brand analysis of nike, adidas and puma

IJBER Volume 1, Issue 1 (January, 2013)

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INTERNATIONAL JOURNAL

OF BUSINESS AND ECONOMIC RESEARCH

A Journal of

INTERNATIONAL BRAND ANALYSIS OF NIKE, ADIDAS AND

PUMA: A DECADE OF GLORY

Syed Fida Hussain Shah

Assistant Professor

COMSATS Institute of Information Technology, Abbottabad.

E-mail: fida@ciit.net.pk

Tahira Nazir

Assistant Professor

COMSATS Institute of Information Technology, Wah.

E-mail: tahiraasifpk@hotmail.com

Khalid Zaman (corresponding author)

Assistant Professor, Department of Management Sciences,

COMSATS Institute of Information Technology, Abbottabad.

E-mail: khalidzaman@ciit.net.pk

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Abstract Brand image is an important consideration for any of the firm or company operating in

hyper competitive business environment. In this study, brands chosen for comparison are

Nike, Adidas and Puma with respect to the actions and strategies adopted by them in

order to enhance and strengthen their brand image. These are the top 3 sporting brands of

the world. Nike is at 26th

position; Adidas is at 62nd

while Puma has just entered at 97th

position in top 100 brands ranking list published in Year 2009 as best global brands by

inter brand dot com. Nike and Adidas are in the world's top 100 brands list for last so

many years. All of these three brands are growing brands and consistently moving

upward in that list. As per the year 2009 figures published by interbrand.com and other

brand rating agencies/bodies, the brand values of Nike, Adidas and Puma are $13,179

millions, $5,397 millions and $3,154 millions respectively. This study has identified the

key steps and strategies adopted by the decision makers of these brands which resulted in

the strong brand image for them. Moreover, those areas were also identified which

require the improvement particularly by comparing Puma with Nike and Adidas.

Keywords: International brands; Nike; Adidas; Puma; Marketing.

1. Introduction

Brand Image for any brand is built by many different factors which includes brand

awareness, brand associations, brand loyalty, perceived quality and so on. All of these

factors mainly depend upon the activities with respect to integrated marketing

communication i.e. brand message, brand ambassadors, sponsorships, partnerships, brand

relationships, brand communities, brand extensions etc. Nike, Adidas and Puma have

been examined considering these aspects and various strategies adopted by them to

enhance their brand image.

Schmitt (1999) has explained the marketing and branding as a delightful experience of

the consumers and liked it with the customer satisfaction. Keller (1993) has associated it

with the perceptions of the consumers regarding that brand such that it must be reflected

by the associations of the customers with that brand through his memories. Aaker (1996)

explained these associations and linked it to any aspect which can connect that brand with

the memories of the consumers. Brand Image is very much related to the Brand

Awareness and Brand Message must be communicated to create Brand Awareness. Brand

Ambassadors play a vital role in communicating the Brand Messages. Kotler (1991) has

explained the different promotional strategies and highlighted the recognition of Brand

image in different elements of marketing mix. Successful transmission of brand message

is directly proportional to the Brand Awareness. Thus Integrated marketing

Communication is at the heart of the efforts or steps contributing towards the strong

Brand image.

Drumwright (1996) has identified that the social dimensions have become a part of the

promotions and marketing campaigns of the current era. Benezra (1996) has elaborated

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64

the corporate social responsibility and highlighted its demand from the consumer‟s

perspective. Jundong Hou (2008) has explained the importance of Cause-related

marketing (CRM) for the business and how the companies have identified its importance

in terms of strategic social alliances. He further added that now-a-days, Cause-related

marketing is widely used for the promotion of the company‟s business. Adidas was the

Official Sponsor for the Beijing 2008 Olympics held in China. Importance of China as an

Industrial Hub for business entities is obvious and it is very large consumer market for

Sporting goods. Adidas Sponsored $80 million for this mega event and opened 2 stores in

one day on the average. For Nike China is the second largest market after United States.

Nike encountered the Adidas Promotional step by sponsoring 22 out of 28 Chinese

federations participating in the Olympics and Liu Xiang who is one of the top Chinese

athlete (hurdler) represented Nike by wearing the trade mark of swoosh. In Beijing Nike

had invested in Dong Dan Park to establish more serious and strong community links.

Puma has sponsored 16 teams in that Olympics.

2. Discussions

Nike, Adidas and Puma all the three brands have very well organized their marketing

programs through all aspects of Integrated marketing communication and leveraged their

brand image through contracts with athletes, sponsorships/partnerships with teams and

players of international repute in the field of football, athletics, golf, cycling, sailing etc.,

and sponsoring mega international events. “Nike and Adidas gear up for Olympic shoe

wars” This was the news of New York Times published on October 4, 2007. That was a

war for Beijing 2008 Olympics. Nike and Adidas are present in China for decades. Usain

bolt (Contractual Athlete represented Puma) got 3 gold medals and made 3 world records

of being “The fastest man in the world in 100 meters race”. This was a real opportunity

for Puma to communicate its brand message as criticised by Wall Street Journal to go for

massive print ads, but Puma did not communicate it through TV Commercials in big

markets like China, Los Angeles and Jamaica. As stated officially by Adidas that “The

deal with Adidas will see the sportswear company receive marketing and licensing rights

to London 2012, providing kit for the British Olympic Association and British

Paralympic Association in Vancouver 2010 and London 2012. In addition, during the

Games in 2012, Adidas will provide sportswear to Games Officials, London 2012 staff

and volunteers.”

Football is one of the very popular games of the world and Football World Cup 2010 and

Football 2014 FIFA World cup (Ghana) are the attractive and important events in terms

of strengthening the Brand Image for any Sporting Brand. “Adidas has extended its

sponsorship agreement with FIFA for the World Cup soccer tournaments in 2010 and

2014 in a deal worth $351 million. Adidas will get priority access to TV and stadium

advertising at the two events.” (FIFA boss Sepp Blatter, 2005). These are the steps which

strengthened the Brand Image for Adidas and took it from the position of 70(2008) to

62(2009) in the top 100 global brands list, while Nike moved from 29th

(2008) to 26th

(2009) position in that list.

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Adidas has used for brand awareness the platform of In game Advertising through

Massive and Microsoft Advertising Gaming Solutions transforming the real world

advertisements into the virtual based video games which built a strong influence on

younger males between the age of 13 and 34 years (nostalgia). Results were achieved in

terms of 14% increase in brand rating and 90% increase in brand message recall.

Sponsorship for FIFA Women's World Cup Germany 2011 is open for all and Puma in

particular to beat Adidas.

Adidas is tier one partner and sponsor for the coming London 2012 Olympics. Nike and

Puma are not the Official Sponsor for the London 2012 Olympics event, which would be

remembered as one of the important Sporting Event of the World. The officials and staff

of 2012 Olympics wearing Adidas Sportswear during Inaugural and Closing ceremonies

will always leave Adidas in the brains of the Millions of the people watching these

ceremonies. Nike has encountered this by Run London 2012 and Puma as Founding

Partner and Official Sponsor of Women's Professional Soccer. Nike extended

sponsorships for US Olympic and Para Olympic teams.

Adidas has provided the Official Match Ball containing Logo of the Adidas (Brand

Recall) for FIFA World Cup 2010 (South Africa). Nike is sponsoring 10 teams (Brand

Communities) playing in the finals of this world cup, Puma extended its contract of

Sponsoring Kits to the Black Stars who already won 4 times the African Cup of Nations.

In the 2006 FIFA world cup held in Germany, Puma has sponsored 12 out of 32 national

teams. Good move by Puma but Adidas has sponsored the whole event by providing the

match ball and Kits for the FIFA Officials besides the sponsorship of 12 teams (Brand

Communities) playing in the finals for 2010 FIFA world cup.

Labels carrying the slogan 'Cotton Made in Africa' underlying special ecological and

social aspects of this pilot projects have served a great value for PUMA in building its

Brand Relationships through the use of Brand Loyalty from the Local people. PUMA

City is the retail space with innovative collection and PUMA sailing Crew with dancing

floor and bar. PUMA has adopted very strong advertising campaigns and its brand

message is communicated through its brand ambassadors (Well renowned celebrities and

Athletes Osain Bolt in particular wearing PUMA Sportswear). Commercials with Osain

Bolt “Fastest man in the world” who has made the world record as a sprinter in 100

meters race in Beijing Olympics in just 9.69 seconds representing PUMA are very

effective.

PUMA is steadily moving ahead with a clear vision as narrated by its Chairman and

Chief Executive that “Through the acquisition of Cobra Golf, we reinforce PUMA‟s

commitment to our sports performance business by strengthening our growing and

successful Golf category,” (Jochen Zeitz, CEO PUMA, 2010) . “Cobra Golf has a history

of innovative performance products fused with an edge and is therefore a perfect fit for

PUMA, reinforcing our overall mission of becoming the most desirable Sport lifestyle

company.” PUMA 'Peace Ball' created on the philosophy of Peace in South Africa

addressing to the problem of attacking immigrants from other African Countries. PUMA

realised the importance of Cause Related Marketing (CRM). PUMA Peace, PUMA Safe,

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PUMA Creative and PUMA Vision are examples of CRM. Partnership between PUMA

and UNEP (United Nations Environment Program) to support 2010 as the International

year of Biodiversity. PUMA has participated in VOLVO Ocean Race world racing

competition by entering its own boat into sailing category (Brand Extension). PUMA's

Partnership with Ferrari and Michael Schumacher establishes association of the

customers with the PUMA brand. PUMA's 2010 'LOL' scholarship program is

contributing towards the society their association/attachment providing one year of

training. PUMA has focussed on teenagers (nostalgia) and PUMA has become as much

fashion brand (Brand personality) as it is a Sports brand.

3. Recommendations: Recommendations for the Puma in order to strengthen its

brand image further include the revision of strategies to be the main partner/sponsor of

the Mega Events like Olympics and Football World cups etc. besides other integrated

Marketing Communication efforts. Brand Message is required to be communicated all

around and these forums will help the Puma in creating Brand Awareness which

ultimately results in strong brand image for Puma and help Puma in achieving its targets

in all areas e.g. sale, market share and enhanced profits.

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