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Business and Finance

Brand Equity Diagnosis: Nike and Adidas

Introduction

Nike and Adidas are some of the most globally recognized brands. More or less all the major sporting teams try to associate themselves with these brands. Despite the fact that they are in close competition, each brand has determined its own niche and has become successful in their own rights. In this paper, it would be seen that how SWOT stand for each of the organization as well as how they narrate themselves in the context of the CBBE model.

SWOT Analysis of Nike

Strengths

  • Variation in product range
  • Global reach and brand equity
  • Strong research and development

Weaknesses

  • Too much reliance on proceeds from footwear
  • Highly price sensitive retail scene

Opportunities

  • Aesthetically pleasing brand meaning much broader target market
  • More chances for product development
  • Can present itself in global sporting competitions due to its equity

Threats

  • Due to international reach, and nature of trade means that profit margins are highly dependent on global currency market
  • Highly competitive marketplace

SWOT Analysis of Adidas

Strenghts

  • One of the oldest sporting brand having its own share of legacy
  • Diversified portfolio of products
  • Strong collaboration and membership with international sporting bodies

Weaknesses

  • Higher price range and thus limited market penetration
  • All the manufacturing is outsourced which is a big business risk

Opportunities

  • The demand for premium sports good is always increasing as more and more people are turning towards the healthy lifestyle
  • New markets such as BRIC provide an avenue for them to sell their product
  • Expansion in the product line would also open new set of opportunities

Threats

  • Again, in a highly competitive market, there is always a pressure that the competitors is going to upstage Adidas
  • As the majority of the supply is outsourced, it is potential risk for the business
  • Government regulations are always changing thus affecting the cost of business in a certain country.

CBBE and Communication of the Brand Narrative

In the next section, CBBE of both the businesses is carried out keeping in their respective brand identity as well as brand meaning and response (Song et al. 2017, p.69).

CBBE Nike

One of the key thing that goes for Brand Nike is that how they are expected to deliver high end solution most of the times as well as making sure that they develop appropriate design. Furthermore, the higher technical performance rather than the aesthetics have made Nike rather popular among the elite sportsmen. The key feature of their brand narrative most of the times is that how inspiration is needed to be provided to the people. Now, coming towards the feeling that general people have about the brand, one of the key feelings that is associated with the brand is that how it tries to bring about excitement, fun and an element of self-respect into the life of the individuals. Furthermore, the resonance of the idea is such that it gives credence to the possibly that greater customer interaction is being witnessed. It is one of the prime reasons that they associate themselves with the people who have higher status as well as having a competitive streak among them (Morgan et al. 2015, p.223).

CBBE Adidas

Adidas is one of the oldest sporting merchandising brands and thus have created a legacy for them in the long run (Morgan et al. 2015, p.223). The idea behind the brand is to make sure that the imagery is created that allows popular sportsmen and athletes to be the face of the brand. The higher credibility that comes from these sections is one of the key things that work for the advantage of the business (Morgan et al. 2015, p.223). Even though they do not offer as much as customization. The other thing that it tends to show is that how they portray themselves as one of the legal brands (Morgan et al. 2015, p.223).

Similarities and Difference in the Narrative of Both Brands

There are many similarities that one can see as far as the way narrative of both the brands has been set out. Both are at the top of pyramid when it comes the sporting merchandise around the world (Holtbrügge and Schuster, 2017, p.19). At the same time, the target market and the demographics that they cater to are also more or less the same. It is the subtle difference with regards to the branding strategy that one gets to see the difference in. For instance, while Adidas seems to target individuals and athletes. Nike seems to get on board whole teams for their purpose. The other thing is that while Nike uses its footwear to gain leverage into the market, the case can be made that Adidas product line is much more rounded and well-constructed (Holtbrügge and Schuster, 2017, p.19).

Communication Strategy of Both the Brands

If one wants to determine whether both the brands have successfully talked about their narrative, then in different manner, it can be called a success (Choi et al. 2015, p.242). While Nike has made larger than life adverts and with the help of the sponsors try to forge an identity of their own, Adidas is about making sure that each of the common person who is trying to stretch themselves for the sporting glory must work hard all the time (Choi et al. 2015, p.242).

Recommendations for the Brand

The key thing for them to is to make sure that they get rid of this elitist mindset that they have developed. The idea is that these two brands are certainly there for the elite’s sportsmen do serve their narrative for the short run but in the long run they are losing out on an exceptional business opportunity .

References

Choi, H., Ko, E., Kim, E.Y. and Mattila, P., 2015. The role of fashion brand authenticity in product management: A holistic marketing approach. Journal of Product Innovation Management, 32(2), pp.233-242.

Holtbrügge, D. and Schuster, T., 2017. The Internationalization Strategy of Adidas. The Internationalization of Firms: Case Studies from the Nürnberg Metropolitan Region, p.19.

Morgan, R., Magin, S., Huber, F. and Herrmann, A., 2015. The Why of Buying Nike–Findings of a Causal Analytical Study. In Creating and Delivering Value in Marketing (pp. 223-223). Springer, Cham.

Song, X., Huang, F. and Li, X., 2017. The effect of embarrassment on preferences for brand conspicuousness: The roles of self‐esteem and self‐brand connection. Journal of Consumer Psychology, 27(1), pp.69-83.

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