Procter and Gamble Case Analysis

Only available on StudyMode
  • Download(s) : 235
  • Published : June 28, 2012
Open Document
Text Preview
DISTRIBUTION

Nike has infiltrated its product globally for years. There are countless places to find the brand, not only in Brazil and Australia but in 200 other countries as well. Nike is trying to remain competitive in being one of the largest sporting goods manufacturers globally. Distributing products is one of the main concerns to keeping them in the lead.

DEFINITION OF DISTRIBUTION
Distribution is transferring of the ownership of a product from a manufacturer to a consumer. In case a manufacturer does not transfer the product directly to the consumer, there may be intermediaries. Based on this, a distribution channel is a chain of intermediaries where each transfers a product until it reaches the final consumer (Kotler et al. 356-623).

Distribution strategies embraced by an organization can either give them an edge in market or make them lag behind the winners in the market. The more efficient the product distribution is the more sales and thus more profits. The delivery of the right product and at the right time to the consumer not only effects utility but also leads to high degree of consumer satisfaction and loyalty. Nike distributes its products on level basis. The high priced premium products are given to certain distributors while leaving the low priced to be sold at highly discounted prices at mega retail stores such as Wal-Mart. Whereas Reebok embraced a limited distribution strategy Nike ventured more into a global3 market capitalization (Jeannet J, 2000, pp 44). Nike shoes are carried by multi-brand stores and the exclusive Nike stores across the globe. Nike sells its product to about 20,000 retail accounts in the U.S. and in almost 200 countries around the world. In the international markets, Nike sells its products through independent distributors, licensees and subsidiaries. The company has production facilities in Asia and customer service and other operational units worldwide. Nike is infiltrating into "big box stores" such as...
tracking img