Brand Architecture of Nike And Adidas

Introduction
Nike
Nike, Inc. is an American multinational association that is involved in the design,
development, manufacturing and worldwide marketing and sales of apparel, footwear,
accessories, equipment and services.
It employs more than 44,000 people worldwide and in 2014 the brand alone was valued
as $19 billion (€17,5 billion), making it the most valuable brand between sports businesses.
Founded by Bill Bowerman and Phil Knight on January 25 1964, as Blue Ribbon Sports, the
company became officially Nike, Inc. on May 30 1971. The company was named after the Greek
goddess of victory, Nike.
Apart from its own brand, Nike market its products under Nike Pro, Nike+, Nike Golf,
Nike Blazers, Air Jordan, Air Max and other as well as subsidiaries including brands Jordan,
Hurley Int. and Converse.

Adidas
Adidas, in full Adidas AG, German manufacturer of athletic shoes and apparel and sporting
goods. In the early 21st century it was the largest sportswear manufacturer in Europe and the second
largest (after Nike) in the world. Adidas products are traditionally marked with a three-stripe trademark,
which remains an element in the company’s newer “trefoil” and “mountain” logos. Headquarters are in
Herzogenaurach, Germany.

Adolf Dassler Founded the company and headquartered in Herzogenaurach, Germany, that
designs and manufactures shoes, clothing and accessories. Adidas employs over 57,000 people
worldwide. Adidas’s best-selling products right now are, NMD_R1 Shoes, Ultra Boost shoes.

The Adidas group is made up of Reebok, TaylorMade, and Runtastic. The company also owns a
share of the German football club Bayern Munich.

Reason for Choosing these Brands

Nike and Adidas are two main famous brands in the sporting and footwear industry. Nike is the
top 1 sport wear brand and the most famous in the worldwide and Adidas follow up with No,2. These 2
brands have competitive advantages and rival for many centuries.
Learning Goals - If we study about those 2 brands and by comparing them can see the huge different
and differentiation why adidas still stand in seconds place and what value make them the world famous
and the most unbeatable brands.

Brand Pyramid of Nike (Just Do it)

Brand Core / Essences Innovation and Inspiration

Gender - Woman, Men, Teenager , Athletes

Brand Personality Age - largely 15–45 yrs old
lifestyle, inspirational, excitment, cool personality

Consumer Inspiration, High status, Confidence, active sport, Fashionist,

Emotional Benefit passionate

lightweight and durable, prevent foot injuries

Product Benefit
excellent support and perfect flexibility, stylish

High Quality , Good Design , stylish, high technical performance, all kinds of
Product Attribute
athletic shoes

Product Benefit
lightweight and durable – Despite provides exceptional comfort, flexibility, of Nike shoes are very light.

Prevent foot injuries –These shoes have features that protect your feet while you are participating in
any sport. Shoes reduce the likelihood of catastrophic foot injuries.

Excellent support – Nike shoes comes with a herringbone pattern and a solid rubber, which adds
to the comfort and support of users.

A pair of Nike makes perfect flexibility –Get the elusive flexibility of shoes from Nike.
Brand Pyramid of Adidas (Nothing is Impossible)

Innovation and Relentless

Brand Core / Essences

Gender - Woman, Men, Teenager , Athletes

Age - largely 15–45 yrs old
Brand Personality
Inspirational, excitment, cool personality

Emotional Benefit Excitement, Fun and Self-respect, passionate,confident, Honest

Reliability, sustainability, durable, superiority, on speed, energy, passion,

Product Benefit
strength, control ,Confrotable, Great clothing line

High quality, 3-D Printed Soles, One Piece Leather Uppers, Sneakers Created
Product Attribute From Recycled Ocean Plastic, affordable Price

Product Benefit
Good Quality experiences – They are almost reliability, sustainability, durable and highly energetics and
passion and strength and highly control.

Stylish - The distinctive mixture of different colors with silver is quite appealing. hoes
are produced with great color combination, with the stripes being popular
amongst young people.

Great clothing line - Adidas workout clothing enables the user to sweat easily while offering
protection from rain as well as other weather situations.
Comparison of Nike and Adidas
Nike
founded and established in 1964.
U.S based brand of sportswear
Along with sportswear, Nike has been
producing sports equipment for a long
time
More focused on the local market
All production is outsourced to Europe
Basketball and running players are the
main market purchasers of Nike
Recently updated the look of its line
Offers custom product lines
More effective advertising and
marketing and technical performance
Adidas
founded and established in 1948.
A German-based company.
recently started producing sports
equipment in 1991.
More focused on the European market
Production is outsourced to Asian
countries
Adidas has main market by the tennis
and soccer players.
Recently updated its production for
increased efficiency and cost
effectiveness
Recently expanded its product line to
include sports equipment and clothing
Excellent website support for custom
options
Company Goals
Nike
While its mission statement is to “do everything possible to expand human potential”.

We do that by creating groundbreaking sport innovations, by making our products more sustainably, by
building a creative and diverse global team and by making a positive impact in communities where we
live and work.

Nike’s vision is “To bring inspiration and innovation” to every athlete in the world and use the
power of sport to move the world forward. We believe in a fair, sustainable future—one where
everyone thrives on a healthy planet and level playing field.

Adidas
Adidas's core values comprise “performance, passion, integrity, and diversity. One of the main
targets for Adidas Mission Statement is improving sports. The company wants to show people that
having a sporty lifestyle is exceptional, and they want to encourage people to work out and express
themselves.

Adidas's vision statement is “to be the design leaders with a focus on getting the best out of
the athletes with performance guaranteed products in the sports market globally.”

Brand Value and Equity

Company Price EPS EPS P/E 2019 P/E 2020

2019 2020
Nike $93.04 3.16 3.49 29.5 26.6
Adidas $312.75 9.75 11.03 32.08 28.35
Puma $75.95 1.73 2.11 43.90 36.00
Armor A 21.14 0.34 0.49 62.18 43.14
Lulemon Atheletica 200.69 4.74 5.62 42.34 35.71
VF corporation 82.89 3.37 3.86 24.60 21.47
Average 41.02 32.94

Implied relative Value for Nike

P/E (EPS 2019) $129.48

P/E (EPS 2020) $115.04

Interbrand Brand Valuation Ranking Global
Conclusion
In conclusion, Nike has the most fashions and stylish and more focus on the basketball, and
running. Nike following the trends and catches most and technical technology performance is the best.
Nike advertising is most effective and more sponsoring in sport campaign. Nike brand valuation is about
$ 34388 million, and growth is about 6%. Nike has the more sub brandings with separated customer
segments and more focused on Europe countries and sub brandings are as below:

Adidas has the most effective residual procedure and produce with 100% environmental saves.
Adidas only emphasize more on soccer and tennis. Adidas offer the clothing and sport equipment and
adidas offer the best durable and cost affordable but no stylish and fashion, not following the trends and
more effort on sports but less campaign. Adidas brand valuation is about $ 12070 million and growth
rate is about 1 %. Adidas has few sub brands on different sport segments, adidas focused on Asian
Countries, more likely that Adidas represent about Classical and Nike is more modernize. Sub brandings
are as below:

Sources:

Sources – Introduction - https://en.wikipedia.org/wiki/Adidas

https://en.wikipedia.org/wiki/Nike,_Inc.

Brand Pyramid - http://www.allwhitebackground.com/nike-shoes.html

http://www.allwhitebackground.com/adidas-shoes.html
Comparison - http://recomparison.com/comparisons/100305/nike-vs-adidas/
http://brandbattle-adidasvsnike.blogspot.com/2014/11/a-comparison-of-
brand-association.html
Financial Full Detail -
https://tippie.uiowa.edu/sites/tippie.uiowa.edu/files/documents/krause/f19_n
ke.pdf
Interbrand brand Valuation - https://www.interbrand.com/best-global-brands/nike/
Other : http://brandbattle-adidasvsnike.blogspot.com/2014/12/brand-architecture-
and-stretching-of.html
http://brandbattle-adidasvsnike.blogspot.com/2014/11/differentiation-and-
touch-points-for.html
https://www.zacks.com/stock/chart/ADDYY/fundamental/enterprise-value
https://www.zacks.com/stock/chart/NKE/fundamental/enterprise-value