Digital Marketing Communications (DMC) Plan for Nike

Executive Summary

Nike has developed a close bond with its target consumer, manufactured superior products, and
innovated to strengthen its brand. We examine Nike's present DMC strategies in this study and
pinpoint areas where the company may improve its market standing. We provide workable
suggestions to enhance Nike's digital marketing efforts after an in-depth analysis of the
company's website optimization, email marketing, social media presence, and search engine
exposure. According to this approach, Nike must embrace new market trends like sustainability
and personalized consumer experiences to keep its competitive edge in the quickly changing
digital ecosystem.

Introduction

Nike was founded in 1964 by Bill Bowerman and Phil Knight, and its main office is in
Beaverton, Oregon, in the United States.1 The business began by selling Japanese running shoes
under the Onitsuka Tiger (now ASICS) name. Knight believed that introducing premium,
affordable shoes from Japan would disrupt the U.S. industry, which is dominated by brands like
Adidas and Puma. BRS launched its own shoe line under the name "Nike," which is based on the
Greek goddess of victory, when their partnership with Onitsuka Tiger terminated in 1971.

The company specializes on athletic wear, which comprises apparel, accessories, footwear, and
other sports-related products. Nike has aggressively grown its market share globally since the
1970s. Nike's objective is to provide every Nike user the chance to express themselves and reach
their full potential, while its vision is to inspire and innovate for all athletes worldwide. 2 Nike has
thousands of retail locations, an extensive supply chain, and operations in more than 190
countries. It sourced products from almost 500 manufacturing plants in 41 different nations.
They work with well-known sportsmen, use slogans like "Just Do It," and interact with
customers directly on social media.

1
https://medium.com/exponential-edge/the-making-of-nike-3eee6e306745
2

https://www.researchgate.net/publication/361839396_The_brand_analysis_of_Nike_based_on_its_emotional_br
anding_and_marketing_strategies
Situational Analysis

Macro Environmental Factors

Economic Trends: Consumers are the primary group that suffers when prices rise because they
have less purchasing power as a result of inflation. According to the most recent data from the
Australian Bureau of Statistics (ABS), the monthly Consumer Price Index (CPI) indicator
increased 2.1% in the 12 months ending in October 2024. 3 However, the rise of athleisure can be
attributed to an increasing consciousness of the need of exercise and a healthy lifestyle.
Technological advancements: Nike Fit uses the camera of a smartphone to scan customers' feet
and provide precise shoe size recommendations. 4 Users who looked for Nike running shoes on
Naver's website were met with a generative AI-powered chatbot-style search engine. It handled
all aspect of the sales process, from recommending products to assisting consumers with
transactions, just like a brand manager would in a physical store.

Social responsibility: Nike announced a Move to Zero project through the Nike 2020 Future
Forum, committing to eliminate waste and carbon emissions in the future. All Move to Zero
goods are made from recycled polyester and sustainable cotton to lessen their impact on the
environment.5 Nike's dedication to innovative problem-solving in sustainable manufacturing is
demonstrated by the utilization of abandoned fishing nets in the production of sneakers, which
also addresses the issue of marine pollution.

Micro Environmental Factors

Competitive Landscape: Nike competes with both well-established companies and up-and-
coming startups. Five of its main competitors are Adidas, Under Armour, Puma, New Balance,
and Skechers.6 Adidas' competitive strategy focuses on increasing brand recognition, improving
the customer experience, and pushing the boundaries of sustainability. The business has made
significant investments in data analytics and artificial intelligence (AI) to support its marketing

3
https://www.abs.gov.au/media-centre/media-releases/monthly-cpi-indicator-rose-21-year-october-2024
4
https://www.forbes.com/sites/simonogus/2019/05/28/nike-looks-to-use-technology-to-help-prevent-ill-fitting-
shoes-with-nike-fit-app/
5
https://www.mdpi.com/2071-1050/12/20/8650
6

https://www.researchgate.net/publication/376131389_Analysis_of_Nike's_Marketing_Strategy_Based_on_Adoles
cent_Consumer_Psychology
and product development initiatives. The three main pillars of Under Armour's competitive
strategy are product line expansion, brand development, and innovation. Its marketing campaigns
mostly rely on high-profile collaborations and celebrity endorsements.

Shifting consumer preferences: Consumer demands are always changing; today's consumers
expect a seamless purchasing experience and want ease and customization in their dealings with
brands.7 Gen Z wants social justice, inclusion, and sustainability from brands. Brands
demonstrate their dedication by becoming involved in and sponsoring issues that resonate.

Digital trends: TikTok, a popular short-video platform, has a huge user base that gives businesses
like Nike and Adidas a very effective opportunity to interact directly with consumers. 8 Nike's
influencer marketing strategy has revolutionized the business by combining creativity,
teamwork, and authentic storytelling. Nike's collaborations with athletes and celebrities not only
resulted in a notable increase in revenue but also inspired a cultural movement that extends
beyond fitness and sports.9

Target market analysis

Demographics: Nike's target market is broad and varied, mainly consisting of people between the
ages of 15 and 45, while it also includes people outside of this range. The company focuses on
young male customers, who are often more engaged in sports and physical fitness activities, even
though it primarily serves both genders.

Psychographics: The business sells a mindset and a way of life in addition to sporting goods.
Nike has been successful in connecting with people who are motivated by the concepts of
"achievement" and "performance" through their marketing. As a result, they want to attract
consumers that respect performance, athleticism, and the pursuit of individual achievement.

7
https://www.forbes.com/councils/forbestechcouncil/2023/10/20/delivering-convenient-personalized-and-
seamless-retail-experiences/
8
https://www.shs-conferences.org/articles/shsconf/pdf/2024/27/shsconf_icdeba2024_01018.pdf
9
https://medium.com/@johnyjessy76/how-nike-revolutionized-marketing-through-influencer-partnerships-
de6289cb2fd
Behavioral segmentation: Nike finds trends in how customers buy, use, understand, and react to
its products. Nike uses this segmentation to better understand how consumers feel about their
brand and develop goods that will increase client happiness and loyalty.10

DMC Objectives

Nike's DMC objectives align with the SMART (Specific, Measurable, Achievable, Relevant,
Time-bound) framework:

 Increase website traffic by 20% in six months by using search engine optimization and
targeted advertisements.
 Throughout the next quarter, use gamification strategies and customized email marketing
campaigns to boost app conversions by 10%.
 Working with micro-influencers and focusing on user-generated content can help you
boost social media engagement by 15% over the course of a year.
Current DMC Analysis
Website design and conversion optimization: Nike website offers a modern, easy-to-use interface
that reflects the brand's inventive and sporty persona. It is enjoyable to explore for sportswear
and footwear because of its design, which places a high value on product images and user-
friendliness. Large, high-resolution product images and interactive features create a captivating
buying experience. Customers can quickly locate certain products on the well-structured website
due to its numerous categories, subcategories, and filtering options.

Social media marketing: Nike is one of the sports footwear and clothing companies with the
largest market share worldwide, and digitalization has changed consumers' buying experiences.
Nike has actively set up its social media matrix in response to the growing importance of social
media in order to draw in more potential customers and direct their purchasing demands using a
variety of marketing strategies.11 Nike has millions of supporters on its several social media

10

https://www.researchgate.net/publication/338370597_SEGMENTATION_TARGETING_AND_POSITIONING_STRATE
GY_OF_NIKE_BUYING_DECISION_ANALYSIS
11

https://www.researchgate.net/publication/375551990_The_Impact_of_Nike's_Social_Media_Marketing_Strategy
_on_Consumer_Demand
platforms. Nike's "You Can't Stop Us" campaign is a strong video promotion that seamlessly
blends together a variety of sports footage to show athletes overcoming obstacles.12

Recommendations

 24/7 chatbot: Chatbots are artificial intelligence programs created to imitate human
speech. They understand and interpret user input using natural language processing
technology, then generate answers using machine learning algorithms or pre-programmed
rules. Chatbots are extensively used in the customer care and sales industries. Consumers
value the ease with which chatbots can respond instantly and deliver necessary
information without the need for human assistance. Chatbots help organizations by
answering numerous client inquiries and lowering the need for more employees. They
can also be used internally to answer questions from employees and help with a variety of
activities.13
 Collaborate with Micro-Influencers: More durable and strategic approaches to working
with micro-influencers include forming long-term alliances and turning them into brand
ambassadors. By doing this, company may build a strong, long-lasting relationship with
them and give brand regular, different content. The business can give them special
incentives like free product, commissions, discounts, or event entry as a reward for their
consistent brand promotion on their networks. They can also incorporate them into
campaigns for product development, feedback, or lobbying.
 Localized landing pages: Businesses who want to draw in local customers and increase
conversions in the competitive digital world of today must give top priority to developing
high-converting localized landing pages. These sites have the ability to significantly raise
search engine results, boost conversion rates, and enhance the user experience for
prospective customers in service region when properly optimized.
Evaluation

12
https://www.forbes.com/councils/forbestechcouncil/2024/10/02/using-visual-storytelling-to-future-proof-
marketing-strategies/
13

https://www.researchgate.net/publication/372837440_Chatbots_in_Digital_Marketing_Enhanced_Customer_Exp
erience_and_Reduced_Customer_Service_Costs
The following metrics will be used to assess Nike's DMC strategy's effectiveness:
Website analytics: Monitor conversions, bounce rates, and traffic sources with tools like Google
Analytics.
Social Media Engagement: Monitor indicators such as likes, comments, shares, and the number
of new followers on various platforms.
Email Performance: Assess email campaigns' open rates, click-through rates (CTR), and
conversion rates.
Revenue Growth: Examine sales information to determine how DMC activities affect revenue,
especially via app and internet channels.
Conclusion
Nike's Digital Marketing Communications (DMC) Plan places a strong emphasis on
personalization, sustainability, and innovation in order to keep a competitive edge in the ever
changing digital market. The plan finds areas for development by examining Nike's present
approaches to search engine exposure, email marketing, social media presence, and website
optimization. Some of the key recommendations include creating personalized landing pages to
enhance user experiences and conversions, collaborating with micro-influencers for actual
engagement, and deploying AI-powered chatbots 24/7. Website analytics, email campaign
performance, social media engagement, and revenue growth are evaluation metrics that ensure
the strategy's effectiveness. Nike can grow its audience, boost brand loyalty, and keep its market
leadership by assisting these initiatives and adapting to consumer needs like sustainability and
customisation.