NIKE

A Public Relations Approach

Robert Albright Matt Minchew
Jessica Joye Jason Waller
Suzanne Little 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
 johnson

“Our Heroes”
Michael Jordan Celebrity
Tiger Woods endorsements lend
credibility and
header_left_a%5B1%5D

splash-14

Michael Johnson notoriety to

Mia Hamm 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

10
2001 Annual Sales (In Billions)

0
Nike Fila Reebok New Balance Adidas

Corporation
Athletic Shoe Market
Share, 2000
Athletic Shoe Market Share, 2000

Timberland Saucony
Asics
2.9% 1.4%
2.1%
K-Swiss Nike
3.6% 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 Revisit with focus
six month intervals groups to record
to gauge public their opinions of
perception 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 Separately record
of domestic shoe sales of mid-
sales at six month priced shoes and
intervals women’s shoes
QUESTIONS?