This document examines the effects of endorsement deals on companies based on three factors: building awareness, validating product features, and boosting brand equity. It uses the example of Nike's endorsement deal with Michael Jordan to show how the deal helped increase Nike's revenue and brand awareness over time. A trend analysis shows that key events in Jordan's career that increased his popularity, such as NBA titles and Olympic success, correlated with increases in Nike's annual revenue. The conclusion is that endorsement deals can yield greater profits and a larger consumer audience for companies.

2. SUMMARY
GIVEN THE KNOWLEDGE THAT IS KNOWN ABOUT ENDORSEMENT DEALS AND THE
INDIVIDUALS AND COMPANIES THAT HAVE THEM. WE WILL EXAMINE THE
EFFECTS THAT THE ENDORSEMENT DEAL WILL HAVE ON A COMPANY BASED ON
THREE FACTORS. THOSE THREE FACTORS ARE TO BUILD AWARENESS, VALIDATE
PRODUCT FEATURES, AND BOOST BRAND EQUITY.

3. BACKGROUND
NIKE:
• NIKE IS ONE OF THE WORLD’S TOP ATHLETIC
APPEAL AND HAS BEEN THAT WAY SINCE IT WAS
FOUNDED IN 1964 AS BLUE RIBBON SPORTS.
• TODAY NIKE’S FOUNDERS BILL BOWERMAN AND
PHIL KNIGHT CHANGED THE FACE OF SPORTING
MERCHANDISE WITH A CASUAL HANDSHAKE.

4. BACKGROUND CONT.
MICHAEL JORDAN:
• ON FEBRUARY 17, 1963 IN BROOKLYN, NEW YORK A
SUPERSTAR WAS BORN. MICHAEL JORDAN WAS THE
FOURTH OF FIVE CHILDREN HIS PARENTS HAD.
• JORDAN LEFT NORTH CAROLINA ONE YEAR BEFORE HE
WAS EXPECTED TO GRADUATE AND ENTER THE 1984
NBA DRAFT. HE WAS SELECTED THIRD OVERALL BY THE
CHICAGO BULLS.

5. FACTORS OF AN ENDORSEMENT DEAL
THREE MAJOR FACTORS:
1. BUILD BRAND AWARENESS
• WHERE BIG NAME COMPANIES VAN UTILIZE AND CAPITALIZE OFF OF AN ATHLETE’S POSITIVE PUBLIC IMAGE
2. VALIDATE PRODUCT FEATURES
• USE AN ATHLETE’S PHYSIQUE AND PERFORMANCE TO REACH TARGET CONSUMERS LOOKING TO ACHIEVE THE
RESULTS
3. BOOST BRAND EQUITY
• USING ATHLETES THAT HAVE ENDORSEMENT DEALS CAN INCREASE BRAND EQUITY FOR BRANDS AS WELL AS
ATHLETE’S.

6. METHEDOLOGY
• BASED ON THE MAJOR THREE FACTORS OF HOW AN ENDORSEMENT HELPS A BRAND.
• I WILL BE USING THE COMPANY NIKE AND THEIR BIGGEST ENDORSER MICHAEL JORDAN.
• TO SHOW THIS I WILL USE A TREND ANALYSIS. WHAT THE INDUSTRY CALLS THE “JORDAN EFFECT”.

7. RESULTS
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
Nike Revenue in Years
1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000
Revenue in Millions
Years

8. KEY EVENTS
Year Event Increase Revenue
1984 No. 1 NBA draft pick, signed to
Nike
$52,594
1985 Nike introduced Air Jordan 1
sneaker
$26,565
1986 Through Jordan campaign Nike
reached million mark
$122,851
1991 Finals MVP, Bulls 1st NBA title $768,366
1992 Finals MVP, Gold summer
Olympics,
$401,601
1993 Finals MVP, Bulls 3rd NBA title,
brief retirment
$525,773

9. CONCLUSION
CENTERED ON THE ALL THE FACTS THAT HAS BEEN PRESENTED, RESEARCHED, AND ANALYZED. YOU WOULD BE
ABLE TO CONCLUDE THAT THE USE OF ENDORSEMENT DEALS BY COMPANY’S CAN YIELD A BIGGER PROFIT AS
WELL AS A BIGGER AUDIENCE OF CONSUMERS.