Question

Using the company Nike, identify their strategy (e.g. pull, push, differentiation, etc.) and evaluate the effectiveness of that strategy in the global marketplace.

Answer 1

Sales strategies of Nike company

1. They earn word-of-mouth by creating compelling ‘Watercooler Moments’

It’s vital to have your consumers talking about your brand.

It keeps you at the forefront of your customers’ minds, and allows you to reach those who have not heard of you!

One way of achieving this is by creating ‘watercooler moments’ – experiences so exciting that people would talk about them for days on end.

It’s something Nike’s very good at doing.

2. Unique, Exciting Things – Nike Phenomenal Shot

During the FIFA 2014 World Cup, Nike partnered with Google to create ‘Nike Phenomenal Shot’.

When a Nike athlete scored a goal, display ads were delivered to fans in real-time. Fans could also rotate their players around in 3D, framing them for shots that can be personalized with filters, captions, and stickers. Once you’re done with your ‘Phenomenal Shot’, you can share it on social media.

3. Original YouTube series Margot vs. Lily received over 80,000,000 views

In 2016, Nike created a Youtube series to complement its marketing campaigns.

4. Newsworthy Technology – Nike Self-Lacing Shoes

The coolest tech so far however would have to be Nike’s new self-lacing shoes.

5. They make some really fun ads that people love sharing and talking about

Nike makes some of the best ads in the business. They teem with world-class athletes displaying their extraordinary skills.

One of Nike’s most successful ads is ‘Winner Stays’.

6. They’re socially-conscious

Consumers today expect more from the companies they buy from. They want their purchases to have a positive impact on the environment and on society, and they don’t hesitate to reward brands that do.

7. Constant innovation – NIKE+

Much like sharks, a business needs to keep moving forward to stay alive.

Nike learnt this the hard way in the mid-1980s when it lost out on the lucrative aerobics market to Reebok. Since then, it has worked hard to ensure that never happens again.

In 2006, Nike developed the ‘Nike+iPod’, an activity tracker that records the distance and pace of its user’s workout through a sensor in the sneaker.

Even today, Nike continues to expand on the Nike+ technology, releasing phone apps, watches, and even a dedicated training app!

8. Flyknit

In 2012, Nike broke new ground when it introduced its revolutionary Flyknit technology.

While traditional sneakers are made up of individual pieces that are stitched together, Nike shook things up by utilising computer-controlled “knitting” technology to shape the entire upper-part of the shoe.

9. They’re Killing it on Social Media

Social media isn’t a one-way street for Nike; it’s a conversation.

The company maintains separate Twitter accounts for each of its subsidiary brands (e.g. @nikefootball, @nikebasketball), which they predominantly use to respond to consumer @mentions.

Effects of Nike strategy:-

Nike has been creative since the start. It has been pushing the technological boundaries of innovation to offer its customers new products and also differentiate itself from its competitors. Somewhere in its evolution, Nike also realised the importance of hi-tech gadgets in day-today lives. So it started to combine new products with hi-tech solutions to give unconventional capabilities to a customer of sportswear.

Nike was also quick to seize the opportunity offered by social media to engage with a wider customer base so much so that it is now able to link its new hi-tech gadgets to social media platforms. The power of such customer contact is phenomenal as it gives greater visibility in a single click, generates interactions among customers and gives the company an opportunity to collect info about customers' choices and preferences. It also gives endless chances for customer segmentation and product differentiation, the pillars of any marketing strategy.