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NIKE

NIKE. A Public Relations Approach. Robert Albright Jessica Joye Suzanne Little. Matt Minchew Jason Waller Megan Wilson. Mission Statement.

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NIKE

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  1. NIKE A Public Relations Approach

  2. Robert Albright Jessica Joye Suzanne Little Matt Minchew Jason Waller Megan Wilson

  3. 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

  4. 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

  5. Principle Products • Began with long distance running shoes in 1963 • Past 17 years: Air Jordan basketball shoes • Wide range of shoes, apparel and equipment

  6. Michael Jordan Tiger Woods Michael Johnson Mia Hamm Celebrity endorsements lend credibility and notoriety to products “Our Heroes” http://www.nikebiz.com/story/hero_1.shtml

  7. Financial Indicator • “A growth company that has not grown” • Impact of specific products (Air Jordan's, teenage market) 3 Month Stock Performance

  8. Brand and Logos • The “Swoosh” only cost $35 • Memorable, simple in form, workable in all sizes, invokes a strong signal

  9. Nike Dominance

  10. Athletic Shoe Market Share, 2000

  11. 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

  12. WEAKNESSES • Poor communication of labor practices • Insufficient line of affordable shoes • Uninformed factory workers

  13. Nike’s Overall Reputation

  14. Nike Compared to Competition

  15. Fairness of Nike’s LaborPractices

  16. Quality of Nike’s Products

  17. 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

  18. THREATS • Increased awareness of human rights • Growing competition • Competitors attracting female consumers • Mounting disapproval of alleged “corporatization” of college athletics

  19. Recommended Action A Closer Look At Labor Practices And Potential Sales

  20. OBJECTIVE 1 • To increase positive public perception of Nike’s labor practices by 20% by April 16, 2003

  21. STRATEGY 1-1 • Increase communication of positive steps Nike is taking concerning labor practices • Key Publics: Media Consumers (esp.university students)

  22. 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

  23. TACTICS • Create focus groups to assess Nike’s labor practices • Distribute a video news release promoting Nike’s efforts in the global community

  24. STRATEGY 1-2 • Make changes to improve Nike’s current labor conditions • Key Publics: Foreign government agencies Nike employees Social activist organizations

  25. 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

  26. Repeat surveys at six month intervals to gauge public perception Revisit with focus groups to record their opinions of improvements EVALUATION

  27. OBJECTIVE 2 • To increase American shoe sales by $100 million by April 16, 2003

  28. STRATEGY 2-1 • Establish a better presence in the affordable shoe market • Key Publics: Media Consumers only willing to spend less than $85

  29. 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

  30. STRATEGY 2-2 • Establish a competitive presence among female consumers • Key Publics: Media Female consumers(potential and real)

  31. 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

  32. Measure growth of domestic shoe sales at six month intervals Separately record sales of mid-priced shoes and women’s shoes EVALUATION

  33. QUESTIONS?

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