Wednesday, March 3, 2010

Nike: How to "Just Do It"

My idea is to look at Nike to see the different ways they drive innovation through customer insights. I know from the attached articles that they are starting to do ethnographic studies, but how frequently and who are their prime targets? Whether it’s a new piece of clothing, or advertising, what research is being done to figure out what the customer’s needs are? I’d like to see in what areas they are focusing their customer innovation; clothing, sporting equipment, or a greater customer centric online presence. I’d also like to know if they have determined in which major category their customers fall in; people who are more drawn to the function of the clothing or people who like the brand for its recognition. Finally, I’d like to get a better understanding if their competitors are doing similar marketing research and what they are doing with the information.

The reason I am choosing Nike for my project is twofold. Firstly, they are my dream company to work for; I’d like to work for them as a national account manager dealing with key retail accounts. Secondly, as an industry leader, on the cutting edge of innovation, they tend to be on top of new trends in marketing. When a new concept of understanding customers is available, they are among the first companies to explore its applications.

The first article I am using as a reference is called The Nike Project. The study, commissioned by Nike, was done by a youth focused marketing research company, J. Langvad & Co,. It focused on the FOT(the football obsessed teenager) in Latin America. The goals were to figure out what “teens need in order to go after their aspiration,” and to continue to authentically represent football (soccer) in Latin America. The study was the first ethnographic study for Nike. The researchers used the following tools:

Setting Invasion: They followed the FOTs pre-game to watch the set up and plays for the game, and look at their motivation to train for the game. They also followed them on their off time to get a more holistic understanding of the teens.

Photographic Study: They did a photo diary of the FOT to have a better visual understanding of the FOTs.

Virtual Ethnography: They asked them about their digital habits to make sure they had a robust understanding of the FOTs.
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The second article I am using is Interview with the Nike Marketing Director about Youth. Daryl Butler, the head of Nike Marketing, believes that youth are emotionally driven to brands. Young women are going to be more than 50% of high school sport participants, which will change the way that Nike markets. They are moving more to a digital and web focus, instead of solely traditional methods. Butler also cites the importance of just talking to the consumer. He strongly believes in honesty and accessibility for the youth customer. Finally, he knows that you must stay true to your core product, especially with youth.

2 Comments:

At March 3, 2010 at 7:45 AM , Blogger Aditi said...

The article links didn't work, so here they are:

http://jlangvad.com/projects/the-nike-project/

http://www.ypulse.com/ypulse-interview-daryl-butler-marketing-director-retail-brand-nike

 
At March 11, 2010 at 8:54 AM , Blogger stephen said...

Hi Aditi - I think we have already discussed this topic a little bit (over email, maybe) and I think it is great. I admit that I wouldn't be excited about a more general paper on Nike, but I really love the focus you're taking here (and that the focus is actually focused, if that makes sense). I'm also really happy that this will have personal relevance to you and am very excited to read the final product since I had not heard of this initiative at Nike (which, like I probably said before, is a little strange since I try to read all I can and see a lot about Nike). So, great idea and let me know how I can help as you build your outline. For your blog, I just want you to write a bit more in these - part of the exercise is to push you all to write more so that you'll explore your ideas more deeply.

 

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