Presentation on theme: "John Leathers & Amanda Wolsborn. Third floor of the Jerry Rice Building at Nike’s Headquarters Engineers and scientists with pedigrees from MIT and."— Presentation transcript:
Third floor of the Jerry Rice Building at Nike’s Headquarters Engineers and scientists with pedigrees from MIT and Apple. Leaks are tightly controlled – a PR man jumps in front of a visitor who gazes at the computer screens for a little too long. Once upon a time, this level of secrecy would have been about a new sneaker release; today, its about a revolution in marketing
Home of the new Division the company launched in 2010 – Nike Digital Sport On one level, it aims to develop devices & technologies that allows users to track their personal statistics in any sport they participate in (Nike + Running Sensor w/Apple, Fuelband, Sportwatch GPS)
It’s about more than just creating must have sports gadgets; it allows Nike access to valuable consumer data This means it can follow its consumers, build online communities for them, in the hopes of forging a tighter relationship with them than ever before It is part of a broad effort to shift Nike’s marketing efforts to the digital realm
Nike’s spending on TV & Print advertising has dropped 40% in the U.S. in just the last 3 years In the same period, its total marketing budget has steadily climbed upward to hit a record $2.4 billion last year Nike has mostly done away with the reliance on top down campaigns celebrating a single hit (Air Force One’s, Tiger Woods, etc.)
Nike is going where its consumers are: its core customer is a 17 year old who spends 20% more on shoes than his adult counterpart, and spends more time online than on television Spent nearly $800 million on non traditional advertising in 2010 30 story billboard in Johannesburg that posts fan headlines from Twitter
Nike has been moving the marketing mix away from ‘hero worship’ (Superstar athletes), towards ‘consumer driven conversation’. Has it been paying off? The company’s stock has returned 120% over the past 5 years, compared to the S&P 500 index, which has returned just 2.5%.
Do you think that Nike’s transition is working? Have you noticed? Would you rather be engaged through social media and ‘alternative advertising’ methods or through more traditional means? Is there a nostalgic element about TV/Print advertising that is attractive?
Thank you for listening. Article Link: http://management.fortune.cnn.com/2012/02/1 3/nike-digital-marketing/
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