the big idea...
Internet channel for Sport equipment sales promotion and Sport brand management : Nike historical example and the coming revolution tool : Nike FuelBand (TM)
Sport potential application
Create a "vertical" proposition to sportsmen based on Internet and community (Web 2.0)
Next steps
Develop the global potential of Internet based on Nike FuelBand.
Empower the potential of Nike FuelBand by implementing new sensors whiches are mandatory to sportsmen (HR/blood pressure wrist sensor, GPS, 3G connection)
Nike historical Marketing strategy
for brand management
What's the big deal behind Nike FuelBand (TM) (launched in the USA since Feb 2012)?
Lets have a look at the evolution of Nike marketing strategy to understand how strategic could be this product for future of Nike offers. I'll be quick and I strongly recommend you to have a deep read at a Fortune article which detailled all about this very interesting topic.
Lets have a look at the evolution of Nike marketing strategy to understand how strategic could be this product for future of Nike offers. I'll be quick and I strongly recommend you to have a deep read at a Fortune article which detailled all about this very interesting topic.
From a shoe manufacture to a Sport brand
How does Nike managed to move from a local distributor of "Tiger" shoes to a 30 billions $ of turnover worldwide company??? Insane !
I am not an expert about corporate strategy but I could underline some very good ideas whiches really boost Nike's sales and market shares.
One of them is the creation of a triangle relation between :
- Product
- Sport talented star (oftenly world #1)
- Consumers
Nike decided to partner with this great NBA legend not only for communication purpose but also for creating a specific shoe model in partnership with Mickael Jordan himself for satisfying all his requirements. Then Nike used all these development in order to fine tune the shoe model to address "normal" consumer.Add to this product development an expensive media plan and a new brand launch; a strong personality and great sport records for Mickael and you result one of the strongest sales success for Nike in all times!
Why ? Because every consumer who is wearing Air Jordans "feels like" embrassing all the values of sport inspired by M. Jordan and truely believe in his/her potential to succeed just like Jordan. "As long as Mickael is hot on the play ground, the shoes sales will be hot too".
And they duplicated this model to other talented and strong personality sportstars for pushing out Adidas from Soccer market (with Ronaldo, Cantona...) or invest new sport segments (Tiger Woods for golf, Roger Federer for tennis)
From segmented approach of sport to individual sport marketing
As per the company started its exponential growth, it needed to expand its potential market size in order to consolidate this growth and transform into a mature sport brand. The objective was to leave the approach of being a shoe maker specialist and to create a sport driven brand.
At this time, they realy increased their partnerships with top talented sportsmen and their products (and brands) portfolios.
Example : Nike Woman (TM) brand has been launched with the objective to pitch the lifestyle market and expand Nike supremacy within clothes market worldwide.
As a consequence, the marketing expanses dramatically increased with turnover (TV campaigns for superbowl, top talented sportsmen contracts and brand values issues : Tiger Woods, Lance Armstrong...) France market marketing expenses reached nearly 50% of local turnover !
It was time to focus the money on their core target : youth generation (Y generation actually...). And Nike's target is spending more time connected to smartphone or YouTube than in front of a TV screen. So Nike started connecting them through a new and powerful channel : Internet. Nike was one of the 1st big company to invest this promotion channel and quickly became an expert. As a result, check these charts from Kantar Media : Internet based direct marketing strongly increased and tradition media investments decreased. As a result net income globally increased.
Nike found a way to better connect to its customers and optimized the quality of its media plan via 2 major routes :
At this time, they realy increased their partnerships with top talented sportsmen and their products (and brands) portfolios.
Example : Nike Woman (TM) brand has been launched with the objective to pitch the lifestyle market and expand Nike supremacy within clothes market worldwide.
As a consequence, the marketing expanses dramatically increased with turnover (TV campaigns for superbowl, top talented sportsmen contracts and brand values issues : Tiger Woods, Lance Armstrong...) France market marketing expenses reached nearly 50% of local turnover !
It was time to focus the money on their core target : youth generation (Y generation actually...). And Nike's target is spending more time connected to smartphone or YouTube than in front of a TV screen. So Nike started connecting them through a new and powerful channel : Internet. Nike was one of the 1st big company to invest this promotion channel and quickly became an expert. As a result, check these charts from Kantar Media : Internet based direct marketing strongly increased and tradition media investments decreased. As a result net income globally increased.
Nike found a way to better connect to its customers and optimized the quality of its media plan via 2 major routes :
- Touch more precise and targeted audience without losing mass market objective (some videos on YouTube reach more unique visitors than Super bowl audience)
- Get from the target more interactions and then stronger engagement with Nike's brand
The rise of a new era for brand management and sport application : Internet
In 2005, Nike launched Nike ID (TM), an innovative way of engaging more its consumers with Nike's products by giving them the ability to customize shoes. these shoes are then unique and tottaly in adequation with their consumers' own and personal style.
Nike ID (TM) is, for me, the "big split" in Nike marketing strategy from the "just do it" company (linked with talented sportsmen efficiencies on playground) to Bill Bowerman's sentence : "if you have a body you are an athlete "
Apart from developing their media plan by using Internet and unconventional channels (Facebook, Google, Twitter, YouTube,..) Nike created a new division transversal to every sport : Nike Digital.
This division has been created in order to develop new product linked with new technologies. And the first product born from this division is a partnership... with another giant : Apple.
Nike Division launched a clever and very innovative product : Nike + iPod dedicated to runners to help them in their work out. It looks like the product briefing when they developed this product was:
Does it satisfied a worldwide company like Nike? No. They wanted to address any kind of sport and extend to potential of High Tech for sport... here comes the FuelBand :)
This division has been created in order to develop new product linked with new technologies. And the first product born from this division is a partnership... with another giant : Apple.
Nike Division launched a clever and very innovative product : Nike + iPod dedicated to runners to help them in their work out. It looks like the product briefing when they developed this product was:
- Easy to use
- Not intrusive
- Fun
- Target : sport beginner or low to average sportsmen
Does it satisfied a worldwide company like Nike? No. They wanted to address any kind of sport and extend to potential of High Tech for sport... here comes the FuelBand :)
Nike Digital new baby, Nike FuelBand (TM) : description and opportunities
It's a wrist band... a simple plastic wrist band which include USB connection, accelerometer, Bluetooth, processor and a device...
Looks like Nike Digital's VP, Stephan Olander, has kept in his mind the famous sentence "Think big, start small..." when they started developing this product...
But it is still a "big step" to Digital Sport evolution.
While you are working out any kind of sport, just walking, or doing the regular stuff you do on your day to day life, the FuelBand register every move and transform it to a specific metric : the "Fuel".
This Fuel is your metric for stating if you moved enough today or not, if you succeeded in your planes or not.
And you can measure your progress via a web 2.0 social platform for exchanging with your mates :)
As a Garmin Forerunner user, I would strongly appreciate Nike to work on an improvement of this FuelBand to bring it to "the next level" and add some mandatory specs like :
- ANT+ for connecting FuelBand to my scale and check my diet evolution
- GPS for mapping my runs
- HR sensor for HR check and analysis
- Sleep time analysis
- Network connection (3G) : stay connected, direct download of work out or EVEN "Emergency services" in case of danger (dog attack or worst...) or heart attack with direct connection to emergency services.
News of the day : Microsoft announced a partnership with Nike+ and Kinect.
Kinect sensor is now a new help for sportsmen to help them in their home work out... AWSOME!!! can't wait more!
Have a nice and sport day fellows ;)
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