Two Brand Giants Converge

Apple and Nike have joined forces to release the Nike+iPod Sports Kit (see: http://www.usatoday.com/tech/products/2006-05-23-apple-nike_x.htm). This is a fantastic example of two premier brands joining forces for a line extension that is right in the sweet spot for both brands.

Since the launch of the first Mac in 1984, Apple has been on the cutting edge of computer technology in the eyes of consumers and since the late 1990’s has been known for innovative technology and design for its computers and peripherals including the immensely popular iPod. As for Nike, it has been on the cutting edge of sports technology and design ever since Steve Prefontaine strapped on the first pair back in 1973.

The new product is a kit that works in Nike shoes during a workout that sends information to the user’s iPod so they can monitor their workout statistics and then allows you to log those stats in a personal website. What’s great about this product is it is such a logical extension of both brand’s product lines and could only be a success with this unique brand partnership. Nike has the resources to develop their own exercise monitoring systems; but without co-branding a device with Apple, it would not have immediate success and would have struggle to gain market acceptance because Nike is not viewed as a computer technology company. Apple is also capable of developing this device on its own; but because it does not play in the athletics apparel and equipment world, it would also have struggled to gain market acceptance. It was only in the partnership of these two powerhouse brands that this particular product could be an immediate success.

This is a great example of recent trends of powerhouse brands working together to extend their products or services into areas where they could not go on their own. The partnership between Barnes and Noble and Starbucks is a good retail example of this with the exclusive serving of Starbucks coffee in the Barnes and Noble Café. Barnes and Noble knows books and Starbucks knows coffee, neither knows each other's business, even though both have the resources to enter them if they wanted. Both companies are smart enough to know books and coffee go together and that if either on their own had tried to expand into the other's space, they would have met consumer resistance and possible outright rejection. You will see more and more of these partnerships pop up as smart marketers begin to realize that by joining two established brands to launch a product or service has a better chance of producing an immediate hit with consumers.

Jake Crocker is a Partner and Brand Marketing Director at Martin Branding Worldwide, Inc. and can be reached at: jcrocker@martinbranding.com