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?