A Study on The Brand Personality Dimension
SUBMITTED BY Ajay Pratap Verma (18003) Ravi Kant Ranjan Vineet Singh
(18037) (18058)
UNDER THE ESTEEMED GUIDANCE OF Prof. S. Saibaba Designation: Asst. Professor
SIVA SIVANI INSTITUTE OF MANAGEMENT SECUNDERABAD (2009-11)
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Contents Chapter 1.Introduction 1.Introduction
1.1 Scope of the Study 1.2 Objectives of study 1.3 Practical implications 1.4Selection of brands 1.5 company profile 1.6 Brief Analysis of Industry 1.7 Brief definition of Industry Trends in the Industry Market Analysis 1.8 Brief History of Company History of Adidas Adidas Operations in India History of Nike Nike Operations in India Adidas Product Portfolio Nike Product Portfolio History of the Brands Brand History Adidas Brand History of Nike Indian Footwear Industry War Between Nike And Adidas Adidas Competitors Nike Competitors SWOT Analysis of Nike and Adidas Chapter 2. Review of literature
2.1 Brand equity Brand image The creation of brand personality Consumer-brand relationships Types of relationships Perspectives on brand personality 2.2 Measuring brand personality 2.3 Role of advertising in creating Brand Personality 2
Chapter 3. Conceptual Study
3.1 Brand personality Chapter 4. Research Methodology Methodology
4.1Research Design 4.2 Methods of data collection Primary Data Secondary Data 4.3 Limitations of study Chapter-5. Data Analysis
5.1 Demographical Analysis 5.2Marital Status wise Analysis of Sample 5.3Age wise Analysis of Sample 5.4Occupation wise Analysis of Sample 5.4Comparative Analysis of Brand’s Characteristic Sincerity Excitement Competent Sophistication Ruggedness Cross tabulation analysis: Respondents perception about Brand personality personality attributes attributes of Nike and Adidas Chapter-6
6.1 Results 6.2Conclusion: 6.3 Questionnaire References
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Chapter-1 1.0 Introduction: Introduction: This This study study has investig investigated ated the relation relationship ship between between brand brand persona personalit lity y and consume consumer r perc percept eptio ion n about about brand. brand. Th Thee conce conceptu ptual al model model is based based on the the hypot hypothe hesis sis that that brand brand personality may nurture specific consumer-brand relationships and that these relationships may influence the quality of the ties that consumers develop with brands. An instrument from intimate interpersonal relationships was used to measure consumer-brand relationships. An analysis conducted on a sample of 100 consumer-brand relationships, involving two highly known brands of different product categories, gave support to the theory. The research offers offers two two signif signific icant ant contr contrib ibuti utions ons by: by: 1) Empha Emphasiz sizin ing g the role role of consum consumerer-bra brand nd relationship in understanding multi-brand, symbolic consumption and 2) Offering a holistic perspective in the understanding of brand personality. 1.1Scope of the Study:
With With the the advent advent of custom customer er orien oriente ted d mark marketi eting, ng, there there is incre increasi asing ng empha emphasi siss on the consumer behaviour. The need of the present study is to conceptualize and empirically investig investigate ate the impact of brand brand personal personality ity on some of the key variabl variables es in consume consumer r beha behavio viour. ur. Brand Brand differ different entiat iatio ion n is now now becom becoming ing an impor importa tant nt tactic tactic for combat combating ing competition competition in the hostile marketplace. A viable solution for establishing establishing the distinctiveness distinctiveness of a brand is through brand personality. Attaching personalities to brands contributes to a differentiating brand identity, which can make brands more desirable to the consumer. The present study is proposed to conduct in Hyderabad. It aims to explore the interrelationships among brand trust, brand affect, and brand loyalty with an emphasis on the predictive role played by the construct of brand personality. 1.2 Objectives of study: •
To measure Brand Personality of Nike and Adidas 4
•
To study the personal, demographic, and rational profile of Nike and Adidas’s product users
1.3 Practical implications:
The findings will help Nike and Adidas in formulating effective effective product design, positioning, positioning, and promotion strategies. 1.4 Selection of brands:
Since the focus of the study is on brand personality, personality, we included brands that were dominant in the market, known to consumers, and that has a distinct image in the market. We did not include brands that intuitively appear to be obscure or bland in terms of personality. Since personality perceptions may vary by product and by brand, we chosen to include close compet competito itors rs in order order to compar comparee the the diffe differe rence ncess in perso persona nali lity ty.. With With these these facto factors rs in consideration, consideration, one pair of brands from the FMCG sector and another pair of brands from the footwear category were selected for study. Specifically, Nike and Adidas represent the footwear segment. 1.5 Company Profile at a Glance: Company Name
Adidas
Nike
Type
Public
Public
Industry
Clothing and consumer goods manufacture
Sportswear & Sports equipment
Founded
1 92 4
19 64
Founders
Adolf Dassler
William J. “Bill Bowerman, Philip H. Knight
Headquaters
Herzogenaurauch, Germany
Washington County, US
Area Served
Worldwide
Worldwide
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Key People
Herbert Hanier (CEO), Erich Stamminger, Igor Landau
Bob McDonald
Products
Footwear, Sportswear, Sports equipment, Toiletries etc.
Athletic shoes, Apparel, Sports equipment, Accessories
US$ 10.38 Billion
US$ 19.2 Billion
Logo
Net Income (2009)
Employees
39,600 30,200
Website
adidas-group.com
nike.com
1.6 Brief Analysis of Industry:
Sport is an integral part of modern contemporary society. Sport has always been associated with with disci discipl plin ine, e, dedi dedica cati tion on and and perf perfec ecti tion on and and henc hencee spor sportsm tsmen en have have alwa always ys been been respected, across borders, religions and races. Sportsmen, professional or amateur, need quality quality gear, specific to their game, to be able to compete compete better. It is this market that the two conglomerates, the subjects of our study, cater to. Both these companies started off as footwear footwear makers for the modern athlete, their innovative designs and technology technology creating waves. But now these firms have diversified. They compete on the broader platform of footwear, apparel, accessories and equipment. Today they are among the worlds top corporations, with a worldwide presence. Our study will concent rate on the primary product these two firms make Athletic Footwear. 6
We will compare their Brand personality image among cons umers. 1.7 Brief definition of Industry: Trends in the Industry:
The latest picture of the industry has not been as rosy as it has been earlier. At this stage, with the big four, Nike, Adidas, Reebok and Puma and the others such as Converse and New Balance, the industry is experiencing hyper competition. The reasons for this being that the demand for the products products has been decreasing decreasing and at the same time, there has been an increase in the popularity of alternate footwear. This inadvertently has resulted in decreasing margins and the quest for new markets and innovation to get the profits up again. The worries seem to have ended, at least momentarily with the emergence of China, Turkey, Brazil and Russia as huge untapped markets for their products. Of these, China is the biggest bet for the big guns. Why? China’s huge middle class is rising and the country’s ever increasing wealth serve as a classic ingredient for market ignition. Both Nike and Adidas realized this early and invested heavily in advertising during the2008 Beijing Beijing Olympics. Olympics. Adidas partnered partnered the games and Nike, as always always focused on individual individual player and team endorsements. The Chinese marker saw huge residual sales after the Olympics. Nike, for example, saw its sales increase 50 pc in China in2008 on a currency neutral neutral basis and again again a 50 pc increase in sales in Q12009. Turkey and Russia, similarly, similarly, had a25 pc increase increase in sales in2008 in2008 and another30 another30 pc in Q1 2009. 200 9. Brazil alone had a 30 pc increase in Q1 2009. 2009. The opening up of these markets has provided respite to the industry and they are making good us e of it. Already most of these firms use South Asia as their manufacturing base, to make use of the cheaper labor, in particular. Now they have a greater incentive to move to South Asia as their market seems to be shifting here too.
MARKET ANALYSIS:
India has a large market for footwear and the brand loyalty is also growing. India is ranked the 4th largest economy by GDP (in purchasing power parity term) and is expected to rank 3rd during 2010, just being behind USA & China in footwear industry both production and consumption. consumption. India’s GDP for footwear grew at the rate of9.4% for the year 2008 -2009 the country’s GDP stood at Rs 54 lakh crore, translating into a per capita income of Rs 48,450, thus resulting in a compounded annual per capita income growth rate of9.25 per cent during 1951-2009. If we analyze the consumption pattern of 70 different economies and segment them into low-income, middle-income and high-income brackets, we will observe that consumer spending spending on food, beverages beverages and clothing clothing & footwear footwear account for 47 per cent,34 cent,34 per cent and22 per cent of their total consumer expenditures, ex penditures, respectively 7
India is standing on the threshold of a retail revolution and witnessing fast changing retail landscape, with footwear market is set to experience phenomenal growth. India is the major source for supplying medium and low priced footwear and most of the manufacturers, who have outsourced their production to China, are planning to outsource it to India. Some of the footwear industry who has turned to India are Adidas, Nike and Puma.
1.8 Brief History of Company History of Adidas Adidas was formally registered registered on 18 August 1949 as Adidas Adidas AG, by Adolf Adi Dassler, Dassler, whose name formed the company’s title. Adolf Dassler was born in Bavaria and started making making sports shoes in his mother’s kitchen after he returned returned from World War 1. He was joined in 1924 by his brother Rudolf Dassler and using their mother’s laundry as their manufacturing base, they began operations. Famously, during the 1936 Olympics, Adi Dassler Dassler drove to Munich and persuaded Olympic Olympic gold medal list Jesse Owens to wear his shoes which established his reputation among the sporting world and gave him lots of contracts and financial success. After the Second World War, though, the brothers split up and Rudolf Dassler went on to form his own company, which later became Puma. After the death of Horst Dassler, Adolf’s son, the company went through some troubled times. It was then bought by French industrialist Bernard Tapie and subsequently by Robert Louis-Dreyfus. In2001 Herbert Hainer took over as CEO of Adidas and has been leading the conglomerate ever since. A long line of innovative products and successes later, Adidas is one of the world’s largest corporate, with a product line to envy and worth millions of dollars. The trademark three stripes and the slogan ‘Impossible is Nothing’ are Adidas’ identity, an image it spends a fortune to uphold. In2005 Adidas acquired British giant Reebok to further strengthen its market and customer base.
Adidas Operations in India:
Though Adidas entered into a license agreement with Bata in 1989, it formally began operat operation ionss only only in 199 1996 6 with with the establ establishm ishment ent nt of Adidas Adidas India India Market Marketing ing Privat Privatee Limited. In 1998 Adidas pulled a masterstroke, they roped in Sachin Tendulkar as their brand ambassador which proved a sound business decision. In 1999, keeping in mind the price conscious Indian consumer, Adidas launched its cheapest ever shoes in India. In2004, Adidas India launched the advantage Addidas campaign, which increased sales by30%. In 2005, Andreas Gellner took over as Managing Director for Adidas India. Adidas sees India as a huge growth market and according to Gellner, Adidas will invest huge sums to take on its competitors here. History of Nike: 8
Bill Bowerman Bowerman and Philip Philip Knight started the company we know today as Nike in 1 962. It was originally known as Blue Ribbon Sports. Bowerman was Knight’s track and field coach at the University of Oregon. Philip Knight went on to study at Stanford where he published published a paper on ending the German domination domination in the athletic footwear footwear industry. He travelled to Japan and entered into an agreement with the Onitsuka Tiger Company and became their sole distributor in the US. Bowerman and Knight received their first shipment of200 shoes and sold them at local meets to make a good profit. Bowerman, who had earlier earlier designed designed shoes for his athletes, athletes, joined hands with Tiger to make the famous Tiger Cortez shoes, which became worldwide bestsellers and launched the business. In 1971, Knight and Bowerman began to make their own shoes under the brand name of Nike, named after the Greek goddess of victory and bearing the Nike swoosh, which is one of the companys biggest biggest streng strengths ths today. today. In 1972, 1972, Blue Blue Ribbon Ribbon Sports Sports parted parted ways ways with with Onitsuka Tiger and became Nike Inc. Today Nike is the world leader in athletic footwear, with market shares exceeding the other major players by significant margins. The Swoosh and Just Do It slogan are huge brand identities. Nike is a truly global player and seen as a model for innovation driven growth. Nike Operations in India:
Nike has been present in India for over a decade through its seven year license agreement agreement with Sierra enterprises, enterprises, which didn’t help much in the bigger scheme of things as Reebok and Adidas came to the country with fully owned subsidiaries. This explains why the global global market market leader leader is still still lagging lagging behind behind in India. India. In2004, In2004, instead instead of renewi renewing ng its franchise, it became a subsidiary and started operating with more freedom and capital. The result was that the market share rose and Nike became a force to contend with in the Indian market. Probably the biggest sign of the change in guard was the heavy investment in Cricket by Nike, culminating in its bagging of the Indian cricket team’s team ’s jersey rights, worth Rs200 Crores. Nike then launched its special range of cricket shoes and sponsored the Indian football football team as well. Though Though Nike has entered entered the market in earnest very late, the world no.1 will stop at nothing to gain lost momentum in the Indian subcontinent.
Flagship Products, Major Product Lines and Recent Forays Adidas Product Portfolio:
Adidas manufactures running shoes under its adiStar and Supernova brands, which include the adistar Ride, the adiStar Control 5, the Supernova Sequence and the Supernova Glide. The famous Copa Mundial football boot is Adidass premier football boot, which later developed into the Predator range. For basketball, Adidas is most famous for its Superstar and Pro Model shoes. Beside these Adidas makes jerseys for national and domestic cricket, football, rugby, and tennis and lacrosse players with a separate line for gymnasts. Adidas has recently entered the sports lifestyle market, following on the heels of Puma and Reebok Reebok and has launched launched watches watches,, eyewea eyewearr and most recently recently,, deodoran deodorants, ts, aftersha aftershaves, ves, perfumes and lotions.
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Copal Mundial
Nike Product Portfolio:
Nike’s first products were track running shoes which came under the name Nike Air Max, followed recently by the Nike 6.0, Nike Nyx and the Nike SB skateboarding shoes. Recently, Nike launched special cricket shoes for bowlers and batsmen called the Nike Air Zoom Yorker and the Air Zoom Opener. But its bestselling line still remains the legendary Air Jordan basketball shoes, named after Michael Jordan. Air Jordan still contributes more than 30% of Nike’s shoe sales. Like Adidas, Nike too entered the sports apparel and equipment market and makes jerseys and specialist apparel for various sports. Recently Nike teamed up with Apple to launch the Nike+ range, which can monitor a runner’s performance through a radio device linked to Apple’s ipod.
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But Nike’s most recent product is the o ne making waves across the sports world. Called the Lunar Glide, Nike is using Flywire (A thread developed by Nike, composed of Vectran, a liquid crystal polymer) and Lunarlite Foam to make the world’s lightest shoes. Advertised using using the slogan slogan “Actua “Actually lly,, it is Rocket Rocket Scienc Science”, e”, it reiter reiterate atess Nike’s Nike’s commit commitmen mentt to technology.
Solle Collector
History Hist ory of o f the Brand B randss: Brand History Adidas:
The company’s clothing and shoe logo bear the trademark three stripes, which is the company’s corporate logo. Adidas also has a trefoil sign that it uses only on heritage products since 1972. The three stripes logo represents performance and the future of the Adidas Branding identity. It has become synonymous with Adidas and its dedication to producing high quality athletic product s to make athletes perform better. When Adidas entered the marketplace some 50 years ago, its focus was to produce shoes crafted specifically for soccer and running. The new millennium has since brought about an Adidas renaissance; the brand has steadily regained regained market share over the past five years to become the world's world's number two athletic shoe company (behind Nike). How did it go about repositioning to once again be among the coolest of kicks? 11
Adidas claims that, "the brand values of the company’s authenticity, inspiration, honesty and commitment are derived from sport." Historically, this sensibility was demonstrated thro through ugh earl early y and and cont contin inue ued d invol involve veme ment nt with with Olym Olympi picc athl athlet etes, es, as well well as acti active ve sponsorship sponsorship of major global sporting sporting events like the World Cup. Adidas’s rapid growth in Asia, where revenue rose by 15 percent to US$878M last year, may be further propelled in Japan and Korea when those two nations host the World Cup this year s an event which is expected to garner2.5M spectators and o ne billion TV viewers worldwide. However, the key to revitalized success seems to lie in the considerable endorsement deals Adidas has developed with world class athletes. Recent sports figures representing Adidas don’t only score high marks in their game s they also score high in their celebrity quotient. British football star David Beckham’s relationship with Adidas has no doubt lent itself well to the brands visibility in the UK. Recently dubbed "Captain of England," Beckham led his team to victory in the2000 FIFA World Cup. With Europe as Adidas’s largest market, exposure exposure like this reflects reflects in the numbers; sales grew seven percent to US$2.7 billion, last year. Reinvention was the key, not only for the Adidass marketing strategy, but also for its product line. Eclectic, individual, 'no-rules' sports such as snowboarding, inline skating and surfing have grown into significant categories. Activities such as golf, hiking and mountain biking, which were seen as lifestyle and leisure activities, are now part of mainstream sports. Increased product offerings in these categories have undoubtedly contributed to a better score for the brand. To keep up with the competition, Adidas generates close to 60 new foot-friendly designs
To keep up with the competition, competition, Adidas generates close to 60 new foot-friendly foot-friendly designs each year. The Adidas credo is to regard shoes as feet, resulting in a product with superior fit and performance capabilities. Tactics have been revised in getting these products out for consum consumpti ption. on. As a result result,, product productss have been been reposi repositio tioned ned in higherhigher-end end and sports sports specialty stores. In2002 Adidas footwear innovation, ClimaCool TM, made its debut. The new technology added breathable materials to the shoe. In July, the Group completed its three-divisional structure for its sore brand, Adidas, and positioned its third division as Adidas Sports Styles. In200 In2004 4 ‘Imposs ‘Impossibl iblee is nothing nothing’’ became became the centra centrall message message of a global global campai campaign gn that that Adidas launched. It refers to the shared attitude with the athletes, of always pushing yourself further, to beat the limits. In September, Adidas & designer Stella McCartney announced their partnership, introducing the Adidas by Stella McCartney collection. On January2006, Adidas announced the acquisition of Reebok LTD. By combining two of the most respected and well-known brands in the worldwide sporting goods industry, the new Group will benefit from a more competitive worldwide platform, well-defined and complementary brand identities, a wider range of products, and a stronger presence across teams, athletes, events and leagues. Adidas continues to prove itself as a brand built to last through a game plan of reinvention. With the recent acquisition of a lifetime partnership with Orlando Magic's Tracy McGrady 12
(basketball) (basketball) and its heavy involvement involvement with200 with200 2 World Cup, it continues to strike savvy deals that capitalize on the star power of young athletes and increase its visibility in the marketplace. It appears that team Adidas has honed its strategy to become a revitalized contender in today’s competitive sporting goods market and is now duly recognized as the sneaker of yesterday and today Brand History of Nike:
Nike positions positions itself as the market leader of sports footwear footwear and uses the greatest greatest athletes and the record of their achievements in advertising. The swoosh logo was developed by Carolyn Davidson in 1971. Together with the Just Do It slogan, the Swoosh logo perfectly expresses the brand and its philosophy. It expresses a high ambition and a will for victory, which is a part of Nike’s brand image and corporate culture. It was only36 years ago that we had a world without Nike, and in that period Nike has gone from the brash newcomer, to the number one mass-market leader. The Nike story begins with the meeting of its co-founders at the University of Oregon. It was here that middle-
Distan Distancece-runn running ing busines businesss student student Phil Phil Knight Knight fell fell under under the tutela tutelage ge of the colleg collegee athletics coach, Bill Bowerman. Nike would go on to grow ou t of the fusion of Bawerman's sporting innovation and Knight's marketing know-how. Even at a very early stage it seemed that Knight had a far-reaching goal, to break the longestablished brand nomination of the U.S. marketed by the then main player, Adidas. In order to achieve this aim, legend has it that Knight and Bowerman each put in $550 to cement cement their their partne partnershi rship, p, and decide decided d to call call their their new company company Blue Blue Ribbon Ribbon Sports Sports (BRS). BRS was basically the American distributor of Onitsuka training shoes . In 1965, after a period of selling Onitsuka shoes from the back of their van at athletic meets, the company grew. The company went from strength to strength, but after heated disagreements between BRS and Onitsuka, the new boss at BRS decided to split from Tiger in 1971 and create their own company manufacturing their own shoes. It is said that Jeff Johnson came with the idea for the new name, deciding to honour the Greek goddess of victory, and thus Nike was born. It was also at this that the fledgling company had to decide on a logo for the brand, and another of the legends that the company managed to create for itself was developed. Nike took off virtually instantly in the United States, and within a year company sales were at almost2 million pairs. In 1981 Nike decided to take ano ther major step, with the U.K. becoming the company's first wholly owned foreign distributorship. However it was in 1985 that Nike really became a major player. It was in this year that it managed to persuade the then little known Chicago Bulls basketball rookie Michael Jordan to endorse his own range of shoes. Even Nike could not have imagined the effect that this single act would have on sales. The new Jordan endorsed range transported Nike and trainers trainers in general to a completely completely new lever of popularity popularity It was after the introduction introduction of 13
the Jordan shoes and mass-marketing that went with them that the "trainer wars" got underway. Each of the brands, desperate to stay one step ahead of the competition, came up with a continuous stream of developments and inventions of technical wizardry. For a while in the late 1980's 1980's Reebok Reebok actually actually overtook Nike to become become the number one player player (at least in terms of sales), but Nike came back strongly with its 'just do it' slogan in 1988, and regained the top spot in terms of market sales- a position they retain to the present day. In2006, Nike entered the cricket market with a 5-year sponsorship of the Indian cricket team for US$43m. Nike and Apple released released the Nike+iPod Nike+iPod sports kit, enabling runners to log and monitor their runs via iTunes and the Nike+ website. In200 In2008, 8, Nike Nike introd introduce uced d shoes shoes featur featuring ing new Flywir Flywiree and Lunarl Lunarlit it e Foam Foam materi materials als.. Flywire is a new technology made up of thin wires of vectran fibers, which are 5 times
stronger than steel and never lose strength. Lunar Foam is a material developed by NASA that gives the shoe excellent shock absorption and a great feel with minimal weight. Back in 1971, the newly created Nike Company was ready to hit the market with its shoes, and a logo to represent the brand was urgently needed. Phil Knight turned to an associate from his teaching life and commissioned graphic-design student Carolyn Davison to work with his new brand. Knight wanted a design that would represent movement. Davidson supplied Knight with a few designs one of which was the initial 'Swoosh' so well known today. Knight was not particular enamoured with any of these designs, but with deadlines to meet the Swoosh was chosen Even though Davidson was initially paid only $35 for her design, the story doesn't end there. In 1983, Knight took Davidson out for lunch and presen ted her with a diamond-encrusted Nike ring, and also an envelope. The envelope contained co ntained Nike Stock. Nike has continuously pushed back the boundaries of trainer design, staying focused under Phil Knight's guidance, and is going to take some dislodging. Indian Footwear Industry:
FOOTWEAR INDUSTRY: •
The Footwear Industry is a significant segment of the Leather Industry in India.
•
India ranks second among the footwear producing countries next to China.
•
•
India produces more of gents footwear while the worlds major production is in ladies footwear. The industry industry is labour labour intensive intensive and is concen concentra trated ted in the small and cottage cottage industry sectors. While leather shoes and uppers are concentrated in large scale units, the sandals and chappals are produced in the household and cottage sector.
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•
The major production centres India are Chennai, Ranipet, Ambur in Tamil Nadu, Mumbai in Maharastra, and Kanpur in U.P. Jalandhar in Punjab, Agra and Delhi. The following table indicates concentration of units in various parts of the country: co untry:
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WAR BETWEEN BET WEEN NIKE NI KE AND ADIDAS AD IDAS :
The problem for Adidas is that, while it's staked out its turf as an official sportswear partner, Nike has more top athletes. They include Swiss tennis ace Roger Federer and Australian track star Craig Mottram, along with old standby basketball legends Kobe Bryant and LeBron James. But Nikes athletes aren’t guaranteed to win games, there is always a risk element associated with their performance. Nike has signed up22 of China's28 s sports federations to outfit most of its athletes. The deal is just one of 40 that Nike signed with various national federations, including the U.S, Germany Germany and Russia, Russia, ensuring that team members will be decked out in Nike gear during play regardless of where they have their individual endorsements. So for many of3,000 athletes in the Adidas stable who will compete in Beijing, donning the three stripes will be limited to the medal stand. During play, they'll be in Nike gear. Nike’s Competitors:
NIKE is one of the most successful manufacturers of athletic footwear, competing with Reebok, Reebok, L.A. Gear and Adidas, as well as with manufacturers manufacturers of casual footwear. footwear. Nike is the world’s No.1 manufacturer and marketer of athletic footwear. Nike stands for success, excellence, high performance, fame etc. •
Adidas
•
Reebok
•
Woodland
•
Red tape
•
Bata Liberty
•
Puma
•
Nike is the official kit sponsor for the Indian cricket team for 5 years. Nike beat Adidas and Puma by bidding highest, US $ 43 million. Adidas Competitors:
The chief com compet petito itors rs of adi adidas das are PU PUMA MA and Nik Nike. e. In Aug August2 ust200 005, 5, the company company announced that it had made a deal to acquire rival Reebok for $3.8 billion. The acquisition would increase its market share and to establish a stronger foothold in the Sports Industry. 16
This merger is indeed a success which has achieved significant sales growth. Merger of Adidas & Reebok complement each other in competing with their competitors, Nike; and is more cost efficient and beneficiary to both brands with Reeboks strong presence in US market and the global recognition of Adidas. •
Nike
•
Red tape
•
Bata
•
Liberty
•
Puma
New balance New balance of Nike Nike enjoys a 47% market share of the domestic footwear industry, with sales of $3.77 billion. Nike has been manufacturing throughout the Asian region for over twenty-five years, and there are over 500,000 people today directly engaged in the production of their products. They utilize an outsourcing strategy, using only subcontractors throughout the globe. Their majority of their output today is produced in factories in China, Indonesia, and Vietnam, but they also have factories in Italy, the Philippines, Taiwan, and South Korea. These These factor factories ies are 100 100% % owned owned by subcont subcontrac ractor tors, s, with with the majori majority ty of their their output output consisting solely of Nike products. Strengths of Nike: •
Nike is a very competitive organization
•
Nike has no factories. It does not tie up cash in buildings and manufacturing workers. This makes a very lean organization Nike is strong at research and development
•
Nike is a global brand. It is the number one sports brand in the World.
•
•
Product Range
•
Capacity for innovation
•
Distribution expertise
•
Single Brand
•
Stars endorsement 17
•
Contract manufacturing
•
Large portfolio of products
Weaknesses of Nike: The organization does have a diversified divers ified range of sports products. However, the • income of the business is still heavily d ependent upon its share of the footwear market. The retail sector is very price sensitive. Nike does have its own retailer in Nike • Town. •
Single Brand
•
Too many stars endorsement
•
Contract manufacturing
•
Spread portfolio of products
•
Reliant on retailers
•
Reduction of target market
New Balance of Adidas:
Adidas is the main competitor for Nike. Adidas currently enjoying the fastest growth of any brand domestically, with a market share of 6% and revenues of $500 million. They have been shielded from bad publicity by the two Goliath’s of the industry, Nike and Reebok, and are reaping the rewards substantially. They have adjusted their manufacturing strategy, from a vertical operation in Germany in the 60’s and 70’s, to an outsourcing focus today throughout Asia. Unlike the big two, they do not have a code of conduct, and their factories are considered to be the worst in the industry. It is just a matter of time before they are exposed, exposed, with an underground swelling of negativity negativity already occurring occurring today. today. In order to avoid the negative effects effects and lost revenues that Nike and Reebok Reebok have received, received, they need to immediately begin to take a proactive stance in regards to the working conditions of their factories.
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5.1 SWOT AnalysisParameters
Adidas
Nike
Strengths
Strong management team and Nike is a globally recognized good corporate strategy for being the number one sportswear brand in the Brand recognition and World. reputation They manufacture high quality at the lowest possible Diversity and variety in price, if prices rise due to products offered price hike then the Strong control over its own production process is made distribution channel cheaper by changing the place of production. Innovative designs in footwear enabling consumers to design their own shoes online
Weaknesses
It uses lunarlite foam and fly wire materials in order to make the manufactured shoes lighter and more
Negative image portrayed by In spite of having diversified poor working conditions in range of sports products, the its overseas factories income of the business is still heavily dependent upon its The direct sale to consumers footwear market. is creating conflicts with its own resellers Online customer service not Constant focal point for "helpful" or easy to find negative criticism by the anti-globalization groups.
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Opportunity
Ne w technology and There is opportunity to innovation to stay on top of develop fashion products. market needs Possibility Possibility of outsourcing outsourcing the There is also the opportunity web deve evelopm opment and e- to develop products such as sport wear, wear, sungla sunglasse ssess and comm commer erce ce to a thir third d part party y sport jewe jewell ller ery. y. Such Such high high value value developer items do tend to have associa iate ted d with with them them,, high high E-commerce will reduce the assoc cost of goods sold thus profits. improving the "bottom line"
Global marketing strategy for emerging countries countries like India Collaborate Collaborate with other online and China. ret retailer lers to offe ffer Adidas das products. Threats
Negative image "sweatshops"
du e
to Nike is exposed to the
international nature of trade. It buys and sells in different Economic Economic downturn in North currencies and so costs and America and Asian Countries margins are not stable over long periods of time.
Increase in the price of The market for sports shoes pro provi vidi ding ng tech techno nolo logi gica caland l garments is very competitive. Competitors are solutions (e-commerce) developing alternative brands Cont Contin inui uing ng chal challe leng nges es in to take away Nike's market share. import/export duties The retail sector is becoming Nike Nike's 's strong strong reputa reputati tion on in price competitive. This the the foot footwe wear ar and and appa appare rell ultimately means that consumer price sensitivity is industry a potential external threat to Thre Th reat atss to free free trad tradee and and Nike. foreign currency fluctuations
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Chapter-2 2.0 Review of literature: 2.1 Brand equity:
The concept of brand equity appeared in the eighties and several definitions were proposed (Aaker 1991; Dyson et al . 1996; Kapferer 1995; Keller 1993). One of the first definitions definitions of brand brand equit equity y was was given given by the Marke Marketi ting ng Scie Science nce Insti Institu tute te (MSI (MSI)) in 198 1988: 8: ‘a set of associations and behaviour of a brand’s consumers, of channels of distribution and the company of the brand, which allows the branded product to achieve volume and profit margins more important than without the brand’s name, and which gives them a sustained, strong strong and diffe differen renti tiat ated ed advan advanta tage ge regar regardin ding g compet competit itors ors’. ’. Besid Besidee purel purely y financ financia iall approaches, studies on brand equity have followed two different directions: 1. Consequences of brand equity: revealed by the preferences (Park and Srinivasan 1994) or choice (Kamakura and Russel 1993) of the consumer. Park and Srinivasan (1994) measure brand equity as the ‘difference ‘difference for the consumer between overall preference for the branded product and the preference due to objective features of the product’. 2. Antecedents Antecedents of brand equity: a set of strong, positive positive and unique associations associations to the brand (Aaker 1991; Keller 1993). Our study will focus on the second approach. Brand associations associations in the consumer’s mind form the perceptual dimension of brand equity (Changeur 1998), in oppositi opposition on to the behaviou behavioural ral dimensi dimension. on. The literat literature ure general generally ly divides divides the perceptu perceptual al dimension of brand equity into two components: brand awareness and brand image (Aaker 1991; Aaker and Keller 1990; Biel 1992; Keller 1993). The first component deals with the presence of the brand in the mind of the consumer (brand recognition and recall). Brand awareness or the attention accorded to the brand refers to the likelihood that the brand’s name comes to mind for the consumer (Keller 1993). It is composed of brand recognition (ability of the consumer to confirm a previous exposure to the brand) and brand recall or memorization (which asks the consumer to remember correctly brands and their attributes). The effects of website exposure on brand awareness will not be analysed in this paper. Instead, we will focus on the effects of exposure on brand image. Brand image:
This second component of brand equity is defined as ‘perceptions about a brand as reflected reflected by the brand associations held in consumer memory’ (Keller 1993). Aaker (1991) defines ten dimens dimension ionss of brand brand image image,, namel namely y produc productt attri attribut butes, es, intang intangibl iblee featu features res,, consum consumer er benefits, relative price, places, moments and forms of utilization, buyers and consumers, stars stars and chara characte cters rs atta attache ched d to the the brand, brand, brand brand person personali ality ty,, produc productt categ category ory and competitors. Keller (1993) theorizes that the quality of a brand’s image depends on the favourab favourable le or unfavour unfavourable able nature nature of that brand’s brand’s associa association tions, s, their their uniquene uniqueness, ss, their their strength, their cohesion and their level of abstraction. These associations constitute in the consumer’s mind the value of the brand. Keller (1993) classifies associations in three groups: brand attributes benefits and attitudes. Brand attributes include at the same time intrinsic indicators (factors connected to the product) and extrinsic indicators (factors not related to the product, product, such as advertis advertising ing investm investments ents,, price, price, etc.). etc.). Benefit Benefitss are also also classif classified ied into three types: functional, experiential and symbolic benefits. Plummer (2000) considers that 21
brand image is composed of three dimensions: product attributes, consumer benefits and brand personality. personality. ‘Product attributes such as “miles “miles per gallon” or “strong flavour”, and the consum consumer er benefi benefits ts such such as “save “savess mone money” y” or “don’ “don’tt have have to wash wash hair hair so freque frequentl ntly” y” represent the means that can be used to achieve the desired ends’ [which are the personal values] (Aaker 1991: 145). Plummer (2000) argues that brand personality is a determining element in the comprehension of consumer choice. For Kapferer (1995), it is preferable to use the concept of brand identity instead of brand image, because the second one is too ‘volatile and changeable: it worries too much about the appearing and not enough about the being of the brand’. He represents brand identity by a prism of six sides: physique, culture, relation, reflection, state of mind and brand personality. ‘The brand, when it communicates, acquires a character. The way of speaking about the products or services evokes a certain type of character, which it could incarnate if we would compare a brand to a person.’ The creation of brand personality:
Brand personality traits are formed and influenced by any direct or indirect contact that the consumer has with a brand. A brand, unlike a person, cannot think, feel or act. A brand has no objective existence at all; it is simply a collection of perceptions in the mind of the consumer. Consumers accept the marketing actions to humanize brands. One explanation for this can be found in the theories of animism, which suggest that there exists need by people to anthropomorphize objects in order to facilitate interactions with the nonmaterial world (Fournie (Fournier, r, 1998). 1998). Anthrop Anthropomo omorphi rphizati zation on occurs occurs when when human human qualiti qualities es are attribu attributed ted to nonhuman objects, e.g. brands. Consumers easily assign personality qualities to inanimate objects like brands in thinking about brands as if they are human characters (Blackston, 1993; Fournier, 1998; J. Aaker, 1997). In a direct way, personality traits are associated with a brand by the people associated to that brand (J. Aaker, 1997). One direct way to form and influence brand personality is user imagery. User imagery is defined as the set of human characteristics characteristics associated with the typical typical or stereotype stereotype user of the brand. Associations Associations with the company’s employees or CEO, and the brand’s product endorsers are also direct ways by which brand personality traits are formed and influenced. The personality traits of the people associated with a brand are transferred directly to the brand. The theories of animism describe another process mechanism that directly explains the specific ways in which the vital vitality ity of the brand brand can can be reali realize zed d (Four (Fournie nier, r, 199 1998). 8). Spoke Spokespe sperso rsons ns that that are are used used in advertising can have personalities that fit those of the brands they advertise. Over time, the perso personal nalit ities ies of the spoke spokespe sperso rsons ns are trans transmi mitt tted ed to the the brand. brand. Th Thee brandbrand-per person son associations can also have a more personal nature. Brands can be associated with persons who use or used that particular brand, for example a close friend or a family member. Also, brands received as gifts can also be associated with the person from whom the gift was received. These person associations serve to animate the brand as a vital entity in the minds of the consumers. Obviously, this aspect is much less under the control of marketers. Indirectly, the brand personality is created by all the elements of the marketing mix. Betra, Lehmann and Singh (1993) suggest that the personality of a brand is created over time, by the entire marketing mix of the brand – “its price (high or low, odd or even), retail store location (imagery associations), product formulation (ingredients, benefits), product form (solid/liquid, etc.), packaging details (colour, size, material, shape), symbol used in all phases of the brand communication, sales promotion, and media advertising”. Another form of 22
animism explains how brand personality is created in a more indirect way. This form of animism involves complete anthropomorphization of the brand object itself. Human qualities of emotionality and thought are transferred to the brand. This is achieved with the help of the marketing actions, especially advertising. For example, the brand character of M&M in the M&M commercials has the capacity to laugh and joke. One of the advantages of brand a personality personality is that based on their distinctive distinctive personalities, consumers are able to differentiate differentiate between brands. Another advantage is that the consumer can interpret the brand’s image in such a way that it is personally personally more meaningful. Brand personality personality encourages more active processing processing on the part of the consumer. Thus, the consumer puts more effort in creating and using the brand personality. A further advantage advantage of brand personality personality is that life is given to a brand. By vitalizing a brand, another perspective of brand personality can be examined, namely the role of a brand as a relationship partner in a consumer-brand relationship. Next we will concentrate on these consumer-brand relationships. Consumer-brand Consumer-brand relationships:
The theories of animism suggest that anthropomorphizing objects facilitates interactions with the nonmaterial world. By assigning human qualities to inanimate products, by giving brands personalities, the vitality of a brand is realized. By vitalizing a brand another perspective of brand personality can be examined, namely the role of a brand as a relationship partner in consume consumer-br r-brand and relation relationship ships. s. A consume consumer-br r-brand and relation relationship ship can be compare compared d with with an interpersonal interpersonal relationship, where the brand personality personality indicates the type of person the brand is. People have different motives to engage in relationships. The motivation behind the relationships relationships is driven by the needs that individuals individuals want to satisfy. The most used and wellknown classification of needs in Maslow’s hierarchy of needs: physiological needs, safety needs, social needs, esteem needs, and self-actualization needs. Fournier (1998) states that 12 relationships relationships are “purposive, “purposive, involving at their core the provision of meaning to the persons who engage them”. Three important sources of meaning are identified that explain the signif signific icanc ancee of the relat relatio ionsh nship ip for the person person invol involved ved;; the funct function ional al meani meanings ngs,, the psychological/emotional, and the sociocultural meanings (Fournier, 1998). Consumer- brand relat relatio ionsh nship ipss provid providee a pract practica icall or funct functio ional nal meani meaning ng to the consu consume merr (Fran (Franzen zen & Bouwman, 1999). In this case the brand is used for its functional benefits. For example, the functional benefit of the pasta brand Barilla is to still the hunger. Over time, using the same brand brand can can becom becomee a quest question ion of habit habit and and conve conveni nienc ence. e. Th Thee psycho psycholog logic ical/ al/em emoti otiona onall meanings of a relationship are highly related to the activity around the identity of a person. Because the sense of ‘self’ grows of reactions of significant significant others (the relationship partner), people engage in relationships to define the ‘self’. Consumers look for brand meanings that help to construct the ‘self’. This is most commonly done by brands representing ideal personalities, or alternative reflecting one’s own individual identity. Following the same line of reasoning we propose: Proposition 1: In consumer-brand relationships, consumers search for brands that have perso personal nalit itie iess that that are are simil similar ar to their their own, own, or person personal alit ities ies that that repres represent ent the ideal personalities, in psychological/emotional terms People are constantly constantly constructing constructing and reconstructing reconstructing their self-identity self-identity (McCracken, 1993). In a consumer-brand relationship the consumers choose brands that help the individual reconstruct the ‘self’, where the brand personality is used to make the identity change. Hence, relationships also help the individual to change the ‘self’. 23
Consu Consume mer-b r-bran rand d relat relatio ionsh nships ips also also help help the indiv individ idual ual to main maintai tain n the the selfself-ide ident ntit ity. y. Consumers will engage in relationships with brands that have similar personalities to their own. A long-term relationship with that particular brand makes sure that the self-identity is maintained. Consumer-brand relationships also provide a link to the past (Fournier, 1998). A consumer has a relationship with a particular brand, for example because the brand was a present received in the past, or because that brand brings up memories from childhood. Another type of meaning that consumer-brand relationships provide is sociocultural of nature. There are five five broad broad socioc sociocul ultur tural al conte context xtss that that descri describe be relat relatio ionsh nship ip attit attitude udess and and behavi behaviour ours; s; age/cohort, life cycle, gender, family/social network, and culture (Fournier, 1998). Here, the 13 brand personalities personalities communicate communicate these sociocultural sociocultural contexts to the consumer. Related to the sociocultural meanings of the consumer-brand relationships we suggest. Proposition 2: Consumers engage in relationships with brands that represent their age, stage in life cycle, gender, social network, and culture.
Thus, while the psychological/ emotional need is to construct, reconstruct and maintain the self-identity, the sociocultural need is to communicate to others the self-identity. Types of relationships:
Just like with human relationships, consumer-brand consumer-brand relationships relationships are based on attraction, but the ability of a relationship to endure is a function of investment and commitment by the cons consum umer er (Faj (Fajer er & Scho Schout uten en,, 1995 1995). ). Th Thee leve levell of inve invest stme ment nt and and comm commit itme ment nt in consum consumer erbra brand nd rela relati tions onship hipss is repres represent ented ed by the the level level of consum consumer er brand brand loya loyalt lty. y. Consu Consume mer-b r-bran rand d relat relatio ionsh nships ips can be ordere ordered d based based on purch purchase ase behav behaviou iourr and and their their interpersonal analogs, the level of brand loyalty (Fajer & Schouten, 1995). Accordingly, consumer-brand relationship can range from low-order relationships, where the level of consumer brand loyalty is low, to higher-order relationships, where the level of consumer brand loyalty is high. Proposition 3: More investment in consumer-brand relationships leads to greater loyalty.
Information about the type of relationship (based on the level of brand loyalty) consumer have with brands is extremely valuable for marketers. Marketers know the levels of brand loyalty loyalty of their target market, and by using their marketing tools they can try to improve the level of brand loyalty for consumers that have low-order relationships with brands. Perspectives Perspectives on brand personality:
Aaker (1997) defined brand personality as the set of human characteristics that consumers associate with a brand. In this manner, attention to the emotional and symbolic, pseudo human personality aspects of a brand provides a consumer with additional reasons beyond utilitar utilitarian ian or function functional al charact characteris eristics tics,, to connect connect with with a brand brand (Keller (Keller,, 1998). 1998). Aaker’s Aaker’s framework represented an adaptation of the “Big Five” personality model, prominent in psychological research. 24
Evidence suggests that brands do indeed possess personalities. Critically, to the extent that brands develop unique personalities, personalities, they can be differentiated differentiated in the consumers’ consumers’ minds and accordingly choice preferences can be affected (Freling and Forbes, 2005; Crask and Laskey, 1990).McCracken 1990).McCracken (1986) even even suggested suggested that consumers consumers might search for for brands with a personality personality that coincides with and reinforces the self-concept they wish to project, offering additional considerations for the impact of the brand personality concept. The conceptual linkages relevant to brand personality include self-congruity theory (Sirgy, 1982; Graeff, 1996). Self-congruity Self-congruity theory holds that consumers compare their self-concept self-concept with the image that a brand projects, and in turn, prefer brands that are consistent with their self-concept. Studies have found support that consumers choose products and services that they feel possess personalities that are similar to (congruent with) their own personalities (Linville and Carlston, 1994; Phau and Lau, 2001). Consistent with this line of reasoning, consumers prefer brands that are similar to the consumer’s personality. Arguments suggest that when consumers use self-congruent brands, it can be an expression of their personal identity (Kumar et al., 2006). Indeed, as Belk (1988) has suggested, products may be a means of self expression. As such, brand personality helps to develop an emotional loyalty among consumers. Freling and Forbes (2005) (2005) found found support support that that brand brand personal personality ity positiv positively ely affects affects product product evaluat evaluations ions and purchase intentions. Since brand personality appears to be less imitable than other product attributes, the dimension of brand personality may yield a more sustainable competitive advantage. 2.2 Measuring brand personality:
Most studies have attempted to extend Aaker’s original work by exploring new areas of market application. These studies, with few exceptions, have begun with Aaker’s brand personality framework and scale and offered unique variations that were drawn from a particular market context. For example, Smith et al. (2006) utilized Aaker’s framework but found found that that it did did not fully fully captu capture re the chara charact cteri eristi stics cs of am memb member ershi ship-b p-bas ased ed sport sportss organization. Consequently, they added the dimension of “innovation” to the original five dimens dimension ionss sugge suggest sted ed by Aaker. Aaker. Many Many uncer uncerta taint intie iess rema remain in.. Some Some resear researche chers rs have have suggested that consumers’ interactions with brands are simply too complex to be captured fully by Aaker’s frame work (Smith et al., 2006). Azoulay and Kapferer Kapferer (2003) have argued that that Aaker Aaker’s ’s scale scale,, as well well as other other scale scaless of brand brand person personal alit ity, y, merge merge a number number of dimensi dimensions ons of brand brand identit identity y rather rather than than specifi specificall cally y measure measure brand brand personal personality ity.. They They conte contend nd that that the effec effectt is concep conceptua tuall confu confusi sion on in brandi branding ng resea researc rch h and limit limitati ation on in branding applications. A few studies have attempted to explore brand personality without a priori priori acceptan acceptance ce of Aaker’s Aaker’s framew framework. ork. For example example,, Venable Venable et al. (2005) (2005) explored explored the impact of brand personality on charitable giving in a non profit context. These Th ese autho authors rs conduc conducte ted d a serie seriess of mixe mixed d meth method od studie studiess (focus (focus group groups, s, quali qualitat tativ ivee assessment, assessment, and subsequent empirical empirical analysis) analysis) and concluded that integrity, nurturance, nurturance, sophistication, and ruggedness were the four key dimensions of brand personality for non profit organizations. While accepting the importance of Aaker’s work, Austin et al. (2003) question the generalize ability of Aaker’s framework. Freling and Forbes (2005) argue that advancements in the study of brand personality have been restricted by “limited theoretical or qualitative grounding.” 25
Being Being intrigu intrigued ed by and theoreti theoreticall cally y compel compelled led by these these observat observations ions and conclusi conclusions, ons, studies studies must investigate investigate brand brand personal personality ity and offer offer validat validation ion of Aaker’s Aaker’s framewo framework, rk, without the obvious bias of the a priori use of the framework as the basis for analysis. 2.3 Role of advertising in creating Brand Personality: Personality:
Human Human beings beings have have a person personal alit ity, y, whic which h is essen essenti tiall ally y a summ summat ation ion of trai traits. ts. Bran Brand d personality can be defined in several ways, with emphasis on emotion, human and tangible aspects of the brand. It can also be defined as sum of the tangible and intangible aspects of the brand. Even for industrial product like steel, SAIL uses emotional connect with 'punch line' there is bit of SAIL in everybody's everybody's life. Brand personality, personality, is process of transforming transforming the brand into a person or humanizing the brand. Thus brands can also have characteristic characteristicss (Ex: Sex, Gender, skills & abilities etc). Marketers deliver the personality using advertising, features, packaging etc. Users and non users differ in perceptions with respect to Brand personality users attach a distinct distinct personal personality ity to the brand. Establ Establishe ished d brands have unique unique personali personality ty which which is generally consistent and may be implicit. Brand personality enables to establish relationship between between brand & consumer with with emotional content. content. The degree of proximity proximity between brand and consumer personality, personality, will influence the purchase intension intension and brand loyalty. Brands need to update personality personality to stay contemporary contemporary and relevant, as target audience personality personality may change over a period of time, due to changes in cultural, economic, media exposure etc. Brand personality should not be confused with target audience characteristics. Personality may be existin existing g or aspirat aspirationa ional. l. Project Projective ive techniques techniques can be used used to describ describee brands. brands. Consumers can be asked to associate the brand, with adjectives (word association, sentence completion etc.) and also can be asked about user imagery. For example: Brands Moods Thumbs up Amul MTV Indiakings Woodlands Mahindra Scorpio Marlboro
: : : : : : : : :
Personality Sensitivity bravery / daring humour wacky Sophistication (upper class) Ruggedness & outdoorsy Ruggedness Ruggedness
Brand Liril Lux Dove Bisleri Bajaj Pulsar Yamaha Titan Cinthol Mysore Sandal
: : : : : : : : : :
Adjective freshness & Lime Beauty, softness Softness Safety Power Power Style, elegance Freshness Traditional 26
Medimix
:
Traditional
In all of the above brands, advertisement elements such as selection of the endorsers and execution etc., delivered the Brand personality. Using of Film stars for the Lux beauty soap is logical and the attractiveness of celebrity is high. This is critical critical and leads leads to credibility. credibility. Endorser personalit personality y gets transferred transferred to the brand. Thumb up soft drink has distinct personality personality owing to chivalry based ads, which also communicates communicates about user imagery. imagery. The name 'Marlboro' 'Marlboro' evokes Wild West imagery, thanks to ads and consistency of the marketers marketers in maintaining maintaining the same brand personality. personality. Ads for multi utility vehicles like Mahendra scorpio, shows the ruggedness personality. Slogans / Punch Lines:
They also reflect Brand personality. Peter England LIC L & T switch gear Bajaj Videocon Vantlensen Bank of Rajasthan The New India Assurance Co. Ltd. Mahindra Scropio Bank of India Nike
-
Honest Shirt (sincerity) Try – Thy name is LIC (Trust) Safe & Sure (Trust) Inspiring confidence (Competence) The Indian Multinational (Competence) Power Evolved (Sophistication- upper class) Dare to Dream (Excitement) Assurance of the leader (Competence) Nothing else will do – (Ruggedness) Bank that cares (empathy) - Just do it (Motivation, excitement)
Slogans enhance brand recall and have strong linkage with brand's essence / key values. Logos support brand names, provide ease in processing visual information lead to brand recall. Logo can be textual, abstract design and may be real. They convey a clear meaning or suggest something about product category / brand / values / features / benefits of the brand.
Chapter -3 3.0 Conceptual Study: 3.1 Brand personality:
Brand Brand pers persona onali lity ty is an impor importan tantt eleme element nt in brandi branding. ng. Aaker Aaker defin defines es the the associ associat ated ed personality of a brand as a set of (1) human demographic characteristics like age, gender, social class and race, (2) human lifestyle lifestyle characteristics like activities, interest, and opinion, (3) human personality traits such as extroversion, agreeableness, dependability, warmth, concern, and sentimentality. The brand becomes a living person and often attached to a metaphor. In this way, it visualizes the abstract intangible assets and characteristics in a more concrete tangible appearance. appearance. Hence, customers interact with brands as if they where human been. As it is counts for human personality, brand personality is distinctive and enduring.
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Aaker has developed a framework of brand personality dimensions on the bases of an extensive research across 37 brands (out of 60) with a high salience rating divided over 4 clusters with 114 personality traits (out of 309).The brand personality construct composes five five pers person onal alit ity y fact factor orss so call called ed "Big "Big Five Five": ": sinc sincer erit ity, y, exci excite teme ment nt,, comp compet eten ence ce,, sophistication, and ruggedness. The big five includes 15 facets and 42 traits; they explain 92% of the variance between the brand personalities. See figure.
Figure 3.1 Brand personality Brand personality develops the interaction interaction between the brand, product, service, organization organization and their users. Nearly everything associated with the brand affects the perceived brand personality. For that, Aaker segregated two groups of brand personality drivers; product related and non-product related characteristics.
Product related Characteristics
User imagery Characteristics
•
Product category
•
User imagery
•
Package
•
Sponsorships
•
Price
•
Symbol, Age , Ad style
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•
Attributes
•
Country of origin
•
Company image, CEO
•
Celebrity endorsers
Table 3.1 Brand personality drivers
User imagery, imagery, as defined as the associated set of human characteristics characteristics of the typical user, is a powerful brand personality driver. Where brand personality reflects to the brand, user imagery reflects reflects to the typical user of the brand. Hence, user imagery should not necessarily necessarily be equal to the brand personality. The difference can be negligible, minor and significant. Nonetheless, both have a strategic value to the brand where user imagery enables the brand to focus on specific user reference groups (specific target markets) without jeopardizing the brand identity, heritage and brand personality (Aaker, 1996:170-173).
Chapter-4 4.0 Research Methodology:
Research methodology is defined as the systematic and objective process of gathering, record recording ing and analy analyzi zing ng data data for gaini gaining ng kno knowl wledg edgee that that does does cultu culture re influ influenc ences es the consumer impulsive impulsive buying behaviour. For a successful successful research the most important important thing is Systematic search of information. Also the Collected information should be accurate and objec objectiv tive. e. Th Then en only only the the resea researc rch h can can facil facilit itate ate to getti getting ng kno knowl wled edge. ge. Respo Responde ndents nts considered for the study are consumer’s who does their shopping in Retail stores based in Hyderabad. The study involved filling of questionnaire. 4.1 Research Design:
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Research design can be simply understood understood as a detailed plan outlining outlining how observations observations will be made. made. It is a master master plan specify specifying ing the methods methods and procedures procedures for collectin collecting g and analysing the needed information. Being a framework framework or plan for a study that guides the collection collection and analysis analysis of the data. It can be divided into three types:
Exploratory Descriptive/Diagnostic Experimental
The research was mainly exploratory as there were very little information available and the study was conducted on selected cases. The primary objective of this study is “to measure out Brand Personality of the brand Nike & Adidas”. 4.2 Methods of data collection:
The nature of the study suggested collecting both type of Primary Data as well as Secondary Data to analyze better the relationship between Brand Personality and Consumer Behaviour. Primary Data:
For For colle collecti cting ng Prim Primary ary Data, Data, we took took the the help help of quest question ionnai naire re to kno know w the the view view of consumers about all said brands. Secondary Data:
As far as secondary data is concerned, concerned, we reviewed reviewed the literatures literatures that emphasis specially is placed on the consumer behaviour like personality theory, motivation research and learning research. A survey was conducted to measure the personality dimensions based on Aaker’s five personality dimensions. In addition, various personality dimensions are explored using indepth, one-to-one interviews; interviews; there are following criteria to find out the structure and nature of Brand Personality Sincerity (Down-to-earth, Honest, Wholesome, Cheerful) Excitement(Daring, Spirited, Imaginative, Up-to-date) Competence(Reliable, Intelligent, Successful) Sophistication(Upper class, Charming) Ruggedness(Outdoorsy, Tough) •
• • • •
Samples:
Data Data were collecte collected d from 100 consume consumers rs those have had prior prior experien experience ce of using using all the product products. s. All samples samples include include all age group of people people residing residing in Siva Siva Sivani Sivani Institute Institute of Management, Kompally, Prajay, Vensai & Secunderabad. •
In this study, the respondents were asked to fill out the questionnaire. Subjects were first first informe informed d to them, them, and then asked asked to complet completee the brand personal personality ity measure. Finally, the respondents provided personal data at the end.
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•
Brand Brand perso personal nalit ity y was was measu measured red with with Aaker Aaker's 's Bran Brand d Perso Persona nali lity ty Scal Scale. e. Th Thee psychometric property of this scale was not easy understanding for respondents. They used to surprise how a product could have human characteristic. To overcome this problem problem,, we asked asked them to think think brand as if it were a person person and to rate on a fivefive point scale (Likert Scale ) the extent to which each of the 42 brand personality traits describes the brand. "Sincere," "exciting," "reliable," "glamorous and "rugged" are examples of items used to assess the brand personality dimensions of sincerity, excitement, competence, sophistication, and ruggedness, respectively.
Limitations Limitat ions of study : • •
Data was only collected in the twin cities. The sample size is 100.
Chapter-5 5.0 Data analysis: Sample size: 100 5.1 Demographical Analysis: Gender wise Analysis of Sample:
Frequ requen ency cy Perc Percen entt Valid Ma M a le Female Total
Valid Percent
Cumulative Percent
77
77.0
77.0
7 7 .0
23
23.0
23.0
1 0 0 .0
1 00
100.0
100.0
In this survey of Brand personality measurement of Adidas & Nike 77% male participated against 23% female.
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5.2 Marital Status wise Analysis of Sample:
Valid Percent
Frequ requen ency cy Perce ercent nt Valid Unmarried Married Total
Cumulative Percent
86
8 6 .0
86.0
8 6 .0
14
1 4 .0
14.0
1 0 0 .0
1 00
1 0 0 .0
100.0
In this survey of Brand personality measurement of Adidas & Nike 86% unmarried people participated against 14% married.
5.3 Age wise Analysis of Sample:
Freq Freque uenc ncy y Perc Percen entt
Valid Percent
Cumulative Percent
Valid 18-24
69
69.0
69.0
69 . 0
24-30
24
24.0
24.0
9 3 .0
30-36
6
6.0
6.0
9 9 .0
A
1
1.0
1.0
10 0 .0
1 00
100.0
100.0
Total
In this survey of Brand personality measurement of Adidas & Nike the major participation age group of 18-24 (69%), 24-30 (24%), 30-36 (6%) and 1% people above 48 years.
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5.4 Occupation wise Analysis of Sample:
Valid Percent
Freq Freque uenc ncy y Perc Percen entt Valid Student
Cumulative Percent
77
77.0
77.0
77.0
10
10.0
10.0
87.0
GV. Employee
2
2.0
2.0
89.0
Businessman
3
3.0
3.0
92.0
Homemaker
8
8.0
8.0
100.0
10 0
100.0
100.0
Professional
Total
In this survey of Brand personality measurement of Adidas & Nike the major participation of respondents are student 77%, Professional 10%, Government employee 2%, Businessman 3% and Homemaker 8%.
5.5 Comparative Analysis of Brand’s Characteristic: Resp Respon onde dent ntss Personality:
resp respon onse se on Sinc Sincer erit ity y
(Fam (Famil ily y
Orie Or ient ntat atio ion) n) attr attrib ibut utee
of Br Bran and d
This graph shows that 32% respondents agree that Adidas is family oriented against 10% respondents think that Nike is family oriented. Respondents response on Sincerity (Down To Earth) attribute of Brand Personality:
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Here this graph clearly indicates that in consumer perception Adidas has Down To Earth Brand Personality. Respondents response on Sincerity (Honest) attribute of Brand Personality:
As far as “Honest” characteristic of both brands is concerned they have almost equal weight in view of consumers. It is very slight difference between them. Respondents response on Sincerity (Cheerful) attribute of Brand Personality:
Nike has got good response for Cheerfulness level. Adidas has not good level ofCheerfulness. Respondents response on Sincerity (Sentimental) attribute of Brand Personality:
Agree bar shows that Adidas brand is more Sentimental than Nike. Respondents response on Sincerity (Friendly) attribute of Brand Personality:
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Respondents think that Nike is friendlier than its competitor Adidas.
Respondents’ response on Sincerity (Daring) attribute of Brand Personality:
Here the Daring image of both brand is almost equal. There is only one difference among respondents reply. Respondents response on Excitement (Trendy) attribute of Brand Personality:
Trend graph shows that 36% respondents are agreed that Adidas is more trendy against 23% of Nike. Respondents response on Excitement (Cool) attribute of Brand Personality:
Here it is clear that Adidas is cool than Nike. As 40% respondents agree to this view against 32%. Respondents response on Excitement (Young) attribute of Brand Personality:
Here graph indicates that respondents think that Nike is younger than Adidas. Respondents response on Excitement (Imaginative) attribute of Brand Personality:
Nike has grater Imaginative brand personality than Adidas has. Respondents response on Excitement (Unique) attribute of Brand Personality:
35
It is very interesting to see that both brands have equal Uniqueness in the perception of consumers.
Respondents response on Excitement (Up to Date) attribute of Brand Personality:
Here it is clearly visible that respondents equally agree that both brands are Up to Date. Respondents response on Excitement (Independent) attribute of Brand Personality: Personality:
This graph shows that 33% respondents agree that Adidas is Independent against 30% think Nike is Independent.
Respondents response on Competence (Reliable) attribute of Brand Personality:
As far as Reliability is concerned of both brands it is more and less equal. Most of respondents agree as well strongly agree that both are reliable brands. Respondents response on Competence (Hardworking) attribute of Brand Personality:
This graph shows that agree level for Hardworking Brand personality of Adidas is dominant over Nike.
Respondents response on Sophistication (Masculine) attribute of Brand Personality:
Respondents’ reply shows that Adidas brand shows more mascunality than Nike. Respondents response on Sophistication (Upper Class) attribute of Brand Personality:
36
In this graph we can see that most of respondents have neutral opinion over Upper Class Brand Personality.
Respondents response on Sophistication (Smooth) attribute of Brand Personality:
This graph shows that Adidas is smoother than Nike. Respondents response on Competence (Corporate) attribute of Brand Personality:
Adidas has more corporate brand personality than its competitor Nike.
Respondents’ response on Ruggedness (Tough) attribute of Brand Personality:
Here it is clearly visible that respondents equally strongly agree that both brands are tough. Respondents’ response on Ruggedness (Outdoorsy) attribute of Brand Personality:
This graph shows that Adidas has Outdoorsy Brand personality. Nike has equally outdoorsy personality.
Cross tabulation analysis: Respondents perception about Brand personality attributes of Nike and Adidas
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Gender wise perception about brand personality attributes (Sincerity- Down to Earth) of Adidas & Nike:
Sincerity (Nike And Adidas)
Ni k e
Adidas
(male)
strongly disagree neutral disagree
agree
s t r o ng l y agree
2
10
18
27
20
(female) 1
3
3
10
6
(male)
21
25
16
4
6
6
6
2
11
(female) 3
This graph of Sincerity attribute of Brand Personality indicates that 27% male and 10% female think Nike is sincere brand. Whereas 16% male and 6% female agree that Adidas is sincere brand.
Gender wise perception about brand personality attributes (Hardworking) of Adidas & Nike:
Hardworking (Nike and Adidas)
Nike
Adidas
strongly disagree
disagree
1
16
(male)
neutral
agree
24
strongly agree
21
15
(female )
2
5
6
7
3
(male)
2
11
18
34
12
(female )
1
3
5
11
3
38
This graph of Hardworking attribute of Brand Personality indicates that 21% male and 7% female think Nike is sincere brand. Whereas 34% male and 11% female agree that Adidas is sincere brand.
Gender wise perception about brand personality attributes (Sophistication) of Adidas & Nike:
Sophistication(Nike and Adidas)
Nike
Adidas
strongly disagree
disagree
neutral
agree
strongly agree
(male)
1
11
23
26
16
(female )
2
1
9
7
4
(male)
1
10
21
28
17
(female )
1
2
10
8
2
This graph of Sophistication attribute of Brand Personality indicates that 26% male and 7% female think Nike is sincere brand. Whereas 28% male and 8% female agree that Adidas is sincere brand.
39
Gender wise perception about brand personality attributes (Feminine) of Adidas & Nike:
Feminine(Nike and Adidas)
Nike
Adidas
strongly disagree
disagree
neutral
agree
strongly agree
(male)
4
13
22
17
21
(female )
1
3
8
7
4
(male)
1
6
26
27
17
(female )
1
1
9
8
4
This graph of Feminine attribute of Brand Personality indicates that 17% male and 7% female think Nike is sincere brand. Whereas 27% male and 8% female agree that Adidas is sincere brand.
Gender wise perception about brand personality attributes (Ruggedness) of Adidas & Nike:
Ruggedness(Nike and Adidas)
Nike
strongly disagree
disagree
neutral
agree
strongly agree
(male)
5
10
27
22
13
(female )
0
5
8
8
2
40
Adidas
(male)
1
10
21
28
17
(female )
1
2
10
8
2
This graph of Ruggedness attribute of Brand Personality indicates that 22% male and 8% female think Nike is sincere brand. Whereas 28% male and 8% female agree that Adidas is sincere brand.
Gender wise perception about brand personality attributes (Outdoorsy) of Adidas & Nike:
Outdoorsy(Nike and Adidas)
Nike
Adidas
strongly disagree
disagree
neutral
agree
strongly agree
(male)
1
11
27
19
19
(female )
1
4
5
12
1
(male)
5
11
26
23
12
(female )
1
4
7
9
2
41
This graph of Outdoorsy attribute of Brand Personality indicates that 19% male and 12% female think Nike is sincere brand. Whereas 23% male and 9% female agree that Adidas is sincere brand.
Gender wise perception about brand personality attributes (Trendy) of Adidas & Nike:
Trendy(Nike and Adidas)
Nike
Adidas
strongly disagree
disagree
neutral
agree
strongly agree
(male)
1
10
21
28
17
(female )
0
3
10
8
2
(male)
4
11
28
21
13
(female )
1
4
10
6
2
This graph of Trendy attribute of Brand Personality indicates that 28% male and 8% female think Nike is sincere brand. Whereas 21% male and 6% female agree that Adidas is sincere brand.
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Gender wise perception about brand personality attributes (Up to Date) of Adidas & Nike:
Up to Date(Nike and Adidas)
Nike
Adidas
strongly disagree
disagree
neutral
agree
strongly agree
(male)
4
19
19
23
12
(female)
2
4
8
5
4
(male)
1
8
24
28
16
(female)
1
1
10
8
3
This graph of Up to date attribute of Brand Personality indicates that 23% male and 5% female t hink Nike is sincere brand. Whereas 28% male and 8% female agree that Adidas is sincere brand.
Gender wise perception about brand personality attributes (Family Oriented) of Adidas & Nike:
Family Oriented(Nike and Adidas)
Nike
Adidas
strongly disagree
disagree
neutral
agree
strongly agree
(male)
6
11
20
22
18
(female)
2
3
8
8
2
(male)
3
10
23
26
15
(female)
2
2
11
6
2
43
This graph of Family Oriented attribute of Brand Personality indicates that 22% male and 8% female think Nike is sincere brand. Whereas 26% male and 6% female agree that Adidas is sincere brand.
Gender wise perception about brand personality attributes (Tough) of Adidas & Nike:
Tough(Nike and Adidas)
Nike
Adidas
strongly disagree
disagree
neutral
agree
strongly agree
(male)
3
15
25
23
11
(female)
2
6
7
6
2
(male)
3
10
18
30
16
(female)
1
3
5
11
3
This graph of Tough attribute of Brand Personality indicates that 23% male and 6% female think Nike is sincere brand. Whereas 30% male and 11% female agree that Adidas is sincere brand.
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Chapter-6 6.1 Results:
The findings based on the data collected give a fairly good idea about the various aspects of some important popular brands such as Adidas and Nike. •
• •
• • •
•
•
•
•
•
•
•
•
•
In terms of awareness, people are aware of both the brands. But they have their own likings and disliking. Most of the people like think that Adidas is more family oriented than Nike. Most respondents consider Adidas as more Down to Earth than Nike. Nike is tougher than Adidas. The survey indicates that Adidas is Outdoorsy in its nature over its competitor Nike. Sincerity attribute Brand Personality indicates that 27% male and 10% female think Nike is sincere brand. Whereas 16% male and 6% female agree that Adidas is sincere brand. Hardworking attribute Brand Personality indicates that 21% male and 7% female think Nike is sincere brand. Whereas 34% male and 11% female agree that Adidas is sincere brand. Sophistication attribute Brand Personality indicates that 26% male and 7% female think Nike is sincere brand. Whereas 28% male and 8% female agree that Adidas is sincere brand. Feminine attribute Brand Personality indicates that 17% male and 7% female think Nike is sincere brand. Whereas 27% male and 8% female agree that Adidas is sincere brand. Ruggedness attribute Brand Personality indicates that 22% male and 8% female think Nike is sincere brand. Whereas 28% male and 8% female agree that Adidas is sincere brand. Outdoorsy attribute Brand Personality indicates that 19% male and 12% female think Nike is sincere brand. Whereas 23% male and 9% female agree that Adidas is sincere brand. Trendy attribute Brand Personality indicates that 28% male and 8% female think Nike is sincere brand. Whereas 21% male and 6% female agree that Adidas is sincere brand. Up to date attribute Brand Personality indicates that 23% male and 5% female think Nike is sincere brand. Whereas 28% male and 8% female agree that Adidas is sincere brand. Family Oriented attribute Brand Personality indicates that 22% male and 8% female think Nike is sincere brand. Whereas 26% male and 6% female agree that Adidas is sincere brand. Tough attribute Brand Personality indicates that 23% male and 6% female think Nike is sincere brand. Whereas 30% male and 11% female agree that Adidas is sincere brand. 45
6.2 Conclusion:
In the current study, the quantitative data supported the five major dimensions of personality personality as designated by Aaker’s original work. Here, the qualitative data provided fuller and richer perspective. Respondents’ (consumers) expressed their personal impressions of their usage, experiences, and feelings towards the brands being studied. In turn, the respondents’ own words provided the basis for drawing brand characteristics. This study found that Adidas was perceived as a reliable and trendy brand. While these impressions appeared to be quite salient to the consumers’ choice process, these items were revealed only through our quantitative assessment. Importa Importantly ntly though, though, the quantit quantitativ ativee analysi analysiss (shown (shown in graphica graphicall form) form) reveale revealed d key differences in perceived personality between Nike and Adidas. For example, Adidas rated statistically significantly higher than Adidas on items such as original, trendy, up to date, friendly, down-to-earth, family oriented and up-to-date. On the other hand, Nike was rated signifi significant cantly ly higher higher than than Adidas Adidas on items items such as Daring, Daring, Yong, Imagina Imaginativ tive, e, Unique, Unique, cheerful, Upper class and tough. Looki Lo oking ng at the the quant quantit itati ative ve and quali qualita tati tive ve asses assessm sment entss provid provides es a broad broader er and more more complete image. The rating scales suggest that Adidas has captured a more Up to date, contemporary, and perhaps “edgier” feel than Nike. These could be utilized to differentiate and justify the Adidas added perceived expense of over Nike. The Adidas brand impressions seem to indicate that consumers sense that with Adidas, one “gets what they pay for” (presumably a consistently reliable product). To conclude, Brand personality being potent tool needs to be leveraged to achieve key objec objectiv tives es for existin existing g & new brands. brands. In this this study study it is found found that that Adida Adidass has slight slight advant advantage age over over Nike Nike brand brand.. Respo Responde ndents nts perce perceive ived d Adidas Adidas as brand brand havin having g versa versati tile le personality.
7.0 Questionnaire: This questionnaire aim to measure out the brand dimension of two Popular brands like Addidas vs. Nike
Name: _________________________ _____________ ___________________Sex: _______Sex: -Male/ Female Status: -Single/Married
46
Age (in Years): 18-24 above 48
24 - 3 0
30-36
Occu Occupa pati tion on:: Stud Studen entt Home Maker
Prof Profes essi sion onal al
36-42
Govt Govt.. Emplo mploy yee
42-48
Busi Busine ness ssm man
Strongly agree
Agree
Neutral
Disagree
Strongly disagree
5
4
3
2
1
47
Personality Attribute
5
4
Brand_1
Brand_2
Addidas
Nike
3
2
SINCERITY
Down to earth Family oriented Honest Cheerful Sentimental Friendly Daring EXCITEMENT
Trendy Cool Young Imaginative Unique Up to date Independent COMPETENCE
Reliable Hardworking Intelligent Technical Corporate Successful Confident SOPHISTICATION
Upper class Glamorous Feminine Smooth Masculine 48
1
5
4
3
2
1
49
References
1. AAKER, David building strong Brands, 1996. 2. Sengupta, subrato Brand positioning – Strategies for competitive advantage" Tata Mcgraw Hill, New Delhi 1990. 3. Upshaw, Lynn B. Building Brand Identity, Jhon – Wiley & Sons 1995. 4. Moorthi, YLR 'Brand Management The Indian Context Vikas publishing 2005. 5. Kapferer, Jean Noel, Developing New Brands, Pitnam publishing 1973. 6. Rajeev Batra, Myers Jhon.G, Aaker David, Advertising Management 5 th edition, Pearson Education Asia.
Bibliography:
www.consumerbehavior.net www.mcdonaldsindia.com www.mcdonalds.com Measurement and Validity of Jennifer Aaker’s Brand Personality Scale for Colgate Brand BEJOY JOHN THOMAS and P C SEKAR Dimensions of Brand Personality by JENNIFER L. AAKER Personality Personality and Consumer Behaviour by LEON G. SCHIFFMAN and LESILE LAZAR KANUK *http://www.adidas-salomon.com/en/investor/reports/default.asp, October 2003 *http://www.adidas-salomon.com/en/overview/history/default.asp, October 2003 *http://www.cybersource.com/solutions/success_stories/nike.xml, October 2003 *http://www.nike.com/nikebiz/nikebiz.jhtml?page=1, October 2003 *http://www.nike.com/nikebiz/nikebiz.jhtml?page=15, October 2003 *http://www.nike.com/nikebiz/news/pressrelease.jhtml?year=1999&month=06&letter=d, October 2003 * "Nike - Channel Conflict." Graduate School of Business, Stanford University, February 2000 *Belch & Belch. "Advertising and Promotion." McGraw-Hill Irwin. New York. 2001. p.493 Brand Personality and Mobile Marketing:An Empirical Investigation by O. BOUHLEL, N. MZOUGHI, D. HADIJI, and I. BEN SLIMANE
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