Advertising Strategy of Adidas: A comparative Study EXECUTIVE SUMMARY Adidas Inc. is a marketer of sports apparel and athletic shoes.

The German manufacturer,through its marketing strategy which rests on a favourable brand image, has evolved into a l a r g e m u l t i n a t i o n a l e n t e r p r i s e . I n k e e p i n g w i t h t h e brand image is its association with the distinctive logoand its advertising slogan, "Impossible is Nothing." Inorder to maintain and sustain this image, the companym a k e s h u g e i n v e s t m e n t s i n a d v e r t i s i n g a n d b r a n d p r o m o t i o n . A t t h e c r i t i c a l t i m e o f g l o b a l e c o n o m i c crisis, Adidas will react to the consumers pessimisticattitude and stressful emotion during this period. It may b e c o m e a good chance for Adidas because it can takea d v a n t a g e o f i t s p r e v i o u s a d v e r t i s i n g w a y o f I m p o s s i b l e i s N o t h i n g c a m p a i g n b y s p o n s o r i n g sports stars to express the corporate philosophy of grit,determination, passion and humor, giving people more courage and psychological comfort inf a c e o f e c o n o m i c c r i s i s . B u t b e s i d e s t h a t , w e a l s o f o c u s m o r e a b o u t f a m i l y f u n c t i o n especially in Asian countries which emphasize a lot on f a m i l y , w h i c h c a n p r o v i d e c a r i n g emotional communication. Therefore, from both strong-willed hero worship and water-likefork environment, customers can easily link Adidas image with not only strength, but also warmth. The preferred media we choose are TV, specific magazines, outdoor and internet Advertising Strategy of Adidas: A comparative Study 1.1 INTRODUCTION Adidas was formed by German sports apparel by the founder Adi Dassler during the 1920s.While Dassler was in his mothers wash room he decided to begin an athletic shoe. After hemade the shoe he had help from his brother andt w e l v e o t h e r p e o p l e t o p r o d u c e a r o u n d 5 0 h a n d m a d e s h o e s p e r d a y . T h e s e a t h l e t i c s h o e s were made for running and training.For over 80 years, Adidas has been part of theworld of sports on every level, delivering state -o f - t h e a r t s p o r t s f o o t w e a r , a p p a r e l a n d accessories. Today, Adidas is a global leader notonly in the shoe industry, but also in the sportingg o o d s i n d u s t r y . S h o e s f r o m t h e A d i d a s a r e available in virtually every country of the world. Oddball is proud to carry quality large size Adidas, (www.oddballshoe.com).R e c e n t l y A d i d a s a n d t h e N B A j o i n e d f o r c e s a n d m a d e T h e B r o t h e r h o o d . T h e Brotherhood consists of Tracy McGRady of The Houston Rockets, Dwyane Wade of The Miami Heat, Tim Duncan of The San Antonio Spurs, ChaunceyBillups of the Detroit Pistons and Gilbert Arenas of the Washington Wizards . When it camed o w n t o i t A d i d a s a n d t h e N B A c a m e u p w i t h t h e s l o g a n c a l l e d B a s k e t b a l l i s a Brotherhood. The main focus of The Brotherhood was Adidas to sponsor the NBA. The w a y t h e s e s i x players were selected was by their a thletic ability which is why they are also known as allstars. Then these six players decided to form a series that would help kids to discover their dream by playing with NBA Stars.A s t r o n g a d v e r t i s i n g a n d p u b l i c R e l a t i o n e v e n t s m a k e s a d i d a s a s a w o r l d w i d e r e c o g n i z e d brand and it would be more sustainable in the world market

.2 HISTORY OF ADIDAS The company Adidas was founded in the early 1920s as Gebruder Dassler Schuhfabrik, inHerzogenaurach in Germany. Adolf Dassler designed a pair of sport shoes in 1925 and fewyears later he and his brother Rudolph were selling special shoes for tennis players and begand e s i g n s p e c i f i c s h o e s f o r d i f f e r e n t s p o r t s . The familyc o m p a n y s p l i t i n 1 9 4 8 . A f t e r t h e s p l i t , A d o l f ( A d i ) D assler founded Adidas and his brother Rudolph foundedPuma. The three-stripe logo was designed in 1941 by AdiD a s s l e r a n d h e r e g i s t e r e d i t a s a t r a d e m a r k f o r A d i d a s after the split.T h e s t r e n g t h o f A d i d a s w a s i t s p r o d u c t i n n o v a t i o n . A d i D a s s l e r r e g i s t e r e d m o r e t h a n s e v e n h u n d r e d p a t e n t s . Adidas began selling its shoes in the United States after 1 9 6 8 a n d i n f e w y e a r s t h e c o m p a n y d o m i n a t e d t h e A m e r i c a n m a r k e t . T h e m o s t i m p o r t a n t m a r k e t i n g breakthrough was the active promotion of global sportinge v e n t s , e s p e c i a l l y t h e O l y m p i c s . T h e c o n n e c t i o n o f Adidas to the Olympics has a rich heritage. At the 1972 Olympic game in Munich, every official wore Adidas. Activities: manufacture and distribution of textiles, shoes and appliances for sport and related p r o d u c t s . A d i d a s h a s 1 0 7 s u b s i d i a r i e s i n 2 0 c o u n t r i e s , a n d e x p o r t s t o 1 6 0 c o u n t r i e s . Exploitation of the registered trademark Adidas is made where ever it is an opportunity.A c t i v i t i e s o f t h e c o m p a n y a n d i t s s u b s i d i a r i e s a r e d i r e c t e d f r o m A d i d a s - S a l o m o n A G ' s headquarters in Herzogenaurach, Germany . Products: Adidas - Footwear, apparel, andhardware such as bags and balls. Salomon -Winter sports incl. skis, snowboards, snowblades,s k i b o o t s a n d b i n d i n g s , i n l i n e s k a t e s , h i k i n g , apparel. Mavic -Cycle components, Bonfire -Snowboard apparel. Arc'Teryx Outdoor apparel,c l i m b i n g e q u i p m e n t , Clich Skateboardequipment, footwear and apparel, Taylor Made -Adidas Golf Golf equipment, golf apparel, golf shoes and finally, Maxfli G o l f b a l l s , i r o n s a n d accessories.I n 1 9 9 0 , A d i d a s w a s h o l d i n g o n t o j u s t a t w o t o three percent share of the U.S. market. Between 1988 and 1992 Adidas total sales dropped from nearly $2 billion to $1.7 billion. In the same period, Nikes sales went from $1.2 billiont o m o r e t h a n $ 3 . 4 b i l l i o n . F r o m b e i n g t h e U . S . m a r k e t l e a d e r i n t h e l a t e 1970s, Adidassmarket share dropped to 3 percent in 1992. The European m a r k e t s h a r e s d r o p p e d w h i l e Nikes shares grew.A d i d a s a l s o h a v e h a d p r o b l e m s w i t h t h e u p s t r e a m v a l u e a c t i v i t i e s i n t h e i r v a l u e c h a i n . Traditionally, the company have their own factories and wholly owned subsidiaries. What happened in the

'70s and forward, during the Adidas recession, was that Adidas was unable toship products when it was needed, and they had a long supply chain - it took 18 months to geta new shoe into the market

. SITUATION ANALYSIS AdidasAG (pronounced[AH-dee-'dahs]; often in English,FWB:ADS) i s a Germansportsa p p a r e l manufacturer and part of the Adidas Group, which consists o f Reebok sportswear company,Taylor Made-adidas golf company, andRockport. B e s i d e s sports footwear, thecompany also produces other products such as bags, s h i r t s , a n d o t h e r s p o r t s a n d c l o t h i n g related goods. The company is the largest sportswear manufacturer in Europe and the second biggest sportswear manufacturer in the world, to its US rival Nike. The company's clothingand shoe designs typically feature three parallel bars, and the same motif is incorporated intoAdidas's current officiallogo. The companyrevenuefor 2008 was listed at 10.799 billiona n d t h e 2 0 0 7 figure was listed at 10.299 billion, or about US$15.6 billion. The s i t u a t i o n analysis consists of the market trend analysis and competitor analysis. 2.1 Market Trend Analysis Adidas earn from EU 877 million in worldwide sales to EU 9.2 billion in the t e n y e a r s between 1988 and 1998. The market demand from teenagers who should be Adidas and mostimportant target market increased very fast and Adidas started to expand its targeting marketto younger consumers because of its severe competition with Nike and Reebok. Therefore,s i n c e t h e l a t e 1 9 8 0 s , A d i d a s h a s w o r k e d t o transform itself from a brand of sneakers to a product integral to the sports culture. During this stage, the Adidas brand has become sostrong as to place it in the rarified air of recession -proof consumer branded gian ts, in t h e company of Coca-Cola, Gillette and Proctor & Gamble. Consumers are willing to pay moref o r b r a n d s t h a t t h e y j u d g e t o b e s u p e r i o r i n q u a l i t y , s t y l e a n d r e l i a b i l i t y . A s t r o n g b r a n d allows its owner to expand market share, command higher prices and ge nerate more revenuethan its competitors. With its Impossible is Nothing campaign and strong product, Nike w a s a b l e t o i n c r e a s e i t s s h a r e o f t h e d o m e s t i c s p o r t - s h o e b u s i n e s s f r o m 1 8 p e r c e n t t o 4 3 percent. Chart-1: Adidas Net Sales data in Euro (million)2002-06 (Source-www.adidas.com)

Advertising Strategy of Adidas: A comparative Study 2. SITUATION ANALYSIS AdidasAG (pronounced[AH-dee-'dahs]; often in English,FWB:ADS) i s a Germansportsa p p a r e l manufacturer and part of the Adidas Group, which consists o f Reebok sportswear company,Taylor Made-adidas golf company, andRockport. B e s i d e s sports footwear, thecompany also produces other products such as bags, s h i r t s , a n d o t h e r s p o r t s a n d c l o t h i n g related goods. The company is the largest sportswear manufacturer in Europe and the second biggest sportswear manufacturer in the world, to its US rival Nike. The company's clothingand shoe designs typically feature three parallel bars, and the same motif is incorporated intoAdidas's current officiallogo. The companyrevenuefor 2008 was listed at 10.799 billiona n d t h e 2 0 0 7

figure was listed at 10.299 billion, or about US$ 15.6 billion. The s i t u a t i o n analysis consists of the market trend analysis and competitor analysis. 2.1 Market Trend Analysis Adidas earn from EU 877 million in worldwide sales to EU 9.2 billion in the t e n y e a r s between 1988 and 1998. The market demand from teenagers who should be Adidas and mostimportant target market increased very fast and Adidas started to expand its targeting marketto younger consumers because of its severe competition with Nike and Reebok. Therefore,s i n c e t h e l a t e 1 9 8 0 s , A d i d a s h a s w o r k e d t o transform itself from a brand of sneakers to a product integral to the sports culture. During this stage, the Adidas brand has become sostrong as to place it in the rarified air of recession -proof consumer branded gian ts, in t h e company of Coca-Cola, Gillette and Proctor & Gamble. Consumers are willing to pay moref o r b r a n d s t h a t t h e y j u d g e t o b e s u p e r i o r i n q u a l i t y , s t y l e a n d r e l i a b i l i t y . A s t r o n g b r a n d allows its owner to expand market share, command higher prices and ge nerate more revenuethan its competitors. With its Impossible is Nothing campaign and strong product, Nike w a s a b l e t o i n c r e a s e i t s s h a r e o f t h e d o m e s t i c s p o r t - s h o e b u s i n e s s f r o m 1 8 p e r c e n t t o 4 3 percent. Chart-1: Adidas Net Sales data in Euro (million)2002-06 (Source-www.adidas.com) Copyright : group-1bbapstu Term Paper (8 th Semester) Page5

Advertisi ng Strategy of Adidas: A

comparati ve Study
2.2 Competitor Analysis
Adidas has two lager

competitors Nike and Rebook. Besides that it would have several smallcompetitor s. A SWOT analysis would

be helpful to understand the competitive environment.

SOWT Analysis:
A SWOT analysis comprise of

strength, Weakness, Opportunity and Threats. This four trendsare analyze below.
Figure: Adidas expence to advertising (billion

Euro), (Sourcewww.wekipedia.or g) STRENGTHS

Largest International portfolio of sport ambassadors.

 Sponsors football teams with maximum fan following in India and USA. Highest brand image in India

according to our survey.

WEAKNESSES

Rigid pricing structure. Our survey shows Nike

behind Reebok & Adidas in market share in India. Has not do well in Indian subcontinent market.

OPPORTUNITIES

Has a great opportunity to expand international market.

Increasing demand on the sportswear.

Positive and increasing market trends can increase through the

effective advertising.
THREATS

Adidas larger competitor Nike has a grater market share and having a big budget

inmarketing activity.

The newly born several brands like CAT, GAP has increase their advertising budget inrecent years.

Copyright : gro up1bbapstu Te rm Paper (8

th

Semester) Page6

Amount of competitors increasing day by day.

2.3 Comparati ve Analysis

Trough The Equity Model

Review of the equity model Lets make a short review to remind the

reader what the separate blocks or keywords mean inthe equity model. See figure below. Brand equity can be defined as the brand

assets linked to a brands name and symbol thatadd to a pro duct or service. This asset can be created and analysed troug h the four dime

nsions, brand awareness, perceived quality, brand associations, and brand loyalty. Brand awarenes s

is the base to affect the consumer perception and even taste. People likethe familiar and are prepared to ascribe all sorts

of good attitudes to the items that are familiar to them. According to D . Aaker perceived quality

is a special type of association, partly because it influences brand associations in many contexts and partly because it has beenempirically

shown to affect profitability as measured by ROI (Return On Investment) andstock return. Perceive quality, is basically how

the customer perceive the brands qualitystatus. Brand associations can be anything that connects the customer to the

brand. It caninclude user imaginary, product attribute, use situations, organizational associations,

brandassociation s, and symbols. Brand loyalty is at the hart of any brands value. The concept isto strengthen the size and intensity

of each loyalty segment. Comparative analysis Nike centred their brand equity model on the platforms, the endorsement

focus strategy,creating a dominant media presence, development of Flagship stores, NikeTown and sub- branding. The Adidas

strategies were based on, endorsement focus strategy, advertising,spon sorship programs focusing on major global

events, sports associations, and teams, andsubbrands.To create brand awareness both companies have been using

endorsement str ategies in their brandbuilding programs. What differs is that Adidas focuses on sponsorship of teams

andevents e.g. national teams and big sport events like the Olympic Games and different WorldChampion ship events. This will help them to

create awareness with help from different typesof media. In contrast Nike has their focus on individuals like M. Jordan and T. Woods

andtheir success stories.About the second strategy, advertising . Nikes advertising strategy was to create dominant presen

ce in media. Nike created media presence in several trend setting United States cities.TV ads linking Nike to a city were used, but real

drivers were huge oversized billboards andmurals on bu ildings that blan keted cities with messages featur ing key Nikesponsoredathlet

es, not products . Adidas took u p the competiti on with Nike th rough raising th eir advertising budget to a level that made it possible to

compete with Nike on the same

Advertisi ng Strategy

of Adidas: A comparati ve Study

conditions and the same strength

as Nike did to capture the consumer interest. Adidas did not just spend more money; they made an impact with brilliant

executions. They made TV andother adverti sing campaigns. The company c ommunicate thei r heritage of inn ovation,technolo gy and big

success stories with personalities like Emil Zatopek, Mohammad Ali.Adidas tried to spread meanings like We know then-

we know now and There is nothing between you and success, so exceed your own expectations and limitations and Earn it.The

success was obvious and after hard work and striving toward a top position in theindustry Ad idas was back in business. Nik

es third strate gy was todevel op , flag ship store s, NikeTown shops in bigger citys, firstnational, an

d then abroad. Nikewas the first company to establishflagship stores and it turned out to be a sensation. Adidas choice

wasto experiment with sport events ,with which th ey made great success. Examp les of that is the Adidas Streetball

Challenge a localthreeperson team ba sketballtournam ent, this event started out

as a trail in Berlin in the beginning Chart-03: Adidas market Share comparison of the 1990s as one time occasion.

(Sourcewww.adidas.com) In the mid 1990s it had become a huge sport event with about 500.000 participants all over the bigger

cities in Europe. In the finals in Germany it attracted 3200 players and 40.000spect ators. Adidas made hereby a brand-building

success.The Nike customer associated the Nike brand with words like sports, attitudes and life style.Reasons for

that is one can relate to or identify one self to Nikes marketing campaigns likeJust do it and the companies front

athletes like Michael Jordan and Tiger Woods. For Adidas one image study of consumers found the brand very trendy, modern

and cool. Thesurvey was made in late 1990s.All marketing actions that both companies are implementing will hopefully

result in loyalcustomers. Adidas introduced a subbrand in 1990 to serve the high-end products for allcategories of

shoes and appar el. The Equipment subbrand woul d represent the b est,whatever the product was. The low-end products, for the

normal consumer still have a hightechnology and level of innovation because of their inheritance of the older

innovations andtechnology from the Equipment line. This strategy made the Adidas brand take on a differentmeani ng; it still meant

participation, emotion and performance. This was a success strategyfor Adidas so successful that Nike copied

their idea and introduced their own line, the Alphaline, based on the same idea. Nike advanced from $1 billion dollars in 1986 to $ 9.9

billion in 2002, Adidas advanced from$1.7 billion in 1992 to $4.8 billion in 1998. According to sa les figures for t he bothcompanies,

it seems that both Nike and Adidas companies have succeeded to create a brandloyal customer who perceives

the Nike and Adidas products as top quality . Copyright : gro up1bbapstu Te rm Paper (8
th

Semester) Page8

22.9425.2928.247.65 2.3513.530510152025 30
Nike adidas Reebo k Power Puma Oth ers

3. ADVERTIS ING METHOD & MEDIA

SELECTIO N
The media that was used of The Brother Hood will be television,

magazines and Internet.

3.1 Core Advertising Considerati on

The core advertising

factors of Adidas are as follows. Besides that a huge amount of dataabout Adidas advertising related

activities. As a multinational company Adidas have separateadv ertising strategy in different area of the world.

3.1.1 Media Vehicles:

The media vehicles that were used for television will be ABC basketball games, TNT basketball games, ESPN basketballgames

and ESPN 2 basketball games and ESPNs SportsCenter. The media vehicles that were going to be used

for magazines w ere Sports Illustrated and ESPN Magazine . Themedia vehicles that are use for Internet

were ESPN website(www.es pn.go.com), NBA website (www.nba.com), Adidaswebsite ( www.shopadidas .com), Sports Ill ustrated website

(sportsillustrated. cnn.com).

3.1.2 Advertising unit:

When it came to the advertising unit for television

Adidas only runs: 30 seconds ads sincemost of these ads are played during NBA games. The ads in magazines are full page. When itcame to

the Internet ads are a top banner. For example, on page five you will see the ad whichit a top banner.

3.1.3 Seasonality:

Since The Brotherhood is made up of The NBA the seasonality will be during the fourthquarter. T he reason for this is that

the basketball se ason begins in October which is in thefourth quarter. The time of day in which The Brotherhood would be run on

television isduring the evening while the NBA is holding their regular games. When it comes to theInternet The

Brotherhood is advertise daily and at all times.

3.1.4 Target Audience:

When it came to any product the audience is very important. You

need to know who aregoing to be interested in the product. When it came down to this The Brotherhood is mostlyfor boys

ages 8-20 and for older males. For example, on page four you will see TMAC jerseyfor boys 8-20 and older males.

3.1.5 Advertising

Media Consideration
The reason that this media was selected was because television, magazines and Internet werethe

best way in which Adidas were able to show there customers their products. As you see below the picture on the third page that

says Adidas NBA Shop, in order for Adidas to promote the The Brotherhood they had to come up with a slogan in which they

called itNBA is a Brotherhood. B esides Adidas have several technique in media selection whichhave discussed in the

following sections

3.2 Advertisin g Media

Commercial adv ertising media c

an includewall p aintings, billboa rds, street furnit urecomponents, printed flyers a ndrack cards, ra dio, cinema an d televisionadv erts,web

banners, mobile telephonescreen s, shopping cart s, web popups, skywriting, bus stop bench es,human billboa rds, magazines, newspapers,

towncriers, sides of buses, banners attachedto or sides of airplanes ("logojets"),inflight advertisem entsonseatback t

raytablesor overhead storage bins, taxicabdoors, r oof mounts an d passenger scre ens, musical sta ge shows, subw ay platforms an

d trains, elastic bands ondisposa ble diapers, stickers on apples insupermarkets,s hopping cart handles(graberti sing), the

opening section of streamingaudi oand video, posters, and the backs of event tickets and supermarket receipts. Any place

an"identified" sponsor pays to deliver their message through a medium is advertising.One way to measure advertising effectiveness is

known asAd Tracking. Thisadvertisingr esearchmethodol ogy measures shifts in target market perceptions about the brand

and product or service. These shifts in perception are plotted against the consumers levels of exposure to the companys

advertisements and promotions. The purpose of Ad Tracking isgenerally to provide a measure of the combined effect of the media

weight or spending level,the effectiveness of themedia buy or targeting, and the quality of the advertising

executionsor creative. Adidas use several advertising media to promote their product in the marketplace.

Differentadverti sing media use in the in the market like commercial advertisement, Print mediaadvertise ment, covert ad

vertising, Infom ercials, Celebrit ies advertiseme nt, Onlineadvert isement, Public transport advertisement, email etc.

3.2.1 Covert advertising

Covert advertising is when a product or brand is embedded in entertainment and media.

For example, in a film, the main character can use an itemor other of a definite brand, as in the movie Minority Report

, whereTom Cruise's character John Andertonowns a phone with the Nokia logo clearly written inthe top corner, or his

watch engraved with the Bulgari logo. Another example of advertising in film is in I, Robot

, where main character played byWill Smith mentions his Converse shoes several times, callingthem

"classics," because the film is set far in thefuture. I, Robot and Spaceballs

also showcasefu turistic cars with the Audi and Mercedes-Benz logosclearly displayed on the

front of the vehicles. Adidas also use this advertising technique

Advertisin g Strategy of Adidas: A

comparati ve Study
3.2.2 Television commercials
The TV commercial is

generally considered the most effective mass-market advertisingform at, as is reflected by the high prices TV networks charge

for commercialairti meduring popula r TV events. The majorities of television commercials feature a song or jinglethatliste

ners soon relate to the product. Virtual advertisements may be inserted into regular televisio n programming through

computer graphics. It is typically inserted into otherwise blank backdrops or used to replace local billboards that are not

relevant to the remote broadcas t audience. Adidas has a large amount of TV commercial advertisements in theworldwide

TV network like BBC, CNN etc.

3.2.3 Infomer cials

There are two types of infomercials, described as long form and

short form. Long forminfomercial s have a time length of 30 minutes. Shortform infomercials are 30 seconds to 2

minutes long.Infomercia ls are also kno wn asdirect resp onsetelevision(D RTV) commercials or direct responsemarketi

ng.The main objective in an infomercial is to create animpulse purchase, so tha t the consumer sees the present ation and then immediately

buys the productthrough the advertisedtollfree telephone number or websi te. Infomercials describe, displa y, and oftendem

onstrate produ cts and their fe atures, andcom monly have testi monials from co nsumers andind ustry professionals. Adidas arrange

several infomercials in the sports based program.

3.2.4 Celebrities
This type of advertising focuses upon

using celebrity power, fame, money, populari ty to gain recognition for their products and promote specificstores or products.

Advertisers ofte n advertise their products, for example,when celebrities share their favorite products or wear clothes by

specific brands or designers. C elebrities are of ten involved in advertisingcam paigns such as television or print adverts to advertise

specific or general products. Adidas use David Bekham as their brand a mbassador and many more

celebrities in every region to promote their product.

3.3 Advertising approaches

The positive impact on the market of the adidas Originals communication approach makesadidas Originals continue their

successful new creative marketing tonality. The Fall/Winter 2005 campaign is, as the one from Spring/Summer 2005,

photographed by Karl Lagerfeldand underlines adidas Originals lifestyle relevance.To Cel ebrate Originalit y, and in a playf

ul opposing manner to last season, adidas h asswitched from the black and white SS05 executions, highlighted only by the iconic

blueTrefoil, to bright and energetic colours in FW05 ads; an engaging creative idea supervised byadidas Global Creative Direct

or Michael Mic halsky and Visi onaires Stephe n Gan. Theshooting took place at Karl Lagerfelds studio in Paris.The frame

of the ads shows humour and translates the freshness of the High Energy HighStyle concept. The result is a new advertising

campaign that clearly communicates adidasOriginals street relevancy. Adidas Original s contemporary street wear colle ctions areinspire

d by the brands historical anecdotes.The Fall/Winter 2005 ads will break globally in July 2005 issues of key lifestyle and fashion publicati

ons such as Kult, Pulp and Black book as well as magazines such as Arena HomePlus and Teen Vogue.All adidas Originals marketing

communication efforts will evolve around three pillars in2005: to energize, globalize and contemporize adidas Originals.

CONCL USION
Both Adidas and Nike have used the same theoretical

systems to create their brand building progra ms. The companies are benchmarking each other, using the techniques from

eachothers succ esses, when Nik e launched their subbrand produ ct Alpha line w hich was bench marked on Adidas already launched

subbrand of the Equipment product line for theelite of sports men. We can find many similarities like endorsements strategies and

thecompanies advertising strategies. What differs in the endorsement strategies is that Adidasfocuses in sponsoring teams and global

events, while Nike have their center of attention onstars in specific sport like basketball and Michael Jordan or in golf and Tiger

Woods.About advertising do both companies have about the same scale and scoop of advertising butthey try to communicate

different messages. These messages from Adidas is; the only oneyou compete with is your self whereas Nike communicate a

provocative, aggressive winner attitude which can be related the American sports attitude You dont win silver, you losegold.

As we can understand the two companies are aiming at nearly the same targetedcustome r group but with a slightly differentiation of

attitude. Adidas stand for a competingand winning over your selfattitude, and Nike stands for a winning over everyone

attitude.We in the group think this differentiation is based on the differences in culture between thetwo companies and

between Europe and USA.As an overall reflection one can see that Adidas had to overcome, that the both companieshad

the same target group. Adidas choose a brandbuilding strategy that built on the sametheoretical criterias as Nike. But they created a

differentiation in identity of the brand (seecomparing analysis in the Kapferer Prism Model above) compared to Nike.Adidas had

the same strategy within creating equity value to their brand. They challenged Nike in endorsemen t strategy, and i n advertising, b

ut with a slight difference inco mmunicated message, by doing it trough the same medias. To differentiate them self andmake totally

own awareness activities, events like Adidas Streetball Challenge was created.Events like those communicated

the Adidas brand around the world According to the results and positions the brand-building programs have given both

Adidasand Nike in the sport industry, one can say that branding have been a totally determiningfact

or. On top of that they made it so good that they are used as models in higher education

REFEREN CES
http://www.pres s.adidas.com/en/ Retrieved 7th June 2008http://www.

jdsports.co.uk/w hatsnew.aspx?id =5375Retrieved 7th June 2008 http://www .press.adidas.co m/en/DesktopDe fault.aspx/tabid4/79_read-

8621/Retrieved7t h June 2008http://www. fashiontrendsette r.com/content/fas hion_events/200 8/Adidas-Denimby-Diesel-instore-event-

p1.html Retrieved 7th June 2008 http://www .jdsports.co.uk/w hatsnew.aspx?id =5508Retrieved 7th June 2008 http://www

.champion.ie/ "A didas Orginals Extended House Party Film". http://www.adidas .com . Adidas. 20090225.`http://www.a

didas.com/campa igns/originalsss2 009/content/#/lif estyle/fulllengthfilm.Retrieved on 2009-03-20