The next aspect of Nikes positioning is associated points of parity POP Nike

The next aspect of nikes positioning is associated

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The next aspect of Nike’s positioning is associated points of parity (POP). Nike has lines of athletic shoes, apparel and gear similar to its competitors. Nike being the leader in its category, was the first to introduce the idea of celebrity endorsements with its successful campaign with Michael Jordan. After Nike’s successes with Jordan and other athletes/celebrities, Adidas followed suit with endorsements with such athletes/celebrities as Kanye West and David Beckham. Under Armour signed endorsement contracts with Stephen Curry and Tom Brady. Soon this point-of-difference became a POP with almost all major brands of sports apparel endorsing famous athletes/celebrities. Another POD initiated by Nike was NikeiD, customizable shoes, the ability to design your own pair of running shoes. Adidas and Under Armour as well as some of Nike’s other competitors now offer customized shoes. Nike’s PODs include its brand performance associations being high quality, innovative performance shoes and apparel designedwith new technology such as Vapormax, Airmax and Hyper Adapt, or patented materials such as dri-FIT
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or flyknit at a premium price. Nike’s brand imagery associations are also differences Nike emphasizes in marketing its products for the rugged top athlete, the person who “just does it”. CompetitorsWhile Nike surpasses its closest rivals earning approximately $30 billion in revenue in 2016, Adidas ($22.5 billion) and Under Armour ($3.96 billion), the growing list of competitors in the sports apparel industry still present key challenges to Nike’s brand. (Lutz, 2017) Nike’s closest competitor is Adidas, theGerman brand founded in 1949, in market share and revenue. In 2016, it earned $22.5 billion in revenue. Adidas’ three striped trademark logo is described as the “badge of sport” and states it is the sharp end of their spear, seen on innovative products, as well as with the world’s best athletes, teams and events. Similar to Nike, it has adopted various growth strategies to capture a larger market share, such as product launches, partnerships and acquisitions. In July 2014, Adidas entered into partnership with Manchester United to promote its products globally. (Bisht, 2005) Under Armour, an American sports apparel company founded in 1996 by college football player, Kevin Plank, makes performance wear for sports and the gym. In fiscal 2016, sales surged to $4.8 billion, up 22%. Under Armour generates about two-thirds of its sales through wholesale businesses (Vault, 2017). Li Ning, a Chinese sports apparel competitor founded in 1989, was specifically listed on Nike’s 2015 fiscal report. The brand’s 2016 financial report listed revenue at approximately $1.21 billion. The brand produces shoes and sportswear, largely for the Chinese market. The research I conducted revealed that of the 23 survey participants, only one participant had any awareness of the brand. In January 2011, Li Ning entered into a partnership with Chicago-based Acquity Group to expand its U.S. distribution and brand awareness. (Burkitt, 2011) The
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  • Spring '14
  • Redden,JosephP
  • Marketing

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