Nike- A celebrity endorsement success story….

Pink Nike logonike-hyperdunk-no-flywire-pack-250x250Nike

Nike is known around the world for being one of the iconic brands. It was recently ranked as the world’s 31st most valuable brand in terms of its brand value – USD10.8 billion – by the annual Business Week’s global top 100 brand survey. In spite of many market man oeuvres (such as the recent merger between Adidas and Reebok), Nike has remained the leader in its category. Nike is also very well known for another aspect and that is its consistent use of celebrities to endorse the brand. In fact one of the most successful collaborations between a brand and a celebrity is that of Nike and Michael Jordan. Nike pulled off a very similar coup in the sports industry when it joined forces with golfer Tiger Woods to enter the golf category with its apparel, equipment and accessories. Nike had no experience in golf before. Moreover, golf being an elite game, it was generally considered that a brand like Nike would not be very successful. This might have probably been true had Nike chosen the traditional path to building its equity in the golfing arena. But Nike chose to associate with the best golfer in the world and have him endorse the brand. As is known today, Nike has emerged highly successful in golf. This channel now being used by many brands around the world raises some crucial questions about ways brands are built and also about the impact such collaborations have on branding. Is associating with a leading celebrity the easiest way to build a brand? Should celebrity endorsement be the principal channel of brand communications? How can brands decide on potential brand endorsers? What are the advantages and disadvantages of such endorsements? How does a celebrity enhances a brand image?