The children of today carry with them the hopes of a better tomorrow. However, certain societal systems and norms have forced these once innocent and hopeful citizens to take a darker path. Juvenile crime is one of the problems being experienced in many countries across the world, especially by developing countries such as the Philippines. According to the Philippine Republic Act no. 9344, which is also known as the Juvenile Justice and Welfare Act of 2006, a “Child in conflict with the law or “CICL” refers to a child who is alleged as, accused of, or adjudged as having committed an offense under Philippine laws”. In a BusinessMirror article published in 2016, there were at least 11,000 recorded cases of CICL, a number that is seen a considerable decrease, from 52,000 reported cases of children in detention or custody, prior to the enactment of the law stated above. The article also mentions the breakdown of this number based on different types of crime:
ABOUT 60 percent of juvenile crimes fall under crimes against property. These include theft, robbery, malicious mischief and estafa, statistics by the PNP from 2012 to 2015 revealed. On the other hand, crimes against persons—which include rape, attempted rape, acts of lasciviousness, physical injuries, murder, attempted murder, seduction, grave threats, abduction and homicide—constitute 36 percent of the crimes committed by children covering the same period. In addition, 4 percent of the juvenile crimes from 2012 to 2015 involved violations against special laws, such as Republic Act (RA) 9165 (prohibited drugs), Presidential Decree 1866 (illegal possession of firearms) and Presidential Decree 1602 (illegal gambling). Last year theft, physical injury and rape were the top 3 crimes committed by children. (San Juan & Mayuga, 2016)
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As seen in the statistics above, the majority of crimes committed by youth fall under crimes against property. Because of this, one can infer that these crimes stem from the prevalent poverty being experienced by the majority of the Philippine Population. Children are being exposed to negative influences because of these circumstances, and with the legislature pushing for the lowering of the minimum age of responsibility, what hope is left for kids to have in the pursuit of their dreams, passions, and goals? The task now for marketers is to create an effective campaign that will encourage kids to power through these obstacles and to “just do it”. This is why the group aims to utilize sports to lessen juvenile crime in the Philippines.
According to a study published by Stephen Brosnan in 2017, results showed that a 10% increase in sports participation leads to a fall in personal crimes of 1.30 and 1.56%, while a 10% increase in sports participation rates leads to a fall in property crimes of between 0.64 and 0.73% (Brosnan, 2017). In addition, another study conducted by the Australian Institute of Criminology stated that “It appears that sport and physical activity can reduce crime by providing accessible, appropriate activities in a supportive social context. In other words, sport and physical activity must be connected positively within the social fabric of groups and communities” (Cameron & MacDougall, 2000). However, the paper also states that this strategy is not “one size fits all”. Therefore, it must be specifically tailored and designed to fit the Philippine context in order for the proposed campaign to be successful.
This is the reason why the group chose the brand Nike to be at the forefront of implementing this campaign. Nike has had a long history of promoting sports development in various sectors across the globe. Along with its slogan “Just Do It”, the brand has been able to empower people of all ages, genders, and races to pursue sports and use it as a tool for positive change. Nike’s success in pioneering successful programs and showcasing its advocacy is what the group aims to localize in the Philippine context.
II. Background on Brand and Company
Company
Nike Inc. was founded in Oregon in 1964 by Bill Bowerman, then track and field coach at the University of Oregon. Before establishing itself as one of the biggest players in sportswear today, it was first named Blue Ribbon Sports which was short-lived and changed just 8 years later (Nike, Inc., n.d.). Through the years, it has acquired different assets and companies in its goal of expanding the company such as Converse, Hurley, Jordan, etc. and has become one of the biggest players in sportswear today.
Brand
At the forefront of the company is Nike, a brand that essentially produces a wide range of athletic wear and equipment. Starting out with only shoes, they now manufacture shoes, jerseys, and athleisure wear -- catering to virtually any sport one can name. Additionally, they have teamed up with the company Apple to come up with Nike+ which allows a connection between their shoes and Apple products to monitor performance (Nike Company Background, n.d.).
In Nike, they pride itself on their products and in their customers. Their mission revolves around the task of “Bringing inspiration and innovation to every athlete in the world” and is what powers their search for thinking bigger and better for the future of sportswear. Making equality and belongingness their top priority, they are an inclusive company that looks for sustainable means for helping people from different cultures and walks of life move forward in the world of sports. This sustainability aspect is always at its core as they think bigger and better for the future of its brand. With their purpose of “Unit[ing] the world through sport to create a healthy planet, active communities and an equal playing field for all”, they move to become more than just an athletics brand to create a real and lasting impact in the world today.
Analysis
Through the years, Nike has proven to be a strong-willed and resilient brand that can withstand any conflicts that come their way. Well renowned for their strong advocacies about empowerment, equality, and sustainability, they have become a trusted brand in this day and age. With their brand assets like the famous Swoosh and their tagline “Just Do It”, they have built strong brand recall and recognition worldwide. Along with one of their beliefs of constant innovation, they create durable products that are up to date with the current trends today. Targeting men, women, and children from all walks of life, they are able to become the brand that they are today. Despite this, they are a premium sports brand with an expensive price point and perception to the public. Mostly dependent on their footwear to drive profits and sales, their other product lines have less saleability. Additionally, in the past years, they have been criticized for various allegations about unjust labor practices they since then have been trying to address.
III. Environmental Analysis and Competitive Scenario
PESTEL Analysis
Aside from the fact that the Duterte administration enacted new taxation laws that poorly affected the category, the government does not pose any restrictions to the brands that play in this field. Being a democratic country, there is no use of political propaganda to dictate what citizens should and should not be wearing. Hence, it somewhat serves as an opportunity for brands to have free rein over their businesses and the products that they put in the market.
The current economic conditions of the Philippines include rising inflation, the depreciation of the Philippine Peso, and new tax laws implemented by the government have all played a part in affecting the current buying behavior and purchasing power of the consumers. This poses as a threat to the category, as the already price-sensitive Filipinos will become warier of their purchases. Some players in the category may suffer because it could mean that consumers will choose to prioritize basic needs over other luxuries. However, it is also important to note that despite these adversities, the category continues to grow and is still forecasted to reach greater heights in the coming years.
Consumers are becoming smarter and their decisions have become more and more calculated. With the presence of the internet and even word of mouth, these consumers have become more aware of the different product offerings of each brand and are able to pinpoint which ones they already like and dislike. This serves as both an opportunity and a threat to the category because it allows brands to innovate the way they communicate, but it also makes it harder for them to differentiate themselves from strong competitors. Other social issues that may be detrimental to this category is that of unjust labor hours and wages. Many apparels and footwear brands have faced backlash over the years for having children and women working in sweatshops for long grueling hours. Nike has also faced its fair share of incriminating news which serves as a large threat to the brand, especially for those who feel strongly about this issue.
The rise of e-commerce has made shopping much more accessible and convenient. This proves as an opportunity for the category to further innovate and expand its business. By being available in this space, brands are able to better communicate with their consumers, especially those from the younger age brackets. For a big player like Nike, it is easy for them to dominate in this platform because of their well-established brand, but for smaller start-ups, it may prove to be difficult to enter the online sphere and go head to head with the market leaders. On another note, the use of technology also allows brands to study the buying patterns and market basket size of its consumers. This aspect also serves as an opportunity because it allows them to better understand their consumers, which can eventually help brands improve the way they cater to their consumers’ needs.
Sustainability has been one of the most relevant topics in today’s society. In line with this is the discussion on fast fashion and the amount of waste in generates. This poses a large threat to the category because there is a growing number of people who choose not to purchase from stores that mass produce their clothing in large factories. Being a global brand that offers a wide array of products, Nike is certainly one of the candidates on the chopping block. Despite the brand’s own sustainability efforts, this may not be enough to change the minds of green-minded consumers. Thus, this is one of the external factors that may negatively impact the category and the brand.
Presidential Decree No. 604 implemented on December 10, 1974, focuses on integrating nationwide youth development, physical fitness, and amateur sports development programs. It calls for the creation of the Department of Youth and Sports Development in order to better integrate recreational activities into the lives of the youth. This serves as a big opportunity for the brand and the intended advocacy because it is supported by the government and is recognized as a social issue that needs to be addressed. This decree gives Nike the room it needs to better implement its plans for the advocacy campaign.
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