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Nike Advertising
Brandon Mantz
Wisconsin Lutheran College
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Nike Incorporated started with the ideas and dreams of two men, University of Oregon
track athlete Phil Knight and University of Oregon track coach Bill Bowerman. Fed up with the
quality of track shoes offered to runners, Knight made a call to a Japanese based company called
Tiger to start selling their shoes in the United States. Investing $500 a piece, the first shipment
was in and selling started out of the back of Bowerman’s van. Blue Ribbon Sports had been
created and Bowerman began to tear apart the shoes to find ways to make them lighter and
better. In 1965, Jeff Johnson stepped in to be the accountant for Blue Ribbon Sports. While he
was there, Johnson did many things such as make brochures, print ads and marketing materials,
and even shot the photographs for the company’s catalogues. In 1971, Blue Ribbon Sports was
ready to split from the Japanese company and began manufacturing their own shoes under the
name, Nike. Headquartered in Beaverton, Oregon, the innovative and powerful company that
Nike is started with only two men with the desire for quality and creative minds.
Nike advertises in many ways and uses several mass media in order to do so. Nike is all
over the world. Specifically in China, Nike has recently launched two different ad campaigns.
Both ads are located on bill boards in Shanghai. The first ad includes ten American National
Basketball Association stars dressed in white with straight faces. The words “The Second
Coming” are written in Chinese with the swoosh logo above it in the corner. This ad publicizes
the American players and the league they play in. Nike places this ad to encourage Chinese fans
to buy the jerseys of these stars that are endorsed by Nike. Nike is saying through this campaign
that anyone, no matter ethnicity or size, can wear the same gear as the players in the NBA. The
other ad has three Chinese stars in track, women’s tennis, and basketball. Nike positions this ad
to connect with the Chinese people. The traditional Chinese culture embraces their own people.
They are more likely to listen to athletes from within their country. Nike utilizes two different
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strategies in order to reach as many people as possible. The “Heroes” ad emphasizes the Chinese
culture and tradition while the NBA ad encourages the rising of young stars and the American
innovation (Wakefield, 2010). The great thing for Nike is, both ads worked well and generated
revenue.
Within the United States, Nike does many things to advertise to its different audiences.
Nike has several retail and outlet stores throughout the country. The Nike brand also licenses
many other stores to sell Nike brand apparel and products. The “swoosh” logo is recognizable
anywhere and is a staple to all Nike products. Nike not only has its many retail stores, but also
sells its products in department stores such as Kohl’s. This ensures that the Nike brand is in as
many places as possible. “A name becomes a brand when consumers associate it with a set of
tangible or intangible benefits that they obtain from the product or service.”(Court, 1997) If
people want to buy Nike clothing, they will be able to find it. In 1988, the “Just Do It” tagline
was implemented and it is still a huge part of the corporation today. Mass media is a huge part to
how Nike targets its audience. The Nike.com website is available in fourteen languages ensuring
that if someone can get on the internet, they will be able to read what is on the website.
Partnered with Weiden & Kennedy advertising firm, television is a huge mass medium that Nike
uses. Weiden & Kennedy is a company that does advertisements for big name companies like
Coca-Cola, Dodge, Kraft Foods, Proctor & Gamble, Target, and Old Spice among others. Nike
uses commercials to “wakeup” the audience and grabs attention with colorful flashes and
recognizable athletes. One reason why Nike is so successful in advertising is because of the
sheer exposure in the mass media. If an athlete is wearing a pair of Nike shoes and is covered on
television or in the newspaper or online, the Nike shoe is right there in it.
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Starting in 2012, Nike bought full rights to be the official licenser of the National
Football League replacing Reebok. The campaign is titled “Fast is Faster” which states that the
NFL has progressed to the point where it is no longer good enough for a player to be fast, but
they must be faster. This translates to all levels of football. Every kid idolizes some player and
wants to be exactly like Aaron Rodgers, Calvin Johnson, or Troy Polomalu. Now the way to do
that is buy the Nike equipment that their favorite player is wearing on the field. Anyway that a
fan cheers on their favorite team or player, that fan will also be cheering for the Nike jersey the
player is wearing. Phil Knight was named two time Advertiser of the Year for his work as the
head of Nike, but realistically the media should get a recognition for providing so much free
product placement. Knight is a huge supporter of the idea that anyone can be an athlete. Nike
has had a huge social impact on combating obesity. No matter who a person is or what
background they come from, they can still get in shape. By providing everyone with the idea
and hope that they can be fit and in shape, Nike has had a tremendous positive impact not only
on the world of sports, but rather on society as a whole.
Nike influences society through advertising to women, racial incidences, and labor issues.
In 1990, Nike launched a creative team to exclusively research ways to reach the largely
untapped women’s sport audience. At the time, women’s sports were widely unpopular and
unorganized. Title IX states as quoted from The United States Department of Labor, “No person
in the United States shall, on the basis of sex, be excluded from participation in, be denied the
benefits of, or be subjected to discrimination under any education program or activity receiving
Federal financial assistance.” It is the act that mandates the amount of men’s and women’s sports
to be equal in colleges and universities, struggled to be consistent throughout the country. This
has had a huge impact on the development of women’s sports at the collegiate level. Nike has
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capitalized on this law to produce more clothing and sportswear for females. When Nike turned
advertising to the female audience, the population responded.
Within the world of sports, masculinity is prominent. When it comes to the women in
sports, femininity is favored over athleticism (Grow). This clash between social and sport ideals
is evident with female advertisements. Ana Kournikova, a professional women’s tennis player,
in Nikon camera commercials is pictured as pretty and elegant rather than as a Grand Slam
winner. Danica Patrick for GoDaddy.com is used for her sex appeal rather than her
competiveness in the NASCAR circuit. Nike and its team of feminist advertisers put out the
message that it is okay for women to be athletes and to dress like an athlete. Nike has worked
hard to reinforce the idea with the campaign featuring Mia Hamm, professional women’s soccer
player. In the commercial, Hamm goes head to head with male soccer players saying “Anything
you can do, I can do better”. Turning around the thoughts and stereotypes is difficult to do, but
that did not stop Nike from going for the female group of athletes and taking them to the next
level. The social impact that Nike had on the development of women’s sports and fitness is
immeasurable. Nike is one of the first companies to target women athletes and endorse them for
athleticism.
Nike has worked to endorse minorities over the years and a supporter of equal rights.
Nike endorses many black athletes as well as Hispanic and Asian. Nike is going to try to
endorse the best athlete in any given sport, no matter what ethnicity the athlete may be. Manny
Pacquiao, the current boxing lightweight champion is endorsed by Nike as well as the Brazilian
national soccer team. Nike targets the Latin American group to give everyone equal opportunity
and recognition. Of the ten NBA basketball players on the Chinese advertisement, eight are
African-American, one is a white Canadian, and the other is French. Marketing to different
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ethnic groups ensures that the Nike logo and brand truly is international. People from all over
the world, regardless of skin color, are endorsed because they excel in their sport. This is a
positive social impact that Nike has been spreading since the start of the company. A possible
negative social implication to Nike being all over the world is the chance of taking away from
the traditional values of some countries. Culture varies and it would not be a good thing if all
culture was combined and mainstreamed into one. Although Nike is making a great connection
and bridge by being in a global position, it could possibly take away from some of the traditional
values and culture of some nations.
Not all the social effects of Nike have been positive, however. In the 1990’s, Nike was
faced with accusations of using child labor to manufacture many of its products globally.
According to Levin and Behrens in the article, From Swoosh to Swoon, (2003) “Nike's image has
been transformed from a young rebellious company on the cutting edge to a stodgy company that
is not only past its prime but is accused of taking advantage of the most vulnerable groups in
society (p. 63)”. Nike was paying Chinese underage workers less than the Chinese minimum
wage as well as working children overtime. The very swoosh and “Just Do It” branding
techniques that made the company so successful, were used by the media and rights activists to
degrade the company. Since everyone was familiar with the slogan, shots were taken like child
labor rights, just do it. Another issue that Nike faces is gang activity based on the want for Nike
products. Some gangs steal in order to get the newest pair of Nike shoes, and in extreme cases
kill members of other gangs in order to get the pair of shoes from their feet. Even though Nike is
not directly responsible for gang activity, it is definitely a negative social implication that can be
further investigated. Nike has worked hard to change the global labor issues it was facing as
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well as salvage its brand name. Children continue to be a large part of Nike, now as a target
group instead of a main manufacturer.
Perhaps the greatest innovation that the Nike marketing team put together was the
endorsement of professional athletes. The first “sponsored” athlete for Nike was Steve
Prefontaine, a track athlete from the University of Oregon and participated in the 1972 Olympic
Games in Munich, Germany. Prefontaine never lost a race at the University of Oregon while
sporting a pair of Nike shoes which sparked a huge amount of business for the then small
business. Prefontaine once held the American record for the seven middle to long distance races
before he died in a car crash at the age of 24. With his passing, the track and field community
saw an end of an era. Nike has been known to try tactics that other companies do not even think
of. Taking this into consideration, Nike has used a number of athletes to endorse the brand for a
number of different reasons.
Tiger Woods, Michael Jordan, Lance Armstrong, and LeBron James are big athletes in
different sports endorsed by Nike for different reasons. Nike commits $1.6 billion to the
endorsement of athletes. Woods signed with Nike when he first came onto the PGA tour and
many people thought he would be a bust. The next year the young Woods went on to win The
Masters by a record twelve strokes. In 2006, Woods signed a contract to receive $87 million in
endorsements from Nike (Carison). This may seem like a lot to give a player to wear and use
equipment but worth it to Nike as Nike Golf increased revenue by 24 percent in the year
following the signing of Woods. The Ethnicity of Woods which is African American,
Caucasian, Native American, and Asian, helps market to a very diverse group of people. Golf is
a sport that has a very concentrated base and so with the multiracial ethnicity of Woods, the Nike
Golf brand took off. Recently, Woods was faced with a sex scandal and fallout in his golf
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playing game. Nike has stood by him, and Tiger is now on the comeback trail in the world of
golf with a still strong fan base. People may not be fans of the lifestyle of Tiger Woods but still
cheer for him because of the Nike polo on his back and the Nike driver in his hand. Wearing
Nike Golf apparel and using the equipment that Nike Golf produces has become a societal
acceptance and to some peoples, a need.
Michael Jordan is credited in most circles for saving the Nike brand. In the 1990s, when
Nike was faced with allegations of child labor issues, Nike endorsed Michael Jordan as soon as
he declared for the NBA draft. Jordan went on to win six championships with the Chicago Bulls
and a whole new Jordan Brand was launched. Some people say that without the emerging super
star that Michael Jordan was, Nike could have been in danger of falling apart all together.
Jordan was able to distract people from the labor issues with his outstanding play on the
basketball court while corporate Nike resolved the issues it faced. The “Jumpman” logo, which
is representative of Michael Jordan jumping in the air, dunking the basketball from the free
throw line, was put on basketball shoes of which there are now twenty-four editions. Jordan
Brand now has casual shoes and casual and basketball apparel. However, there is some
controversy to the Jordan Brand. Song artist, Macklemore, released a song called “Wings” in
which he criticizes Nike and the Jordan Brand for advertising to children. Each child is not
considered cool unless they have the newest and best version of the Jordan shoes. Macklemore
states that this leads to bullying and even violence among children of all ages. Even though Nike
does not market to children directly, by having athletes endorse their products what is the
message they are sending to children. Despite objection from some, Nike’s core fan base ate up
the Michael Jordan hype and brought many other people along with them.
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In 1996, few people knew of a cyclist from Texas named Lance Armstrong and now he is
considered by some one of the greatest athletes of our time. Armstrong overcame cancer to go
on to win six Tour de France’s in a row. The article, Nike's Corporate Interest Lives Strong,
from Sport Marketing Quarterly (2006) explains the concept of Cause-Related Marketing. After
the success of Armstrong, Nike launched a Livestrong branch of active wear where a portion of
the proceeds went to support cancer research. Nike was the first retail company to have a go at
this type of marketing. The question to consider is if Nike should be leveraging cancer research
in order to sell more t-shirts. Nike may be trying to enhance its image through the Livestrong
campaign but at the same time Nike is helping out cancer research. The objections to this type of
marketing all ask the same question, is it ethical? Is it just a ploy in order to sell more of the
Nike branded products? It is up to the consumer to decide the intentions and either way the
consumer is getting a quality product. If a person really wants to help out cancer research, he
can donate money directly to a fund. However, if a person is going to buy a Nike shirt anyway,
they might as well buy a Livestrong shirt that helps support cancer research.
LeBron James as an 18-year-old signed a huge endorsement deal with Nike. The number
one overall pick in the NBA draft out of high school is handed millions of dollars and a shoe deal
before he even played a game. A big reason Nike has succeeded so greatly has been because of
their innovation and risky marketing strategies. To say the least, the risk paid off for Nike.
LeBron now has nine editions of his basketball shoe, has been a perennial all-star, and is global
icon even though he has yet to win a championship. It is difficult to assess the impact that
LeBron has had for Nike because he is still so young and is just now hitting his prime. Young
kids aspire to be like the pros in any sport. What Nike has done is make that dream, some sort of
a reality. Children can buy exactly what LeBron James, Lance Armstrong, Michael Jordan,
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Tiger Woods, or any of their favorite athletes are wearing. Nike uses these athletes all for a
different purpose. Each athlete has had a significant impact on the Nike Company whether it be
expanding the consumer base, saving the name of the company, cause related marketing, or risk
reward marketing.
“To build brand equity, a company needs to do two things: first, distinguish its product
from others in the market; second, align what it says about its brand in advertising and marketing
with what it actually delivers (Court, 1997, p. 27). Nike does an outstanding job of using several
techniques to distinguish its products as well as advertise to a wide variety of consumers. These
techniques range from having a website that is available in fourteen different languages to
multiracial, multipurpose bill boards in foreign countries. Nike uses all sorts of mass media in
order to accomplish its goals of marketing. Nike has some of the most innovative commercials
out on the market. The swoosh logo is recognizable all over the world and it is extremely easy
for customers to purchase Nike products. The social implications that Nike has on society are
countless and have impacted infinitely the world of sports. The progression and development of
women’s sports can be accredited partly to Nike and its support for the female sector. Phil
Knight has a motto that everyone can be an athlete, as long as they have a body. His philosophy
is to offer products to all athletes no matter the race, gender, or age. This means that he is trying
to reach billions of people with his products not only for the good of the company but for the
overall good of society. Perhaps the best thing about Nike is that they never rest and are always
looking towards the future. It will be interesting to see what innovations Nike can come up with
to furthermore impact society, mass media, and the world of sports.
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Works Cited
Carison, B. D., & Donavan, D. (2008). Concerning the Effect of Athlete Endorsements on Brand
and Team-Related Intentions. Sport Marketing Quarterly, 17(3), 154-162.
Court, D. C., Freeling, A., Leiter, M. G., & Parsons, A. J. (1997). If Nike can "just do it," why
can't we?. Mckinsey Quarterly, (3), 24-34.
Grow, J. M. (2008). The Gender of Branding: Early Nike Women's Advertising a Feminist
Antenarrative. Women's Studies In Communication, 31(3), 312-343.
Levin, L. A., & Behrens, S. J. (2003). From Swoosh to Swoon: Linguistic Analysis of Nike's
Changing Image. Business Communication Quarterly, 66(3), 52-65.
Nike's Corporate Interest Lives Strong: A Case of Cause-Related Marketing and Leveraging.
(2006). Sport Marketing Quarterly, 15(3), 184-188.
Ommen, B. (2010). LeBron James and the Protocol of Display. Public Culture, 22(2), 309-331.
Wakefield, C. S. (2010). Nike's Shanghai Advertising Dialectic: A Case Study. China Media
Research, 6(1), 68-85.