About the Print Advertisement:
The print advertisement we chose was the Colin Kaepernick Nike 30th year anniversary. The ad agency that created this print media for Nike is Wieden+Kennedy. Wieden+Kennedy was established in April 1,1982 in Portland, Oregon and has many offices around the world, their offices can be found in Amsterdam, New York, Portland Tokyo, London, Shanghai and Delhi. (Wieden+Kennedy) They are a predominant ad agency as they have a diversity cliental from different industry. The target market for this ad is primary to NFL fans, as Colin Kaepernick have been a hot topic on sports talks shows as they explained his external struggle with the NFL organization and the legal issues from Colin Kaepernick suing the NFL for blackballing him from not resigning him. The type of positioning that Nike decided from this print advertisement is customer perception. Nike strategically picked Colin Kaepernick to be the face of this advertisement and the audience are paying close attention to Colin Kaepernick legal battle. They are standing and supporting Colin Kaepernick and all the issues that Colin Kaepernick is fight against. (Creswell 2018)
The message of the advertisement that we chose to do which was released on September 4, 2018 just two day before the NFL 2018-2019 season begins. The face of the print advertisement is a former NFL player, Colin Kaepernick played for the 49ers and he is allegedly blackballed from the NFL for his movement that he was pushing at the games. Colin Kaepernick took a knee while the national anthem was playing before the game. He did this because of police brutality against young African throughout America. (Ferreras 2018) Nike’s message is to show the world that they are standing with Colin Kaepernick through this problem.
The advertisement is Colin Kaepernick face with the tagline on his face which said “Believe in something. Even if it means sacrificing everything” (Nike) and then below his chin it the Nike logo and their catch phrase “Just do it”. The tagline has importance to Colin Kaepernick movement as he gave up his dream job and something he wanted since he a little boy he wants to play professional football, and he gave up his dream for a cause he believed in and he sacrificed everything he had. The tagline is referring to Colin Kaepernick situations with the NFL and his battle between the NFL.
The weaknesses and a couple issues that are brought up from this specific print advertisement is the controversy around Colin Kaepernick. People that disagree with him drop a knee while the America anthem before the games, which made people see it as a disrespectful action to their country. They did not like that fact that a company that is heavily involved with the NFL and a proud American company will support someone that disrespecting their country. After finding out that Nike supports Colin Kaepernick when they decided to put him as their face of the 30th year anniversary, many angry fans decided to boycott the brand entirely and in many extreme cases many previous customers burned their Nike gear. (Ferreras 2018)
• As of 2018, Nike has become the most popular global apparel brand, with a brand value of 28 billion dollars. (BrandonGaille)
• Footwear leads their market revenue, with 54%, followed by apparel which is 27%, equipment with 6%, and 13% for other goods. (UKEssays.com)
• Their main focus is consumers who partake in action sports, basketball, Soccer, men’s training, running, sportswear and women’s training (UKEssays.com)
• Majority of buyers are 18-40 years of age. (UKEssays.com)
• 55.38% of high earners said they owned some type of product from Nike. (UKEssays.com)
• The United States is their leading country in terms of market, with 42% of their total revenue (Statista)
• 48% of the American footwear market is owned by Nike (Nike, Jordan, Converse) (Leach 2015)
• 96% of the basketball apparel market is owned by Nike/Jordan (Leach 2015)
• Statistics show Nike will continue leading the market in North America and predicted in 2020 to have $50 billion in revenue for that one fiscal year. (Leach 2015)
• However, Adidas poses a large threat to the brand in regard to Kanye West producing exclusive shoes “Yeezys”
• Nike still is the leading active sportswear in north America generating 3.74 billion dollars’ worth of sales, followed by their rival Adidas only generating 877.6 million. (Fortune)
Nike INC. was founded on September 8, 1969 and has built their brand by selling athletic footwear, athletic accessories, athletic clothing and athletic equipment. Nike owns brands which include Jordan Brand, Converse, Hurley, and NIKE Brand. (Nike) Currently, Nike sell in different markets including North America, greater China, Eastern Europe, Western & Central Europe, Japan and other emerging markets around the world. (Statista) As stated by NIKE on May 31, 2016 the company has decided to focus on 9 different product categories: Running, soccer, basketball, men’s training (working out), Jordan Brand, women’s training, action sports, sports – wear, and golf. (Nike) Another huge market and profile that Nike is associated with is sponsorship and licensing agreements with professional sports teams and college/university teams to sell their logo. (Nike)
• Nike holds a high status when it comes to branding all over the world
• There are so many different customers that Nike targets their products too (Nike)
• They are able to create and innovate in order to keep loyal customers
• Found a way to tie nostalgia in with their products (Nike)
• Connecting their products with famous athletes, celebrities, and music artists which drives up the demand for these products (for example Kanye West sneakers “Yeezys”) (Nike)
• Other fashion designers and brands collaborating with Nike like Off-White and Levi’s help promote each other with limited edition products (Nike)
• Nike has a huge following of people who are not afraid to stand behind their brand (fans burning their Nike jerseys in flames because of the recent Colin Kaepernick ad) (Global News)
• Lining up outside of stores for hours or days to be able to purchase a new sneaker
• Adidas has posed as a competitor for Nike since they both started gaining market share (Fortune)
• As of recently Nike was still able to make more sales than Adidas at $15 billion compared to $5 billion (Fortune)
• Adidas is starting to regain market share through popular products like the new innovation of Boost technology (Adidas)
• The feud between Nike and Adidas has customers waiting to see what kind of products get put out from both sides (Adidas)
• Which influencers can each side recruit in order to generate for hype. For example, Nike has Michael Jordan and Cristiano Ronaldo while Adidas has James Harden and Lionel Messi (Nike) (Adidas)
Target Market Profile:
Demographic segmentation -Nike primary targets both female and male between the ages from 15-40.
– The generation the people will fall under is generation Y to generation Z (1977- 2018).
– The income of the target market is between the price range $30,000-$75,000 (BrandonGaille)
Psychographic segmentation -The psychographics segmentation for Nike is they are trying to target people with a sports/casual lifestyle with the type of sportswear they are offering from running shoes, athletic clothing, sports gears etc. (BrandonGaille)
behavioural segmentation -The behavioural segmentation for Nike is they have created a huge customer loyalty by sell footwear or athletic wear with good materials and an overall reliably company.
-The rate of usage of the Nike products is heavy as Nike makes product that we need to use every day which clothing is. (Reuters)
geographical segmentation The geographical segmentation that Nike targets is large urban cities, Nike focuses on highly populated city to place they’re their specialized Nike stores for example Nike Toronto, NYC, Los Angeles etc. (Nike)
Since the backlash that Nike has taken after releasing the Colin Kaepernick ad these are the reactions of the public that do not support Kaepernick’s movement. The Colin Kaepernick movement has been a very controversial topic as some say that he is disrespecting the American national anthem while he is just protesting for African American rights. We knew this was going to be a controversial advertisement that would offend a specific group of people when broadcasted, some problems include:
• Nike lost 4% in NIKE Stocks after the broadcast of the ad (Maglio 2018)
• Movement was created “#Boycott Nike” (Maglio 2018)
• Fans against Colin Kaepernick movement burned Nike jerseys and products (Maglio 2018)
• Fans accuse Nike of being “Anti-American” company (Maglio 2018)
In order to gain back their trust Nike will be addressing the claims against the advertisement about them being “Anti-American” in their new advertisement they will release in order appeal to all segments in the market that the advertisement affected.
The first ad we created we do not regret the content of the advertisement. We think it achieved the message we are trying to send out, but unfortunately it didn’t resonate well with certain aspects of our demographic to be more specific the people that are against Colin Kaepernick movement. We have to fix our wrongs and create an ad to answer some of the fans issue with the ad for example to shows Nike is an all-American sportswear company and we are proud to be one. The new ad we will create to please the masses and will have the following:
• Show appreciation for the American Flag
• Have old film from the an old Olympic where athletic are preforming in Nike Gear
• Show many major American football teams’ player of any ethnicity standing for the national anthem in their Nike gear
• Saying that that Nike love football and respect all players, and we don’t condone violence against any race.
• Show famous American football players telling the camera they love America and be a part of Nike family.
• Finally, at the end of the advertisement saying that Nike will always support all players, that they respect the game of football and love America.
Nike positioning is “for serious athletes, Nike gives confidence that provides the perfect shoe for every sport”. (NIKE) The positioning statement is effective as it clearly states to the consumers what Nike is trying offer to their consumers is it simple and concise.