In: Operations Management
Distribution Strategy on TOPIC NIKE
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:
Nike inc is an American multinational corporation.Nike engaged
in producing, building, manufacturing, and marketing and sales of
equipments like sports wears,footwears,apparels and accessories and
services in world wide. Nike is one of the top largest and major
manufacturer of sports accessories. And also they are the largest
suppliers of athletic shoes.
The distribution stategy of nike in three ways. They are by selling
products to wholesalers and retailers. In US and international
markets. Selling directly to customers is an another way. Customers
can buy products from the factory retail outlet and e commerce
sales through the website. Nike is selling products directly to
it's customers with its DTC initiative, it provides higher margins
than do sales to wholesalers One of the fastest distribution
channel of NIKE is online sales ,distribution products through
e-commerce companies like Amazon.Sales through wholesalers is an
another distribution category. 68% of revenue in fiscal 2019.TDC
sales increased from 16% to 32% during the same period of time. On
direct selling to the customers there is 6% increased wholesale
customers. The brick and mortar stores which ate Nike's owned
retail stores. And its digital platform. Nike's international
distribution channels, there are more than 700 stores outside the
US at the end of fiscal 2019. Through online distribution there is
35% of increas year over year.
Increase in sales in different places. Growing sporting environment
are important revenue opportunity for this brand. Because they
concentrate more in sports equipments. The marketing area were
mostly focused on urban areas with high market densities. Reduce
the impact of each product is a very importan factor. That means
making odmf environment friendly products will more beneficial than
other.The frequent advertising making it very popular . By making
of athletic products and equipments make ads familiar with sports
and fill up with positive and confident attitude .
"If you liked the answer please give an Up-vote, this will be quiet
encouraging for me, thank you! "