What emotions and words come to mind when you hear the athleisure company name, Nike and its iconic slogan, “Just Do It”? Perhaps you feel a sense of heroism, perseverance and personal achievement. Nike’s iconic tagline is memorable and invites customers around the world to dream big by tapping into their inner champion. By creating a strong brand, Nike has successfully fostered brand loyalty, brand awareness and perceived quality.
However, Nike’s brand equity has taken a dive in recent years amidst allegations of sexual and toxic workplace involving sexual harassment and intimidation. Though the company had a meteoric rise in the ’80s and ’90s and captured the hearts and minds of a global shoe market, it seems they’ve taken two steps backwards on their brand reputation.
What is Brand Equity?
Brand equity is how your customers perceive your brand and how they feel about your company. It’s the ethos of your organization’s values, mission and people. It IS your brand’s personality.
Nike built its global athletic wear brand based on the premise of athletic excellence and triumph. Their iconic Swoosh represents speed, movement, power and motivation. It’s been propelled to glory by legendary athletes such as Michael Jordan, Cristiano Ronaldo, LeBron James and Tiger Woods, to name a few.
The Role of Messaging in Building a Brand
Nike is successful because it has some of the best marketing in the world. The iconic Nike swoosh and tagline, “Just Do It” has powered their brand to #1 in the sporting goods industry, and is the 14th most valuable brand in the world.
Nike’s savvy marketing strategy blended emotional marketing and sports celebrity endorsements, showcasing their high-quality and market-leading technology. Their ads made their avid ambassadors believe they could live healthier and tap into their own greatness. It also helped to have top athletes.
Choosing the RIGHT PR Strategy
Once you establish your marketing goals, analyze what your industry looks like. Take a 360-degree holistic view of the brands that you compete with and discover ways to stand out. Then determine your target audience and messaging. Once your messaging is in place, it’s all about engaging with your target audience by reaching them where they congregate. Ask yourself, who will get the most value from my brand?
Instead of selling shoes and active wear clothing in catalogues, Nike sold dreams to a North American audience on Sports Illustrated and partnered with professional athletes early in their brand building mission. This was a unique strategy that helped them stand out from their competitors.
Partnering With “Influencers”
Influencers aren’t just an Instagram or TikTok thing. Nike was doing it before it was cool. They didn’t call them influencers back then, but that’s exactly what they were. They positioned their brand around up and coming athletes and now align their brand with the best professional athletes in the world.
This wasn’t just a partnership; it was a game-changer in marketing. Michael Jordan and Nike didn’t just market a shoe to the masses, they created a legendary brand. It’s why even today, decades later, people still line up for hours just to buy the new Air Jordan.
Storytelling
Nike is also a master storyteller. Every ad, every campaign connects with consumers on an emotional level through powerful stories of perseverance and empowerment. From the exhausted runner crossing the finish line to Serena Williams winning more Grand Slam singles titles than any other woman or man during the open era in tennis.
Their “Find Your Greatness” campaign highlighted ordinary people achieving extraordinary feats, enabling individuals to imagine themselves achieving greatness.
Has Nike’s Brand Equity Declined?
Even the most iconic brands can face hurdles throughout their evolution.
Market Share
Nike still rules the sneaker world in the U.S., holding 27% of the market share. However, competitors like Under Armour, Adidas, and new market favourites like Hoka and On are gaining ground on Nike. They’ve attracted their own fans, carving out niches that even the mighty Nike can’t ignore. It’s a sign that while Nike’s still on top, the throne isn’t as unshakable as it used to be.
Stock Price History
Nike’s stock has had its ups and downs. Lately, more downs than ups, with shares dropping more than 20% in 2024. Investors are starting to worry. They’re wondering if Nike still has its Midas touch, or if it’s losing its grip on the global athletic wear market. New competitors are on the scene, and Nike needs to prove it’s still got game. When investors get nervous, it’s a sign to start finetuning your strategy.
China / Slave Labour Implications – Nike’s PR Nightmare
One of the recent PR scandals to set Nike back are allegations of forced labor and sweat shops in China.
Consumers today are very socially conscious. They care about where their products come from and how they’re made. They want to feel good about their purchases, and if a brand’s not considered to be following ethical practices, people will be quick to turn their backs.
Is Nike Dying? The Road Ahead
Nike is not going anywhere, but that doesn’t mean it can coast. There are some serious challenges ahead, and their next steps forward will be crucial to preserving their reputation.
Nike Needs to Address Overseas Production Issues and MAKE THE CHANGE
Nike has made the effort to address fair labour practices and ensure worker safety by reiterating the same message once a year, that they are committed to human rights and stand against forced labour. However, some consumers are questioning whether Nike’s messaging carries the same authenticity as sustainable brands like Patagonia, who have experienced a significant rise in business over the last several years.
Conclusion
Nike’s brand equity is still a force to be reckoned with. They have one of the world’s strongest brands, endorsements by top professional athletes, and a loyal fan base. However, the consumer landscape is shifting, and Nike needs to move with it. It’s not just about being the biggest name anymore—it’s about being the best in every way that matters most to shoppers. If Nike can stay true to its roots while stepping up to new challenges, there’s no reason it can’t keep that top spot. The swoosh isn’t just a symbol; it’s a promise. Let’s see if Nike can keep delivering on it.
