Case Study# Nike Marketing Strategy

Name: Shahzaib Latif

Class: BsIT -5b
Enrollment : 01-135222-082

Entrepreneurship ASSIGNMENT # 2
As one of the biggest sports brands in the world, Nike was not struggling for exposure or attention. However, the
brand was noticing that its traditional, big-budget advertising strategy was seeing fewer returns over time. The biggest
market for Nike products consists of young people between the ages of 15 and 25, who spend 20% more with Nike
than any other group. But these customers weren’t paying attention to big media, and were looking for a brand that
offered constant change and innovation, not just the same old thing over and over. Nike realised that it needed a new
approach to reach this digital audience.

Understanding that marketing in the digital age is a conversation, not a monologue, Nike dropped its spending on TV
and print advertising by 40% between 2010 and 2012 – but increased its overall marketing budget to $2.4 billion in
2012. Nike chose to use a combination of technological innovations, data analytics and social media engagement to
reach this new, digitally savvy audience. Engineers and scientists associated with prestigious organisations such as
MIT and Apple were hired to build exciting new technologies and examine market insights. One of their biggest
accomplishments was the creation of Nike+ in 2010 – a device that lets users track their exercise regimens, upload
these to the web, monitor their progress, and share their achievements socially.

The product range grew to include the Nike Fuel Band. This new community created incredible volumes of data,
which Nike used to track behaviours, create online communities and spaces for Nike fans, and build meaningful
relationships between the brand and its customers. Nike moved its social media marketing team in-house so that it had
a closer connection to this data and the conversations being generated by its fans. Nike also embraced a range of other
digital best practices:

• A strong focus on storytelling: Nike advertising shifted from delivering one core ‘big message’ about its products to
talking about inspiration, aspirations and overcoming odds. For example, Nike’s ‘I Would Run To You’ ad (essentially
a funny short film) shows the story of a long-distance couple reconnecting by running across the country to see each
other.
• Being an authentic brand: The storytelling approach creates authenticity and a sense of community. Nike also strives
to understand and engage with the customers of each sport, talking to them in the vernacular they are familiar with.
• Understanding and communicating with customers on their terms: When Nike created its big-budget ‘Write The
Future’ ad for the 2012 World Cup, featuring soccer superstars Rooney and Ronaldo, it uploaded the ad on Facebook
and YouTube rather than on TV. Having seeded to a community and primed it with teasers, the ad received 8 million
views in the first week and went viral.
• Being remarkable and shareable: Nike put up a 30-storey digital billboard in Johannesburg, South Africa that was
populated with constantly-updating user tweets, creating a buzz around the campaign.
• Allowing mass customisation: The Nike iD online store lets fans create their own custom shoe designs and have
them shipped. The concept earned Nike over $100 million in its first year.
Nike’s new approach – harnessing data for user insight and creating a diverse, social and engaged digital strategy –
has had excellent results. Nike reaches over 200 million fans every day in an interactive dialogue, rather than having
to rely on big sponsored events such as the Super Bowl or World Cup to reach this number. The massive volumes of
freely shared user data produce meaningful brand insights, lead to product innovations, and allow the brand to get
closer to consumers.
In addition to this:
• Nike share prices rose by 120% between 2010 and 2012 – an important consideration, since every business aims to
make money, after all.
• Nike+ experienced a 55% growth in membership in 2012 – as of June 2012, 7 million users have signed up for the
service, and the majority of these connect with the brand several times each week to upload and review their exercise
data.
• On Facebook, and Twitter, the brand is also engaging millions of fans. Their posts typically see a high level of
interaction and discussion.

Shahzaib Latif 01-135222-082

 Case Study# Nike Marketing Strategy

Questions

a) What was the key insight that helped Nike develop a holistic marketing strategy?
Answer: Nike’s key insight was recognizing that its core target market, young people aged 15-25, was moving away
from traditional media and seeking brands that offered continuous innovation, digital engagement, and social
connection. This age group valued change and novelty over static messages and advertisements. Understanding that
digital marketing should be a two-way conversation rather than a one-way broadcast, Nike shifted its focus to digital
platforms, data analytics, and technological innovations like Nike+. This allowed the brand to build a closer, more
personalized connection with customers through social media and online communities.

b) What role do you think offline marketing and branding channels played in furthering the digital strategy?
Answer: Although Nike’s focus shifted heavily toward digital marketing, offline channels still played a
significant role by establishing a recognizable, authentic brand identity that could be carried over into
digital spaces. Offline marketing created a solid foundation of brand trust and recognition, which bolstered
Nike’s credibility on digital platforms. For example, Nike’s big-budget offline campaigns, like the ‘Write
The Future’ ad for the World Cup, attracted a lot of attention and were then integrated into digital channels
like YouTube and Facebook. These large-scale offline campaigns helped create a sense of brand legacy
and excitement, which primed audiences for engagement on digital platforms. Additionally, physical
branding elements, like the 30-story digital billboard in Johannesburg, bridged offline and online worlds,
generating social media conversations and enhancing brand visibility across both realms

c) What should Nike take into consideration when rolling out new elements and campaigns as part of
their marketing strategy?

Answer: When introducing new campaigns or elements, Nike should consider the following factors:
1. Relevance and Authenticity: Campaigns should resonate with Nike’s core audience and stay true to the
brand’s values of inspiration, empowerment, and innovation. Young consumers respond to brands that are
genuine and align with their values.
2. Personalization and Engagement: Nike’s strategy has thrived by engaging customers through customizable
products like Nike iD and interactive apps like Nike+. Continuing to prioritize personalization, customer
involvement, and active dialogue will be essential to maintaining user interest and loyalty.
3. Leveraging Data for Insights: Given Nike’s strong reliance on data, the brand should keep utilizing consumer
insights to inform product developments and marketing strategies. Understanding customers’ evolving needs
and preferences through data analytics will help Nike stay ahead of the competition.
4. Creating Shareable Content: Campaigns that encourage user participation and are easy to share on social
media can boost visibility and engagement. Nike should continue to create content that appeals to its
audience’s aspirations and is easily shareable across platforms.
5. Consistency Across Platforms: Each campaign element should be adapted to the platform it appears on but
should also maintain a unified brand voice and story. Consistency helps reinforce Nike’s brand image while
allowing for flexible storytelling across digital and offline channels.
6. Innovative Technology Integration: Nike’s audience is highly digital-savvy, so integrating new technology
(such as augmented reality, AI-driven personalization, etc.) can keep Nike at the forefront of the digital
experience. However, these should add value to the user’s journey, not just for novelty.
7. Community Building: Nike should continue investing in online communities where fans can connect, share
stories, and support one a

Shahzaib Latif 01-135222-082