Nike Repositioned and Made Billions

Bill Bowerman, the co-founder of Nike, once said, "Every athlete, everywhere, deserves a chance to compete."

Nike wasn’t always the cultural icon it is today. It started as a running shoe company focused on elite athletes. But as the world of sports began to change, so did Nike.

Their bold repositioning turned them into a brand for everyone. This shift didn’t just resonate with consumers but added billions to their revenue.

But how did they successfully pivot to capture a new market?

It all began with daring decisions, from controversial campaigns to groundbreaking product innovations…

The Big Idea:

Let’s Talk About Repositioning

You have probably seen the Nike slogan, “Just Do It,” everywhere.

It’s been a part of our lives for decades. But what if I told you that Nike once had to rethink everything they knew about their market and reposition themselves?

Imagine Nike today, with its massive influence and trendy collaborations, but it was not always this way. A few years ago, Nike struggled to attract a younger, more diverse audience.

Repositioning is not just about changing a logo or tweaking a product. It’s about completely shifting the brand's identity to resonate with the new market needs.

Nike did this with bold moves that refreshed their brand and set them apart from competitors.

So, how did Nike do it?

Behind the Magic:

How Nike Successfully Repositioned Itself?

Nike's successful repositioning strategy was a vast transformation that touched every part of their brand. Here’s what led to Nike’s repositioning success:

1. Welcoming Diversity and Inclusion

Nike recognized the growing need to address a more diverse and socially conscious market. In the past, Nike’s core messaging was focused primarily on athleticism and competitive sports.

However, as social and political movements gained traction, particularly in the U.S., Nike wanted to take a stand and talk to younger, more diverse consumers.

Their bold decision to partner with Colin Kaepernick, who became a divisive figure after kneeling during the national anthem to protest racial injustice, was a game-changer. Watch it here:

It was a major risk for Nike, as they faced backlash from demographics against Kaepernick’s protest. Some even burned their Nike gear, vowing to boycott the brand. But Nike’s leadership doubled down on their choice.

They understood that their target market was shifting, and the younger generation valued brands that took a stand on important social issues.

This move positioned Nike as a company that was not just about selling shoes but about championing values like social justice and equality.

Nike’s advertisement with Kaepernick with the tagline "Believe in something. Even if it means sacrificing everything," resonated strongly with consumers who were passionate about activism.

2. Understanding the Change in Sports Culture

Nike did not just reposition itself through bold messaging. They also recognized that the definition of "athletics" was evolving.

Traditional sports, such as basketball, football, and track, were no longer the only game in town. Fitness and lifestyle culture were on the rise, and Nike adapted by expanding its focus beyond elite athletes to include everyday fitness enthusiasts.

In line with this shift, Nike introduced products and campaigns that spoke to a larger demographic. Instead of just endorsing professional athletes like Michael Jordan or Tiger Woods, Nike began partnering with celebrities and influencers who were also cultural icons in other realms.

For example, athletes like Serena Williams, LeBron James, and Cristiano Ronaldo were not only athletes but also involved in fashion, activism, and entertainment. It allowed Nike to bridge the gap between sports and popular culture.

Also, Nike tapped into the growing trend of women’s fitness by launching the "Nike Women" campaign, which highlighted women in various sports and fitness activities.

Here’s the campaign all about:

By showing diverse women athletes and their stories, Nike presented a more inclusive brand identity that resonated with women looking for athletic wear that fit and empowered them.

3. Digital and DTC Strategy

As Nike shifted its focus to a more inclusive and culturally relevant brand identity, they also began a massive digital transformation.

The company recognized that e-commerce, mobile apps, and D2C sales would be crucial for future growth. Traditional retail was no longer the only way to reach consumers, so Nike took a digital-first approach.

The development of the Nike Training Club (NTC) app and Nike Run Club (NRC) are a few aspects of this transformation. These apps allowed Nike to build a strong, engaged community around their products.

They have features like fitness tracking, training plans, and motivational content to help users stay engaged and improve their fitness.

With a direct link to Nike’s product ecosystem, these apps helped Nike reach a new audience and encouraged brand loyalty and repeat purchases.

In addition to these apps, Nike also increased its e-commerce investments. They focused on improving the user experience on their website and mobile platforms to make it easier for consumers to browse, shop, and interact with the brand.

Nike's personalized marketing strategies played a key role in this shift. Using data analytics, Nike personalized its messaging and recommendations based on user behavior, preferences, and past purchases.

This level of personalization made customers feel more connected to the brand.

They also adopted this transformation in social media marketing by working with influencers on Instagram and YouTube to create authentic, relatable content that spoke to their audience.

Look at how inspiring this one is:

nike

View more on Instagram

And this:

This helped them tap into youth culture, especially among Gen Z and millennials, who engage with brands that speak their language and fit into their lifestyle.

4. Product Innovation with a Purpose

Repositioning was not just about the message. It was also about reinventing their products to meet the needs of their new audience.

Nike adopted product innovation by introducing new, high-performance gear that aligned with their inclusive brand identity.

For example, Nike introduced products designed specifically for women, like the Nike Pro Hijab in 2017. They designed it for Muslim athletes who wanted to wear a hijab while participating in sports.

Oh man! Listen to the BGM at the start:

It was another example of Nike accepting the changing social dynamics and creating products that resonated with underserved markets.

Nike also focused on sustainability by launching initiatives like Nike’s “Move to Zero” campaign, which aims to achieve zero carbon and zero waste.

That resonated particularly well with younger consumers concerned with environmental issues. Also, Nike Air VaporMax 2020 Flyknit, made with recycled materials, showed Nike’s commitment to eco-conscious innovation.

5. Adopting Storytelling in Marketing

Nike's repositioning was not only about advertisements. It was about storytelling that connected with real human emotions. Nike's marketing campaigns were no longer just about showing athletes breaking records.

They were about telling stories of resilience, overcoming adversity, and standing up for what’s right. For instance, their Dream Crazier campaign, narrated by Serena Williams, celebrated women in sports breaking barriers and defying stereotypes.

The commercial showed powerful moments of women athletes pushing beyond the limits of what society expected of them. The message was not just that you should strive for greatness.

It was that Nike would support you in your journey, no matter the obstacles. This storytelling approach impacted brand loyalty.

Consumers felt like they were part of something bigger, not just buying products but supporting a brand that aligned with their values.

Where It Fits:

Making It Work For You

• Focus on the bigger picture. Look for trends shaping your industry and how your brand can align with them. Be bold and take a stand on causes that matter to your audience. Invest in digital tools to connect directly with your customers and build loyalty.

• You are in charge of turning ideas into action. Expand your audience. Use storytelling to show how your brand fits into people’s lives. Make your campaigns smarter by personalizing your message.

• Highlight your brand’s values in everything you do. Be creative to connect with customers, like using new social platforms or formats. Most importantly, keep your messaging authentic because people value honesty.

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