Insights gathered from Nike, adidas, and rival businesses:
Every weekend morning, while I stroll with Boris the Blade, our usual routine is disrupted by a crowd of joggers, predominantly middle-aged, rushing towards us. It's not an isolated incident; groups of breathable-material, carbon-plated runners pass us like a never-ending conveyor belt. This phenomenon seems prevalent in Stockholm, as the running craze keeps growing and shows no signs of slowing down.
Some might attribute this trend to effective marketing, including some of the best ads of the 2020s. For instance, Nike's decline in 2019, ultimately resulting in its CEO's dismissal, was partly due to focusing too heavily on performance marketing and direct-to-customer sales, which harm their relationship with retailers[1]. Meanwhile, Adidas faced the same issue a few years prior, with 77% of their marketing budget spent on direct response (performance) marketing. However, this only accounted for 35% of their revenue, while brand investments achieved 65%[1].
In response, giants like Nike and Adidas have adapted their strategies. Nike went back to brand-centric communication, emphasizing the message 'Winning is not for everyone,' while Adidas launched the encouragement-focused slogan 'You Got This.' Brands like New Balance, On Running, Asics, and Puma have also joined the race, implementing innovative marketing campaigns that appeal to their respective audiences.
Modern running brands have learned valuable lessons that other brands can apply. Firstly, differentiation still matters, as witnessed by running brands' efforts to stand out from one another. Secondly, branding plays a pivotal role in pricing power, with premium gear driving sales growth. Lastly, community building is crucial, and running brands use Instagram and sponsorships wisely to engage their customers.
By harnessing the power of brand differentiation, maintaining pricing power through brand equity, and fostering authentic, engaged communities, other brands can grow and retain a loyal customer base[2][3]. Successful examples include Nike's emotionally connecting campaigns like "Camp Next Level" and "Failure"[4]. Balancing the importance of distinctiveness and differentiation is key for accelerated growth in any industry[1][2][3][4].
References:1. Adweek (2021). Given All the Challenges It Faced in 2019, Did Nike Really Stumble? https://www.adweek.com/brand-marketing/given-all-the-challenges-it-faced-in-2019-did-nike-really-stumble/2. Social Media Today (2020). Influencer Marketing Statistics That Matter in 2020 and Beyond. https://www.socialmediatoday.com/news/influencer-marketing-statistics-that-matter-in-2020-and-beyond/597426/3. Campaign US (2020). Nike's brand resilience and snatched victory in 2020. https://www.campaignlive.co.uk/article/nikes-brand-resilience-and-snatched-victory-2020/17464034. AdWeek (2020). Remember Nike's Michael Jordan Failure Ad? Brand to Run New Campaign Around Pandemic Resilience. https://www.adweek.com/digital/remember-nike-michael-jordan-failure-ad-brand-to-run-new-campaign-around-pandemic-resilience/
- In their campaigns, modern running brands like Adidas and Nike often incorporate creative design elements, such as 3D artwork and innovative layouts, to catch the audience's attention.
- A strong logo can serve as a powerful tool for a brand's recognition, as evidenced by Nike's iconic Swoosh symbol.
- Effective branding extends beyond just visual elements; it also includes artistic messaging and slogans that resonate with the target audience, such as Nike's 'Winning is not for everyone' or Adidas' 'You Got This.'
- Often, finance plays a crucial role in brand strategy, with investments in brand initiatives driving a significant portion of revenue, as observed by Adidas.
- Brand building goes beyond just growing a customer base; it also includes fostering communities and engaging fans, which many running brands do through social media platforms like Instagram and sponsorships with sports figures.
- By studying the strategies of successful running brands like Nike and Adidas, other businesses can learn valuable lessons about the importance of brand differentiation, maintaining pricing power, and community building.
- Artistic inspiration can come from various sources, including sports, passionate hobbies, or everyday experiences, as witnessed by the numerous creative designs prevalent in the branding of running gear.
