Underperforming Nike wants bolder brand marketing

Sport and lifestyle brand Nike is not performing to its potential, according to its CEO, who has identified a need for brand marketing to become “bolder and more distinctive”, one of four areas that require “adjustments”.

Four adjustments 

• “Our brand storytelling will leverage our athletes and sport moments to become sharper and bolder, beginning with the Olympics this summer,” John Donahoe told an earnings call. 
• He also highlighted a renewed focus on sport. The same day, Nike announced that from 2027 it would be the new kit supplier to all German national football teams, replacing Germany-headquartered adidas.
• A three-year pipeline of innovation: “In an uneven macro environment, newness and innovation are what drives brand distinction,” said CFO Matthew Friend.
• Better wholesale positioning (three-quarters of the market in unit terms): “We recognize that our wholesale partners help us scale our innovation and newness in physical stores and connect our brands in the path of the consumer,” Donahoe observed.

What it means

It’s not just about bolder marketing, it’s about doing less and doing it better. “We are sharpening our brand storytelling to tell fewer, bigger stories with greater reach,” said Friend. 

“Having a strong brand is the foundation for us to be able to drive long-term growth and profitability. And we’re focused on what it takes through this flow of innovation, being authenticated in sport, and elevating our presence across the marketplace,” he added.

Sourced from Seeking Alpha, Reuters