Nike + iPod: Taste of Things to Come

High profile corporate deals have been around for as long as we have had a corporate world. Words like synergies, rubbing each other’s backs, leverage and so on get thrown around with the idea that CEOs, marketing folk, customers and most importantly, stock holders, will cheer. On the other hand, the competition will quiver in their boots and rush to make their own deals.

Last week, Nike and Apple announced a partnership that apparently targets those among us who spend money as an incentive to do the right thing. You know the kind (I am one of them ): We buy a set of diet books so that we will diet, buy a treadmill so we will exercise, buy Quicken so we will take care of our household accounts and buy those Spanish tapes so we will learn a new language. Our expenses are intended to guilt us into doing what we set out to do. These things lurk in every corner of the house, until we break down. If you ever needed extra guilt to work out, the Nike+iPod deal is for you. You will walk into the Nike (or Apple) store and say, “Hey- if I bought these cool iPod-ified shoes I may work out more.” Those few hundred dollars of extra guilt may just push you over the edge—there is a chance you may start working out.

Of course, there is another market for it. Runners with iPods who are in the market for shoes and runners with Nikes in the market for an MP3 player may look at this deal as incentive to buy a Nike or Apple product. The true power of this deal will be experienced only by people who are consistent, long-distance runners.

The Equipment
To take complete advantage of the Nike+iPod idea, you would need an iPod Nano, Nike+ shoes and a Nike+iPod Sport Kit.

The special Nike+ shoes have a pocket beneath the insole that can house the Nike+iPod sensor. This sensor will send information to your Nano wirelessly while you run. The sensor uses a proprietary protocol to communicate (i.e. not bluetooth) with the Nano.

The Run
While running, the Nano will display pertinent information on its screen. It will continuously show the runner the duration of the run, the distance run since reset and the pace of the runner. Also, the current playing song will be shown.

If the runner has chosen to use the online component, the Nano may also have Nike+ content on the Nano that would provide training feedback, pre-built music+motivational mixes and more.

Synchronize
Once you get home to a computer, you can have the Nano synchronize your run statistics with your online account through iTunes. This allows you to recall information on past runs, analyze your performance, set milestones and break records. The Nikeplus.com account keeps statistics on your speed, distance and calories burnt on a per run, per week or per month basis. It also allows you to connect with other runners from around the web, opening it up to possibilities of competition and motivation.

The online component also features “Nike-created content”, workout-specific mixes that offer tips and motivation with music, celebrity athlete playlists and podcasts through the iTunes Music Store.

So What?
If you run often, you have probably already made up your mind as to whether this is a good idea or not. If you already are a slave to the pedometer and keep spreadsheets of past performance, this will make it easier on you. The average runner, who may not be as obsessive, may still find it interesting to keep stats if they already own a Nano and are in the market for new shoes.

For the rest of us—those who don’t run religiously—there is an element of “so what?” in this deal. Yes, it may inspire an impulse-buy that would re-enforce our guilt, but we have a nagging “so what?” in the back of our head too.

The answer may be a little complex. For a long time we have seen the iPod Halo effect being talked about—how the iPod is supposed to boost Apple’s Macintosh sales. There is no clear indication that this has happened. What is clear that an entire iPod accessory industry has arisen out of nowhere and is now a business that keeps many companies afloat. The Nike deal, along with many car deals before it, shows the iPod effect at a much higher level- where even if a small percentage of the huge user base of the iPod can be convinced to choose Nike over Adidas it would make a huge difference. In that respect, the importance of such an alliance for Nike is obvious.

From Apple’s point of view, as these ties become stronger, the iPod effect becomes the MS Windows effect. At that point, people may stick with the iPod through inertia and because it works with everything else. If your iPod just works with your car, your shoes and everything else you own, how likely are you to switch to another brand’s music player? The more pervasive these deals become, the harder it will become to separate a person from their iPod.