We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Product Types of Dick’s Sporting Goods Essay Sample

The whole doc is available only for registered users OPEN DOC
  • Pages:
  • Word count: 1366
  • Category: brand

Get Full Essay

Get access to this section to get all help you need with your essay and educational issues.

Get Access

Product Types of Dick’s Sporting Goods Essay Sample

With its deep assortment as well as deep varieties of sporting goods, Dick’s Sporting Goods (DSG) has maintained a generous lead in the sporting goods retailing arena. They have been able to do this by offering large varieties of name brand items in every category in the store. Some of the more notable names include Nike, Under Armour, The Northface, and Adidas, and are prominently featured in nearly every corner of the store. These brands account for nearly all of their annual revenue and remain a large reason shoppers gravitate to the store. DSG only sells the most up-to-date sporting apparel and gear for the current year which helps to keep the company a leader in the industry. I believe this is what sets Dick’s apart from their competitors. By offering the latest and most innovative products from the most well-known sporting goods companies, Dick’s will continue to be known for its quality. Unfortunately, this is also where they may see a slip in revenue. The margins are already smaller on these types of products, but couple that with the point that sporting goods are more recreational or even luxury than necessary, and the point that we are still in the midst of an economic recession and Dick’s is positioned in a precarious spot. Private Brands (Including Development)

“Another key to Dick’s success is its emphasis on private labels” (Gunther, 2010). The company has developed a number of its own products with suppliers primarily located in China (Gunther, 2010). Dick’s has even licensed certain name brands in order to create specialized, exclusive products but still sell them under a national name brand. A good example of this is how they licensed the Adidas name so they could create their own lines of “Adidas” branded baseball hats and gloves. The company also likes to buy out dying or declining brands in an attempt to utilize their names and branding image. For instance, in 2008 Dick’s purchased the Maxfli brand of golf balls from Taylormade-adidas Golf and sells the now private brand exclusively at Dick’s (Quinn, n.d.). Some other companies that Dick’s has purchased include Slazenger and the Field & Streams brand. In 2011 they expanded their private brand portfolio by adding KOPPEN in the outdoors category, Nickent in the golf category, and Nishiki in bikes (Gunther, 2010). These brands were added to already impressive selection of known private labels such as Adirondack Trading Company for casual clothing, Northeast Outfitters for hunting and work apparel and boots, DSX and DSXT for cycling apparel, and Steve Hill and Stone Hill Clubhouse for golf apparel and shoes (Gunther, 2010).

According to their annual report, their private label brands are a major point of interest for the company as it tries to compete in the increasingly competitive sporting goods marketplace. Currently the private labels that Dick’s has account for 15% of their total annual sales, and they are planning on increasing that number in the coming years (Gunther, 2010). Edward Stack, Dick’s President and CEO, says he plans on increasing the number of private labels the company has as he sees them as a way to bolster Dick’s earnings (Gunther, 2010). Personally, I see these items as good quality, well-built products at a bargain price.

Although I have limited experience with these particular products (I’ve never owned them but I have felt and handled them) I feel like if the company can continue to offer their customers a good value. My only concern would be that they may risk alienating some of their customers who are used to the national brand names. If they continue to offer more products that some consumers don’t recognize they may begin to come across as a less prestigious, more value than quality type store. I believe they should be able to work around this by slowly building their private brand awareness and also by increasing the quality of those items even more. They may also consider promoting them more. Even though most people still like to buy items through the brick and mortar locations, it may help to be able to find these items on their website. I couldn’t find them. Exclusive Brands

DSG has also tried to increase their market share by offering exclusive items from top major brands. The most notable brand is Nike, which Dick’s boasts as one of its top two brands and sells a plethora of items that consumers can only find at Dick’s (Gunther, 2010). These items offer Dick’s customers the option of buying unique colors and patterns and even versions of Nike gear. They are also the exclusive retailer of Umbro, a soccer brand that includes many different apparel items.

One of the most important aspects of these exclusive items is that they offer the customers a better value than most of the other gear from the same manufacturer. No doubt it was all in the design, but the products are usually quite a bit cheaper than other or even similar products by the same manufacturer. It’s not apparent what the reasoning for this is but since the items can only be found at Dick’s one might argue that its way to attract and build customer loyalty since customers can normally find all the other items at other sporting goods stores. Personally, I feel that it may be in their best interest to increase the amount of exclusive items they offer. By differentiating themselves in that way they stand to increase their market share as more people continue to comparison shop through this recession.

Although I was unable to find out how flexible Dick’s relationship with these big companies is, it’s not hard to imagine that the companies would have some power over how Dick’s advertises and/or promotes the products in the stores. This of course, could directly affect how much room they have for other products and brands, and with more effort being put into their private brands, more space may eventually be needed. The question will be how this will affect customer loyalty. Will customers still want to shop at a company whose merchandise is not Nike, Adidas, Under Armour, or The North Face? Merchandise Categories

While it’s been hard to find how Dick’s Sporting Goods manages its merchandise from a buyer/vendor perspective (i.e. how the buyers interact with the suppliers), the way they split their stores merchandise up and the way they organize the merchandise throughout their respective categorical areas is apparent as ever. For example, they separate the Nike products from Adidas and Under Armour products within Men’s Apparel. Due to the size of their stores, Dick’s is able to employ a large variety and a large assortment at the same time. For instance, if you looking to buy a Nike hooded sweatshirt you would be able to find about three different colors in about four different sizes for that one type of sweatshirt, but what makes them unique is that they offer a large variety of different sweatshirts as well. The number of SKU’s in this case is certainly greater than their variety of different sweatshirts, but they continue to offer more overall than do many of their competitors.

One thing this retailing strategy does is that it reinforces the idea that Dick’s is a specialty store with enough variety to suit everyone’s financial needs. This provides value unlike their competitors currently do. However, this also puts the pressure on Dick’s to maintain their inventory well. With larger offerings Dick’s is forced to maintain high levels of inventory costs. Fortunately, they have recently introduced a new inventory system that will allow them to control inventory levels at a much better level than before. This should eventually help with creating larger profit margins in an increasingly competitive industry. Only time will tell if they will be able to maintain that level of service.

Work Cited

Gunther, Marc. “Retail’s Rising Star.” CNNMoney. Cable News Network, 20 Apr. 2010. Web. 02 Feb. 2013. Quinn, Gene. “Dick’s Sporting Goods Acquires Maxfli | IPWatchdog.com | Patents & Patent Law.” IPWatchdogcom Patents Patent Law Dicks Sporting Goods Acquires Maxfli Comments. N.p., n.d. Web. 02 Feb. 2013. <http://www.ipwatchdog.com/2008/02/20/dicks-sporting-goods-acquires-maxfli/id=121/>.

We can write a custom essay

According to Your Specific Requirements

Order an essay

You May Also Find These Documents Helpful

Red bull market

Red bull entered the US market in 1997 because it was a politically stable developed country. The company used a “cell” approach to divide the key markets into geographic segments rather than attempting a nationwide launch. The company’s first test market was Santa Cruz, a beachside town that was known for its active lifestyle through skateboarding and surfing and the University of California Santa Cruz....

What happened in the past with Coca-Cola?

Coca-Cola Company is an American multinational beverage corporation and manufacturer, retailer and marketer of nonalcoholic beverage concentrates and syrups. Coca- Cola Company has been found 131 years ago in May 8,1886 in Atlanta, Georgia, U.S. by Asa Griggs Cadler and John Pemberton. John Stith Pemberton is pharmacist who invented formula for the most popular product Coca-Cola in 1886 in Columbus, Georgia. The formula is still...

PR Strategy

1. PR’s Competitive Advantage Pernod Ricard has a competitive advantage due to numerous factors, Pernod Ricard is currently ranked as the second largest Wine and Spirit Company, the strategy utilized to get to this position was a very deliberate and strategy of timely mergers, acquisitions and planned alliances which created a Pernod Ricard portfolio consisting of high market shares in global wine and global spirits....

Global Branding and Communication Case: The Global...

Introduction Interbrew traces its roots to Brewery called Den Hoorn which was located in a small town outside Brussels since 1336. It was purchased by Sebastiaan Artois in 1717 and brewery changed its name to Artois. After its merger with another Belgian brewery called Piedboeuf in 1987, the company was named Interbrew. It entered the rapid growth stage after 1990 by acquiring or merging with...

Brand Tracking Survey

This is a brand tracking survey that Steinlager beer might use. You will see where you can insert your own product category and brand name. Notice how the questions go from broad to specific. Keep that format if you add your own questions. Keep all of these questions! Be aware that in some situations, brand tracking may be concerned with which products the brand reminds...

Get Access To The Full Essay
Materials Daily
100,000+ Subjects
2000+ Topics
Free Plagiarism
All Materials
are Cataloged Well

Sorry, but copying text is forbidden on this website. If you need this or any other sample, we can send it to you via email.

By clicking "SEND", you agree to our terms of service and privacy policy. We'll occasionally send you account related and promo emails.
Sorry, but only registered users have full access

How about getting this access

Become a member

Your Answer Is Very Helpful For Us
Thank You A Lot!


Emma Taylor


Hi there!
Would you like to get such a paper?
How about getting a customized one?

Couldn't Find What You Looking For?

Get access to our huge knowledge base which is continuously updated

Next Update Will Be About:
14 : 59 : 59
Become a Member