Stick To It: Marketing Lessons From 30 Years Of Just Do It
Unless you’re living in a bubble, you’ll know that Nike dropped its latest campaign a little over a week ago (and even if you are, you probably still know).
And it exploded.
There are opinions and articles abound, especially on the politics, so right from the get-go I want to be clear that this isn’t a commentary on that. My interest is in the marketing lessons and in this, I believe there are a couple of great ones.
Setting the scene, the latest in Nike’s 30-year Just Do It campaign stretch is typically strong, idea-led and follows the brand’s well worn path of topical relevance, clarity of definition in the social stand being made, and delivered via powerful visuals, copy and script, which tell human stories grounded in self-belief.
As a creative commentary, it’s interesting that during the 2-minute main film that leads the campaign, the new star and subject of the controversy, Colin Caepernick (former San Francisco 49ers NFL player), is the only one seen not wearing their battle robes or plying their craft in the spot.
One may say that it’s because he’s not currently playing.
I can’t help thinking though that he appears walking casually through the streets in civilian wear, to hammer home the idea of believing in something even if it means sacrificing everything.
This is the campaign idea and for Caepernick, is a case in point.
Back to strategy though and evidently it’s one that’s working, since Nike is the biggest sportswear and apparel brand in the world.
Given that and specifically analysing the current campaign, I’m fairly certain there are two critical lessons for every marketer and they are:
Focusing on strategy as king; the long game and built on the basis of clear brand vision and position,
Quantifying risk and the best use of ROI
First, regarding strategy, in order to attract new markets, buyers, etc. and galvanise your brand with their changing values and attitudes, be prepared to sacrifice some of the “old” (demographic and attitude) guard in order to ensure long term economic outcomes.
This doesn’t mean radically changing brand position at the emergence of a new market segment either. It actually means having one in the first place, forming solid bedrock on which to build and execute strategy that stays rooted in that position no matter what the world of the time looks like.
New buyers will be attracted, a portion of the current buyers will adapt, though some will desert you, over time, where they disagree with how the brand position is represented in order to be relevant to those emerging markets.
This is an unavoidable, necessary, strategic fact to a brand that wants to stick around and stay wanted.
Depending on the reach and breadth of the brand, this can be open to being highly politicised, at the very least social. Nike appears to have embraced that almost from the outset, and inked it into their playbook under the heading “community values”.
Its advertising and marketing communications, the big steps at least, have often made a social statement, grounded in what the brand promotes are its values and beliefs, to tap into the emotions of the invited.
In 1988 its first campaign to carry the now iconic line “Just Do It”, featured an 80-year old man who’d run 62,000 miles in his lifetime as a social commentary on issues about ageism.
Since then and for the past 30 years, Nike has featured HIV-positive athletes, disabled athletes, asked whether professional athletes should be held so highly in regard as role models and tackled broadly topical issues such as gender in organised sport, female participation in sport and racial equality (both domestically and internationally).
The most recent campaign is no different.
It taps into social topics of the day, which is a proven way to amplify and reach.
In that context it’s not controversy for controversy’s sake. It isn’t even particularly daring for Nike.
Absent media hype and attention, all Nike has done is stuck to their tried and true marketing strategy, steeped in and resulting of a long run brand position, and that’s a relative rarity amongst brands.
That said it is courageous. Courage as a brand is a critical requirement for forming and forming with changes in social, economic and the subsequent market and segment changes.
There was a risk in how Nike executed their strategy through the most recent campaign. The tap-in issue was as hot and political as it could get even before Nike fanned it.
Which means that it’s a calculated, strategic move that’s been part of Nike’s playbook for pretty much ever.
That brings us to the second lesson, and that is, to win and thrive in the economic stakes, they did the math, quantified the risk and used ROI in the right way.
First, consider that the majority of Nike’s customers are under 35 and this is a critical piece of starting data they already know.
Second, in a recent survey by CNN-SSRS, 62% of 18-34 respondents registered as positive towards the action of Caepernick taking a knee during games.
These are critical pieces of data. Very accessible and very, very uncomplicated.
Scott Galloway, a professor at NYUs business school put those and Nike’s global revenue together in a recent post, which correctly considered international sales markets.
From that post:
“Nike registers $35B in revenues — $15B domestically and $20B abroad. Two-thirds of Nike consumers are under the age of 35. A younger consumer who can afford $150 Flyknit racers likely has substantial disposable income and lives in a city. The term for this cohort? Progressive.
Of the $20B international customer base, how many believe the US is currently a "beacon on a hill" and is handling race issues well? I'll speculate, none.
Nike has risked $1-3B in business to strengthen their relationship with consumers who account for $32-34B of their franchise.”
So, even when the stakes are high and the numbers so big, the calculation of risk and ROI is, conceptually, relatively simple when putting customer data together with the domestic US revenue in particular (where the only real risk exists).
The soup doesn’t need to be stirred too much.
And while one swallow does not a summer make, the sales and stock price lift following the campaign (31% versus same time last year and an all-time high of near $84 respectively), need to be viewed as proof of success.
So while sales and stock price, two very important KPIs of a publically traded company, rose, the critical ROI story is in the risk of $1-3B in business to further galvanise their appeal with those who will account for the majority of their economic results now and into the future.
Simple as it is on face value, with revenues and market capitalisation on the numbers Nike has, they can ill-afford to be completely wrong. Though can any brand be?
Even if you aren’t anywhere near the size of Nike, the economics of figuring out the ROI impact of marketing activity, let alone strategy, should never be absent from decision-making, nor should the concept of focus and sacrifice to ensure brand relevance over time.
Concluding, take from Nike that:
Having a single-minded brand position does pay off in the long run
Always develop and execute strategy between the guard rails of said brand position
Stand firm and courageous in the knowledge that sacrificing something that seems good or easy in the short term, is necessary for focus on long running survival
Be prepared to quantify economics, risk and presentation of ROI.
As a marketer, make a stand within the organisation for strategic marketing that nurtures brand position and appeal over the long term.
As custodian of the brand’s position, agitate to ensure alignment to those ideals even when the sales curve starts sliding and the calls for short termism increase.
* David is an accomplished marketing leader with over 15 years experience leading the creation, design and management of integrated marketing and communications strategy.
With experience in verticals and brands that include consumer products and services (retail and trade), automotive, motorsport, transportation and entertainment, David can claim to a strong record of achievement as a strategically-focused (sprint and long game) marketing and communications team leader and mentor.
Invite, Entertain, Interact, Experience, Engage, Motivate is David's mark and the ties that bind his MO for delivering success through marketing.