Research problem:Research problem:

How have Adidas used How have Adidas used the instrument Branding, the instrument Branding, and which roll did it play and which roll did it play

in the competition in the competition between Adidas and between Adidas and

Nike?Nike?

Author: Karolina TicháAuthor: Karolina Tichá

Physical productPhysical product PersonalityPersonality

CultureCulture

Self imageSelf imageReflectionReflection

RelationRelation

Brand Identity Prism - NikeBrand Identity Prism - Nike

Sports andSports andfitnessfitness

Like Jordan, Woods…Like Jordan, Woods…

AmericanAmericanJust do It!Just do It!

CoolCool””Athlete”Athlete”

Aggressive,Aggressive,Provocative,Provocative,In-your-faceIn-your-face

Sponsorship,Sponsorship,EthicsEthics

Physical productPhysical productSports andSports andfitnessfitness

PersonalityPersonalityTraditional, Conser-Traditional, Conser-vative, Collectivevative, Collective

CultureCultureEuropeanEuropeanTraditionalTraditional

Self-ImageSelf-ImageRelates more to Relates more to competing than to competing than to winningwinning

ReflectionReflectionTrue sportsmanshipTrue sportsmanshipStrong work ethicStrong work ethicA good team playerA good team player

RelationRelationQuality andQuality andHeritageHeritage

Brand Identity Prism - AdidasBrand Identity Prism - Adidas

BrandAwareness

PerceivedQuality

BrandAssociations

BrandLoyalty

Brand EquityBrand Equity

•EEndorsement ndorsement focus strategyfocus strategy•NNational ational advertisinadvertisinggNike:Nike:•DDevelopment of evelopment of NikeTown storesNikeTown storesAdidas:Adidas:•branded branded grassroot grassroot sponsorshipsponsorship

Nike: Nike: •SportsSports•Life styleLife style•AttitudeAttitude

Adidas:Adidas:•HeritageHeritage•TraditionTradition•QualityQuality

Nike:Nike:•Sales 1986:Sales 1986:$ 1 billion$ 1 billion•Sales 2002:Sales 2002:$ 9,9 billion$ 9,9 billionAdidas:Adidas:Sales 1992:Sales 1992:$ 1.7 billion$ 1.7 billionSales 1998:Sales 1998:$ 4.8 billion$ 4.8 billion

Three most important tools which have enhanced brand awareness on Nike

• Endorsement focus strategy– Participation of famous athletes with the company– Michael Jordan, Tiger Woods, Andre Agassi– They are heroes…– Succesful strategy during 80s and 90s– Costs – e.g. Jordan´s average salary about 20 million USD per year

• Nike Town– 13 Nike Towns in the world– High costs, cannot expect opening of a NT in the Czech Rep. soon

• National advertising– Innovative way, big extent of advertising, uses all communication mix– TV, internet, campaigns like „Just do it“– Costs – approximate costs of campaign like „Just do it“ about 100 million USD

Efficiency of strategies used by Nike

• Endorsement focus strategy– High efficiency in 80s, 90s– Jordan – possible to measure directly by amount of sales of Air Jordan

products– Nike golf sales increased to 250 million USD from 100 million USD in 2000– Supports brand awareness, has enhanced the image of the company

• Natinal advertising– Hard to express efficiency directly– Has helped to understand Nike mission, wearing Nike is more a live

philosophy than just a fashion

• Nike Town– Has brought to the branding and marketing world something absolutly new

and original, created strong brand identification

Expected orientation of Nike strategies

• New trend in the society – individuality the endorsement focus strategy will probably loose its power, people do not want to be like Jordan anymore…

• We can expect orientation to campaigns emphasizing individuality

• Possible transfer of investments from endorsement focus strategy to national advertising

How have Adidas used the instrument How have Adidas used the instrument Branding, and which roll did it play in the Branding, and which roll did it play in the

competition between Adidas and Nike?competition between Adidas and Nike?

Adidas used the same theoretical systems as Adidas used the same theoretical systems as Nike to develop their brand building. Nike to develop their brand building.

•media advertising, media advertising, •new subbrands, new subbrands,

•sponsorshipsponsorship•branded grassroot sponsorshipbranded grassroot sponsorship

Conclusion

• In this project were used two theoretical models – Kapferer Prism model for branding identity and model for brand equity

• Models were applied on companies Nike and Adidas and showed and explained main aspects of brand building of Nike and Adidas

• Revealed strong and weak sides of these companies in brand building

• This theoretical approach can be used in comparison of other companies due to its theoretical background

Thank you for Thank you for Your attention!Your attention!