NIKE
A Public Relations Approach
Robert Albright
Jessica Joye
Suzanne Little
Matt Minchew
Jason Waller
Megan Wilson
Mission Statement
To lead in corporate citizenship through proactive programs that reflect caring for the world family of Nike, our teammates, our consumers, and those who provide services for Nike
What Nike Does
Create authentic athletic footwear, apparel, equipment and accessories for sports and fitness enthusiasts
Through subsidiaries, design and sell a line of men’s and women’s dress and casual shoes and accessories
Principle Products
Began with long distance running shoes in 1963
Past 17 years: Air Jordan basketball shoes
Wide range of shoes, apparel and equipment
“Our Heroes”
Michael Jordan
Tiger Woods
Michael Johnson
Mia Hamm
Celebrity endorsements lend credibility and notoriety to products
http://www.nikebiz.com/story/hero_1.shtml
Financial Indicator
“A growth company that has not grown”
Impact of specific products (Air Jordan's, teenage market)
3 Month Stock Performance
Brand and Logos
The “Swoosh” only cost $35
Memorable, simple in form, workable in all sizes, invokes a strong signal
Nike DominanceComparison of Annual Revenue
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Nike Fila Reebok New Balance Adidas
Corporation
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Athletic Shoe Market Share, 2000
Athletic Shoe Market Share, 2000
Adidas15.1%
Nike39.2%
Asics2.1%
Saucony1.4%
K-Swiss3.6%
Reebok10.9%
New Balance9.4%
Timberland2.9%
STRENGTHS
Strong and meaningful response to labor criticismsHigh quality products and good overall reputationPhil Knight’s management and leadershipBrand recognition and effective marketing
WEAKNESSES
Poor communication of labor practices
Insufficient line of affordable shoes
Uninformed factory workers
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Nike's Overall Reputation
Nike’s Overall Reputation
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35.00%
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Nike Compared to Competition
Nike Compared to Competition
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Fairness of Nike's Labor Practices
Fairness of Nike’s LaborPractices
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45.00%
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Quality of Nike's Products
Quality of Nike’s Products
OPPORTUNITIES
Increased sales due to the strengthening economy
More positive public perception of Nike’s social responsibility
Growth through increased presence in low- to mid-priced shoe market
THREATS
Increased awareness of human rights
Growing competition
Competitors attracting female consumers
Mounting disapproval of alleged “corporatization” of college athletics
Recommended Action
A Closer Look At Labor Practices
And Potential Sales
OBJECTIVE 1
To increase positive public perception of Nike’s labor practices by 20% by April 16, 2003
STRATEGY 1-1
Increase communication of positive steps Nike is taking concerning labor practices
Key Publics:
Media
Consumers (esp.university students)
TACTICS
Create fact sheets outlining minimum wage discrepancies among countries
Circulate “Letters to the Editor” highlighting positive aspects of Nike’s labor practices
Bring a visible Nike representative to college campuses
TACTICS
Create focus groups to assess Nike’s labor practices
Distribute a video news release promoting Nike’s efforts in the global community
STRATEGY 1-2
Make changes to improve Nike’s current labor conditions
Key Publics:
Foreign government agencies
Nike employees
Social activist organizations
TACTICS
Create an anonymous system to protect whistleblowersSpecify and inform employees of their rights and responsibilities under the Nike code of conductProvide employees with time and money to enroll in Nike’s educational programsEnsure surprise visits are a surprise
EVALUATION
Repeat surveys at six month intervals to gauge public perception
Revisit with focus groups to record their opinions of improvements
OBJECTIVE 2
To increase American shoe sales by $100 million by April 16, 2003
STRATEGY 2-1
Establish a better presence in the affordable shoe market
Key Publics:MediaConsumers only willing to spend
less than $85
TACTICS
Develop advertising tactics to promote Nike’s Presto line of shoes ($60-$85)Aggressively target budget consumers through sales promotions and discounts on mid-priced shoesBuild a stronger relationship with moderately priced retailers through sales associatesIncrease number of Nike outlet stores offering discounted merchandise
STRATEGY 2-2
Establish a competitive presence among female consumers
Key Publics:
Media
Female consumers(potential and real)
TACTICS
Create advertisements that showcase Nike’s female shoes by featuring professional athletes and non-celebrity females who use Nike productsDevelop a shoe named for a celebrity female athlete, such as Mia Hamm, comparable to Air Jordan’sActively pursue more female athletes for endorsements and advertisements by extending competitive contract offers
EVALUATION
Measure growth of domestic shoe sales at six month intervals
Separately record sales of mid-priced shoes and women’s shoes
QUESTIONS?