Nike
Alex, Cameron, Claudia,
Marcelus, Morgan and Will
Table of Contents
Page 03
Brand Overview
Four P's of Marketing Communication
The Consumer
Dynamic
Competitive Positioning
& Messaging
Technology Trends Cultural Trends
SWOT Analysis
Research Background Methodology & Location
Conclusion
MC 3036 | SPRING 2023
MC 3036 | SPRING 2023
Page 03
Brand Overview
Founded in 1964 by University of Oregon Track & Field Athlete Phillip Knight and his coach, Bill Bowermanin
Originally under the name "Blue Ribbon Sports," the brand's name was changed to "Nike" in 1971
Top brand in the footwear market for decades
Over 77,000 employees
Partnerships with Lebron James, Serena Williams, Rafael Nadal, and Alex Morgan
Nike's motto is "Just Do It."
Four P's
Page 04
Product
Price
Nike products are innovative and have a sleek design for maximum performance. Nike has a variety of products, from casual to sport-specific footwear.
In 2021, the average price of a pair of Nike shoes was $110.15. Often Limited Releases affect shoe prices in the resale market.
Place
Promotion
Nike has stores globally in more than 150 countries.Nike partners with high-profile athletes and celebrities for
Distribution varies from brick-and-mortar to third partyhigh-value brand deals. Nike prides itself on using
vendors. (including e-commerce)promotion strategies and creative advertising through
social media campaigns, out-of-home advertising, and
memorable commercials.
MC 3036 | SPRING 2023
MC 3036 | SPRING 2023
Page 05
Communication
Nike has successfully used digital marketing and social media to connect with younger audiences. They use social media campaigns, interactive online experiences, and influencer collaborations for personalized and engaging communication.
Nike's advertising campaigns prioritize
diversity and inclusivity, celebrating the
uniqueness of individuals worldwide.
This resonates with consumers who
value these principles.
Nike's branding strategy is consistently inspiring and innovative for athletes worldwide. Their iconic tagline "Just Do It" has become a symbol of motivation and determination.
01
03
Nike's ads showcase athletes and ordinary people to motivate viewers to chase their athletic dreams with authentic messaging.
02
04
Page 06
Target Audience
Overview
The target audience are 25-36-year-old males and females that have middle to high income. The individuals value quality and brand reputation. They are millennials willing to try new products. Frequent users of social media, with Instagram and Facebook as the most popular.
MC 3036 | SPRING 2023
Dynamic
Page 07
According to Statista, The global Footwear industry is worth $1.5 trillion. The competitiveness of the market has caused controversy around the resale market. Counterfeit products bearing the Nike brand name are sold in the market at lower prices. This can negatively impact Nike's brand image, customer trust, and sales, as consumers may unknowingly purchase fake Nike products.
MC 3036 | SPRING 2023
Page 08
Competitive Positioning and Messaging
Nike is a leader in shoe advertising, with a budget consistently around $3 billion.
They still use traditional marketing, but most sales come from online and wholesale deals.
Nike has over 1,000 personal retail stores. However, in 2021 Nike cut ties with Urban Outfitters, Macy's, and DSW.
In 2021, Nike generated over $46 billion in revenue globally. Their famous slogan, "Just Do It," has existed for 25 years.
Top Competitors: Adidas, Puma, New Balance, Under Armour Rising Competitors: On Running and Brooks
MC 3036 | SPRING 2023
MC 3036 | SPRING 2023
Page 09
Technology
Trends
In their footwear, Nike uses advanced technologies like Flyknit yarn, Flywire, and cushioning technologies. Flyknit creates formitting shoe uppers, while Flywire provides light support & stability.
Nike+Run Club app provides training tips, a
running community, and route tracking for free on iPhones. In 2021, Nike entered the metaverse space with "NikeLand" on Roblox, attracting 26 million visitors and increasing brand awareness among younger users.
Cultural Trends
"Dream Crazy"
Colin Kaepernick narrates a commercial encouraging viewers to follow their dreams despite adversity, using the tagline "Believe in something. Even if it means sacrificing everything."
Page 10
"Be True"
Every year, Nike runs the "Be True" campaign in celebration of LGBTQ+ Pride Month, which includes various products such as sneakers and clothing with rainbow- colored accents. In addition, Nike donates a portion of the profits from the campaign to organizations supporting the LGBTQ+ community.
"Dream Crazier"
Their "Dream Crazier" campaign, which premiered during the 2019 Academy Awards, honors women who have triumphed over obstacles and accomplished great things in sports.
MC 3036 | SPRING 2023
Page 11
SWOT Analysis
S
Worldwide reach & brand awareness
Variety of footwear products, including brand subdivisions Innovative shoewear technology Low-cost manufacturing
High profile partnerships
W
Numerous outside retailers Perception on quality
Expensive + not accessible for all income brackets
Poor working conditions
O
T
Advancements in footwear technology
Using recycled products as material
Expanding Digital Presence Increased durability with new materials and technology
Competing footwear brands
Nike product counterfeit (knock-
offs)
Societal trends increasing dress
shoe popularity
Uneasy relationship with retailers
Luxury brand perception
Page 12
Research Background
We conducted a research process to gather information about how consumers aged between 25-36 perceive Nike footwear. We used different research methods and gathered a broad range of opinions to gain a better understanding of the footwear industry. The research findings will help identify common issues that consumers have with Nike footwear, which will be used to create a new, innovative and effective Nike footwear campaign. This research process involved one-on-one interviews, both in-person and online via Zoom, and a Focus Group that included projective techniques. Its outcomes have directed us towards a creative and problem-solving approach.
MC 3036 | SPRING 2023
Methodology & Location
Page 13
One-on-One Interview
We conducted personal interviews with 25 to 36-year-olds to understand their footwear shopping tendencies and opinions. One-on-one interviews yield honest answers and no bias from other participants. We conducted the interviews inside the participants' homes to ensure comfort and honesty. The interviews were held in person and online via Zoom during the week of March 7th.
Focus Group
We conducted a focus group of 25-36-year-olds to learn about their perceptions of Nike shoes, with a focus on quality. The group met on April 21st at Louisiana State University and answered questions about demographics, personality, shopping style, and opinions on the brand. We used projective techniques of word association and completion.
Page 14
Sample Size
TWELVE MALES / TEN FEMALES
THIRTEEN PREFER QUALITY OVER AESTHETIC OUT OF TWENTY-TWO
Interview: 14 people = 8 female + 6 male, 5 in-person + 9 via Zoom Focus Group: 8 people = 6 male + 2 female
MC 3036 | SPRING 2023
Page 15
Sample Size
LOWELL, MA 4.8%
BOCA RATON, FL 4.8%
BATON ROUGE, LA 33.3%
METAIRIE, LA 9.5%
PRAIRIEVILLE, LA 9.5%
ATLANTA, GA
4.8%
TYNGSBORO, MA
4.8%
MANDEVILLE, LA
4.8%
NEW ORLEANS, LA
4.8%
DENHAM SPRINGS, LA 14.3%
MC 3036 | SPRING 2023
Page 16
Key Findings
After the two research methodologies were conducted and analyzed, the key finding was that the quality of Nike footwear was questionable and could be better. Our research revealed that consumers perceive Nike footwear to be more on the expensive side, so with
that, they expect top-tier quality. We divided up our findings into four
different themes.
THEME ONE: DURABILITY
THEME TWO: COMFORTABILITY THEME THREE: PRICE
THEME FOUR: STYLE
MC 3036 | SPRING 2023
Page 17
THEME ONE: DURABILITY
Interview:
Focus Group:
During one-on-one interviews, the topic of Nike shoes' durability was discussed. Participants expressed their opinion that Nike shoes do not last as long as other brands like Adidas, New Balance, and Reebok.
A 27-year-old male shared in an interview that he admires Nike's style, but his shoes
tend to tear at the sole frequently. Despite this issue, he still purchases Nike shoes, but he is cautious about buying new releases due to
his past experience with their durability.
A man, aged 32 and a father of two, expressed his opinion that Nike tennis shoes are suitable for office wear, but he prefers On Cloud tennis shoes for running and exercising. He believes that Nike shoes prioritize style over durability, whereas On Clouds enhances his workout experience. In the same theme, a 25-year-old individual mentioned that they wear Yeezy Boosts to attend classes as they find them the most comfortable option for extended periods.
MC 3036 | SPRING 2023
Page 18
THEME TWO: COMFORTABILITY
Focus Group:
Interview:
We asked participants about their experience with Nike shoes and found mixed feedback
on comfort. Respondents compared Nike shoes to luxury car brands and noted a shared sense of comfort and brand loyalty. One participant preferred trendy sneakers for work, while another noted discomfort for wider feet.
A young woman of 26 years of age expressed
that Nike shoes lack support. She works as a speech-language pathologist for children, which requires her to be on her feet and actively
engage in play with them to teach proper pronunciation and emotional expression. Hence, she opts for running shoes or New Balance, which provide her with all-day comfort.
Similarly, a young man aged 27 stated that his On Cloud running shoes are the most comfortable footwear he owns.
MC 3036 | SPRING 2023
Page 19
THEME THREE: PRICE
Focus Group:
We surveyed a focus group on their perception of Nike footwear. Participants had varying opinions, using words like "bold," "customizable," and "expensive."
Some found Nike shoes stylish but not suitable for sports, while loyal fans were willing to invest in limited editions.
Interview:
Price emerged as a key theme throughout the research, generating various opinions. For example, one participant shared their willingness to spend $250 on comfortable and long-lasting shoes, while another was content with spending only $80.
Interestingly, some participants admitted to purchasing Nike shoes solely for their aesthetic value, even at a higher price point.
MC 3036 | SPRING 2023
Page 20
THEME FOUR: STYLE
Focus Group:
Our focus group showed that many like Nike shoes based on their style and look. Many noted that Nike leather sneakers were perfect for casual, leisure situations. In the late 2010s, many Nike shoes like the Jordan
1, Nike SB, and Air Force 1s became fashion statements. A participant, stated, “Nothing can beat a white tee, blue jeans, and some G Nikes,” with G Nikes referring to Air Force
1s. Many questions were asked based on the style of our focus group. Questions included, “Do you follow trends in footwear,” “Do I value aesthetics when it comes to my personal style?”
Interview:
In one-on-one interviews, many participants shared that their favorite pair of shoes were from Nike. This was important to include in the key findings because it proves that some members of millennials are loyal to the brand. For example, a 26-year-old male from Metairie, LA, said his favorite pair of shoes are the “Mens Nike Killshot 2 Sneakers.” These sneakers feature a retro style; he enjoys them because he gets compliments and thinks they are quite comfortable. In addition, this participant primarily wears dress shoes and boots in his day-to-day life, so wearing his Nike Killshots is a good chance for him on weekends.
MC 3036 | SPRING 2023
Page 21
Creative Brief
Objective:
Increase consumer perceptions regarding the quality of Nike’s footwear. Educate consumers on the technology behind Nike footwear.
Target Audience and Demographics:
Working professionals or recent school graduates
aged 25-36 who have middle-to-high income
levels and often purchase shoes or go shopping.
Target Audience Psychographics:
This audience knows shoe prices, Nike's history,
and values durability. They're willing to spend on innovation and comfort.
Current Thought:
Nike is a well-known brand loved by people of all
ages. They offer a wide range of shoes, from running
shoes to everyday wear. Although popular, there are
other brands that make better shoes and are easier
to find.
MC 3036 | SPRING 2023
Page 22
Creative Brief
Desired Thought :Single Most Important Thought:
Nike shoes are top quality with high-tech technology,Nike's quality is made to last.
making them comfortable, durable, and affordable for
all consumers.
Rationale: Tone:
Nike advertisements for this campaign should use
a tone that is informative and sophisticated while
also being bold and enlightening.
Nike Footwear is a world-known, durable brand that is targeted to millennials who are well-educated and have an activating shopping style. This was found in various exercises during a structured focus group and one-on-one individuals in which people found that Nike shoes are loveable, but there is not a lot of community-knowledge behind the top-market technology in the shoe. This information was found in word-association exercises, perception based questions, and brand- personification discussion.
MC 3036 | SPRING 2023
Page 23
Recommendations
Nike emphaziies the high quaility and the benefits from new technology.
The average consumer highly values material quality and durability. Adertize Nike Rip, Tear policy.
Nike should continue to produce new and innovative shoe designs for casual use, room to capitalize.
Nike should continue to provide shoes in all price ranges.
Sneakers, specifically, were bought based on style and quality. Others who use Nike as everyday
shoes prioritize quality and durability. Both Groups noted that they are willing to spend extra money for
a good shoe that meets their needs.
Page 24
Ad Ideas
We created an ad that communicates Nike’s innovative technology. In the ad we presented Nike’s shoe technology, as well as an explanation of what the technology provides for the foot. Along with the ad is
an interactive QR code that the audience can scan where they are redirected to a 3D model of the shoe. You are able to rotate the image 360 degrees and can click on certain sections of the shoe where an in depth analysis of the materials, technology, and benefits appear. This not only will resonate with our consumers because of its interactive capability, but it will further inform Nike consumers of the top-level product they
are looking to purchase.
MC 3036 | SPRING 2023
Page 25
Ad Ideas
During research, we found our target consumers used Facebook and Instagram the most out of all social media. To utilize this, we will buy a series of Instagram and Facebook ads. These ads will carry on with our theme of Nike’s durability. Our idea is
to shoot photos of consumers using our Nike products in inspirational ways. We will add a tagline to explain the longevity of Nike’s footwear. Here is a list of taglines we will use:
"Built to Outlast, Made to Endure.”
"Stronger with Every Step. Nike Shoes, Built to Last." "Durable by Design. Nike Shoes for the Long Run." "Tough Enough for Any Challenge. Nike Shoes, Built to Survive."
"Conquer Every Mile. Nike Shoes, Engineered for Endurance."
MC 3036 | SPRING 2023
Page 26
Ad Ideas
For our last advertisement idea, we mocked up a potential billboard. To further communicate the durability of Nike’s
shoes, we created the tagline “Stronger with every step. Nike shoes, built to last.” We chose an image of Nike’s shoes on an athlete to show that Nike’s brands are intended for any athlete.
MC 3036 | SPRING 2023
Conclusion
Page 27
To summarize this study:
The critical problem we found through research (which included qualitative interviews, a focus group with
projective techniques, and secondary research via the Internet) was that Nike's consumers have a
questionable perspective regarding Nike footwear quality.
Using this information, we constructed a campaign that directly solves this consumer disconnect.
Through extensive research and interviews, we found that customers care most about durability, comfort, longevity, and the technology's specifics. Therefore, this campaign will enlighten our target audience of 25-
36-year-olds and all demographics of footwear consumers. In addition, this campaign will increase audience
knowledge of the product, resulting in loyal customers and increased business growth and awareness.
MC 3036 | SPRING 2023
Thank You!
Alex, Cameron, Claudia, Marcelus,
Morgan and Will