NIKE

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NIKE

• A Public Relations Approach

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• Robert Albright
• Jessica Joye
• Suzanne Little

• Matt Minchew
• Jason Waller
• Megan Wilson

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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

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What Nike Does

• Create authentic athletic footwear, apparel,
  equipment and accessories for sports and fitness
  enthusiasts
• Through subsidiaries, design and sell a line of
  mens and womens dress and casual shoes and
  accessories

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Principle Products

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

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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
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Financial Indicator

• A growth company that has not grown
• Impact of specific products (Air Jordan's,
  teenage market)

3 Month Stock Performance
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Brand and Logos

• The Swoosh only cost 35
• Memorable, simple in form, workable in all sizes,
  invokes a strong signal

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Nike Dominance
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Athletic Shoe Market Share, 2000
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STRENGTHS

• Strong and meaningful response to labor
  criticisms
• High quality products and good overall reputation
• Phil Knights management and leadership
• Brand recognition and effective marketing

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WEAKNESSES

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

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Nikes Overall Reputation
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Nike Compared to Competition
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Fairness of Nikes LaborPractices
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Quality of Nikes Products
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OPPORTUNITIES

• Increased sales due to the strengthening economy
• More positive public perception of Nikes social
  responsibility
• Growth through increased presence in low- to
  mid-priced shoe market

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THREATS

• Increased awareness of human rights
• Growing competition
• Competitors attracting female consumers
• Mounting disapproval of alleged corporatization
  of college athletics

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Recommended Action

• A Closer Look At Labor Practices
• And Potential Sales

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OBJECTIVE 1

• To increase positive public perception of Nikes
  labor practices by 20 by April 16, 2003

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STRATEGY 1-1

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

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TACTICS

• Create fact sheets outlining minimum wage
  discrepancies among countries
• Circulate Letters to the Editor highlighting
  positive aspects of Nikes labor practices
• Bring a visible Nike representative to college
  campuses

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TACTICS

• Create focus groups to assess Nikes labor
  practices
• Distribute a video news release promoting Nikes
  efforts in the global community

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STRATEGY 1-2

• Make changes to improve Nikes current labor
  conditions
• Key Publics
• Foreign government agencies
• Nike employees
• Social activist organizations

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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 Nikes educational programs
• Ensure surprise visits are a surprise

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EVALUATION

• Repeat surveys at six month intervals to gauge
  public perception

• Revisit with focus groups to record their
  opinions of improvements

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OBJECTIVE 2

• To increase American shoe sales by 100 million
  by April 16, 2003

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STRATEGY 2-1

• Establish a better presence in the affordable
  shoe market
• Key Publics
• Media
• Consumers only willing to spend less than 85

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TACTICS

• Develop advertising tactics to promote Nikes
  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

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STRATEGY 2-2

• Establish a competitive presence among female
  consumers
• Key Publics
• Media
• Female consumers(potential and real)

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TACTICS

• Create advertisements that showcase Nikes 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
  Jordans
• Actively pursue more female athletes for
  endorsements and advertisements by extending
  competitive contract offers

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EVALUATION

• Measure growth of domestic shoe sales at six
  month intervals

• Separately record sales of mid-priced shoes and
  womens shoes

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QUESTIONS?