Puma

In addition, these companies are able to easily compete in the sports apparel market because the barriers to entry are low. On the other hand, many companies should think twice before entering the market. One reason is the large capital costs that are required to meet consumer demand in the market. In addition to large capital costs, some of the largest companies have gained customer loyalty based on their strong marketing skills. For example, Under Armour, Nike, Adidas, Reebok, ASICS, make new entrants into this industry much more difficult to compete with when these companies have a big share in the market already. According to Exhibit 4 in the textbook, it shows the major competitors and brands in 2013. Nonetheless, competition is intense in the sports industry market but, the high levels of product differentiation can also act as a barrier to entry for many companies because company’s need a high level of marketing to market their brand to consumers.

Customers make purchasing decisions based on the information they have among products and the values of goods a company offers. For that reason, companies have to promote their products to increase products awareness. In order to achieve organizational goals, companies must understand the market’s needs to ensure the success of their businesses. Such information can be gained through research. The industry that will form the basis of this paper is Western Canadian Shoe Association. The three brands under study are Reebok, Adidas, and Nike.

As the brand name of Nike continue to soar, other companies in the industry; learning from the success Nike has experienced, start focusing more on brand development to keep up with the increasing levels of competition. These companies resort to brand maintenance, which has become the main target in this industry due to product differentiation made by Nike. Nike, being market-advantaged, produces an extensive range of products, through which it gains a balanced level of profits. This has influenced rival companies to initiate a new range of products in their businesses too. Previously these companies had high risks of failing in business, if their single products did not appeal to the market. Due to the impact of Nike’s business strategy, the other companies are also enlarging their product range,

By the use of Porter’s Five Forces model to analysis the athletic footwear market around the world; our strategy is to cut the price of footwear in the Year 11 and 12, and to increase budget of advertisement and to bid celebrity endorsements in order to boost the sales volume in a competitive industry .

However, the link between what needs to be achieved and how marketing knowledge and skills can be utilized to deliver appropriate outcomes remains unclear. In contrast to this, there is a range of abilities, such as communication issues, about what explanation is needed if the implementation issue is progressing forward. The quality of Asics shoes is impeccable and that message has been portrayed well. They have had issues have an emotional connection, as a brand, to their customers, both the ones they aspire to sell to and their current customers. They need to implement a stronger expertise in consumer experience because the dynamic of retail shopping is evolving and it is important to deliver the ultimate experience a customer can

In the running era, the two brothers were separated and Rudolf began his own company Puma while Adi took over Adidas. The original name Adidas came up with a logo, the three stripes under that today stand out in the market. The company Adidas gradually gained the stance in the market after the logo was introduced in the global market. Adidas products were used in different sports during the Olympics and revolved around renowned athletes. At this time, the business had up to 100 employees who were engaged in the production of sport shoes for 11 different sports. Despite of the separation, the company grew and became the leading sportswear manufacturing company

Nike’s main strategy revolves around product branding. Their brand compromises of a swoosh logo which is accompanied by a message of “just do it”. The logo was imprinted on all of their products with the message developed to express the individuality of their target group. The branding was further promoted by Nike’s relentless approach on the quality of their product as demonstrated when considering overseas business opportunities, quality must not be compromised in order to do so. This ensures consumer satisfaction and loyalty towards Nike.

Brands use different strategies to create competitive advantages to beat with their rivals. Some companies use “Overall Cost Leadership” to increase profit by reducing costs and increase market share by lowering price. Some companies use “Focus Strategies” to select a group of market and tailor its strategy to serve that group. The others use “Product Differentiation” as a strategy to obtain a premium price by making unique products. Nike, with its differentiation strategy, the company is continuing to separate its self from the competitors by using its superior technology and innovation. This paper mainly discusses on the company’s product differentiation and analysis how the company using this strategy to build its brand image and become a market leader in sportswear industry. A brief discuss about Nike competitive advantage which related to its broad differentiation aspect and the company product life cycle are also presented on this paper.

There are many companies in the sports apparel, footwear and accessories industry, such as Nike, Adidas, Puma,

The strength of the competitive forces vary among the Under Armour, Nike, and The Adidas Group. The buyer bargaining power of Under Armour, is somewhat weak. Under Armour’s growth strategy entails, “Securing

PUMA is counted in the leading sports lifestyle companies of the world and is famous for designing and developing footwear, accessories and apparel. PUMA commits to serve its customers by supporting creativity, sustainability and peace. It promises to be fair, loyal, honest and creative in its decisions and actions. The unique feature of PUMA is that it manufactures sports stuff keeping in mind the fashion and style (Parasuraman, Grewal and Krishnan , 2007). It has collaborations with famous designers like Alexandra McQueen and Mihara Yasuhiro. PUMA group that was founded in 1948 has now three brands; PUMA, Tretorn and Cobra Golf. It distributes its products to more than 120 different countries across the globe and has a network of around 11000 employees.

1. What is adidas’ position in the athletic shoe market? How does the brand seem to be doing in this market? Position: the position of adidas has transferred from “leading supplier of soccer footwear worldwide” to “leading sport brand”. Adidas was founded in Germany in 1920. In 1995, it became a public company as well as the leading supplier of soccer footwear due to its great performance of footwear sales. In 1998, adidas began to move into the U.S. market. Adidas doubled its U.S. market share within only one year, so it hoped to continue to make big move in following years. In its way to U.S. market, adidas confront with the

In the surroundings of this Adidas retail store, we can find different competence from another retail stores such as Nike, Puma, and a bunch of different sportswear retailer (Foot Locker, Finish Line, and Modell’s)

Puma is a sport brand created in 1924 In Germany by Rudolf Dassler the brother of Adolf “Adi” Dassler who founded the competitor ADIDAS.

Puma is one of the world’s leading athletic footwear, apparel and accessories companies. The history of the company began in 1948, when Rudolf Dassler, the founder of Puma, had separated from the existing business assets “Gebrüder Dassler Schuhfabrik”. Throughout the years they were the first to introduce many new footwear innovations, including vulcanized soles on soccer shoes, uniquely shaped soles on running shoes to enhance natural motion, athletic shoes with a Velcro strap, and the Puma Disc system, which replaces laces with a series of wires. Thereby gaining a great success in football and athletic boots . In 1986 company went public under the leadership Armin Dassler. In 1993 a new CEO Jochen Zeitz manages to turn the company from the law price to premium company that is ranked as one of the three leading brand in the sporting goods industry .