how does nike communicate with suppliers

2.2 The 30Rs of Relationship Marketing, 3. Its strategic sourcing initiatives have also helped the brand reduce its carbon footprint. Morgan, R. and Hunt, S. (1994) ‘The Commitment–Trust Theory of Relationship Marketing’, Journal of Marketing, 58 (Oct.), 20–38. Through our strategic sourcing initiatives, we have also begun to reduce Nike's footprint and lessen our impact. Over 90% of Nike footwear and branded apparel is made by factory groups that we have worked with for over 15 years. Diffuse groups are aiming at protecting the rights of certain interest groups and include environmentalists, communities and special interest groups, public opinion leader and campaigning journalists (Godson, 2011). The ladder of loyalty is a model used to evaluate customer’s levels of involvement with a company and its products and to delineate the transition from transaction marketing to relationship marketing. External Relationships (Mega Relationships) - It only takes five minutes Last accessed on 03.05.2012 at, (2008). 124 footwear factories located in 13 countries produced Nike footwear in 2018. To find out more about cookies or to manage the usage of cookies, please read our privacy policy: Public Relations, Advertising, Marketing, Social Media. The classic market relationships and the special market relationships represent market relationships mainly with an organizations customers; suppliers and competitors. In April 2005, Nike surprised the business community by releasing its global database of nearly 750 factories worldwide. This strategy facilitates the company’s growth by targeting new markets or market segments. We work with suppliers who share our commitment to respecting the environment and people. Its sourcing strategy focuses on suppliers and prioritises them who have shown leadership in CSR and sustainability and who offer more than the minimum quality standards. Due to that, the focus of this paper is on the two diffuse groups anti-sweatshop organizations and environment protection organizations. Nike stayed loyal to Kobe Bryant and was rewarded when Bryant’s athletic performance and subsequent Boy Scout behavior overshadowed his past mistakes (Kotler 2011). 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. Oxford, Oxford University Press. The importance of innovative supply chain management has been highlighted by scholars and researchers for the successful management of businesses in the 21st century. Last accessed 08.03.2012 on: id=3202835, Hopkins, S. Last accessed 09.03.2012 at magazine/content/06_30/b3994068.htm, Bloomberg BusinessWeek (2006). The figure below illustrates Nikes value chain. Nikes marketing activities are mainly revolved around the sponsorship of athletes and athlete’s teams and using top sportsmen as brand endorser. Last accessed 03.05.2012 at,email_signup, (2012). - Completely free - with ISBN A defensive strategy is not a realistic long-term approach. 1.3 Company Background, 2. Nike used internet marketing, email management technologies, and using broadcast and narrowcast communication technologies to create multimedia marketing campaigns. In academic literature this approach is referred to as corporate social responsibility (CSR. Nike is the most popular brand in the sports shoe and apparel industry. Against the backdrop of an increasingly competitive business environment, companies are forced to keep their customers loyal, ensure their satisfaction and find out as much as possible about them (Kotler, 2011). Priest B. The mega relationships and nano relationships comprise non- market relationships that have in indirect effect on the efficiency of the market relationships. In 2004 Nike invested $500 million to implement a new supply chain computer system. In the fiscal year 2017, only 5 of its contract manufacturers accounted for around 69% of its total Nike Brand footwear production. Corporate social responsibility describes a company’s role in society and can be defined as company’s effort to have a positive impact on the public (Kotler, 2012). Due to the fact that viral marketing involves the internet as a medium it can be categorized as an electronic relationship of an organization with the customer. Moreover Nikes extensive use of celebrity endorsement has helped to establish a strong brand identity and brand personality (Roll, 2012). Last accessed on 03.05.2012 at mustreads/read03081.php, Bloomberg BusinessWeek (2006). Knowledge of the customer is valuable in order to identify and select target customers. Nike took a similar approach when Basketball stars and Nike endorser Kobe Bryant was accused of sexual assault. Campaign Magazine (2009). As the figure shows, Nike only manages three stages of its value chain in house: the product development, the marketing and the branded retail stores. The purpose of the department is to create a “deep, credible and authentic connections with consumers, employees and stakeholders the world” ( Word Count: 4888 (Excluding: Tables/Models and References), Alvarez L.S., Casielles R.V., Martin A.M.D. Journal of Marketing Management; Feb2011, Vol. This helps Nike communicate with the customer quickly. The committee concluded that Nike would not receive the credit it craved from the NGO community unless it released the names and addresses of its entire factory database. In this section the subject of relationship marketing is discussed and compared to transaction marketing. 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. The relationship between an organization and its customers is categorized as one of the three classic market relationships described by Gummesson. They exercise their influence on a higher level than the market relationships and set the conditions under which market relationships operate. Last accessed on 28.03.2012 at 1.2 Transaction Marketing vs. There is a global procurement team at Nike to obtain raw materials. 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). The value added for customers is that Nikes products are more in line with its needs. Internal relationship marketing activities are undertaken to improve a company’s performance in the external market. 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*. Last accessed on 28.03.2012 at Several anti-sweatshop organizations such as “United Students Against Sweatshops” criticized Nike for using sweatshops. 2–3, April–July 2009, 179–195, Godin S. (1999). This understanding is utilized to design products which form an integral part of Mike`s value proposition. Instead of merely focusing their marketing activities on the acquisition of new customers, companies need to balance between customer retention and acquisition (Godson, 2011). This shift illustrates how a firm can use transparency to mitigate risk and add value to their business. The gas subsequently escapes into the atmosphere where it stays for 3200 years (Green Peace, 1998). Invoices over $5,000 USD must be submitted with the 10-digit Purchase Order number provided by your Nike contact. Effective 2004, Nike delivers around 300 million products yearly ( and licenses the production of their products to roughly 900 factories (Business week, 2004). Management Decision, Vol. in English literature from BRABU and an MBA from the Asia-Pacific Institute of Management, New Delhi. Last accessed on 26.03.2012 at, Van de Weil M. (2009). Nike has committed itself to the purchase of sustainable raw materials. Sources:, Portfolio Hardcover, - Publication as eBook and book According to Gummesson (2008), the knowledge relationship refers to the way an organization is able to gain knowledge that makes the organization compete more effectively. Roll, M. (2012). Nike manages its relationship with the company’s shareholder through its investor relation department. Together, the three countries accounted for 27%, 22%, and 10% of Nike’s apparel production during the year. This celebrity endorsers shape the public image of Nike. The independent, Industry Central (2012).

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