Research problem: How have Adidas used the instrument Branding, and which roll did it play in the competition between Ad

1. Research problem: How have Adidas used the instrument Branding, and which roll did it play in the competition between Adidas and Nike? Author: Karolina Tichá

2. Brand Identity Prism - Nike Physical product Personality Sports and fitness Like Jordan, Woods… Relation Culture Sponsorship, Ethics American Just do It! Reflection Self image Aggressive, Provocative, In-your-face Cool ”Athlete”

3. Brand Identity Prism - Adidas Physical product Sports and fitness Personality Traditional, Conser- vative, Collective Relation Quality and Heritage Culture European Traditional Reflection True sportsmanship Strong work ethic A good team player Self-Image Relates more to competing than to winning

4. 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

5. 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. Jordan´s 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

6. 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

7. 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

8. 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.

9. 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

10. Thank you for Your attention!