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Adrian P. Post:

Brand equity can be defined in several ways.  Simply stated, it is “the added value that a brand gives to a product beyond the functional benefits that it provides” and provides competitive advantages (UMGC, 2024).  It is how much customers are willing to pay for a purchase based on the brand’s name. 

Acme’s two competitors, Nike and Adidas, have established brand equity on a global scale through their effective branding strategies.  In 2023 in the United States (US) alone, Nike and Adidas were the top two recognized brands and brand awareness (Kunst, 2024). 

 

Nike’s main products are footwear (68%), apparel (28%) and equipment (4%) (Nike, 2023).  Nike employs a global multiproduct branding strategy and multi-branding.  In its multiproduct branding, Nike has Nike Men’s, Nike Women’s, Nike Kids.  In its multi-branding strategy, it has the Converse and Jordan line.  Tighe (2024b) states that Nike’s brand value worldwide in 2023 was worth $31 billion.  According to Nike’s 10-K annual report in 2023, 57 percent of Nike’s revenue came from non-US markets (Tighe, 2023).  Additionally, Nike has spent approximately 7-8% of its revenue on demand creation, which “consists of advertising and promotion costs, including costs of endorsement contracts, complimentary products, television, digital and print advertising as well as media costs, brand events and retail brand presentation” (Nike, 2023).

 

Wu (2022) provides an in-depth analysis of Nike’s emotional branding and marketing strategies.  Some of the key factors Wu discusses are Nike’s global expansion, cutting ties with wholesaler retailers to distinguish Nike as their own brand and not associated with other companies, a primary target audience of athletes both professional and amateur, regional marketing aimed at local consumers’ sports (Wu, 2022).  Other factors listed are the use of famous athletes and a shift to digital marketing with an emphasis on consumer needs.  Hashem (2024) states similar ideas to Wu in her brand analysis of Nike and attributes these five ideas to Nike’s branding success: “sell an identity, not a product, make yourself relatable, establish strong core values, invest in advertising and marketing, and use celebrity endorsers. 

 

Tighe (2024a) states that Addidas brand value worldwide in 2023 was worth $15 billion, significantly less than Nike.  The three products segments of adidas are footwear (56%), apparel (36%), and accessories and gear (7%) (Adidas, 2023, p. 128).  Although Adidas has segments for Men, Women, and Kids, they do not change the naming segment like its competitor Nike (Adidas, n.d.a). 

 

According to the Adidas’ website their brand strategy is to “capitalize on the acceleration of favorable long-term structural trends by pushing the boundaries of products, experiences, and services” (Adidas, n.d.b).  Li (2023) states while Nike and Adidas have similar branding strategies, their priorities differ where Nike focuses on innovation and marketing, Adidas instead focuses on market expansion and cost reduction.  Opposite Nike moving away from distribution centers and retailers, Adidas has instead chosen to work more closely with retailers and strengthen those relationships. 

 

Another technique utilized by Adidas for brand awareness is the collaboration with professional athletes, teams, and sporting events like the FIFA World Cup.  In addition to collaborating with professional athletes, Adidas also works with “designers, artists, and celebrities to create limited-edition collections that merge sports and fashion seamlessly” (McLaughlin, 2023).  Some of these collaborations include Adidas x Bugatti, Adidas x Moncler, and Adidas x Wales Bonner (Adidas, 2023).  This collaboration with designers helps to appeal to their customers’ fashion sense as well as a functional sports product.  

Acme can follow the examples of Nike and Adidas to develop its brand equity.  The brand equity can be enhanced by engaging with professional athletes’ endorsements to demonstrate the products’ quality and reliability.  The use of referent groups can be expanded to digital platforms and social media advertising.  However the use of the referent groups or individuals should be limited to those that align with Acme’s values, learning from Adidas’ loss after a joint venture with Ye, the rapper formerly known as Kanye West, after Ye had made public antisemitic remarks in 2022 (Associated Press, 2024). 

 Acme is new to the sports apparel and footwear industry.  It is recommended to develop its brand mixed branding strategy by working in conjunction with established retailers.  This collaboration would allow Acme to use the brand equity established by these retailers to build their own equity.  After an established period, a reassessment to maintain working with retailers or to minimize those relationships like Nike would need to occur.  Finally, Acme would need its own customer rewards program, like Nike and Adidas, to further develop its equity. 

References

Adidas. (2023).  Annual Report. Retrieved from https://report.adidas-group.com/2023/en/_assets/downloads/annual-report-adidas-ar23.pdf

Adidas. (n.d.a).  Adidas Official Website. Retrieved April 2024, from Adidas.com: https://www.adidas.com/us

Adidas. (n.d.b).  Strategy. Retrieved April 2024, from Adidas.com: https://www.adidas-group.com/en/about/strategy#:~:text=Based%20on%20the%20authenticity%20of,products%2C%20experiences%2C%20and%20services.

Associated Press. (2024, March 13).  Collapse of Adidas’ Ye Partnership Contributed to a Net Loss for the Company in 2023. Retrieved from Billboard.com: https://www.billboard.com/business/business-news/adidas-kanye-west-fallout-2023-sales-decline-1235632631/

Hashem, H. (2024, February 07).  5 Things We Can Learn from Nike’s Brand Identity and Advertising Strategy. Retrieved from Kubbco.com: https://www.kubbco.com/blog/5-things-we-can-learn-from-nikes-brand-identity-and-advertising-strategy

Kunst, A. (2024, February 07).  Leading sneakers brands ranked by brand awareness in the United States in 2023. Retrieved from Statista.com: https://www-statista-com.ezproxy.umgc.edu/statistics/1340401/most-well-known-sneaker-brands-in-the-united-states/

Li, X. (2023). Analysis of the Marketing Strategy of Adidas.  Advances in Economics, 23, 33-38. doi:10.54254/2754-1169/23/20230346

McLaughlin, J. (2023, December 08).  Adidas Marketing Strategy: Blending Innovation With Heritage for the Win. Retrieved from Brandcredential.com: https://www.brandcredential.com/post/adidas-marketing-strategy-blending-innovation-with-heritage-for-the-win

Nike. (2023).  Form 10-K. Retrieved from https://www.sec.gov/Archives/edgar/data/320187/000032018723000039/nke-20230531.htm

Tighe, D. (2023, August 15).  Nike's revenue share of U.S. and non-U.S. markets from the fiscal years of 2016 to 2023. Retrieved from Statista.com: https://www-statista-com.ezproxy.umgc.edu/statistics/888658/revenue-share-of-nike-worldwide-by-region/

Tighe, D. (2024, February 21).  Brand value of the sports company adidas worldwide from 2016 to 2023. Retrieved from Statista.com: https://www-statista-com.ezproxy.umgc.edu/statistics/632260/adidas-brand-value/

Tighe, D. (2024, February 06).  Brand value of the sports company Nike worldwide from 2016 to 2024. Retrieved from Statista.com: https://www-statista-com.ezproxy.umgc.edu/statistics/632210/nike-brand-value/

UMGC. (2024).  Brand Equity. Retrieved from UMGC.edu: https://leocontent.umgc.edu/content/scor/uncurated/mba/2218-mba640/learning-topic-list/branding-elements.html?ou=927837

Wu, G. (2022). The brand analysis of Nike based on its emotional branding and marketing strategies.  BCP Business & Management, 19, 278-284. doi:10.54691/bcpbm.v19i.816

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Aniko Post:

Project 2: Branding Discussion 

Branding elements serve as the cornerstone of a branding strategy, helping to differentiate a brand from its competitors. Several key elements play a crucial role in setting a brand apart, including brand personality, brand image, brand identity, brand differentiation, brand positioning, brand communication, brand loyalty, and brand equity ( Branding elements, n.d.).

This discussion defines the topic of brand equity and its significance in the branding tactics of Slate, Inc.'s rivals, Nike and Adidas. Brand equity is the added value that a brand brings to a product beyond its practical advantages. This value gives companies a competitive edge, as consumers are willing to pay a premium for a particular brand over another, despite similar practical benefits (Branding elements, n.d.). When consumers recognize a brand and associate it with positive, distinct, and enduring characteristics, the brand has attained equity. As a result, comprehending brand equity is critical since it offers direction for marketing approaches and techniques, as well as assists managers in making informed decisions (Keller, 1993).

Nike

Upon examining the branding tactics of Slate, Inc.'s competitors, it is evident that Nike has effectively established a robust brand by fulfilling the key components of brand equity, which include brand loyalty, brand awareness, brand associations, and perceived quality. Nike has excelled in each aspect of brand equity by utilizing strategic marketing messages and delivering high-quality products (Goudreau, 2018).

Regarding brand loyalty, Nike has cultivated a devoted customer base by inspiring them and promoting a particular lifestyle. Their "Just Do It" slogan has played a significant role in establishing a personal connection between consumers and the brand. It is a memorable phrase that evokes emotions and suggests something beyond its literal meaning, allowing consumers to connect with it in their own unique way. Furthermore, Nike's iconic "swoosh" logo has significantly increased brand awareness. The logo is widely recognized all over the world, making it easier for people to identify and associate it with Nike. In addition, Nike has also effectively created positive brand associations through celebrity endorsements, which has helped differentiate the brand and cultivate a favorable attitude towards it (Goudreau, 2018).

Finally, Nike is recognized for its dedication to innovation and collaboration in addressing environmental issues and promoting the future of sports. The brand is committed to lessening its impact on the environment by focusing on the areas that matter most. Nike is successfully implementing sustainable product solutions and utilizing environmentally friendly materials, emphasizing better chemistry and creating products that are easy to refurbish or recycle. The company is also pioneering new methods to reduce its impact along the entire value chain. In the fiscal year of 2023, Nike achieved significant progress in key areas such as carbon, waste, water, and chemistry. Notable accomplishments include a 69% absolute reduction in greenhouse gases from their facilities, as well as a 100% landfill diversion rate for Tier 1 manufacturing waste ( Moving Together – FY23 Nike, Inc. Impact Report, n.d.)

Adidas

Adidas is another competitor of Slate, Inc. According to Clarisa et al. (2023), Adidas is widely recognized as one of the top sportswear brands in the world. Renowned for producing high-performing products, the brand has earned a positive reputation among customers. Adidas shoes and sneakers, in particular, are a favorite among consumers and have established the brand as a household name. The company's commitment to maintaining product quality has undoubtedly contributed to its strong brand equity and customer loyalty.

Adidas prides itself on providing a vast selection of top-notch products that prioritize consumer safety, fostering a sense of trust and satisfaction with its loyal customer base. In 2022, Adidas has taken its commitment to sustainability a step further by expanding its 'Made to be Remade' collection, which features new garments made with innovative technology from Finland's 'Infinited Fiber Company.' For instance, the Adidas hoodie's fabric comprises at least 30% Spinnova fibers derived from wood pulp. Additionally, Adidas has launched its first ever shoes with a transparent carbon footprint for their consumers. The Supernova 2 model boasts an 11% lower carbon footprint than its predecessors, while the Parley x Adizero emits roughly 40% fewer CO2e emissions, resulting in a total carbon footprint of 3.5 kg CO2e per pair ( Products and Partnerships - Adidas Annual Report 2022, n.d.)

In summary, drawing inspiration from the marketing strategies of Nike and Adidas, Slate, Inc. can learn how to better connect with its target audience. By paying attention to consumer preferences and delivering the features they value most, Slate can establish a powerful brand identity. To achieve this, Slate must establish personal connections with consumers, enlist celebrity endorsements, and compete effectively in the marketplace. In addition, to safeguard and strengthen its brand reputation, Slate can take cues from Nike and Adidas by crafting products that reflect consumer demands for affordability, quality, image, and sustainability. By embracing digital marketing, e-commerce channels, and social media, Slate can further amplify its brand equity and broaden its reach to new customers.

References

Branding elements (n.d.). Document posted in University of Maryland Global Campus MBA 640 9046 online classroom, archived at:  https://leocontent.umgc.edu/content/scor/uncurated/mba/2218-mba640/learning-topic-list/branding-elements.html?ou=927837

Clarisa, M. I., Ellitan, L., & Kristiyanto, V. S. (2023). The influence of brand equity on brand loyalty of Adidas shoes mediated by customer.  Journal of Entrepreneurship and Business,  4(2), 103–113.  https://doi.org/10.24123/jeb.v4i2.5483

Goudreau, E. (2018). How brand equity has kept Nike on top.  Medium.  https://medium.com/@emgoudre/how-brand-equity-has-kept-nike-on-top-3f4ee0814d60#:~:text=Brand%20equity%20is%20a%20multidimensional,brand%20associations%20and%20perceived%20quality.

Keller, K. L. (1993). Conceptualizing, measuring, managing customer-based brand equity.  Journal of Marketing, 57(1), 1–22.

Moving Together – FY23 Nike, Inc. Impact Report. (n.d.).  https://media.about.nike.com/files/676a010f-56af-416c-addd-6ca4d83c098e/FY23_Nike_Impact_Report.pdf?download=inline

Products and Partnerships - adidas Annual Report 2022. (n.d.). Adidas Annual Report 2022.  https://report.adidas-group.com/2022/en/at-a-glance/highlights-2022/products-and-partnerships.html