Case study: Nike
- Language and Lexicon
- Features of Language
- Language Structure
- Language Processing and Cognitive Psychology
Nike is the largest manufacturer of sports equipment in the world, and sponsors the greatest athletes globally. This American company, founded in 1972 by Phil Knight and Bill Bowerman established this image, especially in the 1970s, in the context of the development of sports entertainment.
In 1981 Nike became the number 1 sport shoe manufacturer in the U.S., and went public that year. Today, Nike has 675,000 employees worldwide and the sales of the group in 2006 were 15 trillion dollars, an increase of 9% over the previous year. The group also has 6 subsidiaries, which are the Cole Haan Holdings, Nike Bauer Hockey, Hurley International LLC, Nike IHM, Converse, and Exeter Brands Group LLC.
The demand is mainly on the European market with three countries dominating Britain, France and Germany, representing 68% of sales of athletic footwear and 77% of clothing sales in 1992.
It is noticed that growth in sales of shoes is more than encouraging in Spain. Regarding the differences in demand based products, demand for shoes, the brand does not know the same growth as that of textiles.
There is also a pronounced seasonality of Nike products. In summer and fall, sales tend to increase significantly which causes a duty to inventory management in order not to mass produce during peak demand.
Subsequently Nike delivers small quantities of products to retailers to compensate for the shortcomings of its previous forecasts. Nike intends to streamline its production effect by asking retailers to estimate the volume of products they discharge during the coming seasons. In addition, the group separates shipments of textiles and footwear, being careful never to regroup.
For its distribution channel, Nike has chosen to work with specialist distributors of sport. These can be specialist outlets or retailers of sportswear known as Olympus in Britain or Decathlon in France .
These same retailers are also potent Nike abroad mostly. This increases the possibilities of locating in other European countries where Nike had lower sales in 1992. The group tries to develop its sales in particular in Italy and Spain.
The European markets are important, so the brand chose to be present through major retailer specialists, leaders in the sports market, as distribution networks.
In these countries, retailers have their own distribution channels and buy centrally. In the United Kingdom, for example, the top 20 places in distribution represents more than 50% of sales for Nike.
Tags: Nike, retailing, distribution in Europe