Marketing the Air Jordan

Everyone about my age remembers when Nike’s Air Jordan shoes first became a thing. It wasn’t just the ‘coolness’ of the shoe or the fact that Jordan endorsed them, although Jordan’s popularity was the bulk of it. His athletic dominance night after night turned him into the biggest star in the biggest sport. Nike’s control of basketball shoes began with a likeable star and a genius marketing campaign; it continues using the same formula today. 

Live sports on TV took a major financial leap in the late seventies and another in the eighties. Athlete salaries spiked in all three major sports (basketball, baseball, football) owing largely to television contracts for professional sports. Big contracts for TV rights ensured that clubs had larger payrolls. More people watching sports meant more people for advertisers to sell to.   

 What better way to sell products without creating events to market products. Instead of going to trade shows and marketing new kicks to dealers, well heeled (pun intended) shoe companies could sell direct. And sell they did.

The Air Jordan taught us that people bought products that had buzz and not quality. Not saying Michael’s shoe was crap just that its quality was beside the point. The aggressive marketing and Jordan’s easy charm sold the shoe more than anything. The sneaker aesthetics played a role, who didn’t love the black patent leather covering the bottom like a twenties era spat? Every single new pair looked different than the other models on the floor at the time. Most basketball shoes were pretty boring until Nike proved it was possible to sell a colorful trendy high top with some flash.

 The Air Jordan became the “it” product for kids desperate to stay hip.

The original shoes didn’t conform to the league's standard on colors that matched the jersey. So the NBA fined him. Nike picked up the tab for the fines and used the controversy to spotlight the banned shoes in commercials. A selling opportunity was born out of an unlikely event. 

Jordan the standout. Nike the rebel.  

After that Nike could use release dates to ramp up awareness of the shoe, a very expensive one for the time. The first model sold at $65. A sky high sum for the mid-eighties. After the first few models the company made just enough shoes to keep public interest high. By never making more than they could sell they ensured that interest stayed high and the prices even higher.

Gaming companies like Xbox and Playstation used to do this all the time. Create hype over the new system and produce less than you expect to sell. It does make sense to not overdo a good thing. Overproduction is the death knell for businesses hoping to keep selling similar models year after year. Too much of anything in the marketplace drives the cost down making the “it” product something everyone can buy. Better to make a few and sell them high. Keep demand soaring like the iconic Jumpman, always in the air.

 Nike knew it had a gold mine.

The increased money coming in from TV contracts added to increased visibility of stars able to sell, and sell some more. Jordan never made a lot of money in salary. Until his last couple years he was between 2 and 3 million a year. His money was through endorsements, none bigger or more important than Nike.

I read a quote recently from Kevin Durant about Nike’s popularity. “…Shoe companies have a real big influence on where these kids go. So, nobody wants to play in Under Armours, I’m sorry. Like the top kids because they all play Nike.” He was answering a question from Bill Simmons about why he didn’t want to go to Maryland (his home state school). Maryland is also ground zero for Under Armour apparel and shoes. I don’t know if Durant is right about kids not wanting to wear Under Armours, but knowing how Nike does marketing I wouldn’t be surprised if they set up the question and answer that way. Create doubt about the opponent.

Others have tried to crack the Nike code in basketball and get their own superstars like Jordan. Under Armour famously signed Steph Curry away from Nike. Adidas has a few stars, Damien Lillard and James Harden that show potential. But the battle is uphill for competitors hoping to cash in and create the next "it" shoe. Talented kids are spotted at the AAU(Amateur Athletic Union) level now and most just before that. The shoe companies sponsor many AAU teams with free sneakers and gear. Often kids want to remain loyal to a brand and sign with a college that also wears the same brand. At least that’s what Kevin Durant suggested. There is no bigger player in the shoe game than Nike and more teams wearing kicks with the swoosh on them the better it is for Nike Co. Now the Jordan brand is separate from the parent Nike but still a subsidiary. 

Long story short, Nike has been in this ad game for a while and they don’t take it for granted. Their sales techniques are still aggressive and they don’t hesitate to use bad press when it fits the situation. It will be fun to see them loose a little ground to Adidas or Under Armour and keep the shoe wars hot.

 Now if I could just afford a pair of the new Jordans.