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. b) Acceptance levels of the 2 brands in the consumers of your city. c) Consumer feedback for improvement, if any, of NIKE/ADIDAS. Ans: The Finally report After visit of Six Outlets of Nike & Adidas: Introduction: As we know that both the brands NIKE and ADIDAS are having a very good reputed brands in the market and both the brands have different market segments and different strategy.

After Thorley going through the case study and also visiting to both Nike and Adidas outlets the market in my city Delhi has more consumers of ADIDAS shows as compared to the NIKE. Now I am going describe about the market study as per the consumer demographical depending on their Age, Education, Income, Gender, Occupation. a. Description as per the Consumer Demographical Profile: Age Group: The division of age group is like teenagers(18-25), youth(25-35), Men(35-50) and Senior citizens(50+). As per the age group the consumption of footwear is more in the working men and youth who are in the sports field.

The graph shown below indicates the consumption of the shows in ADIDAS branded Outlets including the outlets in the shopping-malls. [pic] Education Group: The educational group has divided into three groups these are Schooling, Graduates, Master Degree, and lastly the PhD students. The consumption of the footwear is more in the graduate students as compared to the other age group. The graph shown below is the consumption of the ADIDAS shows in the market by different groups. [pic] Income Group: The Indian income group is divided into three income groups

Lower, Middle, and Upper Class. Both the brands have their target segment of middle and upper class so the statics are as per consumption of these two groups. The graph prepared as per consumes of ADIDAS footwear. [pic] Gender Wise: The distribution of group is simple as Male and Female. The consumption of footwear is more in males compared to female. the males are so interested in wearing spots shows while the females are more interest in wearing casual wear. The graph of the above statement is as shown below. [pic]

Occupation wise: There are so many occupation but as per survey the occupation divided into three broad categories Business, Service, students. In this category the most consumers comes from the business group. The graph shows the occupation wise demand [pic] b. Acceptance levels of the two brands in the consumers of your city: In my city Delhi both brands have good market reputation and both have “n” number of customers in their target segment. The ADIDAS has slightly high share hold in comparison with the NIKE but both the brand has good market grip. [pic] c.

Consumer feedback for improvement, if any, of ADIDAS: 1. The consumer feedback is to improve the delivery system while booking the product online. 2. Negative image portrayed by poor working conditions in its overseas factories. E-commerce is limited to USA. 3. The range of product remains same for a long duration. 4. The numbers of outlets are less in the city. 5. The brand should provide an offer and sale margins. CONCLUSION: After going through the retailed outlets of both brands came to conclusion that ADIDAS is having a large retail chain and more outlets.

The ADIDAS has market share hold then compared to of NIKE, but now both the brands stared working on to overcome problems that are being faced now as well as future problem of entering into low segment and varying price in every short interval. Even the ADIDAS has good customer relation as it is good to capture the Indian market. 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. Ans: The answer to this question is in the form of PPT and presentation is given in the class. . Prepare a SWOT report of NIKE vis 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 Analysis Report of Nike: Strengths: • Nike is a very competitive organization. Phil Knight (Founder and CEO) is often quoted as saying that ‘Business is war without bullets. ‘ Nike has a healthy dislike of is competitors. At the Atlanta Olympics, Reebok went to the expense of sponsoring the games. Nike did not. However Nike sponsored the top athletes and gained valuable coverage. • Nike has no factories.

It does not tie up cash in buildings and manufacturing workers. This makes a very lean organization. Nike is strong at research and development, as is evidenced by its evolving and innovative product range. They then manufacture wherever they can produce high quality product at the lowest possible price. If prices rise, and products can be made more cheaply elsewhere (to the same or better specification), Nike will move production. • Nike is a global brand. It is the number one sports brand in the World. Its famous ‘Swoosh’ is instantly recognisable, and Phil Knight even has it tattooed on his ankle. Weaknesses: The organization does have a diversified range of sports products. However, the income of the business is still heavily dependent upon its share of the footwear market. This may leave it vulnerable if for any reason its market share erodes. • The retail sector is very price sensitive. Nike does have its own retailer in Nike Town. However, most of its income is derived from selling into retailers. Retailers tend to offer a very similar experience to the consumer. Can you tell one sports retailer from another? So margins tend to get squeezed as retailers try to pass some of the low price competition pressure onto Nike.

Opportunities: • Product development offers Nike many opportunities. The brand is fiercely defended by its owners whom truly believe that Nike is not a fashion brand. However, like it or not, consumers that wear Nike product do not always buy it to participate in sport. Some would argue that in youth culture especially, Nike is a fashion brand. This creates its own opportunities, since product could become unfashionable before it wears out i. e. consumers need to replace shoes. • There is also the opportunity to develop products such as sport wear, sunglasses and jewellery.

Such high value items do tend to have associated with them, high profits. • The business could also be developed internationally, building upon its strong global brand recognition. There are many markets that have the disposable income to spend on high value sports goods. For example, emerging markets such as China and India have a new richer generation of consumers. There are also global marketing events that can be utilised to support the brand such as the World Cup (soccer) and The Olympics. Threats: • Nike is exposed to the international nature of trade.

It buys and sells in different currencies and so costs and margins are not stable over long periods of time. Such an exposure could mean that Nike may be manufacturing and/or selling at a loss. This is an issue that faces all global brands. • The market for sports shoes and garments is very competitive. The model developed by Phil Knight in his Stamford Business School days (high value branded product manufactured at a low cost) is now commonly used and to an extent is no longer a basis for sustainable competitive advantage. Competitors are developing alternative brands to take away Nike’s market share. As discussed above in weaknesses, the retail sector is becoming price competitive. This ultimately means that consumers are shopping around for a better deal. So if one store charges a price for a pair of sports shoes, the consumer could go to the store along the street to compare prices for the exactly the same item, and buy the cheaper of the two. Such consumer price sensitivity is a potential external threat to Nike. FUTURE CHALLENGES OF NIKE: ? Difficult to enter in the lower segment. ? More competition from other local brands. ? As the internet market increasing the retail chain reduces.