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how does nike communicate with suppliers


“Bring inspiration and innovation to every athlete in the world”, Nikes goal is ” to carry on a legacy of innovative thinking, whether to develop products that help athletes of every level of ability reach their potential, or to create business opportunities that set Nike apart from the competition and provide value for our shareholders.”. We work with suppliers who share our commitment to respecting the environment and people.

The involvement with clothing is dependent on the degree to which the costumer uses clothing as a means of self-expression (Michaelidou, 2006). The mega relationships and nano relationships comprise non- market relationships that have in indirect effect on the efficiency of the market relationships. It takes care of the entire procurement process from supplier selection to contracting with the right suppliers for the right goods and services. It also notes how Nike measures compliance against the set standards. Twitter appears to be the core platform in which Nike used to communicate important information to customers and the public. The opposite is true: Nike made a boast of avoiding millions of tons of greenhouse gases. New products are by nature in the introduction phase of the product life cycle. Nike realized that outsourcing the manufacturing reduces costs (Crain, 2008). The 30Rs of relationship marketing model is applied to underpin the four partnership model. Michael Moore's ongoing crusade against corporate greed won him an audience with big, bad Nike. The code of conduct lays down the minimum standards that each of its suppliers factories and facilities are required to meet. 5.2 Celebrity Endorsement It has improved Nike’s ability to deliver premium products to the customers faster and more efficiently. They are also referred to as internal relationships (Gummesson, 2008). Instead of ignoring the allegations of Greenpeace or avoiding responsibility, Nike gave in. What can other organizations take from Nike’s experience to avert their own supply chain crisis?

At each of the four partnerships an exchange takes place and all of them affect the effectiveness of a company. Strong human resources policies and capable, qualified management are essential for all Nike suppliers to be compliant with the law and our Code Leadership Standards.
Nike carries out regular audits of its supplier factories to ensure suppliers remain compliant.

Nike Inc 's Suppliers realized sales deteriorated by -7.22 % compare to the same quarter a … The FLA Reaccreditation Report can be found here.

Sneakerfreaker.com (2012). These monitoring and enforcement systems created confidence internally, which was necessary before releasing the list externally in 2005.

On nikeblog.com, customers can upload reviews on Nike sneakers and engage in discussions about Nike related topics. 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. For example, the company integrates cutting-edge designs for its shoes. Principles of marketing, Boston: Pearson, 14th edition, Marketing Horizonte (2011). Brand hijack occurs when a customer commandeers a brand and drives its evolution. Nike signed him to a $105 million agreement, one of the largest endorsement deals ever (Roll, 2012). This added customer value can occur in the form of more trust to a company, a more customized service, a personal touch and the possibility to better answer customers’ expectations. Many of these contract manufacturers own several factories. Instead of merely focusing their marketing activities on the acquisition of new customers, companies need to balance between customer retention and acquisition (Godson, 2011). We also have tools that assess growth and potential in leadership, operations, innovation, product creation, and sustainability. 5.1 Corporate Social Responsibility Last accessed 09.03.2012 at http://www.businessweek.com/ magazine/content/06_30/b3994068.htm, Bloomberg BusinessWeek (2006). Establish a global database: Head office developed a comprehensive database to help track the global supply chain and access audits conducted in the field. To ensure that its suppliers follow the best practices, Nike has set a code of conduct and Code Leadership standards for them. Its suppliers are required to declare that they are sourcing materials from vendors which are Nike code of conduct compliant and comply with the local and national labor laws. As part of Nikes corporate social responsibility, Nike has also initiated a charity campaign called RED that aims at fighting AIDS in Africa. In the late 1990s, Nike reduced costs and the selling prices of its athletic shoes and other products. The objective is to make to customer want to become part of the story, which of course can only be achieved by buying Nike products. Last accessed 11.04.2012 at www.nikebiz.com/ crreport/content/environment/4-4-0-case-study-greenxchange.php, Nike (2012). Use of Technology. Finally, staying loyal to their celebrity endorsers during their difficult times is well in line with Nikes marketing approach of telling a story. Rethinking marketing communication: From integrated marketing communication to relationship communication. The most important stakeholder for most businesses is the customer.

Apart from having established the standards for conduct for the suppliers, Nike also ensures compliance using various methods. Normative Groups that set the conditions under which Nike operates are for instance governments. Three years ago, Nike opened its North America logistics campus in Memphis, Tennesee.

Nike used internet marketing, email management technologies, and using broadcast and narrowcast communication technologies to create multimedia marketing campaigns. When applying Relationship Marketing it is important to add value for the customer, otherwise he would not have a reason to enter a relationship with an organization.

By implementing the new supply chain computer system, Nike made the interaction with its suppliers and retailers more efficient. 1.3 Company Background, 2. How to communicate better with your suppliers. 2–3, April–July 2009, 179–195, Godin S. (1999). Last accessed on 03.05.2012 at http://www.marketing-horizonte.de/2011/06/wenn-liebe-unter-die-haut-geht%E2%80%A6/nike-tattoo-neu/. Still Nike needs to put maximum effort on managing the relationships to diffuse groups, and not to give them a target. This strategy facilitates the company’s growth by targeting new markets or market segments. Nike considers itself as being a marketing company, not a producing company.

Phil Knight mentioned in the interview that he didn’t care about the fact that 14year old children working in Nike factories in Indonesia. An important celebrity endorsement was the collaboration with golfer Tiger Woods. The Nike brand, with its distinct V-shaped logo, quickly became regarded as a status symbol in modern urban fashion and hip-hop fashion due to its association with success in the sport. The fact that a special slang term evolved for its die hard customers underpins Nikes strong brand. None accounted for more than 10% of Nike’s entire production. Compliance. NIKE first held a formal multi-stakeholder forum for feedback on reporting in February 2004.

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