VIEWS: 34 PAGES: 8 POSTED ON: 7/30/2012
Nike Vs Adidas 1. Visit minimum 5 retailers of NIKE/ADIDAS and prepare a brief summary report of: a. Typical customer profile/demographic profile of the products of NIKE/ADIDAS shoes. Consumer Demographical Profile: AGE: Nike: 12-45 year old people were involved. Adidas: 16- 34 year old people were involved. EDUCATION AND INCOME GROUP: Nike: In education group Nike targets on schooling, graduates and post graduates. In income group Nike concentrates on middle and upper income people. Adidas: In education group Adidas concentrates on graduates and post graduates. In income group Adidas targets on middle and upper income people. Gender: Nike: Male or female. Adidas: Male or female. LOCATIONS: Nike: Around the world mostly brand was recognized in USA. Adidas: Around the world, mostly brand was recognized in Netherlands. b. Acceptance levels of the 2 brands in the consumers of your city. NIKE: The “Consumer Decides” is one of Nike's 11 maxims that really define where Nike is. Today, consumers have never held as much power as they do today. They have more choices and more access to those choices. They connect and collaborate with each other over the world. Clearly, the power has shifted to consumers. For every Nike employee, there are ten million consumers out there deciding whether or not the products and brands we offer really matter. The ability of Nike have to connect with consumers is the single most important competitive advantage in business today, and nobody does that well than Nike. ADIDAS: The Company provides a service that, until now, was only available to top athletes, Customers feet are scanned using a foot scanning system, in order to determine the exact length, width and pressure distribution of each foot. This information is entered into a software program at a sales kiosk to determine the best-fitting shoe. The customer is then given prototype shoes in the right fit and style to try on. Once satisfied with fit, the customer designs the color elements and selects material preferences. All of these steps are performed with the help of a sales kiosk leading the customer through the co-design process, supported by a sales clerk. The shoes arrive within three weeks. In store design of Adidas c. Consumer feedback for improvement, if any, of NIKE/ADIDAS. Nike and Adidas were the brands which maximum have the focus on athletes and younger age people but not to children, competitors of Nike and Adidas were coming with junior shoes. Example: Reebok, Puma So, customers suggest designing shoes for children. Adidas Nike 2. Prepare a presentation report (10 slides max) on the comparative study of NIKE & ADIDAS. Use real data to represent the sales figures of the 2 organizations for the year 2009-2010. Target audience: Nike: 12- 45 year old. Adidas: 16-34 year old. Slogan: Nike: Just do it Adidas: Impossible is nothing Functional brands: Nike: High technology shoe that will improve performance and provide comfort. Adidas: Stylish, practical shoe that will improve performance and provide stylishness and comfort. Logo: Nike: “Swoosh” symbol Adidas: Three stripes symbol Sub brands: Nike: Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding. Adidas: Style Essentials, Originals, Performance. Emotional benefits: Nike: Exhilaration of athletic performance, feeling engaged, active, healthy and powerful. Adidas: Feeling healthy and powerful, style credibility and originality. Revenue: Nike: $19.0 billion (2010) Adidas: $8.173billion (2010) Adidas Nike Adidas Nike Adidas Operations in India: Though Adidas entered into a license agreement with Bata in 1989, it formally began operations only in 1996 with the establishment of Adidas India Marketing Private Limited. In 1998 Adidas pulled a masterstroke, they roped in Sachin Tendulkar as their brand ambassador which proved a sound business decision. In 1999, keeping in mind the price conscious Indian consumer, Adidas launched its cheapest ever shoes in India. In2004,Adidas India launched the advantage Adidas campaign, which increased sales by30%. In2005, Andreas Gellner took over as Managing Director for Adidas India. Adidas sees India as a huge growth market and according to Gellner, Adidas will invest huge sums to take on its competitors here. Nike Operations in India : Nike has been present in India for over a decade through its seven year license agreement with Sierra enterprises, which didn’t help much in the bigger scheme of things as Reebok and Adidas came to the country with fully owned subsidiaries. This explains why the global market leader is still lagging behind in India. In2004, instead of renewing its franchise, it became a subsidiary and started operating with more freedom and capital. The result was that the market share rose and Nike became a force to contend with in the Indian market. Probably the biggest sign of the change in guard was the heavy investment in Cricket by Nike, culminating in its bagging of the Indian cricket team’s jersey rights, worthRs200 Corers. Nike then launched its special range of cricket shoes and sponsored the Indian football team as well. Though Nike has entered the market in earnest very late, the world no.1 will stop at nothing to gain lost momentum in the Indian subcontinent 40 35 30 25 20 Honest Adidas 15 Honest Nike 10 5 0 Strongly Disagree Neutral Agree Strongly Disagree Agree Two sports brands Two personalities Adidas: › Fashionable › Practical › A lifestyle brand Nike: › Innovative › Creative › An iconic brand 3. Prepare a SWOT report of NIKE vs. competition both in the branded as well as the unbranded market in your city. What are the future challenges that NIKE may have to overcome in the market? SWOT: Strengths: Strong control over its own distribution channel. Strong customer base. Strong financial position with minimal long. Innovative designs in footwear enabling consum ers to design their own shoes online. Brand reputation and recognition. Diversity and variety in products offered on the web (footwear, apparel, sporting e q ui pm e nt , et c . ) Weakness: Negative image portrayed by poor working conditions in its overseas factories. E-commerce is limited to USA. The direct sale to consumers is creating conflicts with its own resellers. Currently available supply chain, manufacturing, and fulfillment technologies aren't e as ily i nte g ra te d wit h o n l i ne b ui l d - to -o r de r no t kno w n fo r i ts r ese a r c h a n d development leading to innovative designs systems. The e-commerce is limited to USA, however, has planned to expand to Canada and international in the near future. Online customer service is not "helpful" or easy to find. Merger with Salomon will allow Adidas to gain a strong foothold in the Skiing Industry. Duplication of products from non-branded companies. High pricing when compared to low branded companies. There have been many customer complaints, and instances of shoes (such as Nike Shox) failing after little use, and sometimes causing foot injury. Opportunities: Increasing demand in the industry for products available online. Increase female participation in athletics. E-commerce will reduce the cost of goods sold thus improving the "bottom line". New technology and innovation to stay on top of market needs. Expand e-commerce to global markets. Possibility of outsourcing the web development and e -commerce to a third part developer. Growing interest in the sport of Basketball. Partnering up with other retailers to sell basketball footwear and apparel. Growing reputation in non-basketball sports will boost e-business. Collaborate with other online retailers to offer Nike products. Threats: A decrease in future orders at Nike Inc. sent shares of the athletic footwear giant down nearly 5% late Wednesday, while Bed Bath & Beyond Inc. bounced higher after the retailer's quarterly results came in brighter than Wall Street's projection. Nike (NKE 52.44, -0.75, -1.41%) shares fell 4.9% to $50.40 following the company's report that worldwide future orders for delivery from June through November fell 12% to $7.8 billion. Excluding currency changes, orders would have declined 5%. The company's fiscal fourth-quarter profit fell 30%, hurt in part by costs to cut jobs, but the earnings were better than expected. Net income fell to $341.4 million, or 70 cents a share. Revenue fell 7% to $4.7 billion. Negative image due to "sweatshops". Economic downturn in North America and Asian Countries. Increase in the price of providing technological solutions (e-commerce). S t ro n g co m pet it io n f ro m so m e o f i ts m a jo r c h al le n ger s in a ll b r a nc hes o f th e business. Continuing challenges in import/export duties. Negative image created by the sponsored athletes (i.e. Kobe Bryant and his sexual assault case). Increase in the Price of Raw materials. Nike's strong reputation in the footwear and apparel industry. Continuing challenges in import/export duties. Threats to free trade and foreign currency fluctuations. Possibility of distress from growing beyond its capabilities. Design and advertizing copied by competitors. Future scope for NIKE: Increasing demand in the industry for products available online. Increase female participation in athletics. E-commerce will reduce the cost of goods sold thus improving the "bottom line". New technology and innovation to stay on top of market needs. Expand e-commerce to global markets. Possibility of outsourcing the web development and e-commerce to a third part developer. Growing interest in the sport of Basketball. Partnering up with other retailers to sell basketball footwear and apparel. Growing reputation in non- basketball sports will boost e-business.
Pages to are hidden for
"The e commerce is limited to USA"Please download to view full document