Author Topic: Nike bets on its demographic  (Read 481 times)

rcjordan

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Nike bets on its demographic
« on: September 09, 2018, 05:46:46 PM »
Nike sales surge despite storm over Colin Kaepernick's "Just Do It" ad

https://www.cbsnews.com/news/nike-sales-surge-despite-storm-over-colin-kaepernicks-just-do-it-ad/

Travoli

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Re: Nike bets on its demographic
« Reply #1 on: September 09, 2018, 07:15:47 PM »
I thought the following video had an interesting perspective.

https://www.youtube.com/watch?v=qLXzPDteFks

"The Gangster Marketing Move of 2018"

"Regardless of what you think of who's right or who's wrong on this issue, effectively the organization has arbitraged or traded older conservatives from red states whose, by the way, disposable income is declining, and traded them in for younger, affluent urban consumers who tend to be more progressive. Was this the right thing to do? We'll see. Was it the shareholder-driven thing to do? 100%."
« Last Edit: September 10, 2018, 12:28:05 AM by Travoli »

littleman

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Re: Nike bets on its demographic
« Reply #2 on: September 09, 2018, 10:56:26 PM »
I read that the press alone was worth $2b in advertising.  Clearly, they did the math.

aaron

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Re: Nike bets on its demographic
« Reply #3 on: September 10, 2018, 10:42:57 AM »
I read that the press alone was worth $2b in advertising.  Clearly, they did the math.
It is very easy for people to hate a pro athlete who is more known for their outside the game drama than for their actual performance. The short term buzz provides a bit of a lift, but the long-term resentment from attaching oneself to a politically polarizing mascot in an age of increasing polarization might create an entry point for another competitor to launch & then later expand across.

Presuming red states keep getting economically screwed & presuming there won't be a blowback worse than Trump is perhaps a bad presumption.

I think New Balance ended up moving some of their shoe production offshore, but if they were purely domestic with their production then selling the whole patriotism angle would be pure marketing gold for them to do if they did a bunch of geo-targeted advertising where politics leaned right. They still do produce about a quarter of their shoes in the US.
https://www.themadeinamericamovement.com/products/are-new-balance-shoes-made-in-usa/
https://sneakers-magazine.com/behind-the-manufacturing-of-the-new-balance-1978/

The left/right divide is often an urban/rural divide as much as anything else.

How hard would it be to run statewide targeted ads that exclude 5 or 10 core urban areas?

Spinning up those marketing campaigns & making them speak a message to a base without also being polarizing will take a bit of time, but not doing it is a wasted opportunity for someone like New Balance.

Mackin USA

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Re: Nike bets on its demographic
« Reply #4 on: September 10, 2018, 11:29:20 AM »
This reminds me of something Jeremy “ShoeMoney” Schoemaker would think of.
Great AD strategy.

On the other hand, these guys have 160 American workers very busy at the moment
https://www.ninelineapparel.com/products/mens-t-shirt-just-stand
Mr. Mackin

DrCool

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Re: Nike bets on its demographic
« Reply #5 on: September 10, 2018, 04:09:34 PM »
Reminds me of other results of protests or boycotts against a brand. When people get all over Chick Fil A or In n Out and try to boycott them for donating money to causes that promote "traditional marriage" the lines are around the block from the people that support them. A couple years ago when those videos came out about Planned Parenthood selling body parts and the conservative right was up in arms against them the donations increased.

Nike is betting on the same thing here. Not sure it is necessarily a great long term strategy but Nike has enough going on that they can afford something like this from time to time. I know a lot of people who said they will never buy Nike again and a lot more that are buying more because of this.

nffc

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Re: Nike bets on its demographic
« Reply #6 on: September 10, 2018, 06:34:18 PM »
>long term strategy

Super long term, but standing by its athletes will pay off in spades.

littleman

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Re: Nike bets on its demographic
« Reply #7 on: September 10, 2018, 09:54:20 PM »
Nike sales are up 31 percent since the Kaepernick campaign.


Quote
Nike sales jumped by 31 percent after debuting quarterback-turned-activist Colin Kaepernick as a new company spokesman — and market observers say the president’s public displays of anger may have backfired by drawing more attention to Nike.

“Controversial endorsements tend to generate a lot of hype,” said Marshal Cohen, chief industry analyst for retail at The NPD Group, a market research firm. “These kinds of statements and brand partnerships make for a big impact on brand selling.”

According to data from Edison Trends, online sales of Nike products jumped 31 percent between the Sunday before and the Tuesday after Labor Day, nearly double last year’s 17 percent increase over the same time period. Kaepernick is part of Nike’s 30th anniversary of its “Just Do It” tagline. A TV ad narrated by Kaepernick debuted Thursday on the opening night of the regular NFL season.

“Nike is a company that is focused on younger generations and expanding their market. This ad did that for them,” said Hetal Pandya, co-founder of Edison Trends.


Drastic

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Re: Nike bets on its demographic
« Reply #8 on: September 11, 2018, 09:24:28 PM »
The irony is lost on people supporting this cause by buying more nikes with their ethical mfg history, but man if this wasn't well thought out. There's really no way they could lose going this route, killer marketing campaign reach for the cost.

"effectively the organization has arbitraged or traded older conservatives from red states whose, by the way, disposable income is declining, and traded them in for younger, affluent urban consumers"

I'd say group 2 were your primary Nike buyers to start with, this just shores things up.

>but not doing it is a wasted opportunity for someone like New Balance.
None will have the balls. Not even close.