This marketing co-operation is not “breaking news”. I know, but I believe it still worth discussing; especially as it is unmistakably producing a variety of interesting innovations. According to the Guardian, it might “for some people be the perfect marriage of design, athleticism and entertainment, to others a posh pedometer that you put in your expensive sneakers” (http://technology.guardian.co.uk/news/story/0,,1781541,00.html). It is now almost a year ago that Nike and Apple announced that they are collaborating on a range of products that further connect sports, electronics and entertainment (for press release: http://www.apple.com/pr/library/2006/may/23nike.html).
So, what has happened since last May? The first joint product was the Nike+iPod Sport Kit. The product idea came originally from Nike. They contacted Apple and asked them to develop the technology behind it. The kit includes an in-shoe sensor and a receiver that attaches to the iPod. The kit makes it possible to receive information about distance, burned calories and pace while running. The data can also be uploaded to Nikeplus.com, where users can track progress and share results. Both Nike and Apple distribute the kit. Further, there is a Nike music section integrated in iTunes music store, featuring tracklists of well-known athletes while Nike launched an apparel line with special iPod features. And there is certainly more to come….
Check out Nike+iPod Sport Kit spots on Youtube: http://youtube.com/watch?v=KrcDyxpDY9s&mode=related&search=
If you ask me, the partnership is a good example for successful marketing co-operations. The brand fit is almost ideal. Both companies are US based, global “super brands”, iconic if you want, appeal to a consumer market that is young, trendy and love the concept “of being cool”. Their approaches to design and marketing seem largely alike. Above all, they have managed to create a very lucrative and valuable win-win-win situation; for Apple, Nike and both brands’ customers.
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6 responses so far
I think the strategy behind the co-operation might go even further than we all thought at first sight.
With the challenge functionality on nikeplus.com runners can get in touch with each other (http://www.nike.com/nikeplus/#challenges). This probably addresses several marketing challenges on Nike’s side they would hardly have been able to tackle without Apple: building a real community not “only” around the brand but around running, and promoting the usage of Nike (and Apple) products by appealing to the target group’s healthy(?) sense of competition. The Campus Challenge is even taking it into the schools.
And talking about health: the never-ending fitness trend and discussions on obesity might even further foster the joint product as a real alternative to personal trainers. The sports kit is cheaper, makes better music, can be turned off whenever you want and maybe is even easier to cheat?!
Interesting. “Life imitates Art” - wasn’t that exactly what Laurie Anderson presented on her 1984 (yes, remember the Apple ad launching the Mac? Yet another example of the “LiA” paradigm) US-tour: wearable computing. Just imagine what possibilities are still to be captured whenever Marketing people dive into the realms of Art.
Almost equally interesting though might be, to get deeper into the scientific side of this. See e.g. Sally Fincher:
“The inherent freedom of playful arenas combined with intimate ubiquitous technologies has led to a new breed of guerrilla performance. Drawing on theory from computing, performance and club culture the Performance Triad model could be: a method for the analysis, deconstruction and understanding of tripartite interaction in playful arenas. We then apply the Performance Triad model to “Schizophrenic Cyborg” a part reversal of wearable computing technology where the user is outfitted with an electronic communication display and yet this display is visible to others not the cyborgs themselves. This ubiquitous performance investigates the shifting boundaries between performer, participant and observer and of technology-enhanced guerrilla performance.”
Relating this to the consumer need and want of a regained identity, subjectivity and history (see Habermas for the meaning of this in a post-industrial society), Apple and Nike clearly show: The technology is almost there.
However, I’m afraid, the mindset is not. As an example just try to convince anyone that Nike does have one of the most ethical supply chains (for the meaning of esc see http://www.ethicalcorp.com/content.asp?ContentID=5181 - people most likely will smirk at you, saying “wasn’t there something with sweatshops? And it affected their stock price? Yak!”
There’s lots to do in communicating this gap.
The co-operation obviously works:
To date, the Nike + iPod Sport Kit are said to have been sold more than 2.5 million times - a clear sign, that customers see a benefit in this co-operation. And these sales figures show, that it is a true WIN-WIN-WIN-situation: At approx. 30 EUR per kit Nike and Apple together have earned 75 million EUR.
The total revenues from this co-operation are even much higher: Since the kit actually only makes sense in combination with an iPod nano (approx. 150 EUR) and special Nike shoes (approx. 100 to 150 EUR), revenues will most likely exceed 200 million EUR - if only 25% of all kit customers have to purchase iPod and Nike shoes as well.
Hi Simon. Quick question, do you have the source for that 2.5M units stat? We offer a Nike + iPod Sport Kit carrier and this is could be very useful information. Any info. would be greatly appreciated. Thanks in advance- Brian
Hi Brian, these figures are based on inofficial statements from Nike/Apple, as reported among others in the German business magazine brandeins (article, unfortunately in German only). Hope this helps. All the best, Simon
I just came across a new Nike+ product today: the Nike+ Sport Band. The interesting aspect here is that Nike is selling a quite similar product in co-operation with Apple: the Nike+ Sport Kit. So what has brought Nike to launch this product on its own rather than in collaboration with Apple?
Contrary to the Sport Kit, the new set does not include an iPod, but a wrist band that provides all relevant running data. The set is for those who don’t listen to music when running. Thus, the reason for Nike’s solo attempt is probably the disutility of a consumer electronic partner and the simplicity of the product.
In fact, Nike just put its “old” technology in a new set. According to Nike, the two different sets will give the consumer the choice between “hear how you’re running” (iPod) and “see how you’re running” (wrist band). I wonder if this product will affect the partnership with Apple. But lately there were many rumours that the Nike+ Sport Kit will be extended for the iPod Touch and iPhone. I will definitely follow up this matter.
You can find pictures of the microsite and the two sets here
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