ENTREPRENEURSHIP PROJECT CASE STUDY INTRODUCTION CONTENTS 1. | ACKNOWLGEMENT| 2. | AIM| 3. | INTODUCTION OF THE COMPANIES| 4. | COMPARISION OF MARKETING STRATEGY| 5. | DATA ANALYSIS| 6. | DATA REPORT| 7. | CONCLUSION| ACKNOWLEDGEMENT I would like to thank my teacher Mrs. Grace for her extensive support in the completion of this entrepreneurship project and also providing me with help full tips. This project has enlightened me and made me more aware of the product. I would also like to thank all my classmates for their help in doing this project.
AIM The main aim of this project is to compare and identify the various marketing strategies followed by two of the world’s best sports company’s Adidas and Nike as they have been in rivalry for a long time. I would also like to find out the strengths and weakness of both the companies. INTRODUCTION OF THE COMPANIES ADIDAS Adidas AG is a German sports apparel manufacturer and parent company of the Adidas Group, which consists of the Reebok sportswear company, golf company (including Ashworth), and Rockport.
Besides sports footwear, the company also produces other products such as bags, shirts, watches, eyewear, and other sports and clothing-related goods. The company is the largest sportswear manufacturer in Europe and the second-biggest sportswear manufacturer in the world, with American rival Nike being the biggest. Adidas was founded in 1948 by Adolf “Adi” Dassler, following the split of Gebruder Dassler Schuhfabrik between him and his older brother Rudolf. Rudolf later established Puma, which was the early rival of Adidas. Registered in 1949, Adidas is currently based in Herzogenaurach, Germany, along with Puma.
The company’s clothing and shoe designs typically feature three parallel bars, and the same motif is incorporated into Adidas’s current official logo. The “Three Stripes” were bought from the Finnish sport company Karhu Sports in 1951. The company revenue for 2009 was listed at€10. 38 billion and the 2008 figure at €10. 80 billion. Marketing strategy of Adidas:- *Products:- * The core benefit is to satisfy consumers’ needs or want. * Caters for different needs and wants of consumer * Uphold its brand by constantly upgrading and improving products’ innovative features and quality to satisfy its customers. Today, Adidas has established itself as a strong brand for sports apparels. *Price:- * Adidas is a shopping product * Able to penetrate the market as it is cheaper than its competitors * Uses market skimming *Promotion:- * Promotion objective * Become the NO. 1 sporting brand in the world. * Promotion Mix * Advertising commonly through the mass media. * Through the use of the internet * Point of Sale * ‘Impossible is Nothing’ campaign *Place:- * Distributing some of the Adidas products to the various sporting outlets * Adidas outlets * Online purchasing through the internet NIKE Nike, Inc. pronounced NKE) is a major publicly traded sportswear and equipment supplier based in the United States. The company is headquartered near Beaverton, Oregon, which is part of the Portland metropolitan area. It is the world’s leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment with revenue in excess of US$18. 6 billion in its fiscal year 2008 (ending May 31, 2008). As of 2008, it employed more than 30,000 people worldwide. Nike and Precision Cast parts are the only Fortune 500 companies headquartered in the state of Oregon, according to The Oregonian.
The company was founded on January 25, 1964 as Blue Ribbon Sports by Bill Bowerman and Philip Knight, and officially became Nike, Inc. on May 30, 1978. The company takes its name from Nike the Greek goddess of victory. Nike markets its products under its own brand as well as Nike Golf, Nike Pro, Nike+, Air Jordan, Nike Skateboarding and subsidiaries including Cole Haan, Hurley International, Umbro and Converse. Nike also owned Bauer Hockey (later renamed Nike Bauer) between 1995 and 2008. In addition to manufacturing sportswear and equipment, the company operates retail stores under the Niketown name.
Nike sponsors many high profile athletes and sports teams around the world, with the highly recognized trademarks of “Just do it” and the Swoosh logo. Marketing strategy of Nike:- *Product:- * Nike’s foremost focus is athletic footwear and apparels designed for sports and everyday usage with the brand name. * New product offerings under the name of brand include sports balls, eyewears, bats etc… * They also utilize the auxiliary bodies to sell the sports related raw materials and products. *Price:- * The company has designed its pricing structure in a way to make it competitive to other shoe sellers. The prices of the products are variable depending on the type and the size. *Promotion:- * The company has used electronic media (commercials, websites and newspapers) to promote their brand. * Many well known athletes have also worked for the advertisement of the brand. * They sponsor events for the marketing of the brand. * The brands swoosh logo and image played an important role in its advertisements. *Place:- * Nike has its individual stores and also available at major malls all over the globe. * The company also sells its products through individuals, auxiliaries and licenses. The company has its production units, customer services and operational units all over the world. * Online purchasing through the internet COMPARISION OF MARKETING STRATEGY Nike remains firmly focused on the domestic market, although it has made inroads into the lucrative international soccer market fairly recently. The company is also considered largely responsible for the frenzy of athlete sponsorship that the industry is known for today. All of this ties in with Nike’s dominance of the advertising and marketing aspects of the business, a hold that the company will likely retain for the foreseeable future.
Adidas on the other hand has traditionally focused on the European market, although it is a formidable name in the rest of the world as well. This is mainly due to the company’s affiliation with soccer, which is widely considered to be “the” International sport. The company has recently taken steps to increase its marketing and advertising budget, and has even made inroads into the lucrative sports equipment and sportswear markets. DATA ANALYSIS DATA REPORT Now different methods of promotions are used to promote sales.
Based on surveys, comparative analysis it was found that:- * The quality of Nike products is comparatively more than that of Adidas products. * Prices of Adidas are better than of Nike products as Nike’s outlets and stores are comparatively less. So middlemen and other charge a higher price for Nike products. * Nike introduces more stylish products into the market. * Nike advertisements are comparatively better than Adidas advertisements. * Nike is more innovative than Adidas. * Customer satisfaction of Nike products are more than that of Adidas Products. * The global sales of Nike is than more than Adidas