well as two predictive analytics tools Zodiac (2018) and Celect (2019).

However, the transformation hasn’t stopped there. Here’s a look at what else is on Nike’s digital transformation plate.

Nike Enters the Metaverse

In November 2021, Nike introduced the world to Nikeland , its Roblox -hosted metaverse. Since then, 7 million people have visited to browse merchandise, build and style avatars, design sneakers, play games, and roam its immersive 3D landscape.

Later that same year, Nike also acquired digital sneaker company, RTFKT, to help them expand into the NFT space and, so far, the partnership has proven to be successful. For example, in April of 2022, Nike and RTFKT Studio launched CryptoKicks Dunk Genesis, a collection of 20,000 non-fungible tokens (NFT) shoes that can be purchased and worn by your avatar in the metaverse. A total of 600 pairs of NFT sneakers were sold out in just 6 minutes, generating a total revenue of $3.1 million .

Supply Chain Transformation

Perhaps seeing the writing on the wall, Nike began reimagining its supply chain to reflect its increasingly digital, D2C strategy. To start, the company opened dozens of new regional distribution centers and launched a “sole train,” a dedicated high speed Los Angeles-to-Memphis train to transport items from the nation’s largest container ports and the company’s omnichannel facilities.

Similar to many companies, they also expanded their use of physical robots (or co-bots , short for collaborative robots, as they call them), advanced demand-sensing technology and inventory optimization platforms to not only increase the speed of order processing and helped them triple their order capacity during the holiday season, but increase the accuracy of demand forecasts and minimize environmental impact.

As Nike themselves put it in a recent blog post, “Using AI and machine learning, Nike is leveraging technology to forward-position the products that consumers love most and deliver faster, more precisely, and without compromising sustainability.”

Nike’s Next Move

When it comes to Nike’s long-term digital transformation ambitions, the race has only begun. In April 2022, it was announced that Nike had hired Dantley Davis as vice president of digital design. A long-time industry player, Davies helped build Netflix’s widely emulated digital interface and, later, served as Twitter’s first chief design officer. This move signals that a new era of innovation is about to commence.

So does Nike's announcement that they plan to build a new technology center in Atlanta. According to Footwearnews.com , “As part of this new office, Nike said it is launching three ‘Centers of Excellence’ focused on disciplines that are particularly strong in the region like logistics and supply chain, which Nike is using to accelerate its digital-first supply chain strategy. Nike added that the center will also focus on cybersecurity and will establish an East Coast cybersecurity command center. The facility will also explore artificial intelligence and machine learning to help reimagine consumer experiences.”

Furthermore, Nike also recently announced it will revamp its Nike China digital ecosystem including the Nike app and nike COM, snkrs app, Nike wechat applet, NTC wechat applet and other self owned digital platforms this July. Many also speculate that Nike will begin developing the next generation of fitness apps - ones that use biometric data to provide users with workouts specifically tailored towards their unique exercise habits, preferences and needs.

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Nike’s Social Media Strategy: Campaigns & Statistics

Did you know Nike has won an Emmy award for their “You Can’t Stop Us” commercial?

Apart from brilliant commercials, they have also developed a reputation for being one of the most iconic and influential brands in the world. They’re known for being accessible to all kinds of people, no matter their gender or age.

Their tagline — just do it — is known across borders and demographics, which helps them appeal to customers from all over the world.

For Nike, it’s not just about selling products—it’s about helping people get fit and healthy, which is why it has been so successful at reaching people who wouldn’t normally consider buying a fitness product.

They know how to use their products, customers, and reputation to communicate with their audience without appearing pushy or salesy. They also know how to appeal to younger generations while remaining relevant to older millennials — a difficult balance but one that Nike has managed well.

In this blog, we will do a deep dive into Nike’s social media strategy to see what they are doing right.

Let’s start with an analysis of their social media accounts.

Table of Contents

Analysis of Nike’s social media accounts

1. experimenting with content formats , 2. engaging with the audience, 3. following viral trends, 4. social listening, 5. sharing product updates, 6. collaborating with public figures, 7. focusing on customer relationships, 8. offering timely customer support, 9. providing social proof, 1. nike on instagram, 2. nike on facebook, 3. nike on twitter, 4. nike on youtube, nail your social media game with social listening, what is nike’s social media marketing strategy, what digital strategies does nike use, why is nike successful on social media.

Nike’s social media strategy has been building on the strength of its brand voice for many years now, and it shows in their social media posts. They have a powerful presence on Instagram, Facebook, and Twitter, amongst other platforms, with highly engaging content that appeals to their followers’ interests. They are well versed in community outreach .

Here’s a look at their followers on their main account:

Instagram: 252 million
Facebook: 36 million
Twitter: 9.58 million
LinkedIn: 5 million
TikTok: 3.1 million
YouTube: 1.71 million
Reddit: 568k

Apart from these accounts, their sub-accounts like @nikebasketball have 13.7 million followers, @nikesportswear has 7.9 million followers, and @nikewomen has 7.2 million followers on Instagram.

What makes Nike’s social media strategy successful?

Here’s a look at what makes Nike’s social media strategy successful:

One of the key elements of Nike’s social media strategy is its willingness to experiment with different content formats.

This includes using videos, graphics, or other types of multimedia to showcase their products and stories. By using a variety of content formats, Nike can keep its audience engaged in its content.

Another key element of Nike’s social media strategy is its focus on engaging with its audience. By engaging with its audience, Nike fosters a deeper connection and builds loyalty.

The brand often encourages its followers to share their own stories and experiences, using hashtags (such as #nikefc, #nikewomen, and #justdoit) and other tactics to spark conversations and create a sense of community.

To stay relevant and engage its audience, Nike carefully follows social trends and incorporates them into its marketing strategies.

For example, Nike has embraced the trend of sustainability and has made a commitment to using eco-friendly materials in its products.

By staying current with social trends and using a variety of marketing strategies, Nike can connect with its audience and maintain its position as a leading athletic brand.

Nike also uses social listening to monitor conversations and trends on social media. This allows the brand to stay up-to-date on what its audience is interested in and to respond quickly to any issues or concerns that may arise.

Nike regularly shares updates about its products on its social media channels to keep its audience informed and engaged.

This includes sharing news about their latest product releases, highlighting the features and benefits of new products, and showcasing the products being used by athletes and customers in real-life situations.

By sharing these updates, Nike creates a sense of excitement and anticipation among its audience and encourages them to stay up-to-date with the brand.

The brand has partnered with famous athletes and celebrities to promote its products and has launched social media campaigns to connect with consumers on a more personal level. It also helps them tap into the influencer’s audience and grow their online presence.

Nike is known for its focus on maintaining strong customer relationships. This is clear in Nike’s social media strategy. In fact, people proactively share their products on their social media handles.

Nike also uses its social media channels to connect with its customers on a personal level and create a sense of community and engagement.

Nike cares about its audience. So, they actively host initiatives related to pride month, diversity, and inclusion.

Besides sharing content, Nike also uses its social media channels to listen to its customers and respond to their comments and questions in a timely and personalized manner.

This helps them solidify their relationship with their audience and build further trust in their products. It also shows the brand’s commitment to customer service and helps to develop loyalty among its audience.

They not only address issues but engage with Tweets from their audience often like this:

All of Nike’s social media handles are stories of social proof. Even on a professional platform like LinkedIn, they showcase their celebrity collaborations and gain traction.

For example, their recent collaboration with 84-time award winner, Billie Eilish, gained considerable social media attention.

Even their Instagram grid looks like a wall of social proof from top athletes like Serena Williams, Megan Rapinoe, Chloe Kelly, and Amy Bream.

By watching their favorite influencers and athletes, their audience is compelled to join the Nike community.

Nike’s social media strategy in a glimpse

Let’s look at Nike’s social media strategy effectiveness:

In the past 3 months, Nike has received a staggering 8,832,062 engagements while posting only 58 items on their account.

Below is an overview of their follower growth, content formats, and most engaging content in the past year. Notice how they experiment with different formats while still relying on carousels as their top choice to drive engagement.

Interestingly, even though they have 36,089,093 followers on Facebook, Nike hasn’t used the platform in the past few months. This has contributed to their dwindling engagement. They don’t use this platform actively, and their second-most recent post is from 2018.

This post features ace tennis player — Roger Federer. So, even though they may not remain active on Facebook, the faces they feature are enough to get people talking. And their fans can’t help but support them by liking, sharing, and commenting on their content.

With 9,602,018 followers and 38,095 tweets, Nike is pretty active on their account. As you can see in the Keyhole dashboard above, Nike has been enjoying steady daily follower growth.

You also notice that a significant part of their Twitter marketing strategy is actively responding to their audience. 10% of their activity comes from tweeting, with a heavy reliance (57%) on text-based tweets.

They also collaborate on tweets with their other accounts to increase their reach and engagement. Not only that, they even mention FC Barcelona’s Alexia Putellas and congratulate her on becoming the first woman to win the prestigious Ballon D’Or award.

Why does this work? It shows their commitment to sports and also educates their audience on the happenings in the sports world.

In the past 3 months, Nike has received decent engagement on its YouTube channel. In fact, they have over 21 million views on their top video — Rise of the Kids | Sport is Never Done . Their second and third most-watched video during this period has almost 10 million and 4.5 million views respectively.

From September to December 2022, they made 52 videos and amassed 52,716,436 views from their total views of 434.5 million.

This only goes to show that no matter the length of the videos, Nike’s social media strategy significantly relies on YouTube for engagement (and revenue).

You can have a winning social media strategy too. How?

Use social listening
Monitor your performance
Do a competitor analysis quarterly

Nike’s tagline is a philosophy that underlines its entire brand. They have built an empire on the belief that you can be anything you want to be, and they’re putting that belief into action with their products.

But how are they doing it? They have an incredible social media presence that makes people feel inspired, motivated, and excited about what they’re creating.

They don’t force you to do anything — they just show you their extraordinary product potential via social media and their other marketing initiatives.

Still, you don’t need to be as big as Nike to nail your social media marketing game.

To leave an indelible mark on social media by leveraging features like social listening, sentiment analysis, and competitor analysis, start your free trial with Keyhole today .

Related Articles: A Guide On How To Do An Instagram Competitor Analysis In 5 Steps

How to Track & Analyze Competitors on Facebook

Frequently Asked Questions

Nike’s social media marketing strategy includes featuring brand collaborations and product releases and creating multiple accounts to expand its reach. This includes Nike women, Nike Football, Nike Basketball, and Nike Yoga.

Nike uses social media marketing for brand promotion and athlete sponsorship. They also use email marketing to share offers and discounts with their subscribers frequently.

Nike organically shares their collaborations with celebrities and athletes on their social media accounts. They also engage with their audience often and share causes they support. Apart from this, Nike also employs storytelling to engage its audience.

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Nike Marketing Strategy 2024 - 7 Effective Findings from Case Studies

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Published on Sep 20 2023

Nike Marketing Strategy 2024 - 7 Effective Findings from Case Studies

Nike marketing strategy: top effective findings from case studies, history of nike, goals and objectives - nike marketing strategy, nike’s target audience, nike marketing strategy: challenges, solutions, and its approaches, how nike’s marketing strategy evolved, how to apply the nike’s marketing strategy to your brand, growth and market reach, what to take.

Nike has taken an image of an athleisure company and an American multinational corporation, but, the brand has taken way the world with inspiration, emotion, diversity, and unity with its simple marketing campaigns.

The core purpose of Nike marketing strategy is to keep moving the world forward. Over the years, it has launched and introduced various stylish and sustainable services from remembering the Swoosh, and the tagline ” Just Do It” which does not only come into our mind.

Enlisting the action of Nike's marketing strategies is remarkable. What makes it so special to get the products?

There are multiple reasons why people buy Nike products in this case study explained, but, one absolutely convincing means is that it is more than a brand that builds communities, planet protection, and makes sports accessible beyond diverse horizons. We have also discussed the top Nike Marketing Strategies that you can learn in 2024.

Purpose of the Article

The main aim of this article by Sprintzeal caters to information as social proof from various case studies about a process, product, or service that can resolve marketing issues.

Known as one of the largest athletic apparel companies, Nike (Nike, Inc.) is an American multinational association that deals with the design, development, manufacture, and global marketing and sales of footwear, accessories, apparel, equipment, and services. Began with a mission to, “bring inspiration and innovation to every athlete” in the world It is based in Beaverton, Oregon, NIKE, Inc. includes the Nike, Converse, and Jordan brands, and many more.

It was founded by Bill Bowerman and his former student Phil Knight in 1964.

Nike plans to build a 3.2 million square foot expansion to its World Headquarters in Beaverton.

The Nike brand strategy focuses on bringing the culture of the invention to today’s athletes while solving issues for the upcoming generation.

Nike has acquired and sold several footwear and apparel companies over the years. It has also acquired Starter, Zodiac, Celect, and Datalogue and purchased RTFKT Studios.

It was founded in 1964 by Bill Bowerman, a track-and-field coach at the University of Oregon, and his former student Phil Knight as Blue Ribbon Sports. The brand was rebranded in the 60s, their company was relaunched as Nike in 1971.

In 1972, Blue Ribbon sports which later became Nike unveils "Moon Shoes

In 1974, the Waffle Trainer was patented, featuring Bill's famous Waffle outsole.

In 1982, introduced the Air Force 1 basketball shoe.

In 1994, Nike signs LeBron James

In 2000, launched Nike Shox in the market.

In 2008, introduced the Flyware shoe and signs Derek Jeter

In 2018, introduced React Element 87. Nike launched a new "Just do it" ad campaign featuring Colin Kaepernick.

In 2020, Nike Air-max 97G "Peace and love" was introduced. It also reveals uniforms for the 2020 Tokyo Olympics.

The main priorities and objectives of Nike marketing strategy,

It includes promoting diversity, equity, and inclusion.
Innovations that create sustainable materials and approaches to tackle environmental impact.
Towards advancing a transparent and responsible supply chain.
To build community by investing in organizations that pay efforts on economic empowerment, education, and equality.
Uplifts unity with the current generation through sport and encourages an active lifestyle to reach their potential future.

To truly understand the effectiveness of Nike's marketing strategy, it's crucial to dissect the various segments within their vast target audience. Nike's ability to connect with different consumer groups is a central theme in this Nike marketing strategy case study. Let's delve deeper into these segments:

Athletes, Professionals, and Enthusiasts: Nike casts a wide net, catering to athletes at all levels, from elite professionals to passionate enthusiasts. Their product range is meticulously designed to enhance athletic performance, making Nike the preferred choice for athletes worldwide.

Running Enthusiasts: Nike's dominance in the running domain is unparalleled. They offer an extensive selection of running shoes, apparel, and accessories tailored to the specific needs of runners, whether they're seasoned marathoners or occasional joggers.

Sports Enthusiasts: Beyond athletes, Nike appeals to anyone with a fervent passion for sports. Their marketing efforts invite individuals to adopt the mindset of an athlete, whether they actively engage in sports or simply lead an active lifestyle.

Women in Sports: Recognizing the growing influence of women in sports, Nike has dedicated a significant portion of their marketing efforts to empower female athletes and sports enthusiasts.

Young Athletes: Nike understands the importance of cultivating brand loyalty from a young age. Their marketing strategies are crafted to inspire and engage young athletes, nurturing a lifelong connection to the brand.

Sustainability Advocates: In recent years, Nike has expanded its reach to consumers who prioritize sustainability and ethical practices. Their marketing seamlessly integrates these values, resonating with the environmentally conscious audience.

This diverse and inclusive approach to their target audience has been a pivotal factor in the success of Nike's marketing strategy. It showcases their ability to resonate with a wide range of consumers, from professional athletes to environmentally conscious individuals.

Striving to create more eco-friendly materials as possible, bioplastic for their sneakers is used as a replacement for plastic, leather, and other materials.

Well known for the fact that Nike promotes its products through sponsorship agreements with influencing athletes, professional teams, and athletic teams.

- High level competition of Nike with Adidas and Reebok and other companies with the closely similar product line and common target markets.

- Limited exports of Nike products due to legal restrictions can be one reason for fewer sales or revenues.

- The economic and political situation of those countries manufacturing Nike products is also one main challenge.

- Being a global brand, controversies are sensitive to the company image.

Hence, these is some of the reasons why strategies are relevant for Nike.

The questions still arise, why do people go after Nike products even if several brands apply the same approach? Does Nike market segmentation do it differently?

With being able to pull effective Nike marketing plan guidelines over past years; the other part also had faced consequences and drove up on solutions-making with,

1) Advertising

One of the key parts of the Nike advertising strategy is advertising through television ads and other social media forms with affiliate marketing.

In 1982, Nike aired its first three national television ads during the broadcast of the New York Marathon.

2) New Media Marketing

Having to understand the importance of having different mediums along with display advertising, content marketing, and social media promotions, boosts Nike global marketing strategy in the right direction.

Nike is risk-taker, with the way to early application of internet marketing, email management technologies, narrowcast communication technologies, and broadcast to build multimedia marketing campaigns.

3) Emotional Branding

How undeniable that Nike always puts powerful emotions through the brand! The advertisement seldomly briefs on its products and services.

A few of the best ads and commercials from Nike quotes for motivation, inspiration, and greatness can be:

“We gave up giving up”,

“All you have to do is pick up your feet.”

“My better is better than your better.”

“Don’t believe you have to be like anybody to be somebody.”

The building of the right emotions by Nike effortlessly comes through curated content and narrative that again narrates a story; a tale of inspiration applicable to anyone to combat their challenges and meet their victory.

Instead, Nike emotional branding has been impactive followed as an effective strategy in the world of marketing at present. It inturns invokes emotions related to success, morale, victory, and self-improvement which makes it a powerful product.

4) Nike Target Market Segmentation

One thing marketers should learn from nike segmentation targeting and positioning

is understanding their customer.

And, Nike focuses very well on their main target markets for their product and services i.e., athletes, runners, and sports enthusiasts.

In the running years, it enlarges strategies to lead precise market segments for runners, women, and young athletes.

An observation is taken into action to create that meets the custom interests as per customer requirements.

5) Convey a Story

To have been accompanied by a global audience, another marketing strategy applies by conveying the story in simple and effective points rather than using descriptive or jargon with their brand voice.

In this way, they connect and try to encourage the masses to chase their dreams and “Just do it”.

An instance as shown in the above image; another excellent technique is their tagline which builds an emotional marketing story that relates to anyone to catch their dream and build customer loyalty,

6) Newsworthiness

This brand strategy uses newsworthiness to impact and appeal to a story. In most cases, it uses recent events or happenings about what people need or want to know.

It is also tricky to decide what stories to cover, but Nike evaluates and continues with newsworthy stories before the release to avoid controversies or false information.

This pattern could be applied based on events that impact your readers all over the world

7) Invest in Customer Loyalty

In Nike, it associates with diverse masses apart from the target audience. Does it have good customer loyalty? Yes.

With less loyal customers, the challenge to come up with anticipatory decisions and effectively plan your finances can be scary.

One of the reasons the brand is irresistible globally till current which is less surprising is sole because of customer loyalty. The precise, well-executed product and service not only attract new customers but retain customers with good profit margins.

- Nike is releasing “No Finish Line,” a new book that celebrates and figures Nike’s 50 years of game-changing design and innovation in the favor of athletes and sports. It lay down a design vision for the next 50 years.

- It applies measures to create a better future by investing in active and inclusive communities. Nike Community Impact Fund (NCIF), an employee-led and neighborhood-focused approach

in aid of local community organizations globally for a positive, effective, and making a play for all the kids.

- Nike made about 35% digital and aims to achieve 50% by 2025.

One of the best ephemeral approaches is that a part of Nike’s success goes to influencing and inspirational athletes such as Michael Jordan, Mia Hamm, Roger Federer, Tiger Woods, Kobe Bryant, Lebron James, and many others.

To truly appreciate the efficacy of Nike's marketing strategy, it's essential to trace the evolutionary path it has taken over the years. This retrospective analysis of Nike's marketing strategy is integral to our Nike marketing strategy case study. Here is a comprehensive exploration of the evolution of Nike's marketing approach:

The Early Years: Nike's origins can be traced back to its predecessor, Blue Ribbon Sports, which primarily served as a distributor of Japanese running shoes. During this nascent phase, Nike's strategy was firmly rooted in performance and innovation.

The Birth of Nike: In 1971, Nike emerged as a distinct entity, drawing inspiration from the Greek goddess of victory. This marked the inception of Nike's emphasis on empowerment and achievement, an approach that would become central to their branding.

Celebrities Take Center Stage: The 1980s heralded a new era for Nike, marked by the strategic use of celebrity endorsements, most notably with basketball icon Michael Jordan. These high-profile endorsements solidified a deep emotional connection between Nike and consumers.

The "Just Do It" Era: In 1988, Nike introduced its iconic "Just Do It" slogan, encapsulating the ethos of personal determination and resilience. Swiftly, it became synonymous with the brand's identity and mission.

Digital Transformation: Nike was an early adopter of digital marketing, recognizing the potential of the internet and social media. They harnessed these platforms to engage consumers through multimedia campaigns and create a digital presence that mirrored their innovative spirit.

Emotional Branding: Nike's pivot towards emotional branding represented a pivotal moment in their marketing evolution. Rather than simply showcasing products, they focused on evoking powerful emotions, such as success, motivation, and self-improvement. This shift solidified Nike as a potent and influential brand.

Sustainability and Inclusivity: In recent years, Nike has demonstrated a commitment to sustainability and inclusivity, both in their products and marketing. They aim to create eco-friendly products and promote social responsibility, aligning with the evolving values of today's consumers.

This journey of evolution highlights Nike's remarkable adaptability and capacity to align their strategy with changing consumer landscapes. From their roots in performance and innovation to their current focus on emotional branding, sustainability, and inclusivity, Nike's marketing strategy has continued to resonate with a diverse and ever-changing audience.

To harness the power of Nike's potent marketing strategy for your own brand, it's essential to follow a well-defined blueprint. This section of our Nike marketing strategy case study provides a step-by-step guide on how to apply Nike's principles to your brand effectively:

Know Your Audience Inside Out: Much like Nike, start by conducting thorough market research to understand your target audience's specific needs, preferences, and aspirations. Tailor your products and marketing strategies accordingly.

Forge an Emotional Connection: Take a page from Nike's playbook and aim to create profound emotional connections with your audience. Share compelling stories that resonate with your brand's mission and values, inspiring and motivating your customers.

Embrace the Digital Realm: Leverage the expansive digital landscape, including social media, content marketing, and multimedia campaigns, to amplify your brand's reach. Follow Nike's lead in utilizing these platforms effectively to engage and captivate your audience.

Champion Sustainability and Social Responsibility: If your brand aligns with sustainability and social causes, make them integral to your strategy. Showcase your commitment to positive change through sustainable practices and support for relevant social issues.

Consistency is Key: Maintain a consistent brand image and message across all marketing channels. This consistency not only reinforces your brand identity but also leaves a lasting impression on your audience.

Prioritize Innovation: Continuous innovation should be at the heart of your strategy, much like Nike's dedication to pushing the boundaries. Innovate your products and marketing strategies to stay relevant and capture the full attention of your audience.

Leverage Influencers and Celebrities: Collaborate with influencers or celebrities whose values align seamlessly with your brand's mission. This partnership can help expand your reach and enhance your brand's credibility, similar to Nike's successful partnerships with iconic athletes.

By following these steps, you can effectively incorporate the power of Nike's marketing strategy into your own brand. Building a successful brand, as exemplified in this Nike marketing strategy case study, requires a strategic approach, unwavering dedication, and a profound understanding of your audience's aspirations and needs.

Don't Wait, Just Do It

In the ever-changing field of marketing, the key to success is action. Much like Nike urges you to take action; we encourage you to propel your digital marketing career forward by enrolling in Sprintzeal's Digital Marketing Course. Don’t let your hesitation cost you your opportunities.

Equip yourself with the skills, knowledge, and confidence excel in the digital marketing domain. We curate and design our courseware to ensure you're well-prepared for the dynamic world of digital marketing. So, why delay? Enroll now , and allow us to help you make your career in digital marketing.

As per Wikipedia , During the Q1 of 2020, the company's online sales have grown by 36%. While the net income in mil. is $6,046 and revenue is $46,710 in 2022.

As per the Forbes report, Nike's Financial Summary for 2022, the revenue is $46.9 billion with assets of $38.6 billion and profits of $6.1 billion.

The following image gives a glance at the percentage growth with the approaches.

Image Source: Nike

Final Results

During the article study, we also found that problems may occur subsequently with changes made to the distribution, marketing, and management strategies of Nike.

Companies can refer to Nike's marketing strategy to influence the four Ps i.e, price, product, promotion, and place. New features may expand the changes to higher growth of the product and might develop a new market.

Source 1: Nike-A Case Study Just Do It

Source 2: Nike Marketing Case Study

Source 3: An Investment Analysis Case Study: Nike - NYU Stern

Research Details

This article emphasizes curated study from three case studies apart from Nike’s official website.

Therefore, all the effective strategies are presented for information and education means for readers in response to the current marketing issues along with the given references in this article.

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Winning the market is one technique that Nike has been doing so well since its implementation till date. What’s even interesting is having to market its products under its various brands and subsidiaries.

The subsidiaries like Nike+, Nike Golf, Nike Blazers, Nike Pro, Air Jordan, Air Max, and other brands like Hurley Int., Jordan, and Converse.

In the field of such marketing, digital marketing plays a dominant role. To pursue a career in digital marketing training, choosing from a globally recognized ATO (An accredited training organization) from Sprintzeal accelerates your career of interest.

To explore more courses, consider visiting Sprintzeal’s all courses and earn a certification to level up your career.

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Assignment: Digital Innovation and Transformation…

Nike: Just do it. Differently!

Nike is responding to the COVID-19 by leveraging its digital resources to connect athletes with customers, strengthening its digital ecosystem and boosting online sales.

Just do It, at Home!

Nike is well known for its branding, marketing and advertisement strategy, which is considered a best practice by many scholars and practitioners in the marketing space. From a simple and powerful logo that represents the iconic brand, to a long-lasting slogan that calls for action and attitude. At the same time, the company associates its image with high performance athletes and a lifestyle that everyone somehow pursues.

The company’s main slogan “Just do it”, created back in 1987, calls for movement, action, empowerment and initiative. So, what about now, during the COVID-19 pandemic, when everybody is stuck at home? without gyms, without social gathering, no jogging and no social interactions where you would have the opportunity to show off your new Nike air? How to send its message and keep customers engaged while they pretty much stay at home?

Impact of COVID-19

Just like many other companies in the consumer and fashion industry, Nike was heavily affected by COVID-19 lockdown. As a global brand with 1,100 stores, Nike closed more than half of stores in China as early as February to protect its employees; and decided, by mid-march to close all stores in the US, as the virus started to spread in the country. Even for stores that remained opened, the foot traffic has declined significantly.

Pathways to a Just Digital Future

Nike’s response

In response to the pandemic, Nike boosted its digital strategy and its direct sales, and adapted its message to the “new normal’. Nike created different digital spaces for customers to interact with the brand’s big influencers: the high-performance athletes.

With slogans like: ”Play inside”, “ Play for the World”, “You can’t stop us” featuring athletes and regular people playing in their living rooms or backyards, Nike is reducing the distance between these athletes and their customers and keeping customers engaged during lockdown.

The company also deployed many digital contents and platforms for free:

Nike’s digital ecosystem : A library of digital workouts and resources for free, including Nike App , Nike Training Club App ( NTC ), Nike Running Club App ( NRC ), social channels, nike.com , and its podcast TRAINED .
Livestream workouts. Live workouts are streamed every Saturday by Nike Master Trainers for free on the Nike Youtube channel .
Digital Fitness Challenges . A flagships initiative during the COVID lockdown has been the The Living Room Cup – a digital workout series where athletes set challengers for users to take part in at home. Global Athletes like Lebron James or Cristiano Ronaldo stream themselves doing a workout and challenge users to compete against them. Players can share their results on their Instagram profiles using the hashtags #playinside and #thelivingroomcup.

Just like its slogan says, Nike campaigns are not only informative, they are actually pushing customers to do something! Using the COVID-19 as a marketing campaign may seem opportunistic, but for Nike, it goes beyond that, it is a matter of connecting to customers and keeping the business and the brand alive in customer’s mind !

If you can make some sales in the process, much better!

So, the question is: Is this working? Is the company able to monetize it?

Student comments on Nike: Just do it. Differently!

It’s really cool to be able to see how Nike’s digital strategy is actually playing out during this pandemic. I am curious to see if these engagement / online sales numbers extend after the pandemic is over. Specifically, since online sales are increasing across the board at most ecommerce compnies, is this just a macro effect, or is it really because the digital apps that Nike has invested in is really helping to drive that growth? Another question I had was whether this growth will be sustained throughout the pandemic. It does seem that a lot of people were massively buying items especially in the beginning but as quarantine became more normalized, the buying has been shown to taper off. Will that especially be the case for sneakers since we’re not going outside as often now?

Interesting post! Thank you for sharing.

I hadn’t heard of a lot of these initiatives – including the Living Room Cup, which is a great way for Nike to maintain engagement with its customers during the pandemic. Nike clearly is now generating far more data, via these digital channels, than they were before. I wonder how well equipped Nike is to take advantage of this data? It seems they have been building up their analytics capability over the past few years – with the acquisitions of data analytics companies Zodiac and Celect – so they’re probably well-positioned.

I also wonder how they can maintain this data capture in a post-coronavirus world – I would love to see them use their digital ecosystem to support the in-store shopping experience (e.g., to instantly check stock). Given the acceleration in adoption of their digital ecosystem, due to coronavirus, the business-case for developing these features has become even stronger!

Great post! I studied Nike’s data analytics, digital strategy and its ” consumer direct offense” for my last post: https://d3.harvard.edu/platform-digit/submission/nike-just-do-it-with-data-science-and-demand-sensing/

Indeed it has been working very hard on its digital strategy even before COVID happened and because of that infrastructure in place, they are able to reap benefits now. They are focused on collecting as much user information as possible to make their datasets robust for analytics. It is, therefore, crucial for them to remain connected with their consumers at this time when stores are closed so that they can continue getting information about them. These fitness apps are one great way of doing so.

Case Study: Nike’s Digital Marketing Strategies 2024 Edition

July 18, 2023

When we think of businesses that sell sports shoes or running shoes , one of the first names that come to our mind is Nike .

The business giant initially started as an American import-export company that imported the infamous Tiger shoes from Japan and sold it to American citizens.

Founders of Nike

Phil Knight , a college student, and his coach Bill Bowerman came together to start this venture in 1964 under Blue Ribbon Sports .

Their business was a success from the start as they bridged the gap that existed in the community. They provided superior quality shoes at affordable prices in comparison to their now competitors, Adidas or Puma.

In 1971 , due to a conflict with Tiger shoes, Blue Ribbon Sports officially split from their supplier and renamed themselves, Nike. Inc. based on one of their revolutionary designs the “Tiger Cortez” or the “Nike Cortez” which was the reason for the conflict in the first place.

Nike Revenue from Financial Year 2005 to 2022 (in Million USD)

Nike has generated over 46.71 billion USD in revenue in 2022 establishing itself time and again as a force to be reckoned with.

Nike Revenue graph from Financial Year 2005 to 2022 (in Million USD)

As of 2022, Nike is operating in over 1000 retail stores across 170 countries and has over 80,000 employees . Their world headquarters are located in One Bowerman Drive, USA, and have several head offices across the globe.

They have expanded their product inventory from selling just sports shoes to selling shoes, clothing, equipment, and sports accessories for men, women, and children.

Nike – Company Highlights

Over the years, Nike has come up with some of the most innovative and creative ad campaigns . From their infamous “Just do it” campaign in 1988 to its most recent “Dream Crazy” campaign in 2022 , Nike has experimented with and tested several different marketing strategies.

So let us now analyze the different marketing strategies that were implemented by Nike to sustain and thrive across decades.

Nike’s Ideal Target Segment

Over the years Nike has gradually treaded into the luxury industry . They not only have a wide range of inventory, but they also have versatility in their price range.

This has expanded their target demographic. Individuals from high-income families and socio-economic groups form Nike’s Ideal target audience.

Consumers who are sports enthusiasts and prefer a healthy lifestyle but are still conscious of their image and brands form their major target segment.

North America generates the most revenue for Nike.

When we further analyze this data, it can be concluded that men form a vast majority of their consumer group, responsible for 55.06% of the total engagement and women contribute 44.94%.

Three primary age groups generate the most traffic on their online sites. Those in the age group of 25-34 form the majority by contributing 31.18% of the traffic. Those in the age group of 18-24 and 35-44 contribute 26.84% and 19.09% respectively.

Now that we have discussed the ideal target audience, let us look at some of Nike’s digital ad campaigns to better understand the strategies and practices implemented by them.

Nike’s Successful Digital Ad Campaigns

Nike’s campaign 1 – the wonder woman of vogue.

“The wonder woman of vogue” campaign was Nike’s way of showing that they are proud allies of the LGBTQ+ community while still promoting their latest collection called “#BeTrue” .

This video ad campaign was produced by Public Record and was aesthetically conceptualized and shot by Daisy Zhou .

Nike collaborated with Leiomy Moldonado a Vogue artist and ballroom dancer who is also a part of the LGBTQ+ community. The entire short film’s audio appeal was enhanced with wonderful narration by Precious Angel Ramirez .

Every athlete can leave a mark on this world. @wond3rwoman1 takes the #BeTrue collection to the ball. Learn more: https://t.co/qRCpTZQ0SN pic.twitter.com/R2LZvwW5qX — Nike NYC (@NikeNYC) June 22, 2017

The ad campaign was shot as a short film that served three primary purposes. The first purpose was to explore the contributions of the LGBTQ+ community to art , particularly the birth and culture of Voguing.

The second was to promote their latest collection

And third, the purpose was to celebrate PRIDE month . And the ad managed to do all this in a duration of a minute, and that is the power of storytelling .

The ad was released on Nike’s official social media pages like Facebook, Instagram, YouTube, and others.

Nike’s Campaign 2 – You can’t stop us

Nike launched the “You can’t stop us” campaign in July 2020, to inspire people when all hope was lost during the pandemic. The goal was to motivate and give hope to people that things will get better and that they can overcome challenges and emerge victorious.

The ad was conceptualized and created by Weiden+Kennedy . The whole process involved analyzing and handpicking a few videos from more than 4000 videos showcasing brilliant moments of human resilience and the power of determination across different sports like tennis, baseball, gymnastics, basketball, skateboarding, athletics, and so on.

The edit, flow of the story, and the raw emotions that can be felt in the ad form the entire crux.

The ad was released on major social media platforms like YouTube, Instagram, Facebook, and others. The 1.5-minute ad inspires, motivates, and gives hope to people to stay positive during difficult times as there is always a meaningful light at the end of the tunnel.

This ad campaign was not created for sales or to generate revenue . It was created with a consumer-centric approach to stand as a source of support to all those suffering in a major healthcare crisis .

It reflected Nike’s brand and its image and mission through powerful storytelling, visuals, and auditory elements.

Nike’s Campaign 3 – Reactland campaign

Nike’s Reactland campaign was launched in March 2018. The ad campaign was one of a kind with its perfect blend of technology and product placement.

Nike collaborated with Wieden+Kennedy Shanghai to create a unique AI experience for their customers while showcasing their latest collection of running shoes.

The experience allowed shoppers to try on the new collection , and get their pictures clicked to help in the creation of their 8-bit avatar .

The customers would then step on the treadmill and start running. And this would reflect on the screen as their avatar. At the end of this immersive experience, the customers would receive a 10-second customized video of this experience.

And about 50% of the customer s who tried on Nike’s react running shoes and had this immersive AI experience ended up making their purchase.

This installation was introduced in only four stores and also a pop-up store in China for about a month.

The customized videos and campaign ads were promoted on different social media handles with the hashtag “Reactland” and “Nike” .

It was an extremely unique and innovative marketing strategy that took in-store trials to the next level. It proved to be immensely successful in reflecting Nike’s brand value.

Nike’s Website Strategies

The main purpose of the website is to generate a stream of revenue and an online presence for the brand.

Nike’s website is well organized and categorized to ensure a seamless customer experience . It has a mobile-first approach to ensure that consumers can access and log in to the website through any device.

The look and feel of the website are minimal and cohesive with the brand’s image and have a user-friendly UI design .

Having said this, some argue that the color choices and style of design might be a little too boring and forgettable. It is a fast-loading website that has clear and distinct labels and hyperlinks placed to ensure easy navigation throughout.

Nike's Website Strategies - products and categorization

All the different products are categorized accordingly to ensure customers can easily access what they are looking for.

Flexible payments and filters encourage consumers to buy with ease and also help with quality lead generation.

The brand’s website also supports easy ordering and tracking by all teams and consumers to ensure the entire process is smooth. They also facilitate consumers to customize their orders and this is completely done through their website.

The website is also highly interactive and has quality links embedded to access the homepage and sub-pages. Nike has also implemented an efficient feature that allows its customers to access any part of the website with just a click.

And the website has over 92 technologies embedded to ensure no lagging occurs at any stage of the ordering process.

Overall, Nike has a well-rounded and inclusive approach to its website to ensure the best experience for its customers.

Hence, we can conclude that Nike has a consumer-centric approach to creating and developing its website.

Nike’s SEO Marketing Strategies

Nike has an optimized online presence which is reflected in its website traffic. According to SEMrush, Nike receives a total of 179.1 million average online visitors every month . Consumers surf through the website for an average of almost 4 minutes .

And Nike occupies the 4th position in the US in the category of “Fashion and apparel” .

These statements reflect the quality of the plans and SEO strategies implemented by the brand.

Nike has performed timely on-page and off-page SEO audits for its multiple websites to ensure that it is bringing in quality leads.

24.45% of the total traffic on their website is generated organically. Hence, we can conclude that their keywords, landing pages, and content have been fully optimized for the purpose.

Nike’s website migration to nike.com, optimization of the homepage to add value to internal linking, and its investment in launch pages have significantly improved its ranking online.

Nike’s Unique Product Landing Pages

Uniquely created product splash pages are a great tool to drive consumers into downloading and installing the Nike app to facilitate conversions.

https://www.nike.com/air-max
https://www.nike.com/air-force-1
https://www.nike.com/jordan

The brand has optimized and retargeted its keywords to ensure that the business ranks high even when generic terms are searched.

Nike has optimized its website for over 112k keywords out of which some of the top searches are:

Jordan shoes
Nike air force 1
Nike shoes for men

Overall, Nike has focused on fully developing all aspects of its website to ensure maximum reach and engagement .

Their design and approach are cohesive with their brand. They have impeccable and innovative site architecture and pages that not only create a seamless experience for the consumers but also generates quality leads and conversions for the brand.

Nike’s Main Organic Competitors

The top five competitors of Nike are:

Foot Locker
Dicks Sporting Goods
Sports Direct

Each of these brands focuses on the sports and athletics category and caters to a similar clientele. Hence, Foot Locker and Nike have an affinity score of 100%. Food Locker receives a total of 17 million visits a month in comparison to Nike’s 179.1 million visits.

Nike’s Social Media Marketing Strategies

2.70% of the engagement on Nike’s website comes from their social media. Given that their total revenue was 44.5 billion USD in 2021. They are active on several different social media platforms, 26 to be exact.

Out of these, YouTube (37.97%), Facebook (32.64%), Reddit (7.03%), and Twitter (6.38%), are the most popular ones.

Nike's social media traffic and marketing strategies

They have a multiple-account approach which means that Nike is operating more than 300 official accounts on several different social media platforms simultaneously. This is a common strategy adopted by large brands to ensure that each of their product categories is being marketed effectively and accurately.

These social media accounts are for their men’s collection, women’s collection, kid’s collection, yoga, swimwear, basketball, football, skateboarding, and so much more.

Nike’s content team creates highly specific and brand-cohesive content that can be shared on all platforms with just a few minor tweaks.

Powerful story-telling through an emphasis on EQ and simple yet catchy slogans is their signature approach. Powerful visuals speak louder than words and hence most of their social media campaigns prioritize the auditory and visual spectacle over the spoken word.

Very cleverly, they have established themselves as not only a business that sells products but as a brand that promotes a healthy and conscious lifestyle . This is crucial to influence the consumers and convert them into loyal customers.

Nike’s social media content always ensures to bring to light any issues or movements unfolding in society. Hence, they have shown their support by conceptualizing and creating campaigns against racism, hate, and violence .

Nike has a huge list of A-list athletes who endorse the brand. And this facilitates the creation of likable and shareable social media content.

View this post on Instagram A post shared by Nike (@nike)

View this post on Instagram A post shared by Nike Football (Soccer) (@nikefootball)

Top athletes like Lebron James, Michael Jordan, Tiger Woods, Serena Williams, Marcus Rashford MBE, and Christiano Ronaldo endorse the brand, appealing to a much wider demographic.

Overall, Nike has a very clear, concise, and no-nonsense approach to its marketing which stands cohesive with its brand image.

Nike’s Influencer Marketing Strategies

Nike is one of the many brands that has actively utilized the power and reach of celebrities to promote the brand right from the start. Hence, they have always been aware of the influence of those select few who can take the brand to the next level.

The type of marketing that involves onboarding celebrities or social media influencers to promote the products of a business to their respective fan base is called influencer marketing . The system of payment between the influencer and the business client can vary accordingly from freebies, benefits, and memberships to financial payments and sponsorships.

The Lebron XX. These aren’t your father’s shoes. Well, unless you’re Bronny. #LeBronXX 👑🕰️ pic.twitter.com/Pvb16JscuD — Nike (@Nike) November 2, 2022

Thank you, Sue 💛 We partnered with @nike and friends to celebrate @S10Bird ’s epic career. pic.twitter.com/FrfNwFDcPU — TOGETHXR (@togethxr) August 7, 2022

Nike believes in the “Pyramid Spillover” approach which means that the athletes who endorse the brand influence consumers and also reflect the image of the brand.

And this belief can be seen in most of Nike’s ad campaigns which involve top athletes from different sports and games.

Nike has also collaborated with other well-known personalities like Drake, Kanye West, J Balvin, Anna Wintour , and so on.

From Steve Prefontaine and Michael Jordan to Rafael Nadal and Tiger woods , Nike has a checklist of traits that it actively seeks out in its ambassadors.

Roger Federer & Rafael Nadal Nike's influencer strategies

And so far, all have proved to be immensely successful.

Due to its brand value and legacy, Nike does not pay social media influencers to promote its products. These influencers do reviews and unboxings of Nike products to gain traction for their accounts and all the brand has to do is permit them.

Overall Nike has a fully optimized influencer marketing strategy which has facilitated not only sustaining its brand value but also enhancing it.

Nike’s E-commerce Strategies

A successful e-commerce strategy facilitates a wide reach and more revenue generation. And before the pandemic, Nike had optimized its e-commerce strategy which was based on the “Triple Double strategy” . This strategy involved doubling the efforts and focusing along three lines, innovation, speed, and direct contact with consumers.

Since 2017, Nike shifted their focus from solely catering to the wholesale needs of retailers to directly supplying shoes to consumers in the retail category.

And hence, they began reducing their dependence on departmental stores and directly connecting with buyers online. This was the start of their innovative e-commerce strategy.

They developed their channel of communication to ensure the best experience for their customers. They stopped selling on Amazon in 2019 and decided to go with only 40 strategic retailers and maximize their sales on their e-commerce platform .

With a highly efficient app and website , they cater to every need of the consumer to ensure maximum lead generation and conversions.

Keeping consumers engaged in between their purchases is crucial to retaining them in the long run. And Nike continued with product launches even during the pandemic to maximize their sales by analyzing consumer behavior and relevant data. A great example of their strategy and innovation was their launch of active maternity wear in 2020 to cater to a unique clientele.

Similar to Apple, Nike has built an efficient ecosystem that facilitates consumers to step into the business from several entry points.

Their training apps and running cubs are a few of these entry points. This is a great strategy to optimize e-commerce while expanding their demographic.

Overall, Nike is one of the leaders in successful e-commerce strategy which has enabled it to not only reach out to a versatile demographic but also grow its business exponentially.

Nike’s App Strategies

Nike’s app strategy is very clear. They believe that a unique and unforgettable experience needs to be provided in both mobile shopping and traditional stores.

So, to optimize their mobile apps, they have ensured quick download and installation followed by an easy registration process.

They have a multi-app approach to ensure each of their categories receives the attention and focus they need to expand and generate revenue.

Their apps are compact and designed to bear less load. They have a clear and simple inventory display which allows consumers to navigate effortlessly and make their purchases.

Nike has introduced built-in tracking systems that allow the app to collect user data which is then analyzed and implemented at every stage of the design process and marketing.

And lastly, they create unique experiences and a sense of exclusivity which can be seen in the launch strategy of their app exclusively for sneakerheads . They focus on a narrow consumer pool for such launches and build on the traction received from the exclusive clientele.

Overall, their app strategy is unique and holistic that ensuring the brand is optimized at all levels efficiently.

Nike’s Content Marketing Strategies

Content marketing is a very powerful tool that facilitates customer retention and also quality lead generation. It refers to the concept of creating unique and engaging content in the form of videos, blogs, commercials, podcasts, etc, and promoting that on different mediums.

It reflects the brand value and is extremely valuable for engaging customers in between their purchases and ensuring that your brand is memorable.

Nike has effective content marketing strategies that consist of immersive social media posts and challenges, engaging blogs, and even video content on trivia about the brand and also their stand on certain topics of importance like equality, discrimination, and so on.

Their content strategy relies on powerful storytelling that pays homage to raw human emotions.

Their content is inspirational and aims at motivating and encouraging people to practice a healthy lifestyle and stay resilient in tough times.

Overall, their content marketing strategy is inclusive and well-rounded and perfectly bridges a unique gap. It balances what Nike wishes to achieve as a brand and what the audience finds interesting and engaging.

1. What is Nike doing to improve its digital marketing strategies for the next two years?

Nike has recently focused on improving its digital marketing strategies by investing in data analytics and personalization technologies to better understand and target its customers. The company has also increased its social media presence and launched innovative campaigns such as the Nike Run Club app and the Nike Training Club app to engage customers and promote its products.

2. What digital marketing strategies does Nike use?

Nike uses a variety of digital marketing strategies including social media marketing, email marketing, influencer marketing, content marketing, search engine optimization (SEO), and online advertising . They also invest in creating engaging and interactive websites and mobile apps to improve customer experience and drive sales. Nike’s digital marketing campaigns often focus on storytelling , inspiring and motivating their audience with powerful messages and relatable content.

3. What is Nike doing to stay ahead of the curve in digital marketing?

Nike is leveraging technology and innovation to stay ahead of the curve in digital marketing. They are investing in data analytics to better understand their customers and personalize their marketing messages. Additionally, Nike is exploring new technologies such as augmented reality and virtual reality to enhance the customer experience and create unique marketing campaigns.

Nike has been operating for decades and hence has built up quite a few strengths through years of innovation and testing.

One of Nike’s biggest strengths is the clarity it has in its brand image and value. This facilitates the creation of well-planned marketing strategies to produce beneficial results.

Nike has a very loyal customer base, high-profile celebrity endorsements that are not superficial but genuine, and its focus on sustainability are some of the factors that give Nike an edge over its competitors.

A versatile inventory and product category list, trained professionals and experts, low manufacturing cost, support from the black community, and a high market share value are some of the other factors that strengthen Nike’s brand image.

With strengths come weaknesses and Nike has its share of those. Debts and arrears which are yet to be paid, lack of labor regulations in foreign manufacturing units, market share of retailers, internal conflicts within the brand, dependence on the US consumer base, and lack of a diversified category are some of the weaknesses that Nike needs to overcome.

Nike has several brilliant opportunities to further expand and grow. Prioritizing the retail sector over wholesale, diversifying their product inventory, and embracing new and exciting technological advancements and tools in their product development and marketing are great ways to further drive their brand toward success.

Fun Fact: Learning about the latest marketing case studies , and strategies of brands will provide you with an edge over your competitors. And this edge is extremely beneficial in the long run.

Implementing innovative and creative marketing strategies also facilitates expansion and better revenue generation.

Nike also experiences severe competition from other similar brands. This dilutes the quality and flow of traffic to their site, thereby impacting sales and revenue.

Fake products and dupes divert leads and prevent conversions and sales. Budgeting issues, foreign exchange issues, and disputes over patents and authenticity drain energy and resources.

Overall, Nike has a well-rounded and cohesive marketing strategy that aims at inspiring consumers.

It has an engaging and interactive approach to its strategies and ensures a clear representation of its brand image in all its marketing endeavors.

Nike has grown tremendously over the last 5+ decades and will continue to do so.

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Written By Digital Scholar

Digital Scholar is a premier agency-styled digital marketing institute in India. Which offers an online digital marketing course and a free digital marketing course worldwide to elevate their digital skills and become industry experts. Digital Scholar is headed by Sorav Jain and co-founder Rishi Jain, who are pioneers in the field of digital marketing. Digital Scholar’s blogs touch upon numerous aspects of digital marketing and help you get intensive ideas of different domains of digital marketing.

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Just Do It Right: Analyzing Nike’s Timeless Marketing Strategies

Just Do It Right: Analyzing Nike’s Timeless Marketing Strategies 9 min read

In the dynamic realm of sports and fashion, there exists a legendary brand that has left an unparalleled mark on the world – Nike. With its iconic “Swoosh” logo, Nike has become an emblem of passion, determination, and unrivaled athletic performance. For decades, this sportswear giant has been at the forefront of innovation, crafting top-notch products that not only elevate athletes’ abilities but also empower individuals from all walks of life.

Nike’s journey began in 1964, founded by Bill Bowerman and Phil Knight as “ Blue Ribbon Sports. ” From its humble origins as a distributor of Japanese-made running shoes, the brand swiftly evolved, adopting the name “Nike” in 1971, inspired by the Greek goddess of victory. Since then, Nike has been conquering the sports industry with its revolutionary designs, setting new standards in performance, comfort, and style.

What sets Nike apart is not just its cutting-edge products but also its unparalleled marketing prowess. The brand’s powerful ad campaigns and emotional storytelling have stirred hearts, inspiring people to overcome challenges and pursue greatness. The famous “Just Do It” slogan, launched in 1988, has become a universal call to action, encouraging us all to push beyond our limits and achieve our dreams.

As a beacon of innovation, Nike continually raises the bar, introducing groundbreaking technologies like Air Max, Zoom, and Flyknit. The brand’s unwavering commitment to excellence has made it the go-to choice for professional athletes and fitness enthusiasts around the globe.

Beyond its athletic achievements, Nike has deeply immersed itself in social causes, championing diversity, inclusion, and environmental sustainability. By partnering with influential figures, sports stars, and community initiatives, Nike demonstrates a genuine commitment to making a positive impact on the world.

Today, with a massive global following of athletes, celebrities, and loyal fans, Nike’s influence extends far beyond the sports arena. It has become a cultural icon, shaping trends and setting the stage for the future of sportswear.

Table of Contents

Marketing Strategies of Nike

Nike has become synonymous with innovation, athleticism, and cutting-edge designs. Its unparalleled success is not just a result of producing quality products; rather, it’s the outcome of meticulous marketing strategies that have captured the hearts and minds of consumers worldwide. Let’s delve into the key marketing strategies that have propelled Nike to the forefront of the sportswear industry.

Branding and Logo

Nike’s iconic “Swoosh” logo is one of the most recognizable symbols globally. Designed by Carolyn Davidson in 1971, the Swoosh embodies motion and speed, aligning perfectly with the brand’s essence. Nike’s consistent use of the logo across all its products, marketing campaigns, and advertising has helped establish a strong brand identity, fostering trust and loyalty among consumers.

Since day one, Phil Knight knew he wanted Nike to stand for something bigger than just a mere shoe company, aiming to make his brand synonymous with the ideals of Greek goddess of victory – “Victory” or “Nike”. He found success with his dream when Nike adopted its name after the Roman variant term for her. It now serves not simply as the moniker for a sportswear conglomerate but also means triumph embodied in the emblem itself, a slender representation of wingtips set amidst a bold shield with a tick on top that is meant to convey quickness above anything else in life whether personal or professional aspirations.

A common way to abbreviate the word would be the use of ‘swoosh’ to represent any instance describing motion similar to birds gliding through air currents. If there is a time you associate with victory personified best by the speedy wings of an insect or avian friend instead think of Nike first.

Emphasis on Athlete Endorsements

Nike places a significant focus on collaborating with high-profile athletes, such as Cristiano Ronaldo, LeBron James, and Serena Williams, who act as global ambassadors for their products. These top-tier athletes work closely with the brand on various creative projects, advertising campaigns, and charitable initiatives, enhancing Nike’s visibility to the public. Furthermore, the endorsement partnerships extend beyond the realm of athletics into areas like music and fashion, with notable artists like Pharrell Williams also joining forces with Nike.

By aligning themselves with influential figures known for pushing boundaries and inspiring people worldwide, Nike aims to foster a shared vision of the future in sports and pop culture. This approach leaves a lasting impact through powerful imagery, showcased globally. Captivating visuals portray remarkable plays on courts, fields, and tracks, while renowned photographers like Brent Salcido and Todd Rosiak capture defining moments in athletes’ careers. Such photography encapsulates the magic of Nike’s moments, evoking a desire for their apparel and equipment.

Nike offers a comprehensive range of products, from head to toe, as well as specialized footwear and equipment designed for various activities. Each design reflects significant moments in sports, connecting fans to their favorite sports on deeper levels. With unwavering commitment, Nike proudly stands behind all their endeavors, crafting vibrant content that highlights the achievements of legendary athletes, witnessed by billions of fans across the globe.

In every ad campaign, commercial clip, photo session, or promotional effort, Nike showcases its dedication through a wide array of world-class athletes who collectively inspire generations worldwide.

Just Do It Campaign

“ Just Do It “ campaign remains one of Nike’s most memorable marketing efforts. The slogan, created by ad agency Wieden+Kennedy , goes beyond promoting products. Instead, it aims to inspire and empower individuals to embrace their inner champions, take risks, and pursue their dreams – all while wearing Nike gear. This message of empowerment has resonated deeply with consumers, forging an emotional connection between them and the brand.

Nike’s iconic “Just Do It” campaign has a rich history dating back to 1988, showcasing multiple versions featuring renowned athletes like Maria Sharapova, Dwyane Wade, Kevin Durant, and many others. Each iteration tells compelling stories that emphasize the strength of human determination, urging individuals to persevere despite challenges. Notably, one rendition stars Colin Kaepernick, who returned to football after a hiatus marked by kneeling during the national anthem to protest social inequality issues.

Every chapter of this campaign features famous figures embarking on new ventures, serving as a reminder to viewers that they, too, possess capabilities akin to their admired heroes. The slogan has continued to evolve annually, maintaining its relevance by staying in tune with societal pulse and addressing current events through fresh and courageous perspectives—all wrapped up succinctly within those four powerful words: Just Do It.

Emotional Advertising

Nike advertisements are renowned for their heavy emphasis on inspiration and emotions, setting them apart from numerous other brands. Rather than directly promoting their products, Nike delivers a compelling message through impactful storylines.

This mastery of storytelling has been a defining characteristic of Nike’s marketing for years. Each advertisement evokes deep emotions, creating a desire that can only be fulfilled through the experience of using Nike products.

Campaigns like “ Find your greatness ” and “ Dream Crazier “ exemplify Nike’s approach. They challenge self-limiting beliefs imposed by society and encourage individuals to overcome obstacles. While others might say, “Can’t do it,” Nike’s resounding response is, “Just do it.”

Emotional branding forms the foundation of Nike’s marketing strategy, cleverly employing storytelling to inspire people to conquer their fears and take action, all while embracing Nike products.

A prime illustration of this strategy is the 2017 commercial titled “ What are girls made of? “ released on YouTube. The ad features a young girl singing on stage, initially conforming to stereotypical notions of what girls are made of, such as flowers, marmalades, and gossip. However, she breaks free from these conventions, boldly asserting that girls are made of power, punches, battle, pain, and anything they aspire to be. This empowering narrative exemplifies Nike’s commitment to using storytelling to inspire and uplift its audience.

Digital Marketing and Social Media

Nike excels not only in delivering consistent messaging through commercials and campaigns but also stands out as an exceptional social media brand. Boasting an impressive following of over 302 million on Instagram and 9.8 million on Twitter, Nike has cultivated an engaged audience with a unified voice and active participation across various platforms.

One of Nike’s strengths on social media lies in leveraging user-generated content (UGC ). UGC refers to content created by consumers and brand followers to express their opinions or feelings about the products or the brand itself. Nike frequently shares user-generated content on their profiles as part of their campaigns.

For instance, their “ Better for it ” campaign, aimed at empowering women, encouraged them to share their health and fitness goals using the hashtag #betterforit . This campaign featured a blend of stories from female ambassadors and customers worldwide, which Nike proudly shared across their platforms. The overarching theme was to motivate women to embrace new challenges, face them with confidence, and prioritize their physical well-being.

Moreover, Nike actively participates in customer conversations on social media . They understand the importance of listening to their customers, and they do so with genuine sincerity through their social media profiles. Nike engages with customers who mention the brand on Twitter and actively initiates conversations with them.

This customer-centric approach is integral to Nike’s brand philosophy, as it helps them establish authentic connections with their consumers and gather valuable feedback. By actively listening to their audience on social media, Nike gains insights that inform the creation of targeted campaigns and products, shaped directly by the conversations they have with their customers.

Sponsorships and Event Marketing

Nike’s strong bond with top-level athletes and its participation in various Olympic Games have earned it a reputation as a beloved brand among sports fans. They have built deep connections with legends from major leagues like NBA, NFL, and MLS, becoming household names among loyal followers who eagerly anticipate thrilling matchups each week.

In addition to star players, Nike’s influence extends to coaches, many of whom are former or current star athletes themselves. They bring their professional experience and winning leadership styles to mentor future prodigies, creating a continuous cycle of success among Nike’s brand ambassadors for generations to come.

Nike’s expansion into soccer, especially in Europe, is noteworthy due to the sport’s immense popularity and large fanbases. This move complements their existing support for American basketball and soccer teams, allowing them to reach an even broader range of consumers with similar interests and values.

Moreover, Nike’s annual “ NBA All-Star “ game tradition showcases league stars competing against each other in specially designed uniforms, which are cleverly merchandised for fans to purchase nationwide. This unique blending of branded artistry and competitive spirit unites players from different cultures, highlighting the unifying nature of sports worldwide.

Nike’s unrivaled success in the sportswear industry can be attributed to its mastery of marketing strategies that go beyond product promotion. By leveraging emotional connections, powerful branding, and innovative storytelling, Nike has transformed itself into more than just a brand; it has become a cultural icon. Through the combination of athlete endorsements, impactful advertising, and a strong digital presence, Nike has secured its position as a global leader, inspiring athletes and non-athletes alike to “Just Do It” and embrace the spirit of excellence and achievement.

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The state of AI in early 2024: Gen AI adoption spikes and starts to generate value

If 2023 was the year the world discovered generative AI (gen AI) , 2024 is the year organizations truly began using—and deriving business value from—this new technology. In the latest McKinsey Global Survey on AI, 65 percent of respondents report that their organizations are regularly using gen AI, nearly double the percentage from our previous survey just ten months ago. Respondents’ expectations for gen AI’s impact remain as high as they were last year , with three-quarters predicting that gen AI will lead to significant or disruptive change in their industries in the years ahead.

About the authors

This article is a collaborative effort by Alex Singla , Alexander Sukharevsky , Lareina Yee , and Michael Chui , with Bryce Hall , representing views from QuantumBlack, AI by McKinsey, and McKinsey Digital.

Organizations are already seeing material benefits from gen AI use, reporting both cost decreases and revenue jumps in the business units deploying the technology. The survey also provides insights into the kinds of risks presented by gen AI—most notably, inaccuracy—as well as the emerging practices of top performers to mitigate those challenges and capture value.

AI adoption surges

Interest in generative AI has also brightened the spotlight on a broader set of AI capabilities. For the past six years, AI adoption by respondents’ organizations has hovered at about 50 percent. This year, the survey finds that adoption has jumped to 72 percent (Exhibit 1). And the interest is truly global in scope. Our 2023 survey found that AI adoption did not reach 66 percent in any region; however, this year more than two-thirds of respondents in nearly every region say their organizations are using AI. 1 Organizations based in Central and South America are the exception, with 58 percent of respondents working for organizations based in Central and South America reporting AI adoption. Looking by industry, the biggest increase in adoption can be found in professional services. 2 Includes respondents working for organizations focused on human resources, legal services, management consulting, market research, R&D, tax preparation, and training.

Also, responses suggest that companies are now using AI in more parts of the business. Half of respondents say their organizations have adopted AI in two or more business functions, up from less than a third of respondents in 2023 (Exhibit 2).

Gen AI adoption is most common in the functions where it can create the most value

Most respondents now report that their organizations—and they as individuals—are using gen AI. Sixty-five percent of respondents say their organizations are regularly using gen AI in at least one business function, up from one-third last year. The average organization using gen AI is doing so in two functions, most often in marketing and sales and in product and service development—two functions in which previous research determined that gen AI adoption could generate the most value 3 “ The economic potential of generative AI: The next productivity frontier ,” McKinsey, June 14, 2023. —as well as in IT (Exhibit 3). The biggest increase from 2023 is found in marketing and sales, where reported adoption has more than doubled. Yet across functions, only two use cases, both within marketing and sales, are reported by 15 percent or more of respondents.

Gen AI also is weaving its way into respondents’ personal lives. Compared with 2023, respondents are much more likely to be using gen AI at work and even more likely to be using gen AI both at work and in their personal lives (Exhibit 4). The survey finds upticks in gen AI use across all regions, with the largest increases in Asia–Pacific and Greater China. Respondents at the highest seniority levels, meanwhile, show larger jumps in the use of gen Al tools for work and outside of work compared with their midlevel-management peers. Looking at specific industries, respondents working in energy and materials and in professional services report the largest increase in gen AI use.

Investments in gen AI and analytical AI are beginning to create value

The latest survey also shows how different industries are budgeting for gen AI. Responses suggest that, in many industries, organizations are about equally as likely to be investing more than 5 percent of their digital budgets in gen AI as they are in nongenerative, analytical-AI solutions (Exhibit 5). Yet in most industries, larger shares of respondents report that their organizations spend more than 20 percent on analytical AI than on gen AI. Looking ahead, most respondents—67 percent—expect their organizations to invest more in AI over the next three years.

Where are those investments paying off? For the first time, our latest survey explored the value created by gen AI use by business function. The function in which the largest share of respondents report seeing cost decreases is human resources. Respondents most commonly report meaningful revenue increases (of more than 5 percent) in supply chain and inventory management (Exhibit 6). For analytical AI, respondents most often report seeing cost benefits in service operations—in line with what we found last year —as well as meaningful revenue increases from AI use in marketing and sales.

Inaccuracy: The most recognized and experienced risk of gen AI use

As businesses begin to see the benefits of gen AI, they’re also recognizing the diverse risks associated with the technology. These can range from data management risks such as data privacy, bias, or intellectual property (IP) infringement to model management risks, which tend to focus on inaccurate output or lack of explainability. A third big risk category is security and incorrect use.

Respondents to the latest survey are more likely than they were last year to say their organizations consider inaccuracy and IP infringement to be relevant to their use of gen AI, and about half continue to view cybersecurity as a risk (Exhibit 7).

Conversely, respondents are less likely than they were last year to say their organizations consider workforce and labor displacement to be relevant risks and are not increasing efforts to mitigate them.

In fact, inaccuracy— which can affect use cases across the gen AI value chain , ranging from customer journeys and summarization to coding and creative content—is the only risk that respondents are significantly more likely than last year to say their organizations are actively working to mitigate.

Some organizations have already experienced negative consequences from the use of gen AI, with 44 percent of respondents saying their organizations have experienced at least one consequence (Exhibit 8). Respondents most often report inaccuracy as a risk that has affected their organizations, followed by cybersecurity and explainability.

Our previous research has found that there are several elements of governance that can help in scaling gen AI use responsibly, yet few respondents report having these risk-related practices in place. 4 “ Implementing generative AI with speed and safety ,” McKinsey Quarterly , March 13, 2024. For example, just 18 percent say their organizations have an enterprise-wide council or board with the authority to make decisions involving responsible AI governance, and only one-third say gen AI risk awareness and risk mitigation controls are required skill sets for technical talent.

Bringing gen AI capabilities to bear

The latest survey also sought to understand how, and how quickly, organizations are deploying these new gen AI tools. We have found three archetypes for implementing gen AI solutions : takers use off-the-shelf, publicly available solutions; shapers customize those tools with proprietary data and systems; and makers develop their own foundation models from scratch. 5 “ Technology’s generational moment with generative AI: A CIO and CTO guide ,” McKinsey, July 11, 2023. Across most industries, the survey results suggest that organizations are finding off-the-shelf offerings applicable to their business needs—though many are pursuing opportunities to customize models or even develop their own (Exhibit 9). About half of reported gen AI uses within respondents’ business functions are utilizing off-the-shelf, publicly available models or tools, with little or no customization. Respondents in energy and materials, technology, and media and telecommunications are more likely to report significant customization or tuning of publicly available models or developing their own proprietary models to address specific business needs.

Respondents most often report that their organizations required one to four months from the start of a project to put gen AI into production, though the time it takes varies by business function (Exhibit 10). It also depends upon the approach for acquiring those capabilities. Not surprisingly, reported uses of highly customized or proprietary models are 1.5 times more likely than off-the-shelf, publicly available models to take five months or more to implement.

Gen AI high performers are excelling despite facing challenges

Gen AI is a new technology, and organizations are still early in the journey of pursuing its opportunities and scaling it across functions. So it’s little surprise that only a small subset of respondents (46 out of 876) report that a meaningful share of their organizations’ EBIT can be attributed to their deployment of gen AI. Still, these gen AI leaders are worth examining closely. These, after all, are the early movers, who already attribute more than 10 percent of their organizations’ EBIT to their use of gen AI. Forty-two percent of these high performers say more than 20 percent of their EBIT is attributable to their use of nongenerative, analytical AI, and they span industries and regions—though most are at organizations with less than $1 billion in annual revenue. The AI-related practices at these organizations can offer guidance to those looking to create value from gen AI adoption at their own organizations.

To start, gen AI high performers are using gen AI in more business functions—an average of three functions, while others average two. They, like other organizations, are most likely to use gen AI in marketing and sales and product or service development, but they’re much more likely than others to use gen AI solutions in risk, legal, and compliance; in strategy and corporate finance; and in supply chain and inventory management. They’re more than three times as likely as others to be using gen AI in activities ranging from processing of accounting documents and risk assessment to R&D testing and pricing and promotions. While, overall, about half of reported gen AI applications within business functions are utilizing publicly available models or tools, gen AI high performers are less likely to use those off-the-shelf options than to either implement significantly customized versions of those tools or to develop their own proprietary foundation models.

What else are these high performers doing differently? For one thing, they are paying more attention to gen-AI-related risks. Perhaps because they are further along on their journeys, they are more likely than others to say their organizations have experienced every negative consequence from gen AI we asked about, from cybersecurity and personal privacy to explainability and IP infringement. Given that, they are more likely than others to report that their organizations consider those risks, as well as regulatory compliance, environmental impacts, and political stability, to be relevant to their gen AI use, and they say they take steps to mitigate more risks than others do.

Gen AI high performers are also much more likely to say their organizations follow a set of risk-related best practices (Exhibit 11). For example, they are nearly twice as likely as others to involve the legal function and embed risk reviews early on in the development of gen AI solutions—that is, to “ shift left .” They’re also much more likely than others to employ a wide range of other best practices, from strategy-related practices to those related to scaling.

In addition to experiencing the risks of gen AI adoption, high performers have encountered other challenges that can serve as warnings to others (Exhibit 12). Seventy percent say they have experienced difficulties with data, including defining processes for data governance, developing the ability to quickly integrate data into AI models, and an insufficient amount of training data, highlighting the essential role that data play in capturing value. High performers are also more likely than others to report experiencing challenges with their operating models, such as implementing agile ways of working and effective sprint performance management.

About the research

The online survey was in the field from February 22 to March 5, 2024, and garnered responses from 1,363 participants representing the full range of regions, industries, company sizes, functional specialties, and tenures. Of those respondents, 981 said their organizations had adopted AI in at least one business function, and 878 said their organizations were regularly using gen AI in at least one function. To adjust for differences in response rates, the data are weighted by the contribution of each respondent’s nation to global GDP.

Alex Singla and Alexander Sukharevsky are global coleaders of QuantumBlack, AI by McKinsey, and senior partners in McKinsey’s Chicago and London offices, respectively; Lareina Yee is a senior partner in the Bay Area office, where Michael Chui , a McKinsey Global Institute partner, is a partner; and Bryce Hall is an associate partner in the Washington, DC, office.

They wish to thank Kaitlin Noe, Larry Kanter, Mallika Jhamb, and Shinjini Srivastava for their contributions to this work.

This article was edited by Heather Hanselman, a senior editor in McKinsey’s Atlanta office.

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