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					                                     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.

				
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posted:7/30/2012
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