CRM Policies of

Nike
Nike, Inc. (pronounced /naki/) (NYSE: NKE) is a major publicly traded sportswear and
equipment supplier based in the United States. The company is headquartered near
Beaverton, Oregon, which is part of the Portland metropolitan area. It is the world's
leading supplier of athletic shoes and apparel[4] and a major manufacturer of sports
equipment with revenue in excess of US$18.6 billion in its fiscal year 2008 (ending May
31, 2008). As of 2008, it employed more than 30,000 people worldwide. Nike and
Precision Cast parts are the only Fortune 500 companies headquartered in the state of
Oregon, according to The Oregonian.
The company was founded in January 1964 as Blue Ribbon Sports by Bill Bower man and
Philip Knight,[1] and officially became Nike, Inc. in 1978. The company takes its name
from Nike (Greek pronounced [nk]), the Greek goddess of victory. Nike markets
its products under its own brand as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike
Skateboarding and subsidiaries including Cole Haan, Hurley International, Umbro and
Converse. Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and
2008.[5] In addition to manufacturing sportswear and equipment, the company operates
retail stores under the Niketown name. Nike sponsors many high profile athletes and
sports teams around the world, with the highly recognized trademarks of "Just do it" and
the Swoosh logo
Nike is known around the world for its sports equipment and apparel. It is also known for
public relations fumbles on important issues like using child labor. Past problems aside,
the company is now handling a product recall issue like a pro.
Recently, Nike issued a recall of the companys Sumo2 drivers because they are actually
too good. In tests the driver added 1-2 yards of distance, putting the club just out of
acceptable USGA conformance standards. To ensure fair play, Nike is asking customers
who purchased the Sumo2 to fill out a form to have the club replaced at no cost. The
best part is, Nike will ship those customers the new USGA compliant club first, then ask
that the old club be returned in the box used to ship the new club. The only thing worse
than screwing up a product and releasing it to consumers is making said mistake then
forcing consumers to jump through hoops to have the problem, your problem, fixed. By
quickly and responsibly handling this recall, Nike may have actually boosted its image
among those golfers who purchased the club.
I understand this isnt a big issue in the grand scheme of things, but then maybe thats
the point. Consumers demand companies take action when their computer batteries
explode or the local chemical plant spills a substance with skulls and crossbones on the
container. But what if the problem is something small, like a club that gives someone an
unfair advantage? To most, the slight advantage probably wont matter. But to a few of
the more serious golfers, Nike is proving their respect for their customers and the sport
of golf. Instead of shrugging it off, Nike faced this issue head-on and turned a small
glitch into a great opportunity to show its dedication to providing fair, quality equipment.
Public relations practitioners should take a page from Nikes playbook and remember
that correcting a problem, no matter how small, can actually increase customer loyalty

and respect for your brand.

Few companies define 20th century marketing better than Nike (NKE). The athletic
shoemaker's famous swoosh emblem and a string of ad campaigns, starting with its
iconic "Just Do It" series, set the gold standard for getting a clear message to a mass
audience. But when Nike crafted its World Cup strategy, it decided to try something new:
online communities. The centerpiece is Joga.com, a social networking site for soccer fans
it quietly launched in February with Google. (GOOG)Members in 140 countries can blog
create fan communities around their favourite teams or players, such as Brazilian
superstar Ronaldinho, organize pickup games, download videos, and rant against the
encroaching commercialism of the game. And though the program was launched during
the World Cup, it continues beyond the tournament.
It's a huge U-turn for the mighty marketer -- and a recognition that it needs to get
consumers' attention in entirely new ways beyond blasting top-down mass messages.
Nike was forced to be innovative after rival Adidas Group (ADDDY) got a World Cup
exclusive deal to broadcast ads in the U.S. But by monitoring conversations on social
networking sites and blogs, where people already are shaping Nike's brand, the sneaker
giant knew this was an opportunity to try something different. Says Trevor Edwards,
Nike's vice-president for global brand management: "Gone are the days of the one big
ad, the one big shoe, and the hope that when we put it all together it makes a big
impact."
JOGA BONITO
The Joga.com social networking site, one of the biggest by a large consumer company, is
just one piece of a $100 million multilayered campaign known as Joga Bonito
(Portuguese for "play beautiful"). Last fall, Nike started feeding video clips that spotlight
Nike-sponsored soccer players onto popular video sharing sites, including YouTube and
Google. It created JogaTV, a virtual soccer TV station, where it releases a new video clip
every few days and fans can upload their own clips.
Is it working? Nike officials say they reached their World Cup goal of signing up 1 million
members by mid-July, when the tournament ended. "By enrolling consumers in shaping
the marketing, Nike is figuring out what kind of micro content audiences want and
nurturing deeper bonds of loyalty and advocacy," says Pete Blackshaw, chief marketing
officer at Nielsen Buzz Metrics, which tracks online conversations for companies.
Yet like a lot of companies trying to build online communities, Nike doesn't know if this
will filter down to the bottom line. The company says sales of its soccer gear are
booming but admits it's too early to credit that directly to its community bear hug.
What's more, this kind of marketing can be tricky. One of Nike's top soccer videos, for
instance, shows Ronaldinho slipping on a pair of new white Nike soccer cleats and
booting a soccer ball four times off the goal crossbar -- the equivalent of a baseball
hitting off the left field foul pole into foul territory. It has been viewed by 7.5 million
people, making it one of the most popular clips online, but also the most controversial
because it was digitally altered. Nike executives, who won't say whether they did the
editing, are clearly amused by the controversy. But the flap could hurt its credibility.
Still, Nike considers the results promising. Says CEO Mark G. Parker: "A strong
relationship is created when someone joins a Nike community or invites Nike into their
community." Which is the point of brand marketing
The Nike mission: To bring inspiration and innovation to every athlete* in the world.
The asterisk is a quote from Bill Bower man. Who is he? Legendary track & field coach at
the University of Oregon, a teacher who showed athletes the secrets of achievement. Cofounder of Nike. We invite you to experience some of our inspiring products.

Customer service mission: To represent the highest service standard within and beyond
our industry, building loyal consumer relationships around the world.
Advertisements