Branding Collage&Critique (ADIDAS V NIKE) Essay Example

  • Category:
    Marketing
  • Document type:
    Essay
  • Level:
    Masters
  • Page:
    2
  • Words:
    920

MARKETING

Branding Collage Critique (Nike versus Adidas)

Nike and Adidas are the world’s popular sports ware in terms of their sponsorship and linkages to the sports. The companies are giants in the sports ware where by their linkages and their models in the apparel bring a competitive picture of the two companies. Nike is associated and linked with other companies as Umbro, Hurley, Cole Haan and Converse while Adidas has links with Reebok, Rockport and Taylor made Golf. All these have promoted the sales and marketing of the products in relation to the sponsorship with sports. In terms of marketing, Adidas sponsor such sports as Soccer, tennis and general athletic markets while Nike is associated with Running, Basket ball and cross training. For instance, Nike penetrates over 80% of the US basket ball market of $2.6 billion while Adidas has just 14%. This is a tough competition in terms of the sponsorship where the companies try to beat the other (Chadwick &Arthur, 2007).

In terms of technology, Nike is doing better than Adidas shoe making where the company uses technology of inserting strength to its shoe so as to win in the market. Adidas products are cheaper than Nike counterpart products in terms of technology inclusion in production. Pricing of these products is directly proportional to the technology advancement involved in the processing of the products thus the higher the technology, the higher the price. Adidas “3 stripe design” and Nike “swoosh symbol” are the identity element of the company products. In relation to the marketing strategies, Nike focuses on domestic market while Adidas has its focus on the European market. In the domestic front, Nike has ventured with basketball, athletics and its recent venture in soccer through its sponsorship in the English Premier league. Adidas on the other hand has ventured into the European market in terms of the sponsorship of soccer in the European and Asian nations where soccer is regarded as the “international sport”.

The use of the outsourcing policies has been portrayed by both companies where Adidas has its product development and design outside its source. This is done in the German nation and Asia. The designed product is then placed in the market for sale. On the other hand, Nike has its products outsourced to Asia mainly Korea and Taiwan. This brings about the competition in that these products on development are done by the experts and use of technology so as to bring about sales increment. Nike has effective marketing and advertising strategies as compared to its counterpart Adidas (Chadwick & Arthur, 2007). It does this by the use of sporting activities sponsorship such as athletics and basketball s well as its recent venture on soccer. The support of major soccer teams such as Arsenal and Manchester United has also added to its marketing strategy.

Adidas has recently updated its production so as to increase its efficiency in terms of cost as its products are cheaper than Nike. This is through the involvement of technology in the production of the products thus adding to the value of the product. This is strength of the company over its counterpart. It has also expanded its product line from sport apparel to sporting equipment which has added to its success in the market. Nike on the other hand has expanded its website use to the customers so as to increase its market share in relation to the competition existing in the field. This has benefited Nike in earning more in terms of sales as compared to Adidas. This allows for the provision of the customer comments on its products. Its strength is also based on the use of technology in the footwear production as well as on the use of sports products such as the production of MP3 players on the sports. This has enabled the company to gain more in sales for instance the company generated over $10,000 million in 2003 which was an 8% increase from the previous year. Through its backing of such store chains as the Federated and Norstom which are well known for having strong relations with the customer, Nike is able to increase its sales thus promoting the company and products in the future.

Adidas expansion of business from the production of sports wear to that of the equipment such as soccer balls and the use of billboards assist in boosting the company’s marketing strategies. This is an advantage over the rival company as Nike. This is so important in the marketing field. Through the company’s logo, the customers are able to determine its products. Adidas relationship in FIFA world cup promotions has helped the company in growth as the global scenes have reputation of the company on the participation and sponsorship of soccer in the world.

The future of Nike Company is dependant on the marketing and advertising aspects in the nature in which the company promotes sports in association with athletics and basketball. The promotions of sports activities in major global institutions promote the future of the company as this portrays the reputation of the company. It is also on the basis of the technological advancement in the production of its sportswear as shoes. This sport promotion then allows for the popularity of the brand. Adidas has its dependence on the FIFA world cup promotions as well as soccer activities which is seen as the international sport thus its future depends on soccer.

Reference

Chadwick, S. & Arthur. D. (2007). International Cases in the Business of Sport. Butterworth-Heinemann. p. 438.