08.06.16, London – With the 2016 UEFA European Championships kicking off this week, the battle between two of sport’s biggest brands, Nike and Adidas is starting to take shape, data Repucom’s new European Football Report shows. 1.0 INTRODUCTION OF NIKE Nike is a major publicly traded sportswear, footwear and equipment supplier based in the US which was founded in 1962 originally know as Blue Ribbon Sports. Introduction. One area that could become a driver of failure is the higher price point of Nike’s products. Nike also uses In 2018, Adidas’s currency-neutral revenue grew by 8% to EUR 21.9 Billion, and net income increased by 20% to … Also, the company commands a strong market share. This company is one of the major suppliers for the world’s sports shoes and one of the major manufacturers of sports equipment. 2) The Brand Gap - by Marty Neumeier. Nike Stays Ahead of their Competitors. It also is noted that it can be reflected in the website sale results - Nike in 2011 had more than four times the sale than Adidas. ; Avg Price / Book (5y) - Five-year quarterly average Price / Book. Nike Inc.’s marketing mix or 4P facilitates the company’s global growth based on high quality products, numerous places for distribution, advertising-focused promotion, and relatively high prices in the global … Adidas and Nike are two brands which are in competition with each other. Relative valuation technique determine the value of Nike Inc. by comparing it to similar entities (like industry or sector) on the basis of several relative ratios that compare its stock price to relevant variables that affect the stock’s value, such as earnings, book value, and sales. Nike is the world leader in the manufacturing of sportswear and gear with more than 47 market shares across the global (Nike.com, 2011). The initial and effective growth strategy was to import from Japan, and sell in the host country, however, after the strong competitors’ intervention such as Puma, Adidas etc. Nike is the largest athletic footwear and apparel company in the world. THE BRAND GAP is the first book to present a unified theory of brand-building. The two sportswear giants are at the centre of the battle as the two gear-up to maximise the advertising and sponsorship potential of the Euros this summer. Nike uses their iconic logo, the Swoosh, as branding as well as having famous athletes, such as Michael Jordan be the spokesperson for the product. The Report covers compelling initiatives that were taken by Nike, to stay ahead of its competitors and adversaries and attain a competitive edge in the industry. For example, Nike launched their website (1999) before their competitors: Foot Locker (2000 launched) and Adidas (2006 launched website). Nike, with the broadest product line of all competitors, also distributed to specialty, skate, tennis, and golf shops. Nike shoes on display at a shoe store. Nike delivers innovative products, experiences and services to inspire athletes. In April 2005, Nike surprised the business community by releasing its global database of nearly 750 factories worldwide. Nike’s main headquarters in Beaverton, Oregon Nike’s marketing strategy appeals to their audience. Avg EV / EBIT (5y) - Five-year quarterly average EV / EBIT. The category running shoes ac-counts for 30 percent of total sales of athletic footwear in Europe. Nike, Inc. is a multinational corporation based in the United States with headquarters in Washington County, Oregon. Michael Dell founded the Dell Computer Technology company in 1984 with its headquarters is in Texas, US. Metrics similar to WACC in the valuation category include:. [ONLINE] Available at: http://www.slideshare.net/PareshAshara/nike-12906460 . Adidas brand was founded in 1948; in contrast, Nike brand founded in 1964. Nike was founded and established in … The industry has grown saturated and the existing players are engaged in tough competition for deeper market penetration and to snatch away market share from each other. The company was found in […] The company operated several retail formats in the United States: 78 Nike Factory Stores (primarily close-out merchandise), 4 Nike stores, 13 Nike town “showcase” stores, 4 employee-only stores, and 61 Cole-Haan stores. Nike competitors include Under Armour, Puma and Adidas. ... En SlideShare. Nike’s sales force is divided into footwear and apparel and the teams are assigned specifically to accounts. some 55 per cent of Nike’s European sales were in the footwear segment, with running being the most dominant category, followed by soccer. Price % of 200 Day Moving Avg - The current stock price expressed as a percentage of the 200 day moving average. This is significantly lower than the ratio of DTC revenues for Nike’s rivals in this space. Free delivery and returns on every order with Nike Membership They have stayed on course with the quality and performance that they provide to customers and in turn have created a kind of brand loyalty that is seen rarely in a high priced industry. Nike started its own production unit that is involved in manufacturing high quality shoes in low rates, to earn the high market share (Nike, 2018). For decades the Nike Swoosh has been a common known logo in many households. Many basketball stars and athletes also work as the sponsors for Nike. No laws required the company to disclose the … Nike’s sales force is the most professional and has the greatest knowledge of the products compared to its competitors. Nike’s marketing objective is to employ a range of marketing communication tactics that can cater to the organization’s target market, who have different nationalities, genders, cultures, and ages. Nike’s fiscal year ends on May 31 but DTC sales increased from 16% to 32% during the same period. The company is involved in the development, manufacture, marketing, and sales of apparel, footwear, accessories, equipment, and services. For the normal products which are in competition with its competitors like Adidas, Puma, Reebok, Nike prefers to user competitive pricing strategy to cut competition. We regularly review supplier factories to assess their ability to meet our high standards. The corresponding intensive strategies grow Nike’s global sports shoes, apparel and equipment business. Whereas most books on … 5. The availability of other options in the athletic wear department gives customers the opportunity to select a product based on price rather than options. The primary market purchase of Nike directs basketball and runners. BibliographyNike: Marketing Strategies. During FY18 Nike Inc. generated 36.36 billion sales/revenue which is 6.6% higher than FY 2017 34.25 billion. By making sure that they stay ahead of competitors and in touch with what consumers want and need, Nike maintains the industry leader position. Nike produces a […] It is among the largest technology companies employing over 140,000 workers across the world. Nike: Marketing Strategies . Nike Inc.’s generic strategy (based on Michael Porter’s model) is appropriate for its diverse product lines, ensuring competitive advantage. Nike is the largest supplier of athletic shoes and apparel in the world (Sage, 2008). Nike uses both Offline and Online channels for the promotion of its products. Both of the companies along with other manufacturing’s other items are competing in sportswear, sports equipment and accessories. The PESTLE analysis of the Sports Apparel and Accessories Industry helps to distinguish the factors that compel and restrain the retail market. Adidas is among the most financially stable companies globally and utilizes its financial superiority to fend-off competition from other global companies such as Nike and Puma. The level of competition in the sports industry is strong. Dan Weiden, speaking admiringly of Nike’s can-do attitude, reportedly said, “You Nike guys, you just do it.” The rest, as they say, is A case study focusing on world’s two biggest names in the sports brands today - Nike and Adidas. 0 De insertados. Nike's response to a supply chain crisis repositioned it as a sustainability leader, and raised the bar for an entire industry. Nike, Inc. is a marketer of sports apparel and athletic shoes. Nike’s Generic Strategy (Porter’s Model) Nike’s premium valuation, as compared to most of its peers, seems justified. Key Differences. Some of the major competitors of Nike are Adidas, Under Armour and Puma. Globally, if Nike is in an emerging market, or a new market, it distributes its product through a third party. Nike was sued consequently under California Unfair Competition and False Advertising Laws. According to Nike company lore, one of the most famous and easily recognized slogans in advertising history was coined at a 1988 meeting of Nike’s ad agency Wieden and Kennedy and a group of Nike employees. In the running segment Nike faces strong competition by Asics and New Balance while Adidas-Reebok and Umbro 2013. By maintaining this level of innovation, Nike will be constantly in the front of the competition. The Nike Inc. marketing value as on 29 March 2018 was $108,094. Though Nike is the largest sports footwear and apparel company but has a competitive market. In 2003, Nike faced the allegations that it is paying below the minimum wage to its labor in Indonesia. 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