If Nike is a Small Business…

When Nike withdrew their sponsorship deal with Oscar Pistorious, I asked myself, how many deals will go wrong with Nike? We have that of Tiger Woods, Michael Vick, Marion Jones, Justin Gatlin, Lance Armstrong and recently, Oscar Pistorius. When I consider all this high profile endorsements, I asked myself if Nike is a small business, will it survive with all the negative publicity from its major endorsements?

Maybe there is something about the endorsement that is working for Nike in spite of the negative publicity that the small business owners may need to learn. But then, if Nike is a small business, will it still continue promoting is business this way? I don’t see a retail store that is involved in so many ‘bad endorsements’, still maintaining such business model and continue to wax stronger except the benefits are higher. 

Although it cost a lot to engage a celebrity, it could also be that more customers are gained when the going is good such that the numbers of losses as a result of ‘Bad endorsement’ deals are insignificant.

No doubt Nike grows its customer based from all these endorsements, but the number of ‘bad endorsements’ are also enough to ground any business. Thankfully, the company has successfully managed its way through the scandals to remain on top of their game. The company seems to have a model that keeps it afloat even when their endorsement goes bad. It seems their decision to pull out, suspend, or continue with a celebrity is dependent on the gravity of the offense.

In marketing, celebrity endorsement is often used to enhance product’s brand image. Though some experts believe that celebrity endorsements only enhances product recall but not sales, studies have show that Tiger Woods’ endorsement of Nike products, which began in 2000, resulted in the acquisition of about 4.5 million customers and $60 million dollars in profit. And maintaining their relationship with Tiger Woods, even after the scandal earned Nike an overall profit in golf ball sales of $1.6 million greater than it would have been without him.

Maybe if Nike is a small business, with all these negative publicity from it ambassadors it would have stopped using celebrity endorsement to promote its brand because of the cost involved.What do you think?

Business Quote for Today

“If things seem under control, you’re just not going fast enough.” Mario Andretti

“The first problem for us all, men and women, is not to learn, but to unlearn.” Gloria Steinem

“If you don’t make mistakes, you aren’t really trying.” Coleman Hawkins

“It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change.” Charles Darwin

Business Quotes

In the business world, everyone is paid in two coins:  cash and experience.  Take the experience first; the cash will come later.  ~Harold Geneen

A business that makes nothing but money is a poor business.  ~Henry Ford


The absolute fundamental aim is to make money out of satisfying customers.  ~John Egan



Wise are those who learn that the bottom line doesn't always have to be their top priority.  ~William Arthur Ward



Hire character.  Train skill.  ~Peter Schutz

Professionalism is a frame of mind, not a paycheck.  ~Cecil Castle

Revisiting your Business Vision and Mission Statement

When I studied the reasons behind some failed brands, I observed that many of them altered the value of their Mission and Vision statement. Though on paper, the statements remained the same, but in practice, the corporations were doing something else.

I think this is one of the pitfalls of having a successful brand; corporations are tempted to extend it to other products and services. However, I notice that when such ventures fail, the businesses go back to what the company was originally established to do.

For small businesses, the temptation to drift away from the original vision is also there. There is need for entrepreneurs to revisit those statements and ensure that they can innovate, diversify, and extend their products and services while still maintaining the value promised by those statements.

When you develop a compelling vision about your business, it tells you and the society where the business is headed to. It prepares you for the future such that even when things go rough, you feel challenged to press on. That is why your vision statement should be part of you. You don’t just speak about the vision, you live the vision.

You must communicate the vision as you get more people into your business, and continue to nurture and support that vision every day, in every way.

Don’t forget, your Vision is different from your Mission. Your Mission Statement describes what business you are doing, and who your customers are. It gives your business a focus and a direction because it tells the very essence of your business, and how you will move from where you are to your desired destination. One important element about the mission statement is that if properly drafted, it will be broad enough to allow for expansion, and quite narrow to keep you focused.  The mission statement should,

1.     describe what products you are offering;

2.     list the functions your business performs;

3.     identify your customer;

4.     locate your business within the market;

5.     also state the reason why customers would prefer to buy products and services from you.

There is need as a business owner to revisit your vision and mission statement and ensure you are still on course.