Nike vs. Adidas fighting over Cricket market share?

To be honest I know pretty much nothing about the sport of cricket. However, both of these top brands are trying to capture sponsorships in this sport. Cricket is extremely popular in India, England, South Africa, and Australia. Currently, Adidas holds sponsorships with 3 of those countries including England, South Africa, and Australia. While this may make seem that they are clearly top dog, Nike has the crown jewel of India. They recently re-upped their deal with the national team by promising to provide match day shirts, training wear, headgear, sweatbands and bags. Nike is looking to expand by investing significant dollars in the sport, specifically in India. Adidas and Reebok were right on the cusp of making a deal, but Nike's past relationship with the Cricket committee sealed the deal. It will be interesting to see how these brands progress will fare in this relatively unknown sport. While Adidas still controls a majority of the European market, Nike is positioning themselves to take over the top spot through strategic player and sport sponsorships.

-Jimmy Madden

http://www.sportspromedia.com/news/nike_renew_commitment_to_indian_cricket/

Nike taking over

Attached is a youtube video of an advertisement Nike ran 6 years ago with regard to Brazil and soccer.

https://www.youtube.com/watch?v=gYNYRCeyCsE

I read an article about how the world cup sort of speeds up a company's process of going into an emerging market.  Nike has successfully planned this whole ordeal in order for their brand to boom internationally with the World Cup as well as the Olympics being held in Brazil.  They liked the economy of Brazil even before figuring out this information and knew it would be a great place for them to establish some brand loyalty with customers.  The big events have just been an enormous added bonus for the company.  Recently, Brazil has been one of the few countries to rise out of economic recessions due to the value of their commodities such as iron ore and oil.  Brazil now has the feeling of being the "country of the future" and these upcoming sporting facilities will just speed up that process for them.  Because of Nike's large size they were able to take this Brazilian opportunity by spending so much money trying to promote their brand in Brazil and it seems that they really lucked out with the country getting two of the biggest sporting events in the world.  Will Nike take over the entire South America soccer market might be a better question than can they become equal to Adidas...

-Harris Fanaroff

Source:

https://www.youtube.com/watch?v=gYNYRCeyCsE

Nike vs. Adidas 2014 World Cup

The brand war is about to heat up between Nike and Adidas as the World Cup creeps closer. It will be interesting to see how these brands present themselves on the world's biggest soccer stage. Adidas is the title sponsor of the event and has been given the right to "name" the ball since the 1970's. This year they have empowered the Brazilian public with the chance to vote for the ball. In a sweeping decision the name "Brazuca" has been chosen for the 2014 World Cup.

However, Adidas should still be worried about Nike's presence this year. Adidas, which is sponsoring 12 of the national teams, compared to Nike's 9 (USA and more importantly Brazil included) can only boast 14.4% of the "official and competitor buzz" as Nielsen states it, compared to Nike's whopping 30.2%. In another report, Brazilians said they identified Nike as the premier brand of the event. Outshining Adidas yet again, and surprisingly surpassing Coke as well. It will be interesting to see how the brand war plays out on the world's biggest soccer event. I feel that Nike is making good headway in the soccer market, and this event should be a testament to that. Anyone think Adidas can out do Nike this year?

-Jimmy Madden

http://www.fastcompany.com/1658906/adidas-may-be-official-world-cup-sponsor-nike-wins-battle-buzz

http://www.sportsbusinessdaily.com/Global/Issues/2012/06/22/Marketing-and-Sponsorship/Nike.aspx

Match Results, Allegations Impact Nike and Adidas

This past Monday, a European police intelligence agency known as Europol announced the results of an operation known as Operation Veto, revealing that 680 soccer matches in Europe have been deemed suspicious of match fixing. These allegations consist of matches both at the club and international level, potentially involving some of the world’s best teams and players. Soccer has always had the reputation of being a "beautiful game," but these results highlight several old suspicions of match fixing as well as brand new, unheard of accusations. It will be interesting to see how this affects Nike and Adidas within the European soccer market, one of their largest sources of revenue. Nike is considered to be the world’s top sports brand, but Adidas has always controlled the European soccer market due to its history and sponsorship of the top international/club teams and players (including Lionel Messi) in Europe. Recent accusations have caused several sports stars/teams to lose sponsorships. Although high for both teams, the stakes seem to be higher for Adidas, as their European soccer market share is one of their few global advantages over Nike, and one they must continue to have in order to keep pace. If any of these companies’ partners are deemed guilty of match fixing, impacts on either of these brands could be devastating.

Not only do drastic events such as this one affect Nike and Adidas market share in Europe, but brand success can also heavily rely on the success of particular sponsored teams. In 2008, Nike acquired Umbro sports apparel for  about $483.7 in an attempt to surpass Adidas in the profitable European soccer market. At the time, Umbro had a deal in place with the English national team, which potentially could have produced exquisite results for Nike. England failed to qualify for the 2008 European Cup, however, hindering Nike's chances of taking over. When England failed to qualify, Umbro's sales plummeted, and were not able to increase to the point of a full recovery. At the end of 2012, Nike sold Umbro to Iconix Brand Group, Inc. for more than $200 million less than but they bought it for in 2008. Had England not only qualified for but advanced deep into the final rounds of the European Cup, Umbro sales would not have declined and Nike may have been closer to overtaking Adidas as the top soccer brand in Europe.

-John McCann

Nike VS Adidas Footwear Industry

                                                                   Nike vs Adidas Footwear

Throughout history Nike has dominated the footwear industry both in the United States and in Europe. In the United States Nike is the clear leader, enjoying a 41% market share of the footwear industry. The other major players in the industry include Reebok with a 16% market share, Adidas with a 6% market share and New Balance with a 3% market share. Nike has been the leader in the United States since the company was formed and developed the first running shoe. They have signed many famous athletes for sneaker contracts including Lebron James, and other famous iconic athletes. These signings make almost any kid wants Nike sneakers. Adidas is slowing catching up with Nike, although they only have 6% market share they have recently signed major athletes like Derrick Rose and Robert Griffin to big sneaker contracts attracting consumers toward their sneakers. Domestically, Nike is still the footwear industry leader, but does not have as strong of a hold only having 31% of the market. Adidas is Nike’s closet competitor having 16% of the market share. Reebok, Puma, and New Balance all have 6% of the global market share. Although the numbers say that Nike has an edge of the competition, over my first month here in Europe, I have not noticed the same Nike Dominance that I noticed in the United States. In America, it seems like everyone from the time they were born owned a pair of Nike sneakers. From what I have noticed thus far in Europe only teenagers wear Nike, while New Balance, Adidas, Reebok, and Puma are much more popular. Nike currently has a stronghold on both the American and European footwear market, but competitors like Adidas are slowing catching up to the industry leader.     

Scott Kettig

Nike vs. Adidas on the International Golf Stage

When it comes to the stage of professional golf many top companies come to mind. The usual names are TaylorMade, Callaway, Cleveland, Titleist, and Nike. What most golf advocates do not know though is that TaylorMade is the golf subsidiary of the global sports giant Adidas. After the acquisition in 1997, Adidas wanted to refocus the brand and make it one of the best in golf. Well, they certainly have achieved this image. More PGA Tour professionals play TaylorMade drivers than Callaway, Cleveland, PING, Cobra, and Nike COMBINED. The top spot in the golf market in terms of market share is TaylorMade and Nike is struggling to keep up. As recently as this past year, TaylorMade bolstered 32% sales growth. On the downside, Nike golf sales dropped 4%. Nike is facing pressure in all aspects of the golf industry except one; apparel. More people are buying Nike golf apparel than ever before, and love to sport the signature swoosh while on the course. TaylorMade continues to have a stronghold on the club segment as their drivers and woods are the most popular on professional world tours. Nike is continuing to develop their golf image especially in Europe. The recent sponsorship with 23 year-old Northern Ireland prodigy Rory McIlroy shows how Nike is trying to make a move to the top of the golf market. By signing the World number one to an insane A-Rod type contract (10 years, $250 million) Nike is hoping to increase its exposure in the golf market. With the slight resurgence in the play of Tiger Woods, Nike has optimism that it can continue to chip away at TaylorMade's stronghold of the market. Challenges are still ahead though. The TaylorMade subsidiary of Adidas has more PGA Tour and European Tour than Nike by a mile. Names like Sergio Garcia, Paul Casey, Darren Clarke, Martin Kaymer, and many others are under the sponsorship of TaylorMade. Nike is the world's largest sports apparel company, but when it comes to professional golf they are lagging behind the big guns like TaylorMade and Callaway. Nike is focusing on signing younger golfers (like McIlroy) with the hope that they regain solid footing in the golf market. When it comes to the sport of golf, many European and other International players are still enamored by the TaylorMade (Adidas) brand. However, Nike has been more appealing to young American players like Nick Watney, and Anthony Kim. By the looks of right now I don't believe there is a way for Nike to overtake TaylorMade in terms of the club segment, but their apparel and footwear are very desirable to amateurs like myself and even professionals alike. It will be interesting to see how the sponsorship of Rory McIlroy works in terms of spreading the Nike brand, hopefully he continues to improve and bring more recognition to the Nike brand here in Europe and the rest of the world. I know most people don't care too much about golf, but in terms of a global sport it is quite popular...anyone think Nike can become top dog?

-Jimmy Madden

This recent ad from Nike shows how they are trying to become one of the best brands in golf.
https://www.youtube.com/watch?v=2NCDYjHtEcU



http://www.bizjournals.com/portland/print-edition/2013/01/25/nike-golf-seeks-larger-market-share.html

http://www.oregonlive.com/playbooks-profits/index.ssf/2013/01/nike_golf_competes_in_unusual.html

http://online.wsj.com/article/SB10001424127887324900204578286173274533026.html


http://www.golfdigest.com/golf-equipment/2013-03/photos-hot-list-category-leaders#slide=1

Impact of Nike in Brazil World Cup

Adidas has forever been known in Europe as the dominant sporting brand, but it seems that recently Nike is attempting to gain some of their share, or, maybe even take over.  Since the start of the German based company in 1949, Adidas and soccer have always gone together.  Nike, on the other hand, whose roots date back to the 1960’s wasn’t involved in the soccer market until recently.  They have become a relatively new member to the soccer market when it finally entered in 1994.  The biggest thing going on today is how Nike is beginning to gain more and more support in the soccer world.  With the world cup slated to be occurring in 2014 in Brazil it will be interesting to see how much of the market Nike takes over.  Nike is currently sponsoring the home team and one of the main favorites of the world cup in Brazil.  The Brazil deal in 1996 gave Nike a huge share in the soccer market and the world cup of 2014 will only promote this more.  As the Brazilian soccer team is focused on so crucially during the World Cup, all the fans will constantly see the Nike sign on the player’s jerseys.  In perhaps the biggest international single sporting contest in the world, Brazil’s Nike jerseys will be at the forefront, which is something that is daunting to the Adidas Company once in complete control of the soccer market.  Nike is looking at this opportunity to expand its company internationally as soccer is the most popular sport around the world with 2 billion fans worldwide.  It is believed by some analysts that Nike will take over the soccer market internationally in the next 10 years.  Others believe that Adidas is so deeply rooted in the roots of soccer that no company will ever be able to take over the market from them.  Nike is making a very strong case to take over in the soccer industry so it is up to Adidas to react accordingly to keep their dominance.

-Harris Fanaroff