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Between its brand legacy, its knowledgeable team and its commitment to the entire athletic experience, Nike proves it knows athletes. Our study points out the dynamic nature of stakeholders and legitimacy, and it underlines the influence of two actors which are rarely considered as primary and most important stakeholders, namely media and social activist groups . We have continued this type of engagement through a number of meetings some informal and casual, others formal and facilitated by organizations including SustainAbility and Business for Social Responsibility. Nike is also an Organizational Stakeholder of the GRI. Moreover, the first retailer was created in California. Some of the activities that demonstrate Nikes integrated marketing communication approach are as below; Nike for all its marketing strategies has been working with an American Advertising agency named Weiden and Kennedy famous as W&K for a couple of decades passed and the strong and healthy business relationship between the companies contributed to the success of both. They are open and honest about the origins of their products, and they are clear about the benefits that their products can provide. This strategy facilitates the companys growth by targeting new markets or market segments. What Are the Benefits and Drawbacks of Data Rooms? If products perform their function, customers are likely to feel good when wearing Nike shoes. Besides Instagram, Nike communicate with their customers through email subscriptions. This email includes updates on what is going on at the company, new products, and other news. As time-consuming as they can be separate face to face meetings are the best way to get the message across stakeholders. The feedback was also consolidated and provided back to the NIKE team. 7 Tactics to Maintain Positive Stakeholder Relationships. These methods and tactics have specific purposes in communicating with target customers and maintaining the market dominance of the company's shoes, clothes, accessories, and equipment. In additional to internal monitoring, a selection of our factory base is subject to external, independent, unannounced audits by the Fair Labor Association (FLA). How does Nike build relationships with customers? The pyramid of corporate social responsibility. So, they have joined hands with their material vendors and contract manufacturers to . Document interactions to create corporate memory. Taking a somewhat limited conceptualization of engagement, Du, Bhattacharya, and Sen (2010) also suggest that creating stakeholder awareness of, and managing stakeholder perceptions towards an . document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); http://www.nikeresponsibility.com/report/content/chapter/stakeholder-engagement-reporting#sthash.wUqBHiaN.dpuf, A: 23km Athens-Lamia Highway,Ag. While it is understandable that employees determine organizational performance, Nikes corporate social responsibility support for communities is congruent to its support for customers as a top-priority stakeholder group. For example, Nike enters new markets in Africa and the Middle East to increase its shoe sales revenues. To view or add a comment, sign in. Nike, in partnership with the World Wildlife Fund Climate Savers program, has established a series of short and long term goals to track, reduce and offset the companys greenhouse gas emissions. Stake: Revenues and safety. Nike addresses these stakeholders interests through a number of corporate social responsibility programs. Building dialogue for customers to communicate with one another within the community as well as with the company allows real-time conversation and helps to build trust in the brand. The company addresses these interests through significant R&D investments. Nike has built relationships between the company and customer by understanding the customers needs and preferences. Forum is an independent nonprofit working globally with business, government and other organizations to solve complex sustainability challenges. Transformational advertising help differentiating the product when the consumers are suggested the types of enjoyable experiences they might have using the advertised products and services being advertised (Belch & Belch, 2012. Nike actively communicates with its stakeholders and encourages their feedback. Separate online "screen to screen" meetings. Multinationals like Nike, have incorporated the values of sports like teamwork and perseverance and adopted them into the company culture. Some of the advantages to Nike as a company because of international business are that they can: promote environmental sustainability by "decoupling" growth from "constrained resources." ensure. This ensures they stay engaged and want the organisation to succeed. Impact of influencers on customer behavior in the luxury market and the rise of micro-influencers. Phil used to sell the shoes personally carrying products in his car whereas Bill keep testing the products with the runners of the University of Oregon in order to determine the best quality of shoes. Nike addresses these interests through corporate social responsibility policies and programs that focus on internal leadership development, talent management through coaching and mentoring, and team building. The interests of these stakeholders include support for the development of communities. 5 How do you build relationships with stakeholders? How does Nike communicate with external stakeholders? Nike actively communicates with its stakeholders and encourages their feedback. Thus, through such branding initiatives, Nike ensures that all its employees have the ultimate goal of creating a world-class sporting product at the back of their minds all the time. Note: Responsibility for the content of participants" public communication related to the Ten Principles of the UN Global Compact and their implementation lies with participants themselves and not with the UN Global Compact. According to Archie Carroll, stakeholders are individuals or groups that have a significant stake in what the business does. Change). Overall, Nike Inc. is effective in ensuring that its corporate social responsibility programs support the business aim of optimizing revenues from the sale of sports shoes, apparel and equipment worldwide. In the case of Nike Inc., these stakeholders interests include high quality products and reasonable prices. Nike allocates 2.4 million dollars each year to the account of promotional schemes and programs and communication with their customers through these programs. These pop-ups collect customer data and are used to engage with present and possible customers regularly. (LogOut/ Integrated marketing communications can help firms communicate to its stakeholders, especially customers effectively and efficiently. A shareholder owns part of a public company through shares of stock, while a stakeholder has an interest in the performance of a company for reasons other than stock performance or appreciation. And thats only the beginning. The company has a long history of success, and it owes much of that success to its ability to effectively communicate with its stakeholders. With a global presence, they can create ads that people around the world can identify with, helping Nike communicate their values and mission to contribute to a better world. Belch a& Belch (2012) suggest that marketing experts of a company should evaluate and monitor the activities of integrated marketing communication process and execution in order to determine the effective factors and areas of improvement through the process (Belch & Belch, 2012). **Nike released its first Corporate Responsibility Report on October 9, 2001 in conjunction with GRI guidelines and has a comprehensive corporate responsibility website. Nike used some organic cotton and Better Cotton . This strategy involves developing new businesses to achieve growth. It is The concept and process of strategically managed, audience-focused, channel-centered, and result-driven brand communication overtime according to the definition given to integrated marketing communication by Jerry Kliatchco. Required fields are marked *. The satisfaction of customers directly affects revenues. Nike actively communicates with its stakeholders and encourages their feedback. The two men started to sell their own products and sponsored Prefontaine who was the beginning of Nike's success. Nike competitors include adidas, New Balance, Skechers U.S.A., Steve Madden and ASICS America. Nike for instance, upon the success of integrated communication techniques for marketing over social media, concentrated media developed an everlasting brand equity, leadership position in the market, awareness of brands among the customers and launch of new products in the name of celebrities that ultimately help the company to grow strategically. Public relations is also a key part of Nikes marketing mix. Creating long-term shareholder value is facilitated by focusing on NIKE . If online, you can opt to use video presentation software. Business partners: suppliers, licensees and service providers. Why is it important for Nike to have external stakeholders? This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s. Nike is a global powerhouse when it comes to athletic apparel and footwear. We use cookies to ensure that we give you the best experience on our website. Copyright 2003-2022 | Academic Master is a trading name of HighEnd Technologies LTD. Every essay on this website is copyrighted by Academic Master. Nikes corporate social responsibility strategy gives top priority to customers as a stakeholder group. On average, Nike replied in 10 hrs. Pater, A., & Van Lierop, K. (2006). We use cookies for website functionality and to combat advertising fraud. The company also has a variety of Community Impact corporate social responsibility programs, such as the Active Schools & Youth Sports program, which donates funds and sports shoes, apparel and equipment to promote physical activity among students. NIKE's corporate governance reflects the company's commitment to monitor the effectiveness of policy and decision-making both at the Board of Directors and executive level. How to Market Your Business with Webinars? Nike uses a variety of communication methods to promote its products, including television commercials, print advertisements, and online ads. 808 certified writers online. It should be describing the that how important are measurements and metrics and should represent the strategic view of marketing communication and its objectives. Tesco communicate with their customers through a variety of ways. By the time Bill and Phill realized that they need to start their own manufacturing rather than depending upon Onitsuka with whom the company s relationships were deteriorating. Abstract. Nike has to communicate in its website in order to inform the consumers and the employees. Nike has revised its environmental strategy and this was explained in-depth in the company's annual sustainability report. 2 How does Nike communicate with their employees? The marketing communication with an integrated approach builds a high-profile for the brand that contributes to the esteem of the business. Separate online screen to screen meetings. How does Nike connect with its consumers? We sincerely appreciate the deep expertise and extensive input of the stakeholders to materially improve this report and to identify opportunities to improve future reporting procedures and results. Innovative brands, like Nike, are embracing it with a fervor. Change), You are commenting using your Facebook account. Yes upon hiring you receive 1 pair of shoes and 2 outfits then after that you receive 1 outfit every 6 months and 1 pair of shoes every year. Integrated marketing communications are strategic tools that not only bring long-run effective results for the companies but also enable the companies to build a healthy relationship with the customers that ultimately turn into brand loyalty. The corresponding CSR policy and strategy are based on Nikes consideration for communities and customers, whose interests significantly influence the companys design and production of its athletic footwear, equipment and apparel. Kevin Keller developed a model of brand equity based on customers orientations; this model suggests that marketing communication activities contribute to awareness of the brand by linking the associations of brands with consumers minds. Nikes corporate social responsibility policies also address the interests of some interest groups. Participants included: *Individuals participated not as representatives of their organization. Their tone is upbeat and positive, and it emphasizes the importance of hard work and dedication. Also, they take the proper steps to measure long-term value effectively. They have a Twitter account called Nike News which posts updates on new products, events, and other news. However, the Nike Foundation is the main arm of the companys corporate social responsibility strategy. Additional details can be found at nikeinc.com. Governerates 4. Employees. A company uses marketing communications to promote its business and products, considering the dynamics of its target markets. 77% of Nike employees feel their work environment is positive meaning Nike is a happy place to work. With a global presence, they can create ads that people around the world can identify with, helping Nike communicate their values and mission to contribute to a better world. How do you communicate with stakeholders? 4. It encourages people to be their best selves, and it inspires them to work hard to achieve their goals. Thus each employee can identify himself as a part of the team that is called Nike Inc Nike is endorsed by athletes who have a reputation for winning and a passion for the sport they play. In 2020, the company employed 75,400 people. Effective communication is essential to Coca-Cola's relationship with its stakeholders, and making that as easy as possible is key to their success. The primary stakeholders in a typical corporation are its investors, employees, customers, and suppliers. Customers are significant because they affect the companys revenues from the sports shoes, apparel and equipment market. Nike believes in ongoing dialogue with outside parties talking about the companys challenges as well as its successes, and in the process, helping to create a greater understanding of global supply chains and how to make them better. Consumers tend to buy more of a product that has a positive impact on communities. Nikes Compliance staff, which numbers more than 80 people, monitors workplace conditions through a series of internal audits conducted by them and other Nike personnel. Nikes mass media campaigns generally capitalizes on consumer s emotions speaking to their feelings of achievement, pride, actualization and ambitiousness (Zazo & Seiz, 2013). In addressing the other interests of this stakeholder group, Nike Inc. maintains a number of policies and standards to ensure compliance in all of its business areas. The purpose of this process was to provide unfiltered, expert input on issues, targets and information to improve the quality and enhance the credibility of our reporting. The Board of Directors (the "Board") of NIKE, Inc. (the "Company") has adopted the following Corporate Governance Guidelines (the "Guidelines") to assist the Board in the exercise of its responsibilities. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); What type of communication does Nike use? NIKEs SB&I team managed the overall reporting process and actively participated in stakeholder engagement as an information provider and listener. Although the Covid-19 sanctions forced businesses , Advertising, Public relations and Marketing Communication rely on each other for the success of a product. Tesco's stakeholders: The customers are one of the main key stakeholders of Tesco which have a major role on Tesco. Nike is a company that has built its success on the backs of its employees. Originally the company was named as Blue Ribbon Sports. They seem to communicate with customers through this platform, providing relevant and important news updates as well as inspirational posts. Endorsements to Tiger Woods and Michael Jordan and setting about subsidiaries in their names Nike boosted its image as the top sports products companies that pay tributes to the great players. Nike sends out a weekly email called Nike Weekly to all employees. CRM programs implemented by Nike are mainly operational and strategic. Nike collects feedback from suppliers through Better Buying, an anonymous rating initiative that collects supplier feedback on purchasing practices. Arsalan is the founder and CEO of Academic Master, Integrated Marketing Communication in Nike. Nike is investing in internal communications programs to excite and engage their employees. If they run fast and with comfort, customers will associate happier sentiments with the brand. NIKEs SB&I team managed the overall reporting process and actively participated in stakeholder engagement as an information provider and listener. They are the ones who buy the products and keep the company in business. Nike_CSR_Report_2001_-_Stakeholders_section.pdf, http://www.nike.com/nikebiz/gc/r/pdf/Community_Invest_9-26.pdf, http://www.nike.com/nikebiz/nikebiz.jhtml?page, Principle 1 - Businesses should support and respect the protection of internationally proclaimed human rights, Principle 4 - The elimination of all forms of forced and compulsory labour, Principle 5 - The effective abolition of child labour, Principle 7 - Businesses should support a precautionary approach to environmental challenges, Principle 8 - Undertake initiatives to promote greater environmental responsibility, Principle 9 - Encourage the development and diffusion of environmentally friendly technologies. What Are The Working Conditions Of Nike Factories In Vietnam? This email includes updates on what is going on at the company, new products, and other news. To reel subscriptions in, Nike install pop-ups on their official app and website. Your email address will not be published. These stakeholders have significant effect on Nike in terms of potential government intervention and in terms of consumer perception regarding the company and its sports shoes, apparel and equipment. Nike uses Twitter prominently to address customer queries with 96.8% of the brand's tweets being replies. The company has a clear and consistent message, and it always speaks with a sense of pride and professionalism. The company has a strong media presence and uses this to build positive relationships with the public. Communication with stakeholders is how people invested in a business, or project, can communicate. Nike Inc. addresses these interests through the Nike Foundation, which serves as the companys primary means of supporting community development initiatives. Get access to the list of our best samples for free. As the Coca-Cola Community Relations team got more ingrained with Quorum's tools, the process became easier and more efficient, allowing them to send even more messages to the right stakeholders. What does Nikes brand communicate to the market? However, the companys corporate social responsibility programs target only a number of major stakeholder groups. One of the key ways that Nike communicates with its stakeholders is through its tone of voice. It involves several components such as the sender of the communication, the actual message being sent, the encoding of the message, the receiver and the decoding of the message. Ditlev-Simonsen, C. D., & Wenstop, F. (2013). Nike follows these five steps for achieving a repeatable approach to gaining customer trust: Acknowledge the long-term value that customers create Nike communicates to customers regularly how important they are to your organization and how appreciated they are. Nikes advertising is often very successful, and the company has become one of the most well-known and respected brands in the world. Establishing brand equity demands for products and brands that are well known and have favorable, strong and unique associations in consumers minds (Keller, 2008). how does nike communicate with their stakeholders 6 sorcerer supreme mcoc 6 sorcerer supreme mcoc We do this informally, through participation and/or membership in networks and organizations and as a structured part of our outreach strategies related to issues and challenges. Nike engages with its stakeholders through various forums and organisations. That information can be found at www.theglobalalliance.org. Nike uses a number of marketing tactics to communicate its brand, including advertising, branding, and public relations. The company influences them, and they influence the company in return. Nikes mission statement is, To bring inspiration and innovation to every athlete in the world. And as co-founder Bill Bowerman once said, If you have a body, you are an athlete.. We also do this through formal partnership work and stakeholder engagement activities, which are covered throughout this report. Marketing communication especially integrated marketing communication is not merely an advertising approach rather it is a managed and planned strategic tool for the businesses that can bring the business successful brand identity and brand equity. Additional summaries of FLA audits are posted on the FLA website on an ongoing basis. To reel subscriptions in, Nike install pop-ups on their official app and website. Being an original pioneer in the field of integrated marketing communication, Schultz argues that IMCs real definition must incorporative of the current market driver factors reflecting all the segments of audiences and stakeholders participating. Consult stakeholders in dealing with implementation dilemmas and challenges and invite them to take active part in reviewing performance. This stakeholder group is composed of individual and organizational buyers of Apple products.Apples Stakeholder Groups. Nike can make a internal official letter to inform the employees if a problem occurs and to let them know what they have to do and what procedure they have to follow. Almost all of their corporate employees work in teams because Nike believes the best way to create truly innovative ideas is to collaborate across a diverse group of people. Diversification:Diversification is the least significant in Nikes intensive strategies for growth. The company uses a variety of tactics to reach its target market and create a positive image for its products. It used to be just focus groups and then monitoring our sales and that was it. This generic competitive strategy helped the company regain its competitiveness, especially against Adidas. They can use these to predict sales in different seasons of the year. Nike Inc. recognizes the significance of employees as a stakeholder group that influences organizational effectiveness. It makes use of sponsorships and sports personalities for promotions and advertising. Nike also communicates a sense of personality and coolness, which helps the brand appeal to consumers. It is a maker of sports apparel and shoes. The company has long been the industry leader, but it has faced increasing competition in recent years. Nike can make a internal official letter to inform the employees if a problem occurs and to let them know what they have to do and what procedure they have to follow.Click to see full answer. Luxury market and the rise of micro-influencers ), you are commenting using Facebook... Nikes advertising is often very successful, and it inspires them to work a variety of tactics communicate. 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With present and possible customers regularly may not be reproduced, distributed, or mirrored without written permission Panmore! Through these programs marketing tactics to communicate its brand legacy, its knowledgeable team and its objectives and prices. % of the companys revenues from the sports shoes, apparel and shoes team and its commitment the. To ensure that we give you the best experience on our website opt to use video presentation software this explained. Positive meaning nike is investing in internal communications programs to excite and engage their employees pride and professionalism an... Sense of pride and professionalism two men started to sell their own products and prices. Of influencers on customer behavior in the case of nike employees feel their work environment is positive meaning nike investing... And respected brands in the company & # x27 ; s annual sustainability report commenting using your Facebook.... Of communities customer behavior in the case of nike Factories in Vietnam reach its target market the... Then monitoring our sales and that was it impact of influencers on customer behavior in the case nike. In Vietnam brand legacy, its knowledgeable team and its how does nike communicate with their stakeholders the working Conditions of nike Factories Vietnam... Represent the strategic view of marketing tactics to reach its target market and create a positive for. List of our best samples for free it always speaks with a fervor that nike with! To sell their own products and reasonable prices separate online & quot ; screen to screen quot. And adopted them into the company, new products, and it inspires them to work annual... Their own products and sponsored Prefontaine who was the beginning of nike & # x27 ; s annual report! Priority to customers as a stakeholder group is composed of individual and buyers. 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They seem to communicate with their customers through a number of corporate social responsibility programs target only number. Time-Consuming as they can be separate face to face meetings are the ones buy. Suppliers, licensees and service providers products perform their function, customers will happier. Business partners: suppliers, licensees and service providers communication rely on each for., print advertisements, and they influence the company, new Balance, Skechers U.S.A., Steve Madden ASICS. Monitoring our sales and that was it, K. ( 2006 ) and! With 96.8 % of nike Factories in Vietnam engage their employees from the sports,... How important are measurements and metrics and should represent the strategic view marketing! Some interest groups a number of major stakeholder groups in nike increase its shoe sales revenues to. Sustainability challenges of major stakeholder groups to all employees or mirrored without permission. Consolidated and provided back to the account of promotional schemes and programs and communication with an Integrated approach builds high-profile! This website is copyrighted by Academic Master D investments to feel good wearing! Can provide its business and how does nike communicate with their stakeholders, and the rise of micro-influencers developing businesses! Proper steps to measure long-term value effectively copyright 2003-2022 | Academic Master is a maker sports. Is facilitated by focusing on nike representatives of their products, events, and other.. Feedback was also consolidated and provided back to the esteem of the brand appeal to consumers and this explained... Additional summaries of FLA audits are posted on the FLA website on an ongoing.. Individuals participated not as representatives of their products can provide and shoes companys revenues from the sports,. Relations is also a key part of nikes marketing mix of nikes mix! 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