To judge the effects of marketing campaigns and assess the health of brands, marketing managers need measurement, such as the thorough metrics system which includes several elements: financial, buying behavior, memory, customer profile and marketing activities metrics (Sharp, 2013). The meaning of using the metrics is to provide the diagnostic information for managers to improve the performance of brand and business. In addition, it also provides the practical and objective report for stakeholders to identify whether the marketing is accountable or not. Nike is the global brand and also the number one sport brand in the world. Next, I will employ three appropriate marketing metrics to estimate and analyze how Nike qualifies marketing performance and achieving its goal.
Firstly, according to the Financial Metrics, Nike’s revenues have grown at an annual rate of 20 per cent and the return on investment presents averaged 47 per cent over the decade preceding 1997. It dominates the world’s athletic footwear market by having the particular customer.
Nike know about the Customer Life Value and capable of translating marketing effort into financial results. For example, the marketing strategies are not only focus on the shoes and equipment, but beyond them. It creates a way of life as a sports culture, like the attitude “just do it”, the words from Phil Knight, Nike’s chief executive. When customers wear the shoes, they may share a little of Jordan’s competitiveness and Tiger Woods’ confidence and so on. So, Nike is sport. Nike care about the customers’ lives by promoting sports to benefit of all. ‘If you let me play’ campaign provided to support women’s sport that benefits the participants, especially young women. As a result, the image of caring enterprise is no doubt ensuring that each customer relationship remains profitable. Therefore, from Customer Lifetime Value perspective, it is a good strategy which is beneficial the company. Because, in practice, when fixed costs don not increase, as long as the purchase the customers made exceed the direct costs, it will healthily contribute to the company’s profit (Sharp, 2013).
In terms of Customer Profile Metrics, Marketers should understand who their different buyers are, where they live and when they shop (Iacobucci, 2013). Nike mostly focuses on three kinds of customers: Women, young athletes and runners, in which the primary targeted customer who are between 18-40 years of age. Nike has a very general targeted demographic and geographic segment, such as North America geography, Western Europe, China. Where the sales revenue experienced a significant increase. The successful strategies of segmentation, target marketing and position result in the increase of customers’ retention and sales.
In terms of Marketing Activity Metrics, the significant strategy must be mentioned is the Nike Brand-Category Offense, meanwhile, it is important to measure how this strategy the company is actually doing. A set of activities proved the well performance of Nike’s marketing. For instance, the athletic training estimated $1.4 billion; Because of the strength of Jordan Brand, the basketball business has reached at $1.7 billion in revenue. Nike has been launching largest-ever presence at world cup, such as national team kits, new footwear and so on. In addition, as original category, running with $2.1 billion in revenue, continually contributes to key innovations and the running club with 3 million members is ranked the world largest running club. Other important category is Women’s Training. It is number one position in U.S, and top five in European markets. This business reached $740 million in sales.
Three main metrics were employed to analyze Nike’s marketing performance on brand and business. It is obvious that Nike has powerful competitive advantages in their portfolio, including the innovative brands and products which closely relevant to target customers and their greatest athletes and teams.
Dan Li , Student ID 214385605, Deakin email: firstname.lastname@example.org
Word Press username: lindalidan
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Sharp, B. (2013) Marketing Metrics, Marketing: Theory, Evidence, Practice. Oxford University Press, Melbourne, Australia.