COMPARITIVE STUDY ON NIKE & ADIDAS BY SHRUTI GURJAR MONTHLY ASSGN II ACL-II-2012 SALES MODULE

As per the survey we did at the outlets, they were not targeting any group as such because they wanted just their sales to grow. Though the products kept at the showroom was meant for Males, females, Youth and kids and Athletes/ Sportspersons. Demographic: Age group and income group of middle class and above. Health Conscience and Fitness freaks, Casual wear. They also target brand loyal customers with various kinds of offers and benefits half yearly. Right now because of the IPL (Cricket), they are targeting the Cricket Fans. Also they look at the age group of years who would like to do recreational sports during their free time, so they have shoes meant for health fitness, with light weight shoes and jogging apparel. QUESTION # 1

Males15-35 age income gender DEMOGRAPHY CONCENTRATED

The popularity and high demand for Nike and Adidas products are among people. Since Nike and Adidas are niche products, the acceptance levels and growth level is well maintained with annual sales and new product launches. These 2 brands have the highest quality of products and manufactures using latest technology and design according to latest trends, which attract most of the customers. So there is durability, comfort and the looks to attract all customers.

Most of the customers were/are happy with the products. They wanted reduction in prices by a small margin. Most of them were happy with the latest designs and information provided for each product by the sales rep. All ambassadors were good role model for the kids of New India. More advertising in Print and Visual Media. Explore market for females.

COMPARITIVE STUDY QUESTION # 2

ORIGIN  NI-KEY is the winged goddess of victory.  Founders: Bill Bowerman & Phil Knight.  Originally started as Blue Ribbon Sports.  In 1972 changed the name as NIKE.  “It is one of the most recognized symbols in the world – The Swoosh. Simple. Fluid. Fast.”  Trademark : SWOOSH LOGO & "Just do it“  Acquisitions : Cole Haan, Hurley International, Converse Inc. and Umbro

OVERVIEW  World’s No. 1 manufacturer and marketer of athletic footwear and apparel.  Nike’s principal business activity is the design, development and worldwide marketing of high quality footwear, apparel, equipment, and accessory product.  Distributed in over 160 countries around the world: (Asia, Australia, Canada, Europe, Latin America, and the United States)  Nike is the largest seller of athletic footwear and athletic apparel in the world.  Employees: 26,000 worldwide. 650,000 in Nike contracted factories around the globe.  Recognized by Fortune magazine  Forecasts revenues of $23 billion by 2011.

PRODUCTS

Has been present in India for over a decade. Till recently, India didn't really figure-in the company's marketing and promotional activities. India is a cricket crazy nation. Nike now understood the importance of cricket. In December 2005, it tied up with coaching schools like the BCCI's National Cricket Academy. Nike now became the official kit sponsorer of Indian cricket team.

SALES FIGURE IN FY Revenue – $19.2 billion. 34% from USA, 29% from Europe,Middle-East & Africa and 37 % from rest of the globe. 54% Revenue from Footwear 27% Revenue from Apparel 6% Revenue from Equipments 13% Revenue from other partner brands Nike Golf, Cole Haan, Hurley International, Converse Inc. and Umbro

ORIGIN 1949-The foundation: ' Adi ' from Adolf and ' Das ' from Dassler. CEO: Herbert Hainer Acquisitions:

OVERVIEW Adidas Inc. is the German manufacturer, a marketer of sports apparel and athletic shoes. The company is the largest sportswear manufacturer in Europe and the second biggest sportswear manufacturer in the world. Besides sports footwear, the company also produces other products such as bags, shirts, watches, eyewear and other sports and clothing-related goods.

PRODUCTS Foot wear Clothing Accessories Body care Eyewear Watches

Revenue – €10.38 billion€ 45% is from footwear, 45% from apparel, and 10% from others SALES FIGURES

Market Share

SWOT ANALYSIS

Strengths Global Reach Globally competitive brand image Globally competitive manufacturing costs Cutting-edge technology / R&D Dominant market share at high-end price points Customer loyalty and trust Internet sales Has no factories. Use contract factories for work to be done. Has contract with 700 shops in 45 Countries Strong sense of marketing/advertising campaigns.

Weakness Dependency on age demographic Negative image from manufacturing practices. Poor employment practices. Increasing reliance on EU and Asia for growth The direct sale to consumers is creating conflicts with its own resellers. Not many stores around Price Sensitive

Opportunities Growing e-commerce positive effect Still more geographic area to be covered around the globe. Corporate marketing through sponsorship agreements. Increasing demand on the sportswear. The percentage of young generation is high, so easy to tap the Young generation.

Threats Growing Competition Fashion Shifts in Footwear market Market saturation because of competition and other brands. Cheaper products being manufactured.

CHALLENGES AHEAD The average growth in the industry has been estimated at 12% and is estimated to touch Rs crore by Presently the Indian organised foot wear market is dominated by men’s footwear segment that contributes for nearly 60% of the market New Players/Entrants increase the competition. Market flooding with cheaper brands.

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