Executive Summary
Nike is a large company and a famous sports and fitness brand that is loved by customers from all over the globe. Digital communication is crucial to Nike to stay ahead of its competitors, increase brand awareness, and draw new customers into stores. Hence, the purpose of the present report was to analyze Nike’s integrated marketing communication plan for strengths and weaknesses and provide recommendations for improvement based on the findings. The results of the analysis were mixed, as it was found that Nike’s IMC exhibited some critical strengths and weaknesses. The core strengths identified in the report are the high functionality of its online shop and apps, the high quality of marketing content on social media, and the excellent use of Instagram as the primary social media platform.
The weaknesses identified in the report were unstable social media presence, the low level of activity on product-related posts, and poor website structure. Additionally, it was found that the variety of workouts and features in Nike’s apps could be enhanced. The recommendations provided in the report target each area of concern identified through analysis. The report offers suggestions of strategies that could be used to improve Nike’s website, increase engagement on social media, and enhance apps to fulfill the needs of diverse people. Implementing the recommendations would leverage the effectiveness of Nike’s IMC plan, leading to better results in terms of popularity and competitiveness.
Introduction
Nike is a globally famous brand of sportswear that offers a variety of products, from sneakers to fitness accessories and mobile applications. The success of Nike is at least partly due to its brand image and reputation, which have been sustained over the years through the effective use of various marketing techniques. In the current business environment, Nike faces competition from other popular fitness and sports brands, including Adidas, Puma, Under Armour, and others. Reaching more customers and raising the level of brand awareness on a global scale is thus among the main priorities of the organization and a requirement for battling competition.
Technological developments that occurred over the past decades paved the way for companies to communicate with their target markets in new ways, and Nike has become apt at using modern technology to promote the brand and its products. Nike engages in digital communication actively, and the components of its digital IMC strategy range from an international online shop to mobile apps with workouts. Nike also has a stable presence on some social media, which responds to the current communication habits of its target customers. The use of various digital communication channels is an essential concern for Nike, which is why revising its IMC strategy is vital. The analysis shows that Nike’s digital communication has both strengths and areas for improvement. Achieving better results in terms of digital promotion by improving its IMC strategy would assist Nike in attracting more customers and enhancing its digital presence.
Nike Digital IMC Strategy
Element Analysis
The primary elements of Nike’s digital IMC strategy are social media platforms, mobile apps, and websites. The company also uses search engine ads and social media advertisements to promote its website and products to interested consumers. Hence, it can be said that the organization has a stable online presence, although the quality and type of content varies significantly across different platforms. Nike’s website is mostly tailored to online shopping, and it can be hard to find more information on it. The content posted on social media varies greatly and includes advertisements, motivational quotes, videos, product announcements, and other types of posts. Hence, the overall scope of content and digital presence is appropriate, but some refinement is definitely needed to improve Nike’s success in the area of digital promotion.
Strengths
One of the critical advantages of Nike’s digital IMC strategy is the excellent use of Instagram as one of its social media channels. The company has over 100 million followers on Instagram and posts inspirational photos and videos regularly. This enables the organization to receive a lot of likes and comments on posts, which contribute to its social media strategy effectiveness. Instagram is the third most-used app in the United States, and it also has high popularity globally, which allows Nike to reach millions of potential customers through it (Perrin & Anderson, 2019). Another necessary strength of Nike’s strategy is that the company provides functional mobile apps for health and fitness, including Nike Run Club and Nike Training Club. Both apps are in the list of top 50 health and fitness applications in the Apple store and have excellent user ratings. Using these apps, Nike can promote its products while also receiving additional revenue.
The third strength of Nike’s IMC digital plan is that the organization uses video ads promoted on social media to attract more customers and improve brand awareness and reputation. These ads are usually tied to Nike’s message “If you have a body, you are an athlete,” which represents the company’s perspective on health and fitness (Nike, 2020a, para. 1). Hence, the videos show diverse people training or playing sports, including people of color, people with disabilities, children, and older adults. The inclusivity portrayed in these ads contributes to their positive message and makes Nike’s videos particularly appealing and popular.
Weaknesses
Despite the strengths mentioned above, Nike’s digital IMC strategy has some flaws in terms of both planning and execution. Firstly, the organization’s online presence is unstable, meaning that social media platforms are used unevenly. For example, the company’s Facebook page has not been updated with new posts from 2018, whereas its Instagram is updated weekly. This can impair customers’ involvement since people are less likely to follow Nike on multiple channels if only one or two of them are updated regularly.
Secondly, the company’s product-related posts on social media receive a meager number of likes. For example, Nike has 8 million followers on Twitter, but its recent post about the latest running shoes received less than 900 likes and 189 retweets. In comparison, a poster picturing diverse athletes raised over 2.5 thousand likes and nearly 500 retweets within 10 hours. Based on this information, it appears that the content of product announcements published by Nike is not effective in raising awareness about and interest in its new products.
Thirdly, the structure of Nike’s website may not be as effective as intended to be. The company’s main website functions as an online shop and does not provide any information about the organization and its mission. To find more information about the brand, users have to go to a different website by scrolling to the bottom of the home page or searching for it on Google. Given that the sales of Nike’s product are directly related to its brand image, this part of the strategy is not effective in attracting customers to the brand (Biron, 2019). Improvements to the website would help Nike to align its retail and brand promotion activities and attract more customers.
Nike Website Strategy
Introduction
The primary purpose of Nike’s main website is to encourage online shopping. This is evident from the landing page of the site, which features the different sections of the website and showcases certain products and collections. Navigating the website for shopping is relatively easy, although the landing page is obstructed with large-sized videos presenting new collections, and it takes some time to scroll past them. The overall functioning of the website is good, and customers can use it to shop online, find the nearest offline store, see current promotions, join Nike Club through membership, and more. At the very bottom of the page, there are links to Nike’s other websites, which contain company news, information for investors, and additional information. However, these links can be easily missed since they are presented in a smaller and less bright font compared to the shop’s hyperlinks. This might obstruct the experience of users who are looking to find specific information about Nike, such as its mission and social activity. Nike’s other website, which is about.nike.com, has similar drawbacks with regard to user experience. Both landing pages feature large videos and posters that require users to scroll down to find the information they need, affecting user experience.
Current Website Strengths and Weaknesses
The strengths of Nike’s existing website are as follows:
- Functional shopping website with all required tools for online and offline shopping;
- Well-structured individual information pages, such as News.
The first strength is vital because it enables customers to tailor their use of the website to their needs. Although online shopping has become the norm for most people, some are still hesitant about it and prefer offline shopping instead. Nike’s website fulfills the needs of all customers by offering a comfortable, well-designed shopping experience for online customers and tools for stress-free information search for offline customers, such as find a store (Nike, 2020b). The other strength is also necessary because it affects customers’ experiences with the brand as a whole. Since Nike relies on its brand image to a significant extent, the organization needs to provide interested persons with as much information as possible about the brand, its mission, commitment to various causes, and new products and technologies. Hence, having well-structured individual pages for news, media relations, and investors assists Nike in fulfilling customers’ information needs.
The weaknesses of Nike’s current website strategy are:
- Videos and large posters obstructing navigation on both websites;
- Non-intuitive navigation between sites.
The first weakness concerns the overall website experience both for online shoppers and for those looking for company information. Scrolling through large images and videos takes time, while heavy images and videos may also affect the speed of loading. Additionally, navigation between websites is not intuitive, meaning that most people will not know where to go to find information about Nike from the landing page. This affects the ways in which the audience engages with the brand as a whole, as well as Nike’s ability to fulfill the needs of various website users.
Recommendations
The first recommendation would be to make the website experience simpler in terms of content. In order to do this, Nike would need to change the visual layout of the landing pages on both of its website and put the links customers need more at the top of the page in a large, bright font. For example, besides the different online store sections, the top of the landing page could include the links to “Find a Store” service and the “Promotions” page. The next step would be to restructure visuals appearing on the page in a way that makes them more concise and easy to view. At the moment, the video ad takes up all the space that is immediately visible on the landing page, with other large images appearing below it. Making the videos and images smaller and placing them on the side of the screen would allow people to shop or find information without distractions and in a shorter amount of time.
The second recommendation is to improve navigation on the two websites by integrating them. To do that, Nike would need to create a new landing page for nike.com that would ask users what information they are looking for and show three or four options: shop, company information, careers, and investors. As the user clicks on what they are interested in, they would be transported to the appropriate section of the website. Integrating the two sites into one with several sections would help to structure information better, thus helping users to find what they need without searching for it.
Nike Social Media Strategy
Introduction
Nike is present on all popular social media platforms, including Instagram, Facebook, Twitter, and Youtube. On Instagram, the organization publishes inspirational videos and pictures featuring professional and amateur athletes, which receive many likes and comments. Nike also has over 100 million followers on Instagram, which expands its outreach. On Facebook, the organization has over 33 million likes, but the page itself has not been updated since 2018. On Twitter, Nike has 8 million followers, and the content varies from product announcements to sports-related retweets. Youtube remains an underdeveloped platform for Nike with just over 1 million subscribers, but Nike attempts to revive it with new videos. For example, the company recently published a series of workout videos (Nike, 2020e) and updates on product development (Nike, 2020d). The view count on videos is currently rather low, but useful content could make this platform more popular.
Current Social media Strategy Strengths and Weaknesses
The strengths of the current social media strategy are:
- Well-developed Instagram profile with high activity levels;
- High quality of content on Instagram and Youtube.
Hence, the current social media strategy is somewhat beneficial for the organization. On the one hand, Instagram is highly popular among people in Nike’s target market, and keeping this platform active is essential to brand development. On the other hand, the content on Youtube and Instagram is also well-designed, with high-quality videos and useful advice.
Still, there are some weaknesses to Nike’s social media strategy, including:
- No activity on Facebook;
- Low number of likes on product-related posts.
Both issues could affect Nike’s communication with the target market. According to research, Facebook remains one of the top social media networks and is used by almost 70% of U.S. adults (Perrin & Anderson, 2019). Facebook also remains widely used in Europe, even though European people are likely not to use Snapchat, Twitter, and Instagram at all (HubSpot, 2020). Hence, by abandoning Facebook, Nike has also abandoned a significant share of its customers. The low number of likes on product-related posts is also a concern since it shows a lack of interest. Product announcements on Twitter generate a few hundred likes, whereas other posts generate several times more. This suggests that the way product posts are designed is not sufficient.
Recommended Social Media Strategies
The first recommended strategy is for Nike to establish an even presence across all social media, including Facebook. In order to do that, the company would need to revisit its use of each social media network and distribute which type of content will be published on each platform. For example, Twitter could be limited to product- and brand-related information, whereas Youtube would become home for workout videos, fitness advice, and interviews with athletes. The content on Instagram should remain unchanged since it generates a high level of activity anyway. Nike should also begin to use Facebook again, perhaps, starting with a post explaining its long absence and foreshadowing content to follow. Facebook could be used to share news, fitness-related opinion pieces, and articles, which would generate the desired user activity.
The second recommendation for Nike would be to improve product announcements by making them more exciting and engaging. For instance, the company could allow customers to vote on color schemes for new sneakers, share pictures of their purchases for a chance of being reposted by Nike’s account, or make compelling product ads and share them on Twitter. This would help to increase the interest in Nike’s products on social media and improve its use of specific platforms.
Mobile Phone Promotion Strategy
Introduction
The central component of Nike’s mobile phone promotion strategy is the apps that can be used for fitness and training as well as for personalized services. Nike has developed several apps, including the Nike App, Nike Training Club, Nike Running Club, and Nike Adapt. The first app is designed for users to familiarize themselves with new products and offers, as well as to get better in-store service. For instance, the Nike App can be used to request fitting rooms and shoe sizes instantly (Milnes, 2019). Running and training apps are intended to support fitness activity and can be paired with smart watches and other devices. Nike also has a branded Apple iWatch edition to attract more users of smart technologies. The Nike Adapt app can be used to customize the self-lacing Adapt sneakers (Nike, 2020c). Thus, the apps are tailored to their intended purpose and improve customer’s experience with Nike products.
Current Mobile Phone Strategy Strengths and Weaknesses
Nike’s mobile phone strategy has some important strengths, such as:
- Functional apps with high-quality fitness content;
- Unique features to enhance the in-store experience.
The apps designed for training and running are particularly popular because of their functions and quality. As explained by Skwarecki (2017), Nike Training Club provides effective workouts for users with all fitness levels and is better than some other alternatives available on the App Store. Moreover, the Nike App has essential features that distinguish it from the apps offered by competitors and respond to the needs of offline customers.
Nevertheless, there are also weaknesses of Nike’s mobile phone promotion strategy:
- Limited range of free workouts available through apps;
- Most features of the Nike App are only available to members.
Firstly, there are only 185 free workouts available through the Nike Training Club app. This number might seem high, but, considering that all workouts vary in terms of muscle groups, intensity level, and fitness level required, the user’s choice is quite limited. People with specific health problems, such as joint pain or back pain, might not find any workouts suitable for them at all. This limits the benefits of the app for many users, impacting its popularity. As for the Nike App, most features are only available to members, and thus people might not be able to enjoy the full experience.
Recommendations
The first recommendation would be to improve the variability and number of workouts available through Nike Training Club and Nike Running Club. This can be done by surveying users to identify their interests and making more free workouts available. Nike should also introduce workouts for people with limited fitness ability due to chronic pain. This would increase the popularity of Nike Apps among users. The second recommendation is to increase the range of features available to non-members of the Nike Apps. For instance, leaving only some promotions and exclusive offers as member-only would still encourage people to become members while also allowing most people to use the app without significant limitations.
Conclusion
Overall, Nike’s IMC plan combines a variety of communication channels and supports their adequate use. The organization invests heavily in digital promotion, which is evident from the quality of content that it publishes on social media, as well as on the website and in its apps. Nike’s use of Instagram is particularly effective, and the company benefits from having a large follower count and a high level of activity on this social network. Nike’s workout apps are also an essential component of its IMC strategy since they are in line with the organization’s mission to make fitness accessible to all. The functional side of Nike’s apps and its website is excellent, which contributes to users’ experience with the company.
However, there are some components of Nike’s IMC plan that require considerable improvement. First, the content of its main website provides limited opportunities to learn about the organization, which might impact people’s level of awareness about the brand. The uneven use of social media and the quality of product-related posts could also be enhanced as some platforms are underused, and some posts don’t have sufficient activity to make an impact. The apps designed by Nike could also be used more effectively with minor adjustments, such as increasing the variety of content available to specific groups of users. The recommendations provided in the report would help Nike to improve its IMC strategy and achieve better results in the field of digital promotion.
References
Biron, B. (2019). Nike was crowned teens’ favorite clothing brand for the ninth year in a row — here’s why Gen Z can’t get enough. Business Insider. Web.
Hubspot. (2020). The 2019 European social media usage report. Dublin, Ireland: Hubspot, Inc.
Milnes, H. (2019). In effort to grow direct sales, Nike integrated its app strategy into its stores. Digiday. Web.
Nike. (2020a). About Nike. Web.
Nike. (2020b). Find a Nike store. Web.
Nike. (2020c). How do I customize my Nike Adapt with the Nike Adapt app? Web.
Nike. (2020d). Nike renew run | behind the design | Nike [Video file]. Web.
Nike. (2020e). Running mechanics for proper form: Blue benadum | NRC tips in stride | Nike [Video file]. Web.
Perrin, A., & Anderson, M. (2019). Share of U.S. adults using social media, including Facebook, is mostly unchanged since 2018. Web.
Skwarecki, B. (2017). Workout showdown: Sworkit vs. Nike Training Club. Web.