MANAGEMENT

BUISENESS MANAGEMENT

MERCHANDISING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Nike wants their clothing to be more affordable and available to their customers in a wide variety of stores. What would be their best distribution strategy?
A
Intensive
B
Exclusive
C
Selective
D
Direct
Explanation: 

Detailed explanation-1: -Nike Direct and distribution strategy In its distribution channels, Nike focuses on direct selling to the consumer with Nike Direct. Comparing Nike’s distribution channels, direct sales to the consumer provide higher margins than do sales to wholesalers.

Detailed explanation-2: -Nike uses the premium pricing strategy to raise the prices of its items above the cost of rivals, depending on product quality. The company’s founders and staff understand that these costs will represent the quality of their goods and the image that customers who wear the Nike emblem will project.

Detailed explanation-3: -Nike follows an intensive distribution intensity strategy. It would not require any changes as it helps to create brand awareness by providing a facility to open many outlets in the market. It helps in market penetration and maximizes profit by providing a wide range of choices to customers.

Detailed explanation-4: -Nike’s marketing tactic leverages the four Ps-product, price, promotion, and place. While these elements are fundamental in every marketing strategy, Nike understands how to gain an advantage. The brand uses a good combination of these components to lure more potential leads.

There is 1 question to complete.