This document outlines Dick's Sporting Goods potential expansion into foreign markets. It recommends expanding into China due to its large population and rapid infrastructure growth. The entry strategy would be a joint venture with a local Chinese partner. The product mix and promotions would need to be adapted to cater to Chinese sports and culture, such as changing store hours and music, emphasizing popular sports, and using Chinese celebrity endorsements.

1. Mike Pitterle, Nick Scofield, Tom Nelson, Jeff Rahman

2. Agenda History Current product/promotions Comparison of possible foreign markets Entry strategy Adaptations to marketing mix

3. History Richard “Dick” Stack in 1948 Grandmother gave him $300 Small Bait & Tackle shop Son took over in 1984 Rapid Expansion/Acquisitions Currently operating 409 stores in 40 states

4. Domestic Product Mix Apparel Footwear Fishing Hunting Team Sports Winter Sports Camping/Hiking/Climbing Fitness

5. Domestic Promotional Strategies Scorecard Loyalty Program Mobile Marketing Email Sponsorships Television

6. Competitors Sports Authority Big 5 MC Sports REI Gander Mountain Bass Pro Shops

7. Countries of Possible ExpansionArgentina Economic- 7.9% Unemployment, $14,200 GDP/Capita, 450 U.S. Companies, 8.6% Inflation Rate, 16.2 mil. labor force Governmental- Crime against foreign companies, Price Freezes on Exports, 35% Tax rate, WTO member Sociocultural- Pop. 41 Million, Developed Infrastructure, Public Tuition Free College, Spanish Competitive- Falabella- Department Store

8. Countries of Possible ExpansionChina Economic- World’s 4th Largest Economy, $6,000 GDP/Capita, 5.9% inflation, 4% Unemployment, 807.3 mil. Labor Force Governmental- Communist, 25% Tax rate, WTO, Failure to protect U.S. copyrights, High-Trade Barriers, Ethnocentrism Sociocultural- Young population, 1.3 Billion Pop., Densely populated urban areas Competitive- Li Ning Co., 4,000+, Anta Co. 6,000+ stores

9. Countries of Possible ExpansionSouth Africa Economic- $10,100 GDP/Capita, 11.3% inflation, 22.9% Unemployment, 17.79 mil. Labor Force Governmental- 29% Tax rate, WTO member, New president Sociocultural- High crime rates, 49 million Population, 60% of pop. is in urban areas Competitive- The Golfers Club, The KingFisher

10. Our Recommendation…China!!! Low inflation rate Low unemployment Stable government Large population Rapid expansion of infrastructure Multiple urban areas 2008 Beijing Olympics

11. Expansion Options Hangzhou is about 115 miles southwest of Shanghai Population = 6 Million No. 1 on the Forbes list of best cities in China to do business Developed Infrastructure, and growing GDP

12. Entry Method Dick’s has always been Wholly-Owned In China, not an option Joint Venture using Dick’s products and a local partner’s knowledge of the region Possible expansion partner: Glorious Sun Enterprises Limited

14. Entry Method Continued Urban Market having 2 or 3 outlets Explore entering cities surrounding Hangzhou Chinese people are very brand conscious Keep major brands such as Nike and Adidas Explore new store layouts

15. Product Mix Adaptations Keep brand name products like Nike, Adidas, Reebok, Under Armor, Puma Product lines for sports like badminton, basketball, soccer, table tennis, figure skating, mma, water sports Store Hours 8 A.M. to 8 P.M. Mon.-Sat. Mix of pop, rock and traditional music in store Change main logo color from green to red

16. Promotion Mix Adaptations Print Advertising Utilize the popularity of the top selling newspapers to increase awareness

17. Promotion Mix Adaptations Television and Internet Advertising Advertise during the more popular televised sporting events, like basketball games and table tennis matches Use sports newswebsites and search engine websites to increase brandawareness

18. Promotion Mix Adaptations Sponsorships Sponsor large sporting events to increase awareness and generate interest among a wide variety of sports fans

19. Promotion Mix Adaptations Celebrity Endorsements Utilize the popularity and admiration of the nation’s top athletes to gain acceptance from the Chinese community Liu Xiang Yao Ming Guo Jingjing