Air Jordan: The Sneaker that Defied Time and Trends

Owning a Nike Air Jordan is the dream of every sneakerhead around the globe. It can be called the king of the sneaker world. But how has a sneaker introduced in 1985 still stayed relevant? Last year, when Nike decided to re-release the sneaker, it was sold off within minutes. Since its inception, it has been associated with the NBA, and currently, it actively has ties with 21 basketball players who endorse the shoe.

Initial Days

Nike collaborated with basketball legend Michael Jordan in the year 1985. The production was exclusively for Jordon, designed by Peter Moore. What made it stand out was its innovative design that included an Air cushioning unit in the sole of the shoe. With improved comfort and performance, it became an instant hit with other players as well.

Turning Hurdles to Opportunities

Due to a violation of colour rules, Air Jordans were banned from NBAs, which would have been a huge blow for any company, but Jordan’s resistance against the ban and Nike’s wit turned it into an opportunity. They promoted the sneakers as rebellious and bold, making them even more appealing and a huge hit, making the NBA eventually lift the ban.

Nike’s Branding Strategies

Collaborations

Nike’s weapon to stay relevant is to collaborate with partners who are in the hype. They partner with designers, brands and artists to create unique, limited-edition Air Jordan sneakers. These limited-edition collaborations create the buzz enough to fill the pockets of both partners.

Milking from Nostalgia

Nike often brings back classic Air Jordon sneakers models in new colourways and updated materials, creating excitement around each release and appealing to new and loyal fans alike. For example, retro Air Jordans released in 2020 contributed to 22% of sales in 2020.

Innovation

The Air Jordans have not changed in colours and design alone, but they have undergone lots of changes and updates to keep up with the latest needs as well for maximised comfort. Nike invests in research and development to improve its shoe lines with new materials, technologies and design elements. They have something new to offer to the customer every year.

Strategic Marketing

Nike’s biggest assets are its ad campaigns which have always peaked in storytelling and evoking emotions. Its “The Last Dance” documentary series generated over a 50% increase in sales.

Unique Logo

The distinguished logo for the Air Jordon line, a figure jumping for a slam-dunk pose is also an appeal factor. The retail industry usually sticks to abstract easy to easy-to-remember logos just like the Nike tick, but this logo was intricate, in motion and felt very real. To the extent that this became a vantage point to identify originals from the duplicate.

Target Audience

Air Jordan is not your everyday shoes. They are premium products made under premium pricing.  Identifying the target audience in the pre-social media era was a challenge for Nike. But they kept promoting their shoes as a status symbol and must-have for anyone and at the same time, maintained scarcity for the shoes. This made it the most coveted possession as Air Jordans were hard to come by.

Current Challenges

Though the brand stays, Michael Jorden is history. Young audiences don’t connect with him; hence the name might not hold its status in the coming years.

Competitors are focusing on young players for their endorsements and have been constantly upgrading. Nike has to put up a fight to keep its symbol.

Mastering the Art of Product Pricing

In your entrepreneurial venture, especially if you’re selling something, pricing is often an underestimated decision. Only the right pricing and justifying your price makes your brand. Undervalued or overpriced products cannot withstand the market. Finding the ideal price is a tough call and here are a few pointers before identifying the right price.

1. Problem Stage Perspective:

Understand where your product fits in the lifecycle of the problem it solves. Tailor pricing to match the problem's stage: emerging, evolving, or established.

2. Embrace Customer Lifetime Value (CLV):

Each customer is a long-term revenue source, not just a one-time transaction. Craft pricing strategies to nurture and maximize long-term customer relationships.

3. Elevate Your Value Proposition:

Clearly communicate your product's unique benefits to justify price points. Emphasize your product's advantages to enhance perceived value and customer willingness to pay.

4. Pricing Psychology Matters:

Understand customer perceptions and the psychology behind pricing strategies. Use tactics like anchoring, tiered pricing, and discounts to influence customer perceptions.

5. Competitive Positioning:

Analyze the competitive landscape and position your product accordingly. Adjust pricing based on whether you're aiming for premium, mid-range, or budget market positioning.

6. CLV and Customer Retention:

Focus on customer retention and loyalty to increase CLV. Implement loyalty programs, cross-selling, and upselling to extend customer relationships.

7. Pricing for Differentiation:

Leverage your value proposition to differentiate your product in the market. Justify higher prices by emphasizing unique features and benefits that resonate with your audience.

8. Monitor and Iterate:

Continuously monitor pricing strategies and gather customer feedback. Be prepared to refine pricing approaches based on market dynamics and customer needs.

9. Balancing Short and Long Term:

Strike a balance between short-term profitability and long-term CLV optimization. Offer incentives or discounts to nurture customer relationships, even if it means sacrificing immediate gains.

10. Customer-Centric Approach:

Keep the customer at the centre of pricing decisions. Ensure pricing aligns with customer expectations, perceived value, and satisfaction.

11. Think Beyond the Numbers:

Remember pricing is about the story you tell about your product's worth. Engage customers emotionally by showcasing the value they'll receive.

It’s not an easy game to keep a brand name relevant for 40 years in the premium sector. Air Jordan, today is a collectible for any sneaker lover and auctions go up to hundreds and thousands of dollars. The main reason for the success, in my opinion, is its quirky ad campaigns and the brand’s risk-taking attitude. They took a huge risk of paying a hefty fine for letting Jordan play with their shoes. Embracing the underdog mentality allowed Nike to think on a smaller scale while still taking significant actions. This approach enabled them to reassess their brand strategy and uncover hidden opportunities that might not be apparent when they were at the top.