Last year was a time of many “firsts” for myself. I had just moved to a new country and was exposed to multiple new brands and services. As a marketer I began to notice the marketing methods that were used to attract me to adopt these brands and services. I couldn’t help but start noticing the strategies, mediums and places where I noticed marketing communication. It was more obvious to a new consumer like me because this communication that I received had a different approach compared to my home country. Last week we discussed the scope of what value creation through branding is. In this week’s article we delve into the marketing strategies of two distinct leaders in their respective industries, Nike and Amazon, to understand the effectiveness of various approaches in strengthening brand equity. These are brands that I only started consuming last year, but before we start dissecting their approaches, let’s remind ourselves of the meaning behind the term brand equity.
Brand equity is a multifaceted concept that considers aspects like brand awareness, negative and positive associations, perceived quality, and loyalty. It’s the intangible value that a brand adds to a business or its product and services, over a long-term period of time. It is generated through building recognition and positive interactions when selling to consumers. When a brand has high brand equity, it means that consumers are willing to still purchase from the brand if prices increase to a certain degree. Successful brands take advantage of this fact by charging a premium to their consumers compared to what is charged for a generic product, thereby improving the profitability of the brand and its owners. Marketing activities like marketing campaigns channels and consumer interactions are all mechanisms through which brand Equity can be improved. However, it’s important to understand that not all marketing strategies and expenditures are equally effective in enhancing this value, making a comparative analysis of industry giants like Nike and Amazon both challenging and insightful.
Nike is a titan of the sportswear industry, it has built its empire on the back of innovative marketing strategies. I purchased my first and second pair of Nike’s this past year, before that I was a dedicated Adidas fan. Moving to the US exposed me to new marketing communication. I thoroughly enjoyed the Nike commercials, billboard campaigns and of course the social media posts. What I saw showed that central to Nike’s success is its commitment to innovation and celebrity endorsements, creating a brand synonymous with excellence and aspiration storytelling.
Having worked in the footwear industry as a brand manager and designer myself, what caught my attention first was Nike’s dedication to fabric technology and innovative design. Patented and trademarked technology like Nike Air cushioning, Flyknit fabric, and Dri-FIT moisture-wicking technology created
compelling product lines and forced me to try their products on. In the scope of building brand equity, product quality is of high importance, especially with the high frequency utility products like footwear. High product quality is more likely to boost positive brand associations in the minds of consumers and provide a chance of them returning to purchase more products as they begin to trust the brand, effectively improving brand equity over time.
But what about the words? Famously known for these three words, the ‘Just Do It’ campaign stands as a testament to Nike’s mastery in emotional branding . The slogan was introduced in 1988 and has since empowered and motivated millions of individuals to achieve their dreams. The slogan coupled with athletic endorsements by figures like Michael Jordan, LeBron James, and Serena Williams not only boost the brand’s visibility but also connect with diverse consumer segments. Over time this messaging has aligned the consumers aspirations with desirability towards the brand.
Nike’s approach to digital marketing and social media has established a robust digital presence, ensuring consistent messaging and a strong online community. On Instagram alone Nike has seven accounts to differentiate audiences with various hobbies and interests like running, football and even skateboarding. This segmented approach is also carried through to their community events like Nike Community Impact and “Made to Play” aim to make sports accessible to underserved communities. Such initiatives enhance the brand’s reputation and foster consumer loyalty.
In contrast, Amazon’s rise in e-commerce is attributed to its multi-focused marketing approach, leveraging technology and customer-centric strategies. This past year I became an Amazon Prime member and started taking advantage of multiple product touch points like Amazon Fresh, Alexa, Kindle and Prime Video. Eventually, I built daily habits incorporating multiple Amazon products, especially in managing my home life. Amazon works hard to keep their customers engaged and their brand at top-of-mind awareness. Let’s look at their
approach.
Firstly, Amazon has mastered the use of SEO and PPC advertising, this ensures high visibility and efficient traffic driving, benefitting both the platform and its sellers . Amazon empowers their listed vendors by offering a system which increases discoverability based on a consumer’s search words. Product pages are also designed to promote optimization through correct labelling of products, guidelines on descriptions and product photography. Discoverability of vendor products is increased through onsite promotions and advertising which appears in banners and suggestions throughout the site and during the product selection process.
Data-driven personalized marketing is another superpower at Amazon’s use. Consumer data which is collected during a user’s experience is used for specifically targeted advertising. It has revolutionized e-commerce, offering personalized shopping experiences that boost engagement and sales. Personally I find it useful when complimentary products are advertised to me based on my previous purchase history, it saves me the time to have to search for those items separately.
User-Generated Content (UGC) has taken over the world of content creation in the past decade. Amazon has not only placed products on social media sites through influencers but it has deepened this connection within its app with a live-commerce feature called Amazon Live. Live Streams keep app users entertained and informed about the latest trends and products all which are can be shopped through trays displayed on the same feature. Last year we saw the rise and fall of the phrase “Amazon must-have” as some influencers called Amazon out for promoting over-consumption and leading viewers to bad spending habits.
On the other hand we have Amazon’s strong omni channel presence that has fostered trust and loyalty, enhancing the consumer’s shopping experience. Whether it’s through Alexa’s voice suggestions or through the weekly emails in the inbox, incorporating personalized marketing messages in the omni channel is likely to foster more trust than messages that are seen outside the omni channel. Consumers are less likely to feel bombarded by marketing messages if they are seeing it within a particular brand’s mediums.
Personally, I still feel overwhelmed by the omni channel marketing messages on Amazon mediums, and also cannot ignore that Amazon as a brand fails to create an emotional connection with me. There is a sense of “cold calling” in the adverts and if there is a better service provider in the future, I may switch without thinking twice. Whereas when it comes to Nike, the high product quality, the face-to-face customer care and the aspirational messaging has definitely created a special space in my mind. Where one brand manages to sell me more volumes, the other manages to maintain a genuine emotional connection, increasing the opportunity for return purchases.
Nike’s and Amazon’s marketing strategies, while different, highlight the importance of understanding consumer expectations and adapting to the digital landscape. Nike excels with its emotional branding and athlete endorsements, enhancing its brand equity in the sportswear industry. In contrast, Amazon’s prowess in SEO, data-driven marketing, and PPC advertising caters to the convenience and choice in e-commerce, strengthening its brand equity. Effectively each brand, despite some ineffective marketing strategies, achieves its business goals and maintains strong brand recognition with their audience.
Leave a Reply