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 mens and womens 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

Our Heroes
Michael Jordan Tiger Woods Michael Johnson Mia 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 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)

9 8 7 6 5 4 3 2 1 0

Nike

Fila

Reebok

New Balance

Adidas

Corporation

Athletic Shoe Market Share, 2000

Athletic Shoe Market Share, 2000
Timberland 2.9% K-Swiss 3.6% New Balance 9.4% Saucony 1.4% Nike 39.2% Asics 2.1%

Reebok 10.9% Adidas 15.1%

STRENGTHS
Strong and meaningful response to labor criticisms High quality products and good overall reputation Phil Knights management and leadership Brand recognition and effective marketing

WEAKNESSES
Poor communication of labor practices
Insufficient line of affordable shoes Uninformed factory workers

Nikes 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 Nikes 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 Nikes 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 Nikes 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 Nikes 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 Nikes labor practices Bring a visible Nike representative to college campuses

TACTICS
Create focus groups to assess Nikes labor practices Distribute a video news release promoting Nikes efforts in the global community

STRATEGY 1-2
Make changes to improve Nikes 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 Nikes 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 Nikes 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 Nikes 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 Jordans 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 womens shoes

QUESTIONS?