A Public Relations Approach

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

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“Our Heroes” Michael Jordan Tiger Woods Michael Johnson Mia Hamm header_left_a%5B1%5D

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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?