The Eyelet.

Since the Tiger Woods scandal broke last Fall, we’ve been regularly asked our opinion on the effects both to his personal brand and to those of the brands who’ve endorsed him. I’ve fielded the question in brand workshops, speaking engagements and client meetings. In the five months since the story unfolded, we’ve generally seen it as one of the larger destructions of brand equity in recent memory. In fact, Associate Professors Dr. Victor Stango and Dr. Christopher Knittel at the University of California Davis estimated that from the time of his accident to the announcement of his “indefinite leave” from golf that his endorsing brands lost $5-12 billion of shareholder value.

As the scandal unfolded, Nike was one of the few remaining sponsors to stand by him. Its reasons are obvious. The company’s entire portfolio of golf attire and equipment hinges on his successful return to the sport. Without Tiger Woods, Nike’s business in golf stands to suffer considerable near-term losses.

All the same, the company’s new ad campaign is nothing short of brilliant. The 30-second spot feels more like a PSA than an advertisement for one of the world’s most respected brands. The face staring across from the viewer feels broken and worn down. His father, speaking posthumously, is simultaneously authentic yet eerie. Ultimately, the spot manages to make Tiger feel vulnerable and human in a way he has never before. It sets the basis for a new relationship between the brand, its consumers and its beleaguered spokesperson. As Tiger returns to the spotlight and continues his unquestioned success on the course, we suspect that Nike will again see considerable brand value and financial return from its decision to endorse him. And, this simple 30-second television commercial will be a significant link in reversing much of the loss in brand equity that preceded it.

View the commercial.

Sources

http://faculty.gsm.ucdavis.edu/~vstango/tiger003.pdf