The two biggest sports companies are Nike and Adidas Group. The way they brand themselves is to sponsor major football teams and other major sports stars. Nike and Adidas spend a lot of money to sponsor the big teams, this includes big teams like Chelsea, Manchester United and Arsenal. By sponsoring these big teams the companies logo are viewed by a large number of people all over the world. Especially because it has become more expensive to watch the games live at the stadium, so more people watch the game on the TV. Hummel has not as much money as Nike and Adidas to sponsor football teams. Therefore, they must be more selective about whom, they choose to sponsor. They previously sponsored the National Football team in Tibet and the Afghanistan Football Federation, teams that nobody else would sponsor. Hummel choose from the phrase ”not only due to size and worldwide fame, but according to uniqueness, character and the will to win” instead of the worlds best. By sponsoring the smaller and more special countries, which are never going to get big sports victories, Hummel focus on character and the will to win. By supporting the small nations Hummel differentiate themselves from the other companies that sponsor sport. They do not use large amounts of money, as it would cost them to sponsor the best in the world, yet people will remember them to support small and slightly quirky sports. In 2005 they sponsored the South African National Cricket Team, by sponsoring them, their brand displayed 115m times on TV. It would be a perfect way to exploit the 2012 Olympics Games in London. If you do not like Nike and Adidas sponsors high-profile sports, but choose the more unique which is not so expensive, they are still shown and thus seen by countless people. In 1999, Christian Stadil Specimens of Hummel’s new retro-style clothes to friends and acquaintances. Among those who received the clothes were British music stars like Robbie Williams and Arctic Monkeys. Hummel did get “free publicity” when artists were seen with their clothes on and photographed in it too. The same method to brand itself did Hummel during the Olympics Games in Athens in 2004, when the Danish Royal was seen in Hummel’s clothes. Another Market Things strategy is Corporate Social Responsibility (CRS), including support for Hummel, Save the Children, fight against HIV and AIDS among children in Africa, and support Sierra Leone, a country still effected by years of civil war. By supporting projects like these, given Hummel values and coming synergy between Hummel’s and Christian Stadil message “spread good energy” and what they finally do. More people will be more inclined to choose their clothes, because you both get cool clothes and support some great causes. 2)
Around the 18th century was Britain the first Industrial Nation. There was therefore a rich history of producing in mills and factories. But as globalization has become easier and cheaper to transport the clothes to the West from the East many companies choose to use outsourcing. By outsourcing the money is saved on raw materials such as they are cheaper in the east, and the workers are more efficient compared to the West. The low cost of production makes it easier for Hummel to compete against the big companies during the Financial Crisis even though they are still a small company compared to Nike and Adidas. As the Financial Crisis has come, and people therefore do not use as much money on clothing, outsourcing can be as a way for small businesses to become more competitive power compared to the large companies. Hummel has outsourced their production to subcontractors in Asia, where China and Vietnam accounts for more than 50% of Hummel production. And effectiveness can be viewed by Hummel have made an agreement with a Vietnamese-owned factory, which can deliver garments within 20 days. This also helps Hummel to be more talented competition. A problem may arise is culturally gabs but also...
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