International Marketing

Running Head: International Marketing 0
International Marketing
(Student Name)

International Marketing 1
Table of Contents
1.0 Introduction..........................................................................................................................2
2.0 Part 1....................................................................................................................................2
2.1 Comparison between Nike and Adidas............................................................................2
2.1.1 Market Share and Sales represent that.......................................................................2
2.1.2 Online sales issues.....................................................................................................2
2.1.3 Segmentation, targeting and positioning...................................................................2
2.1.4 Competitive strategies................................................................................................3
2.1.5 Different products companies offer...........................................................................3
2.1.6 Communication strategies..........................................................................................4
2.1.7 Ansoff Matrix............................................................................................................4
3.0 Part 2....................................................................................................................................5
3.1 Expansion of Adidas.........................................................................................................5
3.1.1 Analysis of Russia.....................................................................................................5
3.1.2 Analysis of Adidas.....................................................................................................6
3.1.3 Growth opportunities.................................................................................................7
3.1.4 New Market opportunities.........................................................................................7
3.1.5 Issues affecting global trading...................................................................................7
4.0 Part 3....................................................................................................................................7
4.1 Recommended Strategies.................................................................................................7
5.0 Conclusion............................................................................................................................8

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6.0 References..........................................................................................................................10
7.0 Appendices.........................................................................................................................12
1. Comparison between Nike and Adidas............................................................................12
2. Different products both companies offer..........................................................................12
3. Segmentation, targeting and positioning..........................................................................13
4. Ansoff Matrix...................................................................................................................14
5. Analysis of Russia............................................................................................................14
6. Competitive conditions.....................................................................................................15

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1.0 Introduction
The sports industry has grown by leaps as well as bounds in the past five decades. It
contributed significantly to the economy of the country in an effective manner. The major
leading companies in the sports industry are Adidas, Nike, and Puma that cover maximum
market share in the global market. They have different marketing strategies to target their
consumers that made them unique in the market (Ehrman, 2015).
In the following part, detailed analysis will be done on Nike and Adidas for through their
performance and the way Adidas can expand their business in another market.
2.0 Part 1
2.1 Comparison between Nike and Adidas
2.1.1 Market Share and Sales represent that
In the year 2009, the market share of Adidas was 22% or international sporty footwear. In
contrast, the market share of Nike was about 33%.
During the year 2009, the proportion of the sale of Adidas stated decay in profit. In the last
quarter of the 2009 the sale of Adidas decline by 5% due to the reason for the increase in the
marketing cost. In contrast, the sales of Nike in the fourth quarter of 2009 were reduced down
by 7% while the first quarter of 2010 represents 53% enhancement in the net income.
From the above data, it can be analyzed that Nike has great market share than Adidas due to
the reason, they have covered their market in a more effective and efficient manner ( Mahdi et
al., 2015).
This has been illustrated in Appendix 1
2.1.2 Online sales issues
Nike and Adidas both have adopted an online platform to target their consumers. However,
Adidas faces certain challenges in targeting their consumers through online due to their slow
service provided in the online increase the level of dissatisfaction among the consumers of
Adidas. In contrast, Nike manages online services more effectively as a comparison to the
Adidas.

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The online service of Nike is better than Adidas as Adidas faced certain challenges in the
online services provided by them that made the Nike competitive in the market (Song et al.,
2014).
2.1.3 Segmentation, targeting and positioning
Segmentation
The segmentation of Adidas is based on demographic, behavioral, as well as psychographic
factors. The group of Adidas has four brands in their portfolio which include Adidas, Reebok,
Rockport, and Taylor that are made for a different segment of consumers groups.
In contrast, Nike has majorly focused accruing to Psychographic segmentation and
demographic segmentation. They target or cater their products to all the people around the
world that are belonging to any age group who wanted to live the lifestyle of athletics (Rubin
et al., 2016).
Target Audience
In the situation of targeting the audience, Adidas, as well as Nike, have different target
consumers at the global level. Adidas mainly target the age group of 12- 34 years consumers
especially, those who are involved in sports. Adidas target various segment of sports such as
gym regular, football, NBA and so on.
In contrast, Nike has a specific targeted audience. They mainly focus on the male and female
whose age group are between 17-36 years old. As like Adidas, Nike also focused on troupes
of football as their targeted audience.
Positioning
Adidas has their individual distinctive brand positioning in the thoughts of consumers among
which one of the thought that have been set up by the company is that those who wanted to
prefer light shoes prefer Adidas in place of going for further brands. The company has also
set up their image in the mind of consumers is basketball shoes due to the reason, basketball
players mostly wear such shoes due to their unique design as well as lightweight.
In contrast, Nike is majorly known and set up their image in the market as an innovative
company who majorly focuses on making the innovations as well as design new style shoes.

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The main targeted audiences of Nike are football players as they are key positioning in the
mind of consumers that provide a competitive edge that also helps the athlete to perform in a
more effective manner.
The positioning of Adidas and Nike are similar due to the reason they target their consumers
almost the same segment and both enjoyed their unique brand image in the competitive
market (Larson, 2011)
This has been illustrated in Appendix3
2.1.4 Competitive strategies
Both Nike and Adidas lead in the international market in the sports industry. They have
adopted different competitive strategies to target their consumers. Adidas uses market
skinning strategy to target their consumers. Adidas has also used a variety of sales promotion
strategies in order to enhance their sales. In recent, they have provided 30 % or more
discounts coupons to their consumers through deal taker.
In contrast, Nike has majorly adopted competitive pricing strategy which is based on the
basis of the premium segment to target the consumers. Nike adopted product differentiation
as the competitive strategies to target their consumers
The services provided by Nike are better than Adidas as Nike focus on a market niche, as
well as focus on maintaining strong base with the consumers and suppliers that made them
stronger (Berendt, Uhrich and Thompson, 2018).
2.1.5 Different products companies offer
Nike and Adidas offer a variety of products to their consumers that increase their market
share in the international market. The product of Adidas are allocated into three
classifications
 Performance Sports Shoes of Adidas, perfume as well as eyewear
 Adidas style Caps, Hand Gloves, Bags, and Belts.
 Adidas Original Superstar Sneakers, Adicolor Trainer as well as Vintage Clothing
In contrast, Nike offers Sports shows, sunglasses, body care, trainer, hoodies, sneakers, caps,
clothes, perfumes, Bags and so on.