Today, the Nike Swoosh is recognized around the world. This is the result of more than 40 years of work and innovation. It signed the first athletes to wear its shoes in 1973. Early on, Nike realized the importance of associating athletes with its products.
The partnerships help relate the excellence of the athlete with the perception of the brand. Through focus groups and surveys, Nike discovered the pyramid influence, which shows that the mass market can be influenced by the preferences of a small group of top athletes. After it realized this effect,
Nike began to spend millions on celebrity endorsements. The association with the athlete also helps dimensionalize the company and what it believes in. With Nike, this was, and remains, extremely important. It wants to convey a message that the company’s goal is to bring innovation to every athlete in the world. Nike also uses the athletes to design new products by attempting to meet their individual goals.
Explaining Nike’s strategy of celebrity endorsements, Trevor Edwards, vice president of U.S. Brand Management, says that the sports figures, such as Ronaldo,
Michael Jordan, and Tiger Woods, who have endorsed Nike brands, all have represented excellence in some way. Nevertheless, the athletes also have a personal side, such as their drive to win or their ability to remain humble. All these qualities speak something about the Nike brand; this not only benefits the brand, but also helps to define what the Nike brand is and what it stands for.
The company also realized that in order to achieve its lofty growth goals, it must appeal to multiple market segments. Based on marketing research, Nike divided the market into three different groups: the ultimate athlete, the athletics participant, and the consumer who is influenced by sports culture. The first segment is the professional athletes. The