Nike Digital Marketing Report and Strategy (FMK Y2)

NIKE WRITTEN REPORT STUDENT ID: 18015216 TUTOR: TONY COOPER SOCIAL AND DIGITAL MARKETING BA FASHION MARKETING Y2

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EXECUTIVE SUMMARY

CONTENTS PAGE

In this report, we look at the success of the social and digital marketing strategies of the brand Nike, before discussing what they could do to improve their recognition in the world of casualwear.

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executive summary

We begin by examining the basic background of the company, discovering they are a B2C & B2B global division organisation, and a top player in the fiercely competitive sports apparel market. We then look interally - their unique selling point being that they create genuine sportswear for genuine sports people and they have perfected the idea of storytelling to bring in customers.

On the whole, Nike has a lot more strengths than weaknesses; having a strong social media presence and being known for their highly successful marketing campaigns. This stronghold gives them opportunities for further expansion into emerging markets, and increased innovation in clothing, rather than just footwear, which links to one of their weaknesses - the fact that they mainly focus on footwear. After the internal analysis, the report looks at the external PESTLE, and their competitors Adidas, Puma and Under Armour.

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company background

The report then looks at the current trends in the sportswear and streetwear market which is where our issues are found. Although Nike is an extremely strong brand, their advertising doesn’t focus on casual wear, despite primary research indicating that most consumers do not view them as a uniquely sportswear brand. This could also be the reason that a lot of participants chose to buy their Nike products from external retailers over the official Nike website.

internal analysis

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external analysis

The suggested solution to this dilemma is an influencer marketing campaign to bring more attention to the Nike Sportswear account and recognition of Nike as a valuable figure in the streetwear and athleisure markets.

The campaign will be targeted at millenials who are fashion forward and social media savvy - fully discussed in our target customer analysis. The report uses the PESO model to integrate the strategy. The report finishes by looking at the aims and objectives of the strategy, and the KPIs to measure the success of it.

customer analysis

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8-9

The campaign

appendices

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references

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COMPANY BACKGROUND Organisation Name: Nike, Inc. (founded by Knight and Bowerman in 1964) included Converse, Hurley and Jordans Type of organisation: Global Divisional Organisation Turnover: $39.1 billion revenue in 2019 (Forbes,2020) Number of Employees: 73,100 employees, Headquarters and Main location: main location is in North America along with their headquarters in Beavertown, Oregon.

Locations & branch network: They have 1,152 stores worldwide, 45 offices outside of the US and 170 countries of operation.

Products: footwear, apparel, sports equipment Stakeholders: Celebrities, their customers, communities, their interest groups, suppliers and stockists. (Kissinger, 2017) Customer base: B2C (15-45) and B2B (external retailers) Main competitors: Adidas, Puma, Asics, Under Armour, Fila, New balance, Skechers (Whatcompetitors, 2020)

1990 Air Jordan campiagn

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INTERNAL ANALYSIS

STRENGTHS

WEAKNESSES

Strong social media presence; Nike has multiple accounts across all social media platforms. All of their accounts have huge amounts of followers.

External Retailers: 60- 70% of their product is sold to retailers meaning they have less control over their products. (Business Strategy Hub, 2020)

Successful marketing campaigns; Nike is recognised for their strong marketing campaigns, especially through their use of digital marketing.

They have mainly focused on footwear; Nike has great recognition in the footwear market, but has less acknowledgment in other markets i.e. apparel.

OPPORTUNITIES

THREATS

Increased innovation; Nike is known for their innovation in athletic footwear technology - they could use this to move to innovation in athleisure

There is fierce competition in the sports apparel market: brands such as adidas, puma and under armour fighting to be the top of the sportswear market.

Emerging Markets; there has been a surge in wealth and disposable income across the globe, for example in South East Asia, which provides the opportunity for Nike to excel in new markets

Fierce competition in the digital marketing world: sportswear brands are spending more on aggressive marketing campaigns which could out shine Nike (Forbes, 2019)

Competitive advantage: In relation to Porter’s competitive advantage model Nike would fall under differentiation leadership, due to their innovation products sold worldwide.

Unique Selling Point: The thing that makes Nike special is that they have retained their heritage - continuing to create genuine sportswear for professionals. They have also perfected the idea of selling a story, creating the dream of becoming an athlete.

Instagram post on @Nike (2015)

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EXTERNAL ANALYSIS

PESTL* Analysis

Competitor Analysis

P

US policies are particularly habitable for businesses, making it easy for Nike to function and expand. (T.Bush, 2016)

E

Cov’19 has led to a huge economical crisis; leading to a lack of disposable income for consumers, which could be extremely damaging to the global fashion market (Just-style, 2020)

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Over the past quinquennial, consumers have been more interested in health and wellness, with this came a desire for fashionable and trendy athleticwear (Creative, 2019).

T

With sustainability becoming ever more important within fashion, more brands are using new technologies to ensure than their products are better for the environment. (Bustle, 2020)

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In recent years, many countries have made strict data protection laws in order to stop consumer data being stolen or used without their knowledge.

(DLA Piper, 2019)

Current Trends According to Edited (2020) key trends in ‘Activewear’ are: ‘Nostalgic streetwear, yoga apparel and sustainable sneakers’ According to a survey of 82 people (Dennis. O, 2020) key trends in ‘Streetwear’ are: ‘Sneakers, designer collaborations, sports brands and retro styles.’

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TARGET CUSTOMER ANALYSIS

Psychographic Fashion Forward Social media Savvy Trend follower Brand loyalty

Geographic Yahoo News, 2019

linkedin, 2020

Can be found across the globe (most commonly in Europe, North American and China) Most commonly situated in urban areas (cities or towns)

Behavioural

instagrammernews, 2019

Pinterest, 2019

Will happily spend more on good quality items Will happily spend more on items from a trusted brand Are more likely to purchase product that have been endorsed by influencers and celebrities Feel that the way they dress is a symbol of uniqueness and individuality

Demographic Millennials and older gen Z All genders Belong in B - C2 of the NRS social grading system Tend to have high education to some degree Tend to have Junior or entry level jobs, or working in hospitality and retail.

Business insider, 2019

socialbakers, 2019 instagram logo, 2020

tiktok logo, 2020

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Social Media Analysis A reason why we have chosen to target millenials in this market is that they are most likely to have an interest in social media and influencers. In a survey of 13-60 year olds, 66% of ‘avid social media users’ and 60% of those who followed influencers were millennials (Dennis. O, 2020). Globally - this group are social media savvy, and particularly interested in one social media platform which is massively on the rise,Tiktok, which has 800 million users across the globe.

This segment is seen as a lot more likely to buy content and support brands who indulge influencer and KOL marketing - with UK and Chinese consumers being reliant on KOL’s and influencer opinions. They look to social media to find new products and hobbies, as well as for sharing memories with friends and family (post beyond, 2019). They also tend to respond better to peer to peer recommendations and reviews, rather than traditional advertising.

THE CAMPAIGN

Campaign rationale Nike can use market penetration in order to acquire new customers. Despite having many social media accounts - their content is mainly focused on athleticism and sport, with little focusing on the highly important markets of street wear and athleisure. A survey by the writer showed that 35% of participants didn’t feel as though Nikes social and digital campaigns were reflective of how they use the brand - with 45% feeling that they should be more casualwear focused. This could be the reason why a large majority of participants (60%) prefer to buy from retailers than the official Nike website.

Control Tactics

According to a report by Econsultancy (2018) ‘61% of 18- to 34-year-old consumers “have at some point been swayed in their decision-making by digital influencers.”’ In order to boost sales and their direct impact on the casualwear world, Nike should consider using omni-channel, influencer marketing strategies, pushing their product specifically towards millenials within this market. This should include things such as influencer takeovers, sponsored posts and events to interact with the market globally.

The campaign should be pushed through the ‘Nike Sportswear’ accounts, which focus on the casual side, to gain more recognition and followers.

Integration Nike will be paying influencers to produce content for the Nike Sportswear accounts and promoting this on their pages (Paid/Owned). They will also offer gifts and benefits to brand ambassadors to post on their own accounts and tagging the Nike sportswear account (Paid/Earned). Nike will host an influencer and press gifting suit - hosted by a mega influencer, which will gain valuable social media and press coverage for Nike Sportswear - asking attendees to tag the account on their social media posts (Shared/Earned). This strategy focuses on the Reach stage of the RACE model.

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These metrics will be implemented in line with the campaign timeline - this will help Nike to measure the success of their influencer campaigns, and make changes accordingly to improve the campaign. Consistenly measuirng this social and digital campaign will ensure the success of the campaign.

APPENDICES In order to gain some primary research, a survey was conducted asking 18 questions about how participants see and use the brand Nike and how they react to influencer marketing. 82 people between the ages of 13- 57 responded, which helped to chose the target customer, as well as make decisions about how Nike should change. Here are the results.

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APPENDICES

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REFERENCES Matera, A., 2020. Lululemon, Old Navy, Adidas & Every Brand Giving Back For Earth Day. [online] Bustle. Available at: <https://www.bustle.com/p/23-brands-celebrating-earth-day-sustainability-in-fashion-22829289> [Accessed 30 April 2020].

Adidas-group. 2012. [online] Available at: <https://www.adidas-group.com/media/filer_public/2013/07/31/adidas_gb_2012_en_booklet_en.pdf> [Accessed 30 April 2020].

Pinterest. 2020. Athleisure: Sport Outfit. | Athleisure Fashion, Fashion, Sport Outfits. [online] Available at: <https://www.pinterest.co.uk/pin/830210512528464059/> [Accessed 1 May 2020].

Media.corporate-ir.net. n.d. Global - Nike Inc. A Growth Company. [online] Available at: <https://media.corporate-ir.net/media_files/IROL/10/100529/nike-gs09/global.html> [Accessed 30 April 2020].

DLA Piper. 2019. Data Privacy Law: The Top Global Developments In 2018 And What 2019 May Bring | Insights | DLA Piper Global Law Firm. [online] Available at: <https:// www.dlapiper.com/en/us/insights/publications/2019/02/data-privacy-law-2018-2019/> [Accessed 30 April 2020].

O’Connell, L., 2020. Under Armour: Net Revenue Worldwide 2019 | Statista. [online] Statista. Available at: <https://www.statista.com/statistics/259174/net-sales-of-underarmour-worldwide/> [Accessed 30 April 2020].

Econsultancy. 2018. Influencer Marketing 2020. [online] Available at: <https://econsultancy.com/reports/influencer-marketing-2020/> [Accessed 30 April 2020].

PUMA SE. 2020. PUMA - Our Mission. [online] Available at: <https://about.puma.com/en/ this-is-puma/our-mission> [Accessed 30 April 2020].

Instagrammer News. 2020. HYPEBEAST- (Hypebeastinstagram)#Hypebeaststyle: Ready For War. ? Photo: @Nstaytler / @Timmyvanilli73544 - Hypebeast. [online] Available at: <https://instagrammernews.com/detail/1550283992249532324> [Accessed 1 May 2020].

Jackiewicz, P., 2020. The Sportswear Industry: An Analysis Of The Athletic Apparel Market. [online] Creatitive | Sports Digital Branding & Marketing Agency. Available at: <https://creatitive.com/sports-industry-analysis-2019/> [Accessed 30 April 2020].

Richard, B., 2015. The 30 Best Michael Jordan Nike Posters Of All-Time. [online] Sole Collector. Available at: <https://solecollector.com/news/2015/06/michael-jordan-nike-air-jordan-posters> [Accessed 30 April 2020].

Report.puma-annual-report.com. 2020. Targets And Strategy – PUMA Annual Report. [online] Available at: <http://report.puma-annual-report.com/en/group-management-report/ puma-group-essential-information/targets-and-strategy/> [Accessed 30 April 2020].

Just-style.com. 2020. Timeline – How Coronavirus Is Impacting The Global Apparel Industry – FREE TO READ. [online] Available at: <https://www.just-style.com/news/timeline-how-coronavirus-is-impacting-the-global-apparel-industry-free-to-read_id138313. aspx> [Accessed 30 April 2020].

Socialbakers.com. 2020. Top 11 Fashion Instagram Influencers You Need To Know. [online] Available at: <https://www.socialbakers.com/blog/11-fashion-instagram-influencers-to-know> [Accessed 1 May 2020].

Kissinger, D., 2017. Nike Inc. Stakeholders: A CSR Analysis - Panmore Institute. [online] Panmore Institute. Available at: <http://panmore.com/nike-inc-stakeholders-csr-analysis> [Accessed 30 April 2020].

Team, T., 2019. Adidas Is Giving Nike A Run For Its Money. [online] Forbes. Available at: <https://www.forbes.com/sites/greatspeculations/2019/08/06/adidas-is-giving-nike-arun-for-its-money/#2a2f44132e00> [Accessed 30 April 2020].

Koptyug, E., 2020. Puma Revenue | Statista. [online] Statista. Available at: <https:// www.statista.com/statistics/412797/puma-global-revenue/> [Accessed 30 April 2020].

U.osu.edu. n.d. Manufacturing Process | Nikeshoes. [online] Available at: <https://u.osu. edu/nikeshoes/manufacturing-process/> [Accessed 30 April 2020].

Marci, K., 2020. Activewear Industry Analysis | EDITED | The Retail Data Platform. [online] EDITED. Available at: <https://edited.com/resources/activewear-market-analysis/> [Accessed 30 April 2020].

Under Armour. 2020. About Under Armour. [online] Available at: <https://www.underarmour.co.uk/en-gb/about-under-armour.html> [Accessed 30 April 2020].

What Competitors. 2020. TOP 10 NIKE COMPETITORS In 2020 - What Competitors. [online] Available at: <https://whatcompetitors.com/nike/> [Accessed 30 April 2020].

News.yahoo.com. 2020. Yahoo Is Now A Part Of Verizon Media. [online] Available at: <https://news.yahoo.com/amphtml/apos-not-just-older-workers-104700527.html> [Accessed 1 May 2020].

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PART TWO: CREATIVE PORTFOLIO INFLUENCER MARKETING STRATEGY #THESTREETWEARSPECIAL

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THE STRATEGY THE IDEA EXAMPLES OF INFLUENCER CONTENT

We will be using a three month intensive influencer marketing strategy in order to boost followers and sales in the street style and athleisure market. Our focus will be on three main platforms, Instagram, Youtube and Tiktok, and will build up to an influencer event.

We will send gifting to a mixture of micro and mega influencers and celebrities for them to produce content under the hashtag ‘thestreetspecial’, and for the Nike Sportswear account. Micro influencers will be used as brand ambassadors, and will be given benefits such as discounts and free goodies to promote us, whereas mega influencers and celebrities will be paid.

Our event will be a press and influencer party, hosted by British rapper Dave, showcasing iconic Nike streetwear styles, selected by the artist. We will have a two week social media countdown prior to the event across all social media platforms.

It is important to have this combination of micro, mega and celebrity influencers, as they all have different abilities.

For example, micro influencers tend to have much higher levels of engagement, despite not having as many followers - this is important as users will feel a more genuine trust and connection with these influencers, and are more likely to listen to their recommendations. Mega influencers and celebrities are most useful for their reach - meaning a greater number of people will be viewing their posts, and therefore our platforms.

Megan Kholer Fitness, 2020

The solewomens, 2020

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ASOS, 2020

THE INFLUENCERS

TammyHembrow, 2020 Oceanwisdom, 2020 uhmlady, 2020 Henson, 2020

adrianneho, 2020

Wuzg00d, 2020

Santandave, 2020

cea.rs, 2020 Terencesambo, 2020

Littlesimz, 2020

Piakristencruz, 2020 gallucks, 2020 Jordonwifi, 2020

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Lex_thunder, 2020

AJtracey, 2020

THE TIMELINE

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REFERENCES

2020. [image] Available at: <https://www.instagram.com/p/ B7bs_wBpGa_/> [Accessed 5 May 2020].

Ras, C., 2020. [image] Available at: <https://www.instagram.com/p/B50mQa6AxEd/> [Accessed 5 May 2020].

2020. [image] Available at: <https://www.instagram.com/p/ B7bs_wBpGa_/> [Accessed 5 May 2020].

Sambo, T., 2020. [image] Available at: <https://www.instagram.com/p/B9z3OQcHMk2/> [Accessed 5 May 2020].

ASOS, 2020. Getting #Redcarpetready With @Hollyh In #Asos #Britawards. [image] Available at: <https://www.tiktok. com/@asos?lang=en> [Accessed 6 May 2020].

Simz, L., 2020. [image] Available at: <https://www.instagram.com/p/B5xqj0dlLon/> [Accessed 5 May 2020].

Sole Womens, 2020. ARNING! This Is Your Last Chance To Get 25% Off At Nike Until 6Pm Today Using Code ‘SPRING25’! . [image] Available at: <https://www.instagram.com/p/B_ous-FjP10/> [Accessed 6 May 2020].

Cruz, P., 2020. [image] Available at: <https://www.instagram.com/p/B-l9wC9noCl/> [Accessed 5 May 2020]. gallucks, 2020. [image] Available at: <https://www.instagram.com/p/B_c6RxJpfJm/> [Accessed 5 May 2020].

Thunder, L., 2020. [image] Available at: <https://www.instagram.com/p/B_QP4MbHswM/> [Accessed 5 May 2020].

Hembrow, T., 2020. [image] Available at: <https://www.instagram.com/p/B_kEYdpHD5F/> [Accessed 5 May 2020].

Tracey, A., 2020. [image] Available at: <https://www.instagram.com/p/B_sncUOgwcJ/> [Accessed 5 May 2020].

Henson, 2020. [image] Available at: <https://www.instagram.com/p/B9EwooKp-4B/> [Accessed 5 May 2020].

Wifi, J., 2020. [image] Available at: <https://www.instagram.com/p/B_r9KudnM15/> [Accessed 5 May 2020].

Ho, A., 2020. [image] Available at: <https://www.instagram.com/p/B9uEYubne7W/> [Accessed 5 May 2020].

Wisdom, O., 2020. [image] Available at: <https://www.instagram.com/p/B65uMhdlpCl/> [Accessed 5 May 2020].

Kholer, M., 2020. NIKE Haul + Try On | SPRING 2020 | Macy’s. [image] Available at: <https://www.youtube.com/ watch?v=P1M-oY6GQYs> [Accessed 6 May 2020].

WuzG00d, 2020. [image] Available at: <https://www.instagram.com/p/B_p8NFyJnTq/> [Accessed 5 May 2020].

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