Posted at 12.11.2018
Adidas is the next most significant company who produces sporting goods all around the globe. It was founded in 1920. The Original founders of Adidas were two brothers Rudolph and Adi Dassler. The companys first produce were slippers and after that they made a decision to make sport shoes which proceeded to go so successful it led these to open their own sneaker making manufacturing plant in 1926. Then it didnt look back and today it is one of the most successful company in sporting goods.
Nike was in the beginning were only available in 1962 as a blue ribbon activities. The founders of Nike were Monthly bill Bower man and Phil Knight. Nike from its modest start grown as a sporting innovator in shoe. It is also now recognised as world s leading producer, designer, professional and distributor.
Market and Literature Overview of Adidas and Nike
Market Talk about and Sales
In 2009, the Market stocks of Adidas was 22% of the worldwide athletic boots while on the other end the market stocks of Nike was about 33 %33 %.
In 2009 the sales percentage of Adidas reported decline in gains. In last quarter of the 2009 2009 its sales percentage was declined by 5 % which was because of their upsurge in marketing costs. While in 2010 2010 the financial statement shows that there may be 15 % upsurge in their sale because of 2010 FIFA World Cup. On the other end the sales of Nike in the fourth one fourth of 2009 was decreased down by 7 %. While the first 1 / 4 of 2010 shows 53 % upsurge in net gain.
In circumstance of market both Adidas and Nike have different market globally. The primary market of Adidas are between 12-34 years consumers specially involved with sports. There are many sports which can be targeted by Adidas that includes fitness center regulars, NBA players, Soccer etc and also the youth who is convinced in living a sporty life-style.
While Nike on the other end has very specific target audience. It concentrates mainly on males and females, who are between 18 35 years old. As Adidas, Nike also targets sports players under its market.
The products of Adidas are divided in to 3 Categories
Adidas Performance Sports activities shoes, perfumes, vision wear
Adidas Original Superstar Sneakers, Old-fashioned Clothing, Adicolor Trainers
Adidas Style Caps, Carriers, Belts, Hand Gloves Etc
Nike Products Sports activities Shoes, Sunglasses,
Trainers, BodyCare, Trainers, Hoodies, Clothes, Caps, Luggage, Perfumes etc
There are various Charges strategies that happen to be accompanied by Adidas relating to its product. But generally it uses Market skimming strategy, this is the price of the merchandise depends after its shade, look etc for example: white coloring shoes of Adidas is more expensive than other colour shoes.
As in comparison to Adidas, the price of products of Nike are high. It adopts different and Competetive rates startegy than Adidas, it is dependant on the foundation of premium section as goal customers. Nike as brand has high top quality, so the price of its products is high than adidas.
The most basic distribution strategy adopted by Adidas is to focus resources at the place where most profitable customer section can be obtained. So for this purpose it opened up its shops all over the world. In addition, it targets offering total customer support at where customer would go to buy its products. Furthermore to look, Adidas also offers online buying service.
Nike on the other end acquired a strategy of exploring the current and developing new market, so its shops are in practically 200 Countries. Like Adidas, it sells the products to independent marketers, licenses and subsidiaries. Same as Adidas, it also markets its products online.
Adidas has its unique brand setting in the mind of customers. For example one of the images of Adidas is those who wish to wear light shoe is going for Adidas, alternatively than going for other brands. Other setting of Adidas in customers mind is hockey shoes, this is because generally golf ball players wears it due to its unique design and light-weight.
Nike on the other end has image of an progressive company who focuses making new improvements and creating new style shoes. As Nike s one of the main target audience are basketball players its key setting in customers head is to provide competitive border; help athlete to execute well. Recently to be able to boost its brand setting, it made a package with NFL by paying 1 billion money (about), Nike will produce all the on-field apparels, it will also produce game uniforms and other part line personal attire and fan products.
Research Method Used and its own Limitation
In order to carry out research there have been two main methods used Key and Supplementary Research methods.
To assemble primary data a questionnaire was designed which compares both athletic brand Adidas and Nike.
While to gather extra data internet, periodicals, annual accounts of the company, articles were used.
Manual Method can be used to get output information after analysing data.
Total estimated time used to complete this survey will be 9 week.
Limitations of Principal Data Collection Method
1. The first drawback of carrying key research was difference in response. Every individual has its own view. So that it was difficult to generalise the information.
2. It was frustrating, costly as it takes lots of the time to discover a respondent who can fill up questionnaire.
Limitations of Secondary Data Collection Method
1. It had been difficult to find data from company s website as sometimes they could not say their weakness.
2. The person who wrote extra data might be biased.
3. The sample used by a second person might be small.
Analysis and Discussion
Key conclusions of Marketing Strategies Adopted By Nike and Adidas after analysing Secondary data ;
There are various promotional strategies adopted by Adidas which include television, internet, billboards and journals.
Analysis of Tv set ad
Adidas uses different multimedia vehicles which can pop-up its advert on television; it uses various sports channels like Celebrity Sports, ESPN. The recent Adidas original Advertisement has celebrities like David beck ham, Agnes den, they used Interesting Advertising because the objective of the advertising was to create awareness about the introduction of its new legend wars collection which includes cool, funky clothes and shoes for youngsters, so in order to get them they used Musical Charm to mix up the feeling of shopping for. It used Peripheral Cues because it may have thought people wouldn't normally have the ability to process information that their new collection is very cool and stylish, and so they used fashionable celebrities like Beckham and Agnes to influence target audience frame of mind positively. According if you ask me the note of advertising was if one wishes look modish and funky as David Beckham and Agnes then should go because of this new collection of Adidas.
Adidas uses internet in many ways to reach its market, it created its website (adida. com) exclusive digital content to get all information about the business including company background, products, sales, new launches etc. Apart from this recently adidas used glass windows messenger game platform in order to promote its Predator and f50 boots to the age band of 15-24 years of age males. Which was most effective ad strategy as it helped the compnay to increase 14 % brand scores by gamers. On top of that popup ads can also be entirely on yahoo, espn home web pages etc. According if you ask me, the objective of using internet marketing was to appeal to the younsters who spends more time online than watching TV.
The organisation uses various groundbreaking outdoor ad such as billboard soccers, expansive wall membrane scrappers, topiary styled billboards etc. Lately in japan adidas came with unique outdoor adverisement theory where two footballers were hung wearing hearness and also have to play basketball for 10 mintues. The target was to seize the interest of the individuals to the billboard and adidas was successful in doing that as shown in body, traffice around that froze for approximately 70 mintues.
Other extremely effective idea of outdoor ad was manufactured in germany in 2006 during fifa world glass, an enormous arc like framework with Oliver Khan s image was putted over the road, the aim of this idea was to seize attention of the vehicles moving by road and it was successful in doing this.
Sponsership And Events
In addition to these it sponserd soccerex basketball festival for 2010 2010 football and has proved four calendar year sponsership deal with it. The objective of the deal must be to promote its products in ft. ball after successfully promoting it in NBA games. Aditionally adidas have agreed to make eight 12 months sponsership with major league soccer the aim of adidas is in to promote its products as well as to increase expansion of the category and insvesment for youngsters development.
Adidas also uses various sales advertising startegies in order to increase its sales, one of the recent sales advertising strategies is adidas coupons and coupons code in which adidas distributes coupons through dealtaker. com in which when a customers code complements with the adidas code, discount up to 30% or even more than which will be given by company on numerous kinds shoes. Furthermore to these it also decreases the prices of product during special festivals and events in order to increase its sales or even to complete the old stock.
Other than this, adidas also uses various maganizes and newspaper publishers in order to market its products.
Nike uses different promotional strategies. It encourages its products by implementing endorsement focus system, setting up a prevailing media existence, building flagship stores and use of periodicals, billboards, mobile etc
For TV ads Nike uses various sports activities channels to market its products by various superstars like Ronald no, Renaldo, and Roberto Carlos. It mainly shows its advertising during football game titles. Recent advertising was a sort out Comparative Advertisements because as the name identifies Nike: My better is than your better, in this ad it shows all activities games like container ball, baseball, Operating etc and try to deliver a note that Nike products are best in every game whether it is basket ball, basic ball, jumping. To be able to grab attention and to stir up Psychological charm it used Fantasy and surrealism because certain images shown create dream. While to stir up Rational charm it indirectly likened it s products with other products, the advertisement might be effective as it shows and considers its products superior in every game as compared to other companys products.
Nike uses various online methods to be able to promote its products. It has generated its own website, where customers can get plenty of information about the products and company. It also uses yahoo to promote its products, relating to me the objective of using yahoo and other popup ads is to make youngsters who often goes online, aware of the brand
Billboards and Magazines
In contrast to Adidas, Nike uses various ways of billboard advertising campaign to market its products, recently in Hong Kong to promote its Nike s T90, some dark-colored and white markers were placed in local Nike stores, subways, channels and also in magazines. These markers were a kind of 3D Window Display, and to watch it, customer need to text the main element word exhibited on the marker and has to download the Nike program. Following the software is downloaded, if one details the camera on the markers, you can see virtual 3d Nike T90 boots. These types of billboard s were specially launched for the mark market of Hong Kong who's found of most advanced technology. Apart from this Nike uses ESPN publications to promote its product.
Key Results of Survey (Questionnaire);
Recent research founded that Nike have scored low rates when compared with Adidas in conditions of positioning; it is because they primarily focuses on men, only 10% of feminine supposed that they might buy Nike sneakers again, while rest of the women enjoys Adidas since it focuses on both men and women uniformly. (DESCRIBED questionnaire)
40 % of respondents prefer and gave an average rate of 6. 9 to Adidas because it is cheaper and lighter in weight. For example many of the samples said I would go for Adidas because they're cheaper and also Personally i think myself more comfortable in the merchandise of Adidas, specifically young people who are fascinated in participating in ft. ball because David Beckham wears it. But on the other hand 60 percent60 % of complete sample likes and gave an average rate of 8. 5 to Nike, out of which 40 % sample likes it and gave the average rate of 7 because they consider its shoes are good in quality, comfortable over long distance. While other 20 % likes it and offered an average rate of 7. 5 because they feel Nike provides more variety of design in shoes than Adidas and they look more stylish. For instance test 4 said I like Nike because the merchandise are extremely much cool and also there are various types choices available and different types of routine and styles can be found, So it appears that People tend to be more worried about quality and comfortableness than price, so by this it can suggested to Adidas to focus more on its quality.
Out of total respondents, only 70% of respondents were able to give explanation of recent ad of two companies out which 40 % of respondents identified Adidass new star warfare collection, while other 30 percent30 % of respondents defined Nike s Warfare hawk Matt Scott s No excuses commercial.
30 % of total sample remembers and loves, TV ad of Adidas because they use well-known celebrities like Beckham, Messy, Kaka etc and they're more eye-catching. For example sample 21 Said the action it shows in its advertisement s add attract the viewers and also the style of exhibiting the merchandise was great.
70 % of overall test remembers and enjoys TV advertisements of Nike because each time they demonstrate ft. ball game in a unique and a lttle bit comical way. Some people remember it because they indicate that the occurrence of Nike s ad on Television set is more than Adidas.
After analysing key data it can be said that, respondents like Nike more than Adidas, and Nike s communication strategies are more effective than Adidas.
- Based on above analysis pursuing Conclusion can be produced ;
Both Nike and Adidas are following almost same types of promotional Strategies up somewhat, both benchmarks one another, both uses internet, billboards, newspapers, TV advertisement to market their products the sole distinctions is that they both are using different celebrities to promote their products and they also follow different endorsement strategies, Adidas targets sponsoring a team and various incidents, while Nike bulls its eye on various superstars of football, container ball, golfing etc.
The other difference is their advertising concept; they both use same scoop and size but make an effort to communicate with different messages. While the target audience of both the brands are identical to well as the brand building strategy used by both the company appears to be same.
So both companies are spending increasingly more in their promotional strategies, to draw in more customers and at last to increase their development.