Nike ppt

EFFECTS OF AN

ENDORSEMENT ON A BRANDANGELA BROCKINGTON

SUMMARY

GIVEN THE KNOWLEDGE THAT IS KNOWN ABOUT ENDORSEMENT DEALS AND THE INDIVIDUALS AND COMPANIES THAT HAVE THEM. WE WILL EXAMINE THE EFFECTS THAT THE ENDORSEMENT DEAL WILL HAVE ON A COMPANY BASED ON THREE FACTORS. THOSE THREE FACTORS ARE TO BUILD AWARENESS, VALIDATE PRODUCT FEATURES, AND BOOST BRAND EQUITY.

BACKGROUND

NIKE:• NIKE IS ONE OF THE WORLD’S TOP

ATHLETIC APPEAL AND HAS BEEN THAT WAY SINCE IT WAS FOUNDED IN 1964 AS BLUE RIBBON SPORTS.

• TODAY NIKE’S FOUNDERS BILL BOWERMAN AND PHIL KNIGHT CHANGED THE FACE OF SPORTING MERCHANDISE WITH A CASUAL HANDSHAKE.

BACKGROUND CONT.

MICHAEL JORDAN:• ON FEBRUARY 17, 1963 IN BROOKLYN, NEW

YORK A SUPERSTAR WAS BORN. MICHAEL JORDAN WAS THE FOURTH OF FIVE CHILDREN HIS PARENTS HAD.

• JORDAN LEFT NORTH CAROLINA ONE YEAR BEFORE HE WAS EXPECTED TO GRADUATE AND ENTER THE 1984 NBA DRAFT. HE WAS SELECTED THIRD OVERALL BY THE CHICAGO BULLS.

FACTORS OF AN ENDORSEMENT DEAL THREE MAJOR FACTORS:

1. BUILD BRAND AWARENESS

• WHERE BIG NAME COMPANIES VAN UTILIZE AND CAPITALIZE OFF OF AN ATHLETE’S POSITIVE PUBLIC IMAGE

2. VALIDATE PRODUCT FEATURES

• USE AN ATHLETE’S PHYSIQUE AND PERFORMANCE TO REACH TARGET CONSUMERS LOOKING TO ACHIEVE THE RESULTS

3. BOOST BRAND EQUITY

• USING ATHLETES THAT HAVE ENDORSEMENT DEALS CAN INCREASE BRAND EQUITY FOR BRANDS AS WELL AS ATHLETE’S.

METHEDOLOGY• BASED ON THE MAJOR THREE FACTORS OF HOW AN ENDORSEMENT HELPS A

BRAND.

• I WILL BE USING THE COMPANY NIKE AND THEIR BIGGEST ENDORSER MICHAEL JORDAN.

• TO SHOW THIS I WILL USE A TREND ANALYSIS. WHAT THE INDUSTRY CALLS THE “JORDAN EFFECT”.

RESULTS

1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 20000

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

12,000,000

Nike Revenue in Years

Years

Revenue in M

illions

KEY EVENTSYear Event Increase Revenue1984 No. 1 NBA draft pick,

signed to Nike$52,594

1985 Nike introduced Air Jordan 1 sneaker

$26,565

1986 Through Jordan campaign Nike reached million mark

$122,851

1991 Finals MVP, Bulls 1st NBA title

$768,366

1992 Finals MVP, Gold summer Olympics,

$401,601

1993 Finals MVP, Bulls 3rd NBA title, brief retirment

$525,773

CONCLUSIONCENTERED ON THE ALL THE FACTS THAT HAS BEEN PRESENTED, RESEARCHED, AND ANALYZED. YOU WOULD BE ABLE TO CONCLUDE THAT THE USE OF ENDORSEMENT DEALS BY COMPANY’S CAN YIELD A BIGGER PROFIT AS WELL AS A BIGGER AUDIENCE OF CONSUMERS.