Nike Presence, Marketing, and Advertising Strategies in Canada

Abstract

Nike is one of the most well-known brands in the world and has a wide-reaching presence, with over $30 billion in revenue and over 2.5 million employees. Moreover, it is an international company that earned an estimated revenue of USD 31 billion in 2018, employing over 2 million people worldwide. Nike’s marketing strategies are entirely diverse, with many different advertising approaches. Still, their presence in Canada is not as strong as it could be due to a lack of advertising expenditures. This paper will outline these strategies, including Nike’s dedication to social media engagement and a comprehensive recommendation of the most effective advertising methods.

Keywords: Nike, marketing, advertising, social media

1.0 Introduction

Nike is a multinational corporation that designs, develops, and markets athletic footwear, apparel, equipment, and accessories. The company was founded in 1964 by Phil Knight and Bill Bowerman under Blue Ribbon Sports. The name was later changed to Nike in 1971 (Nguyen, 2023). In Canada, Nike first began selling its products in the 1980s. The brand quickly gained popularity among Canadian consumers, and Nike Canada was officially established in 1988. Since then, Nike has become one of Canada’s most recognizable and popular athletic brands, with a significant presence in the country’s sports and fashion markets.

Regarding marketing strategy, Nike has always focused on creating a strong brand image through its advertising campaigns. The company is known for its high-profile celebrity endorsements, including Michael Jordan, Serena Williams, and LeBron James. Nike has also launched several iconic advertising campaigns, such as “Footballers,” which has become synonymous with the brand.

In recent years, Nike has expanded its marketing efforts in Canada to include digital and social media marketing and experiential marketing. For example, the company has launched several pop-up shops and immersive experiences in major Canadian cities, including Toronto and Vancouver, to promote new products and future launches and enhance consumers’ engagement more personalized way. This paper aims to outline Nike’s presence in the Canadian market, assess its wide-reaching strategies, and detail its strengths and weaknesses in advertising in Canada. The major components of this paper will be; a discussion on what differentiates Nike from other brands, a discussion on the types of media used by Nike as well as some basic strategies for marketing.

2.0 Perpetual Comparison

Here is a two-dimensional perpetual map comparing Nike with its competitors in Canada based on two attributes: product quality and Price.

High Quality

Low Price | High Price

Adidas Under Armour

In the map above, Nike is positioned in the upper right quadrant, indicating that it offers high-quality products at a relatively high price point. Adidas is in the lower right quadrant, offering high-quality products at a slightly lower price than Nike. Under Armour is positioned in the upper left quadrant, offering lower-quality products at a high price point. Based on the data, the notable recommendations are:

1. Nike should continue to focus on product quality and innovation. Gritsuk et al. (2022) iterate innovation and quality as the fundamental factors that set brands apart.
2. Moreover, Nike should consider adjusting its pricing strategy to be more competitive. Compared to Adidas, Nike’s pricing strategy on select items is exorbitant. By striking a balance compared to other products, Nike could capture a larger market share in its emerging range of products and services.
3. Similarly, the brand should continue emphasizing its value proposition, highlighting that it offers high-quality products at a lower price than others.
4. Lastly, Under Armour should focus on improving its product quality and adjusting its pricing strategy to align with competitors. Its current positioning may need to be revised in the long term.

3.0 Marketing Campaign Analysis

3.1 Nike’s “Footallverse” campaign.

Nike’s “Footballverse” campaign was launched in 2020 as a part of their marketing strategy to promote their football-related products, particularly their Phantom Venom and Phantom GX football boots. In addition, the campaign aimed to engage fans worldwide through a virtual football world featuring a range of football, gaming experiences, and interactive content. As a result, two predominant products emerged, the Nike Phantom GX and the Nike Phantom Venom.

Image 1.1; Nike Phantom GX Image

2.2 Nike Phantom Venom

3.1.1 Purpose of the campaign.

Nike’s “Footallverse” campaign aims to inspire and motivate people to pursue their passions and push their limits. The campaign aims to position Nike as a brand not just about sports but also about the attitude and mindset required to succeed in any aspect of life.

3.1.2 Target Audience.

The target audience for the “Footallverse” campaign is broad and diverse, ranging from athletes and fitness enthusiasts to anyone who aspires to achieve their goals and live a more active lifestyle. Nike’s marketing efforts focus on reaching a younger demographic, particularly millennials and Gen Z, who value authenticity, self-expression, and social responsibility.

3.1.3 Main marketing activities.

The “Footallverse” campaign is a multi-channel marketing effort that includes a variety of activities such as:

Advertising: Nike has created several iconic advertising campaigns under the “Footallverse” umbrella, featuring high-profile athletes and celebrities who embody the brand’s values of determination, perseverance, and innovation.

Social media: Nike uses social media platforms such as Instagram, Twitter, and Facebook to engage with its audience, share content related to its products, and promote its brand message. Nike also creates social media campaigns and challenges to encourage user-generated content and increase brand awareness through hashtags like #JumpWithUs.

Community involvement: Nike has developed a charitable partnership with Goodwill to encourage local youth to engage in athletics and sports, in addition to activities such as community events, charity runs and giveaways, and donations of sports equipment.

Analysis of the “Footallverse” campaign shows that the brand leverages digital media channels to promote its products and services through engaging content, connecting with consumers on a personal level by sharing their stories and aspirations through social media platforms, distributing images or videos of athletic demonstrations through Instagram or Facebook posts, or utilizing Twitter live streaming for sporting events such as the Olympics.

Sponsorships and partnerships: Nike has partnerships and sponsorships with several sports teams and leagues, as well as individual athletes and influencers. These partnerships help to extend Nike’s reach and promote its products to a broader audience.

Events and activations: Nike hosts and participates in several events and activations, such as the Nike Women’s Race Series and the Nike Training Club, to engage with its audience and promote its products more experientially.

3.1.4 Key Brand Touchpoints.

Nike’s “Footallverse” campaign relies on various approaches to reach consumers, including digital and social media. This channel is used extensively to create user-generated content that enhances Nike’s brand image, positioning the brand as a lifestyle brand that values authenticity and innovation. This is particularly evident through Nike’s Instagram campaign, #JustDoIt100, which invited users to post photos of selves living their best lives by following their passions and being active on social media. According to research by Seifried et al. (2021), Nike has partnered with several universities and high schools in Canada to promote physical activity, especially in football.

3.4 Analysis of Nike’s “Footallverse” campaign based on five marketing concepts.

3.4.1 Sensory marketing (attention).

Nike’s “Footallverse” campaign uses sensory marketing to grab the attention of its target audience. The campaign features high-energy visuals and inspiring messages that appeal to the emotions and senses of viewers. The use of bold typography, vibrant colours, and iconic imagery, such as the Nike swoosh, also helps to create a strong visual identity that is easily recognizable and memorable for Nike’s target audience. Moreover, the brand’s use of influencers and celebrities, such as Serena Williams, enhances Nike’s visual identity by increasing consumer engagement.

3.4.2 Classical conditioning (stimulus generation).

Nike’s “Footallverse” campaign uses classical conditioning to positively associate the brand with its products. The use of high-profile athletes and celebrities in the campaign, who are often seen wearing Nike products, helps to generate a stimulus that reinforces the brand’s image as a leader in the sports industry. The campaign also uses repetition to reinforce the message of “Footallverse,” creating a sense of familiarity and recognition among consumers.

3.4.3 Expectancy theory (motivational conflict).

Nike’s “Footallverse” campaign uses expectancy theory to create a sense of motivational conflict among its target audience. The campaign emphasizes the importance of pushing oneself to achieve personal goals and overcome challenges, which can create a sense of tension between one’s current state and desired state. This tension can motivate individuals to purchase Nike products to help them achieve their goals.

3.4.4 Actual/ideal self (social Comparison).

Nike’s “Footallverse” campaign appeals to its target audience’s actual and ideal self by promoting the brand as a symbol of achievement and success. The campaign uses social Comparison to create a sense of aspiration among consumers, who may view Nike products as a way to express their identity and reflect their desired image.

3.4.5 Personality (brand personality).

Nike’s “Footallverse” campaign has helped shape the brand personality of Nike as an innovative, inspiring, and empowering company. The campaign’s emphasis on pushing one’s limits and breaking through barriers reinforces Nike’s image as a company that is not afraid to take risks and challenge the status quo. The use of high-profile athletes and celebrities also reinforces Nike’s image as a leader in the sports industry, while the company’s focus on social responsibility and sustainability appeals to consumers who value ethical and environmental concerns.

3.4.6 Emotional marketing (appeal).

Nike also uses emotional marketing to appeal to its target audience in several ways. As discussed previously, the company recognizes that it takes more than athletic skill to be successful in sports and uses inspirational stories to highlight the hard work that goes into achieving a goal, the perseverance required to keep going when faced with adversity, and the determination required for one to achieve success. By incorporating these values into its products and marketing efforts, Nike appeals to the emotion of viewers and customers and helps differentiate its products from competitors.

3.4.7 Relationship marketing (trust).

Nike’s “Footallverse” campaign demonstrates a shift from the product entered marketing strategy. This is evident in how Nike engages with consumers through various channels, such as social media or sponsorships of sporting events and leagues. By doing this, Nike improves brand awareness and image and increases customer loyalty through an enhanced relationship built on trust and transparency.

Hence, the “Footallverse” campaign has successfully positioned Nike as a brand that stands for more than just athletic wear. The campaign’s inspiring message and solid visual identity have helped to create a loyal fan base and increase brand awareness and sales.

3.5 Evaluation of the Campaign.

The Footballverse campaign was effective in achieving its objectives because of various factors. These include enhanced awareness, engagement, media coverage, and targeted approaches.

Notably, the most predominant attribute of the campaign has been enhanced brand engagement. The “Footballverse” campaign enhanced Nike’s brand engagement with football fans worldwide in the virtual space. Through such an interactive virtual football world, the campaign created an immersive and engaging experience that enabled users to explore the world of football, showcase their skills, and compete with other users when there were many travel restrictions worldwide. Due to the coronavirus pandemic, physical activities were limited or restricted to emergency-only spaces- the Footallverse bridged this gap. This helped to increase brand engagement and foster brand loyalty among users.

Similarly, the campaign led to increased product awareness for Nike. For instance, the Footballverse campaign successfully promoted Nike’s Phantom Venom football boots and other football-related products (Amin, 2022). By incorporating various football challenges and experiences in the virtual world, the campaign showcased the performance and features of these products, making them more attractive to potential customers.

Social media buzz: The “Footballverse” campaign generated significant buzz, with many football fans and influencers sharing their experiences on social media platforms like Instagram and Twitter. This helped to increase brand visibility and generate positive word-of-mouth publicity for Nike.

Innovativeness: The campaign was innovative in its approach, leveraging technology and gamification to create an interactive and immersive user experience. This helped to differentiate Nike’s brand from its competitors and reinforce its image as a brand that is innovative, creative, and futuristic.

A targeted approach: The campaign targeted football fans, a highly passionate demographic about the sport and its related products. The campaign’s focus on football-specific experiences and challenges helped to resonate with this audience and create a stronger connection with them.

Overall, Nike’s “Footballverse” campaign effectively enhanced brand engagement, increased product awareness, generate social media buzz, showcased innovativeness, and adopted a targeted approach. Therefore, it can be considered a successful marketing campaign for Nike’s football-related products.

4.0 Measuring Attitude.

The Fishbein model is a tool used to measure consumer attitudes towards a brand or product by assessing their beliefs about various attributes and the importance they place on those attributes. It is based on the idea that consumers evaluate products based on their perceived benefits and drawbacks, and the model provides a way to quantify these evaluations. Based on four determinant attributes, we will use the Fishbein model to measure consumer attitudes toward Nike and its competitors. The initial stages of developing the concept are illustrated below.

To calculate the overall attitude score for each brand, we multiply the rating for each attribute by the importance score and then sum the results. The importance score is rated on a scale from 1 to 10, where 10 represents the highest level of importance.

From the Fishbein model, we can learn the following:

• Nike has the highest overall attitude score, indicating that consumers perceive it as the most favourable brand among its competitors.
• Comfort and style are the most important attributes for consumers when choosing a sports apparel brand, as reflected in the high importance scores for both attributes across all brands.
• Price is less important than durability, comfort, and style, as reflected in the lower importance score for this attribute.

4.1 Recommendations for the marketing manager.

Based on the results of the model, it is safe to say that Nike should;

• Continue to emphasize the importance of comfort and style in Nike’s marketing campaigns and product development, as these are the most important attributes for consumers.
• Maintain a competitive pricing strategy, as Price is still a factor consumers consider when making purchase decisions.
• Focus on maintaining the brand’s reputation for durability, as this is an attribute that consumers perceive as necessary and one where Nike has a competitive advantage.
• Consider ways to improve the brand’s performance in areas where competitors are perceived more favourably, such as Adidas’ higher rating for durability and Under Armour’s higher rating for Price. This may involve product innovation or pricing strategies that can help to address these gaps.

5.0 Evaluation of Advertisement.

Nike uses emotional appeal in all three advertisements to connect with its audience and create an emotional connection to the brand in three advertisements “Play New,” “You Can’t Stop Us,” and “Equality.” The source credibility is high in all three ads as Nike is a well-known and established brand in the sports industry. The argument in all three ads is one-sided, with Nike focusing on the positive aspects of their brand and the messages they are promoting. The comparative advertising strategy is not used in these ads, as Nike does not explicitly compare itself to other brands. Instead, they focus on promoting their own brand values and messaging. This strategy is known as identity advertising. The three ads are different in their format. The first ad is a story-based advertisement that follows star players worldwide and how they overcome challenges.

In contrast, the second ad is a more factual commercial with statistics and information on Nike’s social commitment toward equal rights. The music is upbeat and catchy, which makes it more memorable. The third ad focuses on the personal experiences of people who have been discriminated against due to their sexual orientation, with no product images shown throughout the entire advertisement. Instead of focusing on athletes or celebrities, as in most Nike advertisements, this time, they focus on bringing awareness to an issue that concerns many people worldwide.

5.1 “Play New” Campaign.

Source: The source of this advertisement is Nike itself to promote its brand.

Argument Presentation: Nike presents a one-sided argument by highlighting the benefits of playing new and trying new things. The ad focuses on the exhilaration of new experiences and how they can help individuals grow and improve. For example, by creating a virtual football world, Nike aims to showcase the qualities and skills required to be an athlete and to enable people to experience the sensation of long-distance runners. In addition, Nike’s campaign targets the youth through participatory marketing efforts such as the “The Video That Changed My Life” contest. The contest aims to inspire teenage Canadians by featuring short videos created by young fans of Nike’s products – highlighting how Nike products impacted them.

Additionally, to inspire and motivate people globally, Nike has launched various social media campaigns – such as #BestDayEver – encouraging people to share their stories on how Nike products impacted them. Another demographic that the campaign targeted was female athletes, who have seen Nike’s efforts to prioritize female athletes over male athletes. In addition, the campaign aimed to recruit and inspire individuals through personal stories.

Message Appeal: The emotional appeal is used in this ad by showing athletes in different sports trying new things and pushing their limits.

5.2 “You Can’t Stop Us” Campaign.

Argument Presentation: Nike presents a one-sided argument by highlighting how people can’t be stopped when they work together. The ad features a split-screen of athletes from various sports who come together to show that unity can overcome obstacles.

Message Appeal: The emotional appeal is used in this ad by showing athletes overcoming adversity and inspiring people to work together towards a common goal.

5.3: “Equality” Campaign

Argument Presentation: Nike presents a one-sided argument by emphasizing the importance of equality and how it should be embraced in sports. The ad features various athletes, both male and female, from different backgrounds and ethnicities.

Message Appeal: The emotional appeal is used in this ad by showing athletes coming together to promote equality and inclusivity in sports. The ad also uses a metaphor to compare the struggles faced in sports with those faced in society to emphasize the importance of equality.

6.0 Group Influence.

While Nike’s Phantom GX and Phantom Venom have o recognizable brand communities In Canada, Nike generally enjoys a unique community in the shoe-wear industry within the country. Nike’s Phantom GX and Phantom Venom are part of the brand’s soccer cleat lineup, which has a significant following among soccer players and enthusiasts in Canada. While there is no specific “brand community” for these cleats, there are several online communities and forums where users discuss and share their experiences with Nike soccer gear, including the Phantom GX and Phantom Venom. Some of these online spaces include the following.

NikeTalk: This online forum discusses various Nike products, including soccer gear (“NikeTalk, n.d.”). Several threads are dedicated to Nike soccer cleats, with users sharing their thoughts and experiences on the Phantom GX and Phantom Venom.

SoccerCleats101: This website features reviews, news, and buying guides for soccer cleats, including those from Nike. Users can leave comments and questions on the site’s articles, creating a community of soccer players and enthusiasts who share a passion for soccer gear.

Nike Canada Instagram: Nike Canada’s official Instagram account features posts and stories showcasing its soccer cleats, including the Phantom GX and Phantom Venom. Users can interact with the brand by leaving comments and tagging it in their posts, creating a sense of community around the Nike soccer brand.

While these communities do not specifically focus on the Phantom GX and Phantom Venom, they create a brand community around Nike soccer gear. Users can share their experiences with different Nike cleats, providing valuable feedback and recommendations to community members. Additionally, Nike’s marketing campaigns and social media presence help to create a sense of brand loyalty and community among its customers.

6.1 Recommendation for Managers.

Nike could create more targeted content and campaigns focusing on the Phantom GX and Phantom Venom to further improve its brand community. This could include partnering with soccer influencers or content creators with a solid following among soccer players and enthusiasts in Canada and showcasing user-generated content featuring the cleats on its social media channels. Additionally, Nike could consider creating a dedicated online forum or community for soccer players to discuss and share their experiences with Nike soccer gear, further strengthening its brand community and providing valuable feedback for future product development

7.0 Demographics

Nike’s Phantom products, including the Phantom GX and Phantom Venom, target a specific demographic of soccer players and enthusiasts. Moreover, Nike’s Phantom products target a specific demographic of serious soccer players and enthusiasts who value quality, prestige, and brand image in their soccer gear. The following is an analysis of how different demographic factors determine the target consumers for these products:

Income: The Price of Nike’s Phantom products is relatively high compared to other soccer cleats, ranging from around $150 to CAD 275. As a result, the target consumers for these products are likely to be those with higher incomes willing to pay a premium for high-quality soccer gear.

Social class: Nike is a premium brand associated with status and prestige. As such, the target consumers for the Phantom products will likely be those in the middle to upper classes, who value brand image and quality.

Financial structure: Nike’s Phantom products are luxury items that are not necessary for playing soccer. As such, the target consumers for these products are likely to have disposable income that they can use to purchase these high-end soccer cleats.

Age: Nike’s Phantom products target serious soccer players and enthusiasts who are typically in their teens or twenties. This is because these players are more likely to be actively involved in competitive soccer and, therefore, more likely to invest in high-quality soccer gear.

Based on this analysis, the target customer profile for Nike’s Phantom products can be summarized into the specific umbrella of persons through the following lens.

• Demographic: Male or female soccer players and enthusiasts aged between 16 and 30.
• Psychographic: Those who value quality and prestige in soccer gear are willing to pay a premium for it.

• Behavioral: Those who play soccer at a competitive level or are passionate about the sport are likely to invest in high-quality soccer gear.

• Socioeconomic: Those in the middle to upper classes who have disposable income to spend on luxury items such as high-end soccer cleats.

By understanding the target customer profile, Nike can create more targeted marketing campaigns and develop products that meet the specific needs and preferences of this demographic

8.0 Local Community Strategies

Canada is a culturally diverse country with distinct regional and linguistic differences that may require tailored marketing strategies to target consumers effectively. By adopting a localized strategy, Nike can ensure its marketing efforts resonate with Canadian consumers and address their specific needs and preferences.

The cultural elements that may impact the marketing practices of Nike’s Phantom products in Canada include language, values, and sports culture in the following ways.

Language: – Canada has two official languages – English and French – and Nike may need to tailor its marketing messages to resonate with both language groups. For example, Nike may need to create separate marketing campaigns in English and French or ensure that all its marketing materials are bilingual to appeal to a broader audience.

Values: – Canada is known for its multiculturalism, inclusivity, and environmental consciousness. Nike may need to highlight these values in its marketing campaigns to appeal to Canadian consumers. For instance, Nike could showcase diverse athletes from different cultural backgrounds in its advertising or highlight the use of sustainable materials in its Phantom products.

Sports culture: – Canada has a strong sports culture, with hockey, soccer, and basketball being among the most popular sports in the country. Nike may need to tailor its marketing efforts to reflect these preferences and highlight the features of its Phantom products relevant to these sports. For example, Nike could create separate marketing campaigns for each sport or highlight the versatility of its Phantom products that can be used in multiple sports.

Moreover, Nike must further differentiate its products from its competitors and create unique marketing strategies that resonate with the Canadian consumer to continue growing its market share. This is backed by the fact that the brand has reached a saturation point in Canada, and further growth is limited.

The critical success factors for Nike’s corporate social responsibility initiatives in Canada are likely to include at least one of the following key elements:

• Nike’s product innovations will be driven by engaging soccer players and enthusiasts through innovative designs and technical innovations.
• Utilizing soccer influencers as a way to drive marketing campaigns for new and existing products poised to meet the needs of local soccer fans is likely to increase brand name recognition among consumers.

9.0 Conclusion

In conclusion, Nike’s presence and marketing strategy in Canada has been highly successful, as the brand continues to dominate the country’s sports and fashion markets. Nike’s entry into the Canadian market has greatly benefited from its ability to deliver high-quality products that meet the needs of soccer players and enthusiasts in Canada. Furthermore, Nike has benefited from its ability to effectively reach critical consumers through targeted marketing campaigns and collaborations with celebrities and soccer influencers like David Beckham and Christiano Ronaldo. These factors have propelled Nike to achieve high brand recognition among consumers and cement its market position in Canada. With a highly saturated market in Canada, Nike will need to differentiate its products from competitors further and create unique marketing strategies that resonate with the Canadian consumer to continue growing its market share.

10.0 References

“NikeTalk.” NikeTalk, niketalk.com/.

Amin, Omar. “Nike’s Footballverse 2022 World Cup Ad Is a Masterclass in Marketing.” Think Marketing, 17 Nov. 2022, thinkmarketingmagazine.com/nike-footballverse-2022-world-cup-ad-is-a-masterclass-in-marketing/.

Seifried, Chad, et al. “Sport Management and Business Schools: A Growing Partnership in a Changing Higher Education Environment.” The International Journal of Management Education, vol. 19, no. 3, Nov. 2021, p. 100529, https://doi.org/10.1016/j.ijme.2021.100529.

Gritsuk, Natalia, et al. “THE INNOVATIVE APPROACH to MANAGING the PRODUCT QUALITY in the DIGITAL ECONOMY: INTELLECTUAL ACCOUNTING and AUDIT.” International Journal for Quality Research, vol. 14, no. 2, 1 June 2020, pp. 543–558, https://doi.org/10.24874/ijqr14.02-13.

Nguyen, Q. (2023). A research on controversial marketing of Nike.