Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 70m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. . 4. to incorporate the statistic into your presentation at any time. oing this well requires you to understand exactly what your audiences goals or pain points are and what they want to know. Bloomberg Business Week noted that as of 2012, the retailer spent 13.5 percent of total company revenue on these marketing efforts. Word of mouth and social media can be low-cost alternatives, but that will not be enough in emerging markets or to promote new product launches. If you are selling furniture, for example, let customers think of them with the feeling of elegance; minimalism; nature-friendly or industrial. Customers can have positive or negative conversations about the brand, however, Nike knows social media conversations like those are one of the purest kinds of customers conversation and feedback. Nike's marketing strategy. Get full access to all features within our Business Solutions. She's hyped Windows 95, Diet Coke, Smartwater, and more recently, Aveeno. The former Texas standout famously turned down a $70 million deal from Adidas to sign with the Swoosh. Nikes annual revenue still grows steadily year after year. (Statista). A shoe must be three things, It must be light, comfortable and its got to go the distance. - Bill Bowerman, co-founder of Nike. (Statista). 6. However, like many brands, it has both strengths and weaknesses, and faces obstacles it must rise above in order to maintain its success. (Statista). Tactics that employed in Nikes social media marketing strategy are: When you can sell the stories, values and benefits, you might not need to be bothered by the thought of competing with your competitors in terms of price. Jennifer Aniston rose to fame as a cast member of "Friends" more than 20 years ago, but she's still one of the highest-grossing actresses in the country. On October 15, Nike created a revolutionary new basketball shoe, a voice read as Jordan dribbled a basketball. has always been Jordans biggest backer, both financially and marketing-wise. She has the Career Grand Slam: Australian Open, French Open, and US Open, along with a silver in the Olympics. After the Greek goddess of speed, strength, and victory, the name is also known as Winged Goddess. Long live the King. Actual payments under some contracts may also be lower as these contracts include provisions for reduced payments if athletic performance declines in future periods. As jogging got more popular, people wanted more jogging shoes. Nike has 75,400 employees worldwide. Position products carefully. The celebrity athlete is well-known and uses his or her fame to help a company sell or enhance the image of a company, products, or brands (Brooks & Harris, . The New York Times reported the soda giant was thinking big far beyond TV or print ads and was aiming to "get into the Beyonce business.". 2021. If you can name one or a few characteristics of your products that they can be used for differentiated from others on the market, you are halfway to success. Now lets see what marketing strategy Nike uses to create so much buzz around the brand and continue growing despite fierce competition from other sports industry players. Currently, you are using a shared account. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Show sources information A marketing strategy should be packed with the best practices and approaches. Nike spent $1.47 billion on marketing in the United States. In 2016, the Daily Mail reported that then-18-year-old and very rich Kylie Jenner signed a $1 million deal to serve as a brand ambassador for Puma . Even your grandpa probably does. RELATED:Here's How Tennis Legend Rafael Nadal Spends His $200 Million Fortune, A post shared by Kobe Bryant (@kobebryant). Then, you can be the hero to answer and give solutions when the audiences need. Furthermore, it isnt much of a complex strategy at all. So before we begin digging into Nikes marketing strategy and tactics, let me share a bit of history with you: Nike, Inc., formerly Blue Ribbon Sports from 1964 to 1978, is an American sportswear company headquartered in Oregon. 50. Nikes owners did declare the uniqueness of the brand shoes with three points, by which customers can easily decide whether to buy Nike shoes or find another brand. Quality and style are a winning combination for Nike across the board. dollars)." Brand value of the sports company Nike worldwide from 2016 to 2022 (in million U.S. dollars) [Graph]. Nike has recently made drastic moves to sell directly to consumers, opening its own retail storefronts and even selling directly online. Associations with top athletes like Roger Federer, Michael Jordan, Carmello Anthony and Cristiano Ronaldo allow the company to enjoy a high level of prestige. This Sunday explores MJ as a global endorsement phenomenon, with ad slogans like Its Gotta Be The Shoes and Be Like Mike.. Going into the 21st century, Nike has retail outlets and product distributors in more than 170 countries, while its logo - a checkmark with a curve called the swoosh - is recognized throughout the world. Use Ask Statista Research Service. "Global revenue of Adidas, Nike and Puma from 2006 to 2022 (in billion euros)." Even if he never dabbled in the world of celebrity endorsement, . While many choose this brand for normal use, others select it as a fashion statement to be kept in pristine condition and promptly replaced or upgraded over time. The sportswear giant has paid him an estimated $1.3 billion by Forbes count since it signed its first deal with Jordan in 1984, and it has helped make him a cultural icon. As of 2022, the Nike brand was . Economists Christopher R. Knittel and Victor Stango found that Woods' portfolio of sponsors lost around 2 percent of their market value 10 to 15 trading days after the scandal. This helps increase their profit margins, as well as the development of a trade and distribution empire sure to keep every retailer well-stocked to meet increasing demand. 2022's report can be found here (January 31, 2022). Kylie Jenner is the highest-paid celebrity of 2021 who earned around $590 million. Nike made a $100 million, 10-year deal with the hustler, which earned the sports star. How Nike distinguishes themselves from other shoe brands depends heavily on the marketing strategy. Impressive stats, right? It relies on inexpensive labor to keep its operating costs down, but fair treatment of its employees across the globe remains a blemish on its record. Accessed May 01, 2023. https://www.statista.com/statistics/269599/net-sales-of-adidas-and-puma-worldwide/, Statista. As sports players lived their life in front of cameras, Nike took advantage and offered staggering amounts of money for endorsement deals and advertisements. (March 9, 2023). Show publisher information Nikes market cap of $136 billion is three times the size of Adidas. (Statista). Are email newsletters suitable for your customers? Any downturn in the market typically results in consumers cutting back on luxuries, and Nike is likely at the top of the list for many buyers. January 31, 2022. Please do not hesitate to contact me. Brands associated with Woods, however, did not see long-term damage from the then-disgraced golfer. Magento Commerce or Adobe Commerce is a registered trademark by Adobe. SEMRush shows that over 60M users land on Nikes website monthly, spending almost 7 minutes on the site and browsing almost 5 pages. The first retail outlet was opened in 1966 and, in 1972, launched the Nike brand shoe. PUMA figures come from the company's yearly group management report. A fresh take on sports: the biggest news and most entertaining lists. "Nike's first signature athlete was welterweight wrestler, Wayne Wells. The Swoosh was even more dominant in the lifestyle basketball category, with a 96% share. 2. Nikewomen is a particular channel for women on Instagram. (Statista). Christina Gough , Nov 17, 2022. The Beaverton, Oregon-based company has partnerships with many of the most talented and famous athletes in the world. Nike has done that since the beginning. Which social networks are they highly active on? The Nike-related topics are still popular searched topics on Youtube because of the creativity of new influencers as well as innovative products of Nike. (Statista). 1. Another feature that improves the eCommerce shopping experience of the website is the product filter. 2021). Its customer base is very strong. Carving out even a small percentage of growth could mean millions or even billions in sales, so Nike cannot simply rest on its laurels. Lets see what sort of marketing strategy Nike used to achieve and maintain their status of a markets dominant player. However, high costs and problematic working conditions could cause issues for the company if they refuse to change with the times. Just focus on delivering values to your customers life by using your products. 3. The signing of basketball player Michael Jordan in 1984, with his subsequent promotion of Nike over the course of his career, with Spike Lee as Mars Blackmon, proved to be one of the biggest boosts . Manufacturing costs typically stay low. MJs first shoe with Nike was banned by the NBA because it didnt meet the the leagues color standards. (BStrategyHub). Many companies are looking overseas to other markets to increase their revenues. Most notable endorsement: Diet Coke - $26 million. However, in 2014, Nike celebrated the retirement season of the Yankees . Only time will tell if continued reliance on poorly-paid employees and adverse (and potentially unsafe) working conditions will be enough to turn most consumers away, decreasing the potential revenue and growth over time. Nike is reliant on third-party retailers to get its products into the hands of consumers. But don't feel too bad for the guy-his current combined Nike and Miami deals are earning him $34 million per year or about $5 million per foot of height on his six foot, eight inch frame. Sharapova had signed an 8-year Nike deal worth $70 million in 2010, which earned her $8.75 million a year. These deals have earned players more money outside the sports, with the magic word being sports endorsements. It has been engaged in patent and trademark disputes. In an inspiring blog on Forbes, Celinne Da Costa - a story architect, has emphasized three reasons to use storytelling skills in Marketing strategy: Back in Nikes early days, when Bill Bowerman started the idea of selling more shoes to the market, he knew that he had to tell a story. In 2017, Nikes loyalty program had 100+ million members who spent almost three times more than guest buyers on the website. As Nike moves toward selling directly to consumers, it is also shifting slightly away from a heavier presence in other retailers. For Nike, it is the smart product recommendations that make a consumer satisfied with their experience. The ideal entry-level account for individual users. For example, Nike recently celebrated the anniversary of their famous Just Do It tagline with an advertisement featuring a voiceover by movie star Bradley Cooper and cameos from a variety of famous athletes, which gained more than four million views during the first week it was online. statistic alerts) please log in with your personal account. 9 Derek Jeter. There were 98 standalone Converse stores in the United States in 2020. The amount represents approximate amounts of base compensation and minimum guaranteed royalty fees Nike is obligated to pay athlete, public figure, sport team and league endorsers of their products. (Statista). For Nike, the segmentation is professional athletes, sportsmen or people who are going to join the sporty or healthy lifestyle. Tiger Woods & Nike. This allows it to more tightly control distribution and pricing and also creates an air of exclusivity and scarcity that could continue to contribute to its valuable brand perception. If this all seems like a lot of information for you, thats because it is. When members use the apps, their engagement score is reflected in the main Nike rewards app. You can apply this feature to your eCommerce website as well with an app and keep visitors on your site for longer. Nike has also sponsored many other successful track and field athletes over the years, such as Carl Lewis, Jackie Joyner-Kersee and Sebastian Coe. When talking about marketing strategy, the ecommerce shopping experience is a must. 2. How to Get Your Car Sponsored Professionally. 2. Nike stores and other retailers spotlight its ability to offer something to every customer in the market for performance gear, and its lines continue to expand based on consumer demand. Professional athletes have arguably the best career in the world as their impact goes beyond the field of sports. In, Statista. (July 20, 2021). 5. Nike understood the reason and meaning of storytelling very early and has constantly followed this strategy to cultivate customer loyalty and grow brand awareness. However, behind all of them, there is one element that plays a fundamental role, it is product positioning. Overall, though, Nike is a strong company that must work hard to remain strong in the future. (Reuters). Lets see what methods they put into practice. Please do not hesitate to contact me. Nike sponsorships allow the company to showcase product attributes on a platform that promises to draw attention to the brand. celebrity endorsements are not a new practice, the use of athletes as endorsers is still relatively . (Statista). In a market with a very high proliferation of local, regional and international . That is just the history of Nike; how about the marketing performance that the company has? 3. The firsts qualities of Nike that people can think of are being lightweight, comfortable, durable, and supportive. But, just like any effective marketing strategy, it requires a company to be consistent in its efforts and provide customers with real and relevant values. Accessed May 01, 2023. https://www.statista.com/statistics/961728/nike-endorsement-contracts-value/, Nike. George's latest signature shoe with . How much does Nike spend a year on endorsements? While Nike helped make Jordan a billionairehis current net worth is $2.1 billionhe paved the way for Nike to leave Adidas and other competitors in the dust. Distribute storytelling across social media channels. That's mainly because of her successful endorsement career. She has endorsed Apple, CoverGirl, Keds, and Coca-Cola. Nike paid the fine and seized the moment with an iconic 1984 commercial. It can improve working conditions. 6. Reputed as the most consistent player in the NBA, the late legendary basketball player Kobe Bryant was the greatest Lakers player the world had witnessed. Nike made a $100 million, 10-year deal with the hustler, which earned the sports star. Nike has struggled to maintain an environmentally-conscious brand image. (Statista). Endorsing celebrities to use Nike products and wear the brands clothing helps to enhance the brand image. This means that Jordan brand incorporates more value . Statista. MJs paychecks climbed as the Jordan Brand got bigger. 1. Bill was a coach at the University of Oregon and decided to start a business with his former student Phil Knight. Nike had signed a $90 million deal with James when he was out of high school; however, the basketball star now has a lifetime deal worth $1 billion. Global revenue of Adidas, Nike and Puma from 2006 to 2022 (in billion euros) [Graph]. The Jordan Brand had revenue of $3.1 billion in the fiscal year ending May 2019only 8% of company revenue but likely . Nike generated $3.6 billion in 2020 revenue from its Jordan footwear line alone. Nike is the master of masters in storytelling, you cant deny. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 70m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. Kylie Jenner: Puma, $1 Million. It can sell directly to customers more. (Statista). Michael Jordan has been one of the biggest endorser with Air Jordan's introduced back in 1984. His net worth in 2020 is estimated at $25 million. North America comprises 36% of its market. A post shared by LeBron James (@kingjames). A No. Quick hiring process. The King Of Clay has certainly made a list with his $10 million a year contract with Nike, including royalties. Who was Nike's first endorsement? Lebron James is currently one of the highest-paid athletes in basketball with endorsement deals with top brands such as McDonalds, Samsung, and Coca-Cola. Nike introduction. In, Brand Finance. The two women on the videos shared about their works and ambition to revolutionize fitness through community. It has a number of celebrity endorsements. Nike has always put an emphasis on the imagery of their marketing strategy. Chart. Nearly 65% of Nike products are sold at third-party retailers. Nike is no exception to this, and cracking down on counterfeiters is a never-ending battle. Jennifer Aniston. Dollars). Nikes $40 billion in revenue over the last 12 months was 60% more than Adidas and 43 times what it was before it added Jordan. Nikes stock value grew 183% from 2017 to 2021. Home Business Nike SWOT Analysis (2021). "As athletes, we're always going to struggle with . Do this well enough, and you can even turn readers into passionate brand loyal customers. It is very dependent on the U.S. market. While everyone pays handsomely to own a pair of Jordans or customized gear, Nike also increases its popularity through the swoosh on the players' jerseys. 6. Being a big brand in a multitude of industries, Nike has collaborated with many celebrities and influencers. Whether you are starting your first company or you are a dedicated entrepreneur diving into a new venture, Bizfluent is here to equip you with the tactics, tools and information to establish and run your ventures. Revenue of the cosmetic & beauty industry in the U.S. 2002-2022, Value of the leading global textile exporters in 2021, by country, Vegetable oils: global consumption 2013/14 to 2022/23, by oil type, Cocoa bean production worldwide 2020/2021-2022/2023, by country, World coffee per capita consumption: major consumer countries 2015, Cosmetics industry in the U.S. - statistics & facts, Research expert covering shopping behavior, sports and leisure retail, and the subscriptions and direct selling industry, Profit from additional features with an Employee Account. The company renamed itself Nike, Inc., in 1978 and went public in 1974. The only woman on the list, Maria Sharapova, was a tennis phenomenon during her active years. ", Nike, Nike's endorsement contracts commitments worldwide from 2021 to 2026 (in million U.S. dollars) Statista, https://www.statista.com/statistics/961728/nike-endorsement-contracts-value/ (last visited May 01, 2023), Nike's endorsement contracts commitments worldwide from 2021 to 2026 (in million U.S. dollars) [Graph], Nike, July 20, 2021. Jordans agent, David Falk, who coined the phrase Air Jordan, had other ideas. Nike lost 5% of its global revenue between 2019 and 2020. Value of Nike's endorsement contracts worldwide 2021-2026. Few stars have risen higher than Beyonce and in 2012, her global celebrity translated into a multi-year, $50 million contract with Pepsi. References Aaker, D . It currently only owns one other major brand: Converse. The former NBA player might be retired, but thanks to his deal with Nike, going strong since 1984, he keeps bringing in the big bucks. Jordan wore Converse sneakers at the University of North Carolina, and his first choice was to join Adidas after the Bulls drafted him. When & How to send a Follow-up email? Adidas figures come from the company's annual report. Any overall decrease in consumer spending could cause Nike to lose out on significant portions of revenue, and since its products are mostly sold at premium prices already, this high-end status could become problematic if spending drops for extended periods of time. Lets explore a full analysis of the strengths, weaknesses, opportunities, and threats facing this company. Use Ask Statista Research Service. Statista. ", Statista, Global revenue of Adidas, Nike and Puma from 2006 to 2022 (in billion euros) Statista, https://www.statista.com/statistics/269599/net-sales-of-adidas-and-puma-worldwide/ (last visited May 01, 2023), Global revenue of Adidas, Nike and Puma from 2006 to 2022 (in billion euros) [Graph], Statista, March 9, 2023. (Vox). If theres just one thing you need to remember from this post, it is the idea of creating marketing content that spreads instead of just for selling. A paid subscription is required for full access. Statista. Here are the steps: Your audience is on the Internet for a reason: theyre searching for answers to questions. The benefits of the loyalty program includes:exclusive products, priority access to tickets to sporting events, early access to product launches, rewards for being active through their apps, expert advice on training and exercise,, special offers on birthdays and, even better, free delivery. Counterfeits and copycats remain a threat. (New York Times). She has a Bachelor of Arts in communications from the University of Pittsburgh and an MBA from Robert Morris University. Nike has mastered the art of producing quality products at a relatively low cost. NIKE is continually being targeted my human rights committees but despite this they are able to maintain a high profile due to its celebrity endorsements from celebrities such as Michael Jordan and Tiger Woods. The Beaverton, Oregon-based company has partnerships with many of the most talented and famous athletes in the world. Everyone knows Nike. . Adidas was 50% larger by revenue. Shoppers become a member by signing up through the Nike website or any of their apps; the Nike app, Nike Training Club, Nike Run Club, and SNKRS. Brand Finance. Although it does offer a diverse line of products in athletic and performance wear, it is most well-known for its footwear specifically its sneakers. Get full access to all features within our Business Solutions. As a global powerhouse in athletic footwear and apparel, Nike knows their consumers are picky about what their products can do. On all pages of the website, you can see stunning images of the products and models, leading a vibrant lifestyle of an athlete. Get special offers on the latest news from Mageplaza. Check out the following conversation on Twitter, when a customer mentioned Nike on his post: Nike has truly turned Twitter into a place to be heard from its customers. Nike place high value on NBA players as endorsement partners due to their significant influence on fashion and pop culture, which ties into Nike's growing emphasis on lifestyle and culture. 4. Please create an employee account to be able to mark statistics as favorites. Only from $15/hr, With a big catalog of 234+ extensions for your online store. A post shared by Rafa Nadal (@rafaelnadal). Nikes products help customers to trust in themselves, train both their body and mind to overcome the challenges of life. Growing into new markets and expanding their product lines could shore up avenues for future growth, but failure to beat out the competition and address crucial concerns over the brand could cause major issues down the road. 4. [Online]. Beyond simple marketing and advertising, Nike has also remained at the forefront of athletic wear research and development, positioning itself as a reliable brand for quality as well. 4. Seventy-seven percent of NBA players wore Nike or Jordan shoes during the 2019-20 season, according to shoe database site Baller Shoes DB. To use individual functions (e.g., mark statistics as favourites, set It offers a unique and fully customizable buying experience that cant be imitated in a department store, allowing consumers to purchase products that are specific to their tastes and preferences. Reebok, which Adidas bought in 2005, posted lower revenue last year than it did in 1990. Michael Jordan, Lebron James, and Tiger Woods are just a few of the names that helped catapult Nike to buyers' collective consciousness. Nike has utilized affiliate marketing to gain a broad spectrum of sports, fashion, lifestyle topics solely on Youtube. Nike has a clear-cut identity as a sportswear brand, which has been building for a long time with multifaceted marketing strategies. Nike revolutionized sports marketing with Michael Jordan as the brand's muse. Nike's endorsements with LeBron James (NBA), Kevin Durant (NBA) and Cristiano Ronaldo (Football) are valued at $30 million each. For the fact that many customers of Nike are members of the social media network, the brand knew that it had to connect with audiences via social media channels and gain brand recognition as soon as possible. A post shared by Cristiano Ronaldo (@cristiano). Converse remains an immensely popular brand, and further opportunities for acquisition may present themselves over time. #3 Join in customer's social conversations. The vast majority of its sales comes from the United States, and while it continues to diversify its sales portfolio, it must overcome this heavy dependence on American consumers if it hopes to gain a wider foothold across the globe. Lebron James is commonly considered one of the greatest athletes to ever grace the NBA and professional sport with his presence. Access to this and all other statistics on 80,000 topics from, Show sources information He had endorsement deals with Coca-Cola and Nutella, which earned him $31 million per year. 1. With these follow-up emails, customers can shop and check out Nikes events at ease, while being sure that they can find all the necessary information in their inboxes. (Fashionista). I was viewing a pair of running shoes for women, so the recommended products also have the same style and similar colors to the one I clicked on. The best of the best: the portal for top lists & rankings: Strategy and business building for the data-driven economy: Show sources information Once you get the answer to the positioning question, even not easy, all of your marketing tactics will automatically work to affirm the qualities and gain some space in customers minds. Be fearless and just do it with your marketing strategy, like them. Nike eventually offered a five-year deal with base pay of $500,000 per year, triple any other NBA sneaker deal. Counterfeit goods accounted for $461 billion in world trade. (Statista). If you have a chance to take a look at the post, you will see the message that Nike helps to send over is clearly and catchy: self-care. 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