Essay about Nike ( Marketing Channel)

2564 Words Jul 23rd, 2012 11 Pages
University of Essex
Business School

BE-532 Marketing Channels

Nike- Channel Strategy and Conflicts.

Individual Report

Submited to:Dr. Antonello Romano

Name:Virena Georgieva

Student ID:0948588

Introduction

The main market quality athletic footwear, clothing, sportswear and equipment supplier in U.S. is NIKE. The company’s name, which in fact means in the Greek goddess of victory, has been market leader since 1964. Philip Knight, co-founder and chairman of NIKE, has been running this form for over 48 years and focused on few core corporate areas- SCM (Supply Chain
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In order to meet its certain prospect sales, the company was capable of planning manufacturing and distribution far in advance. After $1 billion investment in a few bulky local distribution centres to replace its numerous smaller centres, NIKE started providing discounts to retailers. Moreover, NIKETowns superstores, were established in high-traffic, upscale shopping neighbourhoods. The sold wide range of apparel and footwear under then name of NIKE and the merchandise section made it more like a showcase of the products of NIKE as retail store. NIKE has set up extensive range of direct sales channels. NIKETown shops’ aim were not made profit and increase revenues, but to have an additional opportunity to build a brand. In addition, some of the stores carried hard-to-find footwear and apparel or specialty products which are not available from typical retailers.

Overall, NIKE’s original channel structure was based on retailers rather than end-consumers. It was more important for the company to create hundreds of relationships (long-term, short-term) as well as building up a reputation as a strong market player. Nevertheless, this channel made availability for the company to contain suitable means of disposing excess inventory devoid of giving up too much control of the brand name. In order to diminish the impact on the core brand, prices and quality were both managed unswervingly.

New online NIKE strategy,

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