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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.

Mark Parker
John Donahoe
direct to consumer
athletic apparel

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The case is set in January 2020 and the case protagonist is John Donahoe, Nike's new CEO. Nike is the largest company worldwide in the athletic footwear, apparel, and equipment business. The case…

Length: 16 page(s)
Publication Date: Oct 26, 2019
Discipline: Strategy
Product #: MH0060-PDF-ENG

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The case is set in January 2020 and the case protagonist is John Donahoe, Nike's new CEO. Nike is the largest company worldwide in the athletic footwear, apparel, and equipment business. The case focuses on the challenges Donahoe faces as he attempts to drive Nike to the goal of $50 billion in annual revenues by 2021. The case focuses on Nike's competition, the convergence of technology with apparel and footwear, as well as the company's corporate social responsibility issues. Donahoe has to address internal as well as external challenges. Donahoe was appointed CEO at a time when the Oregon sports and apparel company faces a number of controversies, including when Nike-sponsored athletes were caught up in scandals; the ban of Alberto Salazar, Nike's top running coach amid doping allegations; as well as continued concerns about Nike's workplace culture after an internal employee survey leaked describing the company as run by a boys club that is hostile towards women. Nike faces tough competition in all of its market, as well as along the value chain. Rapid advances in mobile technology and the development of the Internet of Things (IoT) could fundamentally change the industry. Nike is also moving further into ecommerce to offset the "Amazon effect." The fast-growing Chinese market, moreover, may provide an avenue for needed future growth.

Oct 26, 2019

Discipline:

McGraw-Hill Education

MH0060-PDF-ENG

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Nike’s approach to managing supplier responsibility has greatly evolved since the 1990s, when the media uncovered claims of child labor, underpaid workers, and poor working conditions in several Asian countries. This report explores how Nike’s approach to improving social and environmental conditions in its global supply chain has evolved through integrated management of sustainability and innovation, increased supplier incentives, and systems innovations intended to prevent problems before they arise.

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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.

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Nike Marketing Strategy: The Case Study (Just Do It)

Nike is a popular and leading shoe brand serving its customers for around more than 3 decades has an amazing story from the past. Here in this article, we will discuss the marketing strategy and a detailed case study of the popular shoe brand Nike.

Table of Contents

Nike Just do it: a hymn to daily challenges

More than forty years have passed since the first shoes with the famous mustache appeared on the market, but Nike’s success does not stop. The Oregon company continues to lead its competitors with annual sales of close to $30 billion and growth of 10% over the past five years. The brand is unstoppable, just as customers want it to be unstoppable by wearing their shoes during sports. ‘ Just do it: Nike’s motto has been the same for almost three decades, and it will remain so for a long time to come.

It perfectly represents not only Nike’s consumer community but also the company itself, simply and quickly. By the way, recently it turned out that this slogan was proposed by advertiser Dan Wieden , who was struck by the last words of a death row inmate in Utah. “Let’s do it,”

In a somewhat grotesque sense, the man had accepted his latest challenge. It was a short step from here to the famous ‘Just do it: The goal of Nike’s marketing strategy is, in fact, to make its products real allies in their consumers’ daily fitness struggles .

The principal was running and waffle

The way they came to market strongly and positively influenced Nike’s subsequent marketing strategy. The landmark, odd to say, was a waffle maker.

It all started when University of Oregon coach Bill Bowerman founded Blue Ribbon Sports with his athlete (Philip Knight). In addition to training some of the best American athletes and trading sneakers, Bill also developed an interest in running, a practice that was unpopular at the time.

He examines, he observes, he proposes: in 1966, together with a cardiologist, he publishes the book Jogging, which is today seen as the launch pad of the running craze that swept the United States in the 1970s.

The importance of creativity (and storytelling)

nike shoes case study - Mix With Marketing

Meanwhile, relations with Onitsuka, the manufacturer of the Tigers, begin to deteriorate: Bill is convinced that thanks to his running knowledge, he can do better and design and manufacture better, lighter running shoes. to guarantee athletes the highest performance. And at this point, in the early seventies, Blue Ribbon Sports changed its name to Nike ( referring to the mythological winged personification of victory ): The company, previously a simple sneaker distributor, has thus become a manufacturing company.

History tells us that the first soles designed by Bill were made through his wife’s waffle maker: Nike’s marketing strategy does not fail to evoke this humble yet brilliant origin at times. They didn’t eat waffles at Bill’s house anymore for several months, but that little sacrifice was definitely worth the candle.

Today, his company is actually worth $71 billion

$19.7 billion brand.

Nike Moon Shoes , the first product released under the umbrella of Nike , were developed from a handmade model printed with a waffle maker . Compared to current offerings, the simplicity of these shoes disarms: however, what will be the spirit of the company is already in this first running product, for which the famous ‘mustache’ was also created. we know today.

The creator of the symbol was a design student with a salary of $35 . It’s interesting and shocking to note that today this brand is worth $10.7 billion , and without it and under another name, the company’s value would drop from its current $71 billion to $52 billion . long on the value of a good designer in the birth of a business.

Nike’s marketing strategy before marketing

Nike running shoes hit the market at the very beginning of the running era, which Bill Bowerman’s book initiated and caused, at least in part. Was it a coincidence or was it the first bold move in Nike’s successful marketing strategy? Neither, or rather a bit of both.

What we need to understand is that Bowerman did not publish this book, among other things, to sell his product, which was conceived and brought to market only years later.

No: He wrote that brochure because he really wanted to promote running and its health benefits. Of course, this wasn’t a very witty snippet of Nike’s hypothetical, newborn, or even early marketing strategy, but it could have been, nonetheless, especially given the results it brought.

By Michael Jordan and the Beatles

However, from then on, each Nike marketing strategy was deliberately and rationally designed: as early as 1973, for example, the company signed its first sponsorship contract with a tennis star, Ilie Nastase . Since then, the faces of athletes that Nike has incorporated into its products are innumerable.

First of all, we all know Michael Jordan: In 1984 the most famous basketball player became the brand’s flagship man, sponsored by ‘ Air Jordan ‘, a line of apparel and footwear for basketball that he still bills to the company. with $2 billion every year.

Air Jordan’s first promotional release

Nike even managed to use a Beatles song for a television commercial on the occasion of the 1987 Air Max release to give more power to its marketing campaign : no one from Liverpool had ever managed to brag about a song by the band. commercial. The impact of this ad was enormous: imagine the Air Max line still being produced. To date, there are more than 40 models.

Focus on customers also through social media

Jordan, Ronaldo, Ibrahimovic, McIlroy: Over the years there have been many prestige faces to Nike’s marketing strategies, as mentioned, but the core message has never changed. Even better: from the seventies to the present, the brand’s voice and identity have remained true to themselves, always putting consumers’ needs before their products.

The aesthetics of communication have changed, and the media to convey their message to has multiplied, but the brand has never betrayed itself or its customers: take a look at the official Nike pages on the social network to understand this. The way the company interfaces with Facebook or Instagram shows that its presence on those platforms isn’t driven by new and shiny business goals: no, Nike is on Instagram because their customers are there too.

And communication on these pages is not limited to an aseptic commercia l offer, it is far from it: each post is designed and created to convey something of value to the user-consumer. So, in the spirit of the company, Nike’s social updates are mostly motivational messages for their athletes – yes, Nike’s philosophy is that anyone with a body can be an athlete too. That’s why the focus of corporate branding remains on helping clients do what they love to do best, whether it’s running, playing basketball, soccer, or tennis, anytime and in any situation.

Beyond shoes: technology to be closer to the consumer

Nike marketing strategy closer to consumer - Mix With Marketing

Athletes first, shoes second: this is the mantra of Nike’s marketing strategies , and it was this thinking that prompted the company to launch Nike, the first mass-produced high-tech product , in 2006. + iPod Sports Kit. It was a risky move designed to set the company firmly apart from its competitors: Once again, and more than ever in digital devices, the focus was on athletes rather than shoes. The kit allowed to measure the distance and speed of the race.

Oddly enough , yes, the product was Nike in every way, but everything was actually made by the iPod. Nike, on the other hand, was content to sell a chip to have ideas and put them in shoes, and a device for wireless connectivity.

In short, in this case, the partnership with Apple can be considered the best possible partnership. Over time, Nike+ devices have improved upgrade after upgrade, giving up first the iPod and then the chip: in 2010, everything was replaced by an iPhone ap p, and more than 6 million people are connected to a virtual community where they can analyze and share their sports. achievements.

In this way, as a complement, Nike had the opportunity to get closer to its customers, examine them closely, and communicate with them frequently. This technological lea p, which established a permanent relationship with the consumer, also made it possible to reduce advertising costs by 40% without compromising sales figures.

Nike’s goal

The final piece of Nike’s marketing strategy for a phased approach to the customer is the FuelBand bracelet , which calculates energy, and therefore – approximately – calories burned throughout the day. To make the data collected by the bracelet more reliable, Nike has created an online platform where customers can compare their energy consumption. Therefore, the athlete is in the center, the product is on the side, and the brand is always ready to motivate its consumers/athletes more.

This long-term strategy is explained above all by looking at the origins of the brand: it was born for running, not for team sports. That’s why Nike’s goal is the lone and even somewhat unruly runner who at times runs aggressively to overcome their physical and psychological limitations. The effectivenes s of this message was so effective that it persisted even as these lone athletes entered a community fueled by Nike through social media , which continues to differentiate the brand from its competitors.

Conclusion: selling shoes without selling shoes

That’s why the history of Nike’s marketing strategy teaches that in order to properly launch a product, it is necessary first and foremost to understan d what consumers need.

Once their desires are understood, a marketing campaign can be created through their products that can provide all possible solutions. For example, Nike realized that people needed a new way to stay fit, not shoes, so they offered to help them achieve this by selling shoes.

In addition, Nike’s marketing strategies teach that every consumer communication act of a company must create value, especially over the web: if you’re not solving problems, not providing real answers if you’re not helping your business. to improve the daily lives of viewers, then you inevitably have the wrong approach.

Marketing isn’t just about selling your product, or at least on the surface: Bill Bowerman didn’t start an empire by selling shoes, but by selling the art of running to customers who responded by purchasing billions of Nike Moon Shoes and by Air Max .

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Nike: Changing the Sneakers Game

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Case Study: Just Do It? Nike, Social Justice, and the Ethics of Branding

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BY HOLLAND J. SMITH & SCOTT R. STROUD

[ PDF Version ]

In September of 2018, Nike unveiled their 30 th anniversary â€œJust Do Itâ€ campaign, featuring prominent athletes such as Serena Williams, LeBron James, Lacey Baker, and Odell Beckham Jr. Also featured in the series is former San Francisco 49ers quarterback turned activist Colin Kaepernick, who has been a controversial figure since early August of 2016 when he protested racial injustice in America by sitting and later kneeling during the national anthem at the start of football games. Kaepernickâ€™s Nike advertisement, which he posted to social media sites on September 3, 2018, displays a close-up image of his face with the words â€œBelieve in something. Even if it means sacrificing everythingâ€ written across the image. Some have praised the advertisement as taking a stand in the nationwide debate over the state of minority rights while others have been concerned with Nikeâ€™s movement into the arena of political advocacy.

Gino Fisanotti, Nikeâ€™s vice president of brand marketing for North America, defended the companyâ€™s featuring of Kaepernick, who has not played in the NFL since the 2016 season when he refused a contract with the 49ers: â€œWe believe Colin is one of the most inspirational athletes of this generation, who has leveraged the power of sport to help move the world forward.â€ Additionally, many high-profile athletes and celebrities have voiced their support for Nike and Kaepernick, including LeBron James and Serena Williams, both outspoken figures about social justice in their own right. â€œHeâ€™s done a lot for the African American community, and its cost him a lot. Itâ€™s sad,â€ Williams said of Kaepernick. â€œHaving a huge company back him,â€ she continued, â€œcould be a controversial reason for this company, but theyâ€™re not afraid. I feel like that was a really powerful statement to a lot of other companies.â€

Other observers see Nikeâ€™s move from the commercial to the political as potentially concerning. Michael Serazio worries that this is just another sophisticated trick from a corporate powerhouse: â€œGetting us to think weâ€™re making a statement by buying Nike is the long con advertising has played, and it has played it well.â€ Increasingly, brands are giving in to a recent demand for politicization, forcing consumers to question the political participation of various corporations. Some argue that Nike is using a popular movement to increase its own sales, and taking advantage of the prestige and celebrity status of its minority athletes while doing so. Another worry is that it distracts attention from how Nike products are made, often by workers in difficult working conditions in developing countries. As Serazio puts it, the new campaign risks diverting our focus from â€œthe marginalized who make stuff rather than the posturing it affords those privileged enough to own it.â€

The advertisement campaign is a risky move for Nike, who might garner heightened attention to its products and brand, but who also runs the risk of alienating part of its consumer base by becoming too politicized. Swaths of the football-watching public, and public at large, are divided by the anthem protests carried on by Kaepernick and others. By featuring the originator of this series of protests, many fans might view Nike as standing with black athletes and their concerns. Yet others may view the advertisement as an attempt to profit off of a protest that strikes at the heart of patriotic values that some hold dear. Some owners of Nike products even illustrated their disgust with the campaign by burning their shoes, and then subsequently posting the flaming images on social media. So far, however, Nike has not sacrificed anything due to the gamble that this advertising campaign represents: Nike stock is up 5% since the advertisement hit the public, representing $6 billion increase in Nikeâ€™s market value.

Nikeâ€™s campaign was meant to garner attention and make a statement on its 30 th anniversary. It succeeded at accomplishing these goals. But many are still wondering: was Nike primarily interested in taking a courageous stand on an important political issue of our time, or were they simply using Kaepernick as a clever ploy to sell more shoes?

Discussion Questions

Should a company like Nike get involved in matters of political controversy and social justice?
Is Nike misusing Kaepernick and the NFL protests in its recent campaign? If you judge this to be the case, what other ways could Nike do if they wanted to bring attention to these issues and protests?
Do you think that these advertisements will hurt Nikeâ€™s brand or bottom line? Do you think this is an important ethical consideration for Nike?
Should companies take stands on controversial debates orbiting around justice and the public good in their advertisement campaigns? Why or why not?Nike clearly has the abilityâ€”and rightâ€”to take a stand on this issue. What should the virtuous consumer do in reacting to Nikeâ€™s campaign? What about if they disagree with Nikeâ€™s stance?

Further Information

Anderson, Mae. â€œGood for business? Nike gets political with Kaepernick ad.â€ September 4, 2018. Available at: https://www.apnews.com/6aaced14b24d4622aefeb44d3b17c2d6

Belvedere, Matthew J. â€œSorkin: Nikeâ€™s Kaepernick ad decision was based on â€˜attracting big name athletesâ€™ who side with his cause.â€ September 7, 2018. Available at: https://www.cnbc.com/2018/09/07/sorkin-nike-kaepernick-ad-based-on-attracting-big-name-athletes.html

Boren, Cindy. â€œAs Trump tweets, Colin Kaepernick shares new Nike ad that reportedly will air during NFL opener.â€ Washington Post. September 5, 2018. Available at: https://www.washingtonpost.com/news/early-lead/wp/2018/09/05/trump-says-nike-is-getting-absolutely-killed-over-colin-kaepernick-ad-renews-attack-on-nfl-players/?utm_term=.59e131677236

Reints, Renae. â€œColin Kaepernick Pushes Nikeâ€™s Market Value Up $6 Billion, to an All-Time High.â€ Fortune. September 23, 2018. Available at: http://fortune.com/2018/09/23/nike-market-value-colin-kaepernick-ad/

Rovell, Darren. â€œColin Kaepernick part of Nikeâ€™s 30th anniversary of â€˜Just Do Itâ€™ campaign.â€ ESPN . September 3, 2018. Available at: http://www.espn.com/nfl/story/_/id/24568359/colin-kaepernick-face-nike-just-do-30th-anniversary-campaign

Serazio, Michael. â€œNike isnâ€™t trying to be â€˜woke.â€™ Itâ€™s trying to sell shoes.â€ Washington Post. September 5, 2018. Available at: https://www.washingtonpost.com/outlook/2018/09/05/nike-isnt-trying-be-woke-its-trying-sell-shoes/?noredirect=on&utm_term=.945885f31a0a

Holland J. Smith is a research intern for the Media Ethics Initiative at the University of Texas at Austin. Scott R. Stroud is the Program Director for Media Ethics at the Center for Media Engagement, University of Texas at Austin. As the director of the Media Ethics Initiative, he supervises the creation of pedagogical materials and the sponsoring of events related to media ethics. Stroud is also the editor of Media Ethics.

More case studies and media ethics resources can be found at www.mediaethicsinitiative.org . Case studies produced by the Media Ethics Initiative remain the intellectual property of the Media Ethics Initiative and the University of Texas at Austin. They can be used in unmodified PDF form in classroom settings. For use in publications such as textbooks and other works, please contact the Media Ethics Initiative.

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Please note you do not have access to teaching notes, co‐creating value through customers' experiences: the nike case.

Strategy & Leadership

ISSN : 1087-8572

Article publication date: 5 September 2008

This case aims to demonstrate how leading firms are learning how to sustain competitive advantage by co‐creating experiences of value with customers.

Design/methodology/approach

The shoe company Nike provides a glimpse of the next “best practices” of value co‐creation with customers. By engaging with informed, connected, and networked customers around the globe, Nike has found their shared experiences to be a new source of value.

The paper finds that customers are now informed, connected, networked, and empowered on a scale as never before, thanks to search engines, engagement platforms, the growth of internet‐based interest groups, and widespread high‐bandwidth communication and social interaction technologies. Customers have learned how to use these new tools to make their opinions and ideas heard.

Practical implications

A few leading companies like Nike are involving customers in the value creation process by offering Internet sites where they can share their interactions and experiences. These range from customers' ideas about how to improve or customize products to their feelings when they use products.). For Nike, the learning from these interactions creates new strategic capital. The company can now learn directly from customers' direct input on their preferences. Nike can build relationships and trust with the Nike+ community and experiment with new offerings, all the while enhancing its brand.

Originality/value

The strategic opportunity for Nike is to build and promote the use of Internet engagement platforms through which the firm can build customer relationships on a scale and scope as never before. Effectively managing these new initiatives initially posed a new challenge for Nike, a traditionally product‐centric organization. Now their viewpoint is reversed. “In the past the product was the end point of the consumer experience. Now it is the starting point.”

Value added
Customer information
Social interaction
Consumer marketing
Customization

Ramaswamy, V. (2008), "Co‐creating value through customers' experiences: the Nike case", Strategy & Leadership , Vol. 36 No. 5, pp. 9-14. https://doi.org/10.1108/10878570810902068

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Case Study: Nike & Colin Kaepernick “Just Do It” Campaign

Case Study: Nike’s 30th Anniversary “Just Do It Campaign” With Colin Kaepernick

Brian Urvater and Courtney Vandegrift

Comm 473: PR Campaigns

Professor Renea Nichols

September 28, 2021

When Nike released the 30th anniversary “Just Do It” campaign, Nike’s brand leadership team members were taking a calculated risk. They knew full well how Kaepernick’s high profile protest might rub some of its consumer base the wrong way, yet they moved forward with it anyway In 2018, Nike launched a new ad campaign that was based on a strong political conflict capable of tearing apart the United States. The nation was polarized as a result of increased racism, police brutality, and social injustice. In the midst of an era labeled as the Black Lives Matter movement, where african americans felt oppressed and helpless due to the violent attacks against black communities across the country, Nike drew a great deal of attention with their new campaign strategy that showed support for black communities, athletes, and civil liberties proponents. The ad featured professional football player and civil rights activist Colin Kaepernick, best known for taking a knee during an NFL game’s national anthem to protest social injustice and police brutality. The advertisement image began with a quote that stated “Believe in something. Even if it means sacrificing everything.” Since Nike is a sports gear and apparel company, their products fit well into this campaign strategy because it highlights a celebrity athlete that is known worldwide. Their main objectives were to bring headline attention to the campaign by highlighting athletes that were pushing boundaries in society in some way.

This case study’s purpose is to research the public relations methods used in the 30th anniversary of the “Just Do It” Nike social media campaign featuring prominent NFL figure Colin Kaepernick. With input from former NFL player and founder of Go Big Recruiting Ross Tucker, this paper reflects the communications strategies used by Nike’s PR department to send a specific message to their target audience and influence their perception and brand loyalty. By taking a stand for a controversial social figure during a time of political disarray, Nike took a risk to convey their brand as a platform that brings attention to important social and political matters. Since the launch of the campaign in 2018, Nike has continued to represent themselves as an organization that supports local communities and athletes. By bringing more thought to important social issues such as systemic racism and police brutality, their objective is to use sports as a platform to accelerate social movements and reflect their brand as an organization in favor of activism and reform. Their message to consumers is strong and impactful, showing consumers that it is more than just sports, but also about making the world a better place by giving athletes a platform to discuss social problems and encouraging young athletes to take a stand for their own values and beliefs.

Communication Plan

Situation Analysis:

Nike is a retail organization that provides high quality athletic products that are used by professional sports organizations and aspiring athletes around the world. The light weight material of their clothing and the superiority of their sports products have made Nike the most prominent sports brand in the world. The company has partnerships with several professional leagues including NCAA, NBA, MLB, and NFL. In terms of distributing products, Nike has over 1,000 factories and over a million employees, which makes for a fast, efficient distribution process that translates to major financial success. The company brands itself well with a globally recognizable swoosh logo and a short, confident slogan known as “Just Do It,” which represents their mission to inspire athletes to pursue their wildest hopes and dreams. Nike not only uses famous athletes to endorse their products and engage with their sports-devoted audience, but the organization also pays close attention to social trends and issues that are impacting the United States. By using social responsibility to advance their agenda, the organization increases their popularity and widespread attention, and ultimately influences brand loyalty among consumers. Additionally, the use of controversial social justice campaigns has proven to be beneficial to Nike’s reputation of goodwill because it can lead to national headlines and widespread media attention that helps guide public opinion in the area of social awareness.

The organization depends on the United States market for revenue more than any other country. 40% of Nike’s revenue comes from North America, which leaves the company exposed to factors that can negatively impact the business. It presents a high risk when a company focuses on a single market because public relations and marketing campaigns can backfire if that specific market does not agree with the ideas presented by the organization’s campaign. Accordingly, this specific case study reviews a high risk social media tactic during a time of social dispute in the United States. With Nike’s growing competition, it is important for them to discover new strategies of engaging the public and grabbing the attention of their audience in which they simultaneously represent the values and beliefs of their brand.

In 2016, world renown San Francisco 49ers quarterback Colin Kaepernick took a stand against social injustice and police brutality by kneeling during the national anthem before a nationally televised game. This act led to public backlash from angry consumers over the idea that a high profile figure disrespected the U.S. flag in front of thousands of people. However, this performance of social activism came at a time of mass hysteria during BLM movements, where the nation was polarized due to increased rates of police cruelty and inequity among black communities. Young black athletes around the country were determined to fight for their civil rights and protect their liberties. In their pursuit to support athletes and black communities, Nike supported social justice activism by launching a social media campaign that focused on the controversial behavior of the NFL star. The organization’s goal was to convey the bigger picture of sports by incorporating the concept that athletics can be used as a platform to bring attention to important social and political issues. At the same time, Nike hoped to encourage consumers to follow their largest dreams and stand up for what they believe in. This multifaceted technique was a unique way of expressing the organization’s core standards and values. In a time of social dispute, Nike aimed to gain massive media attention through the campaign by developing a high risk social media strategy that would get people talking about sports and its relationship to real world issues.

Following his idea to kneel during the national anthem, an outbreak of disapproval for Colin Kaepernick surged throughout the nation. A poll during the 2016 season named Kaepernick the most disliked player in the league, with 37% of caucasians saying they “disliked him a lot,” and 42% of African Americans saying they “liked him a lot.” However, according to survey research conducted by YouGov to determine how Nike customers feel about Colin Kaepernick, 46% of responses revealed a positive outlook on the NFL star while 23% see him in a negative light. This reveals that a majority of Nike customers support social activism and the push for reform in the area of racial inequality and police cruelty. Therefore, by creating a social media campaign around Colin Kaepernick and social activism, Nike hoped to strategically reach their target audience and influence public opinion about their brand. However, other research states that 53% of Americans object to the idea of kneeling during the national anthem because they consider it to be disrespectful to the flag and the country as a whole. There was a high risk in launching a marketing campaign that was created from these statistics, but Nike is a company that thrives on taking risks with the public because they want their organization to be unique and stand out among others.

According to the Washington Post, the decision to use Colin Kaepernick as the main figure in their ad campaign was popular among young Americans. Cindy Boren from the Washington Post stated that “a Quinnipiac University poll showed voters approved of Nike’s decision to feature Kaepernick in its latest ad campaign, 49 percent to 37 percent.” The poll also determined that there was a large age gap among people who agreed and disagreed, “with those 18 to 34 approving of Nike’s decision by a 67-21 margin, while voters 65 and older disapproved of the decision, 46 to 39 percent.” Overall, the 30th anniversary of the “Just Do It” campaign was creative in the sense that it took a controversial social issue and turned it into something positive and innovative, in hopes that it would be beneficial to social movements, activist athletes, and eventually would influence product sales.

On the political side of the research that went into this campaign, there was a strong disconnect between opinions of whether kneeling during the national anthem was considered to be morally acceptable. According to a NY Post article, in a poll of 1,570 Americans, “Democrats strongly favored the right to protest, at 77%. Only 20% of Republicans, and 20% of self-described Trump voters, said yes. Along racial lines, 77% of blacks, 57% of Hispanics and 47% of whites answered positively.”

Nike also collected data about the overall reactions of consumers to brand’s voices about social issues and controversial topics. In a poll conducted by Sprout Social, 1,000 American consumers were asked if “people want brands to take stands on important issues.” 66% of consumers responded that “it is important for brands to take public stands on social and political issues.” This information was important to Nike’s decision to launch this campaign because it conveys what consumers are looking for in a brand. Many consumers, especially younger people, look for brands that they can personally connect with from an ethical standpoint. Furthermore, a 2017 survey from Edelman found that “the majority of millennials (60%) are belief-driven buyers” that trust a company based on the company’s brand identity and social/political beliefs. 53% of Millennials pay attention to how companies that they purchase goods and services from act with political and social matters. Moreover, 80% of teens, which is a huge target audience for Nike, support the Black Lives Matter movement. Looking at this research from an economic standpoint, younger generations are crucial for Nike to engage with through tactics such as these. According to a Forbes article by Jules Schroeder, “Millennials have $200 billion in buying power and Gen Z has $143 billion in direct buying power”, which is an area Nike wanted to take full advantage of with this campaign strategy. Nike’s decision to take a public stand on a social issue and promote Kaepernick in order to gather more attention and connect with their audience on a deeper level was a thoroughly researched public relations strategy.

Nike aimed to create a strategic communications plan that highlighted social and political issues that were impacting athletes and communities around the country. More specifically, the campaign intended to support the revolution against social injustice in black communities due to implications of racism through police brutality and racial profiling. In order to accurately display their support for social movements occurring throughout the U.S., Nike centered their campaign strategy around Colin Kaepernick, whose decision to kneel during the national anthem to protest against racism and social injustice conveyed his will to sacrifice his career for the greater good. However, his actions on the field also sparked mass amounts of controversy throughout the country.

One objective for this strategy was to raise awareness about an important issue. Nike describes themselves as an organization committed to addressing systematic racism and supporting local communities. They thrive on showing their support for social movements and using their platform to address underlying societal issues. By combining the sports world with the need to raise awareness about important topics, the campaign strategy targets a wide array of people. Not only did Nike desire to catch the eye of black communities, athletes, and sports fans by promoting a controversial social problem through a large, sport-based platform, but the organization also aimed to target millennials and Gen Z-ers in hopes of positive responses in a harsh political climate. Additionally, Nike planned to gain widespread media attention that would advertise the goodwill of the brand and appeal to younger, more prosocial generations. Additionally, the attention gathered from the campaign would boost brand loyalty and social media engagement. Although it involved high risk, the 30th anniversary of the “Just Do It” campaign was something that yielded extreme success.

Another objective included exemplifying the organization’s mission statement. As expressed by the founder of Kaye Media Partners Karen Mcfarlane, “Nike’s mission is to bring inspiration and innovation to every athlete in the world. Colin Kaepernick, through his advocacy, conviction, and talent on and off the field, exemplifies those values in the strongest of terms.” By launching a strategy that uses a prominent athlete who is known for social activism in the campaign, it will raise awareness for the issue and positively impact the social credibility of Nike. Additionally, by utilizing a notable person who gained national attention for sparking a controversial issue, Nike aimed to earn massive media attention that would engage their audience in order to promote the ethics and goodwill of the brand. This strategy brings attention to social concerns and connects the activism for these issues to Nike’s brand. Furthermore, this campaign tactic gives athletes a platform to speak out about their views on social issues, thereby impacting a large target audience of sports fans, young athletes, social activists, and black communities. Through this campaign strategy, Nike conveys that their organization stands by its athletes through political chaos and controversy, which sends a clear message about the brand’s identity to the target audience about what kind of company Nike intends to be known as. This communications plan proves that the company is principled and loyal to its publics, and is willing to fight for social justice despite the risks involved.

Execution:

To execute this plan, Nike made the decision to partner with notable NFL quarterback Colin Kaepernick. The campaign, launched in Fall 2018, includes a close up image of Kaepernick with the quote, “Believe in something. Even if it means sacrificing everything,” across the picture. The famous Nike swoosh logo and slogan is printed on the bottom. This poster was distributed through social media platforms and on billboards. The campaign was first announced through Kaepernick’s social media accounts, which increased the amount of initial views and shares. In addition to social media shares, the image was also printed on billboards in prominent locations such as Times Square.

The poster is paired with a full advertisement called “Nike Dream Crazy” that features young and experienced athletes and encourages viewers to follow their dreams despite any roadblocks that may hinder their success. The narrator of the commercial says, “because calling a dream crazy is not an insult, it’s a compliment.” Not only does the ad stimulate viewers to push for their biggest goals, but it also addresses the idea that it’s bigger than sports; it’s about making a difference in society and the world. The ad expresses this message by featuring pro athletes such as Lebron James and Colin Kaepernick. A video of all star NBA player Lebron James speaking out at a rally is accompanied by the narrator saying “don’t become the best basketball player on the planet, be bigger than basketball.” This message encourages the audience to take a stand against social issues just as Lebron James and Colin Kaepernick have.

The audience is able to see Nike as a company that protects social equity and works for the benefit of communities. The commercial tries to spread the message that sports are not just for entertainment, but they are a platform for spreading valuable messages and ideas that can positively impact society. Another theme is also presented in the commercial that reinforces the idea that people should work for their dreams no matter what barriers they have to break through. This message is presented with the stories of athletes like Shaquem Griffin, who plays in the NFL with only one hand, and Serena Williams, who grew up in Compton and later became one of the most talented athletes in the world. Overall, the creative aspect of this campaign sends two messages to publics: It’s bigger than sports, and anything is possible if you put your mind to it. As per PR and customer service expert Anna Cachares and digital marketing specialist Beth Kramer, “Nike released the Nike Dream Crazy ad featuring Kaepernick on YouTube, which has over 2.6 million views. It is worth noting that Nike launched these ads on social media, not on traditional channels, which suggests that they are targeting younger generations (Millennials and Gen Z).”

In addition to the graphic and advertisement that Nike launched in the fall of 2018, Nike also began selling merchandise that symbolizes Kaepernick’s impact. For the four year anniversary of Kaepernick taking a knee during the national anthem, Nike created an all black jersey with the number 7. The number 7 is representative of Kaepernick’s jersey when he took a knee playing for the San Francisco 49ers. “Through his continuous commitment, the number 7 jersey has become an iconic symbol for progress and positive change” (Nike). This jersey sold out on the Nike website. “True to each other.  True to the movement.  True to 7,” (Nike). Selling merchandise that goes along with the social activism campaign also adds to the execution of the overall strategy because it further emphasizes the brand’s dedication to their cause. Nike is able to make extra profit off the campaign’s theme by selling custom jerseys that symbolize working towards progressive social movements and change.

Analysis and Evaluation:

This case study introduces the idea that Nike’s PR department is willing to abide by a “high risk, high reward” policy. The fact that research showed a split between public opinion of the Colin Kaepernick crisis in relation to the Black Lives Matter movement conveys that Nike is a brand focused on supporting high profile figures that are willing to push for social reform. In Nike’s “Black Community Commitment” page on their website, they reference that addressing systematic racism and encouraging action and reform is a top priority of the company. The brand identity Nike creates through supporting a controversial figure’s social advocacy is a great method of engaging their younger audience. Nike uses sports as a way to bring people together in unifying fashion to bring attention to important social issues and

spark change. Their use of innovative social media strategies not only increases their reputation of being a brand of goodwill and ethics, but it also grabs massive amounts of attention from media and consumers. By using Colin Kaepernick as a main figure to promote social activism in the area of racism and police brutality, the organization was able to make national headlines and promote their brand as an inspiring, community-driven company that is focused on using sports to make a change in the world. Former NFL player and entrepreneur Ross Tucker agrees that it is a lot more common in recent years for athletes to have a cause and stand up for issues that are important to them, and brands are beginning to take advantage of this factor because large audiences are likely to be “receptive and supportive to that.” A large company like Nike is able to take risks with controversial issues to gain media attention because they have a wide array of publics. However, In Tucker’s case, he tends to stay neutral with political statements because he does not want to “turn off” one side of his audience as a result of conflicting viewpoints. With their big

following, Nike has developed a strategy of using risky PR tactics to promote the goodwill of their brand, which is something that other smaller companies are unable to do in today’s political climate.

The poster image was successful in generating attention and presence on social media, and the video ad was successful in spreading important messages and influencing public opinion. According to Scharninghausen in the business wire press release, the single best thing about the ad as per 48% of viewers was the theme and message. In the first 24 hours of the campaign’s launch, Nike brought in $43 million worth of earned media, and their brand mentions increased 135% with over 2 million mentions (Cachares & Kramer). In addition, “Advertisin g analytics company Ace Metrix says that the Nike Kaepernick ad is “less polarizing than social media suggests.” Just 13% of consumers reported that they were less likely to buy from Nike after viewing the Dream Crazy Kaepernick ad. This dropped to 10% among Millennials and 6% to Gen Z.”

Overall, the 30th anniversary of the “Just Do It” campaign was created because it took a controversial social issue and turned it into something positive and innovative, in hopes that it would be beneficial to social movements, activist athletes, and eventually would influence product sales. In this case study, Nike proved that by supporting communities and athletes affected by social issues in the United States through unique social media marketing campaigns, and by tactically using prominent figures, target audiences can be successfully reached, ultimately having a positive impact on a brand’s social and economic success.

Current Information: ( https://about.nike.com/ )

The number 7 jersey being sold on the Nike website symbolizes the progress Kaepernick has contributed to the Black and Brown communities. This all black jersey is created and sold for the anniversary of Kaepernick’s impact. The corporate website offers insight into Nike’s mission and goals. “Our mission is what drives us to do everything possible to expand human potential. We do that by creating groundbreaking sport innovations, by making our products more sustainable, by building a creative and diverse global team and by making a positive impact in communities where we live and work.” This current information ties into the case study topic because it provides information about Nike’s determination to make a difference in society by positively impacting communities in times of social despair. On the corporate website, there are four subcategories that describe the values of Nike as an organization, which ultimately support the campaign strategy for the 30th anniversary of the “Just Do It” slogan. The first category is “innovation,” where the company states that “to make big leaps, we take big risks,” which is true to the Coin Kaepernick issue because Nike supported an individual who was extremely controversial at the time for his activism for social justice. Next, the website refers to the team at Nike, where they describe their team of workers as “empowered, diverse, and inclusive,” ultimately representing the brand as a team that is united by sports. This is a feature that was represented in the Colin Kaepernick advertisement and currently persists as a main theme of Nike to encourage diversity and harmony despite cultural or racial backgrounds. Additionally, the website offers a look into “social and community impact,” where the company describes their belief that the power of sports can help change the world for the better. This concept was expressed with emphasis in the Kaepernick campaign, and is still a main theme of the organization that they continue to work towards today. Finally, Nike references “sustainable business innovation” on the corporate website to highlight a “sustainable future” in sports where athletes are able to thrive on a healthy, fair playing field and simultaneously use the power of team sport to improve social issues and positively impact the world.

Current Impact:

Nike’s legacy from the 30th anniversary of the “Just Do It” campaign continues to live on and have an impact on society today. In a 2019 New York Times article titled “Colin Kaepernick ‘Dream Crazy’ Ad Wins Nike an Emmy,” Nike’s ad campaign conveys its creative nature as the advertisement was awarded an E mmy for being an outstanding and creative commercial. The idea of including a social aspect that relates to sports not only attracts young viewers and sports fans to the brand, but it also engages an audience of politically interested publics. People interested in politics and social activism now see Colin Kaepernick as the face of the NFL for his actions on the field, and they are more impacted by Nike for their brand values and support of a controversial athletic figure (Junge Welt, 2021).

The organization continues to support athletes that stand up for social movements and systematic racism, leading to a return of support from activist athletes. According to a 2021 Huffpost article, “longtime Collingwood sponsor Emirates condemned racism and said it was behind the club “proactively adopting changes as per the recommendations identified in their report.” In a statement.” As a result of media success with Colin Kaepernick and the will to work towards a better future for the world, Nike continues to use the same PR strategy to promote their brand and connect with their target audience that supports defending social movements. Nike expressed that the company st ood “against racism and discrimination in any form,” and that it believed “in the power of sport to create an equal playing field for all”. Current articles illustrate the idea that Nike’s media success in a harsh political climate during their 2018 campaign suggests that the same social media tactics can be effective in encouraging brand loyalty among consumers: “Since Nike is known for large-scale advocacy campaigns to drive social change through sport, most notably with US footballer Colin Kaepernick, one expert said the brand could see its partnership with Collingwood as an opportunity rather than a PR nightmare (Williams, 2021).” Their new campaign with Collingwood will accomplish the same goals because it has potential for controversy while also articulating the company’s focus on fixing social issues and resolving systematic racism around the world.

Nike also continues to push for the advancement of social movements by spending money on lobbying efforts. Years down the road, the company still pushes the idea of being viewed as a social activism organization by lobbying on topics such as physical education grants, taxes and climate change, as well as the “Uyghur Forced Labor Prevention Act.” Nike is an organization that has been heavily criticized in the past for their use of sweatshops and child labor in developing countries. “‘In the first three quarters of 2020, Nike spent $920,000 on in-house lobbying of Congress and other federal agencies,’” the New York Times reports” (Lowe 2020). In order to convey to the public that the company holds good intentions and stands against unfair labor, they donate large sums of money to lobbying efforts. These issues have stemmed directly from the Kaepernick “Just Do It” campaign as Nike continues to adhere to the public by supporting social movements and the theme of making the world a better place.

Nike also continues to push their campaign with Kaepernick by c ommemorating anniversaries of his call to action with the kneeling protest. Four years after the social activism outbreak, Nike still pushes the campaign by selling special all black #7 Colin Kaepernick jerseys to increase profits and build off the highly su ccessful campaign. The company is able to continue their successful campaign by showing constant support for the activist athlete, commemorating him by holding special anniversaries that honor his stand against systemic racism and social issues related to the BLM movement. According to a recent article by Aaron Colen on Blaze Media, Kaepernick released a statement on social media about the bigger picture of sports and football, which is an idea that Nike forms around their brand through this campaign: “Four years ago, I took a knee to protest against systemic racism and social injustice,” Kaepernick wrote on social media. “It was that day that the number on my jersey would come to represent something greater than football, somethin g greater than me. Since then, the number 7 jersey has been a symbol for advancing the liberation and well-being of Black & Brown communities. Thank you for staying True.” People seem to resonate with the idea of buying Kaepernick apparel to support a social movement; “Nike released just two products related to Kaepernick, both of which were produced in seemingly low volumes and quickly sold out. They have been out of stock for months, and consumers searching ‘Colin Kaepernick’ on Nike’s website are encouraged to sign up to be notified about ‘future Colin Kaepernick products,’” as per a NY Times article. Nike is able to profit off these continuous social media campaigns because the connection to Colin Kaepernick went viral online and had an emotional conne ction with many viewers.

Despite all of the reactions from consumers, Nike did not put out any news releases for this campaign. The company communicated to their audiences and launched the cam paign primarily through social media and on billboards. On September 3, 2018 Colin Kaepernick posted a tweet of the Nike image he was featured i n. Nike retweeted this image and then launched the video advertisement a few days later. The only comment about the case came from Gino Fisanotti, North America’s vice president of brand for Nike. “We believe Colin is one of the most inspirational athletes of this generation, who has leveraged the power of sport to help move the world forward,” (Nike features NFL’s Kaepernick among athletes in ‘Just Do It’ campaign). Nike reported to ESPN about the partnership, and that business was the first one to spread the news.

Although Nike did not make many public statements, multiple media agencies and businesses made a comment about the campaign. The National Football League (NFL) issued a statement in support of the campaign just one day after the launch.‘“The National Football League believes in dialogue, understanding and unity,” NFL executive vice president of communications and public affairs Jocelyn Moore said Tuesday in a statement. “We embrace the role and responsibility of everyone involved with this game to promote meaningful, positive change in our communities . The social justice issues that Colin and other professional athletes have raised deserve our attention and action,” (NFL, 2018). This statement came to a surprise to some, since Kaepernick has been in a collusion case with the NFL since 2017.

Other media outlets covered the issue emphasizing the losses Nike was facing, and not on the issue Nike was taking a stance on. News outlets talked about how consumers were boycotting the brand. The Business Insider featured an article that talked about the hashtag, #Justburnit, which trended on social media with images of people destroying their Nike merchandise. This response toward the campaign showed a side of anger and opposed the collaboration.

This case study of Nike’s partnership with Colin Kaepernick provides a lot of insight in the field of public relations. Public relations professionals can learn from Nike’s strategies in this case to implement a strategic communications plan that engages their own audience in a meaningful way. Nike took a calculated risk when partnering with a public figure known for his polarizing beliefs. However, with Nike’s plan, they were able to create a campaign that drew in the attention of others. Their campaign provided the company an opportunity to use their platform to make a difference in society. Touching upon societal issues can be difficult, but when done appropriately they have a great impact. In addition to how Nike executed their plan, public relations professionals can take away how to use multiple platforms to get a message across to their audience. Nike utilized social media to spread their campaign as well as billboards in standout locations to grab the attention of others.

Another corporation who had a similar case to Nike was Pepsi. P epsi’s “Live for Now – Moments” campaign. This campaign was a video designed to come across as an advertisement that promotes diversity, unification, and touch on the issue of police brutality, similar to Nike. They also featured a public figure, Kenall Jenner to grab their audience’s attention. However, the advertisement was poorly executed and outraged many viewers due to the insensitivity in the short film. The advertisement shows a diverse crowd of people coming together to protest. The crowd is then joined by celebrity Kendall Jenner, who leaves her photoshoot to join the protest and hand one of the police officers a pepsi. After he takes a sip, everyone who engaged in the protest celebrates. The execution of this advertisement made the issues of racial inequality and police brutality a simple fix. Pepsi released a statement apologizing for the advertisement and explaining that their intended message was not relayed appropriately. This advertisement was taken off air almost immediately.

Another campaign that was successful in getting their message across to viewers was Airbnb. Airbnb created a campaign in response to President’s Trump closing the Ame rican borders to refugees in 2018. The advertisement aired during the Superbowl and was highly favored by the audience. The campaign was called “We Accept” and showed pictures of a bunch of different people of different nationalities. The quote on the advertisement read We believe no matter who you are, where you’re from, who you love or who you worship, we all belong. The world is more beautiful the more you accept.” Similar to Nike, Airbnb used their platform to address racial inequalities in society and bring attention to this issue. Although they did not use a celebrity, their timing of the advertisement got a huge amount of attention.

I believe that the tactics Nike used in this campaign were exclusive to their organization because it is difficult for a brand to side with a political viewpoint without losing a large chunk of their viewers. In a polarized political climate, organizations must be wary of the consequences of taki ng a side that part of their audience will not agree with. However, a company as big as Nike researched how people felt about Colin Kaepernick’s actions in order to determine the best strategies to implement into the campaign. Since they adhered to their young target audience and took a risk that conveys their brand identity and represents Nike as a brand of goodwill that supports social movements and activism, I think their PR department successfully accomplished their goals and objectives. I think their use of a prominent social activist figure in sports was a perfect way to display their brand identity and engage the most people possible. They were able to clearly get their message across to viewers that people should express their beliefs and fight for their values, even if it means losing everything you have worked for. After all, this idea of standing up for your own principles is the whole premise of the “Just Do It” slogan. Therefore, as a public relations professional, it is clear to me that their strategy of showing how people can “just do it” in a way that represents sports and social activism simultaneously was a remarkable way of gaining media attention and support from consumers.

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Nike: An Innovation Journey

First Online: 29 November 2017

Cite this chapter

Michelle Childs 5 &
Byoungho Jin 6

Part of the book series: Palgrave Studies in Practice: Global Fashion Brand Management ((PSP:GFBM))

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Nike is an American multinational company that has evolved to become a global leader in athletic wear with annual sales exceeding $21 billion in 2016, more than half of which is attributed to international markets. Since its inception in 1964, Nike has been an innovation leader in product development, marketing and consumer experience. Due to a dedication to continuous innovation, Nike has been able to sustain a competitive advantage within the athletic apparel and footwear marketplace. This case highlights key points in Nike’s journey of innovation and examines how Nike has successfully emerged as a global champion within the athletic wear industry. Based on these analyzed strategies, this case provides implications that are relevant for practitioners and academics.

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In 1928 in Chicago, IL, Cole Haan was established by two founders—Trafton Cole and Eddie Haan. The company focused exclusively on men’s footwear before expanding into women’s footwear in 1979 (Shoemetro, 2016 ).

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Childs, M., Jin, B. (2018). Nike: An Innovation Journey. In: Jin, B., Cedrola, E. (eds) Product Innovation in the Global Fashion Industry. Palgrave Studies in Practice: Global Fashion Brand Management . Palgrave Pivot, New York. https://doi.org/10.1057/978-1-137-52349-5_4

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Home » Management Case Studies » Case Study of Nike: Building a Global Brand Image

Case Study of Nike: Building a Global Brand Image

Brand history.

The idea of Nike began way back in the 1950s. A track coach by the name of Bill Bowerman was at the University of Oregon training his team. Bill was always looking for a competitive edge for his runners, like most of us today look for any advantage we can get. Bill said he tried using different shoes for his runners as well as trying other things to try and make his athletes better. Bill tried to contact the shoes manufactures in attempt to try out his ideas for running shoes. This however failed. In 1955 a track runner by the name of Phil Knight enrolled at Oregon. Phil was on the track team under Bill. Phil graduated from Oregon and acquired his MBA from Stanford University. Phil went on to write a paper that talked about how quality shoes could be made over in Japan and they would be cheaper. Phil called a company in Japan and became a distributor of Tiger shoes in the United States of America. Phil sent some pairs of shoes to his old track coach trying to get Bill to buy the shoes. Instead of buying these shoes Bill offered Phil a partnership to create better running shoes. In 1964 Bill and Phil shook hands and formed Blue Ribbon Sports. The companies’ first move was to order three hundred pairs of shoes from the company in Japan. While Bill examined these shoes and tried to make them better Phil was out selling the shoes. Bill had his track team at Oregon try out his new creations. This became the foundation of Nike. Due to the fact that Bill and Phil still had a full time job, they hired Jeff Johnson as their first full time employee. Jeff soon became a invaluable utility man for the company. In 1971 Jeff created brochures, marketing materials and even shot photos for a catalogue. The very first Blue Ribbon store was opened by Jeff. Meanwhile the relationship between Blue Ribbon and the company from Japan was starting to deteriorate. Bill and Phil made the jump to manufacturing and designing their own footwear. The trade marks swoosh which was introduced at this time. The Nike line of footwear was unveiled in 1972, during the U.S. Track and Field Trials. One pair of the shoes had a huge impression on a dozen multiple runners that wore the new shoes. These shoes incorporated a new style of soles that that had nubs on them that resembled the ridges of a waffle iron. These shoes were also a lot less heavier than most running shoes at the time. With the new image Nike started looking for athletes to wear, promote and elevate the new shoes. The first athlete they found was Steve Prefontaine. Prefontaine never lost a race that was over a mile in distance in his college career between 1969 and 1973. Prefontaine challenged Bill , Phil and their new company to stretch their talents. In turn Prefontaine became an ambassador for Blur Ribbon Sports and Nike. In 1975 Prefontaine died at the age of 24, but his spirit still lives on within Nike. Prefontaine became the “soul of Nike”. When 1980 hit Nike entered the stock market and became a publicly traded company. Once this happened many of the people that started the company moved on with their lives. This included Phil Knight who resigned from his president spot for over a year. In the mid-1980s Nike started to slip from top of its industry. This started to change when Michael Jordan released a new shoe through Nike. When this happened Nike’s bottom line got a boost. In 1988 the slogan that we all know today “Just do it” was introduced as a way for Nike to build on its momentum from their “Revolution” campaign. The Just do it campaign included three advertisements in which a young athlete by the name of Bo Jackson was involved in. By the end of the decade Nike was at the top of their industry once again. The 90’s brought a series of outreach for Nike. At this point in time Nike deepened their commitment into others sports such as soccer and golf. In 1995 Nike signed the whole World Cup wining Brazilian National Team. This also allowed Nike to create jerseys for the team. Nike also landed contracts with both the men’s and woman’s teams for the United States. The biggest thing that Nike was criticized for was when they signed a young golfer by the name of Eldick “Tiger” Woods for huge deal. All of the competition said this was a dumb idea till Tiger won the 1997 Masters by a record 12 strokes. In 2000 a new shoe was introduced. This shoe went by the name of the Nike Shox. This shoe combined more than 15 years of dedication and perseverance. Nike is still the industry leader in their markets and continues to grow more and more each year around the world. This company will have much more to offer in the future.

Brand Equity

Having and holding customers is likely to be a competitive battle which each brand tries all efforts to win. They compete for functional attributes, distinctive services or innovative technologies. So what are emotional and functional benefits which Nike provides for their customers?

Since Nike was set up by someone who has a deep passion for athletics and running, it should come no surprise that product is important. Products that are comfortable, authentic, functionally innovative and uniquely designed. The innovative technology is considered as one of the defining dimensions of Nike’s brand identity and corporate culture.

The simple driving concept has led to some impressive innovations which is considered as one of the defining dimensions of Nike’s brand identity and corporate culture. The first highlight was Air cushioning, using pressurized gas to cushion impact and new materials such as Urethane, that was used first with the Air Max running shoes. More recently, to obtain maximum performance, Nike Sport Research laboratory has discovered the innovative technology such as Shox, which are made mostly of rubber and spring back adding more power to a runner’s stride and Total 90 Concept, a range of equipment to help players perform over 90 minutes of a soccer match. Such innovative technology which Nike has used has gained the strong hold in consumers’ perceptions.

Clearly, functional benefit is the fundamental and classical features to communicate with customers. However, if Nike just provided high quality running shoes to enhance athletic performance, Nike would not be strong brands. Big brands need to be beyond the purely functional relationships. They should create a more strong emotional attachment with core consumers because emotional benefits add richness and depth to the brand and the experience of owning and using the brand. Nike offers emotional benefits which are “the exhilaration of athletic performance excellence; feeling engaged, active, and healthy; exhilaration from admiring professional and college athletes as they perform wearing “your brand” – when they win, you win too”.

Associated brand with the top athletes, Nike tells story of brands which the main themes is sportsmanship and unrelenting effort. These are the story of Michael Jordan who won a record 10th scoring title and was selected as one of the 50 Greatest Players in American’s National basketball association championship. Lance Armstrong survived and won a second straight Tour de France while Tiger Woods completed the career Grand Slam, ensuring his place in golf history at the age where most of us are still wondering what we will do when we grow up. The most three prominent athletes has generated the inspiration for young and next generation of athletes. Nike has succeeded to transfer their inspirations to every single purchaser. Wearing every pair of Nike shoes is to engage a passion for excellence and encourage to do your own thing. “Just do it” – the tagline could sum up all the greatest values of brand which is.

“Just Do It” Campaign

Products are no longer just products, they move beyond the functional meanings. Nowadays, they are definitely social tools serving as a means of communication between the individual and his significant references. Products are considered as a symbol of individuality and uniqueness, and also symbol of affiliation and social identification. It is particularly trued with the fashion brands. Fashion brands such as clothes, bags, shoes and etc satisfy opposing functions, both social identification and distinction among individuals.

Nike must have understood the recipe well. The “Just do It” campaign in the early 1990s would be a perfect example. Losing ground to archival Reebok which was quick initiative on designing “style”, “fashion” aerobics shoes in 1980s, Nike responded dramatically and forcefully by launching the “Just do it” campaign which was mainly focused on person wearing on products instead of product itself.

Purchasing an athlete-endorsed product is one means of symbolically and publicly demonstrating aspirations to be a part of the group and such behaviors are directly influenced by the extent to which a fan identifies with an athlete endorser. Heroes and hero worship was being built as the main themes of advertising. Celebrity endorsements such as Bo Jackson, John McEnroe and Michael Jordon appealed to the consumers sense of belonging and “hipness”. In other words, Americans consumers were convinced that wearing for every part of your life was smart (the shoes are designed for comfort) and hip (everyone else is wearing them; you too can belong to this group). “Just Do It” campaign succeeded (Nike increased its share of the domestic sport shoe business after launching this campaign in America from 18 percent to 43 percent, regained the leader position) because it could fascinate customers in both separating ways. Wearing Nike as a self fulfilling image declaration – “if you are hip, you are probably wearing Nike”. But perhaps most importantly, it could create the desirable needs -“if you want to be hip, wear Nike” .

Brand Loyalty

Luring by good shoe with innovative functionality and athletic aspiration value, Nike has indeed come to mind and heart of its customers. By the mid of 1990s, 77 percent of male Americans from the age of 18 to 25 chose Nike as their favorite shoe. The figure still remains stably despite of that “up” and “down” year Nike has been experience, gaining the high score of customer satisfaction at 79 percent rated by The American Customer Satisfaction Index Organization .

It could be said that loyalty to the Nike brand is driven by many external and internal factors such as brands’ subjective and objective characteristics and loyalty building programs. One visible example of creating innovative method to capture the strong relationships with Nike users is that creating Joga.com, a social network site for foot ball fans. Launching quietly in the early 2006, the site became an instant hit, peaking at 7.5 million viewers when Nike showed Ronaldinho video clips. More than 1 million members from 140 countries signed up by mid July. In this site, fans can create their personal blogs, build communities around favorite teams or players, download video and organize pickup games. By enrolling consumers in building and shaping the content of the website, Nike pulled their loyal customers closer, nurtured deeper bonds of loyalty and advocacy.

Brand Awareness

Brand awareness is the first and crucial stage of consumer’s preference. It refers to the strength of a brand’s presence in the consumers’ mind. Nike has been successful in building awareness. The “Swoosh” symbol has been appeared everywhere, on shoes, hats, billboards and soccer balls across the globe too remarkably to such extent that one author used the title “The Swooshification of the World” on Sports Illustrated column that imaged a future in which the swoosh could surpass sports to become a letter of the alphabet and the new presidential seal, among other things. True be told, the recognition of the ‘swoosh’ is extremely high.

As of 2000, 97 percent of American citizens recognized the brand logo, as the strong brand penetration. Nike could be recognized consistently without identification of brand name, even by the youngest group (aged from 4 to 6 years old). This perhaps may reflect the general level of advertising and promotion that children are exposed to.

How has Nike done to build brand awareness? Sponsorships, advertising and experience focused retailing (Nike town) are three vivid channels that Nike has applied to enhance its brand image and awareness. Among these strategies, athlete endorsements could be considered as the most significant success of Nike brand.

Nike has been invested millions of dollars to associate their brand names with easily recognizable athletes with the aim of brand image building. Athletes at the top of their respective sport such as Micheal Jordan, Tiger Woods, and Lance Armstrong who are well – liked and respected by members of the brand’s target audience are chosen as endorsers to associate the Nike brand with the athlete’s celebrity image. This strategy has been paid off, for example, since Tiger Woods and Nike cooperated, annual sales for Nike Golf have exceeded to nearly $500 million dollars with an estimated 24 percent growth per year in the first five years of the agreement.

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398 :: How Nike Lost Steph Curry: A Case Study of a Multi-Billion Dollar Mistake The Construction Leadership Podcast with Bradley Hartmann

In episode 398, a 2016 ESPN article written by Ethan Sherwood Strauss has been converted into a vivid and engaging case study illustrating the laws of power, influence, persuasion, and value—including what to do and what not to do. The case study examines Steph Curry's rise to fame and his disillusionment and feelings of disrespect from the leaders at Nike. His decision to sign with underdog Under Armour (UA) over Nike has redirected billions of dollars over the years—and will continue to do so as Curry will sign a lifetime deal with UA. This episode reveals how Nike missed the shifting NBA trend away from back-to-the-basket offense and toward historic long range accuracy beyond the three-point line. The story also reveals one path toward developing trust through an unlikely source in character of Kent Bazemore, an undrafted 12th-man from Old Dominion University. This case study involving Steph Curry, Nike, and Under Armour is a story about life: How to build trust, developing strong relationships, and adaptation to dynamic industry changes. KeyTakeaways/Insights •Delivering value first through helpfulness and persistence pays off over time. •Documenting and challenging assumptions enables you to monitor trends and position yourself to gain advantages from industry shifts. •Never underestimate the power of social proof ; allow others to promote your products and services •Innovation can come from unexpected places if you're open-minded •Market leadership can lead to complacency, causing undercapitalized underdogs to connect with rising stars •Inattention to strong relationships increases your vulnerability to competitors Chapters 0:00:00 Underutilized Strategy in Plain Sight: Curry and the 3-point line 0:05:24 Anatomy of a Trainwreck: Nike’s sales pitch to Curry 0:09:27 The Kent Bazemore Principle: Curiosity by proxy 0:13:03 Under Armour’s unconventional strategy 0:21:48 The Underdog Advantage 0:25:51 Nike defends This episode is brought to you by The Simple Sales Pipeline® —the most efficient way to organize and value any construction sales rep's roster of customers and prospects in under 30 minutes once every 30 days. *** If you enjoyed this podcast, please leave a review on Apple Podcasts. Your feedback will help us on our mission to bring the construction community closer together. If you have suggestions for improvements, topics you'd like the show to explore, or have recommendations for future guests, do not hesitate to contact us directly at [email protected].

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3 fashion stocks to buy before summer 2024 heats up.

Summer is around the corner, meaning fashion stocks are well-aligned. Sure, the “sell in May, and go away” stock market anomaly is worth considering. However, consumers will likely stock up on fashion items prior to their long-awaited summer holidays.

Seasonal consumer spending introduces a base case for better industry earnings. However, that doesn’t mean all fashion stocks are primed to surge. In fact, a comprehensive study is required to establish which, if any, fashion stocks are set to prosper in the coming months.

Methodologically, I screened for fashion stocks with telling fundamentals. Moreover, I ensured that each stock’s quantitative metrics were in order. Last but not least, I searched for overlooked intrinsic value.

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

With all that said, here are three retail stocks to consider ahead of the northern summer.

Source: TY Lim / Shutterstock.com

Nike (NYSE: NKE ) is a product launch play. According to Bank of America analyst Lorraine Hutchinson , the firm is set to reposition its product line ahead of the Olympics this fall.

Those factors play into broad-based summer spending, lending Nike the necessary latitude to benefit from seasonal sales. Furthermore, reports suggest that Nike is close to agreeing to an endorsement deal with Caitlin Clark, the Women’s National Basketball Association star. The agreement is reportedly worth $28 million and will span eight years. Although the Clark deal involves a substantial cost outlay, it enhances Nike’s footprint in the female activewear market, which is set to grow by 21.6% per annum until 2032. This is a good move by Nike!

Nike stock has slumped by more than 20% in the past year, placing its price-to-earnings ratio at around 27.69x , a five-year discount of approximately 33%. Although Nike stock’s poor performance raises concerns, I argue a value gap has emerged. Why? Well, Nike’s third-quarter earnings report conveyed fundamental prowess, as the company beat its revenue target by $130 million and its earnings-per-share ( EPS ) target by 23 cents. Nike’s fundamental resilience and aligned price multiples place its stock in undervalued territory. It means NKE stock is ready to provide its investors with stellar returns!

Lululemon Athletica (LULU)

Source: Sorbis / Shutterstock.com

Lululemon’s (NASDAQ: LULU ) stock surged nearly 700% in the past 10 years, communicating the company’s fundamental stealth.

I believe Lululemon’s primary risk factor is its trend-like product line, which, although prominent, is niche. Secondly, LULU stock’s price-to-earnings ratio of about 29.88x is above the sector median of 17.38x, raising market-based doubts. However, despite these risks, I remain bullish.

Lululemon’s 10-year compound annual growth rate (CAGR) of 19.71% indicates secular growth. Moreover, Lululemon’s return on common equity ratio of 42.01% shows comprehensive monetization per unit of invested shareholder capital. These metrics speak volumes as they reflect perpetual growth.

Furthermore, Lululemon has near-term catalysts. For example, Brian Nagel of Oppenheimer recently said LULU stock’s growth prospects remain intact amid promising innovation and marketing. Moreover, as discussed in the introduction, fashion stocks could prosper before the northern summer, adding substance to LULU stock’s interim earnings prospects.

I highlighted LULU stock’s questionable price-to-earnings ratio earlier. However, I see this as both a momentum and growth play instead of a value stock. LULU’s illustrious growth rate will coalesce with systematic support in the fashion retail space to deliver unstoppable returns.

Guess (GES)

Source: Shutterstock

Guess’ (NYSE: GES ) stock is filled with good news, which sent it above its 10-, 50-, 100-, and 200-day moving averages .

Even though some may deem Guess stock overbought, a sustainable growth story is in motion. The company walloped its earnings estimates last month after cruising past its revenue and EPS targets by $36.41 million and 44 cents, respectively. Moreover, Guess’ management approved a new share buyback program of up to $200 million , allowing the firm’s investors an opportunity to reduce their cost basis.

Furthermore, Guess and WHP Global agreed to acquire Rag & Bone. Guess’s $56.5 million commitment provides it full operating ownership and 50% intellectual property ownership. Rag & Bone delivered $250 million in revenue last year. Significant human capital and cross-border sales synergies are en route, providing Guess’ shareholders with much to cheer about.

Last, GES stock possesses a stunning price-to-earnings-growth ( PEG ) ratio of 0.2x , suggesting it is a growth-at-a-reasonable-price (GARP) investment opportunity. In my view, Guess’s PEG ratio coalesces with its robust fundamentals and momentum data points to formulate a bullish case!

On the date of publication, Steve Booyens did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines .

Steve Booyens co-founded Pearl Gray Equity and Research in 2020 and has been responsible for institutional equity research and PR ever since. Before founding the firm, Steve spent time working in various finance roles in London and South Africa. He holds an MSc in Investment Banking from Queen Mary – University of London. Furthermore, Steve has passed all CFA Levels and is working toward his Ph.D. in Finance. His articles are published on various reputable web pages such as Seeking Alpha, TipRanks, Yahoo Finance, and Benzinga. Steve’s articles on InvestorPlace form an interesting juxtaposition between mainstream opinion and objective theory. Readers can expect coverage on frequently traded stocks, REITs, fixed-income funds, CEFs, and ETFs.

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