Q3. Ans.

Brand imageBrand can be defined as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers. A brand may identify one item, a family of items, or all items of that seller. If used for the firm as a whole, the preferred term is trade name." A brand can take many forms, including a name, sign, symbol, color combination or slogan. For example, Coca Cola is the name of a brand make by a particular company. Brand identitySince the appearance of its initial slogan -- 'Just do it' -- Nike has cultivated the universal values associated with sports and the Olympic movement: surpassing oneself, determination, competition, accomplishment. This is where the brand's ethic, its vision of the world, and what it believes are situated. It offers some very useful and concrete glimpses into the essence of the brand phenomenon itself. It constitutes the foundation and the federating element of all the activities we have designated as being manifestations of the brand. Brand personalityA set of human characteristics that are attributed to a brand name. A brand personality is something to which the consumer can relate, and an effective brand will increase its brand equity by having a consistent set of traits. This is the added-value that a brand gains, aside from its functional benefits. There are five main types of brand personalities: excitement, sincerity, ruggedness, competence and sophistication.

Nikes Brand image in the US: Brand image is the impression in the consumers mind of a brands total personality (real and imaginary qualities and shortcomings). It is set of feelings, emotions and experiences that are linked to the brand. While brand personality is the image the company wants to convey through the different brand architecture (logo, name, Marketing mix, and communicated messages) and they have control over, the brand image is the subjective mental picture of the brand. It is developed over time through advertising campaigns with a consistent theme, and is authenticated through the consumers direct experience. Because it is a subjective perceived position, brand image can deviate from the brand identity due to different perceptions, unexpected events, and different interpretation of communicated messages. The ultimate goal of any company is to lessen the gap between the perceived and the required brand image through actively getting feedback from the market and responding to any trends .Nike brand image that the company initially was building is a pure American icon, high performance, innovative aggressive brand, associated with high not athletes, achievers and winners; mainly serious males. Nike is perceived as a high performance brand, since their inception Nike considered performance as top priority, they designed shoes that are durable, lightweight for runners. They used leather in their fabrics because it is more durable than garment yet less fashionable. From the early day, Nike has learnt the consumers need by listening to the need of athletes, sharing their true passion for running. They designed their shoes to give athletes the best performance. In doing so, Nike has created a reputation as a provider of high quality running shoes designed especially for athlete. The innovative product strategy they adopted emphasized their innovative image in the minds of consumers. They introduced a lot of innovative products in the sport market starting from the Marathon shoe debuted in 1965, moving on to the innovative new cushioning technology that was used with running shoes for the first time in the 70s, followed by the introduction of the Air technology in basketball shoes in 1988, and lately the alpha line high tech products.

Brand personality-They used brand associated with achievers through getting the endorsement of high notch athletes in the US. Actually this was the cornerstone step in building their brand image in the US. They conveyed through these association Nike as a masculine ,serious, high performance, winning brand linked with professional level of competition. They played on making Nike a pure American Icon that portrays the American spirit of competition, superiority and even Arrogance. Nikes image was totally different from other US local competitors like Rebook who personified their brand as fun, soft, fashionable brand through associating with non competition sports like the aerobics that is famous among females more than males. The sources of Nike brand equity in US arises from the Aaker model form the following: First of all Nike has a well established and strong brand identity with a well recognized and distinguished brand name and brand log , the swoosh, which facilitate the differentiation of its products from competitors. The brand name is simple and easily memorized by customers. 97% global awareness and recognition for Nike brand and logo contribute substantially to the brand image and brand equity. The core of building the brand equity for Nike brand equity is brand association. Nike is associating its brand with famous athletic celebrities that have

similar personality as the brand; they are achievers, winners, determinant, and accomplishment oriented, non traditional (out of the box). Like the legendary Michel Jordan the basket ball player, McEnroe the famous tennis player, Michel Johnson the famous American sprinter. Nike is capitalizing on the idolized view of American for their athletic heroes, specially the youth the main target of NIKE. This association projects the personality of the celebrity on the brand. The most famous example for brand association ever was the collaboration between Nike and Jordan, the association that personified Nike as a superior, achiever, successful and amazing top performing brand, By time this personification became permanent even when Jordan was not there turning consumer response to Nike brand from conditional (stimulated by the presence of Jordan) to permanent unconditional one. Also they associated with top sport events in the states by sponsoring the basketball American league. This brand association again conveyed an image of Nike as a 4serious, high performance, American brand capitalizing on the nature of basketball as a tough game that is most popular in the states. From the other side this association, in addition to the personification of the brand, it increased the brand awareness. Nike communicated this association through their TV ads that was a hit at their time in the states like the Jordan air ad that caught fire and increased their sales dramatically .In addition, one of the most important sources of Nike brand equity is the high perceived quality of the brand not only among athletes but also between the public. Although most of their market was the public that used their shoes just for walking around yet Nike was committed to design their shoes according to the high standards of professional competition. They listened to athletes and designed shoes that satisfy their needs for high performance and durability. Seeing a winning athlete wearing a Nike shoes in a professional competition authenticated the quality perception in the minds of the customers about the Nike brand. Also they didnt follow the trends of other shoe maker like Rebook who used garments in the fabrication of their shoes instead of leather because it is more fashionable although it is less durable, Nike didnt do so and they sticked to using leather fulfilling their commitment to quality. Another important pillar in Nike brand equity is their brand credibility as a brand which was established over the years through their commitment to delivering what they promise. A clear example for this is in the 80s when Aerobics games were rising and the trend in the shoe design was shifting toward more fashionable, less durable line, by that time Nike decide to pursuit fulfilling its brand promise to deliver high performance and high quality. They shifted to sponsoring basketball the toughest and the highest on performance scale sport in the US. Another block in Nike brand equity is the good relationship with its consumers. A relationship that started with the beginning of the company when Knight used to speak to athletes using their language and listen to their feedback. He used to meet with them in tracks in high school and in colleges. This strategy created a lot of attachment of athletes to the brand, some sort of brand loyalty. When the company expanded they used a Finger on the pulse strategy where Nike have some of its employees hitting the street finding out what is in the minds of their consumers and following their needs and tracking their brand perception. 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 Goliaths 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 60s and 70s, 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,

with an underground swelling of negativity already occurring today. In order to avoid the negative effects and lost revenues that Nike and Reebok have received, they need to immediately begin to take a proactive stance in regards to the working conditions of their factories Weaknesses of Adidas High cost structure Over pricing Low quality products/services

Advantages1. Nike is perceived as a high performance brand, since their inception Nike considered

performance as top priority, they designed shoes that are durable, lightweight for runners. 2. Nike is associating its brand with famous athletic celebrities that have similar personality as the brand; they are achievers, winners, determinant, and accomplishment oriented, non traditional (out of the box). 3. 97% global awareness and recognition for Nike brand and logo contribute substantially to the brand image and brand equity 4. Its core competencies like customer focus, technology and outsourcing is an advantage.

Question 4:Brand Pyramid of Nike vs Reebok: Salience: Nike People mainly recalled the brand as a high performance brand and a durable brand with superior quality. People not only think about the brand when they have to buy it but they also think about the brand whenever they see any sport which is being sponsored by this brand and it gives them to think and recall about the brand and seeing the sportsperson which are role models of many As Nike always kept in touch with the best of the athletes of that particular time by making them the brand ambassador of Nike in different sports categories so the people associated the brand with almost all sports played in US whenever they watched the sport be it Baseball, Basketball, Football. So initially the people were quite aware but the awareness was limited to males and the athletes but later on with their Just Do It campaign the customers became more aware about the brand because not only it targeted the athletes but also non athletes who want to become high performers and achievers. People mostly identify the brand and are aware about the brand through its logo which itself depict that just do it means we can do it. Nike is known for its technologically advanced products. They are the leaders in this area, which allows their products to stand out from the rest. Their focus also allows them to maintain a somewhat narrow niche that enables them to effectively capture the needs and wants of consumers. ReebokPeople remembered the brand with style and a brand both for male and female. This was the gap which was left by Nike. Reebok filled the gap with stylish shoes which were appealing to both male and female and were mainly remembered whenever we have something related to aerobics. Performance: NikeThere main ingredients are the leather of high quality and they do not compromise on the quality of their product whose main functional value is to give performance and comfort through which they could achieve something. They also came up with innovations which formed the basis of success of the brand. The product was quite reliable and durable according to the consumers. It focused less on style statement and focussed more on design. Moreover the prices of the brand are high to target a specific segment. Reebok-

They also dont compromise on the quality of their leather and besides offering the functional value it also offers style in its products. Reebok is also durable and reliable and the consumers have that image in their minds. Prices are almost similar in different categories.

ImageryNike: More than 50% sales come from non athletes background, people who want to achieve something different and they already have achieved lots of things in life and want to invest money in their healthy lifestyle. The usage is mostly running, sprinting, and playing at their localities and the people who are athletes have usage for their particular sports. The people want to match their personalities with the athletes who wear the nike shoes and they want to emulate those people. The brand shares various experiences with the best events of the world in sports category and people correlate themselves with them. Reebok: It attracts youth and people who love to have stylish as well as the sporty shoes. People purchase it for both reasons to play and to hang out. It suits to the personalities of the people who are outgoing and love to flaunt things. They are both into the athletic shoes and the casual ones and consistently organise road shows for the athletes. JudgementsNike: When it comes to quality there is no question in the minds of consumers about the quality and the consumers perceive its quality to be the best. When the wear it they have a sense of superiority in their minds. They trust the brand feel the brand is trustworthy. Reebok: When it comes to stylish and quality they always have reebok in their minds but the performance wise nike is considered the best, and the credibility is also on the higher side. FeelingsNike: People are well approved socially when they wear nike and it gives them a status. Like the people who run go in group to run and when they wear nike it gives them a social approval. It gives them a feeling of self respect as they think they are the proud owner of nike brand. It gives them fun while they are performing various activities and it encourages them to pursue anything they want to.

Reebok: Reebok , a reputation which keeps a hundred years regarding invention and also footwear record alone. Brand that, they've got this.Whether it is Reebok vintage shoes, Reebok way of life shoes or perhaps Reebok performance shoes, Reebok provides you with the liberty to convey on your own simply by choosing no matter what meets your feelings, type and also wardrobe. ResonanceNike: The athletic shoemaker's famous swoosh emblem and a string of ad campaigns, starting with its iconic "Just Do It" series, set the gold standard for getting a clear message to a mass audience. But when Nike crafted its World Cup strategy, it decided to try something new: online communities. The centerpiece is Joga.com, a social networking site for soccer fans it quietly launched in February with Google. Members in 140 countries can blog, create fan communities around their favorite teams or players, such as Brazilian superstar Ronaldinho, organize pickup games, download videos, and rant against the encroaching commercialism of the game. And though the program was launched during the World Cup, it continues beyond the tournament. Reebok: Despite the tough times Reebok has recently come upon, reasons for optimism remain. Reebok has managed to hold the loyalty of a large portion of the industrys female consumers market. While Reeboks spending on advertising has fluctuated, individual product designs have come and gone, female consumers have, as a group, remained loyal to Reebok and their products. While Reeboks competitors are known by familiar slogans like Nike's "Just Do It," Reeboks, "Are You Feeling It," does not equate to their brand name in the eyes of most consumers.