Nike Competition Analysis

1. Competition Analysis

World Cup 1994 – United States

Positioning: Nike→ Innovator in football market by delivering high performing football products to consumers. Adidas→ Still the most popular brand in football, however no players wore Adidas cleats in the final match, instead 10 out of 22 of them wore Nike boots. Target Market: Nike→ Products were targeted towards anyone who was interested in running, basketball, tennis and cross training.

World Cup 1998 – Paris

Positioning: Nike→ Innovator in football with production of the Mercurial lightest weight football boot. Target Market:  Nike→ 13-year-old football player and football fans lead to more revolutionary football style and pave way for new products to be introduced. Adidas→ Sticks to conservative product offerings and keeps targeting traditional consumers. Message: Nike→ Communicated and connected with football consumers who had a passion for a more creative, free-flowing, and fun-loving style of football play. Media Strategy: Nike→ Signed the Brazilian national team for sponsorship, and released their “Airport” add right before the start of the World Cup. The increase in South American players in European leagues lead to further media coverage for Nike boots. Adidas→ Remained traditional.

World Cup 2002 – South Korea/Japan

Positioning: Nike→ Became a technological innovator because of their ad which was posted on the then start-up website, YouTube. Target Market: Nike→ Targeted kids and young consumers. Message: Nike→ emphasized their products as revolutionary and innovative. They also used the internet and social networking sites to communicate with the young consumers in their context, in their language. Media Strategy: Nike→ Created their football channel on YouTube and uploaded their first ad, which garnered almost 20 million views in a few weeks. They also released the Nike Football website, which was the first Nike website to stand alone and be available globally and in multiple languages.

World Cup 2006 – Germany

Positioning: Nike highlighted a fun, creative approach to football, exemplified by the Brazilian national team’s style of play and by the products they were marketing. Meanwhile, Adidas was determined to shine in their hometown. Target Market: Nike was targeting young consumers, while Adidas were targeting Germans (from their home turf). Message: Nike→ Create a community of people deeply engaged in the game. Media Strategy: Nike→ Worked with Google to develop an interactive website called Joga.com. The website featured videos of global football stars performing various tricks with the ball. Adidas→ Official sponsor of the 2006 World Cup, exclusive use of Adidas footballs and apparel in the games, as well as Adidas billboards lined the pitches.

Nike’s determination to offer high quality, innovative products while communicating their passion in creating the best products through sponsorships allowed them to overcome their late entrance in the football industry. Nike first made a sound decision by partnering with Brazil’s national team when the team was starting to gain attention for their unique techniques and playing style. Second, video tactics used by Nike on TV and on Nike websites provided

consumers with visual, and spoken content, and helped raise brand awareness. Third, by participating in interactive marketing and allowing consumers to actively engage in their websites, created a stronger bond with their global consumers.

2. Marketing communications efficiency

Marketing-to- sales ratio

Net income as a percentage of sales

Nike had a profit margin of 7.8% which means they made 0.078$ for each dollar spent, which is more than Adidas’ net income of sales of 5.94% (0.0594$ for every dollar spent). The marketing to sales ratio also indicates that Nike spent less in relation to revenue. Therefore, Nike’s marketing communications were more effective than Adidas’.

3. Target Market

13-year-old Target Market

17-year-old Target Market

...