Nike is the world’s largest sports company, 30% bigger than nearest rivals Adidas. Scott Cendrowski has scribed an insightful article on CNN parchment exploring “How the legendary brand blew up its single-slogan approach and drafted a new playbook for the digital era.
Ive taken a close look at the article, picked out what I think are the key insights and included some additional references.
How Nike has changed it Marketing Strategy
- Spend on TV and print is down by 40%.
- It’s total marketing budget hit a record $2.4 billion last year.
- Nike has decided to target 17-year-old’s who spend 20% more on shoes than their adult counterparts.
- It spent nearly $800 million on ‘nontraditional’ advertising in 2010.
- Gone is the reliance on big budget top-down brand campaigns celebrating a single hit.
- Marketing & Advertising campaigns are increasingly split between Wieden + Kennedy and a host of other agencies that specialise in social media and new technologies.
- Nike CEO Mark Parker who not only has has the coolest CEO office in the corporate world, hasn’t even bought a pair of gym shoes since 6th grade. In recent Mark explains:“Connecting used to be, ‘Here’s some product, and here’s some advertising. We hope you like it,’ ” he says. “Connecting today is a dialogue.”
- The biggest audience Nike had on any given day was when 200 million tuned into the Super Bowl. Now, across all its sites and social media communities, it can hit that figure any day.
- Nike have stopped creating crap and now design cool stuff.
Nike’s New Digital Marketing Focus
- For the first time in its history, Nike isn’t wholly reliant on a handful of superstars to move merchandise.
- After perfecting the art of big branding, it’s moving on to a world in which its consumers want to be told less and just do more.
- Nike Digital Sport, is a new division the company launched in 2010.
- It’s hired scores of new engineers to make technology for digital communities.