  {"id":13000,"date":"2020-04-30T18:51:03","date_gmt":"2020-04-30T22:51:03","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-digit\/submission\/nike-just-do-it-differently\/"},"modified":"2020-04-30T18:51:03","modified_gmt":"2020-04-30T22:51:03","slug":"nike-just-do-it-differently","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-digit\/submission\/nike-just-do-it-differently\/","title":{"rendered":"Nike: Just do it. Differently!"},"content":{"rendered":"<p><strong>Just do It, at Home!<\/strong><\/p>\n<p>Nike is well known for its branding, marketing and advertisement strategy, which is considered a best practice by many scholars and practitioners in the marketing space.\u00a0 From a simple and powerful logo that represents the iconic brand, to a long-lasting slogan that calls for action and attitude. At the same time, the company associates its image with high performance athletes and a lifestyle that everyone somehow pursues.<\/p>\n<p>The company\u2019s main slogan \u201cJust do it\u201d, created back in 1987, calls for movement, action, empowerment and initiative. So, what about now, during the COVID-19 pandemic, when everybody is stuck at home? without gyms, without social gathering, no jogging and no social interactions where you would have the opportunity to show off your new Nike air? How to send its message and keep customers engaged while they pretty much stay at home?<\/p>\n<p><strong>Impact of COVID-19<\/strong><\/p>\n<p>Just like many other companies in the consumer and fashion industry, Nike was heavily affected by COVID-19 lockdown. As a global brand with 1,100 stores, Nike closed more than half of stores in China as early as February to protect its employees;\u00a0 and decided, by mid-march to close all stores in the US, as the virus started to spread in the country. Even for stores that remained opened, the foot traffic has declined significantly.<\/p>\n<p><strong>\u00a0<\/strong><strong>Nike\u2019s response<\/strong><\/p>\n<p>In response to the pandemic, Nike boosted its digital strategy and its direct sales, and adapted its message to the \u201cnew normal\u2019. Nike created different digital spaces for customers to interact with the brand\u2019s big influencers: the high-performance athletes.<\/p>\n<p>With slogans like: \u201dPlay inside\u201d, \u201c Play for the World\u201d, \u201cYou can\u2019t stop us\u201d featuring athletes and regular people playing in their living rooms or backyards, Nike is reducing the distance between these athletes and their customers and keeping customers engaged during lockdown.<\/p>\n<p>The company also deployed many digital contents and platforms for free:<\/p>\n<ul>\n<li><strong>\u00a0Nike\u2019s digital ecosystem<\/strong>: A library of digital workouts and resources for free, including <a href=\"https:\/\/www.nike.com\/nike-app\">Nike App<\/a>, Nike Training Club App (<a href=\"https:\/\/www.nike.com\/ntc-app\">NTC<\/a>), Nike\u00a0 Running Club App (<a href=\"https:\/\/www.nike.com\/nrc-app\">NRC<\/a>), social channels, nike.com , and its podcast <a href=\"https:\/\/podcasts.apple.com\/us\/podcast\/trained\/id1414073313\">TRAINED<\/a>.<\/li>\n<li><strong>\u00a0Livestream workouts. <\/strong>Live workouts are streamed every Saturday by Nike Master Trainers for free <a href=\"https:\/\/www.youtube.com\/playlist?list=PLNqKTn4CuEXdcqbJINlNNsFmhMQRBFcsV\">on the Nike Youtube channel<\/a>.<\/li>\n<li><strong>\u00a0<\/strong><strong>Digital Fitness Challenges<\/strong>. A flagships initiative during the COVID lockdown has been the <a href=\"https:\/\/news.nike.com\/news\/nike-living-room-cup\">The Living Room Cup<\/a>\u2013 a digital workout series where athletes set challengers for users to take part in at home. Global Athletes like Lebron James or Cristiano Ronaldo stream themselves doing a workout and challenge users to compete against them. Players can share their results on their Instagram profiles using the hashtags #playinside and #thelivingroomcup.<\/li>\n<\/ul>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/NIKE_THE_LIVING_ROOM_native_1000.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-13004\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/NIKE_THE_LIVING_ROOM_native_1000.jpg\" alt=\"\" width=\"501\" height=\"358\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/NIKE_THE_LIVING_ROOM_native_1000.jpg 1000w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/NIKE_THE_LIVING_ROOM_native_1000-300x214.jpg 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/NIKE_THE_LIVING_ROOM_native_1000-768x548.jpg 768w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/NIKE_THE_LIVING_ROOM_native_1000-600x428.jpg 600w\" sizes=\"auto, (max-width: 501px) 100vw, 501px\" \/><\/a><\/p>\n<p>Just like its slogan says, Nike campaigns are not only informative, they are actually pushing customers to do something! \u00a0Using the COVID-19 as a marketing campaign may seem opportunistic, but for Nike, it goes beyond that, it is a matter of connecting to customers and keeping the business and the brand alive in customer\u2019s mind !<\/p>\n<p>If you can make some sales in the process, much better!<\/p>\n<p>So, the question is: Is this working? Is the company able to monetize it?<\/p>\n<p><strong>Recent Results<\/strong><\/p>\n<p>Nike stocks recently soared 11% in the latest earnings announcements, reflecting an increase in online-order and passing Wall Street estimates. It is clear that Nike is taking the opportunity of COVID-19 to engage even more with customers and to expedite its online sales.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/nike-stocks.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-13003\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/nike-stocks.jpg\" alt=\"\" width=\"438\" height=\"246\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/nike-stocks.jpg 620w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/nike-stocks-300x168.jpg 300w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/nike-stocks-600x337.jpg 600w\" sizes=\"auto, (max-width: 438px) 100vw, 438px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><strong>The \u201cDigital Transformation\u201d at the forefront of Nike\u2019s brand strategy <\/strong><\/p>\n<p>The digital offerings Nike is leveraging during the Pandemic is not an isolated initiative, it is a result of a &#8220;digital transformation&#8221; that has been in the forefront of Nike&#8217;s brand strategy for several years now.<\/p>\n<p>Nike has put digital in the center of its strategy as a key enabler of the so-called &#8216;Consumer Direct Offense&#8217;. The plan is to improve its digital marketplace toward boosting online direct sales model, and cutting back on certain parts of its wholesale business.<\/p>\n<p>In that same line, the company recently announced its new CEO, appointed in October 2019. John Donahoe, a long-time tech executive has been on Nike&#8217;s board since 2014 and was president and CEO of eBay for seven years.<\/p>\n<p>Some of the other key elements and capabilities of the digital transformation at Nike are:<\/p>\n<ul>\n<li><strong>Social commerce<\/strong>. The numerous mobile apps and platforms create an ecosystem that integrate the social component with shopping-centric apps and convert customer\u2019s engagement into sales.<\/li>\n<li><strong>\u201cSneakerheads\u201d Platform. <\/strong>The launch of the <a href=\"https:\/\/www.nike.com\/snkrs-app\">SNRKS<\/a> app, intended for \u201csneakerheads\u201d, offering limited-release, high demand shoes for its most-engaged customers is being used as a key source of ideas and suggestions for new designs to a bigger customer base.<\/li>\n<li><strong>Analytics.<\/strong> Nike uses its digital ecosystem to collect data in every interaction and in its different channels, to identify customers preferences and to design new products.<\/li>\n<\/ul>\n<p><strong>Conclusion<\/strong><\/p>\n<p>Nike has been one of the few companies that spot on with its response to \u00a0COVID-19 by showing social responsibility when closing stores early, creating new space to engage with customers during the pandemic, and by taking the opportunity to expedite its digital transformation. The world will be different after COVID-19, and Nike wants to keep its place as an iconic brand and a company that sells a lifestyle that still make sense in the \u201cnew normal\u201d.<\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/MESSAGE.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-13002\" src=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/MESSAGE.png\" alt=\"\" width=\"510\" height=\"275\" srcset=\"https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/MESSAGE.png 306w, https:\/\/d3.harvard.edu\/platform-digit\/wp-content\/uploads\/sites\/2\/2020\/04\/MESSAGE-300x162.png 300w\" sizes=\"auto, (max-width: 510px) 100vw, 510px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>Nike News. \u201cAll The Ways Nike Is Helping Athletes Play Inside \u2014 for the World.\u201d<a href=\"https:\/\/news.nike.com\/news\/nike-play-inside-play-for-the-world\">https:\/\/news.nike.com\/news\/nike-play-inside-play-for-the-world<\/a>.<\/p>\n<p>Bain, Marc. \u201cNike\u2019s App for Sneakerheads Is Fueling Its Digital Business.\u201d Quartz. <a href=\"https:\/\/qz.com\/quartzy\/1655111\/nikes-snkrs-app-is-fueling-its-digital-business\/\">https:\/\/qz.com\/quartzy\/1655111\/nikes-snkrs-app-is-fueling-its-digital-business\/<\/a>.<\/p>\n<p>\u201cNike\u2019s Digital Strategy Is to Treat Everyone the Way It Treats Sneakerheads.\u201d Quartz. <a href=\"https:\/\/qz.com\/quartzy\/1747382\/how-nikes-snkrs-app-community-inspired-its-digital-strategy\/\">https:\/\/qz.com\/quartzy\/1747382\/how-nikes-snkrs-app-community-inspired-its-digital-strategy\/<\/a>.<\/p>\n<p>Gillil, Nikki. \u201cHow Nike Is Striking the Right Tone with Its Response to Covid-19.\u201d <em>Econsultancy<\/em> (blog), April 15, 2020. <a href=\"https:\/\/econsultancy.com\/how-nike-is-striking-the-right-tone-with-its-response-to-covid-19\/\">https:\/\/econsultancy.com\/how-nike-is-striking-the-right-tone-with-its-response-to-covid-19\/<\/a>.<\/p>\n<p>Hanbury, Mary. \u201cAnalysts Say Nike\u2019s New CEO Choice Signals a Direction That Should Worry Some Mom-and-Pop and Department Stores.\u201d Business Insider. <a href=\"https:\/\/www.businessinsider.com\/nike-new-ceo-choice-digital-strategy-warning-retailers-2019-10\">https:\/\/www.businessinsider.com\/nike-new-ceo-choice-digital-strategy-warning-retailers-2019-10<\/a>.<\/p>\n<p>\u201cNike Leaps 11% After Results Suggest It\u2019s Weathering Virus Era.\u201d <em>Bloomberg.Com<\/em>, March 24, 2020. <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2020-03-24\/nike-sales-top-estimates-as-it-weathers-early-days-of-covid-19\">https:\/\/www.bloomberg.com\/news\/articles\/2020-03-24\/nike-sales-top-estimates-as-it-weathers-early-days-of-covid-19<\/a>.<\/p>\n<p>Mobile Marketer. \u201cNike Offers Workout App for Free as COVID-19 Keeps People Indoors.\u201d Accessed <a href=\"https:\/\/www.mobilemarketer.com\/news\/nike-offers-workout-app-for-free-as-covid-19-keeps-people-indoors\/574721\/\">https:\/\/www.mobilemarketer.com\/news\/nike-offers-workout-app-for-free-as-covid-19-keeps-people-indoors\/574721\/<\/a>.<\/p>\n<p>Rival IQ. \u201cWhat You Can Learn from Nike Branding Strategy,\u201d March 16, 2018. <a href=\"https:\/\/www.rivaliq.com\/blog\/nike-branding-strategy\/\">https:\/\/www.rivaliq.com\/blog\/nike-branding-strategy\/<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nike is responding to the COVID-19 by leveraging its digital resources to connect athletes with customers, strengthening its digital ecosystem and boosting online sales.<\/p>\n","protected":false},"author":12952,"featured_media":13012,"comment_status":"open","ping_status":"closed","template":"","categories":[1956,2849,372,1039],"class_list":["post-13000","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-branding","category-covid-19","category-fashion-retail","category-social-commerce","hck-taxonomy-organization-nike","hck-taxonomy-industry-fashion","hck-taxonomy-country-united-states"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-digit\/assignment\/digital-innovation-and-transformation-during-the-covid-19-pandemic\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Nike: Just do it. 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