Promotional and Advertising Strategies

Promotionaland Advertising Strategies

Advertisingand promoting products is integral in attracting customers andpersuading them to purchase from a business. The process involvesboth one-way communication and two-way interaction between a businessand its customers. In order to effectively communicate a product orservice effectively to the target consumers, businesses use variousadvertising and marketing strategies for different marketingpurposes. This in-depth analysis will compare and contrastpromotional strategies of leading sports apparel companies, Nike andAdidas. These companies have proven that besides offering qualityproducts, good advertising and promotional strategies are imperativefor survival and simultaneous growth in a market.


Markedly,the two promotional strategies discussed include brand building andbasic advertising. Nike, Inc. is an American multinationalcorporation for sports apparel, footwear and accessories. Nikecenters its promotion strategy on creating a brand image. Thisstrategy is made up of a unique logo and the advertising slogan:“Just do it”. Additionally, to endorse its brand image, Nike hasbeen sponsoring players and sports clubs such as the sponsorship ofMichael Jordan, Ronaldinho and Tiger Woods (Chung, 2013). Adidas, aGerman multinational corporation, has on the other hand set a highbar led by its global brand Chief Nicole Vollebregt e.g. in the 2014world cup. It also has slogans such as “Adidas Impossible isNothing. Adidas Were All In!” and has sponsored several athletesand models. For instance, Katy Perry is the face of Adidas for women.Adidas has also been involved in many brand building programs andinnovative campaigns such as the “All Adidas” campaign.

Anotherpromotional strategy used is basic advertising which includes, newspapers, social media and magazines. Nike aired its firstadvert during the New York Marathon in 1982 and has since won twoEmmys for best commercials. Examples of T.V. commercials includeNike’s “Master Accuracy. Hit the Target” and “Is talent allit takes?” Conversely, Adidas advertises its products throughsporting events which helps it gain an extensive media coverage.Adidas also has a very efficient website and uses the internetexpansively to market its products which has brought great onlinesuccess. Examples of T.V. commercials by Adidas include “The Spark”and “Chelsea F.C- Every Team Needs The 12thMan”.


Accordingto Barth (2012), Adidas enjoys a 33% market share in the sports wearindustry only behind Nike. Markedly, the company could use marketinformation to differentiate itself and enlarge its market share. Thecompany could focus more on roping more celebrities to endorse theirproducts since celebrities are known as undoubted crowd pullers. Thecompany could as well achieve differentiate itself through eventendorsements. Adidas needs to segment its markets strategically sinceeach of its market is unique and requires different approach. Thiswill help endorse events and people who are celebrities andwell-known in smaller segments of the population based on thecharacteristics of the individuals, different locations and groups.The company may apply both demographic and psychographic segmentationto achieve this.

Adidas should focus on the segmented customers through agreementsbetween the company and sports teams, product support as well asultimate endorsements to team members. Consequently, the company islikely to reach extensive number of consumers who are very likely topurchase its products. To sum up, this recommendation involves Adidasusing more effective and expansive targeting techniques such asproduct sponsorship of well-known teams and celebrity athletes whileeffectively utilizing modern technology to publicize such measures.

Secondly,Adidas should offer its customers incentive to buy, that is, itshould entice its customers to make efforts to buy more. The companycould offer coupons and rebates more often than it presently does.This could encourage the purchase of products and re-sale of thepopular products. Additionally, the company could entice customersthrough contests and sweepstakes since people generally like winningprizes. Outstandingly, such activities make the products and brandmore popular since they give customers chances to win a prize orproduct by utilizing certain skills and abilities to win prizes.

Therationale behind the aforementioned recommendations is the need forAdidas to increase its market share and fend off competition from theleading brand, Nike. Presently, the sport wear business is a dynamicand widespread global business with huge economies of scale.Therefore, the company is obliged to meticulously strategize on waysto maintain and expand its customer base by promoting the much neededbrand recognition and loyalty. In addition to increases popularity,customers are able to associate the brand with success. Sponsoringmajor players and tournaments helps depict the brand as a successfulbrand which makes customers more comfortable and proud to beassociated with.

Usesof Consumer-oriented Promotions

Noticeably,consumer-oriented promotions help lessen the divide between thecompany and its customers. This in turn brings forth a more appealingand familiar image of the brand or company. For instance, directmarketing through social media makes potential customers view thecompany from a very different perspective whereby rather than seeingthe company as on that is “trying to sell”, customers see thecompany as one that is in touch with people. Making the brand wellknown for certain things certain brings increased sales in theshort-term and long-term. In addition, understanding customers byinteracting with them helps device products that they need andappreciate and while going to war it is necessary to understand thebattleground. One such benefit is having a less rigid and moreflexible pricing strategy. Paul Knight, founder and CEO of Nike,often said that business is war without bullets.

Oneway of consumer oriented promotion is through corporate socialresponsibility. Participation in eco-friendly and social drives isused to depict as a company that is concerned about the social andindividual wellbeing of people (Moriartyet al, 2009).This in turn makes people appreciate the brand and respect itsinvolvement in the market. Additionally, being involved in causes andcharity gives consumers the sense of being a part of something largerand that by simply purchasing a product they create a win/winsituation which involves helping the society. This implies that thecompany gets a socially conscious image through the sense of helpinga cause.

Presumably,the use of consumer-oriented promotions to help lessen the dividebetween a company and its customers and to depict it as concernedabout the people cannot be underestimated. How potential customersperceive the brand and how much they feel attached to it is one ofthe foundations of high sales. This makes the aforementioned usesvery important for any company both in the short-term and long-termin its aim to attain its goals.

PricingDecisions by Nike

Nike,the world leading company in sport wear, can have its successattributed to bold pricing decisions it has taken. Since pricing ishalf of the consumer value equation, Nike considers product costtrends in setting its prices. Based on the first pricing objective,profit, Nike focuses on delivering products of outmost consumer valueregardless of the price. At Nike, this means that the company focuseson the highest quality, most innovative and most beautifully craftedproduct at the right price. This means that the company aims tomaximize price so as to attain long-term stability. In keeping with(Li&amp Li, 2013),price indirectly affects profit by affecting the number of sales andthus Nike uses “Psychological pricing” to maintain high sales athigh prices. For instance, the Nike Air Max and Nike Airforce 1 arehighly priced and consumers perceive them to be of very high qualitybased on their prices thus high sales.

Anchoredin the status quo price objective, Nike makes its pricing decisionsbased on the type of customer the company is targeting. This is alsoknown as “segmented pricing” where the company maintains flexiblepricing strategy and adjusts its prices based on several reasons. Tobe exact, Nike makes its pricing decisions based on the differencesin their target consumers, the location of the products and the typeof products the company is trying to get into the market. Forinstance, Nike Air Max for children could have a lower price by athird to that of adults. Nike also intends to maintain its marketshare or status quo by matching competitors’ prices in variousstores rather than beating it.

Inoverall, Nike makes use of “Price skimming” technique for newproducts where it sets high prices for them due to the different andinnovative designs and then ensures the pries fall gradually when theproduct has been in the market for quite some time and a new productis nearing release. Outstandingly, the “higher Pricing” decisionsseem to be very effective for the company with potential buyersassociating its products with higher quality and prestige.

Actionsthat may benefit other sports wear companies

Companiesin this product group should increase their focus on advertising andpublic relations. Strikingly, Nike and Adidas have achieved a largemarket share due to their unrelenting use of any form of mass mediato familiarize potential customer with their brand and products. Itis vital for the other companies to develop strong relationships withthe media public so as to help obtain favorable positive publicityand deal with negative attention. The companies should “makethemselves visible” to the consumers. This makes potential buyersview their products and brands as distinct, innovative andcompetitively priced rather than being overshadowed by the marketgiants.

Companiesmay also gain competitive advantage by being more consumer-oriented.Business is all about customers and therefore such companies shouldinvest more time and money in understanding what customers want andhow they perceive them. This could be achieved by using moderntechnology and applying several promotional strategies such as usingsocial media, mail order marketing, customer appreciation events,after-sale customer surveys and use of customer referral incentiveprograms. This action is important since it helps not only drawcurrent customers through the door but also attract potentialcustomers (Bajpai et al, 2012).

Mosteffective advertising medium for Adidas

Adidashas effectively advertised its brand through sponsorships of events,sports teams and endorsement by celebrity personnel. This involvespaying companies, people and events to use their brand or logo. Mostcommon is sponsoring the 2014 world cup in Brazil and is replacingNike as the Man United kit sponsor in an £ 750 million deal. Nikealso uses famous athletes and other personnel such as Bull pointguard Derrick Rose, Katy Perry, David Beckham and Lionel Messi.

Tosum up, it is essential for sports apparel companies to embraceeffective promotional and advertising strategies in order to achievemore product success and greater recognition (O`guinnet al, 2014).This paper has provided and in-depth analysis of the precedent set byNike and Adidas in the sports wear industry of how to successfullyutilize such strategies.


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