Brand Management Report: Nike and Adidas Brand Equity and Strategies

This report provides a detailed analysis of brand management, focusing on the strategies employed by Nike and Adidas. It begins with an overview of brand management and its importance, introducing the CBBE (Customer-Based Brand Equity) model as a framework for building a strong brand image. The report then explores brand identity, meaning, response, and resonance, illustrating how these concepts are applied by Nike and Adidas. The report delves into brand equity, analyzing how it's measured and managed, and examines the distinction between strong and weak brands. It highlights key elements of a strong brand, such as target audience, brand promise, and public relations. Additionally, the report examines marketing tools, brand portfolio management, and the challenges of developing a brand over time, providing a comprehensive overview of brand management principles and their practical application in the context of these two leading sports brands.

BRAND MANAGEMENT

Brand management is the most important term which help company to enhance the company
development. For that, company needs to adopt CBBE model in order to ensure the Brand image
of the company. CBBE model which stand for the customer based brand equity. It defines the
importance of customer in terms of company profit. It consists 4 steps to make effective brand
image of Nike and Adidas
Step 1: Brand Identify
This model explains about the brand awareness among customers or in the market.
Company needs to adopt constant changes in order to make strong brand image in the market by
providing all latest information of the company. Through which customers understand the brand
identity in effective manner.
Step 2: Brand Meaning
In this model company needs to adopt some technique to explain the value. In which
company needs to explain brand effectiveness, efficiency and empathy through which customer
get know easily
Step 3: Brand Response
In which the main goal of the company to identify the customer response towards the
brand. Company identifies their brand response with the help of two tools feelings and
judgement.
Step 4: Brand Resonance
In the next step company aims to strengthen each resonance category. It is the top of the brand
equity pyramid.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
P1 Explaining the brand and important marketing tools.............................................................1
M1. Evaluate How brands are managed over time using application of appropriate theories
models and concept......................................................................................................................3
P2 Analysing manage and develop a brand over time and explaining main challenges
developing a brand.......................................................................................................................4
M2................................................................................................................................................8
SECTION 2.....................................................................................................................................8
P3 Analyse different strategies of portfolios management..........................................................8
P4 Evaluation of brand management collaboratively and in partnership at domestics and global
level............................................................................................................................................12
P5 Different types of techniques for measuring and managing brand value with examples.....15
M5 Application for measuring brand value to enhance the brand reputation...........................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Brand management is the effective process to build the product image in the market.
Organization brand image build with the help of its quality of products. Brand management
manages the product image in the market with great extent. To make brand attractive and stable
company needs to maintain healthy and good relationship with the stakeholders. Brand
management helps to enhance the brand of the company and promote the product and services at
great extent. Present report based on brand management of Nike and Adidas both the brand is
more capable and enough brand value in the market. It deals with shoes and clothing sector. This
will explain the brand management and brand equity, besides more it will focus on the branding
marketing tools which help Nike and Adidas to promote their brand image. It will discuss brand
portfolio management and brand hierarchy of the company, overall it will discuss about the
different brand aspects which is very important for the company to maintain its stability level.
SECTION 1
P1 Explaining the brand and important marketing tools.
Brand is the set of theories and management skills which helps to promote the company
product and services. Branding helps to know about company name, slogan, sign, symbol or
design or also helps to identify the company products and services (Apostolopoulou, 2015).
Branding makes products’ and services different from the competitors. It makes customer
perception and views in regarding product and services. Nike and Adidas itself is the big brands
in sports shoes and in sports wears. They have known as big leading brands. Nike and Adidas
have its own brand value and customer attraction. It makes consumer perception when they
heard the name of the brands. Besides, brand becomes popular when they provide quality of
services and products which is compatible or much better than its competitors. Branding is a very
crucial tool which promotes company products in the market. If Adidas launch new product
segment or services, they become popular because they have good brand value in the market.
This also increases the profit revenue of the company as long and helps to get business expansion
in future. It makes company stronger. This brand is the most effective tool of marketing which
helps to get product more popular and increasing the sales of the products. Overall it makes
company profitable and stronger on the other side company also needs to maintain its brand
image in the market. For that company needs to innovate creative services and new product
strategy on the basis of customer needs and wants (Viktoria Rampl and Kenning, 2014).
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Company should adopt changes and new environment to produce new thoughts and ideas to
maintain the market share and company value in front of the customers. Overall, for the big
brands it is very important for them to adopt prime qualities and effective marketing tools get
good response of the services from the customers. Due to heavy competition brands must create
new techniques to sustain the existing customers with long time. These whole processes possible
when company brands are counted under top brands. Branding depends on the company
overview how they perform in the market and provide the best service of products for the
customers. Branding includes some Elements which explains the company some of them are
given below:
 Brand title
 Brand name
 Brand color
 Brand Logo
 Packaging of brand
 Target group of customers
 Brand Positioning
 Brand Promise
These elements describe the brand details and product services of the company along with that it
will make easier for the organization to build the strong image in the market and create
competitive market for their competitors (Buil, Martínez and de Chernatony, 2013). Like Nike
and Adidas both the brands are in the same market but have different customer and marketing
approaches. Nike is one of the top three players in across the world for sports shoes. On the
other side Adidas known for its prominent services and designs of clothing and accessories,
Adidas is also a manufacturer for clothing. Nike uses the customer approach and make to stock
in which they provide fast services to their customers. They sell their products in all over the 180
countries. They are very strong and competitive in Research and development through they
provide new services or products. Whereas, Adidas adopt legacy and heritage approaches to get
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customer attention. Adidas has different product portfolios strategies to get customer satisfaction
and enhance brand image in across the world. They adopt different channel of distribution to
provide customer reach. Overall, both brands are highly effective and effective in terms of
growth. These all factors influence branding, competitors always ready to adopt new changes
and strategies to expand the market which gives negative impact on the business practices.
Besides, companies make sure its quality and try to provide more customer services to enhance
the brand value in the challenging market.
Overall, positive and negative factors impact on the business practices, for that company
needs to maintain its brand positioning in the market.
Brand marketing tools:
 Produce s signature quality product and services.
 Develop a must read company blog.
 Publish a provocative industry newsletter.
 Conduct the best effective research project.
 Initiate award programmes and give sponsorship.
 Start company index.
 Cultivate more visible experts.
 Create high profile marketing techniques.
M1. Evaluate How brands are managed over time using application of appropriate theories
models and concept
Different models and theories of brand manage over time helps to build the effective
change of improvement. Brand manages over time is very essential for the company to adopt
effective brand level of the company such as Keller's brand equity model helps company to
manage brand over time. Brand equity is the tool which helps to measure the company brand in
the market. Different factors influence the strength of particular product brand. This concept
model also known as customer based equity CBBE model, the main objective or concept of this
model is strong brand and customer attraction. This helps to measure that how customer take the
brand. How customer think and feel about the product.
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P2 Analysing manage and develop a brand over time and explaining main challenges developing
a brand.
Distinction between a strong and weak brand
Strong brand and weak brand both are the different aspects of each others. Strong brand
always focus on the customer services and maintained their reputation in the market. Small
brands are looking for its sales rather than customer satisfaction. Moreover, strong brand know
they are this and not that. Besides, weak brand settle for doing what's easy or obvious. Strong
brand always considered the product quality and weak brands focus on the product awareness.
Examples: there are huge number of big brands who makes impressive impact on the customer
behaviour. Such as Apple Inc,, Nike, Adidas, Samsung. These all are the big brands in the
market which mainly focus on the customer services. Moreover, big brands are laws introduce
new creative innovative things for the customers. This also makes good services to customers.
Justification: big brands relate innovation with the quality. Big brands always offers the best
productive products in the market. Example: of weak brand is FedEx that of strong brand is Nike
and Adidas.
Brand equity is the marketing term that describes the brand value of the company. It
values gives the overview of customer perception and brand image in the market. It provides the
actual position of the company in the market brand value can be measured from the customer
services, brand popularity, customer satisfaction and market share (Ross and Hajjat, 2016). This
explains the actual brand of the company. It also calculated by the customer experience with that
brand. If company constantly provides low services to the customers’ then customers start avoid
the brands products, which affect the brand equity of the company. Brand equity has both
positive and negative advantages for the company. Such as high brand equity can charge more
prices and get good product sell. This can be transferred to line extensions. Besides, good brand
equity can also help company to increase company stock price. To achieve the top level and high
brand Equity. Company needs to adopt successful brand strategy in affective manner. Brand
strategy should be attractive and innovative to attract customer attention towards the company
products. It helps organization to maintain the market popularity.
Key Elements of a strong brand
Target Audience: it is the first component of brand in which company has to select
brand management. Company always focuses on customer segment through which they earn
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maximum profit revenue. Like Nike is the company who represent leading sportswear and
apparel company (Christodoulides, Cadogan and Veloutsou, 2015). They focus on the
professional athletes. Nike seeks to develop the product image with great efforts. On the other
side Adidas, they also the big brand with Nike from last few years its presence kept in
customer’s mind. Besides, for the big brands it is very important for them to attract their
potential customers.
Brand Promise: Brand promise is the significant elements of brand, its impact on the
customer’s emotions. Like both the brand are attract sports persons. They connect sports quality
with the products. It is very necessary for the company to make emotional connection with the
customers to enhance the customer trust and faith.
Public Relation: customer relationship and customer service is the foremost responsibility of
companies to maintain its brand sustainable. It makes huge different from other companies
(Rosenbaum-Elliott, Percy and Pervan, 2015). Nike and Adidas both they are very good to
accomplish the needs of their customers and provide them good quality of products on the basis
of its demands. Sometimes customer has facing any issues and problems so in that case it is the
responsibility of companies to resolve the query.
Brand Reinforcement: Brand reinforcement strategy of the company defines that
company needs to maintain its brand equity of the company in long term market. Through which
customer get satisfied and happy. Company needs to adopt new development in order to make
position sustainable.
Brand Revitalization: this strategy helps company to sustain in the market at the
position of market. At the stage of maturity when company needs to get new product line in
order to maintain the company position.
Like the Belgian Chocolate brand which is the confectionery which was having very bad
year as the which was not doing in their public retaions.
How to manage and develop a brand over time
To manage the brand over time is the very important task for the company to focus on the
other aspects as well (Fisher and Vallaster, 2010). To make brand stronger company needs to
follow the brand theory and concepts which helps to generate more effective brand marketing
programmes of the company needs to be contrast and regular to make brand effective and helps
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to sustain in over the time. Some brand theory provides initiatives such as consumer decision
making, buying behaviour, marketing communication etc. these all concepts enhance the brand
value and helps to keep marketing programmes effective.
Main Challenges developing a brand
Treating Brands as assets: the ongoing pressure of the work and maintaining the brand
image in the market. Company has fear to lose the brand asset due to rapid changes in the
environment (Du Preez and Bendixen, 2015).
Cash: due to short term financial concern, the biggest challenges faced by the brand
leader is cash. Executive needs funds for the daily routine activities through which company
provide their marketing activities. However, manger needs to decide and choose one way rather
they want to invest in a brand and missing short term financial targets.
Clutter: In the current environment several big brands gives their advertisements. To
breaking through thus cluttered company needs to invent creative marketing strategies through
which they get the customer satisfaction.
Consistency: the another biggest challenge of branding is consistency. Company needs
to make proper plans in order to form a good market image. They need to understand their own
beliefs and objectives to implement plans in an effective manner (Xu-ao, 2012).
Achieving integrated marketing communication: IMC is the most difficult challenge
facing by the company while managing the branding. It becomes challenging when company
adopts the promotional strategies such as advertising, sponsorship, digital, mobile, social media
etc. these all factors tend to compete with each other. That’s why it becomes more complex.
Building digital strategy: this is the most difficult task for the company to manage the
branding of the product. Due to heavy competition in the market. So that, company needs to
adopt best marketing activity in order to ensure the effective branding. Such as Nike and Adidas
both the company is on the same level of competition.
Overall, Nike and Adidas should manage their brand over time and try to utilise all
resources for getting market attention.
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Illustration 1: CBBE Pyramid
Source: CBBE Model. 2017
Brand management is the most important term which help company to enhance the
company development. For that, company needs to adopt CBBE model in order to ensure the
Brand image of the company. CBBE model which stand for the customer based brand equity. It
defines the importance of customer in terms of company profit. It consists 4 steps to make
effective brand image of Nike and Adidas
Step 1: Brand Identify
This model explains about the brand awareness among customers or in the market.
Company needs to adopt constant changes in order to make strong brand image in the market by
providing all latest information of the company. Through which customers understand the brand
identity in effective manner.
7

Step 2: Brand Meaning
In this model company needs to adopt some technique to explain the value. In which
company needs to explain brand effectiveness, efficiency and empathy through which customer
get know easily.
Step 3: Brand Response
In which the main goal of the company to identify the customer response towards the
brand. Company identifies their brand response with the help of two tools feelings and
judgement.
Step 4 Brand Resonance
In the next step company aims to strengthen each resonance category. It is the top of the
brand equity pyramid.
M2
Nike and Adidas both is the competitive brand value which represent individual
importance and effectiveness. Like Nike represent themselves is a sport brand. Besides Adidas
provides strong stability which deals with clothing, making shoes etc. Nike target customers are
sports persons or athletes. They focus on the product development for which they focus on the
customer needs and new trends through which they offer new services of products. Both the
brands having the strength in order to manage their brand image over time period.
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SECTION 2
P3 Analyse different strategies of portfolios management
Portfolio strategies help
company to make competitive
environment for the company.
Every brand portfolio of the
company defines the
opportunity and their market
growth. The main of the brand
portfolio is to get less possible
market risk. There are some
brand portfolio strategies
which is very helpful for the
company brand value.
 Passive Portfolio
management strategy:
passive brand strategy
is to focus on the
market demand and
customer demand with
particular company.
This portfolio adopts
customer oriented
approach to attract
customer attraction. It
is further on analyzing
this strategy that is
efficient in terms of
managing cost. It is one
of the cheapest way for
Brand hierarchy of Nike
Brand hierarchy leads to create
sub branding or extension of
the existing brands that is
further associated with several
number of pros and cons. A
foremost advantage of this
approach is its assistance in
advertising the parent brand as
a way of increasing the
exposure to a great extent.
However, there together exists
certain cons of this strategy in
terms of managing costs for
the promotion and
maintenance of a new brand.
Brand hierarchy of Adidas
It is on considering the brand
hierarchy of Adidas that is driven
by energy. This is mainly on
considering the use of slogans and
such enthusiastic messages that
connects them well with that to
their customers. Its promotional
strategies are mainly focussed on
sports with campaigns to motivate
the athletes, etc. As a result, to
which, almost all of its promotional
campaigning’s are based on some
energizing themes of motion and
acceleration. To build a deeper
connection with that to its clients
and users, Adidas is known to use
almost all traditional means of
marketing along with its social
media accounts and websites.
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