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Case Analysis of Friendly Marketing Case of Nike

The FMCG companies use communal touch points like festivals or exhibitions to advertise their products and get attention of the customers. They mostly undertake Corporate Sociable Responsibility to enhance their brand image. Some companies like Lifebuoy has undertaken product related sociable campaigns like Swasthya Chetna to to reach the public. Financing sector also take public marketing within their key strategy. This record will be based on the concepts of Social Marketing which is the ongoing adaptation of the traditional business activities made to influence the mark people and the culture to boost their social wellbeing and health. This involves shared exchanges of information for common advantage under voluntary acceptance. (Ferrel, Hartline, 2008)

The goal of this marketing to advantage the modern culture and is dependant on 4p's of marketing combine but the offerings aren't a product but behavioural benefit for the mark population.

Product: This includes the behaviour in line with the needs of the consumers.

Price: This is actually the combined cost of producing the introduction of the tangible costs to aid the change. Eg Cost related to the hospital would be the cost to lease the vans.

Place related cost can be development of the new stations and promotional cost includes the expenditures for sending relevant information using all the available stations. Place: That is related to the availability of the offerings and the programs used to get the response.

Campaign: This can contain the impressive meaning that can make the offerings famous, acceptable based on the preferred programs by the buyer.

Although the purpose of both the strategies (Commercial and Community) is to gain higher market show and goal is to improve the sales of the business more by persuading those to buy the product. Yet, in Community Marketing, the aims to eliminate the -ve thoughts (like smoking or drugs) and work to change the behaviour of the consumers. As this a social side of marketing, it needs complete understanding if the target market, their prospects, and there by changing the (Krishnamacharyulu, 2010 ;Ferrel, Hartline, 2008)

Company Profile

The company Nike Inc. is a USA based mostly firm, and started in a little city called Oregon in 1955 as a distributor organization for shoes and steadily they have become into a multi-product entity with 3000 retail stores working in more than160 countries. The business has obtained big brands like Hurley in 2003 and Umbro in 2008. The business has made very good relationship with over 700 manufacturers especially in Asia (Vietnam, China and Indonesia) (NCC, 2010). The business is using strategic outsourcing so they have got asked the manufacturers to make quality shoes for their customers plus they guide the manufacturers of what they need. Also they have got lot of designers who make progressive designs according to the changing needs of the customers. This strategic outsourcing is the main competency of the organization, they have given the name of Developed Associates to these creation firms who are the actual production products for the firm. (Ferrel, Hartline, 2008) They are suffering from this network with years of experience plus they have high brand value which is difficult to reproduce and this is difficult to be copied by the competition which has made them more successful. The business endorses famous personalities like David Beckham or PADRAIG HARRINGTON and make them their brand ambassador. They add a lot on marketing and advertisements. The business is linked with atleast million workers who are working night and day for the organization and another billions who are buying the product. (Nike Accounts, 2010)

Facebook will be employed by the researcher for this exercise. This company was launched in 2004 and controlled by Facebook Inc. by 2010 it offers over 500 million repeat members plus they spend vast amounts of minutes each day. It had been founded by Draw Zuckerbeg and his category mates. (facebook. com, 2010)

Current Problems & Challenges

The company has been constantly dragged in the controversy of unethical methods and problem with workers in Asian region credited to sweat shop conditions. There's been occurrences within the software of the business like happened with i2 Technologies in 2001, who've developed a resource software for the company because of major problems, many purchases have been booked two times and which includes affected their source orders to the manufacturing products and which resulted in over production. It had been also found that the shoes have to be aired to the clients just to maintain their brand image. The company claimed that they have lost business of over 100 million USD. The problem of workers doing work for Nike is a major challenge for the business. They are not aware of the code of conduct and the professionals induce the employees to work without holiday break.

In another occurrence which affected the supply chain of Nike and therefore the delivery to the clients. Nearly 20000 personnel have protested with reach and they were fired by the authorities against protect, and Nike said there was no firing. (NCC, 2010) It had been also unethical for the company to be in the side lines when the employees were being beaten mercilessly by the authorities. However if the worker struggles to meet the every month quota then there exists deduction of 15-20% from his salary and he has to use the dangerous glue which includes other side effects. Although the management facilitates the labour protection under the law and requested the government to make more favourable protection under the law for the personnel. (Ferrel, Hartline, 2008)

Thousands of personnel went on affect on 3rd Apr, this year for rise in salary, benefits & better working conditions. There was protest among employees who weren't cooperating and although the managers decided to give 5% more salary then also more than ten thousand personnel walked out of the factory. It has damaged the delivery string of Nike. The say was, that the mean supplier is only worthy of 20 cents which is not supplying enough energy to work for long hours. Also the challenging economical conditions of Vietnam might have forced them to improve the voice which is not new in Vietnam as the working conditions tend to be ignored by the firms. (Miglani, 2010) There's been constant hits from personnel, who will work for Nike, like in 1997, 10000 Indonesian personnel went to hit and 1300 in Vietnam also ended working and demand 1cent/hour increase, and they were consistently getting $1. 60 each day that time. In China also similar attacks are normal. (Global Exchange, 2010) Therefore the company generating billions is all obtained by the underage staff and women who are treated by family pets working under unsafe conditions. The business has initiated CSR steps to take care of their factory staff in over 700 factories to stream brand the service and delivery of the merchandise but nonetheless under severe problems.

Methodology

The research is conducted utilizing a focused group contains 15 guys and 10 females using the cultural media like Facebook. The targets of the study area are:

1. To find appropriate conditions for the personnel to enhance their life style.

2. To build up sustainable supply string to minimize the risk of the attacks.

The aims of this research are to find low risk alternatives and finding ways to improve the life and pondering structure of the staff. So the advice So it is vital for the company to understand the issues faced by the staff and in that way they can avert the loss that they face whenever they have punch.

Focused Group & Members Description

Due to restriction of resources only 25 respondents signed up with the research. The ethnic origin of the members was diverse so that views can be taken from different community. The respondents were used formal agreement and their information will stay discreet for confidentiality reasons. To save lots of the time, these were pre educated by email one day before the dialogue. Though it was conducted on Skype software however they were all connected from Facebook. All of them were people over 18 yrs of age.

Procedure

As it's important to pay attention everyone, so the group was divided into 3 sets of 8 each so that it will be easy to discuss and share views and each talked about lasted for 2 hours. The targets were known to the group and track record information was mailed to them, so they are aware of the aims of the social marketing research and can add effectively.

Results

Q1. How do the management of Nike notice the employees condition and change their attitude / opinion about their present conditions?

A1. A lot of the group members arranged and insisted that the code of carry out is not properly used that could be the main reason behind affect. Only 5 Ps out of 7P were talked about as the group thought they cover the main elements of the discussion. Also it was suggested that the human right of independence of talk, work and action should not be prisoned. Even though the company Nike is insisting on max 60 time of work but still the workers must work more hours is unethical. The business has to make certain that the processing units shouldn't seek the services of children for work, or the ladies should not be forced to improve long hours or denied holiday. It really is difficult to main the product quality inspections at the manufacturing devices, also in 700 devices is not simple, therefore the company has to hire special pros who can support the actions of corporate responsibility in every the locations. Aside from sitting and looking forward to the shoes to be shipped the management should find a chance to visiting the manufacturing plant and their administration. This can not only improve the brand image of the company but also will help the units to keep up more self-control among workers. Because of freedom and lack of control from the Nike, the professionals at the making units aren't bothered to care for the workers and pay them less than the minimum wage allowed for the reason that country. It has led to revolt by means of strikes and law enforcement officials action have been used.

Product: It had been also discussed that product has higher level of Carbon, and even though the company is planning to reduce this level but it appears it will require additional time. The dangerous glue employed by the workers is injurious to health and the company must find ways to find healthy glue or more defensive clothes for the employees. As mostly the personnel are women, so that it will influence their future children and their complete family will get affected.

Price: The Nike company is charging huge money from the consumers, and the ultimate workers aren't getting enough money after working all day every day. The company must make stringent rules and should abolish the sealed eyes view of the scenario. As the business has enough buying electric power, so they may have higher control of their manufacturers. According to the Porters 5 causes model, the suppliers have low bargaining ability as Nike is a large company and their turnover is Billions. They may have low switching cost plus they can proceed to other companies. That's the primary reason that suppliers have to listen to the customer (Nike).

Place: The shoes are either available online or are in the warehouse of the business. The company should finances for it at the dealers location that the location is managed by happy individuals, who are satisfied with the working conditions of the organization rather than by the min income as well. So both factors are enough.

People: The company has to find a way to take care of the complaints. This may be the key reason that company Nike isn't that effective in halting the strikes. If indeed they have developed a system where the buyer (NIKE) is prepared of the situation of each processing units, then it'll be possible for the management to be aware of the critical situations of the company, It is imperative to develop a sustainable monitoring system which should be effectively maintained by way of a team of professionals. The business has employed Ersnt and Young to make an unbiased report though it became open public, but it was a good idea to retain the services of them. This will help the company to secure self-employed views and can helpful to device a good strategy.

Process: The companies are quite far away from the real workers. Another limitation are the local managers who's responsible for managing the workers, however they are not aware of the local terms which is another hurdle for the business. The Nike team must make sure that hired managers account be assessed by the Nike organization. This can make the manufacturers appreciated to hire professionals who can understand the local words of the workers. Another important recommendation distributed by the concentrated group is the development of workers empowerment so the workers has the to complaint or aware the management of the Nike of the present situation inside the factory and also will keep the managers on toes. Also the owners of the stock are living over and above the country, which poses huge pressure on the managers to take care of the staff. Nike can issue some words to remind them of every month inspections, that may oblige those to go and see the situation using their company eyes, rather than managers vision.

Q2. What exactly are the barriers of effective supply chain which must be taken good care of. ?

A2. The main problem found by Borris (2004) which includes resulted in more issues is the condition of salary. The staff are given the same wages through the training and continued for longer time than expected. There is no paper work no letter is given for their validated job with the company and this leads to more frustration among workers. The business can simply support with useful payroll system in each products which is not costly and can help everyone to keep up the procedures. The business which is making billions from people working in expanding countries but only less concerned than expected. Another significant problem is the lack of education for effective material managing in the united states. Although Nike has considered steps to boost the criteria of the processing units but this is not sufficient. The business should make provision of at least least wage in the country of procedure, even though Nike is paying good money for each show purchased by the manufacturers, who are not presenting proper salary should face financial repercussions.

Q3: What exactly are the effective marketing messages that ought to be used?

As posting of important is crucial to social marketing process so this question was mentioned to find ways to disseminate the information. (Katz, 1994) The various articles collected during the secondary data collected was shared with the participants, this has also helped the people in the group to share the likeliness of the articles. This also pressed other members in the focused group to send scraps with their friends and family members to discuss this matter on Facebook, five folks in the group are determined that they will use and develop the concept using Facebook.

1. Facebook Ads: This section will be employed by one member to convey the message of bad situations of the personnel and will associate it with his charity organisation and will support the personnel of the manufacturing plant and help those to find better education to improve their standard of living.

2. Facebook Groups: Most of us joined the facebook group made one of the associates to share the knowing of workers condition and role they play to make effective supply string. . This Group will be shared by all the customers of the emphasis group and it'll have regular updates from everybody included to share the latest method available or any other way to support the cause.

3. Facebook Reports Feed Service: This can be used to market the tiny website that will post recent updated on the personnel situation not only of Nike but just about everywhere as effective labour methods can support better resource chain.

4. Facebook Admirer Site: A admirer page was decided to be produced at a later level when there will be lot of associates in the group and can allow to get freedom of voice and will also to make the community which cares for the staff in every manufacturing plant, it is expected that the labour unions might become a member of the initiatives.

Suggested Recommendations

This section will present the recommendations by

Segmentation Strategy: The company should portion in the following categories:

1. Making Owners: This will likely contain around 700 to 1000 owners who should be trained how to manage the labor force to help the company have better resource chain and workforce.

2. Manufacturer Managers: The managers are the key source so you can get things done, they are really in charge of good performance and also for bad performance. There could be few Older and Assistant Managers in each company. If they are sharp then your workforce may also be razor-sharp. So if the managers and assistant managers become very qualified then their management will be far more more advanced than support any big resource chain. This can also help the manufacturing facility to gain competitive advantage among other factories.

3. Workers: These are main way to obtain wealth for just about any company and if the business cant take care of the workers, on which they have invested a great deal on training them, then your company not only have its supply chain suffer but additional cost and delay in arrange more better manufacturers who need further training and support, that may have an impact on the already shaken supply chain. After they are capable to support the company with better education, it will eventually help Nike who is already presenting the loaf of bread and butter for over million workers, if they can give million to endorsers, they should also take care of the poor family members who are helping to make it happen.

(Sage, 1998; Borris, 2004)

Targeting: The business should follow the multi-segment way and take develop specific programs for each group.

1. Manufacturers: There should be meeting every six months plus they should learn to fulfil their requirements as the dog owner often they cant source to the company.

2. Professionals: There should be regular workout sessions as to that they should react with the fellow personnel, also they need to be emphasised on how to speak the neighborhood language. They can be asked to the offices in USA to provide global visibility and how the international companies are working round the world. They may also be put for programs giving them higher education so they can perform better at workplace and also in their personal life. (Katz, 1994)

3. Individuals: They want education and exposure concerning who they should ask their privileges and really should help the Nike company have better degree of Supply String, although there are managers who visit the company from Nike to train them, but there should also be a device to suggest the business to solve the main problems, except offering only deadlines.

(Sage, 1998; Borris, 2004)

Ethical Considerations

The company has made serious efforts to increase the standard of living, their corporate insurance plan should be to improve the working environment for the workers and also aiding them with an increase of computers and library at the job place. (Katz, 1994) Their involvement to aid the employees for better living will place an example for other companies. (Ferrel, Hartline, 2008)

Conclusion

To implement of this social campaign, the merchandise is the behavior packaged to meet up with the need for better lifestyle of the workers who are influencing the supply string, along with providing the conditions in the environment to develop sustainable supply chain for the company. The price tag on this developed behaviour is the inconvenience caused to the management of the Nike Inc. as they are busy with their own work pressure and economic recession & put into this severe market conditions are problems of the staff with their manufacturers who aren't directly employed by the business. Good understanding between the workers, professionals and the owners can help reduce the affect problems and will help develop better working environment for the employees. That is one of the main element strategies which should be used relating to cultural marketing principles. This will help the business has better labor force who is pleased with the employer and will work effectively resulting in no attacks and development of lasting supply string for the company.

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