A stakeholder is a person or group that has an investment, share, or interest in something, as a business or industry. This strategy facilitates the companys growth by targeting new markets or market segments. A company uses marketing communications to promote its business and products, considering the dynamics of its target markets. These pop-ups collect customer data and are used to engage with present and possible customers regularly. Nike uses Twitter prominently to address customer queries with 96.8% of the brand's tweets being replies. We analyze the Nike case in order to study how stakeholders' pressure shapes a firm's engagement in CSR issues. Integrated marketing communications together with strategies of brand identity play critical role in the development of an overall brand equity for the company (madhavaram et al., 2005). In 2020, the company employed 75,400 people. The company started its operations in 1964, founded by Phil Knight a medium distance runner, and Bill Bowerman a track and field coach. Twitter appears to be the core platform in which Nike used to communicate important information to customers and the public. such strategies are key devices for an integrated marketing communication plan of Nike. Peloza, J., & Shang, J. 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. Nike has admitted it cannot guarantee that its products will not be made using child labour in a report designed to address the accusations that have plagued the company. Currently, Nike is redefining its process for data collection and is developing the tools to help guide both internal and external reporting, including data validation and assurance systems. 808 certified writers online. Establishing brand equity demands for products and brands that are well known and have favorable, strong and unique associations in consumers minds (Keller, 2008). Nike collaborated with Better Buying to invite our suppliers to participate and we use the information to help inform system and process improvements. 1971 the name changed the name for 'NIKE', the logo and their design. Based on Nike's current use of social media, Nike is relatively active on Twitter. How do Nike communicate with their employees? Authorizers: governments, trade associations, shareholders and the Executive Board. 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. In the case of Nike Inc., these stakeholders interests include high quality products and reasonable prices. These considerations indicate that Nike Inc. satisfies the concerns of interest groups as stakeholders. For example, in 2005, the Nike Foundation started its community development programs in developing countries, with focus on supporting the empowerment of girls. It tells customers what they want and then makes that value readily available. Like the majority of large corporations, Nike has learned the benefits of an expansive social media presence. This stakeholder group is composed of individual and organizational buyers of Apple products.Apples Stakeholder Groups. Nike also uses their tone of voice to build trust with their customers. Consult stakeholders in dealing with implementation dilemmas and challenges and invite them to take active part in reviewing performance. 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. Capturing an international audience with their ads and campaigns, Nike can better communicate their messages that go beyond the sports world. 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. Nike is also an Organizational Stakeholder of the GRI. Published by at May 21, 2022. How does Nike build relationships with customers? Stakeholders are important and can affect the running of the business. The key is Nike's ability to cultivate customer trust. Certified Akashic Record Reader & Life Coach. Advertising is a multi-billion dollars business around the globe as media groups pay top dollar for ad space in hopes of gaining traction. The interests of these stakeholders include support for the development of communities. **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. 5 How do you build relationships with stakeholders? The two visionaries started working with the Japanese athlete shoemaker Onitsuka, they had an agreement to improve the quality of athlete footwear. 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. 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. Corporate website of the company is ranked among the top five sports companies visited by the customers. For example, Nike enters new markets in Africa and the Middle East to increase its shoe sales revenues. Change), You are commenting using your Twitter account. It is in unison with the internal branding initiatives of Nike without the company reshaping its value delivery mechanism. These relationships build networks that develop credible, united voices about issues, products, and/or services that are important to your organization. For CCPA and GDPR compliance, we do not use personally identifiable information to serve ads in California, the EU, and the EEA. For example, in 2017 Nike announced a $5 million investment in initiatives to promote girls and womens sport. The brand image and sales performance of Nike sports shoes, apparel, and equipment are significantly subject to the effects of stakeholders interests and corresponding actions. 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. On nikeresponsibility.com and in its backgrounders (attached), Nike addresses issues and initiatives related to workers and contract factories making Nike-branded products (code of conduct, code leadership standards, tiered monitoring system, independent/external monitoring, new source approval process, balance scorecard and remediation plans); environmental sustainability (long-term goals, climate change, water quality standards, elimination of organic solvents and sustainable product innovation); partnerships with the Fair Labor Association and the Global Alliance for Workers and Communities; commitment to increasing youth physical activity; community investments to increase the participation of young people in physical activity to improve their lives and to develop innovative solutions that address the challenges of globalization faced by women and girls; and Nikes work toward internal and supplier diversity. What type of communication does Nike use? Nike sends out a weekly email called "Nike Weekly" to all employees. Nike has a very good reputation for treating its employees well and providing them with good working conditions. For instance, employees performance directly translates to business performance. The company also has corporate social responsibility policies for improving labor management and environmental impact. Change). 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. How does Nike communicate with their suppliers? To effectively manage stakeholder communications you need to track, extract, and report. The company influences them, and they influence the company in return. Nike also uses social media to communicate with employees. This has led Nike to focus on innovation and creating new products. Your email address will not be published. Nike is a global powerhouse when it comes to athletic apparel and footwear. The primary stakeholders in a typical corporation are its investors, employees, customers, and suppliers. The company has a presence in nearly every country on the planet, and its products are revered in many corners of the world. Why is it important for Nike to have external stakeholders? Interest Groups. 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. Nike relies heavily on advertisements to promote their products, especially those featuring high-profile athletes and celebrities. Employees 3. 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 are 'on the ball' when communicating aspects of their products. In time, it can become increasingly difficult to: Manage all stakeholder communication channels. This strategy has been designed to recognize and support the structures and working practices arising from Foxconn, Apple's main supplier of iPhones and iPads. Nike has been considered as one of the ultimate sports products brand especially for its revolutionary products if athlete footwear. Nike allocates 2.4 million dollars each year to the account of promotional schemes and programs and communication with their customers through these programs. Devising Alternates The strategies of integrated communication for marketing can be changed and altered when there is a need to replace the unsuccessful elements and features from the plan. How does Nike communicate with their suppliers? 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*. 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. Additionally, Nikes marketing campaigns often feature well-known athletes and celebrities, which helps to further strengthen the brands image. Don Schultz (2004) defines integrated marketing communication as integrated marketing communication is a strategic business process used to plan, execute and develop, evaluate measurable, coordinated, persuasive brand communication programs over time with customers consumers, prospects, employees, associates, and other targeted relevant external and internal audiences. Nike also engages stakeholders directly through one-on-one meetings and other forms of collaboration. The strategy should communicate to the customers and the internal employees the mission of the organization and the values it stands for. For example, the company integrates cutting-edge designs for its shoes. Nike has built relationships between the company and customer by understanding the customers needs and preferences. To reel subscriptions in, Nike install pop-ups on their official app and website. The brand replied the most on Tuesdays and Saturdays. 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). NIKEs SB&I team managed the overall reporting process and actively participated in stakeholder engagement as an information provider and listener. Stakeholders - a group of people or organization that has interest or concern in an organization. They can use these to predict sales in different seasons of the year. Business partners: suppliers, licensees and service providers. Nikes advertising is often very successful, and the company has become one of the most well-known and respected brands in the world. 2. Over 3,900 employees from various Nike stores have participated in teaching children to be active and healthy. In 2002, in Vietnam alone, Nike hosted more than 1,000 visitors in selected contract factories. 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