Negative Impact on Brand when using Athletes as Brand Ambassadors
The utilization of athletes by a brand to connect with the target market is with regards to the combination of the athlete’s skills in the sports, personality and the power to connect from an emotional standpoint.
When done right it gives the brand great leverage to operate on a profitable level in terms of sales and brand equity, however, if a controversy erupts, it affects the brands reputation, given that most brand ambassador campaigns are based around the character of the athlete.
Lance Armstrong is a classic example of an athlete’s negative activities impacting the brands reputation, being a role model and a champion with an amazing story of surviving cancer, the admission of doping, made all the brands endorsing Lance, lose their reputation in a significant manner.
The brand equity created with Lance as the face of the campaign lost all the credibility and that affected the brands status significantly, besides, there is significant impact on the brand planning process from strategic i.e. branding and tactical i.e. marketing communication.
It also impacts on social activities as evidenced by the impact on Lievstrong charity due to the doping controversy.
Nike Response Options
The first step should be to cut ties with Lance Armstrong, being a global brand it is imperative that Nike acts on the information provided by global doping agencies to showcase the brand as responsible in keeping the sports clean, since sports is the USP of Nike as a brand.
The con is that the fans or general public may feel that Nike was too quick to disconnect with a legend, without being given a chance, however, Nike as a brand have to act on a professional level.
The communications that have Lance Armstrong as the main lead, both on and offline, needs to be disconnected on an immediate basis. The move is to protect the reputation of the brand; the global presence of the Nike communication may create a negative impact in countries where doping issue is not understood in a detailed manner, also the reputational impact on the charity Livestrong may create a backlash from a niche that enjoys support for the Livestrong foundation.
Nike should create anti-doping campaigns on an immediate basis to protect the integrity of the brand; however, the campaigns will be seen by the consumers who are Lance Armstrong fans as a way to demean their loved superstar.
Reputation Building
Lance Armstrong for a start should connect with the fans and the stakeholders of the cycling sports and create a moment by apologizing that should seem sincere.
Render his services voluntarily, to create a footage detailing his rise and fall and the mistakes that he has made for the sports and athletes in general.
The primary focus should be given to more charity work, by keeping Livestrong sustainable and generate positive PR to create a good vibe around his existence.
Social media connect with the fans through different communication channels, with activities focusing on live chat, video speech, blogs writing and short videos, mostly on the topics on handling celebrity, transparency in sports and other relevant topics.
Book launch to detail the journey from being famous to infamous, with personal details to create empathy and sympathy from being a cancer survivor, champion and drug cheat.
Being a world famous athlete such activities will reconnect him with the fans and stakeholders to kick start a new beginning for reputation building in an effective manner.
Lance Armstrong created a legend due to a calamity i.e. surviving cancer; thus, he has a chance to create another legend in the face of another calamity.