From the very beginning, Nike as a company and brand understood that to succeed, they would need to innovate and surpass every marketing and sales effort made by their current competitors, Puma and Adidas—and that’s exactly what they did.
Nike knew that to reach unprecedented goals, they needed increased exposure, and the most logical decision was to play on the world’s most famous basketball stage: the NBA.
In the 1970s, when the Converse brand began losing its hold on the basketball shoe market, Nike and Adidas saw a once-in-a-lifetime opportunity to dominate the market and become leaders in the field.
Before the 1970s, basketball coaches and players who weren’t part of top teams had to pay out of their own pockets for their gear, including shoes. In 1977, Nike became the first sponsor to support players who weren’t considered “professionals,” starting with the University of Nevada, Las Vegas.
In that sponsorship deal, Nike provided a $5,000 grant and 120 pairs of shoes. The goal of the sponsorship was to raise awareness of Nike’s basketball shoes, with the hope that the university’s success on the court would “wave the Nike flag.”
Quickly, Nike rose to become the leading company for basketball shoes worn by university-level players, and the leap to the big screen of the NBA seemed closer than ever.
Meanwhile, Adidas continued marketing their shoes indirectly rather than taking a direct approach.
Adidas’ big fall, and Nike’s rise to dominance in the NBA, came down to one major mistake on Adidas’ part.
In 1984, Adidas decided not to sign a contract offered to them by a young, inexperienced NBA player due to his height, which was “only” 6 feet 6 inches (1.98 meters). Adidas responded by saying, “The company believes that consumers and other players would prefer to buy shoes worn by a taller player.”
And what was the name of this player, you ask?
Michael Jeffrey Jordan—or as he’s more commonly known, Michael Jordan, who today is worth over $2 billion.
Nike jumped at the opportunity and signed Jordan to a 5-year contract worth $7 million, which was unheard of at the time for a young, inexperienced player.
And the rest is history.
The lesson Nike taught us is this:
Taking risks and adopting forward-thinking marketing strategies is the only way a (then) small company can surpass a stable and established market, let alone become the leader in the field.
Take a “risk” yourself—contact us today and let’s rethink your marketing, branding, and advertising strategy.