Adidas and Nike

1270 WordsMar 24, 20166 Pages
ADIDAS AND NIKE Nike and Adidas are two the largest sportswear companies of nowadays. They are the giants in the sportswear industry, which always introduce innovative products, in order to become the ultimate market leaders. Nike is an American multinational corporation, which produces footwear, clothes, equipment and other active sport items (Feifer 2014). The company was founded in 1964 by Phil Knight and Bill Bowerman. Nike uses specific method of advertising, which differentiates it from other sports companies; it creates motivational short videos, which promote sport and inspire people to stay fit. Hence, making an accent on sport, but not sportswear, Nike attracts customers in nonintrusive manner. In 2013, the total revenue of…show more content…
Due to the new small brands, Adidas promotes its own brands, making additional advertisements for its products. In addition, Adidas is not solely concentrated on the sportsmen’s demands. The promotion strategy also concentrates on an average consumer who has or may have no connection with sport life. Hence, the promotion strategy of Adidas embraces wider range of opportunities, which give some advantages for products promotion, comparing to Nike. Adidas uses high-low pricing method as a key instrument of price regulation. First, the company sells new goods using the high-price, but offers significant discounts, which make the price lower up to 50% (Seroka & Love-Johnson 2005). On the one hand, the point of this strategy is to demonstrate customers the availability of the products and the company’s loyal attitude to its clients. On the other hand, Nike tries to offer an average price on its products. Hence, a Nike’s brand may cost up to 20% cheaper than a similar product introduced by Adidas (Holmes & Bernstein 2004). In fact, both companies will receive almost the same revenue for a new product line, but the amount of the profit will be different at the beginning and at the end of the selling. In conclusion, it can be said that both companies do well and have their own loyal customers. Despite the differences in the marketing strategies, they are able to stay on the top of the global market. From my point of view, Nike should pay more

More about Adidas and Nike

Open Document