Social media is being viewed more as a legitimate communication tool everyday.  Companies such as Facebook, Google Inc. (NASDAQ:GOOG), LinkedIn Corp. (NYSE:LNKD), Groupon Inc. (NASDAQ:GRPN) and Pandora Media Inc. (NYSE:P) have changed the way users interact with technology and society.  As a result, more companies are looking for new ways to connect to customers.

Nike Inc. (NYSE:NKE) recently launched a new product named Nike+ FuelBand.  It is a rubber bracelet worn on the wrist to keep track of daily activities by measuring steps, calories, time and Fuel metric.  The company describes it as the “intersection of sport and data with a wristband that measures movement to motivate people to be more active.”  Nike is already taking online pre-orders, and shipping the device on February 22.

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In its first major social networking campaign, Nike recently signed up @nike Twitter account.  This is where Nike has been making announcements and encouraging users to tweet specific fitness goals.  The Nike Twitter account explains, “Not only is the FuelBand a fun way to keep you active, but you can compete, collaborate & compare your activity w/each other.”  The Nike+ FuelBand also looks to capitalize on the growing smartphone market by syncing with the Apple (NASDAQ:AAPL) iPhone via Bluetooth.  A free mobile app will allow users to access Nike+, where you can track performance, see results and receive extra motivation.  The app also allows friends and athletes to compete with each other.

One of the most interesting parts of the FuelBand is the social aspect with the mobile app.  If completed successfully, the app could form a social network of athletes, a move that could help Nike strengthen its brand image and stand out even more from competitors such as Under Armour, Inc. (NYSE:UA) and Lululemon Athletica Inc. (NASDAQ:LULU).  “Historically, when Nike combines a strong marketing message with great product, they take dramatic share,” analyst Sam Poser of Sterne Agee explained in a client note.

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Currently, the market seems pleased with Nike’s performance.  Shares hit a fresh all-time on Tuesday at $104.94, which is still below the $150 price tag of the FuelBand.  The price tag looks to be the biggest obstacle for Nike to overcome.  In a recent survey on Bliss Tree, almost 31 percent of respondents are hesitant to pay $150 for the wristband, and might wait for a second generation model.  Meanwhile, 32 percent voted that there’s no way a pedometer bracelet without a stopwatch is worth $150.

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