Nike faces channel conflicts between its brick-and-mortar retail stores and online stores. As customers shift from shopping in physical stores to online, Nike must balance maintaining its standard of product presentation online without the touch-and-feel experience of physical stores. It also struggles to manage policies for authorized online vendors versus its own Nike.com site to prevent unauthorized sales channels. Overall, Nike uses multiple distribution channels including licensing, wholesaling, and direct retailing but needs to adapt these channels as customer shopping preferences change with the rise of e-commerce.

1. CHANNEL CONFLICT

2. Introduction:
■ Nike, Inc. is an American multinational corporation.
■ Engaged in the design, development, manufacturing, and worldwide
marketing and sales of footwear, apparel, equipment, accessories,
and services.
■ Formerly called as Blue Ribbon Sports.
■ Founded on January 25, 1964, by Bill Bowerman and Phil Knight.
■ Headquartered at Washington County, Oregon, United States, (Near
Beaverton, Oregon)
■ Having net revenue of US$30.601 billion and managing 62,600
employee.
“Just Do It”

3. Background:
■ It all started with a trunk of car in 1964 by Phil Knight.
■ Changed its name from BRS to NIKE.
■ Importance of sports in people’s life.
■ High performance athletic shoes for US market.
■ Spent 11% revenue on advertising and promotion.
■ Famous Athletes as a Brand ambassador.
■ Used “swoosh” as a ubiquitous.

4. SWOT ANALYSIS
Strength
■ Strong in house research and development, evident by evolving &
innovative products.
■ “swoosh” recognisable in the market.
■ Targeted various sports.
■ Nike Town, Nike stores, nike women stores.
■ Outsourcing for reducing cost.
■ People have a perception that Nike is synonym to quality and
resilience.
■ Associated with leading international sports team, players and events.
■ Make to order products.

5. Weakness
■ Margin tend to get squeeze as retailers try to pass some of the low
price competition pressure in Nike.
■ “Sweat shops are used mockingly for the working condition in its
manufacturing plants.
■ Majority of its revenue is heavily dependent upon its share from
footwear market.

6. Opportunities
■ Nike now a days is even considered as a fashion brand.
■ People are getting serious about their fitness.
■ Opening of sports academy for nurturing new talent.
■ People are getting more inclined towards BRAND and quality(Sneaker
world)

7. Threat
■ Duplication of products.
■ Very competitive market.
■ Labour strike.
■ Lack of control over geopolitical events.
■ Recession taking toll on sales.
■ Currency fluctuation.

8. Product life cycle
Introduction Stage
NIKE used promotion strategies to enter into the market. It used various
factors to promote its products. Those factors included newspapers
advertisements, Television Advertisements etc. Posters are also included
in the promotion strategy of NIKE.
This helps to create awareness among the customers so that they are
drawn towards that particular brand, and also it creates a hype before
the launching of a product.
Growth Stage
In this stage, the market has accepted the launching of that product and
as a result the sales of that particular product starts increasing. NIKE
deliberately assigns prices of its product in such a way that the people
are tempted to pay because of the image of that brand that is created.

9. Maturity Stage
In this stage, the sales of a particular product reach its peak. NIKE’s
products are kept in the stores for a longer duration because the
demand is affected as there is a change in the demand which was earlier
and what is now. Earlier, there was a high demand for its products, but
now it gets depleted overtime.
Decline Stage
As and when the products are kept out in the stores, and the new ones
are released, these become old because there is a hype created of the
new ones. This happens because the new ones directly affect the
demand of the old ones, and as a result the sales of the old products is
decreased. At this point of time, the old product reaches its saturation
point.

10. Distribution Channel
■ Follows 3 channels of distribution :
Licence distribution
Wholesaler distribution
Retail distribution
Licence distribution – Nike stores, multi brand stores.
Wholesale distribution – department stores.
Retail distribution – NikeTown, factory outlets.

11. Conflicts
■ Balance b/w “Brick and mortar” & “online stores”
Shift of market share from retail stores to Nike.com.
How to maintain the same standard online(Product presentation).
Touch & feel experience for customers without brick & mortar.
■ Managing policies for other online vendors and Nike.com.
unauthorised channel for sales.

12. Conclusion

13. Thanking You!!!!
Presented by:-
Akhil Gopi
Asma Laskar
Bhagyashree Rathore
Himanshu Mishra
Rahul Kumar Singh
Sanjupa Kumari
Sushil Kumar