What is Nike’s strategy?

By now, the 30th anniversary of Nike's "Just Do It" ad campaign featuring Colin Kaepernick has blown up the internet.

If this was their intent, then it was successful.  However, will a one day, one week or even one month news cycle relative to this campaign justify the investment? Will it matter at all? What is Nike's strategy here?  Let's take a look.

Clearly, Nike knew this was going to be a polarizing event.  Kaepernick is hated by half the country for disrespecting the America by kneeling during the National Anthem.  On the other hand, half of the country love's him as a hero for a cause (which may or may not be protesting police shootings of black men).

So, at best, Nike solidifies their customer base among those who support Kaepernick.  That's good for Nike.  But at the same time, they risk completely alienating the half of the country who disagree with Kaepernick's actions.  Why would Nike do such a thing?

Remember, NBA star and Nike client Michael Jordan famously once proclaimed "Republicans buy sneakers too" or something to that effect.  With this new ad campaign, the company seems to be going completely opposite to that narrative.  This is risky because according to Forbes, Jordan (he retired in 2003) still outsold all other current and former NBA players in sneaker sales combined in 2017.  So there just might be something to Jordan's logic after all.

When a group such as the National Association of Police Organizations calls for a boycott of your products, you are clearly upsetting at least part of your customer base, when it's not necessary to do so.

I believe Nike will survive as a company, but if they continue to pander to millennial social justice warriors, their dominance in the industry will erode over time.  The rate of the erosion will be dictated by how deft their competitors are in taking advantage their customer alienating decisions.  Time will tell.

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