How Colin Kaepernick Became a Marketing Icon for Nike

In this episode, we explore the powerful marketing campaign that brought Colin Kaepernick and Nike together, turning the former NFL star into a symbol of social justice and activism. Learn how this partnership not only created a buzz in the industry but also sparked important conversations about race, equality, and standing up for what you believe in. Join us as we delve into the impact of Nike's bold move and Kaepernick's journey to becoming a marketing icon.

Stay tuned to discover the strategies behind this successful collaboration and the lasting effects it has had on both the sports and marketing worlds.

Episode Transcript

(00:00):
September 4, 2018. Nike stock plummets 3.2%.

(00:05):
Hashtag Nike boycott is trending on Twitter.
Videos of people burning their Nike shoes
flood all over social media. And it's all because of a single tweet.
Or we can call it a single ad. Featuring former NFL quarterback
Colin Kaepernick with the tagline,

(00:26):
believe in something even if it means sacrificing everything.
Welcome to the Big Brand Theory. I'm Ronit Sharma and today we are diving into one of the most
controversial marketing campaigns of the decade and also learn about how a simple ad created such a chaos.
And more importantly, why would a brand like Nike risk it all? Let's find out.

(01:01):
Let's rewind. It's 2016 and Colin Kaepernick, the quarterback for the San Francisco 49ers,
kneels during the national anthem to protest racial injustice and police brutality.
That gets you. Sparks and nationwide divide with some hailing Kaepernick as a civil rights hero,
while others accuse him of disrespecting the flag and the military.

(01:26):
Fast forward to 2017 and Kaepernick is now out of the NFL, unable to find a team willing to sign him.
And many, many believed he's been blackballed for his political stance.
The controversy rages on and becoming a cultural flashpoint that even
draws comment from then president Donald Trump. So when Nike decides to feature

(01:48):
Kaepernick in their 30th anniversary Just Do It campaign, they are not just choosing an elite athlete.
They are also taking a stand on one of the most divisive issues in America.
But why? Why would a brand like Nike intentionally wade into such controversial wardoffs?
Now, back to September 3, 2018, Nike unveils the campaign with a tweet from Kaepernick's account itself.

(02:14):
The full ad, a two-minute video titled Dream Crazy, debuts three days later during the NFL season opener.
The ad doesn't explicitly mention Kaepernick's protest or the NFL controversy.
Instead, it furthers a diverse array of athletes overcoming obstacles with Kaepernick as the narrator.
The message is clear. Nike is celebrating those who use their athletic platforms for broader social change.

(02:42):
The reaction was very intense. Some customers start destroying their Nike products in protest.
The hashtag Nike boycott gains traction. President Trump tweets that Nike is getting
absolutely killed with anger and boycotts. But amidst all this backlash, another trend emerges.
Many people, especially the anger demographic or anger consumers, are rallying behind Nike,

(03:07):
praising the brand for its bold stance. So what was Nike thinking? Let's break it down.
First, it's crucial to understand Nike's target audience. According to Nike's own reports,
their key demographic is anger, urban, and culturally diverse group of audience.
These are precisely the consumers most likely to support Kaepernick's message.

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Second, Nike has a history of taking stands on social issues. This is not the first time they
did something out of the blue or stood for a social cause. They have did this in the past.
In 1988, they featured Paralympic athlete Craig Blanchet in a just-do-it-at,
challenging perceptions of disability. And we all know about Nike's long-standing support for

(03:53):
LGBTQ+, which is another example. The Kaepernick ad, while more controversial, aligns with this
brand's history. But the risks, as you know, were significant Nike-faced potential boycotts
damaged to their NFL partnerships, which was basically worth $1.1 billion annually,

(04:14):
an alienation of a large segment of consumers. But they took the risk. Initially, these risks
seemed to materialize. Nike's stock dropped 3.2% the day after the ad's release. But here's where
it gets interesting. Within a week, online sales had grown 31%. By September 13, the stock had

(04:38):
rebounded and climbed an all-time high. In the months following the campaign, Nike's gamble
seemed to pay off. In fact, pay off very well. Their quarterly earnings report in September 2018
showed a 10% increase in revenue. The same dream-crazy ad, which put them through a lot of backlash,
actually earned them an Emmy for outstanding commercial in 2019. But the impact went beyond

(05:04):
just sales and awards. The campaign significantly boosted Nike's brand value and Nike's brand
identity. According to Apex Marketing Group, Nike received more than $43 million worth of
media exposure in the 24 hours following the ad's release. That is interesting and that is

(05:24):
outstanding, right? Moreover, the campaign resonated deeply with Nike's core audience.
A study found that 56% of the Nike Ski demographic, which are millennials and gen Z, supported the
brand's decision to feature Kepernick. And in the long term, the campaign has become a case study
in purpose-driven marketing. And that is exactly why even after six long years, we are still talking

(05:48):
about this campaign. It demonstrated that taking a stand on social cause while it is risky can
significantly enhance brand loyalty and appeal to younger consumers who increasingly expect brands
to have a social conscience. So what can we marketers can learn from Nike's bold move?

(06:10):
First and foremost, know your audience. Nike always understood their core customers,
their demographic, what they like. As like I mentioned earlier, their demographic is
younger, urban and culturally diverse audience. And Nike knew they would support these social causes,
these social messages. That's what actually drove them in executing this campaign in the first place.

(06:32):
Second, always align with your brand values. You have loyal customers because your consumers
strongly believe you align with a particular brand value or your brand identifies itself
to a particular cause. And Nike's history of aligning them with social causes, it's a proof.
They have a consumer base which are loyal to that particular cause. And you should always strive to

(06:56):
create campaigns which aligns with your brand values. And that is exactly why Nike's
and that is exactly what Nike did. And thirdly, always be prepared for a backlash.
Nike had a clear communication strategy and stood firm despite initial negative reactions.
And fourth, always think long term. While there was a short term volatility,

(07:22):
the campaign ultimately strengthened Nike's brand. And fifth and finally, always remember
authenticity is key. Always be authentic. Nike's history of social stances in the last 20, 30 years
lent credibility to this campaign. Remember, taking a stand isn't right for every brand.

(07:45):
It requires careful consideration of your brand values, your audiences, and the potential risks
and rewards. And the Nike Kappa Nick campaign shows us that in today's world, brands can no
longer afford to stay neutral on important social issues. But it also teaches us that when done
right, taking a stand can be incredibly powerful. As Mark Parker, then CEO of Nike said,

(08:11):
we believe Colin is one of the most inspirational athletes of this generation, who has leveraged
the power of sport to help move the world forward. And with this campaign, Nike also did just that.
They leveraged the power of their brand to move the conversation on social causes or social stances

(08:33):
forward. And that's it. That's the end of the episode. And I'm Ronit Shambhala. And this has
been the big brand theory. Remember, in the world of branding, sometimes you have to risk it all to
win it all. And I want to close this episode with a quote spoken by the legend Colin Kappa Nick in
the same man we discussed, which is, believe in something, even if it means sacrificing everything.

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See you in the next.