Assignment-02

Assignment on-
‘’Nike’’

Course Name and Code: Marketing Management (MKT 601)

Trimester: Spring 2021

Section: A

Prepared by:
Name ID number
Nazifa Kamal Preety 112211005

Submitted to:
Dr. Kawsar Ahmmed
(Course Instructor)
Professor

Date of Submission 3.09.2021

School of Business & Economics

United International University
How Nike is using effective endorsement to insure its market superiority in the athletics
shoes, apparels, and accessories industry?
Celebrity Endorsement is a marketing strategy whose purpose is to use one or
multiple celebrities to advertise a specific product or service. The goal is to reach a
greater audience, represented by the celebrity’s fan base.
Nike was founded as bule ribbon sports by Bill Bowerman, a track-and-field coach
at the University of Oregon, and his former student Phil Knight. It’s a well-known
American sportswear company headquartered in Beaverton, Oregon.
Today, Nike is known as one of the most iconic brands. In 2017, According to the annual
Forbes ranking of The World’s Most Valuable Brands, Nike was ranked as the world’s
16th most valuable brand in terms of its brand value – USD29.6 billion.
From the beginning of its journey Nike is all known for its consistent use of celebrities to
endorse the brand. In fact, Nike sets a pure example for most successful collaboration
between brands and celebrity. It was so successful that the collaboration like Nike and
Michael Jordan lunched a new series of brand variant called Air Jordon.
In 1985, the Air Jordan line of basketball shoes flew off the shelves and revenues hit
more than $100 million in the first year alone. Nike is the biggest sponsor of athletes in
the world, it spends more than $3 billion in athletic endorsements between 2012 and
2017
This was only the beginning for Nike, as Celebrity endorsement connects with more
people, Nike used it as an advantage to its own cause, Nike’s big break came in 1994
when the Brazilian team (the only national team for which Nike had any real
sponsorship) won the World Cup. That victory transformed Nike’s international image
from a sneaker company into a brand that represented emotion, allegiance, and
identification. It helped the brand grow internationally.
Nike is using effective endorsement by long-term commitment with branding and
maintaining consistency between the endorser and the brand to establish a strong
personality and identity. Mostly Nike used celebrity endorsements as long-term
strategic decisions affecting the brand.
Nike is signing celebrities who are attractive, have a positive image in the society. Here
we can see the timeline of celebrity endorsement of Nike,
Nike is maintaining a match between the brand being endorsed and the endorser, so
that the endorsements are able to strongly influence the thought processes of
consumers and create a positive perception of the brand.
As a successful company Nike also monitored the behavior, conduct and public image of
the endorser continuously to minimize any potential negative publicity.
As celebrities command a high price tag, Nike constantly lookout for emerging
celebrities who show some promise and potential and sign them on in their formative
years
Now a days where everyone spends most of their day on social media, there’s no doubt
that celebrities have an impact on our lives. For some people more and some less.
Marketing values have changed throughout the years. From once using a products
attributes as the key point of selling, to involving celebrities, As Nike manages to
educate consumers about the personal values, benefits and quality of a product, it also
validates the individual fit of a product or service for their individual situation.
We need to keep in mind that, At the end of the day, a brand must let consumers know
why to buy their products, not the celebrity. They are the ones that need to advice,
convince and help shoppers decide, not the celebrity.