Marketing Uncategorized

Tip your cap to The Captain, and The Swoosh

Jordan brand released another Derek Jeter commercial. This isn't the first time Nike and Jordan have focused on nostalgia.

Nike’s Jordan Brand recently released a commercial for New York Yankees captain Derek Jeter that struck a chord with fans. It was well made and carefully thought out, paying tribute to a future first-ballot Hall of Famer playing in the final games of his career.

Nike commercials have a nostalgic effect. The Jordan brand commercial with players mimicking Michael Jordan’s signature moves comes to mind.

These commercials that display the use of music to invoke emotion are also memorable.

(a younger Jeter is in this one)

More recently, Nike released a short for the World Cup.

Nike’s use of commercials for marketing continues to be an important key to its success. The ability to advertise its products in a manner that tells a story to make an emotional connection continues to be groundbreaking.

The 2013 Nike annual report shows over $25 billion in sales, close to $3 billion in net income and over $12 billion in total assets. That is more than the GDP of some countries. With some quick analysis of Nike’s financial statements, interesting correlations with certain marketing campaigns are apparent. Let’s focus on two specific commercial/marketing campaigns and the corresponding company financials for the years before, during and after.

The first commercial is literally that. Nike aired its first national television ads in 1982.

Year Sales Net Income Total Assets
1981 $457,742 $29,955 $230,289
1982 $693,582 $49,036 $375,473
1983 $867,212 $57,004 $508,028

The second commercial is the famous Michael Jordan and Spike Lee campaigns of 1991.

Year Sales Net Income Total Assets
1990 $2,235,244 $242,958 $1,094,552
1991 $3,003,610 $287,046 $1,708,430
1992 $3,405,211 $329,218 $1,872,861

It would be incorrect to say these financial improvements are solely due to the commercials above. Many other reasons and core competencies contribute to Nike’s success, past and present. But in today’s world, where Nike seems to have an industry stranglehold and companies such as Under Armour try to pay (overpay?) Kevin Durant to help market its basketball line. Nike has had a figurative marketing running start while others play catch-up.

%d bloggers like this: