Dick\'s Presentation


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Presentation for my Global Marketing class, looking at expansion opportunities for Dick’s Sporting Goods

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Dick\'s Presentation

  1. 1. Mike Pitterle, Nick Scofield, Tom Nelson, Jeff Rahman<br />
  2. 2. Agenda<br />History <br />Current product/promotions<br />Comparison of possible foreign markets<br />Entry strategy<br />Adaptations to marketing mix<br />
  3. 3. History<br />Richard “Dick” Stack in 1948<br />Grandmother gave him $300<br />Small Bait & Tackle shop<br />Son took over in 1984<br />Rapid Expansion/Acquisitions<br />Currently operating 409 stores in 40 states<br />
  4. 4. Domestic Product Mix<br />Apparel <br />Footwear<br />Fishing<br />Hunting<br />Team Sports<br />Winter Sports<br />Camping/Hiking/Climbing<br />Fitness <br />
  5. 5. Domestic Promotional Strategies<br />Scorecard Loyalty Program<br />Mobile Marketing<br />Email <br />Sponsorships<br />Television<br />
  6. 6. Competitors<br />Sports Authority<br />Big 5<br />MC Sports<br />REI<br />Gander Mountain<br />Bass Pro Shops<br />
  7. 7. Countries of Possible ExpansionArgentina<br />Economic- 7.9% Unemployment, $14,200 GDP/Capita, 450 U.S. Companies, 8.6% Inflation Rate, 16.2 mil. labor force<br />Governmental- Crime against foreign companies, Price Freezes on Exports, 35% Tax rate, WTO member<br />Sociocultural- Pop. 41 Million, Developed Infrastructure, Public Tuition Free College, Spanish<br />Competitive- Falabella- Department Store<br />
  8. 8. Countries of Possible ExpansionChina<br />Economic- World’s 4th Largest Economy, $6,000 GDP/Capita, 5.9% inflation, 4% Unemployment, 807.3 mil. Labor Force<br />Governmental- Communist, 25% Tax rate, WTO, Failure to protect U.S. copyrights, High-Trade Barriers, Ethnocentrism <br />Sociocultural- Young population, 1.3 Billion Pop., Densely populated urban areas<br />Competitive- Li Ning Co., 4,000+, Anta Co. 6,000+ stores<br />
  9. 9. Countries of Possible ExpansionSouth Africa<br />Economic- $10,100 GDP/Capita, 11.3% inflation, 22.9% Unemployment, 17.79 mil. Labor Force<br />Governmental- 29% Tax rate, WTO member, New president<br />Sociocultural- High crime rates, 49 million Population, 60% of pop. is in urban areas<br />Competitive- The Golfers Club, The KingFisher<br />
  10. 10. Our Recommendation…China!!!<br />Low inflation rate<br />Low unemployment<br />Stable government<br />Large population<br />Rapid expansion of infrastructure<br />Multiple urban areas<br />2008 Beijing Olympics<br />
  11. 11. Expansion Options<br />Hangzhou is about 115 miles southwest of Shanghai <br />Population = 6 Million<br />No. 1 on the Forbes list of best cities in China to do business<br />Developed Infrastructure, and growing GDP<br />
  12. 12. Entry Method<br />Dick’s has always been Wholly-Owned <br />In China, not an option<br />Joint Venture using Dick’s products and a local partner’s knowledge of the region<br />Possible expansion partner: Glorious Sun Enterprises Limited<br />
  13. 13.
  14. 14. Entry Method Continued<br />Urban Market having 2 or 3 outlets<br />Explore entering cities surrounding Hangzhou<br />Chinese people are very brand conscious<br />Keep major brands such as Nike and Adidas <br />Explore new store layouts <br />
  15. 15. Product Mix Adaptations<br />Keep brand name products like Nike, Adidas, Reebok, Under Armor, Puma<br />Product lines for sports like badminton, basketball, soccer, table tennis, figure skating, mma, water sports<br />Store Hours 8 A.M. to 8 P.M. Mon.-Sat.<br />Mix of pop, rock and traditional music in store<br />Change main logo color from green to red<br />
  16. 16. Promotion Mix Adaptations<br />Print Advertising<br />Utilize the popularity of the top selling newspapers to increase awareness<br />
  17. 17. Promotion Mix Adaptations<br />Television and Internet Advertising<br />Advertise during the more popular televised sporting events, like basketball games and table tennis matches<br />Use sports newswebsites and search engine websites to increase brandawareness<br />
  18. 18. Promotion Mix Adaptations<br />Sponsorships<br />Sponsor large sporting events to increase awareness and generate interest among a wide variety of sports fans<br />
  19. 19. Promotion Mix Adaptations<br />Celebrity Endorsements<br />Utilize the popularity and admiration of the nation’s top athletes to gain acceptance from the Chinese community<br />Liu Xiang<br />Yao Ming<br />Guo Jingjing<br />