Nike: Confronting “Gymtimidation” With Style Arthur W. Page Society 2015 Case Study Competition Nike: Confronting “Gymtimidation” With Style Table of Contents Overview …………………………………………………………………………….... 3 Company Background ……………………………………………………………….. 4 Nike: Then and Now 4 Corporate Character 4 Advertising 5 Competitors 6 Sports Apparel Industry ……………………………………………………………... 7 “Gymtimidation” …………………………………………………………………….. 8 Women-Empowerment Marketing …………………………………………………. 9 Brand Approachability ………………………………………………………………. 10 Better For It Timeline …………………………………………………………………. 11 Better For It …………………………………………………………………………… 11 The Beginning 11 User-Generated Content 12 Experiential Marketing 12 Responses to Better For It …………………………………………………………... 13 The media 13 Consumers 14 Nike’s Reaction 15 Reflection …………………………………………………………………………….. 15 Appendices …………………………………………………………………………… 17 References ……………………………………………………………………………. 25 2 Nike: Confronting “Gymtimidation” With Style Overview Today, Nike supports a global digital community of more than 70 million women that looks to Nike’s brand, including its elite athletes, as well as to other women in the online community for encouragement and inspiration.1 However, “gymtimidation,” described as the feeling of insecurity affiliated with a trip to the gym, has grown among women worldwide.2 Research shows that 53 percent of women in the United States fear going to the gym for appearance reasons.3 With the potential for its women’s sports apparel sales to grow by $2 billion by 2017, Nike knew it had to do something to address this growing trend and make women feel confident about their bodies and athletic abilities.4 On April 12, 2015 Nike kicked off its Better For It Campaign during the MTV Movie Awards with a 60-second TV spot titled “Inner Thoughts” (Appendix A). The first TV spot featured women revealing their inner thoughts while participating in group exercise or running a half marathon. Thoughts such as, “There’s no shame in running half a half marathon” were voiced over the commercial in an attempt to make Nike a relatable brand for women who had experienced doubt or gone through obstacles during their athletic journeys.5 Ultimately, each woman in the ad overcame her obstacle with the surprised, “I did it!” With this campaign, Nike initiated a call to action for all women to become “better for it” by overcoming the intimidation and insecurity they may feel while exercising in public and achieving their athletic goals. Through the Better For It campaign, Nike attempted to become the brand for even the beginner athlete who needs to know that not only can they “just do it,” but also that they will be “better for it” when they overcome their fears and insecurities and accomplish their goals. Following Nike’s launch of Better For It, media and consumers worldwide responded positively 3 Nike: Confronting “Gymtimidation” With Style to Nike’s change in perspective in its advertising through earned media by taking to online publications and social media. Company Background Nike: Then and Now: Phil Knight and Bill Bowerman founded Nike in 1964 as Blue Ribbon Sports in Eugene, Oregon with just $1,200 and a waffle iron.6 Blue Ribbon Sports then became Nike in 1971 after an executive thought it best to name the company after the Greek goddess of victory.6 The company is currently headquartered in Beaverton, Oregon with an expanding 22-building campus.7 Nike is the frontrunner in the sports apparel and footwear industry and also specializes in sports equipment, providing equipment to players ranging from little league to the professional level. Today, Nike has an annual sales revenue of $27.8 billion with 56,000 employees, 931 retail stores worldwide and 81 subsidiary brands, listed in Appendix B.8 Corporate Character: Nike’s mission is rooted in one idea: “If you have a body, you’re an athlete.”9 Nike has always aimed to be innovative and empowering, hoping that it can be the catalyst for every athlete to push him or herself further. Nike also aims to be progressive among its competitors by being a leader in manufacturing and social reform, as well as a supporter of environmental and social good. After allegations of utilizing sweatshops overseas and manufacturing locations where child labor was present, Nike worked quickly in response to the public’s concerns to ensure that these situations were resolved. In response to Greenpeace’s 2015 detox challenge asking corporations to eliminate dumping toxic waste into international waterways, Nike committed to going toxics-free by 2020, and other corporations have followed suit.10 In addition to its progressive environmental commitments, Nike aims to stay relevant in social issues such as 4 Nike: Confronting “Gymtimidation” With Style marriage equality. Nike released a line of apparel and shoes called “#BeTrue,” shown in Appendix C, in celebration of the legalization of same-sex marriage on June 26, 2015.11 Technologically the corporation continues to stay ahead of its competitors by releasing innovative apparel and footwear such as the first self-lacing shoes in the market released in October 2015.12 Advertising: In 1988, Nike introduced its famous slogan, “Just Do It,” in a TV ad.13 Annually, Nike spends more than $3 billion on advertising, focusing its main efforts on network TV, cable TV and magazine ads.8 Nike employs advertising and communications experts as well as contracts out to advertising or communications agencies such as Wieden + Kennedy, Inc.8 Nike Women’s advertising has attempted to balance championing elite athletes who defy stereotypes and relating to non-elite athletes since the 1980s; however, today the Nike brand is primarily associated with elite athletes. In the 1980s, Nike Women’s advertising took off with a series of ads celebrating the initiation of women’s long distance running to the Olympics.14 However, during the Aerobics craze of the 1980s, Nike released an ad called “The List” which featured a list of reasons women diet in an attempt to relate to the pressures felt by the “modern woman”.15 Over the next 30 years, Nike Women focused primarily on the rise of female sports heroines through its sponsorship of the U.S. National Women’s team as well as by featuring athletes such as Serena Williams.15 One notable ad released in 1995, “If You Let Me Play,” highlighted the benefits of girls being involved in sports.15 Nike Women’s advertising again shifted focus in 2010 with “Make Yourself,” a campaign which encouraged women to “be the best version” of themselves.16 Although this campaign was geared more toward the non-elite athlete, these ads still featured professional athletes. 5 Nike: Confronting “Gymtimidation” With Style Previous Nike Women ads: “If You Let Me Play” (left) and “Make Yourself” (right) Competitors: Nike is a leader in the sports apparel industry among many corporations and brands including: Adidas, Reebok, Li Ning, Lululemon Athletica, Puma and Under Armour (Appendix D).17 Nike competes with these companies to be the best and most innovative brand in the rapidly changing and increasingly health-conscious world. The company also prioritizes the quality of the sports apparel products and equipment it produces.18 According to Nike’s 2015 10-K, it aims to be competitive with other brands through: “Consumer connection and affinity for brands and products, developed through marketing and promotion; social media interaction; customer support and service; identification with prominent and influential athletes, coaches, teams, colleges and sports leagues who endorse our brands and use our products and active engagement through sponsored sporting events and clinics.”18 6 Nike: Confronting “Gymtimidation” With Style Because of this, it is important for Nike not only to be a leader in the industry financially, but digitally as well. In December 2015, @nikewomen Instagram page had 3.3 million followers, @adidaswomen had 1.4 million followers and @lululemon had1.1 million.19 Although Nike is currently the leader among its competitors, the sports apparel industry is continuously changing with the release of new products, fabrics and designs. This is especially true in the women’s sports apparel industry, as certain brands become more or less competitive with Nike in this category. Lululemon Athletica is becoming increasingly competitive with Nike in the women’s sector as Lululemon sells and markets to women almost exclusively.20 Additionally, Lululemon's women-focused retail locations may be an influencer in Nike’s decision to trial women-specific stores around the world in an attempt to strengthen its women market. Sports Apparel Industry The sports apparel industry is very competitive and is currently growing at a rate that exceeds the general apparel industry.21 Not only has the sports apparel industry grown exponentially over the last decade, but the women’s athletic apparel industry specifically has grown at almost double the pace of men's athletic apparel.22 In 2000, women made up four-fifths of the sports apparel market as a whole; in addition, the women’s athletic clothing market is growing at a rate much higher than that of women’s athletic footwear.23 According to The U.S. Market For Women’s Athletic Apparel, sports apparel companies have increased their attempts to provide the best fabrics and designs for every woman’s athletic needs since the 1990s. This has been a response to women’s increasing presence in the sports and fitness world.24 This is evident in several aspects of culture, and the term “athleisure” will be added to the 2016 version of the Merriam-Webster Dictionary.25 Not only does this trend affect the growth of 7 Nike: Confronting “Gymtimidation” With Style the sports apparel industry, but the definition of the industry in itself. With the rise of the “athleisure” style, new brands are beginning to insert themselves into the sportswear world in order to stay relevant. It is now possible to find athletic apparel in almost every major retail store, including Forever 21, Old Navy and Target.