Nike’s marketing mix and the power of product
Nike is the world’s largest American multinational sportswear brand that specialises in sportswear for Men, women and children.
Smith,P (2022) data tells us Nike is the number 1 apparel brand with a value of $33.18 billion. Nike is forever innovating in all aspects of its business from design, development, manufacturing, worldwide marketing, apparel, equipment, accessories, and services.
Nike’s very first product were track running shoes made for athletes, however the offer has grown considerably to include apparel, accessories, technology and digital collectibles for sports activities such as football, basketball, track and field, combat sports, tennis, American football, athletics, golf, ice hockey, and cross training.
Customer needs
Nike’s product strategy is successful because it focuses heavily on customer needs. Sewell,P (2022) tells us that Nike wants its products to combine functionality and enhanced performance with the primary aim of improving a customer’s lives. Over the last 50 years, Nike has built itself into one of the most iconic global brands, continually developing their product offering.
Nike has a large worldwide customer base and still has potential for new customers despite competition with other sportswear brands.
In addition to this Nike has a large portfolio of other sports/ lifestyle sub brands, that specialise in different products. Media corporate Nike (ND) lists them as Nike Pro, Nike+, Nike Golf, Nike Blazers, Air Jordan, Air Max, Coal Han, Hurley Int. and Converse. Each brand offers something different targeting a wider demographic. This strategy gives Nike the opportunities to maximise worldwide reach with the ability for future growth.
Nike’s target market is broad, catering for a wide variety of ages, genders, incomes with a global reach. Statista(2022) data tells us that the target market for Nike shoes includes Millennials (24–39 year-olds) and Gen Z (9–24 year-olds).
Nike targets a global audience, using geographic segmentation for its marketing campaigns and product lines. This means it adapts its offer that may impact consumer behaviour like cultural differences or weather climates. For example, You wouldn’t find ski wear items in countries with more moderate temperatures.
From a functional running shoe, sports bag or high-end luxury collaboration or digital collectible, the Nike brand is always easily recognised and on point. Everyone knows who Nike are no matter where you are in the world. The simple branding is instantly recognised by its ‘Just do it’ tagline and ‘swoosh’ symbol.
Developments in technology
How Nike have evolved its product strategy over time
Nike’s business model is to continually develop their footwear, sportswear, apparel by partnering with the best and most authentic athletes in the business.
Nike’s product marketing mix includes a wide variety of product categories and brands and the latest innovations in technology.
Nike Waffle
Nike’s first shoe was created by track and field coach and co-founder of Nike, Bill Bowerman. The running track trainer was nicknamed the ‘Moon Shoe’ and was created in Bowerman’s waffle iron.
The grid like pattern created from the grooves on the waffle iron gave extra traction to the sole making it extra grippy, enhancing performance whilst playing sport.
(Strong, J 2021) Nike’s first product innovation grew to immediate success and sold for almost $450,000.
Nike focuses on the product in every aspect from the way it performs, to its look and feel, executing optimum quality. This gives customers confidence in Nike making it a trusted brand.
Nike Air Max
(Furness, J 2021) In 1978 Nike released its first trainer to feature air cushioning technology, which was called ‘The Air Tailwind’.
“Nike Air technology consists of pressurised air inside a tough yet flexible bag and provides more flexibility and spring without compromising structure. The Air-Sole units maintain their given form with elasticity, lower impact and keep the shoe snug and lightweight.” (Nike 2023a)
Nike has revolutionised the trainer experience for its athletes & consumers, continuously developing the air technology in innovative ways to enhance performance to the current day.
Flyknit
(Team FA 2016) In 2012, Flyknit was developed by Nike. Its aim was to create a high performance material that was hardwearing, whilst reducing waste at the same time. The fabric resulted in 60% less waste than a traditional pair of trainers (Jankowski, J 2016) offering its customers a more environmentally friendly option.
Nike evolved this new technology to stand amongst its best innovations. It put itself in the same conversation as the Nike waffle and the Nike air. (Jankowski, J 2016)
(Nike 2023b) tells us Nike is committed to offering footwear options and apparel that are eco-friendly. Nike’s also pledge to push towards a more sustainable future work, with low impact business practices to reduce their carbon footprint which means offering its customers a greener option.
Personalised customisation
(Nike 2023c) On Nike’s website buyers can personalise classic Nike footwear styles, offering its customers the opportunity to get creative and produce exclusive one off products. In selected flagship stores you can find a variety of other processes which include dyeing, printing, embroidery, and lasering to design bespoke pieces.
‘Customisation has been a big trend in fashion and other industries for some time now. Smaller sportswear brands may not be able to venture into this kind of trend, as it means high investment in the brand experience and a huge commitment to evolving their brand positioning.’ (top and digital)
The intersection of shoes and technology
In 2006, (Moore 2022) Nike introduced the Nike+ I pods sports kit, which measured the speed and distance of a walk or run. This was Nikes introduction into the tech industry.
They continued to develop this technology into a sports watch and by 2010 they had released a running app for the Iphone, this resulted in Nike building a community of six million users that set them apart from their competitors.
Virtual Reality
Nike is leading the way when it comes to brands designing digital 3D fashion for virtual reality: The Metaverse, Web3 and NFTs
An example is how they team up with Roblox gaming platform to create a virtual world called Nikeland.
Players are able to dress up their avatars in Nike-branded trainers and apparel. Users can check out the company’s latest product offerings virtually. Nike is using this technology to its advantage to test its merchandise without production costs whilst introducing the brand early to its youngest of demographics.
“If they know a bunch of kids are wearing it on Nikeland, then they will then come out with it in the physical world,” said Poser.” (Golden 2017)
Competitors
In recent years High-fashion collaborations mark a new chapter in rivalry between sportswear brands such as Nike and other well known competitors. For example, In May 2022, Nike announced its collaboration with Jacquemus, at the exact same time as Adidas announced its collaboration with Gucci.
The purpose of most brand collaborations is to engage and excite consumers with unique collections and limited-edition products.
Experts say that the logic behind these partnerships is about raising sports brands’ fashionability, while also easing the entry points into fashion for younger customers. (Britain, F 2022)
Conclusion
Statista (2022) data shows us that Nike is at the top of its game by continually innovating in its product development, evolving marketing tactics, with emotion-based messaging, and investing in inspiring role models with its sports sponsorships and celebrity endorsements.
Nike customers always come back to the brand because its product performs well and looks good, even when it’s marketed at a slightly higher price point than its competitors. A quality product creates customer loyalty that generates increased sales. When the consumer finds a product they trust in, which is reliable & makes them feel and look good they will return to make repeat purchases.
Nike appeals to a diverse range of people, including athletes, amateurs, non-athletes, and lifestyle enthusiasts from all walks of life. Through its consistent efforts to inspire its audience, innovate and diversify its sportswear offerings, the brand has achieved timeless appeal and currently stands as the most financially successful sportswear brand in the world.
Reference List
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Campaigns of the world (2017) Nike | Equality [online] Available at : Youtube.com https://www.youtube.com/watch?v=DWsUrMfDaG4&t=5s [Accessed 1.2.23]
Creative (2022)nike is named the world’s top sports brand again [online] Available at: https://creatitive.com/nike-is-named-the-worlds-top-sports-brand/#:~:text=Nike's%20Business%20Model&text=Many%20of%20the%20top%20sports,brands%20to%20be%20reckoned%20with. [assessed 14.2.2023]
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Nike (2022) How Air Is Reborn With In-House Recycling [photograph]
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Nike (2023) d Special Delivery: How One Box Cuts Packaging in Half [photograph] Available at : Nike.com https://www.nike.com/a/nikes-one-box-cuts-packaging-in-half [accessed 1.2.23]
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Strong,J (2021) The history of nike [online] available at: https://thesolesupplier.co.uk/news/the-history-of-nike/#:~:text=The%20first%20Nike%20shoe%20was,additional%20traction%20when%20playing%20sports. [assessed 14.2.23]
Team FA (2016) Learn all about the history of the flyknit [online] available at: https://www.footasylum.com/the-lowdown/lowdown-history-of-nike-flyknit/#:~:text=Introduced%20in%202012%2C%20Flyknit%20was,waste%20going%20to%20the%20landfills.[assessed 14.2.23]
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