Tesla and Nike Communication Strategy Essay

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Review these two communications and assess their examples and argue or defend their explanation. What recommendations would you make to ensure that the selected communications illustrate that the corporation is sensitive to cultural differences?

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Part 1 Nike Inc. is known for their “Just Do It” campaign. The Nike swoosh is an iconic symbol recognized globally as the cornerstone for their global ad campaigns. However, in western culture Nike strategically identifies its advertising of the color black as it is a symbol of power and strength. According to Barroso, Garcia & Jiménez (2018), color has the ability to invoke an emotional connection between the consumer and a brand. The original Nike ‘Swoosh’ logo was red, utilized as a symbol for energy, passion and joy. Nike has long withstood controversy surrounding the “Just Do It” campaign, just do what? Although, this campaign has recently celebrated its 30-year anniversary, Nike was determined to clarify and expand its meaning to, “Believe in something, even if it means sacrificing everything” (Nike, 2019). This clarification signifies internal strengths, beliefs and passions. Although Nike Inc. has a robust advertising share in China, the “Just Do It” campaign has taken on a very different approach. Although, the color black signifies power in western culture; the color red signifies power in Chinese culture. Nike responded by making the color red the focus of the Chinese advertising campaign. According to “Just do it” (2018), roughly 15% of Chinese between the ages of 15 to 35 play sports compared to almost 50% in the US. As such, the “Just Do It” campaign led to the development of “The Next Wave” in China, with a focus on growing the love for sports with the youth as the focus. Part 2 For companies with international operations in countries with distinct cultural differences, it is critical for public affairs and communication liaisons to customize the messaging to ensure the highest level of effectiveness and respect. Additionally, employee benefits packages vary in importance and legal requirements between different countries. (U.S. employees) To: Nike Employees Date: April 1, 2019 Priority: High Subject: Nike launches “Pay it back” Initiative As you already know, currently all full-time Nike employees have the option to purchase Nike stock at a 15% discount rate per share at the lower of the share prices, either at the beginning or end of the period. This benefit promotes employee stock purchase plan participation. This memo is official notification through our “Pay it back” campaign, effective June 1, 2019, all full-time Nike employees are eligible to purchase shares with a 20% discount. This plan can be purchased either through lump sum up front payment or monthly payroll deduct to distribute the cost. The amount invested can be updated quarterly to allow our employees the flexibility to flex your cash flow as your needs may change. This increase is in response to our strategic objective to give back to our employees to grow and obtain your financial future through improvement to our robust compensation and benefits package. We appreciate your dedication and hard work and are excited to share this opportunity! Respectfully, Mark Parker, CEO Nike Inc. (Guangzhou employees) Fax: 1-888-8888 #CF1234 Nike launches “Pay it back” Initiative Nike Employees Dear Employee: As you know, currently all Guangzhou Nike employees receive a pension benefit of 28% of your monthly salary. This memo is official notification through our “Pay it back” campaign, effective June 8, 2019, all Guangzhou Nike employee pension benefits will increase to 30% of your monthly salary. This increase is in response to our strategic objective to give back to our employees to grow and obtain your financial future through improvement to our robust compensation and benefits package. It is our priority to continue to enhance retirement pension benefits. Respectfully, Mark Parker, CEO Nike Inc. 2019-4-1 CC: Guangzhou Operations Manager References Barroso, C. L., García, F. G., & Jiménez, V. S. (2018). Análisis comparativo de la simbología cromática en publicidad. Nike en china y españa. Vivat Academia, 21(142), 5178,51A-77A. doi:http://dx.doi.org.ezproxy.snhu.edu/10.15178/va.2018.142.51-78 "Just do it" Chinese-style; China and brands. (2003, August 2). The Economist,368(8335), 59US. Retrieved from http://link.galegroup.com.ezproxy.snhu.edu/apps/doc/A106195826/AONE?u=nhc_mai n&sid=AONE&xid=b4453775 Nike (2019). About Nike. Retrieved May 1,2019, from http://www.about.nike.com Part 1- International Advertising Since Tesla spends very little to advertise their vehicles (Tesla Spends $6 On Advertising Per Vehicle…, 2016), I will take some liberties and describe what I would imagine a domestic and international advertising campaign might look like. Tesla sells its vehicles in many countries outside of the US, but China is the most strategic as they have the largest market for electric cars (A study of China’s…, 2017) and Tesla is currently building a new factory called the Gigafactory 3 in Shanghai (Tesla, 2019). A key component of automobile advertising are the pictures of the cars that are being marketed. Buyers want to know what the styling looks like and for some buyers, looks alone will sway their choice. In the United States market, Tesla will typically use a red model when advertising their flagship Model S or their upcoming supercar, the Roadster (Tesla, 2019). In the United States and other Western countries, the color red signifies passion and excitement (Cousins, 2012), exactly the emotions that Tesla would like to invoke associated with its top of the line vehicles. In China and other Asian countries, the color red is associated with happiness, joy and celebration (Cousins, 2012). This could also work for print and online advertisements, but the color white may be a better choice. In China, the most popular car color is white (Why white…, 2018). White makes the car appear larger and therefore implies that the owner is wealthier. Also, as a society, consumers in China would rather conform to the norm, rather than stick out of the crowd. Black would also be a poor color choice in China, as it is considered an unlucky color (8 Superstitions…, n.d.). By contrast, Black is the base color offered by Tesla in the US and is “free” while other colors have additional costs. Finally, Chinese drivers avoid cars that have license plates with either the number 4 or the letter X. This is also considered unlucky (8 Superstitions…, n.d.). Tesla can learn from the lessons of General Motors in the 1970s when marketing executives were stumped at the low sales volumes of the Chevy Nova in Latin America (Sheila Khatri, n.d.). They failed to realize a simple error that “No va” in Spanish roughly translates into “won’t go”. Who would buy a car that won’t go? Part 2 – International Communications in Different Countries Internal communications within an organization are very important. When a company like Tesla manages business units in different countries, extra care must be taken to make certain that the cultural norms in one country do not come across with the wrong message in another country or culture. It is commonplace in the US for Elon Musk, the CEO of Tesla to make extraordinary claims about anything from production rates to the performance of Tesla vehicles (In Defense of Elon Musk, 2018). In China, it is customary for executives to be humble and bragging is off-putting (Fox, 2008). Below are examples of internal communication of a new production milestone for both US and Chinese employees. USA To: All Tesla employees From: Elon Musk Subject: Model 3 Production Rate Smashes Record! Date: May 2, 2019 I am proud to report that our weekly production rate for the Model 3 has surpassed 10,000 vehicles per week! This was accomplished through perseverance and good old American perseverance! The naysayers have been predicting our doom for months and this just proves how wrong they have been. They don’t understand the level of effort and commitment that our team members are willing to put forth. We made it through “production hell” and now we are setting our sights on 15,000 cars per week. Keep up the great work and let’s prove them all wrong! Elon China To: All Tesla China employees From: Mr. Elon Musk, CEO Subject: Model 3 Production Rate Update Date: May 2, 2019 I am proud to report that our weekly production rate for the Model 3 in California has surpassed 10,000 vehicles per week. This is a remarkable accomplishment and would not have happened without the teamwork and collaboration that is a hallmark of Tesla, Inc. While this accomplishment is good, there is still much work to do to get to our stated goal of 15,000 vehicles per week. Please join me in congratulating the North American Tesla team. I look forward to our continued friendship with our Chinese affiliates and I’m excited to see our Shanghai production ramp up later this year. Kindest Regards, Elon Musk References “8 Superstitions for Cars on Chinese New Year.” Maxx 'N Go - Download Now!, maxxngo.com/8-superstitions-for-cars-on-chinese-new-year/ A Study of China’s Explosive Growth in the Plug-in Electric Vehicle Market. (2017). https://doi-org.ezproxy.snhu.edu/10.2172/1341568 About Tesla | Tesla. (2019). Retrieved from https://www.tesla.com/about Cousins, C., (2012). Color and Cultural Design Considerations. Retrieved from: https://www.webdesignerdepot.com/2012/06/color-and-cultural-design-considerations/ Fox, S. (2008). China’s Changing Culture and Etiquette. China Business Review, 35(4), 48– 51. Retrieved from https://search-ebscohostcom.ezproxy.snhu.edu/login.aspx?direct=true&db=mth&AN=32779855&site=edslive&scope=site In Defense of Elon Musk. (2018). Popular Mechanics, 68. Retrieved from https://searchebscohostcom.ezproxy.snhu.edu/login.aspx?direct=true&db=f5h&AN=132092663&site=edslive&scope=site Sheila Khatri. (n.d.). Commentary: A rose by any other name can cause an international incident. Daily Record, The (Baltimore, MD). Retrieved from https://search-ebscohostcom.ezproxy.snhu.edu/login.aspx?direct=true&db=bwh&AN=L54798968DRMD&site =eds-live&scope=site Why White Is the Dominant Colour for Cars in China? - TLD by MW. The Low Down Momentum Works, 10 Apr. 2018, thelowdown.momentum.asia/tld-weekend-whywhite-is-the-dominant-colour-for-cars-in-china/. Tesla Spends $6 On Advertising Per Vehicle; The Industry Average Is $1,000. (2016). Benzinga.Com. Retrieved from https://search-ebscohost- com.ezproxy.snhu.edu/login.aspx?direct=true&db=edsbig&AN=edsbig.A457318008& site=eds-live&scope=site
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Tesla Communication Strategy

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Student’s Name
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Date

Tesla Communication Strategy
Tesla communication Strategy
Tesla adopts a marketing communication strategy; they apply a strategic mixture of
personal selling, direct marketing, sales promotion, advertising, and public relations. This strategy
enables Tesla to effectively markets its cars and strengthens its brand image to realize higher
profits.
For example, Elon Musk says ‘A key component of automobile advertising is the pictures
of the cars that are being marketed. Buyers want to know what the styling looks like and for some
buyers, looks alone will sway their choice’ This outlines the company’s effort to develop their
advertising strategies to reach a wider market.
In China, Tesla incorporates the Cultural Awareness strategy for its top-level managers...


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