Beth Fossen, assistant professor of marketing at Indiana University’s Kelley School of Business, is intrigued by Nike’s new ad campaign featuring Colin Kaepernick, noting that only a handful of brands have taken such a stance on a very divisive topic.
“Early stock-market reactions for Nike suggest that investors are concerned and uncertain about how this ad campaign will impact Nike’s sales,” said Fossen, whose research studies advertising, online word-of-mouth, branding, and political marketing.
“Consumers have a ton of choices when it comes to purchasing products these days. Companies that take stances on divisive issues can help consumers feel like their purchase decisions mean something more than simply buying a product,” she said. “Something similar can be said about the opposite decision involving consumers boycotting a product. Which force will be stronger in terms of impacting Nike’s sales remains to be seen.
“There are several reasons to believe that Nike won’t be hurt by this ad campaign. First, Nike is a global brand. This ad campaign is unlikely to influence consumers beyond the U.S. market given the controversy’s U.S. centric focus.
“Second, this ad campaign has associations consistent with Nike’s brand image: it’s bold and it’s rebellious. These are very much characteristics that I imagine Nike wants consumers to associate with its brand and products. Lastly, this ad campaign is generating a lot of word-of-mouth for Nike, keeping the brand top of mind and relevant to consumers.
“It would be advantageous for Nike to make sure this ad campaign does not trivialize the social issues associated with the divisive topic, as this could dampen support from advocates of the ad campaign. One way Nike could go about doing this would be to donate a portion of sales to organizations that aim to address the relevant social issues.”
Fossen can be reached at 812-856-0821 and [email protected].
RSS