When Grit Pays Off In Business - A Lesson From Nike
A lesson for partnerships & leadership we can all learn from. By Jenna Davies
It’s not often you hear a movie recommendation from us but this week I went to see the new Nike Air movie and I was blown away by this movie for so many reasons. I’m no film critic and despite being a self certified ‘sneakerhead’, I’m not going to dive into a review of the story line.
Here are my key takeaways from the Air film, for Marketers
(No Spoiler Alert)
Nike ‘niched’ hard, as a billion dollar company well established in the running community, they struggled to crack the basketball market.
The entrepreneurial mind and the grit of their Scout, Jonny Vaccaro saw him push against the grain of his Senior Management, resulting in him single handedly securing a meeting with the Jordan’s.
Michael Jordan was not initially chosen as Nike's first pick due to budget constraints. Instead, Nike had planned to allocate a small budget across three athletes, rather than fully backing a single player. This anecdote serves as an allegory for decision-making in business, highlighting the importance of doubling down on choices and strategies, rather than playing it safe and spreading resources too thin. It underscores the notion that multitasking can often lead to a lack of focus and effectiveness, as "to multi-task is to multi-focus”, or seemingly more relevant, “split your focus, split your results”.
The decision making between the few key players involved in this deal in a company this size reflects that of a dynamic, fast and entrepreneurial team, not bound by red tape or approvals. To me, the message to businesses here is to empower your front line, to trust in your team. Having people on the ground, with their finger on the pulse in your market is an investment, you have to back your investment and trust them to lead.
Furthermore, it is worth noting that the final outcome of the deal deviated significantly from the initial proposals. While I refrain from divulging the ending, I do want to point out every moviegoer worldwide knows how this movie ends….
The film isn’t just about shoes, you never even see young Michael’s face. This film is about business and strategy. It's engaging from the start and if you have a business mindset and you like sport, if you’re an athlete yourself, you’re enthralled in the story line from the start.
Mrs. Jordan was right, before Michael was even signed to the NBA she said “It won’t be the NBA marketing Michael, it’ll be the other way around”. As far as paid partnerships and ambassadorships go, this deal set a precedent for a deal structure never seen before, the percentage of revenue.
What could have been a $250,000 a year deal for a ‘Rookie’ turned into an estimated $256.1 million annual income in 2022 just from licensing his name to Nike alone, now that’s passive income!
According to Centuro Global, as of 2020, Jordan has made $1.3 billion from his Nike deal. His net worth is $1.7 billion according to Forbes. “The Jordan Brand revenue hit $4.8 billion in 2021, up 31% from the previous year's $3.6 billion.” Now that is a personal branding story to admire.
“A shoe is always just a shoe until someone steps in it.”
What are other brand collaborations with highly influential people that you can think of that are of this magnitude or that come close? Need help executing a partnership campaign in your business? Selecting the right channel strategy and aligning with personalities that share your message and ethos can build brand warmth faster, helping you grow from startup to scale up. Reach out to us today and let’s explore your strategic marketing goals. Book a call.
Feeling inspired,
Jenna Davies
