Mar 27, 2013
How did Nike increase market share from 47% in 2007 to 61% in 2009 in the US runner market? (A 3.6 billion dollar market)?
We’re doing a whole series of co-creative case studies here courtesy of “The Power of Co-Creation” . Venkat Ramaswamy who wrote the book was generous to give a lot of his time in the run up to a forthcoming article in idealog magazine.
This case study is a “oldie but a goodie”.
2006 Nike employees noticed runners wearing earbuds on the Nike campus
CEO Mark Parker “ Most runners were running with music already.We thought the real opportunity would come from combining music with data.”
Initiative from the customer viewpoint – better running everybody
2006 Nike plus build a shoe with built in wireless for iphone or ipod touch
Voice-overs provided congratulations on completed runs from Lance Armstrong. (Clearly this is now a mute point).
Nike plus provided a platform for runners to share music, runs in local cities, share running tips, sign up for Nike Running Club Events, find a ‘run’ for execs in a new city and issue challenges.
Co-creation benefits from Nike’s viewpoint – cost savings and deep insights
Nike + running shoe
CEO Parker says that the initiative allowed direct meaningful engagement with customers resulting in the reduction of communication spend from 55% in 2006 to 33% in 2009
Parker says “We’re not in the business of keeping media companies alive, we’re the business of connecting with customers…People run three times a week and we are right there with them”
Parker “ In more ways than one the genius of the Nike plus system is the software that allows the generation of deep insights and facilitating social connections with a community of runners.”
Commercial outcomes – this learning fuelled the way for the Nike + Fuel Band which has seen a 18% rise in profits for the equipment division
By 2009 150 million runs had been uploaded
Nike had sold 1.3 million Nike + & iPod sports kits @ $29 US
Market share rose from 47% to 61%.
Key Learning – They didn’t use Facebook they created a unique customised space that they could shape over time.
Feb 24, 2013
So Club Tourism Japan…
Japan’s second largest tourist agency Kinki Nippon Tourist (no, not joking) is a superb example of co-creation
Co-creation case study sources
Friendly staff employed to brainstorm with customers
“ Tea drinking Club designs a trip identifying activities of potential interest such as visiting tea plantations or learning medicinal values of tea”
Customers on a trip – contribute photos and content and come back to discuss
Friendly staff review the trip and also relay
future deals for these members before they reach others – in particular promoting off peak deals Then the product goes to market – “Echo Staff” are part time employees who distribute leaflets
But they are more than that they are paid to engage with customers and Advocate their feedback
Before the tours (eg tea tour) clients gather in a ‘Chie House) to get free study/history lessons about the destination.
After the tour (which has now gone mass) they meet with Friendly staff to see how it can be improved
So effectively the process is:
Pre Experience Warm Up
“Club Tourism has become the parent company’s main business in terms of sales and revenue”
Source : The Power of Co-creation – Build it with them to boost growth,productivity and profits – Ramaswamy and Gouillart
Sep 14, 2012
I apologise to readers about my absence from the blogosphere I have been ill. But I’m back now…
Co-creation is an interesting concept – it is becoming a bit like the word ‘nice’ – user generated – are there rules and guidelines for this field? To what extent is it really user generated or merely gives the appearance of being user generated?
In the first instance I wanted to look at some case studies and look at them one by one.
These 5 examples are held up by Innovation Management as ‘good examples’ of co-creation and show the benefits of taking this approach.
The examples in the link below are from a website called innovation management and the following brands are considered:
5 Examples of Co-creation in Marketing