Digital Marketing Communication Channels of Nike - Essay Example

Nike+ FuelBand The Nike+ FuelBand is a product that was developed by Nike, a sporting goods company. This product targeted the fitness conscious individuals who wanted to keep track of their activities and the energy they dispense in terms of the calories burned in a single day. The Nike+ FuelBand utilizes the accelerometer technology. The use of the accelerometer enables the recording of the various activities, which are then converted to NikeFuel points. The NikeFuel point is a measurement unit that is utilized by Nike Inc. Several of Nike’s sporting goods devices utilize the NikeFuel points as a universal point system to measure the physical activity. The system of awarding points is used to unlock achievements in the online community that enables individuals to engage other users in competition. Some of the activities that the FuelBand tracks include jogging, indoor games such as basketball and everyday activities like walking. The Nike+ FuelBand is essentially an activity tracker. It is a band worn on the wrist, and it tracks the physical activities of the wearer. It tracks an individuals activity, and the information that it gathers is uploaded into Nikes online community. The Nike+ FuelBand allows the wearers to set their goals and monitor their progression using the LED lighting up. As a person is achieving their targets, the LED on the FuelBand will light from red to green. The red color of the LED suggests that the individual has not achieved most of his or her targets while the lighting up of the green LED shows that the individual is almost or has achieved their set goals (Nike Inc., n.d.). The Nike+ FuelBand has seen successful reception in the market partly due to its product features. It comes in different sizes ranging from small to extra-large with easy insert links. The various sizes of the Nike+ FuelBand mean that every individual who is interested in the product will find a size that easily fits him or her. The product is also light in weight (the extra-large size is only 32g) (Nike Inc., n.d.). Hence, an individual who wears it will not be burdened by the bulkiness of the FuelBand. Its compact size is embedded with two types of sensors. The first one is the accelerometer, which measures the motions of an individual. The second sensor detects the ambient light. This sensor is important since most of the time the device will be used in the outdoor environment, which is brighter. Hence, it makes the display brighter so that it can be read easily. In addition to the goal progress LEDs, the Nike+ FuelBand also has another set of 100 LED lights that shows the NikeFuel points that a person has earned, the time and the calories burned. The Nike+ FuelBand is water resistant (Nike Inc., n.d.). It can be worn even during a rainy weather. However, it is not waterproof. This makes it hard to be used by swimmers. It is one of the major disadvantages of the Nike+ FuelBand. A major spec of the Nike+ FuelBand is its ability to connect and synchronize with computers and mobile devices. It has inbuilt USB 2.0 port and Bluetooth enables it to synchronize with other equipment. The FuelBand also comes with two Lithium Polymer batteries that hold a charge for four days (Nike Inc., n.d.). Target Market The FuelBand is a product that targets persons who are involved in athletics and are within 24 to 35 age group bracket. In particular, this product targets the individuals in this age group who have disposable income. The price of the FuelBand is $149 (Nike Inc., n.d.). The price for the FuelBand is steep for many individuals, and thus the typical persons in this age group should be financially secure (Mark & Jeffrey, 2013). The FuelBand targets the 24 to 35 age group because most of them are very active based on the amount of rigorous exercises they do daily or weekly. Most of the individuals in this age group enjoy modern and fast means of working out. Thus, the slogan for the Nike+ FuelBand was made to capture the spirit of this age group. The incorporation of the FuelBand with computers and smartphones applications also augurs well with this age group, since they are adept in the use of technology (Mark & Jeffrey, 2013). The Nike+ FuelBand offers a simple activity tracker that helps an individual to set and track his or her fitness goals. Its simple design and lightweight ensures that it does not get in the way of a person during the physical activities. I feel the synchronizing with the smartphones and computers was an innovative way to tap into the target market. On the other hand, its retail price of $149 is pricey for many people. Furthermore, the Nike Fuel point system may not be beneficial to an individual who does not have a Nike+ product (Nike Inc., n.d.). Nike’s Traditional marketing communication channels Since time immemorial, Nike has employed traditional marketing tools such as newspapers, sports magazines, billboards, and television and radio commercials to reach its intended customers (Michael et al, 2010). The traditional marketing channels are a form of outbound advertising as it involves building a rapport with the customers through an integrated system of referrals and networking. Nike’s Digital Marketing Communication channels Nike’s digital marketing evolves with the advancement of technology. Nike Inc. has employed a number of digital marketing tools such as a website, use of various social media platforms, e-newspapers and magazines, banner advertisement and YouTube videos (Damian & Calvin, 2012). The main difference between Nike’s traditional marketing and digital marketing is that the latter uses digital devices to reach its intended market. The digital marketing is an inbound marketing since an organization puts content on the various digital media platforms for the market to find.  Traditional Marketing’s Advantages and Disadvantages (Michael et al, 2010) There are several advantages that Nike Inc. gains from the traditional marketing communication channels: The traditional marketing strategies enable Nike to reach the mass audience. The wide reach of is a characteristic of traditional media tools such as televisions and radios enable people who may not have internet access and digital platforms to still get to know about Nike’s product. Traditional marketing strategy enjoys relative longevity. An advertisement placed on traditional media platforms like newspapers and magazines will be available to the audience as long as they are in a good and readable state (Sam, n.d). Most of the people are also accustomed to the traditional marketing tools. Traditional marketing involves real communication with the intended targets. This form of advertisement has a human touch on it. People can interact and feel this form of marketing. For instance, during a product launch or promotion, an organization may decide to throw a party or used roadshows. The digital marketing channels cannot do this. Instances where an organization uses sales people, the consumers are able to meet the company’s sale representatives on a face-to-face basis. Traditional marketing channels allow people to have a feel of the product and even test them before purchasing, hence the elimination of possible fabrication of images that can happen under digital channels (Sam, n.d). Disadvantages A typical traditional marketing communication channel has several disadvantages that may make them unsuitable to be used during this era of digital marketing channels (Michael et al, 2010). These are: Price- The traditional marketing channels are more expensive when compared to the digital marketing channels. Rigidity in time -The traditional market channels are rigid with regards to timelines. They do not allow an organization to respond quickly to changes that may occur in the marketplace. Using the traditional marketing channels makes it harder to reach the intended target. Limitation of the information that can be passed to the intended target since the spots bought on televisions, radios or print spaces are limited. Digital Marketing’s Advantages and Disadvantages (Damian & Calvin, 2012) Advantages Advertisements are low cost than the traditional marketing channels. There are no barriers, which are related to reach. It is not confined by geographical boundaries. It can be accessed at any given time. A 24/7 timeline ensures that the digital marketing channels are constantly working. Digital marketing channels have the ability to measure the reach of a certain product’s advertisement. It enables the collection of data, which can easily be analyzed to base on the success of a given product. The intended market or consumers can easily get up to date information since the digital marketing channels staff are a click away. Disadvantages There is a lot of competition in the market. There are a huge number of products sharing same information available to the consumer. The digital marketing channels always take time to realize success. Information on the digital marketing channels can quickly become outdated due to the large number of competing firms uploading data every time. It requires constant monitoring and upgrading of information. Today the marketing channels have gravitated towards the digital environment. Traditional marketing channels such as magazines and newspapers have gone digital. Therefore, organizations like Nike should embrace the digital marketing channels. However, the embracing of the digital marketing channels should not come at the expense of the traditional ones. An organization has to find a balance between the two, which will guarantee it the success in the market. Nike has effectively managed to use the digital marketing communication channels. It has used the digital platforms to create a recognizable brand. Some of the digital marketing tools that it has employed are the use of social media. It has used social media vehicles such as Facebook and Twitter to reach its consumers using these platforms (Damian & Calvin, 2012). However, Nike has not effectively utilized the digital marketing strategy effectively. Below are further initiatives that Nike should take to improve its strategy and capitalize on any opportunity that it would have missed. The first initiative is to introduce a hashtag on Twitter, a social media platform. Nikes Twitter account should incorporate the use of specific hashtags (Nike Inc., n.d.). Currently, the hashtags it has come up with are unspecific. These hashtags do not generate the desired chatter. For instance, instead of coming up with a general hashtag #counts, Nikes Twitter account should come up with a more specific hashtag that is related to the product it is seeking to generate interest in (Damian & Calvin, 2012). For instance, the Twitter account should put up #FuelCheck. The use of the word Fuel is closely related to Nike+ FuelBand. Such a hashtag will trend when people start talking about their goals that they set or have been able to achieve. Therefore, Nike seeks to benefit from a product-specific hashtag. It will be able to avoid any unrelated conversation in its thread while honing directly to the required conversations. It has been established that Nike has its account on Instagram. Nike Inc. is an organization that presents many brands. These brands need an independent identity from the mother company so that they can develop their brands. Therefore, it is necessary for some of its products such as the FuelBand to have its separate account (Manuel, 2014). For instance, on Instagram, Nike can start a promotion involving Nike+ FuelBand where it shows how the bands are won, what happens when the goals are reached, and how these bands are used effectively. Additionally, Nike should revamp its website. Being a sporting goods company, I believe its website should incorporate more color and interesting fonts to become vibrant and catchy to any visitor that visits it. The majority of people involved in sports are young people. Therefore, Nike should strive to model its digital marketing initiatives to target the young people as this group has embraced technology to access information. References Damian, R., & Calvin, J. (2012). Understanding Digital Marketing. Philadelphia: Kogan Page Limited. Manuel, D. S. (2014). Strategies in Sports Marketing: Technologies and Emerging Trends. New York: Business Science Reference. Mark, P., & Jeffrey, S. (2013). Leveraging Brands in Sport Business. UK: Routledge. Michael, S., Andrew, H., Bill, C., Geoff, F., Greg, M., & Elnora, S. (2010). Marketing (Aus): Real People, Real Choices. Sidney: Pearson Education. Nike Inc. (n.d.). Nike+ FuelBand. Retrieved from Nike: https://secure-nikeplus.nike.com/plus/products/fuelband/ Sam, A.-E. (n.d.). The Disadvantages of Traditional Advertising. Retrieved from Houston Chronicle: http://smallbusiness.chron.com/disadvantages-traditional-advertising-21215.html Read More