“It is not about the shoes. It is about what you do in they. It about being who you are born to be. Just do it.” This is a classic advertisement of Nike, the famous sports goods brand. It is confused, why does Nike hardly ever mention the functions or the designs of the shoes, but keep telling a story or making encouragement? Why do consumers keep passion on Nike for these years? The one and only answer could be, it is not about products, it is about belief.
Concepts Delivery
In the vast majority of advertisements, there is usually a story of a famous sports star who pitted against a strong enemy, and after a great struggle, emerging triumphant. Though it is an old story, consumers can be inspired every time. They would believe that they were the hero like the one in the video and they have their own talents. Sometimes, the promotion could also be that I have energy and passion to do whatever I want, just do it. Such concepts attract lots of teenagers and young adults, because it responds to the ideas of new generation, which makes consumers have emotional response to Nike. They are likely to trust the brand and get more utility from consumptions. Hence, the value proposition contains the unique cultural factors as well besides great quality and design.
How does corporate culture play a role in the business model?
- Customer segments: The young generation who love sports and fashion, have great respond to the concepts and of course, can afford the high price.
- Cost structure: Nike does not produce but only design. Therefor, the cost of design and promotion account for the majority.
- Channels: Branding franchised store, shopping malls, online.
- Customer relationships: Online forum, new product releasing meeting, etc.
To conclude, the case of Nike explains how important the corporate culture is in some industries in today’s market. Since the all the products almost have already met requirements for functional use, it is better to differentiate brand and set up brand image by unique corporate culture. Consumers pay more attention to the products that can also brings satisfaction into spiritual level under this condition, especially the young generation who emphasize on personalization and unique lifestyle. In a word, resources are scarce but culture could be perpetuated. It helps to impress people and builds brand loyalty.
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Reference:
Advertising. 2015. Campaign . [ONLINE] Available at: http://www.campaignlive.co.uk/article/history-advertising-no-118-nikes-just-it-tagline/1329940#. [Accessed 1 October 2016].
News. 2013. Nike’s New Tiger Woods Ad Says More About Us Than Him. [ONLINE] Available at: http://www.adweek.com/adfreak/nikes-new-tiger-woods-ad-says-more-about-us-him-148172. [Accessed 1 October 2016].
Nike. 2016.[ONLINE] Available at: http://about.nike.com/ [Accessed 1 October 2016].