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 whistleblowers Specify and inform employees of their rights and responsibilities under the Nike code of conduct Provide employees with time and money to enroll in Nike’s educational programs Ensure surprise visits are a surprise
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 servicee 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
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 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 products Develop a shoe named for a celebrity female athlete, such as Mia Hamm, comparable to Air Jordan’s Actively pursue more female athletes for endorsements and advertisements by extending competitive contract offers
STRATEGY 1-1
Increase communication of positive steps Nike is taking concerning labor practices Key Publics: Media Consumers (esp.university students)
WEAKNESSES
Poor communication of labor practices
Insufficient line of affordable shoes
Uninformed factory workers
Nike’s Overall Reputation
Nike's Overall Reputation
“Our Heroes”
Michael Jordan Tiger Woods Michael Johnson Mia Hamm Celebrity endorsements lend credibility and notoriety to products
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Reebok 10.9% Adidas 15.1%
STRENGTHS
Strong and meaningful response to labor criticisms High quality products and good overall reputation Phil Knight’s management and leadership Brand recognition and effective marketing
Quality of Nike’s Products
Quality of Nike's Products
45.00% 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
Well Below Average Above Well No Below Average Average Above Opinion Average Average
Nike Compared to Competition
35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
Well Below Average Above Well No Below Average Average Above Opinion Average Average
The “Swoosh” only cost $35 Memorable, simple in form, workable in all sizes, invokes a strong signal
Nike Dominance
Comparison of Annual Revenue
10
2001 Annual Sales (In Billions)
40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00%
Well Below Average Above Well No Below Average Average Above Opinion Average Average
Nike Compared to Competition
EVALUATION
Repeat surveys at six month intervals to gauge public perception Revisit with focus groups to record their opinions of improvements
OBJECTIVE 2
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 shoes Build a stronger relationship with moderately priced retailers through sales associates Increase number of Nike outlet stores offering discounted merchandise
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
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
9 8 7 6 5 4 3 2 1 0
Nike
Fila
Reebok
New Balance
Adidas
Corporation
Athletic Shoe Market Share, 2000
Athletic Shoe Market Share, 2000