This paper examines the "place" component of the marketing mix as applied to Nike's hypothetical polar pedometer product, the "Nikecount." The analysis identifies target demographics — including baby boomers, new fitness enthusiasts, and families — and maps distribution channels accordingly. The paper argues that general sporting goods retailers, health-focused stores, pharmacies, schools, and physician referral networks offer more effective reach than Nike's own brand stores, which tend to attract serious athletes. Together, these channels support a distribution strategy aligned with the pedometer's healthy-lifestyle positioning.
In terms of a company's marketing mix, "place" refers to where the product is sold. "Distribution" is another word for "place" ("Marketing mix," The Times Business Case Studies, 2012). In the case of the Nike polar pedometer "Nikecount," the most obvious initial "place" to sell the product is through major retail sporting goods chains such as Sports Authority and Dick's Sporting Goods. These stores attract a wide range of consumers at different fitness levels. The Nike pedometer is likely to be most popular among individuals beginning a fitness program, and offering it at a general sports merchandise retailer would enable a consumer buying walking shoes and other fitness gear — such as small hand weights to carry while walking — to purchase the pedometer at the same time.
Nike has its own network of brand-specific stores across the nation and also offers its merchandise for sale online. These channels can and should be used to sell the pedometer. However, the target demographic for Nike's brand stores tends to be youthful, serious athletes. Nike's motto of "Just Do It," while inspiring, might intimidate individuals for whom walking is their primary form of exercise.
The target market for the pedometer includes baby boomers (including mall walkers), people who are trying to get fit rather than simply maintain their fitness, and family members of all ages. While some runners do use pedometers, many rely on GPS devices and heart rate monitors to track optimal heart rate, distance, and pace during exercise. Walkers focusing simply on the number of steps they take per day are a more natural fit for a pedometer. Thus, focusing the distribution strategy on more general sporting retailers would be optimal.
Given its "healthy" rather than "sporty" focus, the pedometer could also be distributed through venues where individuals shop for health-related products. Pharmacies where diabetics fill their prescriptions — such as CVS or Walgreens — mass-market health food stores like GNC, and even supermarkets that stock fitness-related merchandise like Wegmans would all enable consumers shopping for health products to incorporate a pedometer into their daily lives. Many of these retailers also have online components, which would further increase the online presence of the product.
Nike has often succeeded in partnering with schools and other organizations to promote its products. Directly working with schools as part of a marketing initiative would be yet another effective use of "place." For example, Nike could establish exclusive deals with schools attempting to fight the childhood obesity epidemic by offering low-cost pedometers to students at a discount, allowing children to track their daily steps. This would create a built-in clientele for the product and generate community interest through the publicity such a partnership would likely produce.
"Discounted pedometers through school anti-obesity programs"
"Doctors recommending pedometers for weight management"
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