Question

DISTRIBUTION STRATEGY IT IS ABOUT NIKE COMPANY

Instructions

Write a post for the Discussion Forum on this topic, addressing the questions below. You may use either a written paragraph or bullet point format. Part 1 should be 2–3 paragraphs in length or an equivalent amount of content in bullet point form. Responses to your classmates’ posts should be 1–2 paragraphs or several bullet points in length.

Part 1: Distribution Strategy

What is your current distribution strategy? What missed opportunities or disconnects are you seeing in this distribution approach? Make recommendations about your future distribution strategy based on the following:

• What are the best distribution channels and methods for you to use, and why?
• Will you have a retail outlet and if so, where will it be located?
• In what geographic area(s) will your product/service be available?

Answer 1

Nike company is very famous company of shoes, sports equipment and accessories. My company uses selective distribution strategy in which Company focuses on uses selective number of outlets in geographical areas to distribute its products to end customer. The missed opportunity i am seeing that There is increased growth of third party authorized vendors who can be intermediaries to deliver our products to end customers.

In order to distribute its products, Nike can use its own showroom outlets and second third party vendors. Its own showroom in limited cities like Newyork, Chicago, LA in US, Mumbai, Delhi in India so that company can maintain its reach to end customers as much as possible at low cost. Third party vendors will help The company to increase sale of its products and earn margin or incentives on the sale.

The location of distribution should be in populated and high tech cities where people are employed and have high purchasing power. Nike is one of the premium shoe brand. we can not open showroom or outlets in rural village areas where people only see and does not purchase high priced shoes and fitness items. Metropolitan cities are the best choice to open retail outlets as well have third party vendors.