Hong 1
Product Differentiation: Nike VS. Adidas
Morgan Hong
Wheeler
Bus 120
5 November 2015
Hong 2
In the world of athleticism, several companies have capitalized on the consumer need for
athletic gear designed professional athletes and regular people alike. However, with the growing
number of new clothing companies that specialize in athletic wear, two companies have shot to
astronomical popularity and are constantly competing in the market. These two companies are
none other than Nike and Adidas, two of the most internationally recognizable athletic clothing
companies in the marketplace, both equally making other competition nearly obsolete. Even
though these two companies sell fairly similar products, Nike and Adidas concentrate their focus
on highlighting the differences between their merchandise from their competitor’s. Despite both
companies proving their statuses as giants of sports apparel market, Nike still manages to trump
its Adidas along with its other, smaller competitors by creating a more desirable company image
while constantly generating interest around their products.
The company Nike began in 1972 and was founded by Phil Knight and Bill Bowerman
1
with the intention to create athletic wear that was stylish, practical, and wearable by a large
portion of their market. The company name “Nike” was based off the name of the “Greek
goddess of victory”
2
. Based in Beaverton, Oregon, the company quickly caught storm and
eventually went on to own several subsidiaries such as Cole Haan and Converse, both highly
profitable companies by themselves. With the speedy rise to success, Nike expanded their
athletic empire and quickly became the highest profitable athletic company in the market. With
their competitive international ranking, this paved way for several innovative marketing tactics
that would help keep Nike at the top. In 1988, one of the most well known advertising slogans
1
“Nike History and Timeline.” Nike History and Timeline. N.p., n.d. Web. 04 Nov. 2015.
2
O’Reilly, Lara. “11 Things Hardly Anyone Knows About Nike.” Business Insider. Business
Insider, Inc, 04 Nov. 2014. Web. 04 Nov. 2015.
Hong 3
was just conceived: “Just do it”
3
. The simple, yet poetic, three-word mantra seemed to
encapsulate everything Nike stood for and was first coined in 1988. The slogan “Just do it”
quickly became just as recognizable to the brand as the logo itself. From the conception of this
slogan, Nike had created intense brand recognition for consumers and eventually this helped
pave way for even greater company gains.
With a genius mantra behind the company’s already enormous success, Nike went on to
capitalize on their gains and began advertisements that circulated primarily around this slogan by
use of celebrity endorsements, which is an example of promotion. The use of promotion is
defined as “any form of communication a business uses to inform, persuade, or remind people
about its products or to enhance its image”
4
. The use of celebrities such as Serena Williams and
Tiger Woods are designed to appeal and persuade not only to professional athletes, but also to
