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Nike Marketing Channel

In: Business and Management

Submitted By bodong1108
Words 452
Pages 2
Nike Corporation is the world’s most successful innovative in the market when it comes to footwear, athletic clothing as well as equipment. Nike focuses its product offerings in several categories like basketball, football, soccer, baseball, training and running. Nike continues to display excellence with promoting their products by partnering with superstar athletes, pro sports teams as well as with college sports, so Nike relies mainly the ability to endorse and sponsor to be able to promote on its own. In 2008, Nike spent over $260 million on sponsorships and endorsing the brand. Nike Corporation provides creative advertisement deals with cricket teams in India well as providing sponsorship deals with Manchester Unite soccer team and soccer teams in other countries in Brazil and Portugal. Nike utilizes sponsorships deals to allow the Nike “Just Do It” logo to be displayed on each uniform as well as being on the inside of stadiums and arenas across the world, which continues to promote visibility of their products.

Nike’s distribution channels and retail model
Nike distributes its products through three major channels:
By selling products to wholesalers in the US and international markets
By direct-to-consumer(or DTC) sales, which include in line and factory retail outlets and e-commerce sales through www.nike.com
Sales to global brand divisions.NIKE, Inc.has also tried to create category-specific retail destinations by partnering with footwear retailers such as Foot Locker, Inc., JD Sports, and Intersport.
NIKE’s sales mix and retail slant
Sales to wholesalers are the largest revenue category. However, this category’s contribution in the sales mix contracted from 83.3% in fiscal year 2012 to 79.2% of revenues in fiscal year 2014. DTC sales, on the other hand, increased from 16.2% to 20.3% over the same period. This is significantly lower than the ratio of…...

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