In September, Nike announced that former senior executive Elliott Hill would replace John Donahoe as president and CEO. This was an effort to boost recent years of lackluster sales. Under Donahoe, Nike focused solely on quick returns, at the cost of funding and interest to their PR and marketing departments. This ultimately hurt the company and brand in the long term.

Let’s explore what didn’t work, what Nike lost, and what the future may hold.

What didn’t work

After Donahoe took over Nike in 2020, the company pivoted to a direct-to-consumer model, which did well in the early years of the pandemic. However, Nike’s focus on e-commerce placed departments such as product innovation and resonant marketing on the back burner. Smaller competitors like On Running swooped in with grassroots marketing and new products that got people talking.

Nike’s lack of planning for future products and ways of marketing them ultimately hurt the company. Shoppers passed over Nike’s stagnant offerings. In June of 2024 their stock was down 20%, creating the worst day in their 44-year history as a publicly traded company.

What Nike lost

Looking at Nike’s past success, it’s easy to see what the company where the company has faltered. Communiqué’s blog post, Achieving Greatness Through Empathy, highlights some of Nike’s most memorable marketing moments. Some effective campaigns include:

• Michael Jordan’s “Wings” poster, showcasing the superstar’s impressive wingspan.
• Colin Kaepernick’s “Believe in Something” ad, addressing Kaepernick’s sacrifices for civil rights.
• The “Find Your Greatness” campaign, showing that everyone can succeed.
  
  

The critical takeaway is investing in ways to engage a diverse target audience. Nike tailors its messaging to resonate with various demographics, from elite athletes to everyday fitness enthusiasts. PR plays a critical role in amplifying these messages, ensuring they reach the right people at the right time.

Nike frequently collaborates with influencers and athletes who embody its brand values. These partnerships enhanced Nike’s credibility, generated buzz, and fostered community engagement. When a celebrity athlete shares their story of resilience, it’s not just a marketing campaign; it’s a PR opportunity that can inspire millions. When Nike’s pivoted to a direct-to-consumer module, they spent less time and focus creating these memorable campaigns, losing a big factor in what made the brand so relevant.

What the future holds

Many are excited for Nike’s new direction. News of Elliott Hill’s return to the company has been highly positive, with an “audible cheer on Nike campus when the news [was] announced.” Hill’s arrival is seen as a return to what made Nike a household name. Hill was previously Nike’s president and led all commercial and market operations for the company brands before retiring in 2020.

It might seem like a marketing and PR investment is an extra unnecessary cost, especially in the beginning of the pandemic when Donahoe started as CEO, but the investment often leads to high returns and stability in the long term. The business landscape constantly evolves with new trends, technologies, and consumer behaviors. Businesses can adapt their strategies by analyzing market trends and consumer insights and remain competitive. This agility is crucial for long-term success.

Companies prioritizing their marketing and PR departments are better positioned to seize opportunities and navigate challenges in a rapidly changing environment. The cost of neglecting these areas far exceeds the investment required, as Nike showed. Engaging customers in meaningful ways and staying competitive are critical to long-term success.

Focusing only on quick returns with the direct-to-consumer model ultimately hurt Nike’s brand. Hopefully, with the new leadership’s renewed interest in PR and marketing, Nike can make a triumphant return.