The Nike Issue - Paper Example

Introduction

Nike recently took a strategic approach to advertising which stirred controversy among the consumers creating the notion that the brand might be on the brink of losing its value in the face of the long-term consumers. Nike, in celebrating its 30th anniversary decided to feature the National Football League superstar turned activist Colin Kaepernick as the center of the of the advertisement with the words "Believe in something, even if it means sacrificing everything." The advertisement represented that Nike has aligned itself with an idea and issue that resonates with many young consumers and as a result, many Americans started boycotting Nike's products.

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Regardless of the opposition that Nike has faced after featuring Colin Kaepernick in their 30th anniversary, I do not believe that Nike's approach to addressing the social issue will significantly affect the brand in the long run. The inclusion of Colin Kaepernick in the advertisement resonated with the notion that Nike is taking a stand with a problem that is causing ethnic segregation hence indicating that they stand against social oppression in America. According to Fortin and Haag (2018), though many people have perceived this as a cynical move for the brand that might affect Nike as a company, it might have been the right move of gaining loyal customers who support Nike because the company stands up issues no one wants to talk about in America. Therefore, this points to the idea that Nike might have lost a segment of their consumers, but the numbers will improve eventually.

The opposition that Nike faced after featuring Colin Kaepernick as the center of the advertisement is a short-term issue that will dissolve with time. Beaton and Safdar (2018) supported this by highlighting that the shares of the company dropped by 3 percent within the first month, but so far the shares of the company are up around 27 percent for 2018. Studies reveal that the fall in the shares represents the older fans of the brand who were primarily not the target audience. However, the targeted audience who were youths and young adults between the age of 18 and 34 responded positively to the message because they found the protest by Colin Kaepernick appropriate. It thus highlights that Nike achieved its goal which was increasing their relevance to the new and active market.

Conclusion

In general, Nike decision to include the activist Colin Kaepernick as the center of their advertisement was a risk that might have damaged the reputation of the organization. However, the timing and target of the ad were right, and as a result, the positive response from the consumers overwhelmed the negative reaction. It is mainly because many perceived this message as an act of corporate social response responsibility because they addressed a social issue affecting America as a country.

References

Beaton, A., & Safdar, K. (2018). Nike Risks Backlash With Colin Kaepernick Deal. Retrieved from https://www.wsj.com/articles/nikes-colin-kaepernick-deal-puts-risk-on-display-1536081832

Fortin, J., & Haag, M. (2018). After Colin Kaepernick's Nike Deal, Some Salute Swoosh, Others Boycott It. Retrieved from https://www.nytimes.com/2018/09/04/sports/nike-protests-kaepernick-nfl-.html