Lawrence Lo’s Post

Nike recently shifted to a direct-to-consumer model, initially boosting its brand value. However, the post-pandemic landscape has brought significant challenges, including a troubling earnings report in June 2024. Nike now faces stiff competition from rivals like adidas and On, who have leveraged high-profile endorsements and successful campaigns to strengthen their market positions.   From a communications perspective, Nike’s journey underscores the critical importance of adapting strategies in response to evolving market conditions. Reconnecting with consumers through compelling narratives and leveraging its legacy of innovation will be key to revitalizing its brand. Nike must capitalize on its historical strengths and creatively navigate its current challenges to reclaim its leadership position.   Explore Nike’s strategic approach to overcoming these hurdles and revitalizing its brand in ADWEEK.   #Nike #BusinessStrategy #MarketTrends #AdWeek  

Nike as a Brand is Dying Horribly! (Yes, you read that correctly) In the past year, Nike's stock has plummeted by 32%. With a staggering $25 billion loss in value on the day of their last quarter results. Three key factors contribute to this decline: 1. Categorization Shift: Nike eliminated specific sport-focused categories (Basketball, Football, Running, and Training) in favor of a more general approach (Men, Women, and Kids), mirroring fast-fashion brands like Zara and H&M. This move undermined Nike's association with athletes and specialized skills. 2. D2C Strategy: Under CEO John Donahue, Nike aimed to become a direct-to-consumer (D2C) company. Reducing offline stores and emphasizing online sales led to the termination of agreements with hundreds of wholesalers worldwide. Nike's withdrawal from this channel resulted in lost consumer loyalty, while other brands like On Cloud and Hoka invested in offline relationships. 3. Marketing Shift: Nike transitioned from brand marketing (sponsorship of sporting events) to performance marketing ads focused solely on driving sales. This shift led to a loss of creativity. And brand value dilution. As ads became optimized for sales rather than brand storytelling. The consequences are stark: Nike has destroyed over 30% of its value in the past year. And is down 9% from its value five years ago. Despite the popularity of Nike Jordans during this period. After the Down Quarter And a Class-Action Lawsuit, do you think Nike's aggressive marketing in the Paris Olympics will revive their position?

Nike has a lot riding on how it shows up at the Olympic Games Paris 2024. It must revive sluggish sales and restore its declining brand value as competitors like Adidas and upstart apparel company On try to snatch market share. According to Kantar’s BrandZ rankings, which determine brand value using financial data and consumer research, Nike’s brand value more than doubled between 2020 and 2022, rising from $49.9 billion to $109.6 billion amid a pandemic fitness boom. But post-pandemic, it has slid back down to $71.6 billion. We spoke with six people who are either former Nike executives or worked closely with the brand, as well as other marketing experts, to paint a picture of how Nike can regain the edge that defined its brand for so long. https://adweek.it/3SwIPr7

🏆👟NIKE - The Goddess of Victory isn't feeling it these days. Even prominent brands lose their way once in a while, so I found this a compelling read to understand what's happening inside the organization and where they're headed to reinvent and restabilize the brand. It also serves as a cautionary tale for ALL marketers: 1. You absolutely CANNOT abandon brand marketing for performance marketing. I hear this discussion in my circles all the time. It's an idea that looks good on paper, but can backfire in the end. There's a healthy balance of both for every brand, and with improved brand measurement techniques, it becomes easier to understand brand health + effectiveness to guide budget allocation. 2. Integration - Integration - Integration. It amazes me that we still have to emphasize this. It's ESSENTIAL to place your ads, messages, and campaigns across multiple channels in the digital ecosystem for your target audience. Nike's example was a failure of strategy in placing new product content only on Insta. Remember that people need to see things 3+ times before they might take action - especially a new product that is looking for new followers/subscribers. A one-and-done is lazy. 3. Migrating from a retail to a direct-to-consumer strategy is a balancing act. It appears that Nike was too aggressive in driving more online direct business, at the expense of jeopardizing retailer relationships. Even as online shopping has exploded, this article fails to mention or recognize the vast breadth of new competitors that Nike has faced as it was accelerating the DTC strategy. Probably another plan that looked good on paper (streamlined efficiency, higher profitability, inventory control, etc.), but didn't deliver on what the consumer actually wanted + needed. Customers speak with their wallet. 🥇 🥈 🥉 I've seen their Olympics TV spots featuring the tagline, "Winning Isn't For Everyone." The video montage is cool, but not sure I love the tagline. But it made me think - which is what good brands do. What do you think of the spots? #nike #branding #marketing https://lnkd.in/gg2S456a

There's been a lot written about Nike's drop in revenue, but Mark Ritson sums it up best. For me, the most important point is this: underestimate the importance of long-term brand building at your peril. - Performance marketing (hate that term) generates revenue today - brand marketing protects the revenue of tomorrow. In other words, go short-term AND long. https://lnkd.in/e8NcwdhQ

Nike spent years building its brand, but its recent direct-to-consumer push has backfired. Over-discounting and losing its “cool” factor to brands like On and Hoka? This isn’t a great look for the once untouchable giant. Now, Nike’s turnaround hinges on one thing: marketing. CMO Nicole Hubbard Graham is back to prove that marketing is more than just a budget line—it’s the key to winning back customers. I see this as a giant wake-up call for CMOs everywhere. Brand marketing is no longer a nice-to-have—it’s your ticket to boardroom influence. #MarketingLessons #Martech #Storytelling #BrandMarketing #Advertising

Big thanks to Kunal Mehta for bringing Mark Ritson Marketing Week article on Nike’s missteps to my attention. It’s a must-read for anyone thinking about strategy vs. execution in marketing. Ritson cuts through the noise: Nike’s failure under John Donahoe wasn’t just about leadership, it was about a misguided strategy. Donahoe focused too much on short-term performance marketing, sacrificing the long-term brand building that made Nike iconic. While performance marketing delivers quick ROI, it erodes over time if there’s no emotional connection fueling it. Nike also over-rotated toward direct to consumer and misread the post-Covid landscape, pulling back from wholesale partners just as consumers returned to physical stores. The lesson here? Beware chasing short-term gains at the cost of long-term brand equity. As marketers, we have to find the balance between performance and brand marketing to sustain growth and relevance. It’s not just about culture or leadership—it’s about strategy. And getting that balance right is more important than ever. #MarketingStrategy #BrandBuilding #PerformanceMarketing #AHAMoments #Nike #MortarAgency #MarketingWeek

The recent shifts in the fortunes of Adidas and Nike underscore the critical importance of brand positioning and market responsiveness in digital marketing. Adidas’ success with its classic Samba and Gazelle models highlights the power of leveraging nostalgia and retro trends to connect with consumers on an emotional level. This strategy not only revitalizes interest in legacy products but also aligns with current fashion trends, driving engagement and sales. On the other hand, Nike’s challenges reflect the need for continuous innovation and clear messaging. As digital marketers, we must ensure that our campaigns are not only innovative but also resonate with our target audience’s evolving preferences. The divergence in brand value between Adidas and Nike also emphasizes the importance of maintaining a strong brand identity and reputation online. In an era where consumer behavior is heavily influenced by digital interactions, these case studies remind us that staying attuned to market trends and consumer sentiments is crucial. By effectively utilizing data analytics and social listening tools, we can craft strategies that not only drive sales but also build lasting brand loyalty.

Nike’s “Winning Isn’t for Everyone” campaign harks back to the brash marketing of the brand’s heyday in a significant departure from the softer tone it adopted in recent years. 🎖 Nike has long been a brand synonymous with #victory, #performance, and pushing the limits of human potential. But their recent marketing campaign, “Winning Isn’t for Everyone,” marks a bold departure from the traditional messages of triumph and glory that we’ve come to associate with the iconic swoosh. 🏅 At its core, Nike’s “Winning Isn’t for Everyone” campaign challenges the conventional notion of success. Instead of #glorifying the few who stand on the podium, Nike is speaking directly to the vast majority who won’t. This isn’t about alienating customers but about creating a more inclusive definition of winning—one that resonates with everyday athletes and aspirants. It’s a powerful message that winning isn’t just about crossing the finish line first; it’s about the #journey, the #struggle, and the #perseverance it takes to even start the race. 🦕 This shift also allows Nike to stand out in a crowded market. While competitors may continue to focus on elite performance, Nike’s broader definition of winning positions it as a #champion of the everyday athlete. This #strategy not only differentiates the #brand but also opens up new market segments—particularly among those who might have previously felt excluded by the brand’s traditional focus on elite athletes. 🗣 Nike’s “Winning Isn’t for Everyone” campaign is a #bold and #strategic move that redefines success in a way that resonates with today’s #consumers. By shifting the focus from elite performance to personal perseverance, Nike is broadening its appeal, differentiating itself in a competitive market, and deepening its connection with its audience. This #campaign is not just a #marketing tactic; it’s a reflection of Nike’s understanding of the evolving landscape and its commitment to staying relevant in the hearts and minds of consumers. 🐪 In a world where the definition of winning is changing, Nike’s message is clear: success is personal, and everyone’s journey deserves to be celebrated. This inclusive and authentic approach is poised to drive significant strategic value in the marketplace, ensuring that Nike remains not just a leader in athletic wear but also a leader in cultural relevance. Company veteran Nicole Hubbard Graham, who returned as CMO in January, is co-piloting the shift after a historic sales slump under current CEO John Donahoe. The marketing vibe shift is a step in the right direction, but analysts caution the company is still far from getting its performance back on track.

In today's competitive world of commerce, Nike stands out as a beacon of success and innovation. What sets Nike apart from its competitors? Its strategic branding triumph. From crafting compelling narratives to embracing authenticity and innovation, Nike has created a brand that transcends mere products and resonates with consumers on a deeper level. At the heart of Nike's branding strategy lies a relentless commitment to storytelling. The brand doesn't just sell products; it sells dreams, aspirations, and the promise of greatness. Nike has consistently crafted compelling narratives that resonate with its audience, creating emotional connections that transcend mere transactions. Nike's branding strategy extends beyond mere symbolism; it's deeply rooted in authenticity and relevance. By aligning itself with top athletes and sports events, Nike reinforces its commitment to excellence and inspires consumers to push beyond their limits. Nike has consistently leveraged its brand to connect with consumers on a personal level, creating emotional connections that transcend mere transactions. Another cornerstone of Nike's branding strategy is its focus on innovation. Nike has consistently pushed the boundaries of design and technology to deliver products that not only perform but also inspire. By staying ahead of the curve and embracing innovation as a core value, Nike has cemented its reputation as a leader in the athletic footwear and apparel industry, earning the trust and loyalty of consumers worldwide. Nike's branding success can also be attributed to its ability to adapt and evolve with the times. In an age of digital disruption and social media influence, Nike has embraced new platforms and channels to engage with its audience in innovative ways. As e-commerce entrepreneurs, we can learn valuable lessons from Nike's strategic branding triumph and apply them to our own businesses, paving the way for success. #digitalmarketingexpert #onlinemarketingexpert #performancemarketingexpert #brandawareness #nike