the end of fiscal year 2020 is challenged by its ability to choose equity building endorsements, its growinglist of competitors, and its ability to develop intense and active loyal connections with its consumers (Nike, Inc., 2015). Recommendation 1: The goal of creating endorsement deals that build brand equity is difficult and risky.Michael Jordan’s contribution to Nike’s brand equity may not be realized with Nike’s other endorsement contracts, such as its contract with LeBron James. Nike continues to endorse Tiger Woods even though
Tiger Woods’ popularity and associations with “high performance” has declined. During the 1:1 interviews, only two of eleven participants identified LeBron James with Nike and eight of eleven identified Tiger Woods with Nike. Nike with its buying power over its competitors, can afford to make more lucrative deals to win over athletes and celebrities, but it needs to understand which athletes and celebrates resonate with its consumers. As Kahn stated in her Global Brand Power book, “What a brand really represents is what consumers think it represents.” My recommendation would be for Nike to actively collect data from its consumers to learn which athletes/celebrities are perceived as individuals that have the positive characteristics associated with Nike’s brand. Nike may discover younger athletes/ celebrities that exemplify “high performance” and other traits that align with Nike’s identity. Recommendation 2: The goal of increasing market share and revenue in a highly competitive industry with an increasing number of competitors is a difficult task that Nike has shown it has been able to accomplish in the past. According to Nike’s 2015 sustainable business report, Nike has obtained revenue growth earning $20.1 billion in 2011 and in $30.6 billion in 2015. With its competitors matching some of Nike’s PODs, Nike needs to continue to develop new product innovations, offer new designs and style options. The majority of the 1:1 and surveyed participants identified Nike’s quality and designs as Nike’s differentiator with its competitors. Over half the interviewees described Nike’s materials as unique. Nike’s corporate website emphasizes sustainable innovation. Only three of 23 surveyed identified this idea with Nike even though 100% of the interviewed participants had positive associations with sustainable innovation. Nike has tried via its branding touchpoints to shape its consumer perceptions into associating sustainable innovation with Nike. Nike has a dedicated URL at nikebetterworld.com. At the retail stores, there are recycle kiosks and on its product tags, nikebetterworld.com is printed on the back. However, the message is subtle and not as loud as, “Just Do It”. I think they need to create a slogan with the idea of sustainable innovation and advertise it on ads, apparel and packaging. Think of the impact an advertisement with Michael Jordan recycling his basketball shoes to be used for the surface of an inner city basketball court would make.
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