In this capacity, Forum jointly selected stakeholders with NIKE, coordinated the overall process, led stakeholder discussions and virtual feedback sessions, and consolidated feedback for us. The mix of promotions across the available media channels, interactive internet media and celebrity endorsements and sponsorships keep the customers engaged and loyal with the brand putting efforts to get closer to them. The communication process refers to a series of actions or steps taken in order to successfully communicate. The company has a presence in nearly every country on the planet, and its products are revered in many corners of the world. Identifying and Analyzing Stakeholders and . How to Market Your Business with Webinars? 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. One of Nikes primary stakeholders is its employees. The role of strategic conversations with stakeholders in the formation of corporate social responsibility strategy. Nike actively communicates with its stakeholders and encourages their feedback. Nike has the following stakeholders, arranged according to the firm's prioritization: Stakeholders Stakeholders 1. Depending on events going on you may receive additional tops. Twitter appears to be the core platform in which Nike used to communicate important information to customers and the public. Who are stakeholders for Apple? In 2020, the company employed 75,400 people. 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. Your email address will not be published. March 25, 2016. May 02, 2019. This ensures they stay engaged and want the organisation to succeed. This understanding is utilized to design products which form an integral part of Mike`s value proposition. 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. Thanks to its effective advertising, Nike is able to generate billions of dollars in revenue each year. For example, the company integrates cutting-edge designs for its shoes. 6 ways to effectively communicate with stakeholders Schedule a meeting. Another popular way of communicating with stakeholders is via a presentation. The highlight of the social media communication strategy of Nike is that it has around fifty microsites maintained separately and tailored to meet the requirements of integrated marketing communication strategies (Anderson, 1999). W&K worked influentially for Nike by developing strong electronic and print media campaigns focusing sports men and women equally that appealed the customers on an emotional point (Anderson, 1999). "we're working to engage a conversation on environmental and social issues, one that resonates with conscious consumers, and also with important stakeholder groups like nongovernmental. Published by at May 21, 2022. 808 certified writers online. #4 Suppliers and Vendors. At Nike, we build long-term relationships with our contract manufacturing suppliers (suppliers) because we know having trust and mutual respect supports our ability to create product more responsibly, accelerate innovation and better serve athletes*. Nike is a publicly traded company, meaning that it is beholden to its shareholders and must answer to them in order to continue to operate. **Nike released its first Corporate Responsibility Report on October 9, 2001 in conjunction with GRI guidelines and has a comprehensive corporate responsibility website. How stakeholders view stakeholders as CSR motivators. External stakeholders include clients or customers, investors and shareholders, suppliers, government agencies and the wider community. Write my paper. One of the key ways that Nike communicates with its stakeholders is through its tone of voice. 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. Our stakeholders are those people or organizations who affect or are affected by our operations, including the following: adidas employees. Its tweets are short, punchy, compelling, and nearly always include the hashtag #justdoit or other community-building hashtags like #nikewomen. Ultimately, Nikes success can be attributed to its ability to effectively communicate with its stakeholders. Additionally, Nikes marketing campaigns often feature well-known athletes and celebrities, which helps to further strengthen the brands image. They seem to communicate with customers through this platform, providing relevant and important news updates as well as inspirational posts. Interest Groups 5. The interests of these stakeholders include support for the development of communities. Gain your stakeholders trust right from the start. 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. Employees. 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. The aim of integrated marketing communication is to reach the maximum audience in most effective and efficient way targeting the different segments of market according to their needs and demands. The NIKE team addressed feedback in one of the following three ways: Engaging stakeholders in the reporting process was valuable it provided NIKEs leadership with direct insight and perspective from external experts. We see stakeholder engagement as a key enabler of both risk mitigation and innovation. (2011). Market Penetration:A strategic objective linked to market penetration is to increase Nikes market presence by increasing the number of authorized retailers. Does Nike Have A Good Relationship With Stakeholders? To view or add a comment, sign in. For CCPA and GDPR compliance, we do not use personally identifiable information to serve ads in California, the EU, and the EEA. In the context of multinational companies, it is important that the communication strategy of different markets should be tweaked according to local tastes and customs keeping the value proposition same throughout the world. Organizational Structure Characteristics (Analysis), Nike's Mission Statement & Vision Statement (An Analysis), Home Depots Stakeholders: A CSR Analysis, Microsofts Corporate Social Responsibility Strategy & Stakeholders (An Analysis), Unilevers Corporate Social Responsibility & Stakeholders, Intels Corporate Social Responsibility Strategy & Stakeholders, General Electric Companys (GE) Corporate Social Responsibility (CSR) Strategy and Stakeholders - Analysis, United Nations Foundation Nike Foundation, Stakeholder Analysis & Corporate Social Responsibility (CSR). The report finds the current business communication strategies provided by the company successful. Integrated Marketing Communication. Content marketing videos are used by internal communications as a strategic step toward building an aware, informed and motivated workforce and in a timely way. Academic Master is a writing company that provides free essays to the students all over the World. #5 Communities. Nike collects feedback from suppliers through Better Buying, an anonymous rating initiative that collects supplier feedback on purchasing practices. Tactics are the specific details of the strategies and actions are the specific details of tactics (Kourdi 2009 45-60). For example, Nike Fuel enables customers to record their progress through the use of Nike Plus devices. Integrated marketing Communication and Brand Strategy. Viral marketing is an effective way of interacting with customers. This study aims to examine the uniqueness of the corporate communication carried out by Nike when the well-known brand competes to sign a contract with athletes who reach their peak . 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 uses a variety of methods to communicate with its employees. This approach has helped Nike build a strong and loyal following, and it is likely to continue to be a key factor in the companys success in the future. Nike is at forefront in using the both conventional mass mediated communication through advertising and promotional programs and social media campaigns to develop powerful and meaningful integrated marketing communication activities. how does nike communicate with their stakeholders How does Nike communicate with their customers? The brands shoes are a fixture at runway shows, and sell out in stores. Integrated marketing communications can help firms communicate to its stakeholders, especially customers effectively and efficiently. The name of the new member was Jeff Johnson, who opened the first retail store of the company products and devised the marketing campaign by creating marketing materials such as brochures and advertisement stuff for Blue Ribbon Sports. The next plans will be more refined and more effective in reaching the objectives. (2006). How does Nike communicate with their employees? The objectives of implementation of integrated marketing communication techniques are to ultimately increase the profit- margin of the business by reaching the maximum customers effectively. On the other hand, Nike also exports to Japan, Malaysia, Singapore, and UK. Nike is well known for its innovative and regular technique of communication to stay connected with its stakeholders and research based knowledge of its customers needs and demands expected from their products and that who their customers really are. 5 How do you build relationships with stakeholders? Nike used internet marketing, email managementtechnologies, and using broadcastandnarrowcast communication technologies to create multimedia marketing campaigns. Employees are the last key stakeholder group for Nike. If products perform their function, customers are likely to feel good when wearing Nike shoes. How does Nike communicate with competitors? How often will you communicate with stakeholders? Additionally, Nike makes use of sales promotion strategies like discount codes to entice potential customers to buy their products. How does Nike communicate with their competitors? Nike's main focus are the athletes and not just the athletes but everyone connected with sports. **Nike invited students selected by an independent university task force to participate in contract factory monitoring and then posted their unedited reports on the companys website. For instance, Nikes video featuring Ronaldinho received twenty million likes in 2006 (Wasserman, 2006). The strategy should communicate to the customers and the internal employees the mission of the organization and the values it stands for. Consult stakeholders in dealing with implementation dilemmas and challenges and invite them to take active part in reviewing performance. Use data management systems to summarise key information. Diversification:Diversification is the least significant in Nikes intensive strategies for growth. Also, they take the proper steps to measure long-term value effectively. Nike Inc. uses its promotional mix or marketing communications mix to communicate with target customers in the global athletic footwear, apparel, and equipment industry. Stakeholders - a group of people or organization that has interest or concern in an organization. Nike has to communicate in its website in order to inform the consumers and the employees. Additional details can be found at nikeinc.com. Vertical integrated communication is a strategy that implies ensuring that the development of new products is in accordance with the companys corporate policies and structure as well. This article may not be reproduced, distributed, or mirrored without written permission from Panmore Institute and its author/s. The interests of these stakeholders include fair compensation, career development opportunities, and a sense of purpose. Investors are another important stakeholder group for Nike. The customers is the stakeholder most important, the customer can help the company . Are The Nike Air Max 97 Good For Running? See more at: http://www.nikeresponsibility.com/report/content/chapter/stakeholder-engagement-reporting#sthash.wUqBHiaN.dpuf. Nike is a company that has built its success on the backs of its employees. To ensure all external stakeholders are accounted for, it was important to break them into categories based on their level of interest and influence they have. Nikes corporate social responsibility policies also address the interests of some interest groups. This strategy involves developing new businesses to achieve growth. Communication with stakeholders is how people invested in a business, or project, can communicate. These considerations indicate that Nike Inc. satisfies the concerns of interest groups as stakeholders. How do you communicate with stakeholders? Why is it important for Nike to have external stakeholders? NIKE first held a formal multi-stakeholder forum for feedback on reporting in February 2004. Nikes commitment to the Global Compact is mentioned throughout its website, in select backgrounders and in its 2001 Corporate Responsibility Report. Public , Your email address will not be published. McDonald's communication channels are testament to the theory that the strongest communications are always two-way and always maximise the chances for employees to respond. (LogOut/ Customers are significant because they affect the companys revenues from the sports shoes, apparel and equipment market. Nike has to communicate in its website in order to inform the consumers and the employees. The pyramid of corporate social responsibility. - Sample V/ Nike's Stakeholder analysis Sense and sensitivity: the roles of organisation and stakeholders in managing corporate social responsibility. Nike collaborated with Better Buying to invite our suppliers to participate and we use the information to help inform system and process improvements. The company has a long history of success, and it owes much of that success to its ability to effectively communicate with its stakeholders. See our Privacy Policy page to find out more about cookies or to switch them off. Stakeholders are important and can affect the running of the business. Stakeholder relations is the practice of forging mutually beneficial connections with third-party groups and individuals that have a stake in common interest. It tells customers what they want and then makes that value readily available. Early in our corporate responsibility journey, we learned the importance of engaging with and listening to multiple stakeholders. A stakeholder is a person or group that has an investment, share, or interest in something, as a business or industry. As of 2020, Nike operates in over 190 countries worldwide. Nike sends out a weekly email called Nike Weekly to all employees. Innovative brands, like Nike, are embracing it with a fervor. Nike has revised its environmental strategy and this was explained in-depth in the company's annual sustainability report. Nike has a very good reputation for treating its employees well and providing them with good working conditions. Save my name, email, and website in this browser for the next time I comment. Advertising is the process of communicating with potential and current customers to promote a product or service. Customers want the business to produce quality products at reasonable price. How does Nike communicate with their owners?Nike communicates its progress to its stakeholders, through its website nikeresponsibility.com backgrounders, quarterly electronic newsletters, the 2001 Corporate Responsibility Report and Community Investment Report 2002-2003. For Nikes business reputation, it was important to be vigilant with communication to external stakeholders to ensure all external contractors and other stakeholders are satisfied. The interests of these stakeholders include support for the development of communities. For example, in 2017 Nike announced a $5 million investment in initiatives to promote girls and womens sport. Governments. It would benefit the local economy and resolve conflict with employees , customers and suppliers. Fill in your details below or click an icon to log in: You are commenting using your WordPress.com account. Rather, these stakeholders have a vested interest in the outcome. Between its brand legacy, its knowledgeable team and its commitment to the entire athletic experience, Nike proves it knows athletes. The company has long been the industry leader, but it has faced increasing competition in recent years. Horizontal integrated communication for marketing involves an open and efficient communication among the teams assigned for the development of products, its distribution and the finance team. Nike implemented this intensive strategy in its early years, such as when it introduced apparel and sports equipment to its product mix. Jeff as a marketing technique decided to rename the brand with now famous Nike. Nike focuses on things such as leadership, teamwork, awareness of competitors, and places for advancement. Integrated marketing communication will be changing and evolving ever as it does though it is not lasting forever (Schultz, 2004). **Nike participated in the public release of Global Alliance data drawn from worker interviews in contract factories in Indonesia (2001 and 2003), despite the critical nature of some of that information. Over 3,900 employees from various Nike stores have participated in teaching children to be active and healthy. In the late 1990s, Nike reduced costs and the selling prices of its athletic shoes and other products. Thus, the firms corporate social responsibility strategy satisfies the interests of governments as stakeholders. Their tone is upbeat and positive, and it emphasizes the importance of hard work and dedication. This branding helps to differentiate Nike from its competitors and encourages people to buy its products. A company uses marketing communications to promote its business and products, considering the dynamics of its target markets. The techniques of integrated communication enabled Nike brand to reach the widespread of marketplace and engage its existing customers through multiple touch points such as concentrated media, social media and sponsorship programs. The project illustrates communication process in Adidas, which is used to group and give out information and managerial data. It is important for Nike to be able to communicate with its employees effectively in order to ensure that they are all on the same page and working towards the same goal. Nike engages with its stakeholders through various forums and organisations. 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. However, sometimes Nike will use a more playful tone in order to engage employees and get them excited about upcoming events or products. The marketing team of Nike constantly looks for the touch points by which they can engage the customers communicate with them directly. In 2004, Nike signed on as an Organizational Stakeholder of the GRI demonstrating its support for the GRI as a framework for common reporting standards. External Stakeholders In Nike. Marketing communication strategy is a comprehensive plan that contains the specific elements that intend to address a company's intended marketing communication mix and how they will be used to achieve the set goals. 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. To reel subscriptions in, Nike install pop-ups on their official app and website. Nike Inc. addresses these interests through the Nike Foundation, which serves as the companys primary means of supporting community development initiatives. Nike supports the Global Reporting Initiative (GRI) as an Organizational Stakeholder, and the real advances that have been made in the corporate responsibility arena in developing common reporting and assurance frameworks and systems to measure a companys corporate responsibility progress. 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. This type of advertising is designed to resonate with consumers and create a positive association with the Nike brand. We also do this through formal partnership work and stakeholder engagement activities, which are covered throughout this report. The companys brand communicates a number of things to the market, including a focus on performance and quality, as well as a commitment to innovation. Compensation is an important aspect of employee happiness and at Nike, 69% of employees feel they are paid fairly, 78% are satisfied with their benefits, and 72% are satisfied with their stock/equity. In addition to the Global Compact, Nike serves as a board member of Business for Social Responsibility, the Fair Labor Association and the Global Alliance for Workers and Communities. However, the Nike Foundation is the main arm of the companys corporate social responsibility strategy. Nike has developed a strong brand identity that is associated with quality, performance, and innovation. Nike sells its products through three main sources: retail stores, Nike's online store, and company-owned retail outlets. This stakeholder group is composed of individual and organizational buyers of Apple products.Apples Stakeholder Groups. Nike allocates 2.4 million dollars each year to the account of promotional schemes and programs and communication with their customers through these programs. 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