NIKEAPublicRelationsApproachRobertAlbrightJessicaJoyeSuzanneLittleMattMinchewJasonWallerMeganWilsonMissionStatementToleadincorporatecitizenshipthroughproactiveprogramsthatreflectcaringfortheworldfamilyofNike,ourteammates,ourconsumers,andthosewhoprovideservicesforNikeWhatNikeDoesCreateauthenticathleticfootwear,apparel,equipmentandaccessoriesforsportsandfitnessenthusiastsThroughsubsidiaries,designandsellalineofmen’sandwomen’sdressandcasualshoesandaccessoriesPrincipleProductsBeganwithlongdistancerunningshoesin1963Past17years:AirJordanbasketballshoesWiderangeofshoes,apparelandequipment“OurHeroes”MichaelJordanTigerWoodsMichaelJohnsonMiaHammCelebrityendorsementslendcredibilityandnotorietytoproducts“Agrowthcompanythathasnotgrown”Impactofspecificproducts(AirJordan's,teenagemarket)3MonthStockPerformanceBrandandLogosThe“Swoosh”onlycost$35Memorable,simpleinform,workableinallsizes,invokesastrongsignalNikeDominanceComparisonofAnnualRevenue012345678910NikeFilaReebokNewBalanceAdidasCorporation2001AnnualSales(InBillions)AthleticShoeMarketShare,2000AthleticShoeMarketShare,2000Adidas15.1%Nike39.2%Asics2.1%Saucony1.4%K-Swiss3.6%Reebok10.9%NewBalance9.4%Timberland2.9%STRENGTHSStrongandmeaningfulresponsetolaborcriticismsHighqualityproductsandgoodoverallreputationPhilKnight’smanagementandleadershipBrandrecognitionandeffectivemarketingWEAKNESSESPoorcommunicationoflaborpracticesInsufficientlineofaffordableshoesUninformedfactoryworkers0.00%5.00%10.00%15.00%20.00%25.00%30.00%35.00%40.00%WellBelowAverageBelowAverageAverageAboveAverageWellAboveAverageNoOpinionNike'sOverallReputationNike’sOverallReputation0.00%5.00%10.00%15.00%20.00%25.00%30.00%35.00%WellBelowAverageBelowAverageAverageAboveAverageWellAboveAverageNoOpinionNikeComparedtoCompetitionNikeComparedtoCompetition0.00%5.00%10.00%15.00%20.00%25.00%30.00%35.00%WellBelowAverageBelowAverageAverageAboveAverageWellAboveAverageNoOpinionFairnessofNike'sLaborPracticesFairnessofNike’sLaborPractices0.00%5.00%10.00%15.00%20.00%25.00%30.00%35.00%40.00%45.00%WellBelowAverageBelowAverageAverageAboveAverageWellAboveAverageNoOpinionQualityofNike'sProductsQualityofNike’sProductsOPPORTUNITIESIncreasedsalesduetothestrengtheningeconomyMorepositivepublicperceptionofNike’ssocialresponsibilityGrowththroughincreasedpresenceinlow-tomid-pricedshoemarketTHREATSIncreasedawarenessofhumanrightsGrowingcompetitionCompetitorsattractingfemaleconsumersMountingdisapprovalofalleged“corporatization”ofcollegeathleticsRecommendedActionACloserLookAtLaborPracticesAndPotentialSalesOBJECTIVE1ToincreasepositivepublicperceptionofNike’slaborpracticesby20%byApril16,2003STRATEGY1-1IncreasecommunicationofpositivestepsNikeistakingconcerninglaborpracticesKeyPublics:MediaConsumers(esp.universitystudents)TACTICSCreatefactsheetsoutliningminimumwagediscrepanciesamongcountriesCirculate“LetterstotheEditor”highlightingpositiveaspectsofNike’slaborpracticesBringavisibleNikerepresentativetocollegecampusesTACTICSCreatefocusgroupstoassessNike’slaborpracticesDistributeavideonewsreleasepromotingNike’seffortsintheglobalcommunitySTRATEGY1-2MakechangestoimproveNike’scurrentlaborconditionsKeyPublics:ForeigngovernmentagenciesNikeemployeesSocialactivistorganizationsTACTICSCreateananonymoussystemtoprotectwhistleblowersSpecifyandinformemployeesoftheirrightsandresponsibilitiesundertheNikecodeofconductProvideemployeeswithtimeandmoneytoenrollinNike’seducationalprogramsEnsuresurprisevisitsareasurpriseEVALUATIONRepeatsurveysatsixmonthintervalstogaugepublicperceptionRevisitwithfocusgroupstorecordtheiropinionsofimprovementsOBJECTIVE2ToincreaseAmericanshoesalesby$100millionbyApril16,2003STRATEGY2-1EstablishabetterpresenceintheaffordableshoemarketKeyPublics:MediaConsumersonlywillingtospendlessthan$85TACTICSDevelopadvertisingtacticstopromoteNike’sPrestolineofshoes($60-$85)Aggressivelytargetbudgetconsumersthroughsalespromotionsanddiscountsonmid-pricedshoesBuildastrongerrelationshipwithmoderatelypricedretailersthroughsalesassociatesIncreasenumberofNikeoutletstoresofferingdiscountedmerchandiseSTRATEGY2-2EstablishacompetitivepresenceamongfemaleconsumersKeyPublics:MediaFemaleconsumers(potentialandreal)TACTICSCreateadvertisementsthatshowcaseNike’sfemaleshoesbyfeaturingprofessionalathletesandnon-celebrityfemaleswhouseNikeproductsDevelopashoenamedforacelebrityfemaleathlete,suchasMiaHamm,comparabletoAirJordan’sActivelypursuemorefemaleathletesforendorsementsandadvertisementsbyextendingcompetitivecontractoffersEVALUATIONMeasuregrowthofdomesticshoesalesatsixmonthintervalsSeparatelyrecordsalesofmid-pricedshoesandwomen’sshoesQUESTIONS?