Nike and Social Networking
Posted on 08. Nov, 2008 by Nikos in Business, Marketing, Social Media, Social Networking, Websites
Nike is winning a new game that other corporations, from Coca-Cola to Verizon to General Motors, have tried unsuccessfully to play: building brand loyalty via online social networking.
In the two years since it launched Nike+, a technology that tracks data of every run and connects runners around the world at a Web site, nikeplus.com, Nike has built a legion of fans. In August, for instance, 800,000 runners logged on and signed up to run a 10K race sponsored by Nike simultaneously in 25 cities, from Chicago to São Paulo. Now the company is testing a social network to promote its basketball shoes.
How Nike+ benefits the company’s bottom line is harder to gauge. Some analysts back up Nike’s claims that the site is renewing the popularity of its running shoes. SportsOneSource, a Princeton (N.J.) market research firm, says Nike accounted for 48% of all running-shoe sales in the U.S in 2006. Today, its share is 61%. “A significant amount of the growth comes from Nike+,” says Matt Powell, a SportsOneSource analyst.
Nike now hopes to score with another group of jocks: basketballers. The company is beta-testing Ballers Network, a Facebook application that lets players organize real-world games and manage their teams online.
Rivals are joining the race. Next year, adidas intends to introduce in the U.S. a sensor called miCoach that allows runners to upload heart rate and running data to a Web site via mobile phone. But an American miCoach will have a long way to go to catch up with Nike+. About 93 million miles, in fact.
Source: BusinessWeek
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