11 Jan 2010

Sample Essay: Discuss The Positioning Strategies Being Employed By Adidas And Nike

The positioning strategy that has been employed by Nike and Adidas entails expanding all their marketing mix and positions. This is the strategy employed by Nike in targeting all nonusers by promoting their sporting clothes also for casual occasions in the leisure. This strategy also implies recognition of new uses of products (de Mooij, 2009). Nike launched their wear in a new area of sports in golf. Another point of expansion of the overall market strategy by Nike was the increase of its products usage rate by developing new running shoes with a special sole. Guarding of existing market share, heavy advertising, strong customer and distributors’ relations are important in this strategy. Nike advertises with very famous sportsmen like Tiger Woods. Furthermore, Nike’s website provides a selection for various languages.  Expansion of market shares which covers heavy advertising, improved distribution price incentives and new product development .This also involves mergers as is in the case of Adidas which bought the REEBOK Company. The  impact created by the market mix is of the two companies can be a key factor in ensuring that  the companies  products  are diversified (Jobber  & Fahy,2009).

Geographic expansion is another opportunity Adidas and Nike employ, for instance Nike in the European market challenges Adidas as the market leader. Adidas is the market challenger for Nike in the American markets. Adidas challenged Nike with a frontal attack as they show Nikes strengths and weaknesses. In this case Adidas directly compared its product with the Nike products and stated that people who are wearing Adidas are increasingly powerful. They offended Nike’s products in their quality and showed that normal people are more powerful than athletes wearing Nike.

Nikes attack shows that this strategy is particularly focused on the business is weak in a given geographic area or in a given market. Nike used the opportunity to seize the golf market and has build up the “Nike golf“ which is now sold in the Europe. In the European market it has Roger Federer and Tiger Woods under its contract for advertising. Clearly these to icons are giants whom Nike used to encircle Adidas.

References

Jobber D, & Fahy,J (2009). Foundations of Marketing; NY, New York; Mc Graw-Hill Higher Education.

Marieke de Mooij.( 2009). Global Marketing and Advertising: Understanding Cultural Paradoxes SAGE publishers

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