Dick\'s Presentation

Mike Pitterle, Nick Scofield, Tom Nelson, Jeff Rahman

Agenda

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

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

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

Domestic Promotional Strategies

Scorecard Loyalty Program Mobile Marketing Email Sponsorships Television

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

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

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

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

Our Recommendation…China!!!

Low inflation rate Low unemployment Stable government Large population Rapid expansion of infrastructure Multiple urban areas 2008 Beijing Olympics

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

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

FIRM RESOURCE ANALYSISProduction Activities Marketing Activities Entry Mode Choice

Are we better off producing in this market than in our current location?

Are we better off using a local partner

Can we sell successfully?

Are we better off using a local partner for marketing/ selling?

No N/A No N/A Do not enter, indirect exporting

No N/A Yes Yes Direct exporting with intermediaries

Yes N/A Yes Yes Direct exporting with own channels

Yes Yes Yes Yes Licensing, Franchising

Yes Yes Yes No Production JV, own marketing

Yes No Yes Yes Marketing JV, own production

Yes No Yes No WOS

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

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

Promotion Mix Adaptations

Print AdvertisingUtilize the popularity of the

top selling newspapers to increase awareness

Promotion Mix Adaptations

Television and Internet AdvertisingAdvertise during the more popular televised sporting

events, like basketball games and table tennis matches

Use sports newswebsites and search engine websites to increase brandawareness

Promotion Mix Adaptations Sponsorships

Sponsor large sporting events to increase awareness and generate interest among a wide variety of sports fans

Promotion Mix Adaptations Celebrity Endorsements

Utilize the popularity and admiration of the nation’s top athletes to gain acceptance from the Chinese community

Guo Jingjing Yao Ming

Liu Xiang