NIKE AND THE SWEATSHOP SCANDAL
QUESTION 1
a. Nike is using four Ps (product, price, promotion and place) strategies to target customer’s motivation, abilities and opportunities. Company offers wide range of high quality products like clothing, shoes and other sports equipment by using advanced technologies to improve customer experience. Company offers high quality products to increase customer’s motivation to purchase (Prathap, 2021). Nike’s premium products prices are very high but company offers many options in different prices. For example, Nike’s Jordan shoes are expensive for middle class people but company also offers affordable products like Nike pro gear. Affordable prices of products enhance ability of customers to buy branded products.
Thus, Nike by following differentiated pricing attracts the ability of consumer towards buying the products. Further, organisation sells their products on both mode like online or offline stores. Online selling of products provides opportunities for customers to buy products by using attractive offers. Nike makes attractive advertisements by featuring athletes to build trust of customers. Also, company sponsors many sports events like FIFA world cup and The Olympics for global exposure. These events increase visibility of brand in international market. After sweatshop controversy, Nike took some actions to ensure accountability among customers like third party audits. Despite of high quality products, Nike’s product packaging is so attractive to attract new customers in market.
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b. Nike’s efforts to offer high quality products in affordable prices are highly effective because after sweatshop controversy, Nike took so many effective efforts to enhance brand reputation in market. High quality products are effective for sports person because they need good equipments to enhance their performance. Nike offers comfortable shoes and clothes to boost performance athletes in games. Further, if products prices are affordable then people prefer to purchase branded clothes and shoes instead of local brand products.
However, company faced challenges because many local companies make copy of Nike’s product which decreases their sales and demand. Besides this, Nike effectively improves their digital marketing strategy to enhance their presence on social media to attract new customers by branding their products. Online presence of brand is beneficial and effective for them to reach maximum customers in limited time. Despite of this, supply chain disruptions impacts products availability at offline stores of brand. Company should improve their supply chain strategy to ensure on time delivery of products to enhance customer satisfaction (Liu, Ma and Zhou, 2021). Company can increase their offline outlets in dense areas of international and national market. If company is able to provide on time delivery, help to increase their brand reputation in market.
QUESTION 2
a. Nike launched new advertising campaign named “Why DO It?” to connect with young athletes. Company featured athletes from different sports and backgrounds in campaign film.
Source: (Nike, 2025)
b. Nike uses creative and innovative strategies to make attractive slogan and jingles to enhance memory retention of customers. For example, Nike’s slogan “Just Do It” is attractive tagline which motivates to put efforts to achieve goals. Further, company shows authentic and real life stories of athletes in their ads to attract attention of customers (Rybaczewska et al, 2020). It helps to build emotional connection with customers and motivate athletes to achieve more goals in their careers. Brand tagline needs to be attractive so that customers remind them by their tagline. Further, company reintroduces their slogan “Just Do It” to “Why Do It” to again attract new customers.
Further, Nike is building brand association by leveraging consumer knowledge related to their needs and preferences. If company understands demand of customer like price range, quality of product, mode of buying and source of interaction, then they can easily use this knowledge to make effective strategy. When brand is able to fulfil the demand of customers then it helps to build trust and brand reputation in market (Choudhary and Sahu, 2023). Nike tries to build emotional connection with customers by launching attractive campaigns. Consumer knowledge helps Organisation to make strong brand association of their loyal customers to represents themselves as a big reputed brand.
c. Nike’s advertisement campaigns are effective because they are attractive to grab attention of audience. Company featured famous athletes from different backgrounds and sports to share their stories with audience to resonate with them. Nike promotes diversity and inclusivity in their campaigns which shows their social responsibility toward young generation. By innovative ads, organisation tries to share inspiring stories of athletes with young generation (Farooq, Shabir and Hussain, 2020). Social media platforms like FaceBook, Instagram and others increase the effectiveness of campaigns because now it reaches to maximum audience all around the world.
Every campaign of Nike have social message for the society which shows their interest in social responsibility. When company featured famous athletes and influencers in their ads, it increases the authenticity of advertisement. Organisation tries to build emotional connection with audience through emotional storytelling. Digitalisation increases reach of audience because now any campaign get instant virality on social media platforms. Advertisement campaigns of Nike sparked debates and intense discussion on social media which lead to high engagement of audience. Besides of sports, Nike should expand their campaign areas by discussing social issues of society. Organisation can feature backward groups of society like LGBTQ+ in their campaign to spread positive message in society.
QUESTION 3
a. Nike’s “Why DO IT?” Campaign advertisement link (Nike, 2025)
b. Nike used high-effort strategies in their “Why DO IT?” campaign to influence consumer attitudes to make decisions for purchase. Company’s main target for this campaign is GenZ audience because they are more interested in logical things. Based on the high-efforts strategy, Nike made careful planning for extensive management to target audience through different marketing channels. Company made advertisement video to promote their campaign because they understand that visual are more effective than photos or text. Organisation showed their different products in campaign video where athletes worn different shoes and equipment while playing different games.
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By this campaign, Nike uses media marketing strategy to attract new generation by sharing stories of inspiring sports person. On the other hand, for managing the low-effort strategies, Nike used attractive visuals in video like different playgrounds and themes to increase the interest of audience. Company featured so many athletes in video from different backgrounds and sports like Carlos Alcatraz (Tennis), Rayssa Leal (Skate), Shreyas Iyer (Cricket) and Saquon Barkley (Football) (Nike, 2025). Organisation presented athletes from different background to inspire new young generation. Company used humour based innovative approach to made memorable campaign video which has long term impact on audience.
c. Attitude strategy of Nike is effective because they are successfully able to influence customer’s attitude to purchase their new products. Featuring different athletes in advertisement campaign increase the attraction of fans. Many fans blindly follows their ideal model, for example, if any cricketer wear specific brand shoes then fans also admire them and wear same brands products. Besides of positive impact of attitude strategy, company needs some improvement in their high and low efforts in strategies. Organisation should conduct market assessment to understand the demand of customers for particular products. Company should raise social issues in their campaign to attract attention of all groups on social media (Eyada, 2020).
Nike can improvise their marketing strategy to ensure effective use of resources in marketing. Firm can make mix marketing strategy to target audience on global level by using various channels. Further, company can feature customers in campaign who contributes in social welfare to recognise their work and inspire others in society. Beside of this, Nike should make personalised strategy to build strong reputation among new generation audience. Company can increase investment on campaign marketing to make more creative and innovative videos to enhance customer engagement. Nike can use technologies like artificial intelligence, virtual reality and augmented reality to make innovative campaign videos.
References
- Choudhary, P., & Sahu, K. K. (2023). Managing and Shaping Brand Associations to Ensure Positive Alignment with ‘Brand Image’: Narrative Synthesis. International Journal of Physical Education, Sports and Health, 10(3), 112-117.
- Eyada, B. (2020). Brand activism, the relation and impact on consumer perception: A case study on Nike advertising. International Journal of Marketing Studies, 12(4), 30-42.
- Farooq, U., Shabir, G., & Hussain, S. (2020). Advertisement Campaigns and Human Behavior. Paradigms, 14(1), 58-65.
- Liu, X., Ma, L., & Zhou, Y. (2021, September). Supply Chain Management of Nike. In 2021 International Conference on E-Commerce and E-Management (ICECEM) (pp. 437-441). IEEE.
- Prathap, S. K. (2021). Using the P's of Marketing to Sell your Product. In Entrepreneurship Development in Food Processing (pp. 319-332). CRC Press.
- Rybaczewska, M., Jirapathomsakul, S., Liu, Y., Chow, W. T., Nguyen, M. T., & Sparks, L. (2020). Slogans, brands and purchase behaviour of students. Young Consumers, 21(3), 305-317.
- Nike. 2025. Nike Reintroduces “Just Do It” to Today’s Generation with “Why Do It?” Campaign. Online. Available Through: <https://about.nike.com/en/newsroom/releases/nike-why-do-it-campaign>
- Nike. 2025. Why do it? | nike. Online. Available Through: < link https://www.youtube.com/watch?v=Bcpu-jqAL6w>
8 Years | MBA
