Nike Market Research Report 1

MEMORANDUM
TO: Dr. Rees
FROM: Ashling Murphy
DATE: February 24, 2015
SUBJECT: Market Research Report

Section 1: Introduction
The following report provides an analysis of Nike Inc.s online presence.
The report utilizes primary research to analyze and audit Nikes digital
media and summarizes the extent to which Nikes online presence is
successful.
The report highlights strengths and weaknesses associated with Nikes
digital media involvement, and identifies key PR issues the brand may face.

Section 2: Background
2A: History
Nike Inc. is an athletic brand that manufactures apparel, footwear, and
sporting equipment.
Nike has established several subcategories of the brand with collections
including:
Nike+
Jordan
NikeLab
Nike is well known for their collaboration with famous athletes and sports
teams and often sponsors various athletes and teams as part of their
marketing strategy (Bring 2015).
2B: Target Market
Nike targets a wide market with a focus on young people and active adults.
Nike targets athletes, though they note on their website that everyone with
a body is an athlete. This establishes Nikes intention to sell to all
segments of the public (Bring 2015).

Nike Market Research Report 2

2C: Competitors
As a part of the athletic retail industry, Nike has several key competitors.
Notably, Adidas and Under Armour are two brands that are often seen
challenging Nike online. These brands are in competition with Nike for
celebrity collaborations as well as athlete sponsorships. Furthermore, they
are Nikes closest competition in the retail market as they provide similar
athletic apparel and footwear products.
The theory of differentiation is an important concept in branding. In order to
have a brand, consumers must be able to identify a product and
differentiate it from competitors (Fill 2009: 393).
Nike utilizes digital media to successfully differentiate themselves from their
aforementioned competition.

Section 3: Online Presence

3A: Social Media
Nike Inc. has established a strong online presence through their use of
various social media and networking sites. The brand currently utilizes the
following social networking sites to promote their products:
Twitter (4.55 Million Followers)
Facebook (22,981,276 Likes)
YouTube (2,022, 855 Subscribers)
Instagram (12.4 Million Followers)
Pinterest (89,899 Followers; 1,276 Pins)
Google+ (3,488,145 Followers, 33,587,825 Views)
Nike utilizes social media sites to their full advantage by holding several
accounts on each outlet for their various collections. This allows Nike to
target specific subgroups within their market giving them the ability to reach
a larger public.
Nike updates their social media accounts frequently and often combines
social media accounts by posting YouTube links on Twitter or sharing
tweets on their Facebook page. This helps to expose followers to all of
Nikes various accounts, increasing their brand exposure (Bring 2015).

Nike Market Research Report 3

A portion of Nikes Twitter account illustrating their high follower count

(https://twitter.com/nike)
3B: Website
Nike operates a successful website that is designed to be user friendly and
caters to an audience identifying with the Nike brand. On its homepage, the
site contains join and log in options as well as the option to subscribe to
an email list for updates and promotions (Bring 2015). This set-up allows
users and consumers to feel a part of the Nike brand and helps Nike gain
customer loyalty.
By prompting users to subscribe and join on the first page, Nike takes full
advantage of online websites as a marketing and promotional tool.
Furthermore, by encouraging consumers to subscribe for updates, Nike is
encouraging users to continue to engage with the website and brand
following their first visit.
This is further conveyed with Nikes inclusion of social media links on their
homepage. In his writings, Meerman Scott notes that A great website is an
intersection of every other online initiative, including podcasts, blogs, news
releases (Meerman Scott 2007:101)
By providing links to their various social media accounts, Nike applies this
theory to their marketing strategy and utilizes their web page as a hub for
their brand.

Nike Market Research Report 4

Additionally, Nike employs an interactive site, prompting users to engage

with the brand and the webpage. By dividing up the sites sections into
gender and collection, Nike makes it easy for users to engage with its site.
3C: Press Section
One notable portion of the Nike webpage is the designated press section.
Although Nike places the link for this section at the bottom of its homepage,
those looking for updates and investor information on the brand should be
able to locate this information easily.
In this portion of the site, Nike displays an interactive page of press
releases and product information. They highlight positive news stories and
feature the brands charity work and collaborations. The news section is
visually pleasing and uses large grabbing images to attract reader attention
(Eight 2015).

A portion of the News page on http://news.nike.com

With the News page, Nike is able to establish brand transparency with the
consumer leading to an increased trust of the brand via the public.

Nike Market Research Report 5

Section 4: Perceived Success

Through an analysis of data and content, one can determine that via
messages coming from the brand, Nikes perceived success online is high.
After auditing Nikes online presence via messages produced about the
company, the brands success is still notably higher than that of the
competition.
Using primary research to analyze the brand, it is clear that Nike has a
strong online presence and successfully utilizes digital media to advertise
and market. It is important to conduct a news audit of the brand as
Breckenridge notes it is important for a brand to be aware of every
communication, perception, preconceived notion, and miscommunication
out there in the market about your brand.
A SWOT analysis of Nikes digital media:

Strengths

Weaknesses

Secure place in
the market.
(Bain, M 2015)

Brand is
frequently
challenged in the
media.
(Badenhousen, K
2015)

Use of
technology to
market and
distribute
products.
(SNKRS 2015)
Desired by
football recruits.
(Sato, K 2015)
(Grocutt 2005: 104)

Opportunities Threats

Partnership with
Ellie Goulding as
a platform to
support feminist
agendas.
(Alexander, E
2015)
Reputation of
Opening an all
sweatshop
female store in
usage. (Nisen, M the UK as a sign
2013)
of support for
women. (Joseph,
S 2015)
Establishing
accounts with
Pinterest and
Google+

Negative
comments made
by Kanye West.
(Forester, P
2015)
JAMA review
citing Nike
Fuelband as the
least medically
accurate device.
(Wenger 2015)
Kanye Wests
collaboration with
Adidas. (Kanye
2015)

Nike Market Research Report 6

Section 5: Potential Issues Faced

5A: Market Competition
Nike belongs to a competitive market with several leading athletic retail
brands. As such, Nike faces high market competition with competitors like
Adidas and Under Armour. Although this is a potential issue for the
company, in an article citing these brands, research indicates that Nike has
a far lead above competitors and does not need to feel threatened by their
challenges and promotions (Bain, M 2015).
5B: Challenging the Brand
Another potential issue Nike faces is the consistent challenging of the
brand by the media and competitors.
They receive frequent challenging statements from brands such as Under
Armour and Adidas asserting that Nike should be concerned with the
competition presented by their brands. Recently, a falling out with Kanye
West, and his subsequent partnering with Adidas, have led to multiple
challenging statements and threats from both West and Adidas (Kreps, D
2015).

Section 6: Analysis
The above SWOT analysis illustrates that Nikes online presence is largely
positive despite facing several threats and weaknesses. An audit of Nikes
digital media conveys that Nikes strong marketing and use of social media
outweigh the negative feedback received from Kanye West or competing
brands.
Although Nike is faced with challenges in the market place, they utilize
social media and online campaigns to promote only the most positive
aspects of their company. By doing so, they convey to users the benefits of
supporting their brandgaining them loyal customers and overshadowing
negative brand attention.

Nike Market Research Report 7

Section 7: Key PR Issues

7A: Challenges
Recent challenges faced by the brand include:
Kanye West partnering with Adidas (Kanye 2015).
Report by the Journal of the American Medical Association that
Nikes Fuelband is the least accurate fitness wearable on the market
7B: Response
Nike countered these challenges with their own positive digital marketing.
In response to issues with Kanye West, Nike partnered with British singer
Ellie Goulding and promoted a successful campaign.
Additionally, Nike released a new SNKRS app allowing consumers to
interact with the brand more easily. This showed consumers that despite a
report from JAMA, Nike embraced technology and was a leading brand in
the use and development of digital media to market products (SNKRS
2015) (Wenger, A 2015).

A preview of Nikes SNKRS App

(https://itunes.apple.com/us/app/snkrs/id911130812?mt=8)

Nike Market Research Report 8

Section 8: Conclusion
Through analysis of data and content surrounding Nikes digital media and
online presence, it can be determined that the brand has a strong footing in
the marketplace. Nike successfully employs digital media to promote their
brand, connect with their consumers, and establish their reputation
positively.
Any negative comments from competitors or users are met with positive
feedback through Nikes digital outlets. These online marketing techniques
allow Nike to remain the leading athletic footwear and sports equipment
retailer in the market.

Nike Market Research Report 9

Bibliography

Alexander, E. (2015, February 17). Ellie Goulding on sexism, fitness and body confidence.
Retrieved February 19, 2015, from
http://www.glamourmagazine.co.uk/news/celebrity/2015/02/17/ellie-goulding-interviewon-nike-running-and-insecurities
Badenhausen, K. (2015). New Balance Challenges Nike And Adidas With Entry Into Global
Soccer Market. Forbes.Com, 15.
Bain, M. (2015, February 13). Kanye won't stop trash-talking Nike, but his new Adidas line is no
threat. Retrieved February 17, 2015, from http://qz.com/343747/kanye-wont-stop-trashtalking-nike-but-his-new-adidas-line-is-no-threat/
Breckenridge, D (2008) PR 2.0- New Media, New Tools, New Audiences, New Jersey: FT Press
Bring inspiration and innovation to every athlete* in the world. (n.d.). Retrieved February 19,
2015, from http://about.nike.com
Eight NCAA Basketball Teams Ready for Rivalries with New Nike Uniforms. (n.d.). Retrieved
February 17, 2015, from http://news.nike.com
Fill, C. (2005) Marketing Communications, Harlow: Pearson Education Limited, pp. 392-415
Forester, P. (2015, February 8). Kanye West Thinks Nike Should Fear Him. Retrieved February
17, 2015, from http://uk.complex.com/sneakers/2015/02/kanye-west-thinks-nike-shouldfear-him/
Gregory, A. (2010). Planning and managing public relations campaigns a strategic approach
(3rd ed.). London: Kogan Page.
Groucutt, J. (2005) Foundations of Marketing, Palgrave Foundations
Jones, R. (2015, February 17). Copping Your Favorite Sneakers Just Got a Lot Easier Thanks to
Nike's New SNKRS App. Retrieved February 19, 2015, from
http://uk.complex.com/sneakers/2015/02/nike-introduces-snkrs-app
Joseph, S. (2015, February 10). Nike preps first women's-only retail store in the UK. Retrieved
February 23, 2015, from http://www.thedrum.com/news/2015/02/10/nike-preps-firstwomen-s-only-retail-store-uk
Kanye West Leaves Nike... Now Can He Save Adidas? (2015, February 11). Retrieved February
19, 2015, from http://www.bloomberg.com/news/videos/2015-02-11/kanye-west-leavesnike-but-can-he-save-adidas-

Nike Market Research Report 10

Kreps, D. (2015, February 8). Kanye West Bashes Nike During Big Sean's All-Star Concert.
Retrieved February 17, 2015, from http://www.rollingstone.com/music/videos/kanyewest-bashes-nike-during-big-seans-all-star-concert-20150208
Meerman Scott, D. (2007) The New Rules of Marketing and PR: How to Use News Releases,
Blogs, Podcasts, Viral Marketing and Online Media to Reach Your Buyers Directly, New
Jersey: John Wiley & Sons
Murphy, M. (2015, February 17). Nike may let you design your next pair of shoes using virtual
reality. Retrieved February 19, 2015, from http://qz.com/344522/nike-may-let-youdesign-your-next-pair-of-shoes-using-virtual-reality/
Nisen, M. (2013, May 9). How Nike Solved Its Sweatshop Problem. Retrieved February 20,
2015, from http://www.businessinsider.com/how-nike-solved-its-sweatshop-problem2013-5?IR=T
Rougeau, M. (2015, February 13). Nike's new Fuelband app lets you ditch the wearable.
Retrieved February 19, 2015, from http://www.techradar.com/us/news/wearables/nike-snew-fuelband-app-lets-you-ditch-the-wearable-1284732
Sato, K. (2015, January 27). New Data Reveals Nike's Dominance Among Football Recruits.
Retrieved February 19, 2015, from http://www.huffingtonpost.com/kai-sato/new-datareveals-nikes-do_b_6551198.html
Sozzi, B. (2015, February 13). Here's Under Armour's New Basketball Shoe That Will Take on
Nike's Air Jordan. Retrieved February 19, 2015, from
http://www.thestreet.com/story/13045840/1/heres-under-armours-new-basketball-shoethat-will-take-on-nikes-air-jordan.html
SNKRS. (n.d.). Retrieved February 17, 2015, from
https://itunes.apple.com/us/app/snkrs/id911130812?mt=8
Under Armour: Sports Clothing, Athletic Shoes & Accessories. (n.d.). Retrieved February 19,
2015, from http://www.underarmour.co.uk/en/home
Wenger, A. (2015, February 10). Study: Nikes FuelBand Is the Least Accurate Fitness Wearable
You Can Buy. Retrieved February 17, 2015, from http://www.healthline.com/healthnews/nike-fuelband-inaccurate-fitness-wearable-021015
https://twitter.com/nike
https://www.facebook.com/nike
https://uk.pinterest.com/nikewomen/