Nike vs. Adidas
Consumer Behavior – 3310
Nike, founded January 25, 1964, is one of the world’s best known and popular brands. Created by Bill Bowerman and Phil Knight, Nike has become one of the world’s largest athletic apparel suppliers and today markets it product under its own brand name which includes Nike Pro, Nike Golf, Nike Skateboarding and the infamous Nike Air Jordan. At the end of 2012 the company had an estimated net worth of $15.9 Billion had over 44,000 employees worldwide and raked #1 on the Forbs Top 10 Worlds Most Valuable Brands in Sports.¹ The company has two subsidiaries, Hurley International and Converse. The logo is identified as the Swoosh symbol, and anyone who sees it knows what the brand is. Nike officially became Nike, Inc. May 30, 1971 from the name Blue Ribbon Sports, and took its name from the Greek Goddess of Victory; it is an American multinational brand. Adidas is a multinational brand located in Germany that also manufactures sports apparel and accessories. Founded in 1924 under the name Gebrüder Dassler Schuhfabrik, Adolf Dassler reformulated and registered the business as Adidas in 1948. Adidas is now the largest sports manufacturer in Europe and Germany and the second largest sports manufacturer in the world. Subsidiaries of Adidas are Reebok and Ashworth Golf Apparel, also known as Callaway, as well as the brands Rockport and FC Bayer Munich; a German Sports Club². As of 2012 Adidas net worth was estimated at $6.8 Billion Dollars, had over 46,306 employees worldwide and ranked #3 on the Forbs Top 10 Worlds Most Valuable Brands in Sports list.³ The brand is identified by the famous three parallel bars, and now features its name underneath its logo. Nike’s mission “to bring innovation and inspiration to every athlete in the world” is seen in its demographics profile and business strategy. Nikes current and loyal demographic is now aging, but that also creates a new opportunity to influence the new younger generations. Over the past 50 years Nike has targeted a loyal demographic of sports enthusiasts, athletes, gym regulars, brand consumers and image seeking buyers. Nike has a targeted customer of all ages with income levels starting at $15,000, that who are members of the upper middle, lower upper and upper class. Both males and females are included in Nikes ever growing demographic and now spreads across nations with a growing population of India buyers and a now older marketing segment that targets 40-65 year olds.4 Nike has always focused on large demographics that includes all income levels. You can now go into stores like Target Corp. or Kohls department stores and find Nike on shelves for discounted prices. As mentioned before Nikes emerging presence in India is growing steadily. With the opening of a Nike plant in India, market segment growth is still yet to be determined. The brand has largely positioned itself in the minds of consumers as a high end product with quality designs and sports teams’ contracts as well as its sponsorship of select athletes. It has created a brand loyalty that can continue to achieve high profitability and sales volumes. Nike has a 40% share of the sportswear market, the largest in the world, which helps its lead in the global markets. In a recent article published in Arab News dated March 15, 2014, Nike swooped the market share in Europe as well!5 With a rise in 8% of Europe’s market share, Nike is now the leader in sports apparel in the European segment; largely due to expansion of its India demographic as well as its continuous market penetration into the European runners markets and women’s demographic worldwide. Adidas has always had a strong European and German demographic and up until recently had a strong upper hand over competing brands in the European market segment. Historically Adidas demographic targets sports enthusiasts, soccer players, sports fashion, inner city...
Cited: 1 -“Nike Inc.” Wikipedia. Web 14th March, 2014.
2 - Wikipedia. Web. 14th March, 2014.
3 - “The Forbes Fab 40 the World’s Most Valuable Brands” Forbes. Web 14th March, 2014.
6 – Dow Jones & Company. The Wall Street Journal. Web 15th March, 2014.
8 – “Adidas Cultural Factors” eHow Web 16th March, 2014.
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