Looking at Selina Yang’s blog post about drake’s hotline bling video and how the attention it received affected the jacket sales of the company, Mocler (the jacket he wears in the video), immediately reminds me of Nike and their use of celebrity marketing. In her post, Selina talks about how this can be a positive thing and collaboration between a celebrity and a firm can benefit both parties. The celebrities can gain more recognition and earn some big bucks while the companies can also gain recognition and increase their customer segments. A huge example of this is Nike signing a deal with LeBron James in 2003 when he first started in the NBA for an estimated $90 million deal for 7 years, and in return he has provided Nike with a revenue of $340 million in the last 12 months with his endorsed products. This is just one example of the many deals Nike has lined up with several sports stars from a variety of different sporting leagues. Nike has contracts with Michael Jordan (basketball legend), Tiger Woods (golf), Rafael Nadal (Tennis), Christiano Ronaldo (Soccer) and many more. By signing deals with big names in the sporting industry and diversifying their clients, they are ultimately expanding their customer segments by attracting sports fans from around the world and giving themselves a comparative edge over their competitors.
Works Cited:
http://www.tsmplug.com/richlist/nike-highest-paid-endorsement-deals/