Nike uses both direct and indirect marketing channels to sell its products. Direct channels include Nike-owned stores in malls and online through its website. Indirect channels involve selling through smaller retailers. Nike exerts control over retailers through administered and contractual channel design. It focuses on direct-to-consumer sales through owned stores and online, as well as multi-brand stores. Nike uses a selective distribution approach, maintaining one or two outlets per city. Its marketing strategy employs various tactics, including advertising, public relations, personal selling, online marketing, sales promotions, and digital marketing to promote the brand and sell products.

1. Presented by:-
Aayushi Kapil— JL16PGDM002
Akriti Rastogi— JL16PGDM018
Ambuj Agrawal-JL16PGDM024
Arpit Ojha— JL16PGDM038
Guneet kaur— JL16PGDM056
Indrani kundu—JL16PGDM060

2. Channel Levels
2
•Direct marketing channel- Nike sells by opening stores in
malls, supermarkets and priority stores.
•Indirect marketing channel- Nike products are also sold by
small retailers which in turn help them to reach a large number of
customers

3. Channel Design
Administered- Nike command a high level of cooperation from the retailers
in terms of display, shelf space, pricing policies, and promotional schemes.
Contractual- Nike gives away their franchise to local retailers on an annual
fees and allows them to sell.

4. Channel Design

5.  Own stores-NIKE is focusing on direct selling to the
consumer with its DTC initiative , direct sales to the
consumer provide higher margins than do sales to
wholesalers.
 Online-By direct-to-consumer sales, it includes e-
commerce sales through www.nike.com and different
online shopping websites like jabong, flipkart, snapdeal
etc.
 Multi brand stores-Sales to wholesalers are the largest
revenue category.
Number of Channels

6. Exclusive –
It is an extreme form of selective distribution in which only one
wholesaler, retailer or distributor is used in a specific geographical
area.
Typical examples are of designer ware.
Intensive –
Intensive distribution aims to provide saturation coverage of the
market by using all available outlets.
Selective distribution-
1-It involves a producer using a limited number of outlets in a
geographical area to sell products.
2- Nike is a selective distribution as it has only one or two outlets in
one city.
Exclusive/Intensive/Selective

7. Analysis
Indirect Marketing channel
Reach Availability
Pull strategy
Selective Distribution
Online Offline

8. Part B...

9. Advertisement
Banners Print Ads

10. TV Ads

11. Tagline

12. Public Relations
•Use of public relations to
address issues and promote
the brand
•Company uses public
relations to address social
issues

13. Personal Selling
• Use of retail stores and malls
to handle their personal selling
•Customized products for each
and every customer.
•Store personnel are trained to
provide assistance to
customers in knowing more
about the firms products

14. Online marketing
• Direct marketing to
promote new products.
• Selling through online store
nikeid.com
• Customization according to
preference

15. Sales Promotion

16. Analysis
In 1988- 800 Million
In 1998 9.3 Billion

17. Digital Marketing