Contemporary Issues in Marketing - Co-Creation in the Case of Nike

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Nike: a case of co-creation
Evaluations and Recommendations on the theoretical aspects of co-creation and its implications in the current Nike marketing activities.

Table of Contents

1. Executive Summary....................................................................................................3 2. Company Background................................................................................................4 3. Current Marketing Activity........................................................................................5 4. Evaluation of Marketing Activity...............................................................................6 5. Recommendations.....................................................................................................12 6. Conclusion.................................................................................................................15

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1. Executive Summary Nike is a multinational clothing, footwear, sportswear, and equipment supplier. Nowadays it is the largest seller of athletic footwear and apparel in the world. They employ more than 33,000 people globally and sell products in more than 180 countries around the globe reporting revenues of 19.2 billions of dollars. The mission statement of Nike, as the world's leading athletic brand is “to deliver innovation and inspiration to every athlete”. Through its current marketing activities, Nike is connecting with millions of customers and sports fans all over the world because of its strategy based on building, promoting and maintaining customer relationships through the use of internet tools. As a consequence, Nike customers take part in the creation of the product in two ways: directly when designing personalized pairs of shoes and indirectly through the information provided within the online community. This type of marketing is called co-creation. Some examples of Nike current marketing activity when making use of such theory are Joga.com, Nike ID, Ballets Network, Nike+iPod Sport Kit, Nike Blog, and the campaigns called “Write The Future”, “we want to give you what you want” and “NIKEiD: Design Nike Shoes, Clothing and Gear” among others. Those activities will be evaluated and discussed in the following essay to finally provide some recommendations to improve them. Co-creation is a marketing theory based on interaction between the customer and the firm. In such interactions, the customer creates the product and connects with other community users to dialogue about their interests and to share their concerns, experiments with products and ideas providing unplayable feedback to the companies involved (C.K. Prahalad, 2004). Furthermore, co-creation not only creates value but customer loyalty (S. Auh et al, 2007) and it creates a feeling of satisfaction which reduces the capacity of product failure. On the other hand, failures when using those tools can cause problems which are more difficult to solve than classical methods due to its quick spread into the society (A. Davidson, 2004). These practices have been applied for Nike and its implications will be discussed in the following paper. Further evaluation was undertaking applying the DART model to guide the evaluation of cocreation theory which consisted in identifying the interaction of four variables: dialogue, access, risk assessment and transparency in Nike practices to conclude that those four variables were applied by Nike. 3

Furthermore, the three components of co-creation for the creation of value (A. Payne, 2008) were also found in Nike practices as we identified the customer, the supplier and the encounter or exchange of information between both. Finally, several recommendations are suggested in order to avoid several mistakes committed in the past such as Joga.com and to increase the community of users as well as their potential customers.

2. Company Background Nike is a multinational clothing, footwear, sportswear and equipment...
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