Research problem:

1
Research problem How have Adidas used the inst
rument Branding, and which roll did it play in
the competition between Adidas and Nike?
Author Karolina Tichá
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Brand Identity Prism - Nike
Physical product
Personality
Sports and fitness
Like Jordan, Woods
Relation
Culture
Sponsorship, Ethics
American Just do It!
Self image
Reflection
Aggressive, Provocative, In-your-face
Cool Athlete
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Brand Identity Prism - Adidas
Physical product Sports and fitness
Personality Traditional, Conser- vative, Collect
ive
Culture European Traditional
Relation Quality and Heritage
Self-Image Relates more to competing than to
winning
Reflection True sportsmanship Strong work ethic
A good team player
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Brand Equity
Brand Awareness
Perceived Quality
Brand Associations
Brand Loyalty

• Endorsement focus strategy
• National advertising
• Nike
• Development of NikeTown stores
• Adidas
• branded grassroot sponsorship

• Nike
• Sports
• Life style
• Attitude
• Adidas
• Heritage
• Tradition
• Quality

• Nike
• Sales 1986
• 1 billion
• Sales 2002
• 9,9 billion
• Adidas
• Sales 1992
• 1.7 billion
• Sales 1998
• 4.8 billion

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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. Jordans 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

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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
  

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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
  

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How have Adidas used the instrument Branding, and
which roll did it play in the competition between
Adidas and Nike?

• media advertising,
• new subbrands,
• sponsorship
• branded grassroot sponsorship

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

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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

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Thank you for Your attention!