Nagindas Khandwala College of Commerce, Arts & Management

Project on : Nike Vs Adidas
Submitted by: Premal M. Mistry
TYBMS Project Guide : Prof. Swapna

Academic year 2009-2010

Vs

ACKNOWLEDGEMENT
Co-ordination, Co-operation and Command of the people at various levels go into the successful accomplishment of any task assigned to them. It is impossible to thank each of them individually but hereby I am making a sincere effort to thank some of them. In my whole endeavor to complete this project, I own immense gratitude to my project guide Prof. Swapna for extending her guidance and co-operation through this project. I am highly indebted to NKBMS co-ordinator Prof. Mona Bhatia for her continuous support and encouragement. Last but not least, I express my sincere gratitude to all the respondents who helped me in the project.

Vs

Executive Summary
Title of the Project : Adidas Vs Nike
 From past many decades people are getting more into sports as a recreation as well as an entertainment.  Hence, sports materials and equipments especially the shoes that are used in various sports are demanded much higher.  Nike is the leader in the athletic shoe industry after which comes Adidas.  So this clearly states that they are Giants in athletic footwear industry and are highly competing each other.  In this study most of the factors are covered that affects the competition of Nike and Adidas.  It contains all the details of Nike as well as Adidas.  And there also a survey conducted, considering various factors of Nike and Adidas.  Lastly, there is a conclusion which makes us understand that Nike is a bit better that Adidas but still Adidas is better in some areas which means that there is a healthy competition between them.

Vs

Objectiveof the Study
Primary Objective
 To understand the competition between two Giants in the market.  To measure the effectiveness of advertisement / promotional activities for a competing product class and corporate advertising.  To understand and measure various factors that affect brandbuilding, brand re-call and finally the choice of customers while buying it.

Secondary objective
 To understand the competition between Nike and Adidas.  To understand Athletic footwear industry.  To know how they face their competitor’s strategies.  To know how they survive in the cutthroat competition.

LIMITATIONS OF STUDY
1. The sample size may not adequately represent the national market.
2. This

study has not been conducted over an extended period of time, it do not consider any changes due to changes in the market conditions.

When hard-soled. however. protective footwear began to provide greater grip and balance. still in existence. although insulating foot coverings may have been in use as early as 500. more inclement climates of Europe and Asia.with the history of shoes. our ancestors.000 years ago in the northern climates by other early hominids.000 years ago and as they moved north into colder.000 years ago. Prior to shoes. freezing snow. a need arose for foot coverings to protect the feet from the environment.000 to 40.Vs Introduction to shoes The History of Shoes Introduction Shoes have always held a special status for humans. According to scientific research. flexible toes used for gripping and balance. Scientists believe that the first shoes were made during the Ice Age. The idea of protective footwear or shoes came much later and shoes were not in widespread use until approximately 26.000 years old and were found in California. the first modern humans.or would that be foot in shoe . Science can't say for certain why humans stopped going barefoot. are about 9. smaller toes. but the use of shoes does show in the skeletons from the time period. the largest discovery of primitive shoes was . humans had large. resulting in weaker. strong.000 to 200. Primitive Shoes The oldest shoes in the world. those regularly shod people lost the muscles and heavy bone structure in their feet. such as Neanderthals and homo erectus. the history of modern human development goes hand in hand . or other rugged terrain. walked out of Africa between 100. Whether as symbols of wealth and status or as simple protection from jagged rocks.

Late Middle Ages & the Tudor Era By the late middle ages and the Tudor period (1450-1600). began in Massachusetts. the first shoes made right-side out on a last (a mold) were developed in Germany and spread throughout Europe. Colonial shoes were stiff leather shoes. prehistoric shoes were highly perishable and little evidence exists of their design. and other common folk. Because of the plant and animal used to make them. Lengths of fur were attached sometimes to the leather soles and worn to protect the legs from the weather. Pattens or clogs became common as an overshoe for protection from water or mud. High heels became fashionable for men and flat shoes with criss-crossed ribbons in imitation of classical sandals were a mainstay for women. fashion of the previous eras reversed themselves.In 1828 a foreman by . Square toed shoes were popular the beginning the century while in the early 18th century women began wearing high heeled slippers again. shoe designs had been standardized.an innovation later lost to Western civilization. Early American Shoes The complexities and cost of carving compound curves into the last (the form that the shoe is molded over) and then making a mirror image for the other foot limited ownership of such shoes to the very rich. Soles were made of cowhide and the shoes were filled with grass to keep the feet warm. Those shoes that scientists have been able to study consist of an oval piece of leather with the edges turned up and bound with strong leather thongs. Advances in shoe construction technique allowed heavier soles to be attached to shoes and by 1480. with slight heels and buckles. The simple turnshoe remained as a less expensive alternative for laborers. but advances in shoemaking and the roots of the shoe industry in the U. The 17th and 18th Centuries / "Baroque" Era In the 17th century.Vs uncovered in Missouri and show evidence of being distinct right and left foot shoes .S. sailors.

A Philadelphia shoemaker thought that Blanchard's new duplicating lathe was also ideal for making shoe lasts and soon discovered that. the time during the reign of English Queen Victoria. With the birth of basketball came the birth of the Sneaker Era. was simply not possible. could be called a time of ridiculously proper manners. and King Henry VIII was reported to have worn a sneaker-like shoe for playing tennis. of canvas. Still these are not the oldest sneakers. first produced in 1917. James Naismith created the game of basketball to tame a crowd of unruly students at Springfield College during the harsh New England winters. it seems that shoes that were produced just a few miles from the birthplace of basketball just two years after the invention of the game would certainly have been used for basketball. The Sneaker Era The word sneaker is traditionally defined a shoe consisting of a solid rubber sole attached to an upper made. While there is no significant evidence to point to the use of these shoes for basketball. Victorian Era The Victorian Era. Until that time. Connecticut who went out of business in 1893. but the Spalding company produced shoes in 1907 specifically for the game of basketball. In 1891. the sneaker as we know it now. A discovery at an estate sale has led experts to believe that the first basketball shoes were produced by Colchester Rubber Company of Colchester. by reversing the cam which guided the cutter. usually. The oldest sneakers used for basketball are thought to be the Converse All Stars. a mirror image could be produced. .Vs the name of Blanchard at the Springfield Armory in Massachusetts developed a duplicating lathe for the manufacture of gun stocks. While rubber soled shoes called plimsolls had been in use for some time for aristocratic lawn sports. the true life of the sneaker did not begin until American inventor Charles Goodyear patented the process for vulcanization of rubber. The social and moral values as well as fashion were influence by Queen Victoria. Victorian life also generated an interest in sports and other physical activities.

U. At first the market for sneakers was small and practically invisible. The market for sneakers grew steadily as young boys lined up to by sneakers endorsed by football player. World War II interrupted production of sneakers for the public as factories switched to produce items in support of the massive war effort and raw materials became scarce. Adidas would be founded in Herzogenaurach. Puma. The Baby Boom began and sneakers officially became the choice shoe for American youth as school dress codes relaxed. The revived Olympic Games provided exposure and heightened interest in sneakers and sports in general. including B. were producing tennis shoes and smaller family-owned companies were manufacturing early cleated shoes. including James . introduced Keds in 1916 while Converse introduced the first mass marketed basketball sneaker in 1917 with their introduction of the Converse All Star . Other companies. was also founded at this time after Rudolph Dassler split with Adi Dassler in a feud. Hollywood officially sanctioned this fashion with a string of movies featuring actors in sneakers.Vs By the early 1900's. manufacturers added traction to the soles of their sneakers and began marketing them for different sports. Another major brand.F. a conglomerate of nine other rubber companies. Goodrich and Spalding Co. A major innovation of this time was the production of distinct models for boys and girls. leading to increased sales. Jim Thorpe and Converse All Stars endorsed by basketball player. the slow rise in the popularity of sneakers resumed.. German manufactured sport shoes would dominate the market until the late 1960's with the founding of current market leader. sneakers were being produced by small rubber companies who specialized in the production of bicycle tires. Nike. It was at this time that the German sneaker manufacturer.S. After the cessation of hostilities. America turned to sports and physical health as a way to demonstrate moral fiber and patriotism. Rubber. Sneakers were known for comfort and used almost strictly for athletic endeavors. In the 1920's and 30's. Rudi Dassler set up shop across town and the Puma brand was born The Sneaker Era Part II The 1950's witnessed another increase in the amount of leisure time available to families. Chuck Taylor. but after World War I.

basketball shoes-every sport needed its own shoes. sneakers suddenly became athletic shoes and major brands like Nike and Reebok divorced themselves and their products from the humble rubber and canvas sneakers and their history as technology advanced. Today. It is interesting to note that during the period of time between the 1970's and the 1990's.and then you needed another pair of sneakers for just casual wear. Hip hop performers popularized several brands during the late 80's and soon stories began appearing in the news about children being shot for their sneakers. but now they began to focus on marketing shoes for a lifestyle purpose.Vs Dean and his Converse Jack Purcells in West Side Story. By the 80's. Sneakers were imported from Japan in the early 60's. running shoes. A major footnote in the Sneaker Era is the signing of basketball player Michael Jordan to a contract with Nike to produce and endorse his own signature line of shoes. football shoes. and Dustin Hoffman wore them while playing reporter Carl Bernstein in the movie All the President's Men. Shoes for walking. Newer companies came in and out of fashion and the industry began shelling out large amounts of money for sports endorsements. the Nike Swoosh and the Jordan Jumpman are icons and require no introduction. The history of sneakers or athletic shoes as manufacturers would prefer them to be called became diversified at this point and is reflected best in the individual histories of the major brands . Technology created a need for exercise apart from work and the shoes to perform this exercise. The shoes originally developed for sports became the mainstay for most people. leading leather shoe manufacturers to issue ads claiming that sneakers were bad for children's feet and the sneaker manufacturers to respond with claims that sneakers cured the syndrome of "inhibited feet". Sales of sneakers soared to 600 million pairs a year in 1957. but accounted for only a small portion of the market until Nike founders Phil Knight and Bill Bowerman began importing Tiger shoes under the name Blue Ribbon Sports. Sneakers came into their own in the 70's as jogging became the new fashionable sport and created a need for a special shoe used just for the purpose of jogging. Shoe companies perfected their fashion and marketing skills by the 1990's. Led Zeppelin wore them in their 1976 documentary. Sneakers became a statement and definition of identity and personality rather than humble athletic aids. sneakers were everywhere. Woody Allen wore them to the ballet. Nike and Reebok were the market leaders while older brands Adidas and Converse were nearly in ruins. Sports endorsements grew larger and marketing budgets went through the roof. manufacturers had been concerned with high production. Until this time.

Australian English). dancing and jumping. appropriate tread for the function intended and ability to absorb impact. Many of these shoes are made up to a very large size because of athletes with large feet. As the industry and design have expanded. Use in sports The term athletic shoes is typically used for running in a marathon or half marathon. tennies. sneakers. and tennis (amongst others) but tends to exclude shoes for sports played on grass such as association football and rugby football. While the original design was basic. gym shoes.Vs Athletic shoes (Introduction) An athletic shoe is a generic name for footwear designed for sporting and physical activities. Athletic shoes. which are generally known as "boots". typically featuring a sole made of dense rubber. . sport shoes. tennis shoes (North American English. The shoes themselves are made of flexible compounds. runners or gutties (Canadian English. Today's designs even include sandal. sandshoes. may also be referred to as trainers (British English). sneaks. the term "athletic shoes" is based more on the design of the bottom of the shoe than the aesthetics of the top of the shoe. Australian English. manufacturers have since tailored athletic shoes for the different purposes that they can be used for. depending on the location and the actual type of footwear. or takkies (South African English) and rubber shoes (Philippine English) canvers (Nigerian English). basketball. Hiberno-English). or in North America as cleats. gym boots or joggers (Australian English) running shoes. Attributes of an athletic shoe include a flexible sole. mary jane and even elevated styles suitable for running. A specific example of this is the spiked shoe developed for track running.

Generally. gait etc. overpronation and underpronation (supination) running shoes to fit the respective foot strike of the runners.Vs High-end marathon running shoes will often come in different shapes suited to different foot types. these shoes are divided into neutral. There are a variety of specialized shoes designed for specific uses:          Racing flats Track shoe Skate shoes Climbing shoe Approach shoe Wrestling shoes Cleats Football boot Dance Shoe .

synthetic leather. The Outsole The outsole. the part of the shoe that comes in contact with the ground. The most famous shoes to have an all canvas upper are the Converse All Stars. and it is the first stage of cushioning for the shoe. and EVA. provides durability. and the Nike After Party for women may have a canvas upper. polyurethane. There are four types of materials used in commercially produced sneakers. one model of sneaker can vary greatly from another. Midsole materials are Phylon. Casual sneakers like the Air Force One (Nike) or Superstar (Adidas) have become icons in today's pop culture. and the outsole. The Upper Uppers. The five most commonly used materials for outsoles are as follows: . the Air Force 1. usually come in one of three materials. Sneaker Technology When it comes to sneaker technology. retro and vintage models. The Midsole Midsoles are used to cushion and provide support and protection for the foot. Midsoles are often constructed of a combination of materials. the midsole. fancy designs and bright colors that holds the shoe together. and mesh. leather. shoes are divided into three major areas: the upper. called "Sneakerheads". Depending on the materials and combinations used. Converse and casual shoes like the Nike Vandal. the top part of the shoe with the laces. use sneakers as fashionable items. Artistically-modified sneakers can sell for upwards of $500. Phylite.Vs Sneaker culture Sneaker collectors. Patterns on the outsole vary according to the needs of the sport. Special editions.

Vs Brands List of athletic shoe brands Large brands include:                          Adidas ASICS Clae Converse DC Shoes Fila Gola Heelys K-Swiss Keds Keen Lacoste Lonsdale Mizuno New Balance Nike Pony PF Flyers Puma Reebok Saucony Sperry Top-Sider Starbury Supra Vans .

The spikes at the front help the athlete to gain speed in the runup.The shoe is light and flexible which helps the athlete achieve speed over a short distance before jumping. When viewing the table consider how much trainer technology has advanced in the last 100 years. The following table provides details about specific sports shoes. This prevents the foot from moving in the shoe.Vs Sports shoe guide The runner with the spikes should feel that he had more grip on the track. These events require speed both on the ground and in the air. The sole tends to be both firm and flexible allowing extra bounce in the jump.This shoe has to have spikes. This gives maximum support and comfort. Support is crucial. Javelin This type of shoe has to be robust and durable. Athletes drag their feet along the ground during the throw. They provide the Jumps and pole vault . High Jump This type of shoe has a much thicker sole. The spikes are once again very important. Javelin shoes look more like boots with protection around the ankle. The four spikes t the heel provide grip when the athlete takes off. Most of them feature strapping. hardwearing material. As a result the shoe has to be made from a tough. In most cases straps have replaced the laces.

These help the athlete to spin Sprinting This type of shoe has to be lightweight and offer flexibility at the front. Long Distance These shoes have to be both durable and flexible.Spikes are .These types of shoes do not have spikes but have a hard sole. The cushioning is also very important. The sole tends to have circular grooves on the balls of the feet.Notice the spikes tend to be just at the front of the shoe. They all tend to have spikes.A mesh is sometimes added in the upper part of the shoe to allow the foot to breathe. A hooked strap over the toe helps to prevent the feet from moving sideways during the build up to the throw.Vs grip before the jump. This lengthens the lifespan of the shoe. Most Olympic Athletes have their shoes specially made. They are able to cope with lots of different types of surfaces. also this about the sweat factor. which are located at the front. Comfort is a real priority. The Throws The shoe has to allow the athlete to throw and spin.

Vs sometimes added but are not essential. .

market for athletic footwear includes all producers of noncleated. and casual wear. there is some degree of overlap between most segments.S. tennis. there are mini-markets for shoes designed for each of many sports and other purposes: basketball. Adidas and Reebok. walking. For instance. while the majority of other players have less than 5% market share. rubber and plastic footwear designed in an athletic style or for athletic use. segmented.Vs INTRODUCTION TO ATHLETIC FOOTWEAR INDUSTRY Market Analysis The U. before the merger of the #2 and #3 firms. The greatest overlap between these categories is between performance shoes and casual wear. The industry is dominated by a few large firms. Therefore. One can walk or play basketball in running shoes. Many people wear running shoes or basketball shoes on a daily basis in a non-athletic setting. yet often overlapping markets. The industry is a collection of smaller. running. The graph below shows the market share breakdown by sales volume for 2004. Athletic Footwear Industry Market Share by Sales Volume 3% 5% 6% 42% 12% 2% 1% 1% Nike Adidas Reebok Puma New Balance Skechers K-Swiss Vans Asics 27% Saucony . defined by both the price and the purpose of the shoes.

Consumers associate themselves with a particular brand and tend to stick with the brand with which they are comfortable. Entry to the industry is difficult as brand loyalties are high. The United States is the world’s largest importer 2500 Domestic Production vs. The brand image of the major firms is created by extensive marketing campaigns and celebrity endorsements.Vs This graph shows market share after the merger of Adidas and Reebok. The success of each firm is greatly dependent upon its marketing campaigns. on strategies such as strengthening brand image and increasing product proliferation. The graph at 2000 1500 1000 500 0 Imports Domestic Production 68 80 90 95 97 99 01 20 19 19 19 19 19 19 20 03 . Imported Footwear (Millions of Pairs per Annum) of athletic footwear. which is primarily manufactured in Asian nations. These firms fight for market share through non-price competition.

The following provides an analysis of Porter’s Five Forces relating to the athletic footwear industry. The sneakers are then distributed to major retailers and are sold to the consumer through a variety of channels. Most firms design the sneakers and outsource their manufacturing to foreign producers. substitutes and complements.Vs right shows the trend in US footwear production and imports. supplier power. . internal rivalry. entry barriers. and buyer power.

The Mizuno X Brooks AND1 Puma Nike Spira Asics Vans . K-Swiss in tennis. For example. Adidas. Reebok. Type of Converse Shoe\Company Reebok Adidas New Balance K-Swiss Stride Rite Corp Running Walking Basketball Children’s Tennis Lifestyle Skating Cross-Training Soccer X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X X There are only a few firms who compete in every sector of the market with regards to intended purpose (as well as price): namely Nike. The means by which firms compete with respect to price is by introducing products at several different price levels in order to reach all areas of the market. Smaller firms usually specialize in particular types of shoes. and New Balance. Brooks and Asics specialize in running.Vs INTERNAL RIVALRY Market Description Price competition in this industry is relatively non-existent in its traditional form. and Vans in skating and lifestyle shoes. This results in a collection of specialized markets with far fewer firms competing than in the overall market for athletic footwear.

As seen in the above table. Other sneakers. running footwear accounts for 25% of total athletic shoe sales and has been experiencing the strongest growth. In terms of growth and sales for individual categories. With athletic footwear. the products are somewhat differentiated by design but the players also try and emphasize the differences in their advertising. Women’s footwear sales were up 11-13% overall. Its sales have increased by nearly 25% in certain countries. As a result. sneaker industry is considered a mature industry although the numbers in the table below.Vs following chart shows the companies that participate in the various segments of the market as defined by the left column. there is an emphasis on non-price competition. In the sneaker industry. and firms attempt to produce shoes that compete in several different price brackets. consumers consider both price and purpose. on footwear sales in the last decade. while skating shoe sales declined nearly 10%.S. this is the category with the most participants. The U. suggest that there is still some amount of growth in the overall market. such as those designed for basketball have been experiencing no growth at all. .

S. Branded Athletic Footwear Sales (Millions of $) Revenue s Nike Reebok New Balance Adidas K-Swiss Convers e Puma Other Total 2005 E 3358 1141 1995 2529 1405 1996 3261 1193 1997 3797 1229 1998 3252 1062 1999 3325 909 2000 3327 926 2001 3128 931 2002 3052 932 2003 3005 1036 2004 3225 1087 151 355 89 201 390 76 265 465 92 346 910 145 550 845 264 750 840 197 794 700 205 910 810 245 910 750 369 1022 790 395 1053 822 403 208 32 2134 6574 194 23 2170 7215 285 23 2227 7983 167 32 1826 7396 132 43 1857 7486 144 58 1961 7804 133 82 2120 7672 181 121 2290 7994 245 172 2552 8253 305 209 2766 8890 320 230 2828 9201 .Vs U.

7 0.2 11.6 100 303 920 203 180 305 141 140 175 287 191 126 141 873 20411 1. Turntec) Asics Keds/Pro-Keds Foot-Joy Fila Saucony Sole Technology And 1 Mizuno Hi-Tec Brooks Lotto Other Total U.4 4.4 1.Vs Branded Athletic Footwear Market Share *Sales in millions of wholesale $ Company Nike Reebok New Balance Adidas K-Swiss Converse Vans Puma American Sporting Goods (Avia.9 4.4 3.4 0.5 1.4 Global Sales 6780 1963 1357 3150 480 905 395 1396 Global Market Share (%) 33.S.9 0.9 6.1 1.9 1.4 1.5 4.1 2.6 6. Ryka.5 8.S.8 205 197 136 124 120 104 100 95 59 59 54 7 319 8890 2.3 1. Sales* 3225 1087 1020 795 395 305 275 209 U.3 100 .2 9.9 1.4 2.2 1.1 3.3 2. Market Share 36.1 0. Nevados.7 0.6 0.7 0.3 12.6 0.4 3.6 15.7 4.2 1.7 0.5 0.5 1 0.

443 billion (2008) Total equity ▲ US$ 7. Oregon. Apparel.627 billion (2008) Operating income ▲ US$ 2.199 billion (2007) Net income ▲ US$ 1. Knight(Chairman).Mark Parker(CEO) & (President) Designing and Manufacturing. United States Worldwide Philip H.Vs Founded: Founder(s): Headquarters: Area served: Key people: Industry: Products: Revenue 24 January 1964 William J.Sportswear.883 billion (2008) Total assets ▲ US$ 12.825 billion (2008) Employees 30.Sports equipment Athletic shoes. "Bill" Bowerman . Philip H. Accessories ▲ US$ 18.200 (2008) . Knight Beaverton. Sports equipment.

Converse retro-style sneakers. up from 14% four years ago. a leader in the global sports shoes industry announced a vastly improved performance. In the past few years. Nike had faced a crisis in the late 1990s. earning almost $1 billion on sales of $12. Nike. Nike had operated on instinct.C. Many analysts felt this was because its creativity had not been backed by operational discipline. Nike had tried to balance creativity with a strong business focus. When founder Phil Knight resigned on 18th November 2004.Vs For the year ended 31st May 2004. often guessing how many pairs of shoes to produce and hoping it could offload them in the market.7%. Nike had overhauled its information systems to get the right number of shoes to the market more quickly. As 2004 drew to a close. and Bauer in-line and hockey skates. Nike had plans to buy back shares worth $1. Having completed a $1 billion share repurchase.5 billion over the next four years. Perez. Earnings had increased by 27% while orders worldwide went up by 10. Perez had earlier been president and chief executive of S. It focused on more efficient management of its portfolio of brands -. it marked the beginning of a new era at Nike under the leadership of William D.Cole Haan dress shoes. Nike realized it could not underestimate powerful competitors such as adidas. Nike's return on invested capital was 22%. The company had also streamlined logistics and strengthened its management team. . Hurley International skateboard gear. Johnson & Son.3 billion.

golf. swimwear. children's. athletically inspired lifestyle apparel. Nike also marketed apparel with licensed college and professional team and league logos. Footwear products were mostly produced outside the US.Vs Nike's Business Nike was involved in the design. cross-training and women's shoes were Nike's top-selling product categories. maternity exercise wear. Nike sold sports apparel. apparel. The largest seller of athletic footwear and athletic apparel in the world. hiking. volleyball. eyewear. soccer. apparel and accessories in "collections" of similar design or for specific purposes. development and worldwide marketing of high quality footwear. Nike sold sports balls. school supplies. basketball. Nike's athletic footwear products were worn for both casual or leisure purposes. Running. as well as athletic bags and accessory items. Independent contractors manufactured most of Nike's products.000 retailers in the US and various independent distributors. gloves. and other athletic and recreational uses. Nike offered its products through approximately 18. equipment. and accessory products. aquatic activities. timepieces. bicycling. Nike also offered shoes designed for outdoor activities like tennis. Nike often marketed footwear. and other equipment designed for sports activities. licensees and subsidiaries in nearly 200 countries around the world. . bats. cycling apparel. and electronic media devices. wrestling. baseball. timepieces. while apparel and equipment were made both in the US and abroad. football. children's clothing. skates.

. and hockey jerseys. hockey sticks. and Bragano through its wholly-owned subsidiary. Bauer also offered various products for street and roller hockey. in-line roller skates. Bauer NIKE Hockey Inc. Nike sold a line of dress and casual footwear. Another wholly-owned subsidiary Hurley International offered a line of action sports apparel (for surfing.Vs Nike also sold various plastic products to other manufacturers through its wholly owned subsidiary. apparel and accessories for men and women under the brand names Cole Haan®. skate blades. Cole Haan Holdings. and plastic injected and metal products to other manufacturers through its wholly-owned subsidiary. licensed apparel and accessories under the Bauer® and NIKE® brand names. Nike's wholly-owned subsidiary. protective gear. BAUER Italia S p A. offered ice skates. skateboarding. Inc. NIKE IHM. CH. Cole Haan. Gseries by. and snowboarding) and youth lifestyle apparel and footwear under the Hurley brand name .

. Knight became one of the richest men in the world. Nike replaced adidas as the leading athletic shoe company in the American market. The 1970s In 1971. The leading track shoes of the time were being produced by European companies. adidas and Puma. after five years of rapid growth at an annual rate of 44%. a keen athlete and an undergraduate at the University of Oregon and his track coach Bill Bowerman realized the need for a good running shoe.. inspired by the Greek winged Goddess of Victory. Nike failed to anticipate the emerging market for aerobic shoes. . Knight and Bowerman decided to develop a distinctive trademark and a new brand name 'Nike'.. having concentrated its efforts on casual shoes. When Nike went public..Vs Early History In 1958.. Phil Knight. The 1980s In the early 1980s. But in the mid-1980s..

Association football. Product Nike produces a wide range of sports equipment. for a wide range of sports including track & field. Nike introduced the Air Jordan XX3. including shoes and apparel for sports activities like association football. lacrosse. Nike also sells shoes for outdoor activities such as tennis. Nike NYX.Vs Marketing Mix Nike's marketing strategy is an important component of the company's success. women. baselayers etc. shorts. Nike sells an assortment of products. tennis. golf and cross trainingfor men. Nike lures customers with a marketing strategy centering around a brand image which is attained by distinctive logo and the advertising slogan: "Just do it". Nike promotes its products by sponsorship agreements with celebrity athletes. a high performance basketball shoe designed with the environment in mind. selling well-designed and expensive products. designed to be 30% lighter than their competitors'.[13] In 2008. designed for skateboarding. running. American football.0. . They currently also make shoes. jerseys. in 1987. and children. Nike Air Max is a line of shoes first released by Nike. ice hockey. tennis. baseball. athletics. Nike has recently introduced cricket shoes. Inc. basketball and cricket. The most recent additions to their line are the Nike 6. called Air Zoom Yorker. combat sports. and Nike SB shoes. professional teams and college athletic teams. Their first products were track running shoes. basketball. Nike is positioned as a premium-brand.

concealable intelligence motes in a wireless sensor network. it has been criticized by researchers who were able to identify users' RFID devices from 60 feet (18 m) away using small. In 2004. designed by Phil Frank. Some of Nike's newest shoes contain Flywire and Lunarlite Foam. cheerleading. . baseball. chav culture and hip hop culture as they supply urban fashion clothing. they launched the SPARQ Training Program/Division. wrestling. cycling. volleyball. to produce the Nike+ product which monitors a runner's performance via a radio device in the shoe which links to the iPod nano. In the video game Gran Turismo 4 there is a car by Nike called the NikeOne 2022.Vs golf. American football. Nike recently teamed up with Apple Inc. Nike is well known and popular inyouth culture. While the product generates useful statistics. association football. auto racing and other athletic and recreational uses. aquatic activities.skateboarding. These are materials used to reduce the weight of many types of shoes.

. innovative products. Supply Chain a Competitive advantage Deepening relationships with customers. Delivering superior.Vs Pricing Strategy > Nike Comes under Ceiling price > The cost of making one pair of Shoes is less than $25 > But it adds more than $15 for Compensating & paying for R&D. Advertisement and sales team > To add up the total cost for one pair of shoes will be $80 Strategies Policies      Accelerating growth through focused execution.

Nike also has one of the most famous slogans around: “Just Do It!” According to Nike . She met Phil Knight while he was teaching accounting classes and she started doing some freelance work for his company. In spring of 1972. “Advertising Age estimated global measured advertising expenditure of $308 million in 2006. Nike is undisputed leader in sports-oriented street wear. the Nike "swoosh" logo came to symbolize not just sports culture. making Nike the world's #89 advertiser . the company established itself as one of the world's most familiar brands during the 1980s and 1990s. 1996). Nike athletic shoes were targeted at men and women aged between 18 and 34 years. he handed her $35.00.Vs Promotion Nike positioned its products as high performance shoes designed with high technology features. as the appeal of the star players who endorsed the brand was carried onto city streets. but street culture. Phil Knight asked Caroline to design a logo that could be placed on the side of a shoe. Nike's advertising was largely in the form of cooperative arrangements with retailers who inserted ads in local newspapers. Till 1976. Not only does Nike have one of the famous logo. except for the routine purchase of space in running publications. Nike is the world's #1 manufacturer and marketer of athletic footwear and apparel. It represents the wing of the Greek Goddess Nike. Nike has been using the same logo ever since they established the famous swoosh. She handed him the swoosh.and now 2000s. The swoosh logo is a graphic design created by Caroline Davidson in 1971. Caroline Davidson was a student at Portland State University in advertising. Almost out of the blue. the first shoe with the Nike swoosh was introduced (from Nike Consumer Affairs packet. As familiar as a Coke bottle or Big Mac.

basketball or tennis shoe. who created what many consider Nike's first 'brand advertising' in 1977. the company hired its first outside ad agency. Nike continues to lure customers with a marketing strategy centering around a brand image which is attained by th distinctive logo and advertising slogan. The success of this simple ad inspired Nike to create a poster version that launched the company's poster business. From 1972 to 1982. you just do it. it was coined at a 1988 meeting of Nike’s ad agency Wieden and Kennedy and a group of Nike employees. essentially outlining the benefits of the running.” Then the brilliant slogan came about. This would mark the beginning of a remarkably successful partnership between Nike and W+K that remains intact today. A print ad with the tagline "There is no finish line" featured a lone runner on a rural road and became an instant classic. In 1976. Most of the early advertising was focused on a new shoe release. speaking admiringly of Nike’s can-do attitude.. John Brown and Partners. 2003). Nike relied almost exclusively on print advertising in highly vertical publications including Track and Field News. In 1982. created by newly formed ad agency Wieden+Kennedy. the first and only company to receive that honor twice (1994.. . The Cannes Advertising Festival has named Nike its 'advertiser of the year' on two separate occasions. “You Nike guys. It is my belief that Nike's power to sell comes from deep-rooted desire for cultural. during the New York Marathon. Dan Weiden. Nike aired its first national television ads. reportedly said.Vs company lore.

Nike sells its products in international markets through independent distributors. and subsidiaries. The company also has a program called NIKEiD at nikeid.Vs Place Niketown at Oxford Street. (including Nike's own outlets and "Niketown" stores) and in approximately 160 countries in the world. . which allows customers to customize designs of some styles of Nike shoes and deliver them directly from manufacturer to the consumer.London Nike sells its product to more than 25.S.000 retailers in the U. licensees.com.

Vs Business Segments . Approximately 45% and 40% of the company's 2008 footwear sales occurred in the United States and EMEA regions. Footwear sales increased 14% in 2008. basketball. particularly in running. and soccer. reaching about $9. cross-training.7 billion. and accounted for 52% of Nike's 2008 revenue. although Nike also sells sport-inspired casual footwear like its Air Force Ones footwear line. . respectively.Nike Footwear (52% of Revenue) Nike specializes in athletic footwear. Much of the growth in footwear revenue is attributed to the 8% increase in footwear sales in the EMEA region.

Hurley International. t-shirts. Nike attributes much of this revenue growth to a 25% increase in sales in emerging markets like Russia in the EMEA region as well as a currency-neutral 50% increase in revenues from China. protective equipment.07 billion in 2008. a 14.Vs Apparel (28% of Revenue) Nike sells sports apparel such as running shorts.4% increase from a year earlier. accounting for 40% the company's revenue earned from apparel. Apparel sales totaled $5. and licensed apparel (with logos of college and professional sports teams). Cole Haan. which accounted for 40% of the company's equipment sales. This increase was driven primarily by an 18% increase in equipment sales in the EMEA region. . Sales of Nike branded equipment reached $1. and golf clubs. Other (14% of Revenue) Nike also sells apparel and footwear under the Nike Golf.2 billion in 2008. and Umbro brand names. Equipment (6% of Revenue) Nike also sells sports equipment such as balls. Converse. which can mainly be attributed to significant growth in the Nike Golf and Converse segments. or $2. The EMEA region accounts the majority of Nike's apparel sales. This represents a 15% increase in sales from 2007.6 billion in 2008. Nike earned approximately 14% of its revenue. a 9. from these segments.5% increase from 2007.

Vs

SWOT Analysis OF NIKE Strengths.

Nike is a very competitive organization. Phil Knight (Founder and CEO) is often quoted as saying that 'Business is war without bullets.' Nike has a healthy dislike of is competitors. At the Atlanta Olympics, Reebok went to the expense of sponsoring the games. Nike did not. However Nike sponsored the top athletes and gained valuable coverage. Nike has no factories. It does not tie up cash in buildings and manufacturing workers. This makes a very lean organization. Nike is strong at research and development, as is evidenced by its evolving and innovative product range. They then manufacture wherever they can produce high quality product at the lowest possible price. If prices rise, and products can be made more cheaply elsewhere (to the same or better specification), Nike will move production. Nike is a global brand. It is the number one sports brand in the World. Its famous 'Swoosh' is instantly recognisable, and Phil Knight even has it tattooed on his ankle.  Strong management team and good corporate strategy in both North American and overseas markets.  First mover advantage in e-commerce.  Brand recognition and reputation.  Diversity and variety in products offered on the web (footwear, apparel, sporting equipment, etc.)  Strong control over its own distribution channel.  Strong customer base.  Strong financial position with minimal long term debts.  Innovative designs in footwear enabling consumers to design their own shoes online.  Diversity and variety in products offered on the web.  Emerging brand name.

Vs

Weaknesses

The organization does have a diversified range of sports products. However, the income of the business is still heavily dependent upon its share of the footwear market. This may leave it vulnerable if for any reason its market share erodes. The retail sector is very price sensitive. Nike does have its own retailer in Nike Town. However, most of its income is derived from selling into retailers. Retailers tend to offer a very similar experience to the consumer. Can you tell one sports retailer from another? So margins tend to get squeezed as retailers try to pass some of the low price competition pressure onto Nike.  Negative image portrayed by poor working conditions in its overseas factories.  E-commerce is limited to USA.  The direct sale to consumers is creating conflicts with its own resellers.  Currently available supply chain, manufacturing, and fulfillment technologies aren't known for its researcheasily integrated with online build-to-order systems and development leading to innovative designs.  The e-commerce is limited to USA, however, has planned to expand to Canada and international in the near future.  Online customer service not "helpful" or easy to find.

Opportunities.

Product development offers Nike many opportunities. The brand is fiercely defended by its owners whom truly believe that Nike is not a fashion brand. However, like it or not, consumers that wear Nike product do not always buy it to participate in sport. Some would argue that in youth culture especially, Nike is a fashion brand. This creates its own opportunities, since product could become unfashionable before it wears out i.e. consumers need to replace shoes. There is also the opportunity to develop products such as sport wear, sunglasses and jewellery. Such high value items do tend to have associated with them, high profits. The business could also be developed internationally, building upon its strong global brand recognition. There are many markets that have the disposable

Vs

income to spend on high value sports goods. For example, emerging markets such as China and India have a new richer generation of consumers. There are also global marketing events that can be utilised to support the brand such as the World Cup (soccer) and The Olympics. Threats.

Nike is exposed to the international nature of trade. It buys and sells in different currencies and so costs and margins are not stable over long periods of time. Such an exposure could mean that Nike may be manufacturing and/or selling at a loss. This is an issue that faces all global brands. The market for sports shoes and garments is very competitive. The model developed by Phil Knight in his Stamford Business School days (high value branded product manufactured at a low cost) is now commonly used and to an extent is no longer a basis for sustainable competitive advantage. Competitors are developing alternative brands to take away Nike's market share. As discussed above in weaknesses, the retail sector is becoming price competitive. This ultimately means that consumers are shopping around for a better deal. So if one store charges a price for a pair of sports shoes, the consumer could go to the store along the street to compare prices for the exactly the same item, and buy the cheaper of the two. Such consumer price sensitivity is a potential external threat to Nike.  Continuing challenges in import/export duties.
    

Threats to free trade and foreign currency fluctuations. Possibility of distress from growing beyond its capabilities. Growing Competition Fashion Shifts in Footwear market Adidas/Reebok Merger

Vs

Nike and Converse

In 2003, Nike purchased Converse. One reason was to add a lifestyle shoe to their product line that would appeal to a group that did not already buy Nike products Converse was a good acquisition because Nike wanted to capture the typical Converse consumer, who looks for retro sneakers like Converse’s longestablished Chuck Taylor line. Maintaining these customers required that Nike not taint the Converse products with their own brand name, therefore, Nike has allowed Converse to continue to operate as a separate entity (Marseille and Roos 2005).

Vs VIRTUAL VALUE CHAIN PHYSICAL COSTS • • • • • Outsource non-core activities Allows Nike to focus on their core competencies of: Product Design Marketing AIR SOLE Technology • Having a virtual relationship with suppliers and the companies who assemble Nike products allows them to: • • Reduce administrative costs Payroll costs. .

• Although geography may separate them they can still communicate electronically. Ship the finished products to distributors worldwide. and consulting services to run their new supply-chain project. SPEED • Having a virtual supply chain. Suppliers send these shoe parts to the assembly companies. DIVERSITY OF SUPPLIERS • A VSC allows a company to search for and use a wider range of suppliers.Vs • Switch to companies that provide low labor costs and a quality product. • Having multiple suppliers that you can trust allows you to avoid emergencies in your supply chain. . software. • With more suppliers available a company is more flexible. Nike can increase the speed their product flows through the supply chain. • • • Send new designs to suppliers who produce shoe parts. • This allows them cut down on the amount of time required from the initial design. NIKE'S WORLDWIDE SUPPLY-CHAIN PROJECT • Nike is using HP servers. to production and then distribution.

Nike's Soccer sales were nearly $1 billion. For the first time. or 25% of the global market. Nike paid the prestigious Manchester United club an unprecedented $450 million over 14 years to run its merchandising and uniform operations. Nike had achieved rapid growth in part by using the aggressive marketing tactics that made it big in the US. . exceeded that of adidas (31%). • • • The goals of the project included: Enhancing Nike's ability to respond to changing conditions. The Road Ahead By September 2004. Nike's share of the soccer shoe market in Europe (35%). Reducing inventory and capital investment risk.Vs • Nike chose to work with HP for several reasons such as HP’s single platform capable of running both UNIX and Microsoft Windows NT systems and HP’s clear understanding of what Nike needs to run a successful business.

5 billion)(2008) Revenue Operating income . Sportswear . Germany Herbert Hainer (CEO). Sports equipment Toiletries €10.799 billion ($15.070 billion ($1.Vs Founded Founder(s) Headquarters Key people 1924 (registered in 1949) Adolf Dassler Herzogenaurach. Igor Landau (Chairman of supervisory board) (2009-) Industry Products Designing and Manufacturing Footwear.6 billion)(2008) ▲ €1. Adidas Brand). Erich Stamminger (CEO.

which can provide caring emotional communication. but also warmth. specific magazines. "Impossible is Nothing." In order to maintain and sustain this image. In keeping with the brand image is its association with the distinctive logo and its advertising slogan.980 (2008) Adidas Inc. from both strong-willed hero worship and water-like fork environment. is a marketer of sports apparel and athletic shoes. customers can easily link Adidas image with not only strength. Adidas will react to the consumers’ pessimistic attitude and stressful emotion during this period. At the critical time of global economic crisis. has evolved into a large multinational enterprise. outdoor and internet. But besides that. giving people more courage and psychological comfort in face of economic crisis. . It may become a good chance for Adidas because it can take advantage of its previous advertising way of “Impossible is Nothing” campaign by sponsoring sports stars to express the corporate philosophy of grit. we also focus more about family function especially in Asian countries which emphasize a lot on family. determination. The preferred media we choose are TV. through its marketing strategy which rests on a favorable brand image. Therefore.Vs Profit Employees ▲ €642 million ($933 million)(2008) 38. The German manufacturer. passion and humor. the company makes huge investments in advertising and brand promotion.

When it came down to it Adidas and the NBA came up with the slogan called “Basketball is a Brotherhood. While Dassler was in his mother’s wash room he decided to begin an athletic shoe. Today. Adidas is a global leader not only in the shoe industry. The way these six players were selected was by their athletic ability which is why they are . delivering state-of-the-art sports footwear. but also in the sporting goods industry. Chauncey Billups of the Detroit Pistons and Gilbert Arenas of the Washington Wizards. After he made the shoe he had help from his brother and twelve other people to produce around 50 handmade shoes per day.” The main focus of “The Brotherhood was Adidas to sponsor the NBA. Adidas has been part of the world of sports on every level.Vs INTRODUCTION Adidas was formed by German sports apparel by the founder Adi Dassler during the 1920’s. “The Brotherhood” consists of Tracy McGRady of The Houston Rockets. Tim Duncan of The San Antonio Spurs.” Recently Adidas and the NBA joined forces and made “The Brotherhood”. These athletic shoes were made for running and training. apparel and accessories. Shoes from the Adidas are available in virtually every country of the world. Dwyane Wade of The Miami Heat. “For over 80 years.

Then these six players decided to form a series that would help kids to discover their dream by playing with NBA Stars.Vs also known as all stars. . A strong advertising and public Relation events makes adidas as a worldwide recognized brand and it would be more sustainable in the world market.

although sometimes considered the origin of the adidas name. At the 1928 Olympics. the footwear market is expected to steadily . During the 1936 Summer Olympics on Berlin. German-based adidas-Salomon AG is the second largest manufacturer of sporting. Dassler equipped several athletes. laying the foundation for the international expansion of the company. The global footwear market is a growing market with an increase in consumer demand based on globally increasing consumer incomes. The company formally registered as adidas AG (with lower case lettering) on 18 August 1949. the shoe factory shifted to production of the Panzerschreck anti-tank weapon. The sports footwear market is significantly characterized by the high speed of innovation. At the same time the companies are trying to reduce costs through decreasing supplier prices in order to stay competitive. The name is actually a portmanteau from "Adi" (a nickname for Adolf) and "Das" (from "Dassler"). Looking forward. Dassler equipped quadruple gold medal winner Jesse Owens of the U. with his shoes.Vs HISTORY OF ADIDAS Adolf ("Adi") Dassler started to produce his own sports shoes in his mother's wash kitchen in Herzogenaurach. The brothers split up in 1948. his brother Rudolf (Rudi) Dassler joined the business which became Gebruder Dassler Schuhfabrik (Dassler Brothers Shoe Factory) and prospered. and Adi forming adidas. Bavaria. with Rudi forming Puma. In 1924. The phrase All Day I Dream About Soccer.S. after his return from World War I. Late in World War II. which forces the companies to invest more in development initiatives. was applied retroactively.

the world market leader in the athletic footwear industry. Adidas has always been a company that stands for revolutionary inventions in the athletic shoe industry. In 2006 Adidas took over their British rival “Reebok” with the goal to accelerate its drive in the U. The Adidas Group consists of the brands Adidas. In the following years Adidas expanded its production beyond athletic footwear and produced sportswear and equipment.S. The Adidas Group is a worldwide operating German sports apparel manufacturer with its head office in Herzogenaurach. . Reebok and Tailor-Made. This could only be topped in 2001 where Adidas-Salomon achieved record-breaking sales. the Adidas soccer shoes became world-famous. Today. The company was founded in August 1949 and named after its founder Adolf (Adi) Dassler. Another significant trend lies in long-term sponsoring contracts that Adidas gained within the last few years. In 1989 the company became a corporation. In April 2006 they signed a contract to become the official NBA apparel provider for.Vs keep growing. Adidas is still trailing Nike. With the winning of the World Cup 1954 in Bern by the German national team. The German team played with Adidas soccer shoes where you could replace the studs – a new innovation in those days. Adidas reported in 1996 one of the most successful years in its history after implementing new sales and marketing strategies. market and to approach Nike.

footwear and apparel. and hardware such as bags and balls.Outdoor apparel. aftershave and lotions.Golf equipment. perfumes.Footwear. snowblades. and socks. Mavic -Cycle components.As well. baseball caps. bags.Snowboard apparel.2 billion to more .Skateboard equipment.7 billion.Golf balls.Vs Marketing Mix Products: Adidas . In 1990. market. snowboards. apparel. irons and accessories. Cliché . Nike’s sales went from $1. Bonfire . ski boots and bindings. Maxfli . Taylor Made-Adidas Golf . golf shoes and finally. Adidas has a branded range of male and female deodorants. Adidas was holding on to just a two to three percent share of the U. apparel. hiking. Salomon .S. inline skates. eyewear. skis. Between 1988 and 1992 Adidas total sales dropped from nearly $2 billion to $1. Accessories Adidas also designs and makes watches. golf apparel. Arc'Teryx . In the same period. climbing equipment.Winter sports incl.

human billboards. and they had a long supply chain .it took 18 months to get a new shoe into the market. during the Adidas recession.Vs than $3. newspapers. magazines. skywriting. was that Adidas was unable to ship products when it was needed. web banners. inflight advertisements on seatback tray tables or overhead storage bins. street furniture components. which employs a premium-price strategy.4 billion. is the root of the group's strength in Europe. town criers. shopping carts. mobile telephone screens. Adidas’s market share dropped to 3 percent in 1992. sides of buses. market leader in the late 1970s. printed flyers and rack cards. with the brand generating 50% of all its sales there in 2008. . billboards. Adidas also have had problems with the upstream value activities in their value chain. the company have their own factories and wholly owned subsidiaries. Pricing Adidas products are generally cheaper than Nike products. Advertising And Promotions: Commercial advertising media can include wall paintings. Traditionally.S. The European market shares dropped while Nike’s shares grew. web pop-ups. radio. banners attached to or sides of airplanes ("logo-jets"). This brand. From being the U. much of pricing can be directly proportional to the type of technology incorporated into the shoe. What happened in the '70s and forward. bus stop benches. cinema and television adverts.

shopping cart handles (grabertising). This advertising research methodology measures shifts in target market perceptions about the brand and product or service. where Tom Cruise's character John Anderton owns a phone with the Nokia logo clearly written in the top corner. Print media advertisement. covert advertising. subway platforms and trains. where main character played by Will Smith mentions his Converse shoes several times. Robot. Online advertisement. calling them "classics. . the opening section of streaming audio and video. These shifts in perception are plotted against the consumers’ levels of exposure to the company’s advertisements and promotions. as in the movie Minority Report. in a film. Public transport advertisement. posters. Celebrities advertisement. the main character can use an item or other of a definite brand. and the quality of the advertising executions or creative. elastic bands on disposable diapers. Covert advertising Covert advertising is when a product or brand is embedded in entertainment and media." because the film is set far in the future. Any place an "identified" sponsor pays to deliver their message through a medium is advertising. musical stage shows. or his watch engraved with the Bulgari logo. One way to measure advertising effectiveness is known as Ad Tracking. The purpose of Ad Tracking is generally to provide a measure of the combined effect of the media weight or spending level. I. Adidas use several advertising media to promote their product in the marketplace. Different advertising media use in the in the market like commercial advertisement. Infomercials. roof mounts and passenger screens. stickers on apples in supermarkets. For example. Another example of advertising in film is in I. e-mail etc. the effectiveness of the media buy or targeting.Vs taxicab doors. and the backs of event tickets and supermarket receipts.

The majorities of television commercials feature a song or jingle that listeners soon relate to the product. display. Infomercials There are two types of infomercials. Infomercials are also known as direct response television (DRTV) commercials or direct response marketing. described as long form and short form. Adidas arrange several infomercials in the sports based program. and commonly have testimonials from consumers and industry professionals. Television commercials The TV commercial is generally considered the most effective mass-market advertising format. Adidas also use this advertising technique. Long form infomercials have a time length of 30 minutes. Virtual advertisements may be inserted into regular television programming through computer graphics. CNN etc. Adidas has a large amount of TV commercial advertisements in the worldwide TV network like BBC. .  The main objective in an infomercial is to create an impulse purchase. and often demonstrate products and their features. It is typically inserted into otherwise blank backdrops or used to replace local billboards that are not relevant to the remote broadcast audience. Infomercials describe.Vs Robot and Spaceballs also showcase futuristic cars with the Audi and Mercedes-Benz logos clearly displayed on the front of the vehicles. as is reflected by the high prices TV networks charge for commercial airtime during popular TV events. Short form infomercials are 30 seconds to 2 minutes long. so that the consumer sees the presentation and then immediately buys the product through the advertised toll-free telephone number or website.

for example. . popularity to gain recognition for their products and promote specific stores or products. Advertisers often advertise their products. Adidas even made action figures after Sachin Tendulkar. Celebrities are often involved in advertising campaigns such as television or print adverts to advertise specific or general products. Adidas signed the world No. In the 1990s. He is still wearing Adidas shoes when he plays matches. when celebrities share their favorite products or wear clothes by specific brands or designers. money.Vs Celebrities This type of advertising focuses upon using celebrity power. Adidas use David Bekham as their brand ambassador and many more celebrities in every region to promote their product. 1 batsman Sachin Tendulkar and made shoes for him. fame.

adidas Group's continuing expansion into the growing economies in Asia and Latin America led to significant sales growth in those regions. the brand has 1332 ownretail stores worldwide. or online stores. with 24% of 2008 sales coming from all of North America. The company's strategy in these emerging markets is to target the wealthiest segments. The group has captured a majority of the premium athletic apparel market in several countries including India and Japan (it is tied with Nike in China). adidas has relatively low US exposure overall. In contrast. In 2008. 46% is from footwear. the adidas Group saw overall sales in North America decrease by 14% in conjunction with the United States' economic downturn.Vs Place Shoes from the Adidas are available in virtually every country of the world. Latin America has had sales grow 53% and 38% the past two years. In addition to selling its products to retailers. factory outlets. 42% from apparel. However. . and 12% from hardware. Adidas Group generates revenue by selling its products to retail stores or directly to the customer via one of the brands' concept stores. The company aims to have emerging markets represent over 35% of global sales. included 329 new stores opened in 2008. establishing the group's output as premium products in the industry. Of this revenue. concession corners.

1 billion in 2007 .5% of all group sales in 2008. accounting for 72. The brand.8 billion in 2008 from €7. The adidas segment has seen its revenues grow to €7.5% of 2008 net sales) : The adidas brand is the ultimate profit driver for the adidas Group. which was restructured during 2007. now consists of 2 segments: Sports Performance (80% of brand sales in 2008) and Sports Style (20%).Vs Business Segments Net Sales by segment 8% 20% 72% Adidas Reebok Taylor made adidas golf Net sales by region 25% 43% Europe Latin America 24% 8% North america Asia The Adidas Group organizes its business segments by brand:  Adidas (72.

and Rockport (11%).5% of 2008 net sales) : TaylorMade-adidas Golf is comprised of TaylorMade (clubs and balls) and adidas Golf.Reebok-CCM Hockey (9%). TaylorMade-adidas Golf (7. (footwear and apparel).9% of 2008 net sales) : Reebok has three different divisions: Reebok (80% of brand revenue in 2008). TaylorMade-adidas Golf generated $812 million in 2008 net sales. where it makes 32% of its sales.Vs   Reebok (19. Golf clubs and accessories accounted for 71% of the segment's sales in 2008. . with the remaining 29% from footwear and apparel sales. The brand also contributes to the group's strength in Europe.

has planned to expand to Canada and international in the near future.Vs SWOT Analysis: A SWOT analysis comprise of strength. Found in 1895. Is steeped in history and heritage Has largest market share in India Has strived on street hip-hop image as its USP Compulsory centralized test for all sales staff Merger with Reebok Brand recognition and reputation. This four trends are analyze below. Our survey shows Nike behind Adidas in market share in India. apparel. • The e-commerce is limited to USA.) Strong control over its own distribution channel. STRENGTHS                 Largest International portfolio of sport ambassadors. Opportunity and Threats. Sponsors football teams with maximum fan following in India and USA. manufacturing. Currently available supply chain. . Reebok Intl. WEAKNESSES • • • • • Rigid pricing structure. Has not do well in Indian subcontinent market. Strong customer base. The direct sale to consumers is creating conflicts with its own resellers. Ltd. • Online customer service not "helpful" or easy to find. etc. Highest brand image in India according to our survey. sporting equipment. Diversity and variety in products offered on the web. Diversity and variety in products offered on the web (footwear. Weakness. Emerging brand name. Innovative designs in footwear enabling consumers to design their own shoes online. Strong financial position with minimal long term debts. however. and fulfillment technologies aren't known for its researcheasily integrated with online build-to-order systems and development leading to innovative designs.

GAP has increase their advertising budget in recent years. . • Positive and increasing market trends can increase through the effective advertising.  The newly born several brands like CAT.  Amount of competitors increasing day by day. • Increasing demand on the sportswear. • Launch adidas originals & style in India • Target the Achievers psychographic • Explore female market with Reebok • Compulsory standardized test for sales THREATS  Adidas larger competitor Nike has a grater market share and having a big budget in marketing activity.Vs OPPORTUNITIES • Has a great opportunity to expand international market.

Germany . This deal fulfills two strategic goals for Adidas. "I would watch the execution of the integration very carefully because it won't be easy to integrate the businesses . But together. But if the two companies manage to integrate properly . Nike. which is taking place in Germany next year.and Reebok.1bn (£2.9bn (£5bn) US sports shoe market last year. it allows Adidas to further expand into the “lifestyle” market. competitor Reebok. That is what investors seemed to think .9%. . The US accounts for 50% of the sports footwear market. Adidas .Vs Case study .Adidas takes a run at Nike Adidas-Salomon AG and Reebok Merger The deal that has been making the largest headlines recently is that between European giant Adidas-Salomon AG and strong U.1bn) merger between Adidas-Salomon and Reebok is all about catching up with Nike.the combined firm could pose a serious challenge to Nike. "Apart from that. with both Reebok and Adidas shares making strong gains following news of the merger. a fund manager at Activest. taking 36% of the $8. based in Canton. market. because mergers are hard to pull off successfully . The planned €3. By contrast. where Nike continues to be the dominant player. This merger of two of the largest companies in the industry creates a combined $12 billion company to compete with the industry leader. First.S. not everybody was convinced about the merits of the deal.S. Massachusetts. which is valued at $14 billion (Carr 2005). told Reuters.based in Herzogenaurach. could give Nike a run for its money. Adidas's share was only 8." Volker Riehm. Nike has the lion's share.Adidas's focus is on sport but Reebok's is on lifestyle. The second objective that Adidas seeks to achieve through the merger is to further solidify its position in the U. while Reebok controlled 12%. especially in the US.a big. However." Adidas is a major sponsor of the World Cup. Adidas is creating a load of work for itself when the World Cup is just around the corner.

DaimlerChrysler. the chief executive of Adidas. But Adidas. Adidas recently teamed up with the fashion designers Stella McCartney and Yohji Yamamoto on a line of trendy training kit sold through fashion boutiques. Nike offered Jordan a $2. launched launch a $65 basketball shoe called the Air Jordan the following year and went on to become one of the world's most well-known companies. complete with swoosh logo and "just do it" motto. For its part. . decided to give Jordan a miss. signed up the basketball legend Michael Jordan. However. Adidas had the chance to bag Jordan . who in the past had signed basketball stars such as Kareem Abdul-Jabbar and the boxing legend Muhammad Ali. Adidas's loss was Nike's gain. Adidas will be relying heavily on Reebok's marketing nous to take on Nike in the US. Once associated primarily with the aerobics boom of the 80s.Vs Adidas has always made good products. it had to drop ads featuring him in March amid complaints they glorified gun violence. rather than Nike. In 1984. Reebok has made inroads with the youth market by signing up the likes of the rapper 50 Cent. described the merger as a "major strategic milestone" and "a once in a lifetime opportunity". but has failed to match Nike's marketing prowess. But things could have been different had Adidas.then a promising National Basketball Association rookie.5m contract. He will be keeping his fingers crossed that Adidas-Reebok will not turn into a repeat of that calamitous German-US merger. Herbert Hainer.

s .d.d.AdiDassler Nike Nike came from the Greek name for the Goddess of Victory Motto adidas' motto is "Impossible is nothing. Adolf "Adi" Dassler. more likely considering the company history and its German origins: Adidas ." Nike's motto is "Just do it.i.All Day I Dream About Sports or from the original German founder of the company." .a.Vs Nike vs Adidas (Comparison) Adidas Adidas is competence in all sectors of sports A.

it is meant to provide natural rotation between the forefoot and the heel. ultimately allowing for better support in the midfoot. and is meant to respond to the cushioning needs of a active feet. Zoom air is often times preferred .   Name Nike Ground Encapsulated Nike Air . Nike Nike Footwear Technologies Description Nike Air is the most basic cushioning material used by Nike. when inflated. however it is primarily found in the forefoot of a shoe. it is made out of a polyurethane bladder filled with air. Name adiPRENE adiPRENE+ a3 Bounce Torsion Ground Control System (GCS) Climacool Torsion is a stability technology located in the midsole of the shoe." it is most often used in the heel of a shoe. has a thickness of 8mm. but may not provide sufficient or proper cushioning for serious atheletes with individual preferences. It is located in this region because it is designed to provide greater forefoot momentum at toeoff. adiPRENE+ is similar to adiPRENE in that it is a neoprene-like material. It essentially is a thin bag of pressurized air that. It provides adequate cushioning for the casual wearer. Inspite of its thin profile.Nike Air that is positioned in the heel of the shoe.Vs Footwear Technology Adidas adidas Footwear Technologies Description A neoprene-like material that feels somewhat like "nerf. adiPRENE is quite durable. and even has somewhat of a "bounce-back" response when compressed. it often provides more than adequate cushioning.Nike Air that is encapsulated within the heel of the shoe Visible Nike Air . but is visible Zoom Air Zoom Air is among the more technologically advanced (and expensive) cushioning systems used by Nike.

" Max air is generally noth larger in size and visible.two Zoom Air packs stacked on top of each other. but there are an increasing number of shoes that feature a full length shox-based system of cushioning. It is primarily located around the ankle region and helps to prevent ankle sprains due to ankle inversion. A seamless inner sleeve made of lycra that hugs the foot. many prefer it because it reduces the chance of chafing and has a natural and comfortable feel to it. and is meant to take the place of the shoe tongue.Vs by athletes who rely on quickness and speed because the thin profile allows for better court/field feel because your center of gravity remains mostly unchanged. Max Air is best suited for atheletes who do not necessarily depend on quickness and speed. the material actually molds to the shape of your foot. usually located in the heel Full Length Zoom Air . providing optimal cushioning Max Air A technique is used that forces air into a pre-formed shape.   Air Max 360 Air Max 180 Nike Shox Nike Shox is a cushioning system developed by Nike that is comprised of polyurethane-foam columns that provide cushioning in a way that keeps the foot parallel to the ground. but over time. Dynamic Fit Innersleeve Monkey Paw Nike Free Nike iD . Because it is seamless. and need a more dependable and firm cushioning system. but rather atheletes who are larger in size. it is created from a single piece of molded material. When first worn. Because of this.   Double Stacked Zoom Air . A thermoplstic urethane structure located either on the outside of the shoe. thus providing a tailored fit that feels quite natural. it is somewhat uncomfortable. Nike Shox is generally located in the heel of the shoe. Independent Podular Suspension (IPS) Foamposite A polyurethane-based material created by Nike that is both durable and lightweight. or between the lining and the outside. a benefit of this process is that the cushioning system provide great stability and impact protection.Zoom Air packs located both in the forefoot and heel. and your foot is located close to the ground. meaning that the shoe puts the wearer at a higher distance off the ground. thus allowing for more pressurized gas to fit into a larger "bag.

Jordan's) "Kobe" (Kobe Bryant) Steve Nash "King James" (Lebron James) Adrian Peterson Tiger Woods       Basketball Football Golf Boxing   Tennis     Roger Federer Rafael Nadal Maria Sharapova Juan Martin Del Potro Derek Jeter (JJ) C.Vs Sponsorships Sport / Entity Universities               Adidas UCLA University of Kansas "T-Mac" (Tracy McGrady) "Agent 0" (Gilbert Arenas) "KG" (Kevin Garnet) Tim Duncan Chauncey Billups Dwight Howard Josh Smith "Vincinaty" (Vince Carter) Reggie Bush Mario Williams Sergio Garcia "PacMan" (Manny Pacquiao) Novak Djokovic Jo-Wilfried Tsonga Fernando Gonzalez Fernando Verdasco             Nike USC (University of Southern California) "MJ" (Michael Jordan) "Melo" (Carmelo Anthony .Jordan's) "CP3" (Chris Paul . Ronaldinho) Fernando torres Wayne rooney Zlatan Ibrahimovic Didier drogba Baseball Soccer       Kaka Messi Gerrard Beckham Lampard Raúl .Ronaldo Ronaldo de Assís Moreira (aka.

In 1996. anywhere and anytime. however the web site served as a brand building tool for the company. it seems as though everyone is on the Internet and more companies are establishing an online presence to maintain their competitive edge. Large firms who have not adopted e-commerce as part of their strategic initiatives will miss out on opportunities to attain growth and competitive advantage. Nike and Adidas are two primary footwear companies along with their competitors who have adopted an online e-commerce strategy to increase their sales and product awareness. the Internet has become an essential tool for any business to compete domestically or globally. Nike redesigned their web site with expanded e-commerce functionality. In 1999.Vs Case Study Nike vs Adidas. The web has provided consumers and businesses with enormous advantages by reducing the transaction time and increasing the level of convenience.com web site in August 1996 primarily to provide information to its consumers. Businesses are developing web sites to provide their consumers and business partners with information and ecommerce. . companies like Nike and Adidas have invested heavily into online brand building and image development. market and comprehensive competition analysis and case study “Competition of two Giants Nike & Adidas in relation with E-commerce” EXECUTIVE SUMMARY Since the birth of the Internet in 1969 to its commercial adoption in the 1990s. one would be hard pressed to find a Fortune 500 company conducting business with either other businesses or consumers to not have its own web site . Along with high speed Internet connections. which was later integrated with ecommerce capabilities during that summer. Adidas launched their web site in the spring of 2000. Most importantly. the World Wide Web has enabled businesses and consumers to connect with one another to exchange and share information. Nike launched the nike. As we leap into the twenty first century. In today's high speed environment. there were no e-commerce capabilities present.

An ongoing battle the e-commerce industry faces is security. The Internet has redefined competition therefore changing the evolution of competition. In order to maximize their market share. both Nike and Adidas must minimize their technological risks. Nike and Adidas have engaged in e-commerce there are apparent gaps within their e-business strategy. these firms are able to analyze and monitor the buying behaviors of their consumers. therefore opportunities exists .Vs Attaining market share is important to both Nike and Adidas. this problem will be mitigated. gain and transfer market knowledge to their business counterparts. bricks and clicks. The data can also be used to exploit new marketing campaigns and promotions. there are chances that their advantages will not last forever. Furthermore. Although. and navigation. While both Nike and Adidas currently have an essential advantage over their rivals. Although. E-commerce is only available in restricted regions such as the United States and the United Kingdom. Nike and Adidas have adopted a merchant model which encompassed three pillars of their e-commerce strategy: pure-play e-tailer. The Internet has proven to be a useful tool for firms such as Nike and Adidas by increasing sales and reducing cost. With time and additional research and resources. there are perceived benefits in conducting e-business over the Internet there are also potential barriers. gather. Meanwhile. The main purposes of acquiring relationships with pure-play e-tailers is to promote and market products. the data collected can be used to produce innovative designs and improve their research capabilities. With the data retrieve from consumers. But most importantly their web sites have provided them with an intangible asset such as market research and consumer buying behaviors. speed. both Nike and Adidas have placed a great importance in developing their branding and marketing strategies on the net through web appearance and user friendly functionalities such as ease of purchase. The major barrier of e-commerce with respect to large firms such as Nike and Adidas is the technological barrier ranging from infrastructure to security. focus on the content to create new exposure and. and their online store.

a strong Internet presence felt like a natural extension to their already globally focused strategy. Nike's ecommerce site offers a unique experience. Adidas was founded along with its identifying trademark. apparel. Initially. a runner under Bowerman. Today www. Adidas has evolved and is now one of the premier global leaders in sporting brands offering athletic footwear. the three stripes. in 1972. In 1948.com. what started as Blue Ribbon Sports in 1962 became Nike Inc.com. Nike was named for the Greek winged goddess of victory. and accessories for a wide variety of sports and fitness activities.adidas. This led to the development of www. marketer and distributor of athletic footwear. and make the product durable. an established and growing organization.thestore. Adidas has faithfully adhered to three guiding principles embedded deep into its DNA: produce the best shoe for the requirements of the sport. INTRODUCTION A daring dream began in 1920 when Adi Dassler fashioned his first shoe in Herzogenaurach. With time. apparel and accessories. Nike has grown to be a global leader in the sporting goods industry.niketown. an e-commerce site focused on interactively profiling Adidas's extensive product offerings accompanied by detailed product information. Oregon. protect the athlete from injury. based in Beaverton. As time has passed. products and product information for its potential and existing customers. Adidas discovered that in order to continue to evolve further its strategy had to include the Internet. From their modest start. The future will prove to be very interesting for both Nike and Adidas. The founders were Bill Bowerman.Vs within the global market to expand. For Nike. This feat has been cultivated through continuous innovation and a broad product portfolio. Germany. From its inception. a track & field coach and Phil Knight. . It is recognized as the world's leading designer. and those who move quickly will dominate the market.

Nike. and Innovation. Nike's continued efforts in innovation coupled with its brand image. It's apparent in the figure below that Nike has the most favourable web site with both high web site appearance and user friendly functionalities. Web site design. In order to maximize their market share.Vs ANALYSIS OF E-COMMERCE Attaining market share is important to both Nike and Adidas. both Adidas and Nike are analogous. In terms of e-commerce.com has a slight edge over its arch rivals Adidas.com Adidas. however Nike has attained a considerable competitive advantage due to its reputation for quality and innovation. While the lower left quadrant indicates both a low web site appearance and user friendly functionalities. In terms of the e-commerce portion of the industry. Adidas web site is slightly more favourable in user friendly functionalities while lagging on overall in web site appearance in comparison to Nike's web site.com The inputs to the e-commerce value configuration for both Nike and Adidas are: Brand Image. However. is a unanimous leader of the athletic footwear and apparel industry. Adidas with growing popularity has narrowed the gap from previous years. Adidas with its web . The analysis below represents the web site positioning map which identifies some of the key performance criterion in determining the web site positioning strategy for both Nike and Adidas. OVERALL COMPANY VALUE CONFIGURATION The value curve below illustrates an evaluation of Nike and Adidas's focusing on the company as a whole but with the focal point of e-commerce extension. The upper right quadrant indicates a high rating in both web site appearance and user friendly functionalities. Adidas' web site is a bit more user friendly and navigation is fairly easy. The functionalities are identical in both cases. however. The brand image for both Nike and Adidas is immense. both Nike and Adidas have placed a great importance in developing their branding/ marketing strategies on the net through web appearance and user friendly functionalities. Analyzing the graph. Price. Overall. Service. Nike.

The value configuration has multiple components. Adidas' value chain although slightly different. is similar in nature in comparison to the industry. secure as well as its reputation and brand image of their product. To the right is a table which summarizes these components and the respective percentages for a $100 product (footwear).Vs site design and functionality has narrowed the gap between the market leaders and the market follower. similar to Nike.com positions itself as the leading brand in apparel and footwear. . Essentially.com's value proposition is an easy to use web site that is highly interactive.com. Adidas. The value chain configuration for both Nike and Adidas is supply chain. For Adidas. the value proposition is an interactive web site that is secure and easy to use. Because the operations of both companies are similar. Nike. the breakdown of the value chain indicates for both Adidas and Nike that the cost to produce and sell an item over the Internet costs these companies almost 50% of the price of the item. For the soccer industry. the table below only lists Nike's value chain breakdown.

For Nike to successfully remain as the market leaders. However. over the last few years.Vs Financial Analysis of Nike and Adidas Below is the Nike and Adidas stock performance comparison in Euros. One important point to highlight is the market share Adidas has gained since 1998. The financial comparisons of both companies indicate Nike having a substantial financial advantage over Adidas. The operating margin and return on assets is slightly lower for Adidas. Measures Employees Market Capital Revenues Operating Margin Returns on Assets Return on equity Nike 23300 16. Adidas needs to improve in both operating margin and return on assets to gain ground on Nike. This could be indicative of the market leader and market follower relationship.523billion 6. Adidas has comfortably moved to the second spot in this highly competitive industry.81million 482.71% 5. it must continue to innovate and produce leading edge designs that attract the diverse markets.1% Industry 23000 240.97billion 6.89% 11.97% 20.36billion 10. There is no question Nike is the market leader in not only the product aspect but also the financial aspect of this industry.62million N/A N/A N/A This research was conducted in 1998.12% Adidas 14716 13. since this time. .70billion 10. Adidas evolved from a minor player in the industry to the second biggest company in the industry. Adidas has been slowly eroding the market share from Nike.3% 21.

for Adidas to overcome some of the potential threats they must continue to improve their strategic position in the industry by increasing their e-commerce reach to the global markets. Nike.com and Adidas have strong positions in the footwear and apparel industry. such as demographics and preferences. Nike must focus their energy towards reducing the channel conflict caused by the introduction of e-commerce to Nike's strategy. collected from directly selling to the end consumers should be used to market new goods and products.Vs Emerging competitors Both Nike. the information. For both companies. For Nike. it's important to increase the market "pie" rather than increase their market share away from their retailers. Integrating e-business to its existing line of business is a key advantage to both companies relative to its competitors. Very similar to Nike. . Furthermore. Furthermore. they must continue to be innovative and explore opportunities globally.com must balance out its efforts to reassure traditional retailers while expanding its own line of business through e-commerce. to overcome the potential threats.

This has to be done to get opinion of the people regarding the Nike & Adidas and the ongoing competition between them. Mona Bhatia. The researcher has to decide the method to be used that helps him to get a desired direction in a systematic way. Thus random sampling may be defined as the selection of a portion from the whole population in which each elements of the population has an equal chance of being selected. Govt. Prof.Vs Market Research Process RESEARCH METHODOLOGY Research methodology is a strategy that guides a research in providing answers to research questions and for this. The questionnaire contained 10 questions. Sample Size: The sampling techniques used in this project are probability sampling techniques and the methods used in cluster sampling. . Sampling Unit: The respondents who were asked to fill out questionnaires are the sampling units. A) Methodology Adopted Questionnaire Design The questions were designed in an easily understandable way with the help of Prof. That the respondents may not have any difficulty in answering them. which comprised of mainly peoples from different regions of India. “Accuracy of the study depends on the systematic application of the method”. research survey is being done. These comprise of employees of MNCs. Sample size: The sample size was restricted to only 50 between age group of 1535. and Self Employed etc. Employees. Random Sampling Sampling can be defined as a part of population. Swapna (Faculty Guide) and Prof. In this research survey 50 people were surveyed at random to get the relevant information. This study in the following manner. A more please definition is that each element in the population has a non-zero and known probability of selection a randomly drawn sample is an unbiased sample.

Thus valuable information was gathered informal friendly talks with the people. And which is better Nike or Adidas. Bar Graphs and pie chart have been used to illustrate the findings diagrammatically. The simple statistical tools will used to analyze the datacollection. . The scores given by people were considered on various factors and were interpretated in graphs and pie charts. in fact it is a search for broader meaning of research findings.Vs Sampling Area: The area of the research was Mumbai. It is through interpretation that the researcher can well understand the abstract principle that respondents beneath his findings. India. Interview The next step involved in collecting information requires discussion with people. B) Data Collection Structured Questionnaire In this collection data. Interpretation Interpretation refers to the task of drawing inference from the collected facts after an analytical study. structured questionnaire is used as a tool by asking a set of standardized questions to know the perception of the giants regarding footwear industry of the masses. Secondary Data Collection Various websites & magazines were consulted to collect literature relevant to the topic.

e to understand which demand pattern according to the sports. Brand 10% 10% 42% Nike Adidas Puma Others 38% . i. Which is your favorite Sport? This Question is asked to figure out the demand of particular type of shoes according to the sport. Sports 6% 12% 24% 12% 46% Cricket Football Tennis Basketball Others 2.Vs Questionnaire: 1. Which sports brand do you prefer? This Question states demand pattern of athletic footwear brands.

35 30 25 20 15 10 5 0 It could be seen that the major reasons for selecting a particular brand are Brand Ambassador and Product. Percentage 40% Just Do It(Nike) Impossible is Nothing(Adidas) 60% . Why you prefer this brand? This states what kind of promotion is more effective for the footwear brands.Vs 3. Which punchline motivates you more? Its simply to know which brand has more influential punchline. 4.

Do you compromise quality for price? Higher brands have higher quality as well as higher prices.Vs 5. Brand 20% Nike Adidas 80% . So to know are people willing to pay for good quality. So common people have tendency to buy shoes that are cheaper and unbranded. If you consider prices which brand is better? Just to compare both the brands on the basis of prices that they offer on different products. Sales 44% 56% Yes No 6.

If you consider product quality which brand is better? Brand 32% Nike Adidas 68% 8. Brand 40% Nike Adidas 60% .Vs 7. If you consider product design which brand is better? Comparision on the basis of product design.

e.Are you loyal to a particular brand? This Questionnaire shows the nature of the customers i. Sales 42% 58% Nike Adidas 10.Vs 9. are they loyal to a particular brand or not? 38% Yes No 62% . Which Brand has better advertisements and promotions ? Just to analyze which brand is more effective with their AD campaigns.

Vs 11. Do you feel that athletic footwear industry can be affected by recession? This Questionnaire is asked to know are people willing to pay for the brands during recession. Sales 18% 24% Yes Not much Not at all 58% .

Nike leads with both very satisfied as well as satisfied customers. 2. . In addition. Adidas dissatisfaction level is also less but not more than Nike. Dissatisfaction level is low. Nike Adidas Price Premium 1/2 Nike in terms of satisfied and loyal customers are willing to pay a price premium. while Adidas leads with loyal but less satisfied then Nike customers. Nike Adidas 1/2 Satisfaction / Loyalty In terms of satisfaction.Vs Findings: 1. Adidas prices are also marginally less.

Leadership and Popularity The results showed that majority of customers chose Nike as the company with larger Brand image compared to Adidas. Nike edges out Adidas in terms of Product quality. Nike Adidas Perceived Quality Here again. This reflected the “number one” syndrome where the leader must have merit. Brand Personality: The brand personality of Nike comes across as an exciting and competent brand.Vs 3. Perceived Value The consistent responses by Adidas users perceive it as a value-for-money service. But in terms of Product design perceived Quality is better than Nike. Nike is perceived to be a bit expensive by its customers than Adidas. 5. 6. But Adidas is also emerging as a better brand with some good promotional strategies. 4. . Its vibrancy appeals to the customers who relate to the advertising messages.

there is not much to choose between the two Brands and the spoils are even. The difference if any is very marginal and is not considered. Market Prices and Distribution Coverage The market prices of the Footwear manufacturers given by Nike and Adidas are very similar. . To conclude. the Brand Equity of Nike is higher than Adidas. So the spoils are even for both the Brands here. brand awareness. market share). Also the distribution coverage is properly established. The other three measures (brand personality. Comparing the overall findings we see that Nike leads in four brand equity measures (satisfaction/loyalty. leadership & popularity. 8. Therefore. though marginally. Brand Awareness Brand awareness of the respondents was high with most being aware of both Nike and Adidas.Vs 7. market price and distribution coverage) have been shared by both Adidas and Nike. perceived quality.

I can never find my size 11 1/2 in stock. I’ve always liked the Nike Brands. While for some it was hard to admit that Nike is losing its dominancy. once we spotted that the discussion over the two leading brands in the blogsphere is becoming very similar in its volume. Nike: “Adidas are spending more time blogging that being athletes…” (a comment provided by Nike employee) “When I look into new basketball shoes. most of the comments we received were in fact supporting initial assumption that Nike is facing hard competition coming from Adidas. 1.. and those found it hard to take one side only. Nike”. . because they seem to have more heel and ankle support. We profiled your evidence and personal preferences in favor of Nike.” “between the two (nike & adidas). in favor of Adidas. but when I try to order online (which is how I purchase my B’ball shoes).Vs Conclusion “Adidas to overcome Nike”.

Nike appeals to the hardcore sport goers who thrive on competition and want the ‘best’ when competing. Adidas Stella McCartney. Nike is all about winning. Adidas: “Adidas all the way…there is no shoe in the market. Different styles: “Nike is hard core technology for sports: it’s Nike Plus. trendy and sporty all the same. is about empowering people (which by the way is not very far from Nike positioning in the eighties). but for my golf shoes.” “In my honest opinion. it’s Air.” “I grew up a fan of Nike ……I am becoming more of an Adidas fan by the minute.I needed the extra support!” 3. Hard to compare: 1. It has a built in arch support which is great when you are walking 18-holes. Adidas Y3. that’s where the difference lies in my eyes. which is more comfortable. from athletic people to hip-hop dancers. About being the best. What’s also very significant about the two brands is their communication: Adidas is “impossible is nothing”. The shoe is reliable. “Adidas has long appealed to a large demographic of consumers. it’s Dri Fit. Their products are more focused in style: Adidas Originals.Vs 2. as being the ‘best’ and that you’ll win with them”.” “Mark Zuckerberg! His name is usually followed by the word “adidas” “I’m a tennis sneaker kind of girl. carrying a full set of clubs on your back…. Adidas is different. They’ve created a more ‘chill’ feeling around their products that . and pocket friendly than adidas. It’s innovation. I bought the Adidas. which Nike has well promoted themselves as.

” 2. . And yet. Soccer is exploding. opinions about the leading sporting shoe are indecisive. “New Balance for the win. mainly New Balance. running and notably casual wear”. Adidas is successfully communicating a stylish atmosphere. I’m sure ten years ago – we would have heard Nike’s fans shouting much louder. NB finally figured out that sneakers are a fashion market and have been making some very cool looking NBs– but on top of that. New Balance are comfortable and don’t fall apart like a lot of hipper brands”. Many of the responses were in favor of other brands we haven’t discussed. Globally. Beckham is probably capable of moving more product than Tiger Woods or any other Nike celebrity endorser. As you can learn from the above reactions (we presented only few sample examples). Adidas and Nike show a close fight over global market share. other sports are just growing.Vs personally makes me feel and look relaxed but trendy at the same time. Adidas has a long way to go to overcome Nike. ‘Impossible is Nothing’ has been a great campaign that appeals to the Average Joe who always wanted to make it big and sees that it is possible for anyone. Different sports / functionality “Nike. Adidas. I have for working out. I have great products from them for basketball and other competitive sports. Adidas carrier – David Beckham has significant mark on Adidas brand. Nike does not. "Adidas gets soccer. 3. So what has changed? Adidas is in fact bringing new challenges:      Adidas bought Reebok.

com/en/investor/reports/default. October 2003 *http://www..html.asp.shtml.xml.jhtml?page=1." Computerworld.com.com/campaigns/originalsss2009/content/#/lifestyle/full-length-film.asp. Retrieved on 2009-03-20.aspx?id=5375 Retrieved 7th June 2008  http://www.com/en/overview/welcome. October 2003 *http://www.urlwire.champion.adidas.com/en/investor/strategy/default. Stanford University. 2000 .jhtml?year=1999&month=06&letter=d.press. AAFA. `http://www.com/content/fashion_events/2008/Adidas-Denim-by-Diesel-in-storeevent-p1.nike.Extended House Party Film".co. Annual Report 2001 *Industry Sector Analysis of Sporting Goods.press.adidas-salomon.com/solutions/success_stories/nike. Annual Report 2001 *Nike.com/en/overview/history/default. Nike Inc.com/newsbeat/99features/news19990624.com/nikebiz/nikebiz.asp. New York. Annual Report 2002 *Adidas. Annual Report 2002 *Nike.adidas-salomon.adidas-salomon." McGraw-Hill Irwin. October 2003 *http://www.S.fashiontrendsetter.com/en/DesktopDefault. 1998 *Multex Fundamentals / ProVestor Plus Company Report. October 2003 * "Nike . October 2003 *http://www.jhtml?page=15. 2009-02-25. October 2003 *http://www.uk/whatsnew.493 *"Companies point fingers over Nike Web site hijacking.nike.adidas.com/en/news/archive/2000/2000-07. http://www.asp.aspx?id=5508 Retrieved 7th June 2008  http://www. 2001.co.adidas.Channel Conflict.com/newsarchive/062499. October 2003 *http://www. "Advertising and Promotion. p.jdsports.com/en/ Retrieved 7th June 2008  http://www.asp. October 2003 *http://www." Graduate School of Business. *Adidas.com/nikebiz/nikebiz.channelseven.nike.adidas-salomon.aspx/tabid-4/79_read-8621/ Retrieved 7th June 2008  http://www.ie/  "Adidas Orginals . October 2003 *http://www.Vs Bibliography  http://www.jdsports.adidas. January 2003 *http://www. October 2003 *http://www. U. June 30. Adidas.uk/whatsnew. February 2000 *Belch & Belch.com/nikebiz/news/pressrelease. October 2003 *ShoeStats 2002.html Retrieved 7th June 2008  http://www. October 2003 *http://www.adidas-salomon.cybersource. and Foreign Commercial Service.

Vs .

Sign up to vote on this title
UsefulNot useful