While browsing though Forbes magazine, I stumbled upon this interesting article about Nike and Red Bull's marketing strategy. They both use a buzz marketing strategy, but the article states that Nike's is riskier because they choose to make a shoe line after an icon whereas Red Bull chooses to sponsor extreme athletes in events that they participate in.
Nike's strategy is riskier because Nike creates a brand around the athlete, for example; the Nike Air Jordan. The article goes on to state that it is inherently riskier because when an athlete slips up like Lance Armstrong, it brings negative attention to the company.While I agree with this article, I believe that Nike usually chooses the best athletes and can create a following unlike any other shoe company. While this strategy has more risk, it brings more reward. Nike has made made millions from the Air Jordan brand, but to bring up an example of an athlete falling in the publics eye, it would be Tiger Woods. As I'm sure most of you are aware of Tiger's fall from grace, while initially this was really bad press and bad business for Nike, it all appears to be in the distant past. The brand surrounding Tiger Woods is once again doing well and everyone appears to have forgiven him. As usual........the public tends to forgive winners. No Risk= No reward and that is why Nike will always do this. They have a formula that works and they will continue to use it.
Click here for the article
I think you bring up a good point when the general public forgets about an atheltles past when he/she is winning.
ReplyDeleteThat is an interesting comparison. I would have to disagree. Nike's product portfolio is much larger compared to Red Bull. And not all product lines are chosen with a single athlete. They have many endorsers. And some get in trouble as you mentioned which then does have a negative effect on the brand. For Red Bull similar negative consequences could result if they sponsor extreme events where a person dies. I do agree with you that it's interesting how people forgive celebs after they were publicly stigmatized and now are successful again.
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