Transcript NIKE
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 Dominance Comparison of Annual Revenue 2001 Annual Sales (In Billions) 10 9 8 7 6 5 4 3 2 1 0 Nike Fila Reebok Corporation New Balance Adidas Athletic Shoe Market Share, 2000 Athletic Shoe Market Share, 2000 Timberland 2.9% Asics 2.1% K-Swiss 3.6% Saucony 1.4% Nike 39.2% New Balance 9.4% 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 WEAKNESSES Poor communication of labor practices Insufficient line of affordable shoes Uninformed factory workers Nike’s Overall Reputation Nike's Overall Reputation 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 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 Fairness of Nike’s Labor Practices Fairness of Nike's Labor Practices 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 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 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 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 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: Media Consumers 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 shoes Build a stronger relationship with moderately priced retailers through sales associates Increase 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 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 EVALUATION Measure growth of domestic shoe sales at six month intervals Separately record sales of midpriced shoes and women’s shoes QUESTIONS?