Lily Presson

Nicole Rossi
Kambell Schmidt
Cassandra Sheerin
Kayla Singleton
5/4/22
JMC 310
Mini Assignment #4

Situational Analysis

Brief History (Kayla Singleton)

Nike is an American sportswear company, originally founded as Blue Ribbon Sports by

Bill Bowerman and Phil Knight in 1964. The first retail outlet was opened in 1966 and the Nike

brand shoe was launched in 1972. The company was renamed Nike in 1978 and went public in

1980.

SWOT (Kayla Singleton)

Nike’s strengths include its strong brand awareness, recognizability, large customer

base/loyalty, low manufacturing costs, iconic relationships/collaborations, side brands and

superior marketing capabilities.

The weaknesses of Nike as a brand would include their poor working conditions in

foreign countries, pending debts, and dependency on the US market.

Opportunities for Nike would be increasing their consumer-direct strategy, withdrawing

from wholesale distribution, innovative products, and creating more of a presence in emerging

markets.

Threats to Nike are increasing competitive pressures, counterfeit products, and marketing

budget pressure.

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Competitors (Kayla Singleton)

Nike’s top competition is Adidas. Other companies they are in competition with would

include Under Armour, New Balance, Reebok and Puma.

Market Share (Nicole Rossi)

Nike is the number one athletic retailer in the United States. The company had over 1,000

store locations and made $44.5 billion in revenue in 2021. For perspective, Nike was followed by

Adidas, which made only $22.6 billion in 2021. It clearly has a stronghold on the athletic wear

industry in the U.S.

Image source: (Salpini, 2021)

Globally, Nike is still the leading brand in apparel and footwear by a significant margin,

ahead of Adidas, Zara and H&M (Salpini, 2021). It is not uncommon for retail companies to

make over $50 billion in a year, however, usually these companies sell a variety of products and

brands as in the case of Walmart or Amazon. It is unique to have a company like Nike focused

on its own brand and products reaching these heights, according to Salpini (2021). Nike had a

market share of 39% of global athletic footwear and 13% of global athletic apparel in 2021,

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according to Cristina Fernández, a senior equity analyst at Telsey Advisory Group (Salpini,

2021).

Image source: (Salpini, 2021)

Message, Themes, Slogans (Nicole Rossi)

Nike says it exists to break barriers and “bring inspiration and innovation to every athlete

in the world.” Its purpose is to build community and create change that moves the world forward

through the power of sports to “change the game for all.” Nike also says that “If you have a

body, you are an athlete.” Nike is a brand for everyone (Breaking Barriers).

Its slogan is perhaps one of the best known, “Just Do It,” echoing the final words of

convicted killer Gary Gilmore on the morning of his execution in 1977. When asked if he had

any last words before facing the firing squad, Gilmore simply replied, “Let’s do it” (Bella, 2018).

Initially the slogan was met with resistance when advertising executive Dan Weiden pitched it to

Nike co-founder Phil Knight and others because of its morbid origins. The company eventually

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relented and gave the slogan a chance. One early advertising campaign for the slogan featured an

80-year-old marathon runner, Walt Stack, in 1988. Later that same year, Michael Jordan and

Spike Lee leveraged it to promote the Air Jordan shoe line. The aggressive marketing campaigns

paid off. The slogan caught on and is now indelibly linked with the brand (Bella, 2018).

Nike’s commitment to follow through on its goals is reflected in the benchmarks they

have set for themselves. In his annual letter for fiscal year 2020, President and CEO of Nike, Inc.

John Donahoe pointed out Nike’s “Made to Play” initiative focusing on programs for children to

be active through both sport and play. Employees in 29 countries volunteered for this program in

2020 and donated 60,000 hours. Partnerships and collaborations with the U.S. Olympic and

Paralympic Committee includes a program “Coaching Girls” teaching volunteer coaches to build

a fun and inclusive culture for girls in sports.

Beyond sports and active participation programs, Nike has shown its commitment to

diversity and inclusiveness within the company. Donahoe notes “Our efforts have increased

representation of women globally across the enterprise to 49.5% and representation of racial and

ethnic minorities to 29% of our VP Leadership Team in the United States.” It also supports

organizations that focus on the advancement of racial equality. “Our brand would not be what it

is today without the powerful contributions of Black athletes and Black culture” said Donahoe.

Along with creating change through these initiatives, Nike has also recognized the need

to operate their company using sustainable practices, including using 100% renewable energy in

facilities owned and operated in the U.S. and Canada, a reduction of freshwater use in the dyeing

and finishing process and finding ways to reduce landfill waste.

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 This multi-pronged approach shows the company is actively engaged in more than lip

service to their message and is committed to operating in a way that is in harmony with their

slogan (Impact Report, 2020).

Media Channels and Usage (Nicole Rossi)

Nike has a total of 318 social media accounts (Ravi 2018). On Instagram, the brand has

various verified accounts including Nike, Nike Sportswear, Nike Women, Nike Football, Nike

Skateboarding and more. Its main account on instagram, @nike, has nearly 200 million

followers. The account features athletes, many of them people of color or people with

disabilities. Their bio contains the hashtags #BlackLivesMatter and #StopAsianHate. They post

fairly regularly to this account––anywhere from six to 12 times a month. However, they do not

post on a regular schedule, instead sticking to a topical schedule (Ravi 2018). Some posts are

once a week, every few weeks, two days in a row, or twice in a day––focusing on quality over

quantity (Ravi 2018).

There is some cross posting across its different Instagram accounts, but overall each Nike

Instagram account stands alone. Every account has a colorful and consistent theme that captures

the diversity, energy and versatility of the brand. Overall, most of Nike’s social media

interaction, engagement and focus appeals are on Instagram.

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 (Source @nike on Instagram)

There are even more Nike brand accounts on Twitter, but the official @Nike Twitter has

8.9 million followers and only appears to post twice a month. The Nike.com (@nikestore)

Twitter posts much more consistently, promoting new sneakers and apparel. Although this

account posts more often, it has only 4.8 million followers.

Some of the brand accounts, like @nikelondon and @nikegolf have not tweeted in

years––the last posts from 2020 and 2018, respectively. Despite the large following on other

accounts, many of its tweets have minimal interaction, usually with only a few hundred likes.

Others however, have over 50k likes. At times, Nike appears to be at the mercy of the Twitter

algorithm. However, “Nike’s partnerships with high profile celebrities are reflected in the

mentions they receive on Twitter. Nike’s top 10 influencer mentions include the likes of

Cristiano Ronaldo, Neymar Jr and Kevin Hart who also are among the top 50 most-followed

accounts on Twitter” still giving them an edge on competitors (Ravi, 2018).

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 Many of the Twitter accounts post interactive polls on occasion as a fun way for

followers to interact with the brand.

(Source: @Nike on Twitter)

On TikTok, the Nike account has 2.1 million followers and posts semi-regularly. Most of

its content is fitness influencers and athletes giving tutorials on various skills: spinning hook

kicks, ping pong, jump rope, Folklorico and even popular TikTok dances. Some posts are also

mindfulness check-ins with soothing music.

Although Facebook is still the number one social media site worldwide, it appears Nike

has mostly abandoned its outreach on Facebook opting for platforms more popular with an

American demographic (Statista, 2022). Nike’s Facebook page has over 35 million likes, but it

has not posted since January 2018. Nike Sportswear posted most recently to its Facebook in

October 2019. Facebook marketplace listings and disgruntled customers comprise most of what

is seen when searching for Nike on Facebook.

Problem Statement (Kambell Schmidt)

Although Nike has addressed their working conditions in international countries, there is

still a substantial amount of improvement is due. According to a 2018 report by the Clean

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Clothes Campaign, Nike still pays “poverty” wages to workers. This is lower than the amount of

income needed to provide a decent standard of living (New Idea). Externally, Nike needs to hone

in on its impact on the planet. Nike uses an array of environmentally harmful products, like

leather, that pollute the air, land, and water supply (Ethical Customer).

Target Audiences

Demographics (Lily Presson)

After conducting research, the most dependable data comes from 2015-2019. Nike is the largest

company in the athletic apparel industry, reporting $28 billion in annual sales. In 2016, the

former Nike CEO, Mark Parker, told investors that it is “Nike’s obsession with serving the

consumer that sharpens our focus and drives our growth.” In 2019, there were three main

categories that they have chosen to focus on consumer-wise: women, young athletes, and

runners. Nike expanded its women's apparel selection to include more sports bras and tights and

reported a major jump in sales…outgrowing the male-targeted side of the business. Nike

specifically markets to developing children, families or young athletes in hopes that a sense of

loyalty will develop. The brand has sponsorships with major sports leagues, local leagues, and

they often use high-profile athletes as a way to entice the young athletes. The company also

expanded its Nike+ running app and continues to create new running shoes designed for distance

runners. Overall, Nike targets people between the ages of 15 and 40, both men and women, with

an increased focus on young adults/teens. They do not market based on “race, ethnicity, religion

or social class,” but occasionally use education and income as marketing factors. The brand’s

main geographic focus is urban areas in North America, Western Europe, and then China. North

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America is Nike’s largest segment, accounting for 40.3% of total revenues in Q1 of fiscal 2020,

down from 41.7% in Q1 of fiscal 2019, according to reports published by Business Insider.

This graph is a visual representation of Nike’s demographics, according to Toluna.

Psychographics (Lily Presson)

As for psychographics, the brand tends to focus on people with specific interests, ways of life,

and personalities. They market strongly towards consumers who enjoy sports, whether playing,

watching or discussing sports. Nike attempts to produce a feeling and vibe around their products.

They make you feel as though you are a part of the Nike family, and their products make you feel

athletic. They want Nike to be a brand, a mindset, a special feeling…so they market it as such.

Internal (Cassandra Sheerin)

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 Nike, the well-established sports apparel company headquartered in Beaverton, Oregon,

can attribute much of its success to its product, marketing strategy, and its organizational

structure. The company operates in approximately 170 countries and employs more than 75,000

people, making it one of the leading companies in the sportswear industry (Thompson, 2019).

Nike has created products within their own brand such as Air Jordan, Air Force 1, Nike Pro,

Nike Golf, among others. In addition, Nike owns subsidiaries like Cole Haan, Hurley

International, Converse, and Umbro, as well as others. In order to manage the ever-expanding

company, Nike relies on an organizational structure that combines multiple aspects of a

hierarchical and product-based construction. The structure can be broken down into three groups;

global headquarters, regional headquarters and subsidiaries (Cuofano, 2022). Senior executives

lead seven functional teams that make decisions with global ramifications, as well as manage

operations in the United States, Americas, and Asia Pacific. The global headquarter is also

responsible for market research and product development, specifically for footwear (Thompson,

2019) .

Regional headquarters in the Netherlands manage Europe, the Middle East and Africa,

which comprises 27 nations. This layer of hierarchy has assured a much more seamless business

operation for the company. The regional headquarters is responsible for designing some of the

marketing campaigns to help localize the communication and appeal to their target audience.

This has helped Nike to become more effective in attracting customers globally (Thompson,

2019).

The subsidiaries introduced before, including Cole Haan, Converse, Hurley, and Umbro,

operate autonomously with authorization from higher ups. Each of these brands are for a

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different audience, so they all follow their own product development and marketing

communication strategies (Thompson, 2019).

We’ve discussed the means of the operation but who runs it? CEO and President of the

company, John Donahoe is at the top of the hierarchy. Under him are executives who lead

different sections of the company (Nike.com). All of the Nike employees work in a variety of

ways to design, create, and sell products that have helped Nike to compete in a very intense

market.

This chart is representative of Nike’s leadership, created by Cassandra Sheerin.

External (Cassandra Sheerin)

While the company is organized internally, much of Nike’s success can be attributed to its

external environment. Nike spares no expense on sponsorship and marketing, aligning itself with

the most influential athletes, teams, and events around the world. The company has more than

16,000 athletes and sports organizations who wear their apparel and share it with the world via

their platform (SportsPro, 2021). Nike is one of the biggest sponsors in the world, spending over

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$6 billion annually on athlete endorsements and sponsorships (Crespigny, 2022). Nike has kept a

large presence in the world of sport since its rise and continues to dominate due to the amount of

athletes that rep the swoosh. Athletes such as Tiger Woods, Lebron James, Cristiano Ronaldo,

among many others, are sponsored by the company. While Nike spends a significantly higher

amount on their sponsorships and endorsements, these affiliations differentiate them from their

competitors. This has certainly kept the company relevant in changing times, appealing to an

audience of all demographics. Nike has ensured its success by adapting to the factors of the

external environment; these include technological, demographic, sociocultural, and economic

changes. They use technology like social media to connect and create which has allowed for their

products to be both accessible and appealing. This has allowed Nike to keep up with different

age groups and determine their focus when manufacturing and marketing. In addition to this,

Nike has partnered with and launched campaigns advocating for social justice, equality, health,

as well as other sociocultural issues. This connects Nike with the world and keeps them relevant

in troubling times. Because Nike’s competition is so fierce, these practices are key in setting

them apart.

Special (Cassandra Sheerin)

Regardless of the many powerful campaigns Nike has launched, they have been involved

in some controversies that have turned some heads away from their products. In 1996, Life

magazine ran a report on child labor that inluded a photo of a 12-year-old boy sewing a Nike

soccer ball (Cavanagh, 1996). Nike denied the claims, saying they had little control over the

subcontracted factories. After questions were raised and controversy put the company in bad

light, beginning in 2002, Nike began auditing its factories for occupational health and safety.

Backlash as well as its public relations impact forced Nike to change methods, improve their

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conditions, and implement new processes. Since then, the company has begun initiatives to

improve factory conditions (Nisen, 2013).

In regards to the athletes Nike partners with, the company has stuck with some athletes

through controversy like Tiger Woods and Colin Kapernick. This has also raised questions about

the company and its values, but Nike works to ensure the public understands it is a company that

is using its platform to create and inspire change. The company often advocates for inclusivity

and works to produce and sell quality products in an ethical way.

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 Goal(s) (Lily Presson)

According to their website, Nike “exists to bring inspiration and innovation to every

athlete in the world.” Their purpose is to break barriers & build community in the world through

the power of sport. Nike’s site is sure to mention that “if you have a body, you are an athlete”

(Breaking Barriers). They claim to achieve these goals by building a creative and diverse global

team and by making a positive impact in communities where we live and work. This sense of

inclusive community is what makes Nike stand out from other brands. Nike is a lifestyle, rather

than just a shoe or a brand. They put a major emphasis on breaking barriers and expanding

human potential. It is a brand of hope and inspiration. Short term, their goal is to make profit and

increase sales, from increasing advertising revenue to securing well-known sponsorships.

Objectives (Nicole Rossi)

Nike finished its last set of five-year goals and objectives in 2020. For the next five years,

Nike plans to “bring [its] purpose to life through 29 targets focused on people, planet and play,”

through various objectives (2025 Targets Summary). The company has 15 total objectives to

achieve by 2025 that include various social, health and environmental topics.

The objectives encompass: representation and hiring, pay and benefits, health and safety,

inclusive culture and engagement, education and professional development, business diversity

and inclusion, foundational expectations, active kids, inclusive communities, employee

engagement, community investment, carbon, waste, water, chemistry (2025 Targets Summary)

In representation and hiring, Nike plans to have 50% female representation in its global

corporate workforce and 45% of its leadership positions to be occupied by women by 2025

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(2025 Targets Summary). Nike’s global workforce is composed of all full-time employees across

the globe who do not work in its retail stores, distribution centers or Nike Air manufacturing

innovation and leadership positions including vice presidents and above (2025 Targets

Summary). The company also plans to have 30% representation of racial and ethnic minorities at

director levels and above in the U.S. and 35% representation in its U.S. corporate workforce to

increase the number of Black and Latinx talent by 2025 (2025 Targets Summary). Nike defines

racial and ethnic minorities in the U.S. to include “American Indian or Alaskan Native, Asian,

Black or African American, Hispanic/Latino, Native Hawaiian or other Pacific Islander” ( 2025

Targets Summary).

The company also plans to donate $10 million to investment earmarked for Historically

Black Colleges and Universities and Hispanic-Serving Institutions through scholarships and

academic partnerships by 2025. Additionally, this objective will allow the company an

opportunity to increase interns and direct hires from ethnic minority groups (2025 Targets

Summary). Finally, Nike will have 100% of its strategic suppliers, which represent around 80%

of its total footwear and apparel production, to increase access to career opportunities and

upward mobility for women employed in their facilities by 2025 (2025 Targets Summary).

To achieve its pay and benefits’ objectives, Nike will maintain 100% pay equity company

wide across all employee levels on an annual basis, as well as provide competitive and equitable

benefits for all employees (2025 Targets Summary)

The company will meet its health and safety objectives by requiring all of its strategic

suppliers to have safe and healthy workspaces while making its products (2025 Targets

Summary). Some Nike’s inclusive culture and engagement objectives include continuing to

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improve access to athletes of all abilities. That includes the promotion of Nike’s theme, “If you

have a body, you are an athlete” (2025 Targets Summary).

Additionally, it will double its investments on professional development for U.S. racial

and ethnic minorities and women globally (2025 Targets Summary). According to Nike, “A

Diverse Supplier is one that must be majority (at least 51%) owned, operated, managed, and

controlled by a diverse person or persons who are either U.S. citizens or lawful permanent

residents. A ‘diverse person’ may be defined as a minority, woman, disabled, LGBTQ and/or

veteran” (2025 Targets Summary).

The company’s active kids objective, for children ages 2-17, will drive sustained

community impact by not only getting kids moving, but achieving 50% girl participation in its

programs by 2025 (2025 Targets Summary). To achieve inclusive communities, employee

engagement, and community investment, Nike will invest $125 million to support organizations

it believes are working to level the playing field and address racial inequality, increase the

number of employees engaged in their communities by a minimum of 35% and invest 2% of its

prior year’s pre-tax income to drive positive impact in its communities annually (2025 Targets

Summary).

To achieve its sustainability goals (carbon, waste, water, chemistry) Nike will have a 70%

absolute reduction of greenhouse gas emissions in both its owned and operated facilities. Nike

will utilize improved design and operational efficiency to create a 10% reduction in waste per

unit in its manufacturing, distribution, headquarters and packaging (2025 Targets Summary). It

will divert 100% of waste from landfill in its extended supply chain and recycle at least 80%

back into Nike products and goods.

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 The company plans to use 25% less fresh water usage per kilogram in its textile dyeing

and finishing practices and restore 13 billion liters of water. Finally, Nike will adopt clean

chemistry alternatives for its 10 different priority chemistries across its supply chain (2025

Targets Summary).

Ultimately, one can see Nike is committed to its goals and objectives and clearly lays

them out for stakeholders and publics to see. It has measurable objectives that it can achieve by

2025 in order to fulfill the brand’s desire to build community and create change that moves the

world forward through the power of sports (Breaking Barriers).

Strategies

Communication Approach(es) (Cassandra Sheerin)

Nike uses a hybrid approach to communicate with target customers in the global athletic

footwear, apparel and equipment industry. The company puts emphasis on the benefits of

effective communications, and it is observable in the market as their success is largely attributed

to their ability to attract new customers, while keeping the existing ones. According to the

Panmore Institute, Nike’s communication strategies can be broken into four categories in which

the company combines to effectively promote its products and strengthen brand image;

advertising, personal selling, direct marketing, and public relations.

Advertising is crucial to brand success because it has the ability to reach large

populations of target audiences with a significant impact. Though it can be costly, Nike’s

dedication to advertising has created a stronger brand image and higher demand for its products.

Nike uses advertisements in the form of celebrity endorsements, spending over $6 million

annually, typically featuring highly popular personalities such as professional athletes (Gregory,

2018). Target customers not only see that their favorite celebrities use Nike products, but they

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see it everywhere; social media, webpages, behind television screens, on billboards, in print. In

addition to their ability to brand themselves among popular personalities, and put it everywhere,

Nike also advertises in ways that can target the feelings of viewers. They often put out

campaigns featuring stories related to social issues, injustice, inequality, etc. to appeal to an

audience's sense of emotion (Bhasin, 2020). “Nike has a long history of using its ads to make a

social statement. The ‘Just Do It’ campaign, created by the Wieden+Kennedy agency, launched

in 1988. The first commercial in the campaign featured 80-year-old Bay Area icon Walter Stack,

who ran approximately 62,000 miles in his lifetime” (Tyler, 2018). Nike’s ability to advertise

well attracts audiences all over the world and lends itself to the great success of the company.

Personal selling is the second communication approach Nike uses. Panmore Institute

identifies this strategy as efforts to create a positive purchasing process interaction between

buyers and sellers within Nike locations. Because store personnel are trained to provide adequate

assistance to customers, they contribute to quality customer experience. As a result, personal

selling helps to create better customer relations, while also promoting the company’s products

(Gregory, 2018).

Direct Marketing, the third marketing method allows for Nike to promote new products

to target markets (Gregory, 2018). Establishing these relationships with customers motivates

them to consistently purchase Nike products.

Ultimately, Nike implements public relations to address these social issues that may

occur, and to promote the brand in a positive light so potential and existing customers develop a

better perception of the brand image.

Method used to achieve Objective(s) (Cassandra Sheerin)

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 Nike is constantly driven by the power of sport to bring out the best in people, and the

potential of people to bring out the best in the world. The company’s purpose guides them by

creating groundbreaking sport innovations, by making products more sustainably, by building a

creative and diverse global team, and by making a positive impact in communities around the

world (Nike.com). Ultimately, Nike’s objective is to bring inspiration and innovation to every

athlete in the world and they do this hands-on throughout the world.

To do this, Nike believes in human potential. They focus their work on diversity, equity

and inclusion; responsible sourcing and building community. Nike has implemented the

Diversity, Equity and Inclusion Strategy in which they believe all three should be included and

valued in representation, education, development, and community. In addition, “in 2020, Nike,

Converse, Jordan Brand and Michael Jordan committed a combined $140 million over 10 years

to invest in and support organizations focused on economic empowerment, education and social

justice to address racial inequality for Black Americans. [Nike’s] Black Community

Commitment will go toward developing strategic national partnerships, as well as supporting

local community organizations, and we’ll engage our employees as partners throughout.” Nike

also implements responsible sourcing in which Nike builds long-term relationships with

manufacturing suppliers who share our commitment to making products responsibly and

sustainably. Finally, Nike invests in people through building communities through a mutual love

for sport (Nike.com).

Another method Nike implements within their work to achieve objectives is investing in

the planet. The company focuses on carbon, waste, water, and chemistry by implementing

procedures in which products and outreach is sustainable and environmentally friendly. In fact,

75 percent of all Nike shoes and apparel now contain some recycled material (Nike.com).

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 Finally, Nike invests in play and sport for all kids, because “an active next generation

means a healthier and more equitable future.” Nike has implemented Made to Play, a program

dedicated to getting kids moving. In addition, the company is working with local partners to

increase girl’s participation and train more coaches, particularly in marginalized communities

(Nike.com).

Indeed, Nike is a global leader in the athletic footwear, apparel and equipment industry,

and they have gained massive profit from their methods having to do with communication and

product design and development. However, their mission and objectives are just as

transformational as they are transactional, being that Nike’s work is much more than making

profit. Nike implements programs and procedures that value diversity, equity, inclusivity,

sustainability, and the human race in order to achieve their overarching goal of being a global

leader in change, lending itself to the idea of the triple bottom line. The triple bottom line (the

three Ps), which refers to people, the planet, and profit suggest the three performance areas that

companies, like Nike measure (Page & Parnell, 2021).

Communication Channels Used (Kayla Singleton)

As Nike executes its five-year plan to “bring [its] purpose to life through 29 targets

focused on people, planet and play,” (2025 Targets Summary) they will be communicating their

efforts to their target audience of consumers in the global athletic apparel industry by utilizing

the communications channels of social media, websites, television, and billboards.

Media Approaches Used (Kayla Singleton)

Paid Media: Nike was a sponsor brand for the SuperBowl, which gave them 46 minutes of on

screen time even though they did not pay for a traditional commercial. Nike also is a reoccurring

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sponsor for Team USA in the Olympics, most recently designing their podium outfits

(TeamUSA.org, 2022).

Another example of Nike’s most effective paid media, is their television commercials with

prominent athletes. Their partnerships with athletes like Tiger Woods, Serena Williams and Colin

Kaepernick take stances on social issues. Their advertisement with Tiger Woods took a stance on

the issue of race in golf (Global Marketing Professor), the advertisement with Serena Wiliams

exposed the double-standard of how men and women are perceived in moments of intense

emotion (Nike.com), and the advertisement with Colin Kaepernick showed their support for his

kneeling during the national anthem.

Earned Media: Nike’s effective use of paid media then turns itself into earned media. An

example of this would be the positive and negative media attention that Nike got after their

“Dream Crazy” advertisement with Kaepernick. Their support of Kaepernick after the backlash

he received from NFL teams for kneeling during the national anthem started a boycott of

customers who disagreed with his actions (The Guardian, 2019). Nike was the center of negative

media attention as former customers burned their Nike products in the streets but even though it

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sparked a boycott, it still earned Nike media positive attention from supporters and $6 billion in

overall value (Vox, 2018).

Social Media:

Nike has a strong social media presence which contributes to their customer base. On Instagram

they are the most followed brand with 202,875,848 followers. On the @Nike instagram page

they showcase athletes from around the world including famous Olympians Chloe Kim and

Megan Rapinoe. Their instagram presence visualizes their commitment to inclusivity and

diversity, more so than their sportswear products.

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On Twitter, Nike has 9,029,628 followers. With the hashtags, #BlackLivesMatter and

#StopAsianHate in their bio they assert their stance on social issues. Nike also utilizes Twitter to

interact with customers, creating further customer loyalty.

Also a prominent social media channel for Nike is YouTube, with 1.67 million followers and

494,962,018 views. With YouTube, Nike regularly posts long and short form videos that range

from casual interview videos with athletes to films that further Nike’s objective to inspire.

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Owned Media: Nike’s owned media is their website where they are able to directly

communicate to their audience their goals and objectives (Nike.com), what they are doing to

achieve those objectives (News.nike.com).

Tactics (Kambell Schmidt)

Tactic 1:

The first tactic Nike will use is social media to gain a more intimate, trustworthy

relationship with their audience/customers. Nike already has a strong presence on social media,

with all major platforms having large following numbers (Facebook 35M likes, Instagram 202M

followers, and Twitter 9M followers). Nike will advertise a subscription on their social media

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platforms, Instagram, Facebook, and Twitter, that would give Nike’s most loyal fans the

opportunity to gain access and features that only subscribed members can take part in. This gives

Nike a more devoted relationship with their fans and customers that will ultimately gain trust and

cohesiveness. Not only does this help promote close-knit relationships with the audience, it

generates paid and earned media.

Tactic 2:

This can be done through a separate website from their company’s own, which leads into

the second tactic. You will have to have a subscription to be able to enter the website. In 2021,

Nike spent under $100 million on advertising in digital, print, and national TV (Nike Advertiser

Profile). This number can be reduced with the amount they are already gaining through their

media approaches. With the cost that is reduced, that amount will go toward shipments from their

manufacturers in Asia and better working conditions.

Tactic 3:

The website mentioned above offers you benefits such as deals on their merchandise,

early access to releases and events, etc. These deals and offers will drive “aware” customers to

start a subscription and ultimately will form loyal relationships.

Tactic 4:

Nike is known for their emotional marketing and paid athlete celebrity endorsements

(Nike.com). With their third tactic, Nike will take advantage of this with a heartfelt celebrity

campaign showcasing the intimate, emotional side of the company. An example of this campaign

can be famous professional soccer or fútbol players going to underpriveledged countries in

Europe/Asia to help improve not only soccer fields and their desire to play, but the community as

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a whole. This campaign has a reach of people from all over the world. This is the best tactic in

terms of tugging at the audience’s heartstrings and improves their love and passion for the brand.

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 Sample Tactics (Nicole Rossi)

Fact Sheet/News Release

In terms of corporate responsibility, Nike has many effective tactics to provide

stakeholders with transparency about the company’s triple bottom line (the three Ps) to people,

planet as well as profit (Page & Parnell, 2021, p. 200). In outlining its 2025 goals and objectives,

Nike also shares with publics tactics they will use to achieve them.

People/Social CSR Tactics:

● 100% of Nike’s vice presidents are required to “complete and be credentialed on

Inclusive Leadership education” (2025 Targets Summary).

● Nike pledges $1 billion to cumulative spending by 2025 on diverse suppliers (2025

Targets Summary)

● All of Nike’s facilities in its extended supply chain will meet the company’s foundational

labor, health, safety and environmental standards in order to demonstrate respect for

workers’ rights and respect for the communities in which they operate to achieve its

foundational expectations (2025 Targets Summary).

Planet/Environmental CSR Tactics:

● Nike pledges to use 100% renewable electricity and electric vehicles by 2025 (2025

Targets Summary).

● It will maintain greenhouse gas emissions from its key suppliers’ manufacturing and

transportation operations below their 2020 level emissions “through the use of renewable

energy, energy efficiency, and alternative fuels” (2025 Targets Summary).

● It pledges to allocate 10 times the amount of finished product waste into refurbished,

recycled or donated materials (2025 Targets Summary).

27
 ● Nike will support “long-term resilience for water-stressed ecosystems and communities

within [its] extended cotton supply chain” (2025 Targets Summary).

Profit/Economic CSR Tactics:

In 2022, Nike plans to reach $50 billion in revenue by focusing efforts on digital and

direct to consumer advertising (Salpini, 2021). The company expects to reach 50% digital

through both its own channels and partners by 2025; it will increase DTC from 40% to 60% by

2025 as well (Salpini, 2021).

(new.nike.com)

Additionally, customers can visit news.nike.com, its owned media, to see progress and

updates made by the company in the achieving of its objectives. For example, consumers can

read “How Nike Is Transforming Its Supply Chain to Best Serve Consumers” (How Nike Is

Transforming) or how Nike has made an equity investment in the Women’s National Basketball

Association (Driven By Its Commitment).

28
 (new.nike.com)

Social Media

Nike has 318 total social media profiles and is one of the most followed brands online. It

has accounts on all major social media platforms, including Facebook, Twitter, Instagram,

YouTube, Pinterest, TikTok and more (Ravi, 2018). Nike has diversified its presence online

through separate pages for its different audiences and products. For example, one quick search

on Instagram shows a variety of Nike brand accounts including Nike Women, Nike Sportswear,

Nike Run Club and more. In 2019, Nike Football on Facebook was one of the top 10 most

followed brand pages on Facebook (Ravi, 2018), and in 2022 Nike’s primary Instagram account

reported 208 million followers.

29
 (@Nike on Instagram)
Nike has also launched a variety of social media campaigns to promote itself. In 2017,

the brand ran its “Breaking2” project with world class marathon runners attempting to run

26.219 miles in two hours, something never done before (Ravi, 2018). “Regardless of the

outcome, the ultimate winner was Nike as the athletes wore a customized version of Nike’s

racing shoe for the event” (Ravi, 2018). Also in 2017, the brand launched its “Equality”

campaign during Black History Month. Due to the campaign premiering not long after President

Trump’s illegal immigration ban, it brought the company increased publicity (Ravi, 2018).

The company also opts for quality over quantity in its social media presence. It follows

no consistent posting pattern and instead posts more frequently during their campaigns or during

international sporting events featuring its brand ambassadors (Ravi, 2018).

Brand Ambassadors/Celebrity Endorsements

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 Nike, as a large company, had the advantage of using paid media to hire or entice sports

superstars to be spokespeople and endorse its brand. Many stars from a variety of sports have

been the face of Nike over the years, including Tiger Woods, Maria Sharapova,

Roger Federer, LeBron James, Michael Jordan and Cristiano Ronaldo (Chang, n.d.). “By

personifying the brand through these sporting legends and putting their faces ahead of the brand

or their product, Nike has earned itself a special place in the sporting world” (Ravi, 2018).

However, the publicity brand ambassadors bring to Nike has not always been positive. A

celebrity’s controversy can also bring controversy to a brand for endorsing him or her. “The

sportswear firm has run advertising featuring Lance Armstrong after a doping scandal, Maria

Sharapova following a failed drugs test and Tiger Woods in the midst of a sex scandal and after a

drug driving accusation” (Kelner, 2018).

For the company’s 30th anniversary in 2018, Nike took a risk in choosing NFL player

and civil rights activist Colin Kaepernick, most known for starting the movement of taking a

knee during the U.S. national anthem, as the face of its global advertising campaign (Kelner,

2018). Following the announcement, Nike’s share price fell 2% and many consumers threatened

to boycott the brand or cut out the Nike logo from their socks (Kelner, 2018).

In spite of the divisive move, Nike founder Phil Knight said, “It doesn’t matter how many

people hate your brand as long as enough people love it” (Beer, 2019). It appears Knight was

right too. After the campaign, Nike claimed $163 million in earned media, a $6 billion increase

31
in its brand value and a 31% boost in its sales (Beer, 2019).

(Kelner, 2018).

Timeline/Implementation (Cassandra / Kayla)

As one of the top manufacturers and marketers of sports footwear and apparel, Nike

channelizes communication with target audiences through pervasive, impactful, and resonating

strategies.

Nike rolled out the new release/fact sheet consisting of the 2025 Target Summary that

outlined its 2025 goals and objectives, along with the tactics they will use to achieve them at the

beginning of fiscal year 2021 on their website available for their audience to see

(purpose.nike.com).

Nike’s social media prioritizes quality over quantity in its social media presence, evident

in their infrequent posting. Instead of filler content, Nike posts intentionally with inspiring

figures in sports, during major sporting events like the Olympics sporting, and when releasing

campaigns with their celebrity brand ambassadors. The messaging of their social media posts

further their goals of “representation and hiring, pay and benefits, health and safety, inclusive

32
culture and engagement, education and professional development, business diversity and

inclusion, foundational expectations, active kids, inclusive communities, employee engagement,

community investment, carbon, waste, water, chemistry” (2025 Targets Summary).

Their brand ambassador and celebrity endorsements make social statements and are

widely promoted. These campaigns have a hybrid strategy on social media, commercials,

billboards and print. Nike’s 30th anniversary “Just Do It” campaign with Colin Kaepernick was

announced in Sept. 3 over social media (CNBC, 2018) and was followed up with the ‘Dream

Crazy’ commercial, starring Kaepernick and featuring other stars like Usain Bolt and Serena

Williams, posted to social media Sept. 5 and aired on television Sept. 6 during the NFL season

opener (Maaddi, 2018). Nike also had billboard ads across the country, including one revealed in

San Francisco Union Square on Sept. 4 of a black and white shot of Kaepernick’s face with the

words “Believe in something. Even if it means sacrificing everything.” (CBS SF, 2018).

33
 The use of social media speaks to many audiences Nike wants to target. Not only this, but

celebrity endorsements and brand ambassadors reach a wide audience that include a diverse

collection of people to endorse their brand. Though Nike’s audience is global, their influence is

significant which makes it easy for their outreach to be seen at the same or similar timing by

most target audiences.

While most brands incorporate heavy advertising, Nike sets themself apart by the

timeliness in which they release advertisements or campaigns and the messages they contain.

34
Ultimately, Nike structured their outreach to keep up with the times in order to make social

statements, leaving an impression on their target audience.

Evaluation – what does success look like (Kambell / Lily Presson)

Nike values the consumer and the importance of providing a quality product (Keller,

2022). This means Nike values a qualitative approach when measuring success. Nike strives to

offer more products to more people than any other sports company. By doing so, they are able to

capture a far greater market share of the market than any other company (Keller, 2022). Consider

a plain black tee-shirt, for example. A black shirt with a Nike logo may be perceived to be higher

quality than a blank black tee. To Nike, success looks like many things. They strive to succeed in

innovation/designs, sales and reach. But they place a higher value on qualitative success. In

2025, Nike aims to: include “seeing women in 45 percent and racial minorities in 35 percent of

leadership roles, reduce greenhouse gas emissions by 70 percent in Nike facilities and multiply

the amount of product waste recycled or donated, “ among other goals. (Sergison, 2021). Nike

also pledges to use 100% renewable electricity and electric vehicles by 2025 (2025 Targets

Summary). Nike wants to send the message to their consumers that they want to make your life

better at something you are passionate about (whether that be basketball, running, swimming)

and to improve your overall health (Keller, 2022).

Conclusion

Goals, Objectives, Strategies, Tactics (Kambell Schmidt)

As stated on their website, Nike “exists to bring inspiration and innovation to every

athlete in the world.” They continuously state that “if you have a body, you are an athlete.” Their

goal as a company is to give potential customers the confidence and push they need to ultimately

become a loyal customer. Nike does this through paid high-profile celebrity endorsements and

35
efficient social media marketing. Nike’s success on social media gives them the reach they need

to become a globally praised brand. Nike continues to struggle with improving health standards

for employees and working conditions in developing countries. As Nike is frequently trying to

improve their internal workforce such as racial representation and pay and benefits, less attention

is given to global issues. This is a red flag as Nike is customary on the international level.

Target Audiences (Cassandra Sheerin)

Nike reaches a large audience through their message, “if you have a body, you are an

athlete,” (Nike.com). In doing this, the brand casts a wide net and captures the attention of

consumers who may not consider themselves athletes but want to.

Overall, Nike targets people between the ages of 15 and 40, both men and women, with

an increased focus on young adults/teens to build long-term brand loyalty. The brand’s main

geographic focus is urban areas in North America, Western Europe, and then China (Nike

Segmentation and Targeting, n.d.).

In addition, Nike has recently launched a variety of women’s lines to tap into the fast

growing womens segment, and also the rapidly growing athleisure trends (Nike Segmentation

and Targeting, n.d.).

Media Channels (Nicole Rossi)

Overall Nike is successful in curating content that speaks to its consumers. Although

Nike doesn’t post regularly, it is interactive in its replies to users on social media who tag or

mention Nike on Twitter, TikTok and Instagram. Not only is interacting with users important to

curating and maintaining its brand, but “78% of consumers are willing to buy from a company

after having a positive experience with them on social [media],” according to SproutsSocial

(Cover, 2021). However, our team recommends that Nike post more consistently to its accounts

36
too, rather than only posting topically. As a global brand Nike should also once again utilize

Facebook rather than letting it sit stagnant as it has since 2018. By using Facebook, Nike can

reach a more global audience and expand its brand and sales with 2.9 billion active monthly

users (Statista, 2022).

While having lots of accounts (Nike golf, Nike Football, Nike Skateboarding, etc.) can be

beneficial to cater to more niche audiences who enjoy specific sports, a lot of these accounts go

unmaintained or abandoned like Facebook. We recommend that Nike either delete these excess

accounts or allocate more money into employees who are dedicated to maintaining these

accounts. Otherwise, it looks unprofessional to consumers for a large brand with influence to

have social media accounts that go unmaintained and unused.

Messaging (Nicole Rossi)

As illustrated throughout this report, Nike does not shy away from taking a stand on

controversial social issues, using hashtags like #BlackLivesMatter and #StopAsianHate in their

social media bios. This has proved beneficial too, as Nike saw increased stocks and revenue

following their controversial 30th anniversary campaign featuring Colin Kaepernick. This is not

surprising either, a 2019 study found that 90% of Generation Z consumers believe companies

have an obligation to help combat social and environmental issues and 75% will research a

company to see if a company is honest when taking a stand on issues (Page & Parnell, 2021, p.

208). Additionally, “nearly 50% of American adults are more likely to buy from a company with

a CEP who takes stands on issues these publics agree with” (Page & Parnell, 2021, p. 209).

While there is the risk of losing consumers who disagree with Nike’s stance, their campaigns and

messaging has been measured and strategic. For now the benefits far outweigh the risks.

37
Budget (Kayla Singleton)

In 2022, the Nike brand was valued at $33 billion which is an increase of nearly $3

billion from 2021 and had a worldwide revenue of $44 billion in 2021. Nike’s fiscal year is form

June 1st to May 31st (investors.nike.com). In FY 2021, Nike spent $3.1 billion on advertising

and promotional expenses, which was down 13% year-over-year due to pandemic-related

cutbacks. $245 million of that was spent primarily on media with $120 million being spent in the

Asia Pacific region and $95 million in North America.

Nike is currently assessing its media spending in a review that started in December and is

expected to run through the spring (Poindexter, 2021). The full review of the its media accounts

is the largest of its scale that Nike has conducted in more than 10 years with information from

GroupM, Omnicom Media Group, Dentsu Media, Publicis Media, IPG Mediabrands, Stagwell

Media, and Havas Media (Poindexter, 2021). This review will allow the major ad and media

agencies to compete for a portion of $1 billion partnering with Nike.

I recommend that Nike invest more money in celebrity athlete endorsements like they

have done with Colin Kaepernick and Serena Williams. These statement-making advertisements

about social issues, that although sometimes receive backlash, reap financial rewards as it did

when the Kaepernick campaign started a boycott against Nike but earned $6 billion

(Abad-Santos, 2018). I also recommend that Nike continue to put money into outdoor media like

billboards. Nike’s ability to create powerful advertisements that don’t simply advertise a product

but a lifestyle and ideals is what allows them to stand out from other brands and keeps them the

number one sportswear brand and the most valuable apparel brand (statistica.com).

38
Next Steps (Lily Presson)

Their mission is to “bring inspiration and innovation to every athlete* in the world (*if

you have a body, you’re an athlete).” Their products are vehicles for achieving your fitness or

athletic dreams.

Nike excels in many aspects, but there is always room for improvement. With Nike being

such a large brand, it’s easy to lose track of what matters the most: your people, the workers.

Poor working conditions and non livable wages make it unappealing to those looking for a job.

Environment-wise, there is always room for improvement.

39
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