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Nikon Place and Price Analysis

Nikon Place and Price Analysis

Place Analysis

Areas Where the Product and Services are Sold

Nikon has established a broad customer base across the world. Therefore, its products are sold in different countries through e-commerce platforms and physical shops. The products are imported and sold in countries apart from the United States because they are classified as gray market products. According to Nikon (2022), Gray Market Products are genuine Nikon products that were manufactured with the intention of selling them in other countries and may not meet Nikon’s specifications for its products in the United States or perform as anticipated, thus making them ineligible for Nikon USA warranty or repair service.

Distribution Channels

Getting the Product to the Market

Nikon has created a widespread network of distribution centers. The company distributes its products online through e-commerce platforms such as Amazon, Flipkart, and Alibaba. The company also distributes its products through supermarkets, Nikon stores, and multi-brand stores worldwide. The company has also set up service centers worldwide in various major urban cities and suburban regions. The service centers are mainly used to repair damaged Nikon products using genuine parts to maintain product durability.

Distribution Strategies That Create a Competitive Advantage

Nikon’s distribution strategies can be categorized as direct and intensive distribution. According to Xia et al. (2012), direct distribution includes directly selling and distributing products to customers. Nikon uses different direct distribution approaches to increase sales. One of the approaches is using e-commerce platforms where users can purchase Nikon products and get them shipped to wherever they are. The second approach is cataloging. The company targets professionals who require products with specific specifications and uses catalogs to prepare and dispatch their orders. Intensive distribution includes placing products in retail outlets. Nikon uses this strategy by placing its products in supermarkets and multi-brand stores worldwide and using brand representatives to track sales in different outlets.

Analysis of the Place Strategies and Their Effect on Business Success

Effects of Distribution Decisions on Other Ps in the Marketing Mix

The distribution decisions influence price based on where the products are sold. For instance, Nikon does not set the same price for similar products in developing and developed countries. In developed countries, Nikon products’ prices are higher than those in developing countries. Nikon products sold on e-commerce platforms also cost more than those sold in Nikon stores because the e-commerce stores have to factor in their profit margins, hence adding cost. Distribution decisions influence place by determining the areas where the organization can reach. For instance, choosing e-commerce as a distribution strategy enables the company to reach customers in different parts of the world. Distribution decisions also affect people by defining the target market that can be reached using specific distribution channels.

Recommendations Regarding Distribution Decisions That May Improve Business Success

One of the recommendations I would make to improve Nikon’s distribution strategy is to focus on the local market. Nikon is likely to make more sales by focusing on the local markets because it has already established a solid brand identity in the markets. The company may conduct market research in the local markets to identify customer needs and preferences and structure the distribution approach based on them to increase sales. To reach more customers, I would also recommend using different distribution channels simultaneously, even in local markets.

Price Analysis

Analysis of the Pricing System

According to Hinterhuber (2019), an organization’s pricing strategy is a policy to determine what it will charge for its products and services. It is categorized into competition-based, cost-based, and total-revenue pricing strategies. Pricing differs based on market conditions and industry and is a major component in financial modeling, which dictates the revenue generated, profit margin and reinvestment made to support an organization’s growth. Nikon uses a competitive pricing strategy, which includes strategically selecting prices based on the prices set by competitors in its market niche. Nikon’s prices are dictated by the prices of similar products offered by Canon, the main competitor. Price is also adjusted based on the changes in demand and prevailing economic conditions. The pricing strategy remains the same for similar products in the product category and may only be adjusted if the company is entering a new market.

Analysis of the Pricing Strategy’s Impact on the Economic Success of the Company

Pricing strategy plays a vital role in determining the demand for Nikon products. The current pricing strategy has enabled the company to set prices based on competitors’ prices, thus increasing its competitiveness in instances where it sets slightly lower prices than competitors. The company also aligns its pricing strategy with the quality of the products, where high price translates to high quality, thus creating a competitive advantage. Nikon’s ability to match price with quality has given the company good brand visibility and created a broad customer base. The pricing policy has also been successful due to affordance and reasonable product rates. The customer also regularly adjusts the price to retain customers and attract new ones. For instance, it provides periodic incentives and discounts to increase sales.

When entering new markets, the company’s price skimming has also played a significant role in its global expansion. According to Rajagopal (2013), price skimming includes setting the highest primary price that consumers can pay and reducing it over time. The company only lowers its price when the demand of the first customers in the new market is satisfied and after competitors enter the market. Nikon’s price skimming has been effective in markets with little competition from major brands such as Canon and Sony. Nikon also uses price skimming when introducing a new product in the market.


Hinterhuber, A. (2019). Implementing pricing strategies. Pricing Strategy Implementation, 11-21.

Nikon. (2022). Nikon shopping help | Gray market. Nikon | Shop & Explore Cameras, Lenses, and Accessories.

Rajagopal. (2013). Marketing decision making and the management of pricing: Successful business tools. IGI Global.

Xia, Y., Xiao, T., & Zhang, G. P. (2012). Distribution channel strategies for a manufacturer with complementary products. Decision Sciences, 44(1), 39-56.


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Nikon Place and Price Analysis

Nikon Place and Price Analysis

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