As the CEO of a company, how likely would you be to launch a campaign around a hot-button topic? Explain the pros and cons.
thomasj113
Week6Nike.pptxCase Study: Nike
Issues-based Campaigns
Issues based messaging
Research from FleishmanHillard shows that two-thirds of U.S. consumers say they have often or sometimes stopped using certain products or services because the company’s response to an issue didn’t support their personal views.
Consumers will reward you for doing the right thing. And they will enthusiastically punish you for behaving otherwise.
Issues based messaging
There’s a link between a consumer’s passion for an issue and her expectation that a brand will do something meaningful to address it.
Racism, gender discrimination and unemployment, are the issues that rank as “extremely/very important” to the kinds of consumers who are most actively engaged with brands.
Issues based messaging
Will your core demographics abandon you for getting involved in controversial subjects? Probably not.
61 percent of those surveyed said that, even if they disagree with a company’s position on an issue of importance, they give that company credit for expressing its views.
If a company's customer base includes millennials, there’s an even higher expectation that it speak out (75 percent).
Issues based messaging
Words aren’t enough; consumers are watching actions.
The research found that 47 percent of engaged customers are less or not at all likely to purchase from companies whose business practices are inconsistent with their CSR promises.
Nike – what’s in a name?
What comes to mind?
Brand attributes?
Brand values?
Brand strategy?
Nike by the numbers
#18 Forbes Most Valuable Brands
INDUSTRY Apparel/Accessories
FOUNDED 1964
EMPLOYEES 74,400
SALES $35.3B
HEADQUARTERS Beaverton, Oregon
Nike’s long history of social ads
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.
Nike’s long history of social ads
Nike's first "Just Do It" spot in 1988 addressed ageism when it featured 80-year-old Bay Area icon Walter Stack, who ran approximately 62,000 miles in his lifetime.
Nike’s long history of social ads
A year later, the company advocated for people with disabilities in a spot starring Paralympian Craig Blanchette.
https://youtu.be/Z0fx8Ez8kMk
Nike’s long history of social ads
What was going on in 1989 with regard to people with disabilities?
During much of the 1980’s, the disability community’s efforts in Washington were focused on reinstating civil rights protections which had been stripped away by negative Supreme Court decisions. The longest legislative battle was fought over the Civil Rights Restoration Act (CRRA), first introduced in 1984 and finally passed in 1988.
Nike’s long history of social ads
The Americans With Disabilities Act was introduced to Congress in 1988, finally passing in July of 1990.
Here is a history of the ADA Act:
https://dredf.org/about-us/publications/the-history-of-the-ada /
Nike’s long history of social ads
A 1995 "Just Do It" ad featured openly gay, HIV-positive runner Ric Munoz. AIDS activists applauded Nike for the campaign.
https://youtu.be/NSZCrZ0tij0
Nike’s long history of social ads
1994
AIDS becomes the leading cause of death for all Americans ages 25 to 44.
On February 17, Randy Shilts, a U.S. journalist who covered the AIDS epidemic and who authored And the Band Played On: Politics, People and the AIDS Epidemic, dies of AIDS-related illness at age 42.
On May 20, the U.S. Centers for Disease Control and Prevention(CDC) publishes Guidelines for Preventing Transmission of Human Immunodeficiency Virus Through Transplantation of Human Tissue and Organs.
On August 5, the U.S. Public Health Service recommends that pregnant women be given the antiretroviral drug AZT to reduce the risk of perinatal transmission of HIV.
Pedro Zamora, a young gay man living with HIV, appears on the cast of MTV’s popular show, “The Real World.” He dies on November 11 at age 22.
On December 23, the U.S. Food and Drug Administration (FDA) approves an oral HIV test, the first non-blood-based antibody test for HIV.
The U.S. Department of Health and Human Services (HHS) issues guidelines requiring applicants for grants from the National Institutes of Health (NIH) to address "the appropriate inclusion of women and minorities in clinical research."
Nike’s long history of social ads
On February 23, Greg Louganis, Olympic gold medal diver, discloses that he is HIV-positive.
In June, the U.S. Food and Drug Administration (FDA) approves the first protease inhibitor. This ushers in a new era of highly active antiretroviral therapy (HAART).
Eric Lynn Wright, a.k.a. rapper Eazy-E, died on March 26 from an AIDS-related illness one month after being diagnosed.
On June 27, the National Association of People With AIDS (NAPWA) launches the first National HIV Testing Day.
On July 14, the U.S. Centers for Disease Control and Prevention(CDC) issue the first guidelines to help healthcare providers prevent opportunistic infections in people infected with HIV.
President Clinton establishes his Presidential Advisory Council on HIV/AIDS (PACHA). The Council meets for the first time on July 28.
On September 22, CDC reviews Syringe Exchange Programs -- United States, 1994-1995. The National Academy of Sciences concludes that syringe exchange programs should be regarded as an effective component of a comprehensive strategy to prevent infectious disease.
President Clinton hosts the first White House Conference on HIV/AIDS on December 6.
By October 31, 500,000 cases of AIDS have been reported in the US.
Nike’s long history of social ads
Nike touched on gender issues again in 2012 with its "Voices" ad, which celebrated the 40th anniversary of Title IX.
https://youtu.be/rK9lLqASGDY
Nike’s long history of social ads
Nike released the "What Will They Say About You?" ad in 2017, which featured five Middle Eastern women pushing social norms to succeed in sports like boxing and skateboarding.
https://youtu.be/F-UO9vMS7AI
Nike’s long history of social ads
https:// www.aljazeera.com/indepth/features/2017/03/eu-hijab-ruling-affect-muslim-women-170316073040916.html
https:// www.theguardian.com/commentisfree/2017/mar/15/hijab-ruling-muslim-women-religious-identity-european-court-of-justice-resistance
Nike’s long history of social ads
https://www.facebook.com/SportsIllustrated/videos/308607159930701 /
2016: Police Brutality Sparks Outrage
The Black Live Matter campaign began in 2012, reaching critical mass in 2016.
https:// www.abc.net.au/news/2016-07-14/black-lives-matter-timeline/7585856
Black Lives Matter Goes “Global” in 2016
https:// www.buzzfeednews.com/article/susiearmitage/2016-was-the-year-black-lives-matter-went-global
Raising awareness
High profile athletes have previously used their platform and status to raise awareness to issues affecting minorities in the U.S.
NBA players include Dwyane Wade, Chris Paul, LeBron James and Carmelo Anthony
Raising Awareness
Kaepernick was the first NFL player to kneel during the national anthem before games in 2016 to protest racial inequality and police brutality. Critics saw the protest as disrespectful to the military, with President Donald Trump calling for players who protested during the anthem to be fired.
Taking a stand…
Coliln Kaeperick began sitting during the national anthem in the 2016 pre-season.
"I am not going to stand up to show pride in a flag for a country that oppresses black people and people of color," Kaepernick told NFL Media in an exclusive interview after the game. "To me, this is bigger than football and it would be selfish on my part to look the other way. There are bodies in the street and people getting paid leave and getting away with murder."
Taking a stand, whatever the cost
"This is not something that I am going to run by anybody," he said. "I am not looking for approval. I have to stand up for people that are oppressed. ... If they take football away, my endorsements from me, I know that I stood up for what is right."
Initially, the NFL response was supportive
The 49ers issued a statement about Kaepernick's decision: "The national anthem is and always will be a special part of the pre-game ceremony. It is an opportunity to honor our country and reflect on the great liberties we are afforded as its citizens. In respecting such American principles as freedom of religion and freedom of expression, we recognize the right of an individual to choose and participate, or not, in our celebration of the national anthem."
Niners coach Chip Kelly told reporters Saturday that Kaepernick's decision not to stand during the national anthem is "his right as a citizen" and said "it's not my right to tell him not to do something."
Taking a stand by taking a knee
By the beginning of September 2016, Kaepernick was kneeling instead of sitting during the national anthem — he wanted to clarify that his protest was not about disrespecting the U.S. military.
Kneeling as an expression of reverence and submission. as a mark of respect.
Shaping the messaging
The history of the National Anthem at sporting events
It is a tradition in the United States to play "The Star-Spangled Banner", the national anthem, before sporting events.
According to the United States Code, those present should stand at attention with right hand over heart.
It's noteworthy, this tradition only acquired widespread practice after the year 2001, while National Football League (NFL) players were not mandated to be on the field for the playing of the national anthem until 2009.
In 2016 the NFL stated that "players are encouraged but not required to stand during the playing of the National Anthem"; its game operations manual reads that players "should stand" for the anthem.
The people of the United States are divided on the intended meaning of the anthem. Some believe it salutes military and police officers who have died on duty; for others, it honors the United States generally.
Between 2012 and 2015, the Department of Defensegave $6.8 million to teams across all major sports in exchange for holding various military and patriotic events at their games, including the performance of the national anthem.
Shaping the messaging
"After hours of careful consideration, and even a visit from Nate Boyer, a retired Green Beret and former NFL player, we came to the conclusion that we should kneel, rather than sit, ... during the anthem as a peaceful protest," said Eric Reid. "We chose to kneel because it's a respectful gesture. I remember thinking our posture was like a flag flown at half-mast to mark a tragedy."
Groundswell of support
Dubbed the # TakeAKnee movement, the silent act of protest quickly spread to include members of the Seattle Seahawks, the Denver Broncos and other NFL players, plus female soccer star Megan Rapinoe, high school athletes and more. Some people also chose to stand and link arms instead of kneeling.
Megan Rapinoe, the national team soccer player, knelt during the national anthem before a game between the United States and the Netherlands on Sept. 18, 2016.
Members of the Miami Dolphins knelt during the anthem before a game against the New England Patriots in 2016.
Blackballed
In March 2017, Kaepernick opted out of his contract with the 49ers. The quarterback hasn’t been hired by another team since — despite, as Sport’s Illustrated has noted, the fact that he threw 16 touchdowns and only 4 interceptionsthis link opens in a new tab in 2017.
Trump weighs in
, President Donald Trump weighed in on the protests in September 2017 with a series of tweets, stating — among other things — that NFL owners should fire players who do not stand for the anthem, as it is disrespectful to the American flag and military.
During a rally speech in Alabama that same month, Trump told the crowd, “Wouldn’t you love to see one of these NFL owners, when somebody disrespects our flag, say, ‘Get that son of a bitch off the field right now. Out, you’re fired.’ “
Current Situation
Colin Kaepernick, the former San Francisco 49ers quarterback — and leader of polarizing protests during the national anthem — has not played since 2016, when he opted out of his contract with the San Francisco 49ers.
He has since accused team owners of collusion to keep him out of the league.
Recent settlement reached for under $10 million
Labor Day 2018 It all started with a tweet…
The print ad
The brand's new ad features a close-up of the former NFL quarterback Colin Kaepernick with the words "Believe in something. Even if it means sacrificing everything." The reference to sacrifice most likely links Kaepernick's going unsigned in the NFL to his kneeling during the national anthem, which he did in 2016 to protest racial injustice and police brutality.
BIG STATEMENT
The Actual Commercial
Nike released a commercial narrated by Kaepernick that features a wide range of athletes, including inspirational amateurs, Serena Williams, and LeBron James.
While the ad shows essentially all the athletes playing sports, Kaepernick appears only in the final seconds. He is wearing not football gear, but a turtleneck and a tan coat.
Why?
The Actual Commecial
Results…
Nike and its ad were top-trending terms on Twitter on Monday when the ad was tweeted by Kaepernick.
Nike has already seen more than $43 million worth of media exposure, nearly $19 million worth of which was positive, according to Apex Marketing Group data reported by Bloomberg.
Results
Shares of the sneaker giant fell more than 2% in early trading Tuesday following the former quarterback's tweet
Nike Loses $3.75 Billion in Market Cap After Colin Kaepernick Named Face of ‘Just Do It’ Ads
It's not clear how much of Tuesdays' decline was actually related to the backlash. Other sneaker companies including Adidas were down similar measures thanks ongoing trade war negotiations between the White House and other countries.
Results
Trump famously tweeted that Nike is getting absolulety killed, but…
Apex Marketing Group data reported by Bloomberg found that the overall social-media sentiment in the 24 hours after the new Nike campaign's unveiling was much more positive than negative.
A few weeks later…
The $6 billion increase in overall value that Nike has experienced since Labor Day 2018 clearly overshadows their efforts (though to be clear, the US Open — which concluded about a week after the ad was released — and the official start of the NFL season have been known to drive Nike sales too).
Backlash
This week, some have threatened to boycott Nike and destroyed its products in images posted to social media.
Boycott Backlash
The boycott threats have died down faster than past comparable calls, according to Tickertags, a firm that analyzes social media for frequency of keywords.
"From a broader perspective, mention frequency of the tag [boycott] is showing a noticeable spike in the near term, but falls short of other recent boycott movements," Tickertag analysts wrote in a note.
NFL Response
"The National Football League believes in dialogue, understanding and unity. We embrace the role and responsibility of everyone involved with this game to promote meaningful, positive change in our communities," the statement read.
"The social justice issues that Colin and other professional athletes have raised deserve our attention and action."
NFL Response
In July of 2018 the l eague suspended a new rule owners had passed in the spring that said players on the field must stand for the national anthem. If players did not want to stand, they could remain in the locker room.
Following outrage over the rule and possible punishments, the league and players union agreed to suspend the rule and come up with a different policy. While both sides have said they continue to work on it, a new rule isn't expected by the start of the season.
Calculated Risk
Around 67% of Nike's customer base is younger than 35, according to NPD Group data reported by Bloomberg, and as a group it's more ethnically diverse than average.
Younger customers are more likely to expect the brands they buy from to take a stand as Nike just did, with 60% of millennials identified as "belief-driven buyers" globally, according to a 2017 study by Edelman.
In fact, half of all customers in the survey said they bought based on belief.
Calculated Risk
"We believe Colin is one of the most inspirational athletes of this generation, who has leveraged the power of sport to help move the world forward," Gino Fisanotti, Nike's vice president of brand for North America, told ESPN.
"We wanted to energize its meaning and introduce 'Just Do It' to a new generation of athletes," Fisanotti said.
Fisanotti said the new version of the campaign is meant to specifically speak to 15- to 17-year olds.
What the experts said…
Nike's campaign will generate both attention and discussion which is, arguably, one of its central aims," Neil Saunders, the managing director of GlobalData Retail, said in a note on Tuesday. "However, it is also a risky strategy in that it addresses, and appears to take sides on, a highly politicized issue."
He added: "Nike likely weighed the risks beforehand but, in our view, while it is noble to take a stand on something, it is also commercially imprudent to dash headlong into a very sensitive issue which polarizes opinion."
By featuring Kaepernick alongside a wide range of inspirational athletes but not featuring footage of the polarizing protests, Nike seems to be getting the best of both worlds with the Kaepernick ad.
A thought on timing…
Several months before its hugely successful Colin Kaepernicknarrative, which bowed in summer 2018, Nike was enmeshed in scandals.
Senior executive after senior executive left the company in March and April, with no official statement from Nike. Reporters had to dig to unearth the story.
It came out that Nike harbored a sexist culture that not only disrespected females, it also hurt their chances of rising up the ranks. Adding to that was a lack of ethnic diversity in Nike’s higher levels.
A thought on timing…
The situation started to come to light when word leaked about that a group of frustrated female employees organized a survey about Nike's treatment of women. A package containing completed surveys landed on Nike CEO Mark Parker’s desk on March 5. Not long after, male heads started to roll. Trevor Edwards, considered Parker's heir apparent, was among those who departed.
Nike said next to nothing about all this. Then, in April, a memo that Nike H.R. chief Monique Matheson wrote to employees was leaked to prominent news outlets. The memo whacked Nike's record on diversity. In May the NY Times had enough material to go in depth with a story. It wasn't pretty.
https:// www.nytimes.com/2018/04/28/business/nike-women.html?nl=top-stories&nlid=60280290ries&ref=headline
30th Anniversary of “Just Do It”
Nike doesn’t always hit the right note…
The Oregon-based sports brand ditched all-star quarterback Michael Vick after he was sent to prison in 2007 for his involvement in a dog-fighting ring where Vick admitted to hanging and/or drowning dogs as well as abusing and torturing them. In a perplexing twist, however, they re-signed him in 2011, almost immediately after his release and much to the dismay of animal rights campaigners.
They also stuck with Tiger Woods during the very public breakdown of his marriage due to numerous infidelities, even taking the provocative step of running a campaign with the knowing tagline “Winning takes care of everything.”
Starbucks… lukewarm
An infamous Starbucks campaign in 2015 called "Race Together" encouraged baristas to discuss race relations with customers when they're ordering or picking up their drink. Though some saw the merit in the attempt, the campaign was panned by customers of all stripes, and it confused many employees.
The objective
"help foster empathy and common understanding in the country" as "the country faces ongoing racial tension."
The memo…
Starbucks… lukewarm
Baristas were asked to write the slogan #racetogether on drink cups
The company was accused of using racial tension to sell coffee
But in the end it came down to logistics: Adding a few seconds to a customer's wait isn't just an inconvenience. It hurts business.
Boycott fever
two calls to boycott Starbucks — one that arose after two black men were arrested in a Philadelphia store and one that was related to the company's pledge to hire refugees— did not materially affect sales, but didn’t help the company’s reputation.
Target… missed the mark
In 2016, Target's opposition to a state bill sparked a nationwide boycott. It publicized its longstanding policy of allowing customers to use the bathroom that fits their gender identity. The post was in response to a North Carolina bill that aimed to legislate bathroom use in public places and require people to use the gendered bathroom that corresponded to their birth certificate.
The boycott, which was led by conservative groups angry at the policy, resulted in millions of lost sales for the company, mostly in stores in southern states. CEO Brian Cornell told staff that the retailer did not run a thorough enough review of the risk associated with such a public statement, according to the Wall Street Journal.
Official statement
"We welcome transgender team members and guests to use the restroom or fitting room facility that corresponds with their gender identity," the retailer said in the statement. "Everyone deserves to feel like they belong. And you'll always be accepted, respected and welcomed at Target."
Inclusive logo
Feedback… positive
"You have, again, shown that your stores are inclusive and meant to be a safe haven, and I intend to repay your loyalty with my own.
"I want to tell you that I will forever be a Target shopper."
"Thank you for always being a place I have felt welcomed.”
Feedback…negative
"I am appalled by your decision," wrote one customer. "Shame on you."
Dozens said they would never shop at Target again as a result of the policy.
More than 182,000 people signed a pledge to boycott Target.
Compromise
Target is following in the footsteps of Kroger, which also recently clarified its policy on gender-specific bathrooms.
A Kroger in Athens, Georgia, posted a sign on its bathroom door saying: "We have a UNISEX bathroom because sometimes gender specific toilets put others into uncomfortable situations."
Homework
Is using a hot button issue a good foundation for a campaign? If you were the CEO of a consumer product company like Nike, would you endorse an issue-based campaign? Explain your answer from a case study analysis perspective. Your response should also point to some element of communication theory.
Case Study Analysis
What was the problem?
List any outside concepts/theories that can be applied.
Qualitative data
Quantitative data
What is your analysis?
What alternative measures, actions, approaches could have been used?
How would you have approached this problem?
