Nike Advertising

strategy

Introduction

Nike Inc. was founded in 1962 by Bill Bowerman and Phil

Knight as a partnership under the name, Blue Ribbon
Sports.
Today Nike Inc. not only manufactures and distributes
athletic shoes at every marketable price point to a global
market, but over 40% of their sales come from athletic
apparel, sports equipment, and subsidiary ventures.
Nike maintains traditional and non-traditional distribution
channels in more than 100 countries targeting its primary
market regions: United States, Europe, Asia Pacific, and the
Americas (not including the United States).
We utilize over 20,000 retailers, Nike factory stores, Nike
stores, NikeTowns, Cole Haan stores, and internet-based
Web sites to sell their sports and leisure products.
The
company
employed
about
62,600
people
worldwideand in 2015,Nike's global revenueamounted to
about 30.6 billion U.S. dollars.
2

Advertising Strategy

Nike Inc. was founded in 1962 by Bill Bowerman and Phil

Knight as a partnership under the name, Blue Ribbon
Sports.
Today Nike Inc. not only manufactures and distributes
athletic shoes at every marketable price point to a global
market, but over 40% of their sales come from athletic
apparel, sports equipment, and subsidiary ventures.
Nike maintains traditional and non-traditional distribution
channels in more than 100 countries targeting its primary
market regions: United States, Europe, Asia Pacific, and the
Americas (not including the United States).
We utilize over 20,000 retailers, Nike factory stores, Nike
stores, NikeTowns, Cole Haan stores, and internet-based
Web sites to sell their sports and leisure products.
The
company
employed
about
62,600
people
worldwideand in 2015,Nike's global revenueamounted to
about 30.6 billion U.S. dollars.
4

Stages of Advertising Strategy

Target Consumer
Product Concept
Communication Media
Advertising Message
Copy
Art Work and Layout
Advertising Budget
Methods of Advertising
Push Method
Pull Method

Nikes Just Do It Ad campaign

The inception.
Through its Just Do It campaign, Nike was able to tap into
the fitness craze of the 1980s.
The campaign was able to turn sweaty, pain-ridden, timeconsuming exercise in Nike sneakers into something sexy
and exciting.
It could be argued that the Just Do It campaign was not
only about sneakers but about Nikes own renaissance.
The ads made starting an exercise regime seem like a
necessity, and the way to start exercising was to buy Nike
merchandise.
The campaign was easily identifiable and stayed true to its
message.
Impact : Nike was able to increase its share of the domestic
sport-shoe business from 18 percent to 43 percent, from
$877 million in worldwide sales to $9.2 billion in the ten
6
years between 1988 and 1998. Nike spent $300
million on

Nike advertising

Nikes ads rarely focused on the product itself, but on the

person wearing the product while incorporating jokes,
explicit and implicit, to make their point.
Nike also endorses players in other sports such as formula
one racing, golf, cycling, and skateboarding. It sponsored
events too.

Signing of Michael Jordan in 1984

The ads were often humorous,

appealing to the cynic in all of us,
while imploring consumers to take
charge of their physical fitness.

Strategy in Indian market

Two fold approach:

Embracing International Endorsements.
Manipulating customized Indian Promotions.

Adidas and Reebokenjoyed a lion's share of the

Indianmarket.
Global budget was $5 billion (ranging from 11% to 15% of
sales annually) whereas the spending in India was
significantly lower.
Advertisements endorsed by international athletes were
highly represented football, basketball and golf etc., which
were the centre of attraction in Europe and America.
Reebok, on the otherhand Indianised its ad campaigns right
from thestart.
The year 2005 marked the launch of customized Nike
promotions for the Indian athlete.
Nike launched its Cricketing arm and introduced its first
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cricket shoes - AIR ZOOM YORKER.

Strategy in Indian market

Nike wrestled its rights to becomethe official kit sponsor for

the Indian cricket team for the next 5 years, beatingAdidas
and Reebok.
Theprivilege was earned by paying Rs.1.96 billion to the
Board of Control for Cricket in India.
The deal was a huge branding opportunity and sale of
licensed merchandise during 2005 earned $20million.
The same year Nike aired its first
Cricket Advertisement during the
World Champions Trophy cricket
tournament.
The BLEED BLUE campaign grabbed
the attention of millions of cricket
loving fans, and also reached
outstanding numbers using only the
power of social media, by being part
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of the conversations of the nation.

Nike-Advertising Strategy
EMOTIONAL BRANDING

Emotional branding is a type of marketing technique that uses

an appeal to a customers needs, aspirations, or emotional
state in order to build a particular brand.
Nike advertising uses the emotional branding technique of
Heroism to inspire incredible customer loyalty all over the
world.
Nike brand strategy takes the emotional marketing story of
the Hero and turns it inward. You are the hero, and your lazy
side is the villain.
These types of Nike commercials are meant to motivate
consumers to get up, to keep going, to continue pushing, and,
in short, JUST DO IT.

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Nike-Advertising Strategy
PARTICIPATORY MARKETING

Marketing based not on passive communication, but active

audience participation
Nike has collaborated with POPxo team in coming up with a
Nike+ Training Club challenge
A 12 week workout plan has been designed for the top
honchos of POPxo ranging from their Editor-in-Chief to their
Social Media Manager
The participants would be provided with Nikes apparel,
sportswear
Invites have been thrown open on Instagram for others to join
in
Such campaigns brings brands and users closer together
(HAWTHORNE EFFECT) and creates better customer focus
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Financial Overview
PARTICIPATORY MARKETING

Marketing based not on passive communication, but active

audience participation
Nike has collaborated with POPxo team in coming up with a
Nike+ Training Club challenge
A 12 week workout plan has been designed for the top
honchos of POPxo ranging from their Editor-in-Chief to their
Social Media Manager
The participants would be provided with Nikes apparel,
sportswear
Invites have been thrown open on Instagram for others to join
in
Such campaigns brings brands and users closer together
(HAWTHORNE EFFECT) and creates better customer focus
12

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Advertising expenditure

According to their own Fiscal Reports, Nike spent $3.031

billion on what they call Demand Creation.

Nikes a little fuzzy on what that means (marketing can be

anything from a TV ad to a collaboration with a niche shop).

That means that Nike spends about $8 million per day,

$350,000 per hour, $6000 per minute, $100 per second on
advertising.

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Endorsement expenditure

According to their own Fiscal Reports, Nike spent $3.031

billion on what they call Demand Creation.

Nikes a little fuzzy on what that means (marketing can be

anything from a TV ad to a collaboration with a niche shop).

That means that Nike spends about $8 million per day,

$350,000 per hour, $6000 per minute, $100 per second on
advertising.

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Proposed strategies
Nike could expand into wearable tech market introducing a
smart watch.
Enhance the reach of Converse by concentrating on designing
new products under the brand
Introducing programs where shoppers can design their own
shoes
Further penetration in Tier II and Tier III cities.
Sponsor regional sporting events for professional, amateur,
and collegiate teams.
Have exclusive online launches and feed on the e-commerce
boom.
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Diversify further into MP3 players (learning out of their

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