How Nike’s ad campaign is changing how we shop in Canada
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Nike’s campaign has changed the way Canadians shop for apparel and shoes, even though it has not made much impact on retail sales.
The company has spent more than $20-million on its online advertising campaign, which has included more than 600,000 ads on television, radio and billboards in Canada, where it launched in late 2013.
The ads have been a success.
In the last two months of April, Nike reported record sales of $3.7-billion, or 9 per cent of its total sales, up from $2.5-billion in the same period last year.
That includes sales from its latest apparel campaign, featuring celebrities and athletes, as well as a new Nike Boost model, which will be launched in Canada this fall.
The new ad campaign has been a huge hit.
Sales have risen by 25 per cent in the first six months of 2017 compared with the same quarter last year, and the brand is on track to beat its own record of $5.5 billion in sales during the same month.
“We’ve done a great job marketing this campaign,” said Jason Zweig, a spokesman for Nike Canada.
“It’s been an important part of the advertising campaign and we’re really happy with the way it’s turned out.”
The campaign has also given consumers a much clearer idea of what to expect from the company.
While some retailers have focused on a specific model, such as the Nike Flyknit, others have focused less on the details, such, for example, on how the sneakers look or the price.
For example, the Nike Zoom is a very attractive shoe for most people who live in Vancouver, but there are also a lot of people in Toronto and Calgary who are also looking for something a bit more expensive.
“You can see the differences in how the product is sold, and what they’re asking for,” said Scott Roeser, an analyst at CIBC Capital Markets.
The campaign was launched as the brand prepared to launch its first new model in about a decade, and it was expected to launch the second model by the end of 2017.
“Nike has had some success in the past in positioning itself as a brand that can appeal to casual consumers and to people who aren’t interested in sports footwear,” said Mark MacNaughton, senior vice-president for brand strategy at ad agency Viva Media.
But there have been challenges.
For instance, the shoes sold in Canada are a mix of styles.
For some consumers, the high price tag on Nike’s models has meant they’ve opted for sneakers that are too small, like the Nike X, which costs $200.
The shoes sold online are often less expensive, with styles ranging from $40 to $100.
In some cases, retailers have been forced to cut their prices to meet the ad spending requirements.
That has meant that many customers have had to go back to the retail outlets where they bought their sneakers in order to get a better price.
“The ad campaign for the Zoom has been particularly difficult,” said MacNaghton.
We did see a little bit of a dip in sales, but overall, the ad campaign worked well.” “
And a lot were very happy with their initial run.
We did see a little bit of a dip in sales, but overall, the ad campaign worked well.”
The ad campaign had a strong response.
In April, about 1,500 people were shown the ad, which had been running since early May, according to Viva’s data.
At that time, the average purchase was $42.
But that number has since climbed to $51.
A few weeks later, the number had doubled to $53.
Sales of the Nike Boost were up 35 per cent from April, and Nike said they have more than doubled in the last month.
The ad has also had a big impact on retailers who are reluctant to run ad campaigns that may be seen as targeting only a specific demographic.
“Some retailers have decided to take a more cautious approach and have opted not to run ads at all,” said John Kugler, an associate professor of marketing at the University of Ottawa.
“For a retailer that’s trying to grow and become a brand, a lot will depend on whether the campaign resonates with consumers.”
The company is hoping that consumers are more receptive to a new model, said MacRae.
“That’s going to help them build a better brand,” he said.
The brand also has plans to open new stores, and that may boost sales of its existing stores.
“I think the key is to see how we can increase brand awareness of our brand, and to continue to do so, whether it’s through social media, through a retail store opening, or whether it could be through a new store opening,” said Zweiger.
“But I think we’re on a good path, and we hope that we can continue to expand.”