nike
DESCRIPTION
A magazine article about nike, and there positives and negatives.TRANSCRIPT
Mission StatementTo 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 DoesCreate authentic athletic footwear, apparel, equipment and accessories for sports and fitness enthusiastsThrough subsidiaries, design and sell a line of men’s and women’s dress and casual shoes and accessories
Principle ProductsBegan with long distance running shoes in 1963Past 17 years: Air Jordan basketball shoesWide range of shoes, apparel and equipment
“Our Heroes”Michael JordanTiger WoodsMichael JohnsonMia 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 LogosThe “Swoosh” only cost $35Memorable, simple in form, workable in all sizes, invokes a strong signal
Nike DominanceComparison of Annual Revenue
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1
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Nike Fila Reebok New Balance Adidas
Corporation
2001
Ann
ual S
ales
(In
Bill
ions
)
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%
STRENGTHSStrong and meaningful response to labor criticismsHigh quality products and good overall reputationPhil Knight’s management and leadershipBrand recognition and effective marketing
WEAKNESSESPoor communication of labor practices
Insufficient line of affordable shoes
Uninformed factory workers
0.00%5.00%
10.00%15.00%20.00%25.00%30.00%35.00%40.00%
WellBelow
Average
BelowAverage
Average AboveAverage
WellAbove
Average
NoOpinion
Nike's Overall Reputation
Nike’s Overall Reputation
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
WellBelow
Average
BelowAverage
Average AboveAverage
WellAbove
Average
NoOpinion
Nike Compared to Competition
Nike Compared to Competition
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
WellBelow
Average
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Average AboveAverage
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Average
NoOpinion
Fairness of Nike's Labor Practices
Fairness of Nike’s LaborPractices
0.00%5.00%
10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%
WellBelow
Average
BelowAverage
Average AboveAverage
WellAbove
Average
NoOpinion
Quality of Nike's Products
Quality of Nike’s Products
OPPORTUNITIESIncreased sales due to the strengthening economyMore positive public perception of Nike’s social responsibilityGrowth through increased presence in low- to mid-priced shoe market
THREATSIncreased awareness of human rightsGrowing competitionCompetitors attracting female consumersMounting disapproval of alleged “corporatization” of college athletics
OBJECTIVE 1To increase positive public perception of Nike’s labor practices by 20% by April 16, 2003
STRATEGY 1-1Increase communication of positive steps Nike is taking concerning labor practices
Key Publics: MediaConsumers (esp.university students)
TACTICSCreate fact sheets outlining minimum wage discrepancies among countriesCirculate “Letters to the Editor” highlighting positive aspects of Nike’s labor practicesBring a visible Nike representative to college campuses
TACTICSCreate focus groups to assess Nike’s labor practicesDistribute a video news release promoting Nike’s efforts in the global community
STRATEGY 1-2Make changes to improve Nike’s current labor conditions
Key Publics: Foreign government agenciesNike employeesSocial 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
EVALUATIONRepeat surveys at six month intervals to gauge public perception
Revisit with focus groups to record their opinions of improvements
STRATEGY 2-1Establish a better presence in the affordable shoe market
Key Publics:MediaConsumers only willing to spend
less than $85
TACTICSDevelop 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 2-2Establish a competitive presence among female consumers
Key Publics:MediaFemale consumers(potential and real)
TACTICSCreate 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
EVALUATIONMeasure growth of domestic shoe sales at six month intervals
Separately record sales of mid-priced shoes and women’s shoes