A COMPARITIVE ANALYSIS OF MARKETING STRATERGIES FOLLOWED BY NIKE AND ADIDAS
Submitted to- Ritu MalhotraAssociate ProfessorFMS DEPT.NIFT KOLKATA|
Ankita Singh (26)
2.1. BRIEF ANALYSIS OF INDUSTRY
2. MARKETING STRATERGY
3. SEGMENTATION, TARGETING, POSITIONING
4. MARKETING MIX
5. ANALYSIS REPORT
Brief Analysis of Industry
Sport is an integral part of modern contemporary society. Sport has always been associated with discipline, dedication and perfection and hence sportsmen have always been respected, across borders, religions and races. Sportsmen, professional or amateur, need quality gear, specific to their game, to be able to compete better. It is this market that the two conglomerates, the subjects of our study, cater to. Both these companies started off as footwear makers for the modern athlete, their innovative designs and technology creating waves. But now these firms have diversified. They compete on the broader platform of footwear, apparel, accessories and equipment. Today they are among the world’s top corporations, with a worldwide presence. Our study will concentrate on the primary product these two firms make –Athletic Footwear. We will compare their marketing strategies, their targeting and their marketing mixes. We will dissect their segmentation and examine their positioning on the global playing field. And lastly we’ll state our conclusions on the comparative marketing strategies of these firms. The world’s athletes play using their products. Let’s see how they play the market. Welcome to NIKE versus ADIDAS
Brief definition of Industry
Trends in the Industry
The latest picture of the industry has not been as rosy as it has been earlier. At this stage, with the big four, Nike, Adidas, Reebok and Puma and the others such as Converse and New Balance, the industry is experiencing hyper competition. The reasons for this being that the demand for the products has been decreasing and at the same time, there has been an increase in the popularity of alternate footwear. This inadvertently has resulted in decreasing margins and the quest for new markets and innovation to get the profits up again. The worries seem to have ended, at least momentarily with the emergence of China, Turkey, Brazil and Russia as huge untapped markets for their products. Of these, China is the biggest bet for the big guns. Why? China’s huge middle class is rising and the country’s ever increasing wealth serve as a classic ingredient for market ignition. Both Nike and Adidas realised this early and invested heavily in advertising during the 2008 Beijing Olympics. Adidas partnered the games and Nike, as always focused on individual player and team endorsements. The Chinese marker saw huge residual sales after the Olympics. Nike, for example, saw its sales increase 50 pc in China in 2008 on a currency neutral basis and again a 50 pc increase in sales in Q1 2009. Turkey and Russia, similarly, had a 25 pc increase in sales in 2008 and another 30 pc in Q1 2009. Brazil alone had a 30 pc increase in Q1 2009. The opening up of these markets has provided respite to the industry and they are making good use of it. Already most of these firms use South Asia as their manufacturing base, to make use of the cheaper labour, in particular. Now they have a greater incentive to move to South Asia as their market seems to be shifting here too.
India has a large market for footwear and the brand loyalty is also growing. India is ranked the 4th largest economy by GDP (in purchasing power parity term) and is expected to rank 3rd during 2010,...