Application of Brand Flagship Program to Nike
Technology is a powerful force of change and opportunity in all areas of society. For firms who invest in and utilise technology effectively it is a highly effective way to gain competitive advantage. A huge challenge for firms of all types is in keeping up with new and emerging technologies, whilst at the same time managing the implementation of technologies which were new only very recently.
The fear and risks for firms is in missing critical new technologies, or going with new technologies which have no long-term, or even short-term potential for success. The risks and potential bonuses in going with the right new technology are huge and making the right call critical for a firm’s future success and competitiveness.
Where firms can go to for a rigorous analysis of what is new and also relevant and trustworthy is another challenge which adds to the problems. One great and trustworthy source of evidence and analysis of new technologies comes from the academic literature.
With these thoughts in mind, for your individual assignment you are to select one of the following academic journal articles, each of which explores a specific subject relating to new technology and its impact on marketing and business. The subjects and the papers are:
Platforms and Brand Marketing
Wichmann, J R K, Wiegand, N and Reinartz, W J, (2022), “The Platformization of Brands,” Journal of Marketing, 86, (1), 109 - 131
Once you have chosen from one of the subjects listed above you need to then read the paper which explores the issues and then proceed to provide an analysis and critique of the thinking behind authors’ work. You will then apply what you have found from the paper to a brand of your choice and propose how that brand can capitalise on the specific technology of your chosen paper and utilise your findings so they can implement your chosen technology with greater effectiveness and efficiency. You are also required to further explore key readings over and above the recommended paper to give depth and rigour to your work.
Individual Assignment
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Individual Assignment
The paper starts by providing a critical analysis of the selected article. The article is about the platformization of brands. In relation to the critique provided, brand optimization is the formulated strategy meant to overcome the reintermediation problem. This problem is caused by companies like Amazon, whereby they cut off the existing direct relationship between customers and original brands like Nike. They act as intermediaries, and in the process, they become the center of everything in the trading process. The critique is then followed by elaborating how Nike could apply a flagship program meant to counter the reintermediation problem. After analyzing the application of the flagship program, the paper is concluded by an evaluation of how the program can be implemented effectively.
Analysis and Critique
The argument of the authors is based on the platformization of brands. Their argument is based on the notion that Traditional product companies that have forfeited direct contact with consumers have been challenged by digital platforms that combine commodities, such as Amazon. Therefore, numerous well-known businesses have developed their flagship platforms to reclaim influence and encourage consumer loyalty (Wichmann et al., 2022). The authors examine these new platform services by analyzing which potential brands are challenging to capitalize on and propose advice to companies seeking to platformize their operations. To provide a detailed understanding of the importance of brand platformization to brands, the authors first identify the problem and then link it to the solution.
They claim that known brands were assured nothing less than liberation from the old marketing value chain due to digitalization. Many brands eagerly seized the potential to cut out intermediaries and develop immediate customer access and connections through digital platforms. When new digital integrators of commodities, such as shopping websites and browsers, developed, they quickly hijacked the consumer interface. Consequently, they relegated many offline-born companies to second place. The authors call this problem of intermediaries "brand aggression platforms" because they differ from conventional retailers (Wichmann et al., 2022). It is a problem based on the fact that because these platforms undermine brand distinction and nurture competitive pressure by showcasing countless comparable or even equivalent offerings at varying prices from multiple firms, this reintermediation through brand generalization channels may end up leaving many businesses worse off than in the pre-digital selling age.
After identifying the problem and how it affects the performance of different brands, they then dive into the solution whereby they state that the well-established brands like Nike and Adidas have started to venture into the platform businesses themselves as a countermeasure the reintermediation development. This "platformization" of identities results in solutions that go beyond the individual product brand by incorporating third-party supplementary goods, services, and information to inhabit a wider market area and more comprehensively serve consumer demands (Gielens et al., 2019). The authors believe that these emerging offerings, which they call "brand flagship programs," might be a powerful tool for product marketers to combat off-brand aggregation websites and build a direct line of communication with customers. However, according to the authors, Building competitive flagship channels is difficult for brands. While wholesalers have long welcomed platformization as a legitimate development of their customer aggregation strategy, product brands sometimes lack cross-product knowledge, see the forum as another distribution console, or are wary about rival involvement.
This difficulty is then addressed by proposing paths for brands to build flagship platforms. They offer a new way of thinking about digital channels as hubs for customer crowdsourcing and crowdsending, which are at the heart of platformized value generation and which the business may encourage or discourage to impact platform engagements. The authors have applied this notion to create a step-by-step approach for companies looking to enter the platform sector. First, the authors outline five primary objectives that customers seek while using online channels, helping to explain why platform solutions are frequently favoured over brand offerings. The findings aid in creating iconic systems that integrate customer and brand objectives. Second, they create a paradigm that breaks down the platform conception into essential components that simplify consumer crowdsourcing and crowd sending. Various platform types arise based on how these foundational parts are put together, which can help or hinder the attainment of the customer and brand objectives. Third, they suggest customer crowdsourcing and crowdsending strengths as characteristics that produce diverse consumer–platform interaction states (Wichmann et al., 2022). Brands can utilize the categorization to see how their chosen composition influences customers' use of and engagement to the company's premier platform. The advantages and disadvantages of the emerging connection states are detailed in a set of assertions. Ultimately, they make many recommendations for brands to reconsider their management methods to grasp the platform change.
Application of Brand Flagship Program to Nike
Nike employs psychographic segmentation characteristics to render its products more appealing to potential clients. It uses distinct campaigns or strategies to limit the market prospects of various segments. Targeting is a crucial part of any marketing plan, predominantly when a company operates in multiple industries (Araujo et al., 2018). Therefore, in relation to the Brand Flagship platforms, it is imperative to note that platforms have a broad comprehension according to research and application. Nevertheless, the platform concept's overall adaptability and the numerous platform kinds and marketplaces that have evolved have added complications, particularly for established brands that were mainly established before the emergence of internet technologies. Nike refused to sell to intermediaries like Amazon because they feared it would undermine its brand. Still, maybe incorporating the brand flagship p...