Nike's Dream Crazy Campaign

Introduction

• Nike is known for its iconic marketing campaigns.
• On September 3, 2018, a controversial ad led to public outrage and backlash against Nike.
• Despite negative publicity, Nike's sales increased by 31% after the campaign.
• Key question: What was the ad and what marketing lessons can we learn from it?

Background

• The controversy dates back to 2016 involving NFL player Colin Kaepernick, who protested police brutality by kneeling during the national anthem.
• Kaepernick faced backlash and became unemployed in the NFL.
• The Black Lives Matter movement gained momentum during this time.

The Dream Crazy Commercial

• Nike launched the "Dream Crazy" commercial featuring Colin Kaepernick's voice.
• It quickly went viral, with over 2.7 million social media posts about the brand.
• Negative reactions included shoe burnings and boycott trends led by some individuals.
• Bipolarisation effect: Two segments of the audience emerged:
  • Supporters viewed Nike as courageous.
  • Critics saw Kaepernick's actions as disrespectful.

Sentiment Analysis

• Initial sentiment around Nike shifted from 90% positive to over 60% negative post-ad launch.
• Online conversation about Nike dropped from 72% positive to 65% negative.

Sales Impact

• Despite backlash, Nike's sales increased by $100 million.
• Appeal to the limbic brain (emotional response) is crucial for building trust.
• Purpose-driven marketing resonates particularly well with millennials and Gen Z.

Demographics of Nike Buyers

• 15% are under 18, 41% are 18-24, 19% are 25-34; 75% are under 34.
• Higher resonance with minority supporting campaigns due to demographic overlap.

Celebrities and Media Influence

• Celebrities like Serena Williams and LeBron James supported the campaign, enhancing brand perception.
• Criticism of Nike led to greater customer loyalty among supporters.
• Media coverage created a golden loop of publicity, giving $163.5 million worth of media buzz at no cost.

Lessons from Nike's Campaign

Lesson 1: Modern Branding

• Branding focuses on deeper connections with customers and stands for significant causes, not just sales.

Lesson 2: Understanding Key Subjects

• Essential subjects for marketers: consumer psychology, behavioral economics, and human-centered design.
• Recommended books:
  • "Hooked" by Nir Eyal
  • "Misbehaving" by Richard Thaler
  • "Thinking, Fast and Slow" by Daniel Kahneman

Lesson 3: Risks of Controversial Marketing

• Controversial marketing can be effective but is a double-edged sword.
• Successful examples should be studied alongside failures (e.g., Gillette's "We Believe" commercial).

Conclusion

• For more insights, consider reading "Shoe Dog" by Phil Knight or listening to it on Kuku FM.
• Marketing in the 21st century requires purpose and understanding of consumer behavior.
• Always be cautious with controversial marketing efforts.