Nike's Portfolio Routines, Brand Digitalization Process

stay

In the new portfolio, we see a Nike that has been insisting and expanding from 2006 to now - Nike+.

In order to welcome the London Olympic Games, Nike launched the "Make it Count" brand campaign in early 2012, first released the news on Twitter, then launched a series of short videos, and then let the famous virus video producers to take virus videos. Nike's series of actions confirmed a series of widely disseminated numbers in recent months.

A few months ago, a magazine's report on Nike's marketing budget was reprinted on the Internet.

It is suggested that Nike is experiencing the biggest marketing pformation since its establishment. In the past three years, Nike's TV and print ads in the US market have been reduced by 40%, and its overall marketing budget has climbed to a record high of 2 billion 400 million US dollars (2010).

At the end of the article, it concludes that the marketing offensive launched from top to bottom and around the popular products has gone for ever. Whether it's a giant star Tiger Woods endorsement, the star signed version of the "Air Force One" (Air Force 1) has been released, and it has been released in the late 1980s by Jackson Bo Knows.

These marketing methods are beginning to be replaced by new marketing activities full of interactive elements.

So what is the way Nike sets out in digital marketing behind the data? In what respects does it give its irreplaceable value? Let's try to find out.

At the end of 2011, Nike launched its Twitter account @Nike on the company level besides its Twitter account of its own brand, and released the first notice on Twitter: the company will launch a large-scale brand activity "Make it Count" in January 19, 2012, and has a heavyweight revolutionary product release.

"Revolutionary products" have lifted people's appetite, and fans have speculated that Nike's most revolutionary product line is Nike+, which may be related to its products.

As expected, Nike launched in January 19th the newest member of the Nike+, Fuelband. The device on the wrist of the athlete can record the energy of running, dancing and swimming.

Meanwhile, Nike, like past star endorsement strategy, invited soccer players Rio Ferdinand and long-distance runner Mo Farah to participate in a series of short videos and circulated on the Internet.

In addition, Nike also invited Casey Neistat, which was famous for its viral video, to make videos on the theme of "Life is a sport.Make it count". Neistat took the money to travel around the world. Finally, he concluded in the video that this is what I am "Count".

Casey's Rogue video has made a hit and hits millions of hits on YouTube.

In addition to releasing the new digital product Fuelband, Nike has also added its star marketing results, Nike+ community, in another way: it has created App auctions on Facebook.

The so-called auction is that Nike brings out the shoes of its shoes for users to bid for them.

This "price" is to use your own accumulation of sports kilometers on the Nike+, which means that you want to spend more money to auction, then go for a run.

From this latest action, "Make it Count", we seem to have seen the new ways of Nike marketing activities nowadays: Facebook, Twitter, Nike+ and video.

As a matter of fact, this trend has already been revealed as early as 2010 in the marketing method of the Nike World Cup in South Africa. Its massive "Write the Future" campaign is not played on TV, but is played on its Facebook homepage. Large LED screens are installed on skyscrapers up to 138 meters in Johannesburg, South Africa, where Nike fans are selected to send personal messages to Nike signers through Nike football community NikeFootball.com, Twitter, Facebook and IM.

"We move with consumers."

Trevor Edwards, who joined Nike in 1992, is now vice president and project manager of Nike global brand.

This can directly explain why Nike has cut the TV and plane budget and increased the number of inputs. Nike's target consumer group is a 17 year old teenager who prefers to buy a pair of cool Nike shoes, and they spend most of their time in online communities.

What we want to say is that Nike has shifted its advertising budget to Facebook and Twitter? Nike's new marketing routine is not so simple.

In the new combination of Nike, we see a Nike that has been insisting and expanding from 2006 to now - Nike+.

Back in 2006, engineers at Nike headquarters noticed that almost everyone used the iPod on the campus of University of Oregon. After that, they began to meet with the apple team, and a cross-border cooperation business came into being: Nike+iPod sports suit.

This is a cross-border attempt that proved to be very right.

With this suit, runners can measure their exercise time, pace and energy consumption. They can upload these data to nikeplus.com, a professional runner community, get professional training advice, or share experiences with other runners.

Nike is also aware of the benefits of such a move: building brand intimacy and professionalism by helping runners in sports training; data gathered by online community nikeplus.com players have become valuable information for Nike to analyze consumers; Nike+iPod's price is not cheap, which is a new profit cake.

Some analysts believe that the annual growth rate of 30% of Nike running series is closely related to the annual growth rate of nikeplus membership of 55%.

Therefore, after this attempt, new digital products are emerging, including Nike Sport Band, Nike heart rate detector, and a new Nike GPS application for iPhone users.

{page_break}

More importantly, after the Nike's major marketing activities will join the strength of the Nike+ community.

On the basis of these products, Nike Nike Digital Sport was formally established in 2010. According to Fortune magazine, the goal of the Department is to develop various devices and technologies to help users monitor personal statistics when participating in sports activities.

However, the work of the digital sports department is not limited to the development of hot sports gadgets.

Their work is the core direction of Nike in the digital field: to establish an unprecedented close connection by mastering the data of Nike consumers, tracking consumer demand, creating and maintaining online communities.

From this, we can see the understanding and application of Nike in digital marketing: digital marketing is not equal to digital advertising purchase, Nike's new marketing routine is not from TV advertising to virus video, or print advertisement has become Facebook page display, but with the help of numbers, it completes the upgrading and jumping of the relationship between enterprises and consumers.

It can be said that with the accession and growth of Nike+ products, Nike has obviously positioned itself not only as a sportswear company, but as a "good partner of athletes" in the true sense.

From the provision of professional clothing, shoes, to help athletes plan, supervise implementation, effect feedback, professional guidance, and then help athletes and other partners to establish communication links, Nike has become a full-time "professional partner". This comprehensive value is provided by Nike through digital marketing.

Therefore, we believe that the shift from TV to plane to Facebook and Twitter is a visible change in Nike's marketing strategy. The significance behind this is that the relationship between brand and consumer has been changed by digital. From single dimension product to multi-dimensional service provision, Edward has mentioned more than once in public. Digital media has provided Nike with a new way to establish relations with consumers. This seemingly not new word has been fully reflected in Nike.

As early as the late 90s, Nike launched a congratulatory advertisement in the main website of each market in order to promote its sponsorship of NCAA March Madness.

Then, in 1999, Nike launched the customized NikeiD website. Consumers can choose the color and materials they like, and finally make their own products, and they can get the finished products in a month.

Soon the sales volume on NikeiD broke through 100 million US dollars. In 2007, Nike continued to launch NikeiD Studio to move the customization concept from line to line.

In 2006, the world cup was held in Germany, the hometown of Adidas. As an official sponsor, Adidas enjoyed unique privileges in advertising in all sports venues, and it also obtained the exclusive right to broadcast the world cup in the US ABC broadcasting network and ESPN sports channel.

In the face of Adidas's complete blockade of Nike in traditional media, Nike can only find another way.

At that time, the power of the American Internet community has begun to show. Nike finally co operated with Google to create joga.com for the fans. This community allows fans from 140 countries to talk on the above, talk about their favorite players and teams, watch and download video clips, messages and so on.

Joga is the world's first social networking site for football fans. It is also the first step for Nike to move forward to the concept of "network community" and directly communicate with consumers.

Nike+

In 2006, Nike engineers noticed that almost everyone in University of Oregon campus used iPod, and they met with the apple team, and finally came up with the idea of cross-border cooperation -- using iPod and running shoes to synchronize the user's running data.

Nike adds a sensor to the running shoes, so the servers in iPod can monitor runners' performance on the one hand, and provide digital suggestions on the one hand, such as telling them how far they need to go, playing exclusive music to cheer them up.

Finally, users can upload data to the network. In the nikeplus.com community, they can store and analyze these training data, get professional training suggestions, share experiences with other runners, etc.

This uncommon cross-border cooperation case has brought a whole new idea and perspective to Nike. They have found the point of dialogue with consumers, and the explosive force that Nike produced is determined to continue to dig deeper in this direction. After that, Nike+ series that helps runners to tap their potential fully and continuously emerge, including Nike iPod SportKit sports suit (iPod nano and iPod touch users who like listening to music during exercise), Nike Sport Band (for those who do not listen to music while running), Sport, heart rate detector and application.

At the same time, Nike extended the concept from running series to basketball and football.

In 2010, Nike set up Nike.

"(Nike Digital Sport), the goal of the Department is to develop various devices and technologies to help users monitor personal statistics when participating in sports.

However, the work of the digital sports department is not limited to the development of popular sports gadgets. Their ultimate goal is to establish an unprecedented strong relationship with consumers through the use of digital technology.

The first new product after the establishment of Digital Sport is Nike Fuelband, which is launched with the "Make it Count" campaign. This device can track the effects of training, such as running, dancing and swimming, and give feedback to the players through a free App.

Athletes can also carry out sports plan and data sharing through various digital channels, such as Facebook, Foursquare and Path.