NAME : YASHANA LALWANI

ROLL NO : 355

COURSE : TYBMS

ELECTIVE: MARKETING

SUBJECT : SALES AND DISTRIBUTION

PART ONE : SALES
ORGANISATION AND PRODUCT : NIKE

ABOUT

Nike, Inc. is an American multinational association that is involved in the design,

development, manufacturing and worldwide marketing and sales of apparel, footwear,
accessories, equipment and services.

The company’s world headquarters are situated near Beaverton, Oregon, in the Portland
metropolitan area (USA). It is a major producer of sports equipment and one of the world’s
largest suppliers of athletic shoes and apparel.

It employs more than 44,000 people worldwide and in 2014 the brand alone was valued as
$19 billion (€17,5 billion), making it the most valuable brand between sports
businesses.Founded by Bill Bowerman and Phil Knight on January 25 1964, as Blue Ribbon
Sports, the company became officially Nike, Inc. on May 30 1971. The company was named
after the Greek goddess of victory, Nike (Νίκη).

Apart from its own brand, Nike market its products under Nike Pro, Nike+, Nike Golf, Nike
Blazers, Air Jordan, Air Max and other as well as subsidiaries including brands Jordan,
Hurley Int. and Converse.
SALES STRATEGY

"Just do it" comes to mind pretty quickly, as do Air Jordan sneakers, famous athlete
endorsements, and the swoosh logo. But is that really all there is to what Nike is doing? Or, is
there something deeper behind their strategy and tactics?

The marketing from Nike that most of us recognize isn't the one that made them famous, at
least not in the early days. Discovering what first put them on the map is where the gold is.
Furthermore, just like any true content marketing strategy, it isn't really much of a "strategy"
at all. Like many similar success stories, it was as simple as providing real customer value.

PUT CUSTOMER INTERESTS FIRST

Customers like great products and they like serious benefits. For them, things that benefit
them personally are easy to justify. The Nike Moon shoes did this, but only because the
customer was beginning to understand jogging and its benefits for their health. Bill's secret
goal wasn't to sell shoes, he was simply promoting something that he believed in. This may
not sound like a marketing strategy, but it certainly should.

Base Your Strategy On A Felt Need

Initially for Nike's audience, the felt need wasn't for better running shoes, but for a better way
to get in shape. Certainly, running was already popular among kids and athletes in the 1970's,
but it wasn't the widespread social activity that we see today. The growing white-collar
workforce helped pave the way for social activities that included the promotion of
cardiovascular health. Once the trend was ingrained, the need shifted and the "jogging shoes"
themselves became the felt need.
EMBRACE NEW TECHNOLOGIES

While Nike's early marketing strategy centered on print publications, they later went on to
dominate other mediums, like television in the 80s and 90s, through modern social media
platforms today.

STAY TRUE TO YOUR SENSE OF PURPOSE

They say the more things change, the more they stay the same. For Nike, that has certainly
remained true. Throughout their current content marketing initiatives, Nike makes sure their
brand message hasn’t gotten lost over time or across channels. They focus their emphasis on
creating content that promotes the benefits of their products, rather than the features. Helping
their customers be better at what they love to do is still the focus of their branding and
message. By moving their content marketing to the platforms where their customers are, it
shows that they are keeping their audience’s needs in mind while staying true to themselves.
Nike's marketing strategy has succeeded in sustaining a global brand while many of their
competitors have come and gone from the spotlight.

NIKE’S EMAIL MARKETING

This email example from Nike shows how their brand uses notable sporting influencers and
their global community to promote themselves as a leader in sports. This framing makes it so
that when people think sports, they think Nike. When your brand is one of the first to mind
within your niche, your audience will be likely to make purchases from you when they need
to. And again, you never need to promote your product.

SUGGESTONS TO IMPROVE SALES

Despite the fact that Nike’s marketing strategies have had positive ramifications for the
organization, they also have disadvantages. Some of the disadvantages include high cost, the
negative influence of celebrities and less diversified strategies. Nike’s advertising and
promotional strategies are very costly . As a matter of fact, the company spends nearly 10
percent of its global revenue on marketing and promotional activities. As a result, the company
has been forced to increase product prices and engage in cost cutting measures to fund its
marketing operations. For example, there were allegations that Nike was using child labor in
Cambodia to curtail the overall production cost, which had a negative impact on its brand
image .
Nike relies on celebrity athletes to promote and endorse its products. However, these athletes
can either influence consumers positively or negatively. The activity and state of mind of the
selected brand ambassador could have a critical effect on consumers’ choice or inclination. For
example, if the athlete is idolized by many people, he/she could influence more people to buy
the company’s products. On the contrary, if the brand ambassador is caught up in a scandal, it
could adversely influence Nike’s deals and incomes .
To wrap things up, Nike’s showcasing system is less differentiated than its rivals. For instance,
Nike targets mainly youths, whereas Adidas targets everybody (both adults and children). As a
result, Adidas tend to attract more customers than Nike (Furthermore, Nike pays more attention
to the U.S. market, while Adidas focus on the global market. Therefore, the company needs to
pay more attention to other regions in order to attract more clients and position its products in
the emerging markets .
Taking in consideration all these aspects it can modify its strategies and become more efficient
and effective.
REFERENCE
https://coschedule.com/blog/nike-marketing-strategy
PART TWO : DISTRIBUTION
ORGANISATION AND PRODUCT : COCA COLA

ABOUT

The Coca-Cola company was founded Dr. John S. Pemberton in 1886 in Atlanta (The Coca-
Cola company 2016). Now, the company has become the largest beverage company in the
world (The Coca-Cola company 2016). The company has more than 20 sub-brands and the
company obtains more than 1 billion US dollars in annual sales (The Coca-Cola company
2016).

DISTRIBUTION STRATEGY

According to official statistics, an amazing 1.9 billion products of Coca-Cola are sold around
the world everyday.

The Coca-Cola Company is a global business that operates on a local scale, in every
community where they do business. The term is second most well known after okay, making
it recognisable in nearly all communities and cultures across the globe. The Company is able
to create a global reach with local focus because of the strength of its system, which
comprises the Coca-Cola Company and their more than 250 bottling partners worldwide.

The system has numerous legal and managerial departments and sections,all independent of
each other, and it does not own or control all of it bottling partners worldwide.
While it is generally perceived that Coca-Cola runs all its operations globally it, this process
it done through various local channels. The Company manufactures and sells concentrates,
beverage bases and syrups to bottling operators. It still however, owns the brand and is
responsible for consumer brand marketing initiative. The bottling partners manufacture,
package and distribute the final branded beverages to customers and vending partners, who
then sell products to consumers.

All bottling partners work closely with suppliers- grocery stores, restaurants, convenience
stores, amongst many others- to execute localised strategies developed in partnership with
Coca-Cola. More precisely, although Coca-Cola is a global company, its products never have
to travel far to reach the final consumer, making the product more local than you may think,
the product is made local to the market where it is sold.

Their business is a local business, typically products aren’t shipped more than a few hundred
miles; it’s all about being responsive to the customers needs and the local tastes of the
consumers in every market. The Coca-Cola Company sells its products to bottling and
canning operations, distributers, fountain wholesalers and some fountain retailers. They then
distribute them to retail outlets, corner stores, restaurants, petrol stations and many more.

Arrays of points of sales that Coca-Cola products can roughly be categorised into are:

– Wholesalers/ distributers

– Retail/ corner stores/ super markets

– Restaurants/ cafes/ night clubs

– Petrol stations

– Automated teller machines (AMTs)

The firms distribution system is one of the most well planned and executed compared to all
other drinks of the same category. It has such an impact on consumers and is so successful
that even wholesalers and distributers need the product for their business’ success. Coke’s
position on consumer’s mind makes it essential to retailers and wholesalers. They have
achieved their goal due to this high visibility, and to the availability of their products all over
the world, even remote places.
Coca-Cola’s vending machines are also a way the brand stays true to its identity of
#sharinghappiness.

COCA-COLA FACES PROBLEM IN THE DISTRIBUTION FIELD

Coca-Cola also faces some challenge in the distribution field. For example, the Coca-Cola
company has incredible distribution problems, lack of internal communication, high cost in
the distribution process and customer loyal problems .

SUGGESTION
For the incredible issue, the Coca-Cola company should establish a sophisticated distribution
systems (The Coca-Cola company 2016). The systems may involve several key functions.
For example, the inventory management, orders for shipment, order status, electronic map,
customers management, account collection. The functions may help the Coca-Cola company
according to the orders location to design the shortest route to deliver their productions.
Moreover, the systems should have the real-time update functions because it is important for
the company’s manger control and communication.
For the customer loyal problems, the Coca-Cola company should adopt the intensive
distribution strategy (Kumar 2016). It means that the company had better set their retail store
at some dense population places, such as shopping centre, leisure centre or some convenience
stores. The retail store should be set on the place which is easy to help the consumers
purchase their productions

REFERENCE
https://mpk732.wordpress.com/2015/05/17/the-coca-cola-companys-distribution-strategy/
https://mpk732t12016clusterb.wordpress.com/2016/05/16/coca-cola-companys-distribution-
strategy-and-
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