Brand management, ex. Fifa 2014 Nike/Adidas

It is impressive how strong brand equity became for well known brands last decades and how greatly it influences on consumers' choices.

Brand equity may increase market share, profit margin, consumers'  recognition of logo, consumers' perception of quality and other relevant brand values.

It is not an easy task to create brand equity. It requires strategic investments in channels of communication and market education. The feedback of hard research does not come directly, it shows up over time and bring return on investment.

Nowadays building a brand equity is important and let's say mandatory, if the company wants to be successful and competitive.  The proven fact is when customers believe in a brand, they are ready to pay even a premium price in order to get it. Every part of the product should be valued and authentic, name, logo, image, packaging, advertising. It should provide with quality, performance and, depending on the product, with other dimensions of value, which can influence consumers' choice among competing products.

Let's have a look on the example of significant side by side walk during FIFA World Cup in Brazil 2014.

http://www.dailymotion.com/video/x1nn5ie_brand-equity-battlefield-brazil-nike-vs-adidas_news

Adidas has been historically a front runner of football, but soccer's brand Nike is catching up quickly. Nike Brand Director explains that this event is a chance for Nike to reinforce their position as a leader of football brand. Both brands launched new knitted boots but with unimportant difference. It means that sales for average customer will be based on the fact which stars wear them on.

In order to bring brand awareness and be on the top of consumers' minds both brands invested millions of dollars. Taking an example of Nike's cooperation with Tiger Woods, annual sales for Nike Golf have exceeded to about $500 million dollars with an estimated 24% growth per a year in the first five years of agreement. 

All in all the challenge is not only in building a powerful brand equity, but also on sustaining the loyalty for years. 

http://en.wikipedia.org/wiki/Brand_equity

http://www.dailymotion.com/video/x1nn5ie_brand-equity-battlefield-brazil-nike-vs-adidas_news
http://www.ukessays.com/essays/marketing/brand-equity-case-study-nike-marketing-essay.php

Irina Kalashnikova