Essay Sample on BSN Sports: Unparalleled Distribution Network Since 1972

Introduction

Having been operational from 1972, BSN Sports Corporation has developed to become the biggest distributor of sports equipment and gears in the United States. BSN Sports has the top supply network, which has been achieved through its product and distribution strategies. Today, the corporation distributes and markets its merchandise to more than a hundred thousand sports teams in universities, colleges, recreational centers, and high schools through direct sales, e-commerce, and through a catalog (Morgan, 2017). BSN focuses on saving the trainers' time for them to have adequate time to influence the athletes positively. BSN aims at providing real solutions that match the customers’ budget and which meet the customers’ needs. This paper presents a detailed analysis of the pricing and distribution strategies adopted by BSN Sports as well as the recommendation to improve these strategies.

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The Existing Pricing Strategy

For many years, BSN Sports has adopted the contracting pricing strategy to market its products to ensure collaborative buying with different communities in the United States. First, BSN has developed pricing contracts with the OMNIA Partners to allow customers to pay a smaller amount for products. The contact also condenses on administrative costs to enable the clients to shop more with less money (BSN Sports, 2020). The second form of pricing contacts involves deals relating to all schools in the country. Learning institutions have the chance to enjoy bigger discounts, equipment, and refunds or even product credits when they sign a purchasing contract with BSN Corporation (BSN Sports, 2020). Thirdly is the procurement contracts which exist at the district level and which allow all learning institutions to have access to special pricing through a district website. Fourthly, government pricing contracts. Being a General Service Administration (GSA) supplier, BSN institutes long-term government agreements for commercial services and products at huge discounts.

The Recommended Pricing Plan

In improving the pricing strategy, BSN needs to adopt a value-based pricing approach. Through this approach, the corporation will be in a better position to decide the maximum amounts that the clients are keen to spend on the firm's products. In this case, the customers will have a strong say in dictating the prices of BSN’s products and services (Ingram, n.d). Secondly, BSN also needs to embrace the budget pricing approach to meet reach out on those individual clients seeking for low price products. In such a case, individual clients will have the capacity to manage the costs and even request for personalized specs. Thirdly, other than relying much on contact discounts, BSN Sports needs to adapt the price promotion approach to increase customer loyalty as well as sales. Some of the promotion strategies may include off-season discounts, holiday sales, and back-to-school price cuts (Ingram n.p). The price promotion approach will encourage customer loyalty programs as well as attract new customers who will have a reason to spend more on the company’s products.

The Existing Distribution Strategy

In developing effective distribution for its products, BSN Sports has been forging an exclusive partnership with related firms in the name of revolutionizing sports among the American youth, including women. Some of the organizations that have partnered with BSN in the recent past include Stack Sports, Varsity Brands, and National Pro Fastpitch (NPF) (Stack Sports, 2018). Through these partnerships, BSN has been able to transform the disjointed distribution channels by developing a digital podium that offers all sporting products and equipment (Morgan, 2020). As a result, many teams have direct access to an integrated digital solution to order sporting apparel, gears, and equipment.

The Recommended Distribution Channel

In optimizing the distribution channel, BSN needs to develop a digital system that strengthens the relationship between the clients and the distributors and ensure a profitable business. BSN Sports should ensure that the digital system has a combination of management software with an advanced solution to ensure customized individual and team apparel as well as sporting equipment (Nicolas, 2017). A good example would include providing the distributors with the firm’s cloud-based ordering system. Such a system will play a crucial role in offering “online catalog, real-time inventory visibility, order placement & invoicing, shipment tracking and notification and even an online design studio for each individual team so that customers can ‘demo’ different uniforms and logos before making purchase decisions" (Nicolas, 2017). As a result, BSN will be in a position to develop a close virtual relationship with all its suppliers and distributors at low costs. Through such a system, BSN Corporation will also be able to manage the quality control and the back-end logistics to avoid any errors and delays.

Conclusion

By implementing the proper pricing and distribution strategies, BSN will be in a better position to conquer the future market for sporting apparel and equipment. While effective pricing strategies will be crucial in attracting and customers, proper distribution channels will ensure a constant flow of products in the market hence promising high returns and dominance. However, reaching this milestone calls for BSN Sports to be dynamic in its operations and keep the trend with the market changes, including a constant upgrade of the e-commerce and digital technologies, which are the future for marketing.

References

BSN Sports. (2020). Contract pricing. Sports Apparel and Equipment - Team Uniforms | BSN SPORTS. https://www.bsnsports.com/contract-pricing

Ingram, D. (n.d.). Pricing strategies for the apparel industry. Small Business - Chron.com. https://smallbusiness.chron.com/pricing-strategies-apparel-industry-77737.html

Morgan, J. (2020, February 26). BSN SPORTS announces a partnership with National Pro Fastpitch. PR Newswire: press release distribution, targeting, monitoring, and marketing. https://www.prnewswire.com/news-releases/bsn-sports-announces-partnership-with-national-pro-fastpitch-301011836.html

Nicolas. (2017, February 2). The hottest sporting goods company You’ve never heard of. Digital Innovation and Transformation. https://digital.hbs.edu/platform-digit/submission/the-hottest-sporting-goods-company-youve-never-heard-of/

Stack Sports. (2018, June 20). Stack sports and BSN SPORTS announce exclusive strategic partnership to revolutionize youth team sports sales in America. PR Newswire: press release distribution, targeting, monitoring, and marketing. https://www.prnewswire.com/news-releases/stack-sports-and-bsn-sports-announce-exclusive-strategic-partnership-to-revolutionize-youth-team-sports-sales-in-america-300669055.html