Stefan Boom’s Post

Big thanks to Kunal Mehta for bringing Mark Ritson Marketing Week article on Nike’s missteps to my attention. It’s a must-read for anyone thinking about strategy vs. execution in marketing. Ritson cuts through the noise: Nike’s failure under John Donahoe wasn’t just about leadership, it was about a misguided strategy. Donahoe focused too much on short-term performance marketing, sacrificing the long-term brand building that made Nike iconic. While performance marketing delivers quick ROI, it erodes over time if there’s no emotional connection fueling it. Nike also over-rotated toward direct to consumer and misread the post-Covid landscape, pulling back from wholesale partners just as consumers returned to physical stores. The lesson here? Beware chasing short-term gains at the cost of long-term brand equity. As marketers, we have to find the balance between performance and brand marketing to sustain growth and relevance. It’s not just about culture or leadership—it’s about strategy. And getting that balance right is more important than ever. #MarketingStrategy #BrandBuilding #PerformanceMarketing #AHAMoments #Nike #MortarAgency #MarketingWeek

Outgoing CEO John Donahoe formulated his #strategy for Nike, but he did a mistake of missing the central point of any #marketing success or failure – the #product itself. The goal was to grow the digital side of the business from 26% in 2023 to 40% by 2025. But, his marketing experts lost the plot. Having set his giant Nike tanker on a bad strategic path, Nike’s product was losing its appeal. This 👇🏻provides #marketers with four salutary lessons in what not to do. #branding #Sales

Nike marketing missteps. Lots of coverage on this over the weekend following the departure of the CEO. Ritson nails it quite well. 1) Product - going too generic, losing the specialist focus 2) Ignoring Long term brand building, too much performance marketing spend 3) DTC - letting the competition get to retailer / wholesaler shelf space they wanted to lose 4) Continuity always wins Put like that it all sounds simple - the greed of going DTC personally I think was the biggest mistake of all. Hoka and OnRunning are making good use of the vacated space. #brandmarketing #nike #dtc

Lesson is very simple: -      Brand = Functional Part (product or service) + Emotional Part (The core – philosophy of doing business) -      Never Deviate from the core of the brand! -      Never Stop Building a brand! -      Use and act on tools and events that suits the brand and not just things that are in fashion for the moment -      Brand is a long term - it is a marathon not a sprint! Plus, I think in this case responsibility (and guilt) should be equally, if not more, attached to the people who made a decision who brought new CEO in, (as it seems) without any explanation, instructions and sharing WHAT Nike IS. They at list (before they let him manage NIKE) should have made new CEO read a book - Shoe Dog: A Memoir by the Creator of Nike – by creator of Nike Mr. Phil Knight. #brand #branding #brandmanagement #brandstrategy

This is an interesting look at the continued struggle between performance marketing and brand-building and how the imbalance adversely affected Nike. While there is a place for performance marketing especially in this digital age, I have always believed that if the brand-building was outstanding and could breakthrough, it would also have short-term benefits. https://lnkd.in/gyVdedQt #AakeronBrands #Branding #Brand #Demand

The article raises important points about Nike’s recent strategic missteps, particularly around brand authenticity and consumer engagement. Here are some points a CMO could consider to reverse the damage and bring back Nike's brand vitality. In essence, emphasize the need for a stronger connection with core values and the customer base. To elevate Nike further, focus on the following strategies: 1. Enhanced Community Engagement: Create local grassroots initiatives that resonate with community values and culture, fostering deeper emotional connections with consumers. 2. Sustainability Commitment: Amplify efforts in sustainability, not just in product development but also in supply chain practices. Transparency about these efforts can build trust. 3. Personalization through Technology: Invest in AI-driven personalization to enhance the shopping experience, tailoring recommendations and offers based on consumer behavior and preferences. 4. Innovative Collaborations: Partner with emerging designers and cultural icons to infuse fresh perspectives and creativity, keeping the brand relevant and exciting. 5. Holistic Wellness Approach: Expand marketing to promote not just athletic performance but overall wellness, aligning with lifestyle and mental health trends. These initiatives would reinforce Nike’s position as a leader in innovation while deepening its connection with consumers. #Nike #Brand #Marketing #Businessmodel

Nike’s Turnaround: Navigating a Tough Road Ahead 📉 Quarterly Performance Nike reported an 8% decline in sales this quarter, bringing revenue to $12.4 billion. While the drop is significant, it slightly outperformed analysts’ expectations of a 9% fall. Gross margins also contracted but were better than forecasted due to aggressive discounting strategies. 📊 Revenue Projections (2019–2027) • 2024 High: Revenue peaked at $55 billion, growing 7.5% during the pandemic. • 2025 Dip: A steep 13.6% decline is expected, bringing revenue to $47.5 billion. • 2027 Recovery: Stabilization is anticipated, with revenues projected to reach $52.6 billion (source: Marketscreener.com). 🧑💼 Strategic Shifts Under New CEO Elliott Hill Nike is undertaking significant changes to rebuild its momentum: • Back to Sport: Reorienting focus on athletes and sports, restructuring teams by sport rather than consumer segments. • Product Revamp: Scaling back on overused styles (e.g., Air Force 1, Dunks) to make way for fresh designs. • Strengthening Partnerships: Balancing D2C and wholesale channels by offering premium inventory and localized support to partners. • Prioritizing Full-Price Sales: Reducing discounting to protect brand equity and emphasize product value. 🏟️ Marketing Reset Shifting from performance-driven ads to emotionally resonant campaigns, Nike will place athletes at the heart of its storytelling efforts to reconnect with consumers on a deeper level. CEO Elliott Hill acknowledges the uphill battle: “This won’t be easy, but we’re ready for the challenge.” Can Nike Regain Its Momentum? With bold leadership and a clear strategy to address product and market dynamics, Nike seems poised to navigate its challenges. However, success will depend on its ability to execute these changes while preserving its iconic brand identity. Will this reset be enough to bring Nike back stronger? Time will tell.

When giants trip, the lessons echo louder!! ✨ Nike, the sportswear icon revered by marketers, finally stumbled!! Its brand valuation nosedived by nearly 60% since its post-Covid peak. The CEO, John Donahoe, stepped down, leaving a trail of strategic missteps. Where did Nike stumble? What went wrong with the company that gave us #JustDoIt? //FOUR PIVOTAL MISTAKES OF NIKE... 1️⃣ Losing the Sport in Sportswear👟 - By generalizing its offerings, Nike diluted the elite, sports-specialized essence that made it aspirational. This shift from serving athletes to appealing to everyone was a step too far. 2️⃣ The Short-Term Trap👟 - Nike doubled down on #performancemarketing at the expense of long-term #brandbuilding. While short-term tactics boosted #ROI briefly, the brand’s emotional connection and market dominance suffered over time. 👟 3️⃣ The #DTC Overreach👟 - Nike’s pivot to direct-to-consumer (DTC) was bold but flawed. By sidelining wholesale partners, it sacrificed physical availability, a crucial driver of discovery and sales. 4️⃣ Betting on a Bubble👟 - Caught in the Covid e-commerce surge, Nike over-invested in digital and misread the future. As the world normalized, its strategy unraveled, leaving it ill-prepared for post-pandemic consumer behavior. As Mark Ritson aptly said, “He took the 12-month Covid-driven explosion and extrapolated it into a future that never happened.” Nike’s tale reminds us of the timeless truths in marketing: 🎯 #Specialization trumps #generalization. 🎯 Balance the short and long game. 🎯 #Omnichannel isn’t optional. 🎯 Trends are fleeting, but fundamentals endure. Can Nike regain its iconic stride? Elliott Hill, a Nike veteran, being the new CEO since Nov2024, there’s hope for a return to the brand’s roots. video via Uncensored CMO of Jon Evans #MarketingStrategy #Nike #BrandManagement One Percent Consulting draws upon inspirations like these, to unleash growth for you and your brands. If you enjoyed reading this post, follow me for more. For more, sign in to Stratinspiration newsletter or Book a Free Discovery Session.

Nike has done it before. It just has to do it again. As ever a great article from Prof. Mark Ritson. Ultimately, four big mistakes saw off John Donahoe. He did not invest enough in product; he forgot to balance short-term performance with enough long-term brand building; he needed omnichannel distribution; and he should have realised Covid was a bubble and not the start of a new era. All obvious errors. And ones that the CEO of Nike should have been able to avoid. He now needs a series of big brand campaigns and a permanent balance of long and short communications. He needs a successful omnichannel approach, with a vibrant presence across wholesalers and a leading-edge direct digital business too. And he needs Nike to return to its sporting roots with products that define the market demand rather than rework it.

Nike's colossal $25 billion one day loss is one of the biggest wipeouts in retail history. Sure, you could blame high interest rates or the cost of living crisis, but Paul and I break down what went wrong and how this could be a turning point for this iconic brand. Here's a teaser of what we cover: 🔍 The D2C Dilemma: Nike’s pivot to Direct-to-Consumer was supposed to boost margins, but instead, it’s eroded them. By cutting out wholesalers and pushing more sales through their own channels, they’ve disrupted relationships with key retail partners and alienated core customers. Is chasing higher margins always the right move? 📉 The Cost of Discounting: In an effort to drive sales through their own platforms, Nike shifted focus from their legendary brand marketing to aggressive discounting and promotions. We explore why a brand that once stood for premium experiences is now caught in a race to the bottom. 🏃♂️ Losing Market Share: By consolidating their product divisions, Nike has lost the specialised focus that once made them leaders in categories like running and basketball. Meanwhile, niche players like Hoka and On are seizing the opportunity to capture market share. 📉 The CEO Factor: With a CEO whose background is more in consulting than in retail or branding, we discuss how strategic decisions influenced by efficiency experts may have led Nike astray. When you start playing defence instead of offence, the cracks begin to show. Listen in to find out how this great brand lost its way - and what you can learn to avoid the same mistakes.