Lance Armstrong Case write up Please follow these guidelines

Lance Armstrong Case write up

Please follow these guidelines when answering the questions

Cohesive story, not response to seperate and unrelated questions: limit bullet points No More Than 3 Pages!!!

Porter 5 forces is needed for the industry evaluation or any analytical(SWOT BCG Matrix)

Swot Analysis needs to account for threats of substitutes, rivals,threats of new entrants as well and also need a justification/argument and why is it a threat and not a opportunity

Industrial analysis(plus the analysis of the external enviorment) must be present in every case

Please address the following questions in your write-up:

1.In what ways the negative publicity of an endorser can affect the brand?

2. What types of issues with athletes can negatively affect the brand?

3. How should Nike respond to the revelation of Armstrong\'s doping issue?

4. How should Armstrong respond to the negative publicity and rebuild his reputation?

Solution

The negative publicity of a brand can affect the brand negatively. It has negative effect on the brand. It shows negative information and message of the brand. This does not help the brand in a positive way. If there is no relevance to the product and celebrity then it does not help the sale of the product. It has a negative impact on the feelings of the customers and it affects the position of the brand in the market. It defeats sales and has an undesirable effect. It causes loss of credibility and putts off the consumers. The actual message of the brand gets lost and doesn\'t add any credibility to the brand. It serves as a bad strategy and negatively decines the sales. It also leads to distrust among the consumers and there is risk of losing loyal customers (Goldsmith et al 2012).

The issues with the athletes can have negative impact on the brand. This inlcudes the issues related to bad behaviour of the athletes. If the athletes induldge in any morally incorrect behaviour and end up getting into any scandal then it affects the brand negatively. The image of the athlete has an important effect on the brand. There is a close relationship between the positive brand image of the athlete and the product. The negative image affects the brand in a negative manner.

Nike made a positive move by distancing themselves after the incident with Armstrong related to the doping issue. Nike is a prominent company that reflected that it stands for the huge cause and it is against the doping issue. It stood up for the problem and went against Armstrong by distancing themselves. However it was not successful in distancing with the Livestrong foundation which supports the cancer patients. This is not a useful move as it is not related to supporting Armstrong at all.

Armstrong should accept his mistake and positively seek apology from people. He should work actively to improve his image. He should improve his image by induldging in charity and initiatives that shows his regret for the incident. The damage that has been done to his career is grave and it will take time to come out of it. However his dedication and public campaign will help to reduce the ban and help to redeem himself.