Sponsorships
To build an imperium and be the market leader like NIKE, the organization must have a good marketing department and strategy.
"No company in the world spends as much money on
sports sponsorships as Nike”
The
endorsement of NIKE is one of the key elements to build a brand like this. The
organization has a lot of big sport athletes to promote the brand like:
1. Cristiano Ronaldo ( See a commerial at the end)
2. Lebron James
3. Tiger Woods
4. Serena Williams
5. Michael Jordan
Nike is
using professional athletes and celebrities to promote their products. The influence from the athletes and celebrities
could influence new customers. Especially really big fans of the athletes would
like to have a product from their idol. Some athletes have even their own line
like Lebron James. The revenues from the products is higher than the cost of
the sponsorship and therefore the organization spends so much money on the
sport sponsorship. Commercials and Social Media are big tools to send a messege to the audience.
NIKE has a lot of contract with athletes but are there other ways to promote the products and what do you think of the amount of sponsorship contracts?
https://money.cnn.com/2015/06/05/news/companies/nike-endorsement-dollars/index.html
Another way to promote the product is creating collab with other brand and Nike is awesome in these things.
ReplyDeleteDuring this year Nike improved the revenues thanks the collaborations with streetwear brands like Undercover and Supreme, the first collaboration with Paris Saint Germain and icon like Virgil Abloh , Tom Sachs and also rapper like Travis Scott and Kendrick Lamar.
GF
Thanks for your comment. The way of
Deletecollaboration is a really good point of you. Normally when I think about NIKE, I know the products and commercials, but not together with other brand. I beleve that the other brand could help NIKE to become more bigger, but on the other hand they don't want to be associate to much with other brand.
The club and people that you name are very good examples of different kind of sponsorship. Thankyou!
Floor Lambooij
Nike is very focused on sneakers because there are thousands of fans who love shoes and their history for these reasons collaboration like those mentioned above are essential for Nike
DeleteGF
I really like the strategy of the American company. It is true that is extremely aggressive and hard to carry it out because of the amount of money that they spend. Anyway, we have seen that it had to work perfectly. Since the last years, they are the most popular brand in the sector. Nowadays, Adidas is also pushing so hard and is reducing the distance between them, but Nike stills the Nº1.
ReplyDeleteThey might probably have other ways to promote the products, but in fact, what they are doing right now is working, so if it's working why they should change it?
I find the number of sponsorship contracts proportional if they make profits that investment. I don’t know if they will continue having the image of all the top players because other brands are becoming more aggressive. For example, Roger Federer has signed with Uniqlo and he was one of the most important images of Nike.
Hi Gerard, thankyou for you comment!
DeleteI totally agree with you that the sponshorship strategy is working very well and personally I wouldn't change it.
The competition for top-players is very hard and the example of Roger Federer is a good example of a top-player who switch. Some top-players have a life-long contract like Lebron James and maybe this could be a solution to stop the "fight" for players. This is a huge amount of money, but if there are really top-players like Lebron James it will be benifical for NIKE.
- Floor Lambooij
Nike can not only collaborate with outstanding sportsman but also with brands.
ReplyDeletee.g. Converse X Off White, Supreme X Louis Vuitton. Both of these examples are huge successes.
Cross-marketing can attract fans of two brands so as to increase the sales easily.
But what Nike have to considerate deeply is which brand should them collaborate with. The brand should have similar brand spirit (e.g. Nike is "Just do it.") and price so as not to disappoint their fan.
I really like your idea about a collaboration with other brand. I think that nike could make a good profit with other brand.
DeleteThe brand for colloboration need to be chosen very slowely and with a lot of knowledge about the other brand. The other brand need to support the NIKE products and can not surpass NIKE. The same cultural and strategy ( like the prices and vision) need to be simular to have a good outcome.
Thanks for you comment!
-Floor Lambooij
Marc Abella:
ReplyDeleteIn my opinion Nike has become so famous, not only for its sponsorships, but also for its products, because they are very good and of good quality. But the athletes who wear Nike also have a big influence on Nike's success.
Regarding the question, another way to sponsor yourself is through large-scale advertisements and subliminal messages that entice the public to buy the product.
This comment has been removed by the author.
DeleteThe sponsorships are one key element, but the
Deleteexistence and primary of NIKE are obviously the product. The athletes area big tool to promote the products are therefore very useful for the company.
The advertisments are also a tool promote the products, but also the advertisment goes by populair athletes or famous people.
Thankyou for your comment!
- Floor Lambooij
Ignasi:
ReplyDeleteFrom my point of view I think that the promotions that Nike makes together with famous athletes makes Nike obtain a much higher number of sales and also that it is more known within the market, but I also believe that Nike being a giant within its sector could allow itself the luxury of reducing promotions.
I believe that NIKE invested a lot of money for the sponshorship and that they have a lot of profit from this. If all the competitors are using the same way of investing NIKE can not reduce the cost in my opinion, because they need to stay innovative, but I agree with you that the sector spends to much money!
ReplyDelete- Floor Lambooij