Nike has grown from a single man selling running shoes from his car into one of the world’s biggest brands. Nike has achieved this by creating eminently usable products while fostering a sense of community.
Research byBrain and Companyin 2017 found that a four-tiered hierarchy of factors drives customers’ decision-making. These factors are function, emotion, life-changing, and social impact.
Each factor fulfils a customer need, but the world’s strongest brands successfully apply them all. This allows them to build the deepest and most powerful relationships with their customers.
1) Function
For any sportswear brand, the key consideration must be the product’s usability in sports participation. ForNike, this means the efficacy of its shoes for running. They must seek a balance between being comfortable, lightweight and affordable.
In 2019 Nike launched its ‘Next%’ shoes, which gave the effect of running downhill on any surface. Eliud Kipchoge wore these trainers during his well-publicisedworld record-breaking marathon. Seeing the innovation being used by world-leading athletes convinced customers that the shoes would improve their own performances.
2) Emotion
The second priority is the emotion that the product instils in Nike’s customers. If products perform their function, customers are likely to feel good when wearing Nike shoes. If they run fast and with comfort, customers will associate happier sentiments with the brand.
Similarly,aesthetically pleasing productsinspire positive emotions in customers. By producing trainers which look as good as they feel, Nike instils confidence in its customers.
3) Life impact
Nike also provides several platforms aiming to improve customers’ lives more generally. By encouraging loyal customers to joinNike+, the brand builds a community of engaged customers.
Nike+ users are encouraged to upload their fitness regimes and provide support for others. This fosters a deeper relationship between customers and the brand and, crucially, keeps them coming back.
4) Cultural impact
Arguably the greatest element of Nike’s customer orientation is its broader socio-cultural dynamic. This is encapsulated by its relationship with NFL player, Colin Kaepernick. In 2018 Nikepublicly supported his protestagainst police brutality in the USA.
Despite backlash from certain corners of society, this proved to be a shrewd PR move. Customers responded well to Nike standing by its principles, withsales increasing by 31%. Following its advert celebrating Kaepernick, Nike’svalue rose by an estimated $6 billion.
Ultimately, this demonstrates that customer needs are not simply practical. It is true that customers always want the best possible products they can afford. However, they also want to feel part of something greater than themselves.
By aligning company values with customer needs, Nike has built a strong and profitable brand. Nike both produces great quality products and plays a part in customers’ everyday lives.
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As a seasoned expert in marketing and brand strategy, with years of experience analyzing and dissecting successful brand stories, I am well-versed in the nuanced elements that contribute to a brand's growth and sustained success. My expertise extends to the principles outlined in the provided article, particularly in the context of Nike's evolution into a global powerhouse.
The evidence presented by Brain and Company in 2017, as cited in the article, aligns seamlessly with my understanding of consumer behavior and decision-making. The four-tiered hierarchy—function, emotion, life-changing, and social impact—resonates deeply with the strategies employed by leading brands. Let's delve into each concept:
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Function: Nike's emphasis on creating highly functional sportswear, exemplified by the launch of the 'Next%' shoes, is a testament to the brand's commitment to meeting the practical needs of its customers. The innovation showcased by athletes like Eliud Kipchoge not only validates the functionality of Nike's products but also serves as a powerful influencer in the purchasing decisions of consumers.
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Emotion: Recognizing the emotional connection customers have with products, Nike strategically focuses on instilling positive emotions. The article highlights the correlation between product performance and customer sentiment. By not only delivering on functionality but also ensuring aesthetically pleasing designs, Nike creates a holistic experience that goes beyond mere utility, fostering a positive emotional association with the brand.
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Life Impact: Nike goes beyond the realm of sports participation by providing platforms like Nike+, fostering a sense of community among its customers. This community-building initiative extends the brand-consumer relationship beyond transactions, encouraging customers to share their fitness journeys and support one another. This deeper engagement enhances customer loyalty and contributes to the overall improvement of customers' lives.
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Cultural Impact: Perhaps the most significant aspect of Nike's customer orientation is its alignment with broader socio-cultural dynamics. The article highlights the brand's support of Colin Kaepernick's protest in 2018, showcasing a bold move that resonated with customers who valued corporate principles. The subsequent increase in sales and brand value underscores the importance of cultural alignment in building a strong and profitable brand.
In conclusion, the article reinforces the idea that successful brands, like Nike, go beyond meeting functional needs. They excel by addressing emotional, life-changing, and social impact aspects, creating a comprehensive brand experience that transcends product features. Nike's ability to align its values with customer needs has undoubtedly played a pivotal role in its remarkable journey from a one-man operation to a global icon.
