Market analysis Nike VS Adidas



Both Adidas and Nike fall under niche marketing. They have narrowly defined customer group seeking a distinctive mix of benefits. Their products are mainly aimed at both at men and women looking for sport apparel. Adidas and Nike promise their customers comforts, reliability, style and performance. Both the companies have lived up to their reputation in the world of sports.

“Niche marketers aim to understand their customers needs so well that the customers are willing to pay a premium”. This is very true in the case of these two companies. Adidas and Nike sports goods are priced high. But customers are willing to spend the extra money for the quality and service they receive.

NIKE


Nike pays top athletes in many different sports to use their products and promote/advertise their technology and design. Nike is the official kit sponsor for Indian cricket team for 5 years, from 2006 to till end of 2010. Nike beats Adidas and Puma by bidding highest. Nike also sponsors some of the leading clubs in the world of Football, such as Manchester united, Arsenal, FC Barcelona, Inter Milan and Red Star etc. Nike sponsor several of the Worlds top golf player, including Tiger woods, and Paul Casey. Baseball has also recently increased its Nike roster with names like Adam Jones, Evan Longoria and Andrew McCutchen. The Nike collaboration with the famous basketball superstar proved to be the so successful that they lunched the Air Jordan brand which continuo’s to release new shoes every year even though Jordan has been retired from NBA since 2003.











Another success story of Nike is that in 1996 they signed Tiger Woods. Since Nike was new to golf scene many believed that brand would failed but Nike has been tremendously successful with Nike Golf brand.






ADIDAS


Adidas are the main sponsors and the kit sponsor of the successful Australian and the England Cricket team. They are also the main sponsor of the Indian cricketers Sachin Tendulkar and Virender Sehwag. Adidas are the main sponsors of Australian Cricket League and some teams of Indian Premier League teams like Mumbai Indians and Delhi Daredevils.

For the 2008 Summer Olympics in Beijing, china, Adidas spent 70 million us dollars sponsoring the event, amid criticisms. Adidas also sponsors events such as the London Marathon.

The Adidas Group strives to be the global leader in the sporting goods industry with brands built on a passion for sport and a sporting lifestyle. They are innovating and design leaders who seek to help athletes of all skill levels achieve peak performance with every product they bring to market.

Adidas are consumer focused and therefore continuously improve the quality, look, feel and image of our products and our organizational structure to match and exceed consumer expectations and provide them with the highest value.
Lionel Messi and Devid Beckham is the famous football superstar who signed agreement with Adidas. Beckham was probably the first footballer from Europe to take his brand name to next level. Beckham signed a 160 million dollar worth Life time agreement with Adidas back in 2003. Messi signed agreement of 20 million dollar yearly. Recently Adidas group has launched its”all Adidas” global brand campaign using a collection of Adidas game faces.
SEGMENTS TARGETED
Both Nike and Adidas target Aspiring athletes in the age group of 15-35. In the lifestyle and the apparel market target consumers who identify with sport as a way of life and are brand conscious.

NIKE
Here are the three consumers Nike is focusing on the most.
ü Women
Nike is expanding women’s apparel especially sports bras and tights. Sales of Nikes training and running apparel for women grew by double digits in the last quarter, outpacing the men’s business.

Nike says the women’s line could add 2 billion dollar in additional sales by 2017.

ü Young athletes
Kids who play sports are a growing part of Nike Business, acting to parker.

Nike gets young athletes to wear its products through sponsorships with local leagues, clubs, and federations.

All NFL teams currently wear Nike gear. The brand also has partnerships with scores of famous athletes, including basketball star Kobe Bryant and tennis champion Roger Federer.

Under Armour has also started signing famous athletes as a way to attract young customers.

ü Runner
Much of Nikes innovation efforts are focused in the running category. New running shoes include the Lunar Tempo, which is designed for distance runners. Nike is also innovating running apparel to better compete with Lululemon, under Armour, and Adidas.

The company also revamped its Nike+ running app. Its help them to track their route, distance, pace, time, and calories. It also let them to share photos and compare progress with friends.

Nike sponsors grass root running events around the world to recruit new customers. The running app provided by Nike is very unique you will get measurement and motivation you need to run farther and faster than ever before.

ADIDAS


The Adidas as compared to other sports brands cover the largest market. Adidas mainly focuses on men and women who are brand conscious or are looking for comforts in the area of sport. Adidas has more than 200 verities of men footwear’s and more than 150 women footwear’s. The company also makes sports shirts and other sport related goods. It has entire line of products devoted to sports like Football, cricket and Basketball.

The company officially became the no 1 driver in Golf in 2005 and in 2008 Adidas made their first major move in cricket market.

ü Running
Adidas currently manufactures several running shoes, including the adiStar control 5, the adiStar ride, the supemova sequence and the Supemova Cushion 7 among the others. In addition their performance Apparel is widely used by runners. Adidas also use kangaroo leather to make their more expensive shoes.
ü Athletes
Adidas strongest consumer market is with the 20 to 29 year old age group who are athlete our passionate about spots. The company is focused on targeting and strengthening its brand with the next generation of athletes in the 14 to 19 year old age group.

Adidas believes this target group is the most influential consumer group in the world.

Adidas plans to sharply ramp up endorsement deals with U.S. pro footballer and baseball players, as the German sportswear maker tries to gain traction in American market.
ü Basketball
Adidas has been a long time basketball shoe manufacturer and is one of the leading basketball brands in the world. They are most famous for their iconic superstar and pro model shoes.

To target the young youth Adidas signed different famous Basketball players which are highly followed by young youth and also these Basketball player have huge fan following in countries like America, U k and Australia. So in this way Adidas easily target the youth.

POSITIONING AND DIFFERNTATION

The core of Nike brand positioning is the “just do it” slogan. It means being what you are and concentrating on what is important to you.

Adidas represents passion, elegance and durability.


EVOLUTION AS A BRAND
        NIKE
It was only 36 years ago that we had a world without Nike, and in that period Nike has gone from the brash newcomer, to the no 1 mass-market leader. The Nike story begins with the meeting of its co-founders at University of Oregon

In 1965, after a period of selling Onitsuka shoes from the back of their van at athletics meets, the company grew.

The company went from strength, but after heated disagreements between BRS and Onitsuka, the new boss at BRS decided to split from tiger in 1971 and create their own company. It is said that Jeff Johnson came with the idea for the new name, deciding to honor the Greek goddess of victory, and thus Nike was born. The company managed to decide the logo of its own.

Nike took off virtually in the U.S, and within a year company sales were at almost 2 million pairs. In 1981 Nike decided to took another major step to open its new office in U K.

However in 1985 Nike become a major player in the field of sports. When Nike sign an agreement with the basketball player Michael Jordan. The new Jordan endorsed range transported Nike and trainers in general to a completely new level of popularity,

In 2006 Nike entered into the cricket market with the 5 year of sponsorship of the Indian cricket team for US 43 million dollar.

Nike has continuously pushed back the boundaries of the trainer design, sports shirts design and sports bat design, staying focused under Phil Knight’s guidance.


Developing the swoosh
Back in 1971, the newly created Nike Company was ready to hit the market with its sports goods and a logo to represent the brand was urgently needed.

Phil Knight turned to an associate from his teaching life and commissioned graphic-design student Carolyn Davison to work with this new brand. Knight wanted a design that would represent movements. Davidson was the one who design the Logo of the Nike. For this work Davidson paid 35 million dollar for design.

Knight also gave Davidson an envelope which contains Nike ring and Nike stock.

        Adidas
When Adidas entered the marketplace some 50 year ago, its focus was to produce shoes crafted specifically for soccer and running.

The brand has steadily regained market share over the past five years to become the world no 2 athletic sports goods manufacturing company.

The brand positioning of Adidas is simple: cutting edge soccer. In order to strengthen the position, they focus on the field. Adidas has the best lightweight material available for their footwear products, but so does their competition. Adidas has innovative benefit for their footwear products such as lethal spins

In 2012 Adidas, the sports equipment giant, in partnership with Major League Soccer, become the first company to incorporate live microanalysis technology to soccer game.

A tiny chip placed into the Adidas TECHFIT compression top captured live data such as speed, distance, field, position, and heart bit. The chip then beamed the data to base station on the sideline allowing coaches and managers the ability to track and follow their player during the match.

To keep up with the competition, Adidas generates close to 60 new foot friendly designs each year. As the result products have been repositioned in higher-end sports specialty stores.

In 2004 “Impossible is nothing” become the central message of the global campaign that Adidas lunched.

It appears that teams Adidas honed its strategy to become revitalized contender in today’s competitive sporting goods market and is know duly recognized as the sneaker of yesterday and today.

                                                                                                                                                                                                                                                                                               
Adidas Target Audience
According to Adidas Group, Adidas is primarily targeting sports participants, including those at the highest level of their sport, as well as non-athletes who are inspired by or really love sports. Adidas has a long history of providing athletic footwear and apparel for athletes at all levels of sport. There are also some other type of audience that are attacked by Adidas the list of those targeted audience is as follow.
        Fashion lovers

        Trend followers and setters

        Supporters of street culture

        Sports lover

        Music lover

        Working middle class families
These all are the target audience of Adidas.
As detailed in its strategic positioning statement, Adidas' strongest consumer market is with the 20- to 29-year-old age group who are athletes or is passionate about sports. The company is focused on targeting and strengthening its brand with the next generation of athletes in the 14- to 19-year-old age group. Adidas believes this target group is the most influential consumer group in the world.
Nike Target Audience

Nike's primary target audience for its products is athletes, according to the company's 2014 letter to its shareholders. In its 2014 business overview, Nike lists serving athletes as one of its key goals for innovation.

 

According to the company's business overview, Nike brands each have distinct target audiences. The main Nike brand is most targeted towards athletes, selling related products such as shoes, sporting equipment and clothes. The Converse, Inc. brand markets more casual goods and is described as targeting premium customers. The Jordan Brand is also a premium brand, but it is targeted more broadly at athletes. The Hurley International LLC brand also targets athletes but focuses more on activities associated with young people, such as skateboarding and surfing. The Nike Golf brand is focused on golfers. As of 2014, the company has plans to more aggressively target different groups of consumers, including female consumers and consumers in China and in Western Europe. Nike specifically targets sports viewers, with initiatives correlated with the Sochi Winter Games, the Super Bowl in New York City, the Prefontaine Classic in Eugene, Oregon, and the World Cup in Brazil, as detailed in the letter to shareholders. The company also targets basketball fans with a campaign involving player Kobe Bryant.

Nike mainly target 3 kinds of the categories.
        Women’s
        Runners
        Young athlete
Adidas target audience overview


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