Celebrity Endorsement Strategy: Nike and Federer Case Study
Using Nike's relationship with Federer as an example, the paper analyzes the use of celebrity endorsement strategy of the brands beginning from choosing the right celebrity figures until the final results of the strategy. Many industries promote their products by hiring the services of influential celebrities who advertise the products in question. The celebrity has to have various characteristics in order to be seriously considered as endorser. The company also has to take various steps to protect itself. The whole process of considering, finding, and finally hiring a celebrity is one that is done incrementally and thoughtfully with the whole, actually, occurring in four stages. Celebrity and brand are closely intertwined. Just as celebrity may profit the brand, the brand also effects the reputation of the celebrity. The company-endorser relationship, in other words, can provide potential benefits to both with both brand and endorser receiving increased attention and both benefitting from deal in various other ways. On the other hand, potential hazards include the fact that the endorser may overshadow the brand, may become involved in public controversy hence tarnishing the brand, and may be too expensive. Ultimately, research shows that the product has to be good to begin with and that
The trend seems to be that celebrities are losing the appeal in marketing. A worthwhile product and ad will always attract notice regardless of endorsement. A poor one will fail for the same reason. Nonetheless, given the appeal of celebrities, it is likely that celebrity endorsement will always be around with their accompanying benefits and risks.