Nike and Adidas have also been the top sponsors in the sports industry. Nike promotes its products by sponsorship agreements with celebrity athletes, professional teams, and college athletic teams. In contrast, Adidas sponsors professional soccer, tennis, and general athletics - mostly with clothing. In terms of market focus, U.S. retAdidas, because of its style, design and promotions uses skimming prices as well as competitive pricing. For run of the mill products, Adidas uses competitive pricing keeping in mind competitors like Nike, Reebok and Puma. But for products which are newly introduced in the market and are uniquely designed, Adidas uses skimming price.
Apparel’s of Adidas constantly use skimming price and are higher priced due to brand equity of Adidas in the apparel’s market. The target customer for Adidas is the upper middle class as well as high end customers. Adidas never uses penetrative pricing because that will affect the brand equity of Adidas. In fact, the higher price point helps in the price quality approach and psychologically, customers think that a higher price will mean better quality as well. Thus, Adidas rarely drops its prices
Thoroughly determined the most effective advertising medium for a company in the selected product category. Thoroughly supported your response with two (2) examples of the effectiveness of the chosen medium.
Abstract
In this paper I have researched two sports apparel companies within the selected product category. I will discuss the types of marketing, pricing, and consumer-oriented promotional strategies that these leading companies within the product group use. I will also compare and contrast the promotional strategies used by these two companies for a similar product.
Thoroughly compared and contrasted the promotional strategies used by two (2) different companies for a similar product within the category that you selected.
The two companies that I have chosen to...