Question $1(25$ Marks$)$

Companies have to decide on the number of intermediaries to use at each channel level. Four strategies are available: direct distribution, exclusive distribution, selective distribution, and intensive distribution. Taking the foregoing statement into consideration, discuss the four distribution strategies and critically appraise Nike$$s distribution strategy portrayed in the article.

ADDITIONAL INFO ON QUESTION : Students should show complete understanding of distribution strategies and critically discuss Nike$$s distribution strategy portrayed in the article.

Question $2(25$ Marks$)$

South Africa Rugby Union $($SARU$)$ dropped Asics for Nike. The Nike$-$branded official Bok jerseys were revealed in July $2023$ a few months before the rugby world cup kick$-$off.

$2\mathrm{.}1$ From a brand association perspective, opine on SARU$$s switch from Asics for Nike. $(5$ Marks$)$

$2\mathrm{.}2$ Assess the wisdom of Nike's sponsoring of the Rugby World cup bound Springbok team. $(20$ Marks$)$

ADDITIONAL INFO ON QUESTIONS:

$2\mathrm{.}1$ Critically assess why SARU brought Nike on board.

$2\mathrm{.}2$ Show understanding of strategic purpose of sponsorship. Relate your understanding to the article and Nikes sponsoring the Rugby World Cup Springbok team.

Question $3(25$ Marks$)$

$$Everybody asked me why I can$$t sell Nike and when I try to explain it to them, they don$$t understand.$$

Klopper said all South Africans should have access to the national rugby team jersey at a reasonable and affordable price. Provide compelling arguments why Klopper cannot sell the Springbok team jersey.

ADDITIONAL INFO ON QUESTION

Students should discuss both ethical and legal issues on intellectual property rights

Question $4(25$ Marks$)$

Rian Oberholzer, CEO of SA Rugby, warned: $$We will do what we have to do to protect our rights and those of our highly valued partners, who are being shamelessly ambushed right now. We cannot allow companies to flagrantly leverage their brand off the back of the Springboks brand when our real supporters in corporate South Africa $$ who enable us to put the

Springbok rugby team on the field $$ are paying for the rights to use our IP$.$

With reference to the article and additional research, discuss the prominence and practice of ambush marketing especially when it comes to major sports events and brands.

ADDITIONAL INFO ON QUESTIONS

Show deep understanding of the practice of ambush marketing when it comes to sports events and brands The unnamed retailers say they are being unfairly prevented from selling the official gear.

Nike $-$ the sole manufacturer and distributor of the official Springbok Rugby jersey $-$ permits only selected outlets to stock the rugby replica goods.

The independent sportswear suppliers have not been named $-$ apparently out of fear of victimisation.

Rugby. The commission's Siya Makunga confirmed that they had launched an investigation, but could not comment further. The new complaint was lodged on $5$ September. Protecting the brand

of our highly valued partners, who are being shamelessly ambushed right now.

the rights to use our IP$."$

The new deal

depart but we understand that business strategies shift over time and we wish Asics well in its continued journey in South Africa." The Nike$-$branded official Bok jerseys were revealed in July $2023.$

strategy, in which it owns the customer relationship, effectively meant cutting out the smaller, mostly specialised sports stores like Kloppers that previously stocked its goods. Sold like hotcakes

On Tuesday, Klopper told Cape Talk that in the past, when Asics was the sponsor, they had no problem with stocking Springbok jerseys, and when the Boks won, there was a special vibe in the store.

"I think the product was better $...$ and it wasn't as expensive as it is now."

This year, the hot ticket items at Kloppers Sport are locally manufactured Old School supporters' jerseys, without the official Springbok branding.

But most customers just want the official jersey, Klopper said, which reflects poorly on his business.

"Everybody asked me why I can't sell Nike and when I try to explain it to them, they don't understand."

says.

Focus on direct to consumer sales

Big $5$ Sporting Goods, Dunham's Sports, Urban Outfitters, and Dillard's and Zappos in the US$.$

Modern Retail reports that Nike appears to be softening on some retailers in the US and Europe. In June this year,

Macy's announced that by October, its stores and websites would resume selling Nike apparel after the brand wound down its partnership with Macy's in $2021.$ It has also resumed its relationship with Foot Locker; the outlet announced in February $2022$ that it expected its Nike inventory to "decline meaningfully" because of the focus on direct to consumer sales.

Nike's Direct business $-$ which includes its channels like its website, app and stores $-$ is thriving, generating about $$21\mathrm{.}3$ billion of revenue in the year ended $31$ May $2023,$ reports Statista ${?}_{(})$