In modern era marketing communication it’s all about hitting back to consumers with intuitive campaigns and advertisement that can revive brand image and increase brand retention in consumer head that can help generate a meaning full sales volume. Hence, marketers at Nike and Adidas meet these challenges with variety of tools and technique, celebrity endorsement is one among many used by them.
The two rival giants Nike and Adidas invest heavily on their respective marketing campaigns showcasing wide range of their brand collections and labels through various physical activities. According to Euromonitor International financing marketing activities remains core to both brands existence but doing it rightly to meet the objectives remains high on strategic note. The list of Nike highly paid celebrity endorsers are depicted in the picture.
Michael Jordan might have retired from the sport but has remained key Nikes highly paid endorser at $60 Million, but he is worth for every penny paid by the company as his Signature Shoes generates one of the highest sales volumes for Nike as illustrated in ROI section. According to therichest.com (2014) Lebron James is another key note endorser for Nike who signed him in to a seven year out from high school in 2003 with $90 million deal. James is said to earn about $20million per Annum and in return his signature shoes generates $30 Billion in sales. Lebron mains highly popular among the Kids and his signature shoes bring high volumes in the kid’s category as explained in (forbes.com, 2014).
It has been years to the retirement of Michael Jordan but such is his creditability and endorsing image that Nike’s Jordan Brand value accounted at $2.6 Billion with an increase of 17%. Jordan market share accounted at 58% in year 2014 from (reuters.com, 2014). While on the other hand Lebron James accounts as a most value celebrity endorser in current era playing sporting stars with annual earnings estimated at $44 million for him. His deal with Nike reaps $340 million worth sales under James signature shoes category, that have risen by 13% from the preceding years as mentioned in SportScaninfo.com (2014).
To compare with other endorses Lebron signature shoes reaps double the revenue from second best seller on the list Kevin Durant. Further Kobe Bryant ranks third on the list for sales of signatures shoes during 2014 with the highest annual increase in sales number, that rose from $50 million to $105 increasing by almost more than 50% even though Bryant had missed two seasons due to injuries from (forbes.com, 2014).
According to BBC.com (2014) Football has a vast global reach and provides brands with opportunity to far spread their brand reach by associating themselves with the sport. This can be witnessed by evaluating Nike and Adidas market association with the sport. They invest large sums of money sponsoring teams in various football leagues enabling them cater to global audience. This allows them to increase brand awareness and sales for football goods and apparels. According to statistic from (BBC.com, 2014) news report Nike supplies shirts to about 26 clubs in comparison to Adidas of 18 only. But it’s important to highlight that major chunk of sales come from Premier League teams accounting for about sales of five millions shirts. Whereas in European the big five leagues accounted for sales of thirteen million as depict in the pictorial statistics below. Adidas being able to generate sales of £108 million in comparison to Nike £100million from the European top club deals.
According to fashionunited.co.uk (2014) Germany based retailer Adidas, according to Peter Walshe, director of Global Brandz, thrives upon one of its major weapon against rival brands that is their powerful communication and marketing strategy. He believes the ways Adidas and Nike are different from each other are far more than just the contrast in profits and brand size. Adidas' marketing campaigns are imperative contribution to the uniqueness of their brand identity, ensuring their future success. He further elaborates the significance of differentiating from rival brands, by taking steps unique and different from competitors. Adidas has made this possible by directing a specified fund towards their product segmentation strategy which focuses on their fashion and lifestyle sections. These divisions, including Adidas Originals and Adidas Neo, specially target the youth and teenagers making them the prime segment of the brand. With the launch of Fall Winter collection 2014, Adidas Neo features Selena Gomez as their brand endorser and guest-designer, hence extending the label. By the extension of Adidas Neo, Adidas has taken a solid step into the teenage market. Adidas Neo main target are the style, fashion and trend-adopting teenagers in contrast to those preferring sports-performance. Having a lower price comparatively it positions itself among the fashion brands with likes of H&M. With the whole teenage and youth segment to cater, Adidas will venture its campaigns through digital marketing media and social media, as these mediums are significant for brand support in today's' fast tech world extracted from (fashionunited.co.uk, 2014).
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