According to Scott Cendrowski, writer-reporter of CNN Money states “The legendary brand blew up its single-slogan approach and drafted a new playbook for the digital era.” (Cendrowski, 2012) In a highly secured area of the company’s 192-acre office space located in Beaverton Ore, Nike’s team of highly qualified engineers, and marketing executives along side Apple ‘s development team have launched a “New Home of Nike Digital Sports” in 2010. (Cendrowski, 2012) These new marketing gadgets consist of a device that lets the user track their own personal performance level, while participating in their sport of choice. Its called the “Nike+ Running Sensor” which is in the form of a watch, but has a sensor installed, you may purchase the sensor alone, or with an IPod connected w/o the watch, and Nike just added another gadget to the list, which is another high tech piece of technology; it’s called the Fuel Band. This gadget allows the user to monitor their energy output level just by wearing this wristband, while doing their activity.
Videos Explaining Nike’s New Digital Era: http://www.fluffylinks.com/nike-digital-marketing
According to Sir Lucas Leftfoot, Nike’s goal is to get closer to their target market by building new and improved lines of communication via Facebook, twitter, and any other social media avenue, he states “Nike has been running its marketing from a different playbook lately. Rather than the ubiquitous TV and Print Ads of the past, a new focus has been placed on digital marketing. That means not only pouring more and more time and effort into Twitter and Facebook but also playing a new priority on the quality of online advertising, making video commercials that provide enough value through entertainment or education that Nike consumers feel compelled to share them across numerous platforms.” (Sir Lucas Leftfoot, 2012) Below is a diagram of Nike’s advertising expense budget.
Cendrowski states, “Its part of a bigger broader effort to shift the bulk of Nike’s marketing efforts into the digital realm, and it marks the biggest change in Beaverton since the great one of ‘Just do it’. Nike’s strategy is to eventually eliminate the use of marketing via television commercials and because TV and Print advertising in the U.S. has dropped by 40% in just three years, with a marketing budget still climbing upward to hit a record $2.4 billion last year. (Cendrowski, 2012) And by changing their marketing techniques for advertising to their consumers, using social media networks, and online advertising to reach a broader rim of consumers who will purchase their products, see figures above. Because of the high cost of advertisement, and the additional staff for their new project, Nike projects their expense budget will continue to grow, but so will their revenue. Their logic is to go to their customers instead of them waiting for the customers to come to them. Cendrowski states “its core customer is a 17-year-old who spends 20% more on shoes than his adult counterpart, has given up television to skip across myriads online communities.” (Cendrowski, 2012) Nike feels that the television campaign is old, but the digital marketing era allows brands to market and communicate with their targeted market at a up, closer and personal level like in the yester years. Fluffy Link article have sum up Nike’s New Digital Marketing focus and new project for the future:
· 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 Sports is a new division the company launched in 2010.
· Its hired scores of new engineers to make technology for digital communities. (Fluffy Links, 2012)
In closing, in my opinion Nike’s New Digital Marketing Era is well off to a good start, and because of their pro qualities of marketing I feel that we have just seen an introduction of the advance level of technology in sports and there is plenty more to come.
References
Cendrowski, S. “Nike’s New Marketing Mojo.” CNN Money. February 13, 2012.
Fluffy Links. “How Nike’s Marketing Revolution has resulted in a 40% reduction in TV and Print
Advertising in the U.S”. Marketing & Advertising Fluff. Best of Fluffy Links, Branding Strategy.
February 19, 2012. http://www.fluffylinks.com/nike-digital-marketing.
Leftfoot, L. “Nike’s New Marketing Strategy- The Shift to Digital (Fortune Mag Article)”. Nike Blog.com
February 13, 2013.
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