A PROJECT NIKE VS

REPORT ON ADIDAS

SUBMITTED TO:MANI SHEKHAR B.B.A. DEPARTMENT BAREILLY COLLEGE

SUBMITTED BY:MOHD ZUVAIR B.B.A. 6TH SEM. 10102097

CERTIFICATE

MR. MANI SHEKHAR B.B.A. DEPARTMENT

This is certified that MOHD ZUVAIR is a regular student of B.B.A. 6th sem. And he has completed the report on the topic NIKE VS ADIDAS under my supervision. It is certified that the whole report is based on his individual efforts and the analysis is found up to mark. I therefore recommend that the report prepared by the candidate be sent for the evaluation.

MR. MANI SHEKHAR

LECTURERB.B.A. DEPARTMENT BAREILLY COLLEGE BAREILLY

ACKNOWLEDGEMENT

I would like to take this opportunity to express my deep gratitude to all who directly-indirectly made report possible. I have got considerable help and support in making this report a reality from many people. I would like to thank, MR. A.K. SAXENA (H.O.D.), MR. MANI SHEKHAR, B.B.A. DEPARTMENT, BAREILLY COLLEGE BAREILLY whose endeavor for perfection under fatigable, zeal innovation, dynamism contributed in a big way in completing this project report. This work is the retest of his thoughts, ideas, concepts and above all his modest effort.

MOHD ZUVAIR B.B.A. 6TH SEM 10102097

CONTENT
Certificate Acknowledgement

Introduction of companies Nike Company profile Adidas Company profile Products of companies Nike Adidas Difference between Nike and Adidas Sponsorships And Market Focus Market Strategies Outsourcing Policies Conclusion Similarities and differences Compare between Nike and Adidas Bibliography Appendix

INTRODUCTION OF COMPANIES
The two leading brands in world of sports goods manufacturers, Nike and Adidas. These two have been fighting for dominance very hard for the past decade or so and in the process they have left a few of their adversaries way behind especially in football,

even more so in football shoes. Puma, Reebok and Umbro are all big brands but they are nowhere to be seen when compared to Nike and Adidas. The comparison between the two is very tight. If Nike leads in one category, it trails in the other. If we judge them on kit designs, we can drag out some hideous kits from the past and on the contrary, they have produced some excellent kits in the past and the present. In customers opinion, Barcelona shome shirt and Manchester Uniteds goalkeeper home shirt were excellent shirts by Nike and Spains home shirt and the Real Madrids Champions League away shirt (so much for that though) are a couple of examples of excellent shirts by Adidas. But thats not where it ends. When it comes to footballs, if Adidas gave us Jabulani for the World Cup, Nike gave us T90 Tracers for the 2010/2011 season. When it comes to the all-important football shoes, we have amazing collection on both sides. Since, this is a World Cup year both Nike and Adidas launched their best shoes (so far) months before the World Cup so they can be tested thoroughly and proved. Now that the World Cup is just around the corner, Nike and Adidas have both revealed their best shoes in the market currently.

INTRODUCTION OF NIKE
INTRODUCTION OF NIKE COMPANY Introduction

Nike is the worlds renowned and leading supplier of athletic shoes and apparels. It controls more than 47% of athletic shoe market with sale of U.S dollar 3.7 Billion. This company was founded in 1962 by Bill Bower man and Phil knight as Blue Ribbon Support and later on it became Nike in 1978 (Partlow, 2003). It is supplying its high quality products in more than 100 countries with its major target areas including United States, Europe, Asia Pacific, and the Americas. Nike has attained this legendary position through innovative and attractive design, quality production and wise marketing strategies. Target Market Nike has huge range in its target market. They have wide range of different products each targeting and appealing a specific group of people. They aim to meet the requirements of people of all ages belonging to varying categories. This strategy has made this company to gain maximum number of customers and profit. Industry Trends The company initially operated as supplier for the Japanese shoe maker. The companys profile grew quickly and soon it gained a renowned position in the market. The swoosh logo of Nike was firstly used in 1971, registered in U.S trademark office in 1974 and first product sold with Nike was a soccer (Marina, 2008). In 1980 the company gained more than 50% share in the global market. Initially the prices of the products were high then the company started focusing on providing high quality products at comparatively low prices to enlarge the circle of customers. By the end of 2009 the company generated revenue of 19.2 billion U.S dollars with operational income of 1.87 billion U.S dollars. Goals Initially the goal was to distribute low-cost, high-quality Japanese athletic shoes to American consumers to break the domination of Germany in the shoe industry. To maintain its quality and make it easily available at every marketable place. To meet the requirement of all type of customers (male, female, old and Young). Promote the sustainable development of product design and novelty. To encourage the development of designs allowing the young people to cash the maximum benefits from exercising. To reduce the product design, Packaging waste and use of organic volatile compounds to make it environment friendly. To attain climate neutrality.

Strategies The mission is to exceed from all leading athletic companies and make it widely available across the globe. Maintain the leading position in the market by supplying quality products and innovative designs and attract maximum number of customer belonging to all ages and lifestyle. Guarantee the availability of all kinds of products at all leading stores and markets. To meet the changing demands of customers. Value the laborers, stake holders and other communities in the implementation of every strategy and decision. Encourage the environment friendly and pollution free development by reducing the emission and waste minimizing activities with the help of various projects sponsored by WWF and other organizations. The company will now focus on providing quality products on low prices to have greater share in the market. Yearly marketing Budget The company has invested 1 billion in the past two years for community stores. They plan to invest at least 315 million U.S dollars by 2011. More over the company also intend to work with 700 other factories that produce Nike products to enlarge the business. Marketing Mix of Nike

Products Nikes foremost focus is athletic footwear and apparels designed for sports and every day usage with the brand name. The production facilities are located close to the raw material to have low labor prices.

 New product offerings under the name of brand include sport balls, timepieces, eyewear, skates, bats, and other equipment designed for sports activities. The most famous product categories of Nike includes: Running, Basketball, Crosstraining, Outdoor activities, Tennis, Golf, Soccer, Baseball, Football, Bicycling, Volley ball, wrestling, cheerleading, Aquatic activities and other Athletic and recreational use (Todd, Sitthichok, Mottus, Mihlan, & Wing, 2008),. Moreover they also utilize the auxiliary bodies to sell the sports related raw materials and products including: Cole Haan Holdings Inc., Nike Team Sports, Inc., Nike IHM, Inc., and Bauer Nike Hockey Inc. Price The company has designed its pricing structure in a way to make it competitive to other shoe sellers. The prices of the products are variable depending on the type and the size for example a comfortable and good pair of shoes would cost from 70 to 150 dollars Placement Nike has its individual stores and also available at major malls and departmental stores selling shoes all over the globe. They have more than 20,000 retailers in United States and also in other 200 countries. The companies also sell its products through individuals, auxiliaries and licensees. The company has its production units, customer services and operational units in all over the World.

Promotion The company has used electronic media (commercials, official website of Nike and newspapers) to promote their brand. Many well known athletes have also worked for the advertisement of brand like Brazilian Soccer Team (especially Ronaldo).

 They sponsor events (e.g. Hoop It Up) for the marketing of brand. The Brands swoosh logo and image played an important role in its advertisement. Competitors Reebok has 16% share in the market with revenue of $1.28 billion Adidas has 6% share in market with revenue of $ 500 million Converse has3% share in market with revenue of $ 280 million New Balance has 3% share in market with revenue of $ 260 million Strengths A very competitive organization It has no factories It is famous for its development and research which is depicted in their wide range of new products with new designs. Its swoosh logo make it recognizable in all over the world. It promises to provide the high quality products at reasonable prices. Its products are globally available in all leading marketing places of World.

Weaknesses Less diversity in the sport products The company does not have its own retailers therefore retailers are price sensitive. All sizes are not present in every design of shoes.

Monthly tactics There is no monthly tactic for the marketing. However there are seasonal variations in some products like spring apparel, the back to school season and Christmas holiday season (Fass, 2000). Moreover the sale of these products also depends on the Olympic as growth has been observed in the sale of products in the Olympic season. References Nike Revenue Periods August November February May 2010 4799.0 4405.6 4733.0 5077.0 2011 5175.0 4842.0 5079.0 5766.0 (Note: Units in Millions of U.S. Dollars) 2012 6081.0 5731.0 5846.0

Earnings Per SharePeriods August November February May

2010 1.04353 0.75915 1.00955 1.05689

2011 1.14409 0.93724 1.07724 1.24086

2012 1.35779 1.00107 1.19837

INTRODUCTION OF ADIDAS
Adidas, headquartered in Germany, is regaining its position as one of the leaders in athletic footwear, after being close to bankruptcy in 1993. Adidas currently has about 17% of the market share in the US (Anonymous, 2000). When Adidas merged with Salomon (a French manufacturer of skis and golf clubs) in 1997 for $1.4 billion, many

outsiders saw it as a bad strategic move. In the past, Adidas has had global dominance, but in this decade Nike has taken over that position. Similar to Nike, Adidas is restructuring by streamlining the product range. Adidas-Salomon designs, develops, and markets a broad range of athletic and active lifestyle footwear, apparel, and hardware products under the Adidas, Salomon, Taylor Made, Mavic, and Bonfire brand names. Adidas-Salomon products are sold in over 160 countries in the world. Adidas-Salomon has athletic shoes from tennis to basketball and now, with the purchase of Salomon, they offer ski, golf, and bike gear. Although, many offline retailers offer these items, they are not yet available at Adidas.com. The web site offers most of their athletic shoe line and many of their athletic apparels. The prices of the items are comparable to those in the retail stores. Adidas.com offers a number of their athletes like Kobe Bryant, Anna Kournikova, and Peyton Manning commercials online and provide the user with insight on each one of them. In addition to using these athletes, Adidas.com uses the promotional strategies to attract customers to their web site by offering a trip to Yankees Stadium and meeting the team. Adidas mission statement applies to both their online and offline companies. Their mission statement reads, Our mission is to become the best sports brand in the world. To that end, we will never equate quantity with quality. Our founder Adi Dassler was passionate about sports. For Adi, the athlete came first. He gave those on the field, the court and the track the unexpected and the little differences that made them more comfortable and improved performance. This is our legacy. This is what the brand stands for. This will never change. (www.adidas.com). When Adidas.com wanted to begin its presence on the web, they knew they would not have much success by starting in Germany. With the majority of Internet users in the US, it seemed like a good place to start. Only from the US are consumers able to purchase their products through the Adidas.com. Similar to others in the e-commerce business, Adidas.com too is depending on their brand equity (reason for not doing much promotion). The CFO of Adidas, Dean Hawkins recently said, our biggest asset isnt on our balance sheet, and thats our brand (Anonymous, 2000). When people think of the top companies in the footwear industry, Adidas wants to be included with Nike and Reebok. To take on a big company like Nike in its home market requires a combination of good and quick execution, a large amount of money to spend on marketing, and a bit of luck (Anonymous, 2000). To help Adidas on their online business, Adidas has brought in US Interactive Inc. US Interactive Inc. provides business strategy, digital marketing and technology skills, which provides assistance to companies wanting to capitalize on opportunities provided by the Internet. Users going to Adidas.com thinking they are just going to browse through and see what products are available for them to buy will be disappointed. It is not a very users friendly site. A unique offering is that consumers can find a sports specific workout from

basketball to wrestling to volleyball. The workouts even vary depending on size, experience, athletic capability, and skill. Adidas.com also offers a chance to review the how, where, why, and what of the company by providing a historical timeline. Many of Adidas products are offered on their web site. These factors all make Adidas.com a sticky site.

Difference between Nike and Adidas

Both Nike and Adidas are well known sportswear firms that have become household names of sorts throughout many parts of the world. The undisputed giants of the sportswear and sports equipment industries, consumers can generally expect quality products from the two brands. Nevertheless, there are instances wherein one may be the better option over the other, and the factors that go into making such a decision do not

always have anything to do with the quality of the products. Let's take a look at some of the factors that may influence your purchase decision in the future.

Sponsorships And Market Focus

Nike has always come in ahead of Adidas in terms of celebrity sponsorships, although to its credit, Adidas has taken considerable steps to narrow the gap. Nike still has the edge over its competition in terms of sales however, and it remains to be seen whether Adidas will catch up any time soon. In terms of market focus, Nike has a more varied line-up, comprised of basketball and running shoes, as well as cross-training products. Among the different brands under the Nike umbrella are Umbro, Converse and Cole Haan. Adidas for its part currently offers products that are geared primarily towards the soccer, tennis and general athletics markets. Among the companies in Adidas' roster are Reebok, Taylor Made and Rockport.

Market Strategies
Nike remains firmly focused on the domestic market, although it has made inroads into the lucrative international soccer market fairly recently. The company is also considered largely responsible for the frenzy of athlete sponsorship that the industry is known for today. All of this ties in with Nike's dominance of the advertising and marketing aspects of the business, a hold that the company will likely retain for the foreseeable future. Adidas on the other hand has traditionally focused on the European market, although it is a formidable name in the rest of the world as well. This is mainly due to the company's affiliation with soccer, which is widely considered to be "the" International sport. The company has recently taken steps to increase its marketing and advertising budget, and has even made inroads into the lucrative sports equipment and sportswear markets.

Outsourcing Policies
Nike isn't really a production company per se, and almost all of its products are outsourced to various countries in Asia, particularly Taiwan and Korea, which in turn outsource production to still other Asian countries, among them China, Indonesia and Vietnam. The company does have a home office in Beaverton, and it is there that Nike products are designed, developed and marketed.

Adidas recently adopted a similar approach, with virtually all the design and development work being handled in Germany, and production being outsourced to Asian countries as well. This move has helped Adidas remain competitive in the industry.

Similarities and Differences

Nike

 More focused on the local market More effective advertising and marketing Recently updated the look of its line Offers custom product lines Excellent website support for custom options All production is outsourced

Adidas
More focused on the European market Specializes in soccer, tennis, and athletics Recently expanded its product line to include sports equipment and clothing Recently updated its production for increased efficiency and cost effectiveness Production is outsourced to Asian countries

COMPARE BETWEEN NIKE AND ADIDAS

Industry / Products
Nike Athletic Shoes Apparel Sports Equipment

 Accessories Adidas Footwear Sportswear Sports Equipment

Business Structure
Nike Nike brands football, running, training, basketball, and originals (two divisions that reflect two distinct market segments sport performance & sport style) Cole Haan dress and casual footwear, apparel, accessories for men and women Convers premium lifestyle mens and womens footwear and apparel Hurley International action sports apparel for surfing, skateboarding, snowboarding and youth lifestyle apparel and footwear NIKE Golf golf equipment, apparel, balls, footwear, bags, and accessories Umbro designs, distributes, and licenses athletic and casual footwear, apparel, and equipment for soccer (includes exclusive endorsements and distribution rights for playing kit, apparel and equipment, including playing and training kits for Englands National Team

Adidas Adidas-2 div sports performance (football, running, training and baseball) Sport Style: Street fashion to High fashion Reebok-global brand-own womens fitness and challenge mens sport category (hockey and rock port) Taylor Made ALL GOLF: Adidas golf (serious golfers equipment & shoes) and Ashworth Upscale golf sportswear pro-shops, golf resorts & specialty stores-NOT Walmart

Market Segments
Nike Running Footwear Clothing Golf Footwear

 Clothing

Soccer Footwear Clothing Adidas Sport Performance Footwear Sport Style Clothing

Competitive Strategy
Nike Premium Price Strategy Sponsorship Agreements No Manufacturing Adidas Premium Price Strategy Sponsorship Agreement

Core Competencies
Nike Outsourcing Adidas Implementation of Joint Operating Model in Europe

Industry Trends / Key Issues

Nike / Adidas Sales are Flat Low Consumer Confidence in the Economy

Global Issues
Nike: 68% of all shoes sold in the US are manufactured in China Adidas and Puma the employees played football for the United Nations International day of Peacean annual day of cease fire and non-violence. 1st event in 60 years.

Adidas: Dow Jones sustainability indexes (DJSI) rated industry leader in sustainability issues and corp. responsibility 7th time in a row, 10th time recognized. Global Partnerships: include: NBA< WNBA. Development league, Germanys football association, Russia Football Union

Sales Strategy
Nike Nike.com United States: 25,000 Retailers International: Distributors, Licensees, and Subsidiaries

Key Competitors
Nike Adidas New Balance Athletic Shoe, Inc PUMA AG Rudolf Dassler Sport Adidas Nike Amer Sports Corp Callaway Golf Company

SWOT- Strengths
Nike Swoosh Logo Innovative Technology Focus LIVESTRONG Campaign Niketown Conservative Finances Adidas 3-Stripe Logo Purchased Reebok to gain presence in North America Leader in Corporate Responsibility & Sustainability Buyer Loyalty

SWOT- Weaknesses
Nike Male Dominate Executive Board Labor Costs

Adidas Male Dominate Executive Board

SWOT- Opportunities
Nike Growth in Mens Footwear Recent Growth in US Market Share Adidas Grow Reebok men Continue Partnership Development

SWOT- Threats
Nike Under Armour Economy Adidas Economy US Market share shrank 2009

Acquisitions
Nike 1995: Bauer 2002: Hurley International 2003: Converse 2004: Starter Brands 2008: Umbro Adidas 2005: Reebok

Questionnaire on ADIDAS VS NIKE

Name: Age: Gender: Address: Phone No.: E-mail: Occupation: Date:

-----------------------------------------------------------------------------------1- Do you prefer wearing sport shoes? (a) Yes (b) No 2- Which brand you prefer? (a) Nike (b) Adidas (c) Reebok (d) Puma (e) Any other 3- Are you satisfied with the quality of preferred brand? (a) Yes (b) No 4- Are you satisfied with the price range of preferred brand? (a) Yes (b) No (c) No comment 5- If the price of your preferred brand increases will you purchase again? (a) Same brand (b) Cheaper brand (c) Any other brand 6- How do you consider the importance of sport shoes? (a) Comfort

(b) Price (c) Durability (d) Use in sport (e) Any other 7- What factors influence you to go for a particular brand? (a) Quality (b) Durability (c) Price (d) Variety (e) Any other 8- Do you normally switch over the brand? (a) Yes (b) No 9- Does the advertising play any role in selection of brands of shoes? (a) Yes (b) No 10- What kind of promotional tool you prefer? (a) Lucky coupon (b) Free gift (c) Discount (d) Buy one get one free. 11- Are you willing to buy the preferred brand at lower price with negligible quality? (a) Yes (b) No

12- Is there any impact of advertisements and celebrities on your purchase of sport shoes?

(a) Yes (b) No 13- Will you purchase another brand of same quality with fewer prices? (a) Yes (b) No 14- Do you think weight is a factor for choosing brand? (a) Yes (b) No 15-How much do you rate the After Sale Service of Nike and Adidas respectively on a scale of 1 to 5: 1-NIKE 2-ADIDAS

-------------------------Thank You---------------------------

BIBLIOGRAPHY

WWW.GOOGLE.COM WWW.NIKE.COM WWW.ADIDAS.COM WWW.WIKIPEDIA.COM WWW.WIKIVS.COM WWW.SCRIBD.COM

CERTIFICATE

ACKNOWLEDGEMENT

INTRODUCTION OF COMPANIES

COMPARE BETWEEN NIKE AND ADIDAS

SIMILARITIES AND DIFFRENCES

DIFFRENCE BETWEEN NIKE AND ADIDAS

QUESTIONNAIRE

BIBLIOGRAPHY