MIT Sloan Management Review Article on Why Brand Trumps Reputation

The latest revival of Nike’s iconic “Just Do It” campaign demonstrates the power of prioritizing customer demand over social approval.

Nike’s decision to make NFL quarterback-turned-activist Colin Kaepernick the face of the 30th anniversary of the “Just Do It” campaign illustrates the important strategic difference between brand and reputation.

Brand is about generating demand among customers. Reputation is about approval among stakeholders. Nike has made a deliberate decision to increase the appeal of its brand among younger, liberal, ethnically diverse consumers globally while risking not only a portion of its existing customer base (older and more socially conservative buyers) but also its overall reputation — at least in the short term.