Building Brand Architecture Report: Adidas vs.

Nike

Introduction
This report builds and examines the brand architecture of two brands – Adidas and Nike in the high-
end sports clothing market i.e., Sportswear. The two brands are chosen as they compete in very
similar markets and yet have very different brand personalities. Adidas and Nike are among the most
valuable brands in the Sports clothing market, and this report will bring out the stark differences in
the brand architectures of these two brands. The goal is to observe how consumers can have vastly
different perceptions of and relationships with very similar products owing to the differences in
brand architectures. Brand Architecture The first step is to develop brand pyramids for both brands.

Brand Architecture The first step is to develop brand pyramids for both brands.

• Brand Architecture for Adidas

Brand Core/Essence - Relentless and Comfort

Brand Personality- Classy, Energetic

Emotional Benefits - A class apart, Sporty, Premium

Status

Product Benefits - Good Quality, Last for a long time,

make you feel acitve

Product Attributes- Confortable, Durable, Well -

made,Good fit,Expensive
 • Brand Architecture for Nike

Brand Core/Essence - Innovation and Inspiration

Brand Personality - High End, Elegant, Stylish

Emotional Benefits - Cool, fitness enthusiast,

Appealing

Product Benefits - Easy to wear, Branded , Casual

clothing, Good price Range

Product Attributes - Trendy, Colourful

Brand comparison

As we can see both brands compete in very similar markets. Also, both brands put a high value on
performance and product quality. However, the differences in the brand personalities appeal to very
different target audiences in the same market. Adidas prides itself on the exclusivity that it brings
through its sleek designs, premium pricing and innovative features. On the other hand, Nike attracts
its audience with good range of price, stylish and colourful that it offers with its products. While
Adidas creates a sense of belonging for its customers, Nike provides its customers the value for
money. Nike accompanied by their trendy tagline “Just Do It”. Adidas has a tagline “Impossible is
Nothing”.

Adidas dominate areas like soccer and tennis because they are relatively comfortable. This
is attributed to how flexible and versatile most of them. Nike on the other hand is a premier choice
to inspire those who love basketball and running. They have an amazing variety of that can be used
by any type of runner. Nike have designs which are quite appealing to many, especially the
millennials. They come up with a variety of colours and styles, giving you a wide range of products to
choose from. Adidas on the other end may not have ‘cool’ designs but are more comfortable. So, it is
always a battle of style against comfort.
Brand Value

Sports company Adidas was valued at over 16.48 billion U.S. dollars in 2020, an increase from
around seven billion U.S. dollars in 2016. The multinational corporation is the second-largest
sportswear company in the world. Whereas In 2020, the Nike brand was valued at approximately
34.8 billion U.S. dollars, which was an increase of over two billion U.S. dollars from 2019.

Both companies are driving growth in the sportswear market worldwide, but Nike has a
particularly firm hold of its home market of North America: the company generates around 43
percent of its total revenue from the region, whereas around 21 percent of adidas’ global
revenue comes from North America. However, adidas has shifted some of its focus to the region in
recent years to take some share away from Nike. The German firm has exclusive partnerships with
Kanye West and Pharrell Williams and increased its advertising spending in the United States to 688
million U.S. dollars in 2019.

Sources Consulted As referenced in the footnotes.

1 https://www.statista.com/statistics/632260/adidas-brand-value/#statisticContainer

2 https://www.statista.com/statistics/632210/nike-brand-
value/#:~:text=Global%20brand%20value%20of%20Nike%20from%202016%20to%202020&text=In
%202020%2C%20the%20Nike%20brand,billion%20U.S.%20dollars%20from%202019.

3. https://www.statista.com/statistics/985227/brand-value-comparison-of-nike-and-adidas-
worldwide/#:~:text=The%20brand%20value%20of%20Nike,following%20two%20years%20of%20dec
line.