They were responsible for monitoring day-to-day compliance with labour laws and the Nike code. 3.4.1 Viral Marketing, 5. According to Nike co-founder and chairman Phil Knight, all businesses should be good citizens (Willigan, 1992). Transaction marketing doesn’t differentiate between a repeat customer and a new transaction (Godson, 2011) and disregards customer satisfaction and customer loyalty (Hartung, 2009). David Doorey (York University) conducted a case study of this transformation, drawing on interviews with company executives, industry professionals, and representatives of unions and NGOs involved in the push for factory disclosure. Companies have difficulty hiding from the media and should replace defensiveness with a proactive strategy that uses code monitoring and enforcement — and eventually full disclosure — to their advantage. The company started with making running shoes and now has become one of the world’s leading clothing, footwear, sportswear, and equipment marketer and supplier. NA.Finance.SupplierSupport@nike.com. 5.3 Mass Media Relationships (R23). We also have tools that assess growth and potential in leadership, operations, innovation, product creation, and sustainability. Nike has millions of customers and it can be argued whether it is possible to create a relationship with all of them (Gummesson, 2008). Learn more about these programs here. Nikeblog.com is an example of an online platform managed by customers. Introduction The table below shows a selection of the 30Rs applied to Nike. Suppliers servicing WHQ and the U.S. deemed ineligible for eInvoicing should send invoices to either of the following locations: Nike NA Supplier Invoices Digital Transformation at Walmart: A case study. Moreover Nike don’t have any costs in connection with blogs like that, hence it is free marketing. When you call or email a supplier, it is important to have your questions ready. Last accessed on 28.03.2012 at http://www.globalexchange.org/sweatfree/nike/faq. Campaign 19.02.2010. This campaign underpins Nikes focus on celebrity endorsement, by using Ronaldinho as the linchpin of the campaign. Nike used internet marketing, email management technologies, and using broadcast and narrowcast communication technologies to create multimedia marketing campaigns. Total relationship marketing. Sep 01, 2004. (??). Nike on the other hand stayed with Tiger Woods and stated that they would support the golf star while he worked through his personal problems. How to communicate better with your suppliers. Promotional emails from Nike go to the customers and then if the customer has questions they can email or go straight to the website to ask … Solomon, M. (2010). Helping suppliers develop skills and knowledge can boost their sustainability performance. First of all, both Woods and Bryant were capital investments for the company and cancelling the relationship to them would mean losing a significant amount of money. Last accessed on 02.04.2012 at http://www.articledashboard.com/article.php?id=1456078&act=print, Hughes M. (2008). Nike was founded in 1964 by the track runner Phil Knight and his coach Bill Bowerman. Finally, staying loyal to their celebrity endorsers during their difficult times is well in line with Nikes marketing approach of telling a story. Prospects have the lowest level of loyalty and involvement towards a brand and partners have the highest level. The manufacturing, the assembly and parts of the retailing are outsourced. This understanding is utilized to design products which form an integral part of Mike`s value proposition. The advertising costs for the campaign exceed the income through donations by far (africomnet.org, 2012). 328 apparel factories located in 37 countries supplied Nike retail stores in 2018. A systematic supply chain monitoring mechanism can help address the worst practices. Nike turned this unprecedented response to its supply chain crisis into a lucrative marketing opportunity that outweighed competitive risks associated with factory disclosure. Nike does not own any of the factories where their products are produced. Nikes aim should be to move customers up the ladder of loyalty. Nike reacted by replacing SF6 with nitrogen and so avoided the release of millions of tons of CO2 equivalent (Americancarbonregistry). The sustainability efforts represent added customer value in term of a customization of Nike products to the customer need for more green and sustainable products. Costly red campaign reaps meager $18 million. This celebrity endorsers shape the public image of Nike. Together, the three countries accounted for 27%, 22%, and 10% of Nike’s apparel production during the year. It is a free app developed by Nike that uploads customers’ Nike+ data from plus devices to their nikeplus.com accounts. Nike implemented this intensive strategy in its early years, such as when it introduced apparel and sports equipment to its product mix. Before that, the company, its suppliers and retailers used to connect over 27 different computer systems worldwide. Viral marketing videos give Nike a personal touch and sharing and discussing viral content within informal networks creates the feeling of belonging for the customer. Research conducted by Alvarez, Casielles and Martin (2011) reveal that having trained and motivated stuff that is fully committed to a company’s objectives is essential to build up stable customer relationships. As part of the mega relationships, mass media relationships occur on a higher level than the market level. These changes included: Conduct a basic audit: Nike introduced the SHAPE internal monitoring system to provide it with an initial assessment of whether a proposed new factory was near satisfying the code of conduct. Apart from having established the standards for conduct for the suppliers, Nike also ensures compliance using various methods. Headquartered in Beaverton, Oregon the company directly employs 38 000 people in 2011 (Datamonitor, 2011). If you don’t know about it, you can’t fix it. Nikes wait and see approach in regard to the bad publicity of some of its endorsers is highly reasonable. Its products are made in 42 countries at 567 independent factories employing more than 1 million workers (check out Nike’s manufacturing map). El Paso, TX 79998-2166. Involvement in a marketing sense is the relevance a person attaches to a certain product or brand, based on their needs, values and interests (Solomon, 2010). Celebrity endorsers are a great way to give the Nike brand a personal touch. How does Netflix stream its content worldwide. Not fulfilling these minimum requirements could result in a rejected invoice and delayed payment. This facility meets Nike’s highest standards of sustainability and helps cater to the increasing demands of the individual consumers and wholesale customers. Nike can create interaction with a high amount of customers with minimum expenses. Relationship Marketing could be difficult to apply for low-risk, low involvement products, since in that area a relationship with the supplier can often hardly add a value to the customer. Permission Marketing: Turning Strangers Into Friends And Friends Into Customers. Moreover a company overview of Nike is given. Assign field managers: Nike assigned field managers to the various regions. Diversification: Diversification is the least significant in Nike’s intensive strategies for growth. The largest factory supplied 9% of Nike Footwear. Invoices over $5,000 USD must be submitted with the 10-digit Purchase Order number provided by your Nike contact. In order to motivate the employees, Nike helps them to build successful careers through constant training and development, improving management development, and welcoming ideas (Nikebiz.com, 2012). For suppliers ineligible to use Coupa eInvoicing, Nike uses standard mail and email (preferred) to receive invoices. 3.2 Knowledge Relationship (R21) Yet, between the early 1990s and 2005, Nike went from denying responsibility for inhumane conditions in its factories to leading other companies in disclosure. Relationship marketing is most qualified for high involvement products (Godson, 2011). Payne, A., Christopher, M., Clark, M. & Peck, H. (1995) Relationship Marketing for Competitive Advantage. Michael Moore's ongoing crusade against corporate greed won him an audience with big, bad Nike. Due to that, the focus of this paper is on the two diffuse groups anti-sweatshop organizations and environment protection organizations. See Nike's Code of Conduct. None accounted for more than 10% of Nike’s entire production. Harlow: Financial times Prentice Hall. Your roleManagerStudentResearcherSustainability centreMedia, TopicsUnderstanding the business case for sustainabilityCommunicating sustainabilityBuilding sustainability into strategyMaking operations more sustainableCollaborating beyond your organizationTackling social and environmental issuesCovid-19, Content typesReportsArticlesCase studiesPodcastsVideosTable of Contents, Understanding the business case for sustainability, What Business Professors Are Saying about COVID-19, Advance Supply Chain Sustainability through Supplier Development, How Sustainable and Circular Procurement Can Take Off. Beth Enslow. 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*. It is generally seen as a negative thing, since it is not the company anymore that shapes the brands image but the customers (Wipperfurth, 2005). Within the last two decades relationship marketing has become a widely accepted marketing paradigm (Finne and Grönroos, 2009) but It is debatable whether relationship marketing is a fundamentally new marketing approach or if it has been part of the traditional marketing theory all along (Payne, 1995). However, in recent years, it has invested a lot in CSR and sustainability. The majority of Nikes customers are considered to be on the customer, client and supporter stage but Nike has customers on all stages of the ladder. Nike’s strong, long-term relationships with suppliers help us create innovative product responsibly. Establish a global database: Head office developed a comprehensive database to help track the global supply chain and access audits conducted in the field. The costumer benefit from outsourcing the manufacturing is that lower production costs may result in lower retail prices. Phil Knight’s successor and current Nike CEO Mark Parker describes sustainability as a crucial part of Nikes growth strategy. Relationship Marketing Theory and Practice. Our Research. My first LinkedIn article ,please like, and give your valuable feedback. Invoices under $5,000 USD must be submitted with the contact name and email address of your Nike contact or the 10-digit Purchase Order number provided by your Nike contact. Normative groups are stakeholders that have authority to withhold resources and take actions. Nike emphasis their employers from the brand management department to the retail staff to tell customers the story about Nike. Viral marketing is an effective way of interacting with customers. Other than taking a simple buyer and seller approach, this model meet the requirements of relationship marketing by taking a constellation approach (Godson, 2011).