Differentiation and touch points for value creation.

Brands use differentiation strategy in order to gain a bigger market share. It is important to get remembered, to be remarkable, different from the competitors. Adidas and Nike, two brands that are very often compared need to be chosen by the customer and to be so they need to find this one unique detail, a value for a customer that would differ them from the brand that offers the same product for the same price.

What are the differentiation strategies of Nike and Adidas?

First of all, let's see why Adidas and Nike are considered as main rivals on the sportswear market. How did they gain this love and customers' loyalty and what makes them special? It's a lot about their marketing approach.

Both brands are represented a lot in a professional sport world: soccer jerseys, basketball uniform, sport equipment, sponsorship, etc. Nike and Adidas are often associated to beloved atheletes and sport teams (e.g. Messi vs. Ronaldo; FC Barcelona vs. Real Madrid)

Both of the brands have a very strong social network marketing activity. For example, Nike has their Facebook and Twitter pages for the Nike itself as well as for every branches of the company. Adidas maintain their Facebook and Twitter pages very carefully (1-3 fb posts and 7-10 tweets daily).

Both brands create this amazing sport world and maintain close relationships with their customers, gaining their loyalty and raising their interest to their products. But this competing brands have very different approaches, differentiation strategies. Let's see.

To follow successfully the differentiation strategy Nike decided to focus on investing in their R&D department: they focus on individual benefits such as newest technology of producing clothes that let the skin breathe, footwear specific structure allowing to avoid or reduce injury and get the maximum comfort, new electronic devices helping people to stay healthy and active. As a result Nike's products have become very loved not only by a standart buyer but also by professional athletes. Their Leader R&D strategy has helped them a lot in achieving their differentiation proposing a product of quality for an affordable price. The advanced R&D strategy has been started by Nike a while ago, in the end of 1970s when they introduced a new air cushioning system for their footwear. Since then developing this project and creating new ones Nike has strenghtened its position of the leader in R&D in rhe sportswear industry

The other thing that makes Nike a customer's beloved brand is their personal approach, their emotional marketing we talked about yearlier. Focusing on increasing the customer's confidence and inspire them to follow healthy lifestyle and express themselves in sport.

Logical conclusion would be to remind Nike's mission: "To bring inspirationa and innovation to every athlete in the world". And by the word "athlet" Nike means "If you have a body, you're an athlet". 

What about Adidas differentiation strategy, what is this brand focusing on? First of all it's worth to say that Adidas is very focused on winning. Messages this brand tries to deliver to the customer are all about being the best, being a leader. Not surprising, Adidas mission is "To be the leading sport brand in the world". 

Adidas is also very focused on maximize the visibility of the brand, especially when it comes to the worlwide broadcasted sport events such as World Cup and Olympic Games: sport equipment, uniform, sponsorship. Even though Nike is also participates a lot in such kind of sports events, Adidas looks a bit more aggressive. Adidas uses their sponsor line as a brand communication with their consumers.

As for the positioning and influence on a customer Adidas is seeking to have on its customers. It's not so touching as Nike's but it appeals to other emotions of the customer: their competitiveness. And this move works as such feature as competitiveness often becomes very important for every amator and professional athletes. "Play to win!", "Be a leader!" sounds a lot like Adidas 

Both powerful brands Adidas and Nike and very loved and valued by sportswear buyers. These are probably first two brands that come to mind while thinking of the sportswear industry in general. The value they create, inspiration and motivation are strongly appreciated by their customers and this is how they keep performing succeddfully on the market.

Alexandra Tsarkova

http://www.lawyerment.com/library/articles/Business/Marketing_Your_Business/Branding/1318.htm
http://macias19.wordpress.com/2014/09/15/differentiation-adidas-vs-nike/
http://www.slideshare.net/singhalshubham/marketing-assignment-on-analysis-of-adidas