Brand Management Analysis: Nike and Adidas Strategies and Equity

This report provides a comprehensive analysis of brand management strategies, focusing on the case studies of Nike and Adidas. It begins by exploring the importance of branding as a marketing tool, examining key components of successful brand strategy, including brand equity, customer loyalty, and brand awareness. The report delves into various brand management theories and models, illustrating how these concepts are applied in practice. It then assesses different strategies for brand portfolio management, brand hierarchy, and brand equity management, comparing the approaches of Nike and Adidas. The report further investigates collaborative and partnership approaches in brand management at both domestic and global levels. Finally, it examines techniques for measuring and managing brand value and image, providing a detailed overview of the subject matter, offering valuable insights into the dynamic field of brand management and how leading companies like Nike and Adidas build and maintain their brand presence.

BRAND MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P.1. The importance of branding as a marketing tool and why it has emerged in business
practice........................................................................................................................................1
P.2. The key components of successful brand strategy for building and managing brand equity
.....................................................................................................................................................3
TASK 2............................................................................................................................................5
P.3. The different strategies of portfolio management, brand hierarchy and brand equity
management................................................................................................................................5
TASK 3............................................................................................................................................7
P.4. How brand are managed collaboratively and in partnership both at domestic and global
level.............................................................................................................................................7
TASK 4............................................................................................................................................9
P.4. The different types if techniques for measuring and managing brand value image............9

INTRODUCTION
In this documentation, we will discuss about to effective strategy for brand management
in the business in more effective manner. Moreover, this reports review about significance of
branding as a marketing tools in the business by which Nike and Adidas both business can
increase their brand value in more effective manner as well. Furthermore, assessment if different
strategy for effective brand portfolio management in both the corporations in domestic and
global level. We will also discuss about to how to collaborative and partnership approach can be
used in order to sufficient brand equity management at a global and domestic level in the market.
We will also examine the several kinds of mechanism for measuring and managing brand value
in Nike and Adidas both companies.
TASK 1
P.1. The importance of branding as a marketing tool and why it has emerged in business practice What is brand: It could be said that a brand is a logo, symbol, name and word of a
company which is used for differentiate a company's product and services from other
companies in the market (Abrahams, 2016). This is a symbolic instrument in which
several kinds of factors involved in order to become a popular brand among the people. Why it is important: Various kinds of elements are included in a brad value by which a
brand become more popular in the market effectively. This is important because of brand
not only create loyalty among the customers but also help in create employee loyalty and
faith towards the company to work preferably in their chosen brad in the market. This
will also help to accomplishment of organisational goals and objectives efficiently. Brand equity: Brand equity is most necessary terms to make a brand in premium quality
which generate from company's existing product and services with its specific
identification name and symbol (Arai, Ko and Ross, 2014). It is essential when a
company brand value compare to other brand in the industry to check out their popularity
and premium ness in the market as well. Nike company also crate their brand equity at
wide level by providing quality of product and services.
Importance of branding as a marketing tool: Customer loyalty: It is a marketing tool which can be used for Nike Company to make
their customer more loyal towards their existing product and services effectively. The
Company want to modify their brand at that level in which they can raise their market
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share more efficiently (Ashworth and Kavaratzis, eds., 2010). Nike provides the quality
of product and services by which they create effective bran equity on customer mind and
the customer can easily trust on the product and services provided by Nike firm. Consumer pay for image: Nike always make effort in order to create brand premium
more efficient and also implement strategy by which they can become more popular in
the manufacturing industry as well. Consumer always pay for brand image because they
prefer to utilisation of quality of products and services. This term also apply on the Nike
as well because of consumer always pay for particular image of a brand. They don't
attract on other same products which is providing by competitors of Nike. You become well-known: Brand as a marketing tool help to become Nike Company more
popular in the market. With the help of brand equity of Nike, the company will be able to
become well-known in the industry (Balmer, 2012). Nike implements some effective
strategies on the business so that customer get more attracted on company's product and
services. Nowadays, Nike is a most popular brand around the world and its brand name is
also enough to attract people to purchase their product and services. This will help to
enhance company's sales and productivity effectively.
M.1. How brands are managed successfully over times using theories, models and concepts The branding theory: This theory help the Company to manage a specific company's
brand values and equity in the market effectively. In the terms of theory, it furnishes the
value in which a brand is selected and approach to manage their standard in the market
efficiently. This approaches provide promotional activities by which a company can get
more brand values in the industry and efficient response from their customer as well.
Nike Company try to create positive relationship with their all loyal customers so that
they will help to raise productivity and market shares of the company effectively.
 The value based theory: This approach define about to the value by which they can
generate long term customer loyalty to a particular brand in the market. Every brand need
to promote their brand value at the highest level so that company will be able to serve
their existing product and services more effectively (Barrow and Mosley, 2011).
Customer faith and loyalty is a backbone of a success of a brand in more effective
manner. Nike need to increase their value by furnishing their existing sports shoes and
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other products more efficiently and implement innovative techniques on their business to
increase their brand equity in the market more effectively.
 D.1. Ex: Nike apply segmentation approaches to provide their existing product and
services to different-different kinds of people so that customer become more loyal
towards the Nike firm because of all the product and services offering by Nike
organisation which is in proper segmentation as well. Nike implement several innovation
on their business so that their market share always increase in efficient manner.
P.2. The key components of successful brand strategy for building and managing brand equity
There are various kinds of brand operating in the market which is formulating their
brands and they also have some effective brand equity such as Adidas, Unilever, Nike etc. they
all have strong brand equity among the people (Braun and Zenker, 2010). Brand equity is a
factor of a brand ability to make customer loyal to purchase particular brand of product and
services. Brand loyalty: This is a component of brand strategy by which a customer become more
loyal to purchase a particular brand's product and services more effectively. Nike also
make effort in terms of generating more brand loyalty in the customer mind so that they
will buy its existing products and services. Brand is a component by which a company
can building more loyal customer and brand loyalty also help to effective manage Nike
Company's brand equity more effectively because of their efficient and loyal customers. Brand awareness: In order to establishment of an effective brand awareness among loyal
customer, Nike Company need to know about to the purpose and goals of their business
and product efficiently (Burmann, 2010). Moreover, when your customer is well-known
about purpose and goal of your product and services then they will be able to easily
identify their particular brand's products and they frequently purchase them as well. Nike
implements some of promotional activities by which the Company get more popularity
and advertising in the market it increases the brand equity of Nike Company. This is also
a major key component of successful brand strategy to effective building and managing
of Nike Company's brand equity.
 Perceived brand equity: This element of successful branding strategy in highly related to
the reasons that's why a customer purchase a particular brand's product and services
efficiently. Quality of Nike Company’s product and services is an attribute to effective
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manage the quality of product and satisfaction level of customer as well. Selection of a
particular brand is a necessary for Nike Company and their customer both for building a
strong brand equity in the market which help to compete Nike' company's competitors
more efficiently (De Chernatony, 2010).
EX: Nike is specifically known as selling premium sport shoes around the world. Nike also
furnish other sorts products like t-shirts, lowers and football products etc. so these all others
products also being purchased by customer effectively because of high brand equity of Nike in
the sport manufacture ring industry. Brand association: Brand association assist customer buying process to effectively know
about to their concerned brand's product and services information related to a specific
brand in the market (Gundala and Khawaja, 2014). These activities assist consumers to
easily find out Nike brand competitors, some strong reasons to buy its particular product
and it also creates positive relationship between customer loyalty and brand equity by
which they can create some brand awareness in the market so that it creates strong brand
equity on customer mind so that company will be able to create more success. Proprietary assets: These elements add some competitive advantage for Nike Company
and also provide appropriate protection from other large competitors in the market so that
they will be able to build their strong brand equity in the market. These activities are
copy rights, patents, creating positive relationship among loyal customers and also
protect intellectual property of Nike firm in order to building and effective manage of
their brand equity in the market.
M.2. Apply appropriate and validation example:
 Ex: Nike is known as high quality of product and services provider of sports hoes
majorly. The Company is effective known as worldwide so that it had also large number
of competitors in the market such as Adidas, Reebok, Puma, Fila, Converse, New
Balance etc. (Hatch and Schultz, 2010). They are also giving more competition to Nike
firm effectively. The Company need to formulate its effective strategies in order to
efficiently defeat their customers in the market and also enhance the brand equity of Nike
Corporation as well. Effective strategy implementation will help the company to raise its
market shares and brand equity as well in more effective manner.
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TASK 2
P.3. The different strategies of portfolio management, brand hierarchy and brand equity
management
Brand portfolio is a strategy in which different kinds of brads are involved in the
portfolio and they help to growth of the business by providing different kinds of product and
services in the market more effectively (Herstein and Zvilling, 2011). Brand portfolio also assist
the company in order to develop effective brand structure of the Organisation. It also determines
that how to develop optimal strategy for development of their issues in more effective manner. Primary brand: This is a major brand name of a specific company's product and services.
This is basically large volume of branding factor on specific packages of product and
services in order to development a strategic branding portfolio in the business as well.
This is the process which is concerned about to the way in which customer demand for
particular product. Every brand have its own primary brand and the very simple branding
just have simple name and primary product statements as well. Nike, Adidas, Reebok etc,
have its own primary brand which is helpful to effective management of branding
portfolio. Sub-brand: This is the second primary factor which come after the primary branding
name and it is usually just above the product description as well. These are group of some
specific product and services which is generally specific from primary brand. These
brand element have very low branding criteria (Johansson and Carlson, 2014). Sub-
brands can be useful when there are lot of differentiate between several products and
services which is sold to a particular brand.
From the above strategy of branding portfolio management, Nike and Adidas, both
companies can use these kinds of strategies and formulate specific brand portfolio in the
company. With the help of these activities, they can raise the value of their brand equity in the
firm effectively.
 Brand hierarchy management: Brand hierarchy is the process in which several kinds of
branding strategy by showing the number of common and distinctive brand factor by
founding the impending branding relationship among the several kinds of product and
services furnishing by the business as well. A brand hierarchy is graphically portraying
branding strategy (Kapferer, 2012). A brand hierarchy is depended on how a product
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could be branded with the assistance of several elements associated and branding some
factors ae collective to design a new product and then develop them as most popular
brand in the market.
Following two kinds of brand hierarchy strategy which can be used in both firm to
differential companies of Nike and Adidas as well. Corporate brand hierarchy: Corporate brand hierarchy is a strategy in which a specific
company name is used as a brand name in the market. Nike Company also implementing
this kind of strategy to create a proper brand recognition in the market. This also defines
about to some promotional exercises by which company promote their brand name as a
corporate entity. Nike firm use their corporate name as big brand name and take some
strategies in the business which promote brand in most effective way in the market.
Under the name of the corporation, there are various activities can be done efficiently. Individual brand: Individual brand is also known as the brand in which specific branding
can be used and multiple branding as well. In this term each product brand name is used
as a premium brand name in the market. The major advantage of this approach is that
every particular brand has its own specific brand name and identity in the brad portfolio o
of the business. This strategy describe about to use of several products and services with
different kinds of name in the market (Keller, Parameswaran and Jacob, 2011). Nike and
Adidas both organisations are implementing same strategy on the business in order to
give unique brand name for the business.
 Brand equity management: Brand equity is the strength of the brand which is derived
from consumer mind effectively. Brand equity define about to the value of several brands
image on consumer mind which make attract the people to buy same company’s product
and services frequently (Kunerth and Mosley, 2011). There are two major effective
strategies for brand management in which sub-optimal practices is being done in these
strategies. Nike and Adidas both companies are using same strategy in their business in
order to meet their targeted customers in efficient manner. Both organisations need to
effective manage brand equity management in the business to increase their customer
loyalty in the market.
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TASK 3
P.4. How brand are managed collaboratively and in partnership both at domestic and global level
Domestic level: Various forms presented here by which Nike and Adidas both companies
can use to effective brand management at domestic level in the country (Lee and Carter, 2011).
Nike is the well-known brand in the market which is selling sports shoes at very broad level and
Adidas also well known for selling sports shoes around the world and some other sports
garments as well. There are some collaborative strategy by which both business can enhanced
business quality in more effectively. Both companies brand management and collaboratively
partnership are as below: Collaborative innovation: this term can be used for the establishment of branding in
more effective manner at the worldwide. Nike and Adidas both companies can use
collaborative innovation techniques in their business in order to development their
business at domestic level in efficient way. Both companies can work for some
innovative product development in the sports shoes products and use some of domestic
company to collaborate with them (McDowell, 2011). Domestic companies can furnish
broad ideas about to several innovative techniques and new techniques in which they can
implement some innovative in their product and come up in the market with new product
and services which provides effective brand image for both companies in effective
manner. Nike and Adidas both companies can use these techniques in terms of better
improvement in their business with using some innovative techniques and mechanism in
the firm. Modification: Modification can be applied in both the company case in which they can
modify their sports product in better way according to their loyal customer needs in the
market. With the help of this they will be able to create their wide range of brand image
with the help of satisfying the customer needs and requirements in more effective
manner. Nike and Adidas need to modify their product and services according to their
loyal customer demands in the market so that their business can be developed better
manner and they will be able to provide more efficient manner. With the help of new and
innovative product and services in order raise their brand value and image in the industry
and these activities can raise productivity of both the organisations in more effective
form.
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 Offering: Offering is the best approach which must be used by each business in order to
increase their brand value and productivity in more effective manner. They can use some
domestic brand in their business in terms of providing effective offering with them by
collective manner (Melo and Galan, 2011). So Nike and Adidas need to provide some
effective offering services towards their targeted customer who increase brand equity of
Both companies in the market and also effective manage the brand values of both the
companies as well. They can work collaboratively with domestic sports selling and
marketing companies so that effective market value can be accomplished. Both
companies can furnish some effective offers on specific occasion in several countries so
that their brand image increase more effectively on customer mind. Global level: Various manners in which Nike and Adidas both companies can work
collaboratively and formulate partnership approach with other international brand in sport
shoes segment. With the help of these exercises’ they will be able to increase their brand
value at global level and also effective manager their brand image in the market as well. Partnership with top brands: Nike and Adidas both companies could use of partnership
approach in context of increase their brand equity and market share in the industry. They
can make partnership with top international brand which is operating in the same industry
and with the help of this, Both companies can serve better product and services to their
targeted customers in more effective manner in order to development of their product and
services in more effective manner (Morgan, Pritchard and Pride, 2011). They can modify
their new product with current market condition and also according to the customer
demand and needs, so that their product must be successful gain in the market efficiently.
There are several products and services using by both the companies, but they need to
make partnership with top international other shoes' maker companies in context of new
product development and some effective changes in the product and services as well so
that their existing business will achieve more success. s
 New marketing strategies: Nike and Adidas both organisations could utilization of new
approaches of effective marketing in the business in order to better improvement in their
brand value and image. They need to hire some strategic marketer in order to
implementation of the best marketing strategy for their innovative new product and
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services which is formulated for raise the sales of the market in more effective manner.
They can employee some domestic employees in the business in terms of effective
marketing of Nike and Adidas product and services in the market in better manner so that
their product meet to targeted audience in efficient way. Their new approach of
marketing of their new product will more satisfy their each loyal customer demand in
more effectively. They need to follow various marketing strategies in several countries
according to circumstances and culture of the country.
TASK 4
P.4. The different types if techniques for measuring and managing brand value image
Brand measuring techniques in relation to Nike and Adidas both companies Surveys: Nike and Adidas both companies can implement surveys approach in their
business in order to frequently figure out the brand value in the market. With the
assistance of survey method both the corporations can check out their global and
domestic level brand image effectively (Richelieu, Pawlowski and Breuer, 2011). There
are several ways like e-mail, online, through website, social media and questionnaires etc.
can provide proper information about to the brand image and value of both the companies
in efficient way. Website traffic: This is the ways to measuring the brand value of Nike and Adidas both
corporations. This could be done with the assistance of a channel tool which is furnished
by Google Company through which an analytical data of frequent visiting websites could
be gained effectively (Temporal, 2011). So that it could be find out that how many
visitors had been cautious using Nike and Adidas Company’s website in order to
purchase its product and services. If there is numbers of visitors increase day by day then
it can conclude that both corporations brand value is increasing efficiently.
 Social listening: Social medial is the most appropriate alternative for each business in
order to promote each company’s product and services in effective form and also
measure the brand values of each company in the industry as well. Social media like
Facebook, twitter, Instagram, e-mail etc. options can be utilized by the both the
companies in effective manner in order to know about to how many of people are using
Nike and Adidas product and services effectively and also know about to how many
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people liking its product and services in efficient form. Company can ask feedback from
their customer through social media applications.
TECHNIQUES AND BRAND EQUITY AUDIT
 Clearing the perspective: Brand equity could be assessed with the assistance of
several approaching efficiently (Rindell and Strandvik, 2010). The yearly financial
fluctuation and growth in the business can help to identify the value of the premium
effectiveness of Nike and Adidas both organisations. This is also found out the prices
in which their customer can afford effectively. In the pricing policies their customer
will be able to pay for their effective product and services.
 Evaluate brand equity: These terms are classified into three parts which is tracking,
exploring and extending the power of brand efficiency of the business. These three
approaches will help Nike and Adidas Corporation in order to raise their brand value
and brand equity as well. These approaches also assist the both business to determine
the market position of both business among the competitors.
 Customer behavior: the Evaluation of customer behavior and out look toward Nike
and Adidas product and services can be helpful for knowing about to the brand values
in the industry. This could be done with the help of review of loyal consumer of both
companies in the market. Strong feedback of the loyal consumer indicate towards the
strong brand value of both business in the market effectively (Som and Blanckaert,
2015). Nike and Adidas both companies should know about to the customer review
on their product efficiently so that their market values can be assessed easily.
DIFFERENT APPROACHES OF VALUING BRAND
 Brand sale comparison system: This methodology could be helpful in order to
effectively know about to the brand valuation of Nike and Adidas Company’s product
and services in effective manner in the several marketplaces. Apart from this, both
organisations can evaluate of their current transactions in some markets and parallel
them to recent frameworks available in the business. The major key elements of this
approaches is determined the brand value from other party effectively.
 Equity evaluation method: This methodology includes results and promotion in the
cost and profitability also (Rosenbaum-Elliott, Percy and Pervan, 2015). The main
benefit of this approach is that Nike and Adidas both companies can develop some of
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