6P Analysis of Nike

and Adidas
Fa s h i o n R e t a i l i n g

BENGALURU
 Prepared by-
 Alice Xavier
 Aman Animesh
Guided by-  Chhavi
Mr. Pratik Ghosh  Ronak Choudhary
 S u m e d h a To t l a
About Nike
'Just Do It'

• Nike was previously known as Blue Ribbon

Sports (RBS) founded in 1964 by Phil Knight and
Bill Bowerman.
• They debuted their training shoes in the 1972
U.S. Track & Field Trials.
• Nike has more than $30 billion in sales and
represents the top athletes in the world.
• Employs more than 44,000 people and its brand
alone is valued at nearly $10 billion.

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About Adidas
"We started in a wash room and conquered
the world."

• Started in a small town in Bavaria, Adi Dassler

registered the “Gebrüder Dassler Schuhfabrik” in
1924.
• August 18, 1949, Adi Dassler started over again,
registered the “Adi Dassler adidas
Sportschuhfabrik.”
• Set to work with 47 employees in the small town
of Herzogenaurach.
• Became the athlete’s trust around 1970’s.
• Came back to life in 1993 from bankruptcy.
• Present time- “creating the new” with it’s hockey
brand CCM and golf brands TaylorMade.
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Segmentation NIKE FR

Geographic
Demographic
City and population density
Age- 11 to 45
Sports followed in diff region
Gender- high male purchasing audience
Focus on urban area with high market
Middle and high segment customers density

SEGMENTATION
Psychographic
Behavioral Personality- sporty
Seeks to build customer loyalty Values- motivating, inspiring, connecting
Quality above quantity with sports
Sell product to make you feel athletic Belief- creating a feeling that transcends
the product

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Targeting NIKE
‘ W h e r e i s y o u r t a r g e t .’

• Target market based on size, reachability,

measurability and behavioral variables.
• Targets professional athletes and sporty individuals
providing them specialized and innovative products.
• Unique opportunity- Nike’s consumers to create their
own custom designed shoes, making the brand more
identifiable and remarkable.
• Psychological tactics- sponsoring great athletes with
tremendous achievements and victories.

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Segmentation ADIDAS FR

Demographic
Geographic
Age- 14 to 65
40% of share in North America
Gender- both male and female purchasing
Focuses on people, infrastructure and
Middle and high segment customers marketing in that area
Have different segments within the brand

SEGMENTATION

Behavioral Psychographic
Seeks to build customer loyalty Premium pricing strategy
Focus on their original product as well as Superior quality product
catch up with the present technology Targets upper middle class consumers

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Targeting ADIDAS
‘ A tt r a c t y o u r c u s t o m e r s . ’

• Like most active and performance gear brands

emphasis is mainly placed on marketing to the
younger generation as individuals who are
younger tend to be more increasingly active
than people of older age.

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Positioning NIKE and ADIDAS FR

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Product
‘ F o c u s o n q u a l i t y.’

NIKE ADIDAS
• Shoes- Running shoes, tennis shoes, cricket • Adidas-
shoes. • Footwear and clothes
• Apparel- Jerseys, shorts, Undergarments, etc. • Reebok-
• Equipment and accessories- Golf clubs, • Workout shoes and clothes
Basketballs, Bags, etc • CCM-
• Outdoor footwear, apparels and accessiories
• Taylor Made-
• Golfing clothes and equipment

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 • The following pricing strategies are applied in Nike
Inc.’s business:
• Value-based pricing strategy: value used to
determine the maximum price that consumers are
willing to pay.
• Premium pricing strategy: involves high prices,
based on a premium branding strategy that
establishes Nike products as higher in quality and

Price NIKE value than competing products. ( e.g. use of

advertisements involving high-profile celebrity.)
‘ C o s t u m e r … y e p , t h a t ’s i t .’ • Nike Inc. successfully uses its pricing strategies to
maximize its profits while emphasizing high value in
promoting its products and brand.
 • The following pricing strategies are applied in
Adidas’ business:
• Price skimming Strategy: For products which are
newly introduced in the market and are uniquely
designed. Apparel’s of Adidas are higher priced due
to brand equity of Adidas.
• Competitive pricing: For run of the mill products,
Adidas uses competitive pricing keeping in mind
Price ADIDAS competitors like Nike, Reebok and Puma.
• No Penetrative pricing: believe that it affects the
‘Original never ends’ brand equity of Adidas.
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Place NIKE
‘ S t a y i n t o u c h .’

• The following places/venues form Nike’s distribution

strategy, arranged according to significance:
• Retail stores: strategically located and easily accessible in
various markets around the world. Retailers include large
firms like Walmart.
• Nike Online Store: customers can purchase Nike’s sports
shoes, apparel, and equipment through the company’s
online store.
• Nike town retail outlets (company-owned): allow access
to business and market information that supports
corporate strategic management with regard to marketing
strategies and tactics for current, new, and emerging
products.
• Nike Inc. controls the distribution and sale of its products,
especially through its online store and Nike town retail
outlets. 9
Place ADIDAS
‘ We b r i n g p e o p l e t o l i f e .’

• Adidas’ distribution strategy, arranged

according to significance:
• Manufacturing > Adidas outlets > End customer
• Manufacturing > Distributor > Multi brand
showrooms
• Manufacturing > Online fashion websites /
Adidas website > End customer

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Promotion NIKE
‘ J u s t d o i t .’

• The following are Nike’s promotional activities, arranged according to

significance:
• Advertising: heavily relies on advertisements by high-profile
celebrity endorsers, such as professional athletes and sports
teams.
• Personal selling: through sales personnel who persuade target
consumers to buy the company’s products.
• Direct marketing: direct communications with colleges, local
sports teams, and other organizations.
• Sales promotions: occasionally applies discounts and special
offers to attract more customers and generate more sales.
• Public relations: sponsors and provides financial support to
other organizations, such as community-based networks.

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Promotion ADIDAS
‘ I m p o s s i b l e i s n o t h i n g .’

• The following are Adidas’ promotional activities, arranged

according to significance:
• Above the line marketing-
• Majority of marketing is concentrated on television and
product placements.
• Sponsors and tie up with teams and sports
personalities.
• Below the line marketing-
• Outdoor campaign and event marketing
• Sales and trade promotion

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Personnel NIKE
‘How may I help you?’

• The Nike retail outlet had 6 employees; one in

the stock room.
• The store was not clean enough but still
presentable.
• Employees had good knowledge about the
products and the discounts offered.
• Attended well to us and other customers.

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Presentation NIKE
‘ W h a t y o u s e e i s w h a t y o u g e t .’

• It was a two storey outlet.

• Men’s section- 2nd floor.
• The window display was very attractive with new collection
displayed.
• There is a big poster on one side of the store which grabs attention.
• Most of the display was done on shelves on walls.
• Separate display for women’s collection which was minimalistic.
• Also, unisex shoes were on display.
• Lot of platforms and mirrors.
• The ambience was good, with good odour and music.
• The colours used were brown and wooden.
• Very good lighting .
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Personnel ADIDAS
‘ W e h e l p y o u c h o o s e b e tt e r . ’

• There were 3 people. One was on the counter.

• One of them had really good knowledge about
all the products.
• They were also updated about the brand really
well.

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Presentation ADIDAS
‘ T h i n k d i ff e r e n t , t h i n k p r e s e n t a ti o n . ’

• As soon as we entered the store, the display had men's clothes

which were a part of the new collection, set up on a platform.
• Shoes for different sports were displayed on the shelves on front
main wall.
• All the apparels were hung in the circular fixtures in the centre,
for men.
• the other corner of the store had women's apparel on the wall
fixtures and wall shelves. They had a lot of foot mirrors.
• The colour scheme throughout the store was white, brown and
grey.
• There was local music playing in the background and incense
stick was used for good odour. All together the ambience was 16
good.
Site Analysis NIKE
‘ S t e p i n t o t h e p o w e r.’

• Open up in areas with rivals and reliable companies.

• Open up populated areas with high market density.
• Minimum space to open a Nike store- 750sq.ft.
• Nike has given franchise to only big box retailers in the last few
years because of the other companies’ knowledge in their local
area.
• Nike wants to be seen near their rivals like e.g. Adidas, Reebok etc
• Nike will not open a store if there a lack of rival stores in the
neighbourhood.
 Site Analysis ADIDAS
‘ w e s e r v e t h e b e s t .’

• Adidas has a smaller requirement of minimum space of 590sq.ft. until

2013when they increased the store space to 790sq.ft. as they wanted
to add new products and broaden their horizon.
• First to enter the market which follows the rivals and they look into the
population and demand front of the market. 
• It has stayed the same since 2013 'reinvent' strategy. Adidas has also
doesn't give out franchise to individuals they only give them to big box
retailers.
THANK YOU