Presentation On Brand Imitation

Nike Vs Adidas

Presented By:-Bhanwar SinghMBA 4th Sem

Krupanidhi Business School

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Corporate Brand In which brand and corporate name is sameIBM, Nike, Sony, Mitsubishi

Product Brand Separate brand identities for different productsSprite, Mr Pibb under coca-cola, Lux and Dove from Unilever

What is Brand and explain types of brand ?

“A brand is a intangible but critical component of what an organization stands for…” Scott Davis

What is Brand ?

Types of Brand

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Brand architectures There are four basic “brand architectures” available to firms:(1) corporate (2) product(3) corporate-and-product (4) product-and-corporate

Brand architectures

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NIKE

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History of NIKE Inc.

Its name is derived from a winged Greek goddess. “Swoosh” logo designed by Caroline Davidson. Is now one of the world’s top shoemaker that captures

more than 20% of US athletic market.Original name of Nike given by Phil was “Blue Ribbon

Sports”.With an agreement and handshake in 1964, they began

importing Japanese brand Onitsuka Tiger running shoes. By late 70’s, Nike had moved from $10million to

$270million in sales.In 1996, revenue increased to $6.74billion. Sales

reached $12billion in 2000.

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Footwear

RunningBasketballSoccerSport-inspired urban shoesChildren’s Shoes

Also SellsApparels and AccessoriesAthletic BagsOffers Apparels for Licensed Sports Team

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Advertising Strategy

Designed to make a connection to the consumer

Seldom pitch the product directly or talk about product attributes

Sometimes don’t even mention the company’s name, featuring instead only the swoosh logo

Seek to portray the core values of sport

Collaboration ads with another strong branded product, such as Apple iPod

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Adidas Introduction

Type : Public (AG, FWB: ADS) Founded : 1924 (registered in 1949) Founder(s) :Adolf Dassler Headquarters :Herzogenaurach, Germany Key peopl :Herbert Hainer (CEO),Erich Stamminger (CEO, Adidas

Brand), Igor Landau (Chairman of supervisory board) (2009-) Industry : Designing and Manufacturing Products :Footwear, Sportswear

Sports equipment

Toiletries Revenue : €10.799 billion ($15.6 billion) (2008) Operating income : €1.070 billion ($1.5 billion) (2008) Profit : €642 million ($933 million) (2008) Employees :38,980 (2008) Website http://www.adidas-group.com/

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Products of Adidas

Adidas Footwear, apparel, and hardware such as bags and balls Reebok Footwear, apparel and hardware

Rockport Footwear

TaylorMade-adidas Golf Golf Equipment: metalwoods, irons putters, golf balls,

footwear, apparel and accessories

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Official Sportswear Partner of the Beijing Olympics in 2008

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Nike and Adidas are sportswear companies whose products are popular around the world, while Nike has the upper hand in sales and sponsorships , Adidas is growing rapidly. Adidas ownes Reebok, Taylor Made golf company and Rockport. Nike ownes Umbro , Hurley, Converse and Cole Haan .

Adidas The name adidas stems from the name of the founder

Adolf "Adi" Dassler. Nike Came from the Greek name for the Goddess of Victory

Originally named "Blue Ribbon Sports" Motto Adidas' motto is "Impossible is nothing." Nike's motto is

"Just do it."

Nike Vs Adidas

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SWOT Analysis of

StrengthsSponsoring of sports athletes and gain of valuable coverage.Development of high quality products at reasonable price.Re-location of products.Brand LoyaltyHigh prestige i.e. Famous

WeaknessPressured to charge low prices.Due to diversified products, values fall as market shares fall.

Opportunities - redoHas established global brand recognition due to sporting events.Treated as a fashion brand by youths and thus stays in demand.Due to high quality products, it brings in more profit.

ThreatsFake products.New brands of the same quality with lower price margin leaving a competitive advantage.

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SWOT Analysis of Adidas

Strengths .Good financial position •Effective Marketing Strategy•Market Leadership •Strong online presence•Strong brand •Strong international operations•Strong distribution chain

Weaknesses .High cost structure•Over pricing •Low quality products/services•Limited product line

Opportunities .Change in consumer lifestyles•Available technological innovations •Entering new markets•Expand customer base (Geographically or through new products) •Expand product/service lines•Market Diversification•Merger or takeover

Threats .Competition from foreign markets•Competitor's actions •Change in consumer lifestyles•Changing consumer patterns •Financial slowdown•Increase in taxation •New competitors entering the market•Price war between competitors

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0

2000

4000

6000

8000

10000

12000

1038110799

1029910084

6635.63

5860.016266.8

6523.42Sales

EBIT

Depreci-ation

Total Net Income

EPS

Tax Rate(%)

12/1

2/02

12/1

2/03

12/1

2/04

12/1

2/05

12/1

2/06

12/1

2/07

12/1

2/08

12/1

2/09

Rupees(In

Mill.)

Years

Income Statement - 08 Years Summary (in Millions) of Adidas

0

5000

10000

15000

20000

25000

19176.118627

16325.9

14954.913739.7

12253.1

106969893

Sales

EBIT

Depreciation

Total Net Income

EPS

Tax Rate(%)

05/0

9

05/0

8

05/0

7

05/0

6

05/0

5

05/0

4

05/0

3

05/0

2

Years

Income Statement - 08 Years Summary (in Millions) of Nike

Comparison of Nike and Adidas With Their Balance Sheet and Income Statement

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Balance Sheet - 08 Years Summary (in Millions) of Adidas

0

2000

4000

6000

8000

10000

12000

8875

9533

83258379

5750.24

4433.884187.81

4260.815104

6147

53025551

3066.412889.992832.02

3179.45

1571177819602325

1035.12933.95

1225.391574.05

Current as-sests

Current liabil-ities

Long Term Debt

Share Outstand-ing

12/1

2/09

12/1

2/08

12/1

2/07

12/1

2/06

12/1

2/05

12/1

2/04

12/1

2/03

12/1

2/02

Rupees(In

Mill.)

Years

Balance Sheet - 08 Years Summary (in Millions) of Nike

Years

0

2000

4000

6000

8000

10000

12000

1400013249.6

12442.7

10688.3

9869.6

8793.6

7908.7

6821.16440

4556.24617.1

3662.63584.1

3149.13126.7

2830.1

2600.7

Current as-sests

Current liabil-ities

Long Term Debt

Share Outstand-ing

05/0

9

05/0

8

05/0

7

05/0

6

05/0

505

/04

05/0

3

05/0

2

Years

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Branding strategy in the international context is a crucial issue for firms from developed countries aspiring to succeed in emerging markets.

However, the choice and adoption of a certain branding strategy is not a static process.

There is no single branding strategy that works for all firms or organizations (Gulati and Garino,2000).

As firms gradually establish their presence in the emerging markets, accumulate marketing experiences and expand capacity, their target consumers or segments may evolve as well as their market position.

Conclusion: