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Taking The Nike Experience Direct To Consumer Case Solution

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2128 607 Words (3 Pages)
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Nike’s approach to the B2C channel will encompass building more transactional relationships as opposed to the personal ones built-in B2B. This is because the fundamental aim of B2B marketing is to build successful long-term relationships with the businesses that are buying your product. On the other hand, B2C marketing will comprise of Nike exerting its efforts towards pushing maximum target consumers towards its brand-owned retail outlets or online stores to reach a higher target audience and to drive sales and revenue.

Following questions are answered in this case study solution

  1. This chapter highlights how marketing efforts are different for B2B and B2C firms. As Nike and other manufacturers continue to expand into B2C channels, what are some differences in B2C and B2B behavior that might affect Nike’s approach to these channels?

  2. What are some hurdles Nike may face as it expands its B2C business? Consider this question both internally, with new skills Nike needs to amass, and externally, with challenges it may face from its B2B channel partners.

  3. What would be some negative consequences to consumers if all manufacturers sold only B2C and eliminated wholesaler-distributors who supply retail stores? 

Case Analysis for Taking The Nike Experience Direct To Consumer Case Solution

In B2B, Nike was more focused upon the key purchase decision-makers within a business, but now they will be more focused on directing their promotional activities towards targeted consumers who will use their products. B2B marketing was more rational and logic as it was focused on product features, but B2C marketing is a lot more emotional and is focused on stories regarding the benefits and value of the product. Nike will experience shorter purchase cycles as B2C buying is a lot less complex than B2B buying, which involves a greater number of people in decision making.

2. What are some hurdles Nike may face as it expands its B2C business? Consider this question both internally, with new skills Nike needs to amass, and externally, with challenges it may face from its B2B channel partners.

As Nike expands its B2C business, some major internal challenges it will face are in its operations as transport pickers will have to be changed from heavier forklifts to lighter carts considering to lower volumes at one time. Quality checks will have to be made more robust to ensure that customers are getting the correct product, color, and size. The elimination of the middleman entails that no safety net exists for incorrect orders or defected products reaching the final customer. Nike will have to simplify its purchase process to make it simple and effective to ensure no confusion upon the customer making the purchase, especially if it's online. A 24-hour customer service team that is efficient, responsive, and reliable will also be required.

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