...Branding in Soccer Light and Shadow Branding in Soccer Light and Shadow Introduction “Some people think football is a matter of life and death. I assure you, it's much more serious than that.” (Gloves, S. 2012) This much quoted comment of the former, British football manager Bill Shankly describes exactly my view of football. I am a big fan of the most popular sport in the world. Sure I know that this comment is exaggerated, but football becomes more and more important. Not only for the fans and the sportsmen, also for the global economy. (Hamil, S. and Chadwick, S. 2010) In professional football the success goes hand in hand with money. Today it is almost impossible to win a big trophy like the UEFA Championsleague without investing lots of money. The FC Barcelona is ranked as the best team in the world and invested in the last five years an average of 40 Million Euros per annum in new players. (Transfermarkt 2011) But where does all that money come from? According to Uli Hoeneß, the president of German football club FC Bayern Munich, only 15% of the twelve million DMs (6.1 Million Euros) revenue were out of broadcasting, marketing and sponsoring when he began in 1979 his career as a manager. (RP online 2011) His aim was to make his club independent from earnings from the spectators. As you can see in the following diagram he achieved his aim. In the year 2010 Bayern’s matchday earnings were only 21% of the total revenue. The biggest part is now coming from the commercial...
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...Mekyas Moges 11/18/2013 Sports Marketing Professor Master. Nike World Cup 1. Discuss the factors that have resulted in Nike Football becoming over a $1 Billion division and a major force in the football market. The Nike football brand believed that the only way to seize any kind of opportunity for growth is to first have a product that speaks for itself. Therefore, Nike believed that footwear product innovation should have the most focus. Nike had four steps to product innovation, development, design, marketing and most importantly, testing. The company spent hundreds of millions of dollars to create the right products that the athletes could preform well on. The fact that the 2006 world cup final between France and Italy, an Adidas and Puma team respectively, had 12 of the 22 starts still wearing a Nike shoe is a testament to the quality of the Nike products. Once Nike became a proven brand. It needed to find ways of reaching fans in unconventional ways because the Advertising rights were already bought out from Adidas. But, Nike saw how international players from South America and Asia were moving to European leagues and the game was about to transform from a “scoring matters” culture, to a “getting past your man is just a good” culture. This played well with Nike’s sponsorship with the Brazilian National team who were well known for their stylish way of playing football. Nike piggybacked this niche in the market to bring a new edge of football that promoted individual...
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...other established retailers are increasing competition in the yoga space. Industry veterans such as Victoria’s Secret and Adidas have entered Lululemon’s market, offering similar products at lower prices. Yet it is still difficult to compare Lululemon to its competitors as the smaller stores are too small and the sporting good giants offer more than one product category (clothes, shoes, sporting equipments) unlike Lululemon. Lululemon has a well defined target market and their performance so far reinforces the fact that the company has a strong ground. Its direct competitors are small businesses that run individual yoga apparel stores and retail stores located in gyms and fitness centers. One example is Dick’s Sporting Goods (DKS), which is a sporting goods retailer that sells both top sports brands’ products (e.g. Nike, Adidas etc.) as well as its own private label product lines, which accounts for 15% of its total sales. On a large scale, Lululemon competes with the sports industry giants Nike and Adidas which are the two largest manufacturers of athletic footwear and apparel in the world, respectively. Both the companies are enormous in terms of sales and market presence in comparison to Lululemon and both have their own stores and their products are carried in a multitude of online and brick-and-mortar stores; in 2008, the revenues for Nike and Adidas were $18.6 billion & $15.6 billion respectively, whereas Lululemon reported revenue of $353.5 million. However, the number...
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...NIKE, Inc NIKE, Inc. (NYSE: NKE) is an American multinational corporation giant who sells high quality footwear, apparel, and equipment accessories and service. HISTORICAL EQUITY PERFORMANCE: Nike has always been riding the wave and moved from strength to strength. If we look at the trading charts, obviously, there have been decline periods with Stock Market falls but that has been few and far between. Upon close observation, the only lull period in this century the stock has seen would be between 2000-2002 and the year 2005, except that there has been terrific performance of the company on the stock exchange. Mr. Mark Parker, Nike’s President and CEO said in a statement that "Fiscal year 2015 is off to a strong start. Our connection to consumers and ability to innovate, combined with our powerful global portfolio, is a complete offense; Nike has never been better positioned to realize our tremendous growth potential." (cnbc, 2014) After many years of stellar growth, the indication has been coming from the management that there is a bump up from the Football World Cup. As the company reported its first result after World Cup, the company indicated that it has found new growth pillars and they would be able to bank on that. Results in nearly all segments and geographies improved. Credit Suisse (CS) upgraded the stock and increased the price targets to $100. (Market watch, 2014) It's taking so much market share from competitors that Adidas's CEO even had to defend his company...
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...Nike Analysis Financial Management Spring 2016 Introduction Nike Inc. is one of the world’s largest marketer of athletic footwear and apparel, holding more than 37 percent of the market share. Nike is a multinational company having factories and retail stores in over 160 countries. However, Nike was not an overnight success as it took years to build the brand and create profitability. The idea of Nike came about in 1962 by Phillip Knight, a Stanford University business graduate. Traveling in Japan after finishing business school, Phillip Knight got in touch with a Japanese firm that made athletic shoes, the Onitsuka Tiger Co., and arranged to import some of its products to the United States on a small scale. This was until 1963, Knight took his shoe delivery to a track meet which sprung a partnership between Knight and William Bowerman, his former track coach. Knight and Bowerman, continued and worked hard on creating the best running shoes that gave the best results. Through development, Bowerman and Knight were able to sell these shoes and gain immense profitability. The business was quickly taking off which in turn, led to Bowerman and Knight hiring employees, who would then sell shoes out their cars. In 1967, the first retail space was purchased and with vast sales, it resulted in expanding the business to other parts of the United States. In 1970 The famous Nike swoosh which adds ultimate value and eye appeal to their shoes was designed by Carolyn Davidson...
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...MARKETING AT ADIDAS David Wesley prepared this case under the supervision of Professors Andy Rohm and Fareena Sultan solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services is the exclusive representative of the copyright holder and prohibits any form of reproduction, storage or transmittal without its written permission. This material is not covered under authorization from CanCopy or any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The University of Western Ontario, London, Ontario, Canada, N6A 3K7; phone (519) 661-3208; fax (519) 6613882; e-mail cases@ivey.uwo.ca. Copyright © 2005, Northeastern University, College of Business Administration Version: (A) 2005-11-07 Nick Drake, Global Media manager (Global Media Group) for adidas, arrived at the company’s headquarters to present a bold new marketing strategy, based around mobile phones. “We call it the Brand in the Hand,” he told the senior marketing executives who had gathered to present their strategy for the upcoming year. The Global Media Group had been arguing that mobile marketing was the surest, and perhaps only, way for adidas to break...
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...diverse industry, with specialized companies and competitors. Under Armour is a developer and distributor of athletic apparel, footwear and accessories for all ages and sexes. In November of 2005 Under Armour went public with an IPO and has since grown into a multi-billion dollar company gaining brand recognition through contracts with the Notre Dame Program and partnering with large nationwide retailers. The company primarily markets to consumers in North America. Internationally the company sells products to countries in Europe and a third party licensee sells products in Japan. Under Armour still faces heavy competition and competitors include large apparel, footwear and sporting goods companies with worldwide brand recognition like Nike, Adidas, and Columbia. Under Armour when compared to its competitors is still relatively new to the industry. The company’s wild success can be attributed to their adherence to quality and brand loyalty. Even with Under Armour’s rapid growth there is much more room for expansion into other product lines, consumer base, and geographical markets....
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...Question 1: What are the pros. Cons and risk associated with Nike`s core marketing strategy? Answer: Nike's excellence marketing strategies are their energy to achieve their market goals. Nike believes the "pyramid influence" that the preferences of a small percentage of top athletes influence the product and brand choice. PROS OF NIKE'S CORE MARKETING STRATEGY: Nike put heavily proportion in their marketing strategies and products deign. In order to sustain their dominance in the industry and retain their competitive advantages, Nike actively responds to the market trends and changes in consumer preference by adjusting their marketing strategies, the mix of existing product offerings, developing new products, styles and categories, and influencing sports and fitness preferences through various marketing strategies. CONS OF NIKE'S CORE MARKETING STRATEGY: Although Nike's marketing strategies had brings lot of positive implications to the company, but it will bring negative implications to Nike too. The negative implications that will identify in this assignment are high cost incurred, influence of spokesperson, and competitors. RISKS OF NIKE'S CORE MARKETING STRATEGY: Nike faces many risks when they use their core marketing strategies to achieve their goals and these risks can come from both internally and externally environmental circumstance. The risks will have a negative influence about Nike's future development, for example, the market share in the world, reputation...
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...Nike, Inc: Cost of Capital CASE SUMMARY In this case, Kimi Ford, a portfolio manager at NorthPoint Group, a mutual fund company, manages the NorthPoint Large-Cap Fund. This fund invests mostly in Fortune 500 companies with an emphasis on value investing. Some of the top holdings of the NorthPoint Large-Cap Fund include; ExxonMobil, McDonalds and GM, these stocks are generally old-economy stocks. Over 2000 and the first half of 2001, the NorthPoint Large-Cap Fund performed very well, earning a 20.7% return in 2000; over the same time, the S7P 500 fell 10.1%. The current time is July 2001 and just a year prior, there was an analyst meeting at Nike to review fiscal year 2001 performance. During this meeting, Nike revealed a plan for revitalizing the company. The company was in need of a kick start as sales were stuck at $9 billion and there was a drop in net income from $800 million to $580 million. To re-energize sales, Nike was going to produce more mid-priced athletic shoes, an area where Nike was weak in previous years. Nike also announced that it was going to push its apparel line which has been growing extremely well. With this new information, Kimi Ford is now considering purchasing Nike shares for the NorthPoint Large-Cap Fund. She reviewed numerous analysts’ reports but felt that there was no clear guidance on whether or not to buy the stock. To make a better decision, she decided to perform her own analysis. In this case, we will provide Kimi Ford with a...
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...Adidas nike case study - Document Transcript 1. VS1 2. A COMPARITIVE ANALYSIS OF MARKETINGSTRATERGIES FOLLOWED BY NIKE AND ADIDAS TEAM MEMBERSANUPAMA VENU 09014CLAES JOTORP 09126DEEPAK TUSHIR 09032GUSTAV TENERZ 09128SAIRAM KRISHNAN 09088SANJAY SHARMA 09090SUNANDA SURESH 09112 2 3. INDEX1. INTRODUCTION 1.1. BRIEF ANALYSIS OF INDUSTRY 1.2. BRIEF DEFINITON OF INDUSTRY 1.2.1.TRENDS IN THE INDUSTRY 1.2.2.MARKET ANALYSIS 1.2.3.MAJOR PLAYERS AND MARKET SHARES 1.3. MAJOR FORCES SHAPING THE INDUSTRY 1.3.1.PORTER S FIVE FORCES 1.4. PREDICTION FOR 2009-2010 1.5. THE COMPANY AND MAJOR PRODUCT LINES 1.5.1.BRIEF HISTORY OF COMPANY 1.6. FLAGSHIP PRODUCTS, MAJOR PRODUCT LINES, RECENT FORAYS 1.7. HISTORY OF THE BRANDS2. MARKETING STRATERGY 2.1. CUSTOMERS 2.2. COMPETITORS 2.3. COLLABORATORS 2.4. COMPANY 2.5. CONTEXT 2.5.1.TECHNOLOGY 2.5.2.SOCIO CULTURAL 2.5.3.ECONOMIC3. SEGMENTATION, TARGETING, POSITIONING 3.1. MARKET SEGMENTATION 3.2. SEGMENTS TARGETED 3.3. POD S AND POP S 3.4. VALUE PROPOSITION 3.5. POSITIOING 3.6. EVOLUTION AS A BRAND4. MARKETING MIX 4.1. PRODUCT 4.2. PLACE 4.3. PRICING 4.4. PROMOTION5. ANALYSIS REPORT 5.1. CUSTOMER SURVEY 5.2. MARKETING STRATERGIES 5.3. PORTER S GENERIC STRATERGIES 5.4. CREATING VALUE 5.5. CAPTURING VALUE 5.6. SUSTAINING VALUE6. REFERENCES 3 4. INTRODUCTIONBrief Analysis of IndustrySport is an integral part of modern contemporary society. Sport has always been associatedwith discipline, dedication and perfection and hence sportsmen have always...
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...Business Environmental Audit Critically assess the strategic Direction of the Nike brand William Hanrahan (060953199) ACE1004 Introduction to Management Contents 1.0 Executive Summary 2.0 Introduction 3.0 Nike 3.1 History 3.2 The Market 3.3 Industry Analysis 3.4 Trouble Ahead for Nike? 3.5 Nike Advertising 3.6 Brands of Choice 3.7 Nikes other Brands 3.8 Targeting New Markets 3.9 Financial Performance 4.0 External Market Drivers 4.1 Political Drivers 4.2 Economic Drivers 4.3 Socio-Cultural Drivers 4.4 Technological Drivers 4.5 Environmental Drivers 4.6 Legal Drivers 4.7 Charity Work 5.0 Competitive Environment 5.1 Porter’s Five Forces 5.2 Competitor Analysis 5.3 Nike vs. Fake Goods 5.4 Stakeholders 5.5 Stakeholder Mapping 6.0 The Brand 6.1 Competitive Advantage 6.2 The Swoosh 6.3 Routes to Competitive Advantage 6.4 Ansoff Matrix 7.0 Conclusions 7.1 Swot Analysis 8.0 Recommendations 8.1 Reflection 9.0 Portfolio of Information Sources 9.1 Primary Sources 9.2 Secondary Sources 1.0 Executive Summary Nike was founded in 1972 by Philip Knight and Bill Bowerman. Bowerman is well known in America as the University of Oregon coach. He brought jogging to America, built an unrivalled track and field program at that university, and taught his athletes to seek the competitive advantage everywhere - in their bodies, their gear and their passion. The Marketing men at Nike would like us believe that the brand is more than a product, it is an experience that we are buying into. Wherever...
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...Analysis of ADIDAS AG Overview Adidas AG (adidas or 'the company') with its subsidiaries, designs, develops, produces, and markets athletic and sports lifestyle products worldwide. The company has three major brands through which it sells its products adidas, TaylorMade and Reebok. The company was formerly known as adidas-Salomon AG and changed its name to adidas AG in June 2006. adidas AG was founded in 1920 and is headquartered in Herzogenaurach, Germany. Adidas operates in Europe, the Americas and Asia and it had 53,731 people as its employee as of December 31, 2014. The company recorded revenues of E14 534 million ($19,315.7 million) during the financial year ended December 2014 (FY2014), an increase of 2.3% over FY2013. The operating profit of the company was E883 million ($1,173.5 million) in FY2014, a decrease of 25.2% compared to FY2013. The net profit of the company was E490 million ($651.2 million) in FY2014, a decrease of 37.7% compared to FY2013.(Industry Sources, MarketLine) Product Adidas AG has the footwear, apparel, and sports and fitness equipment such has balls, bags, dumbbells, etc under its adidas and Reebok brand monikers. The TaylorMade-adidas is the Golf segment which offers four brands comprising of TaylorMade, which designs, develops, and distributes golf clubs, balls, and accessories; adidas Golf that offers footwear, apparel, and accessories; Adams Golf, which designs and distributes golf clubs and a range of accessories; and Ashworth that designs...
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...Bruce Lujan April 14, 2014 Comm 4377 Prof. Kennea Anderson CYBER SCANNING- NIKE The athletic apparel market is one of the largest and most profitable markets in the world and the main player in this market is of course Nike. Nike is currently the single biggest company when it comes to all things sports related. It is currently the world leader in athletic apparel and footwear manufacturing and enjoys a market value somewhere in the range of $20-30 billion; the brand alone is valued at $10.7 billion, making it the most valuable brand among sports businesses. The second and closest competitor Adidas has a market value of about $12 billion. Before becoming a global powerhouse in the athletic department Nike began its humble beginnings in January 25, 1964, as Blue Ribbon Sports, created by Bill Bowerman and Phil Knight. The company first began making history by selling track shoes out of Knights car at local track meets. In 1964 in its first year in business 1,300 pairs of shoes were sold grossing only $8,000. By 1971 its relationship with Onitsuka Tiger, the company BRS was distributing for, was nearing an end and BRS prepared to launch its own line of footwear and apparel that would have its signature swoosh logo designed by Carolyn Davidson. The Swoosh was first used by Nike on June 18, 1971, and was registered with the U.S. Patent and Trademark Office on January 22, 1974. Interesting enough, Knight told Davidson that he did not love the logo but knew he would grow...
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...of distribution for the company is wholesale, comprising 68% of its net revenues (Annual Report 4). While this composes the majority of the company’s net revenue, Under Armour is venturing into the direct to consumer channel through their factory house stores. Here is where the consumer can experience the brand that is Under Armour. Under Armour’s plan to further expand the business is to venture out into more international markets. Currently, Under Armour has a strong foothold in North America, but with the innovation of MapMyFitness, the company plans to expand into the global market place. Although Under Amour has experienced growth this past year, the company is still faced with tough competition from leading companies like Nike and Adidas. Unlike it’s competitors, Under Armour possess the ability to gross highest profit...
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...1 Celebrity Endorsement Over 30 years ago Nike signed a huge endorsement contract with Michael Jordan. A deal that is still going on and turned into a lifetime contract. As of now Jordan is gaining more than 60mio US$ every year out of this collaboration (Totalsportek, 2015). This example proves just how much money is spent on celebrity endorsement every year. This also seems to be valid since celebrity endorsement is very valuable as it has the power to make marketing messages stick out more in today’s cluttered marketing environment (Meenaghan, 2001). Within this context athlete endorsement is amongst the most popular forms of celebrity endorsement (Bush, Martin and Bush, 2004). Celebrity endorsement can be divided into three distinct forms: explicit endorsement, where the endorser clearly recommends a product, implicit endorsement where he just mentions that he uses the product, and lastly he can co-present a product, through showing himself with the product (McCracken, 1989). Overall, celebrity endorsement has the ability to significantly influence the view on the endorsed brand, since in a consumer’s mind a high quality endorser is generally seen as a sign for superior product quality, leading to a better evaluation of the brand (Till, 2001). Additionally, well selected celebrity endorsement generally has a positive financial influence for the brand. Several researchers identified a positive impact of endorsement announcements on the stock market price of the respective...
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