DOCSLIB.ORG

Which Brand Will Create the Most Brand Value During the 2014 FIFA World Cup?

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Which Brand Will Create the Most Brand Value During the 2014 FIFA World Cup? Bachelor Thesis by Fabian Dingemanse Determining a winner in the battle between Nike and adidas: Which brand will create the most brand value during the 2014 FIFA World Cup? ERASMUS UNIVERSITY ROTTERDAM Faculty of Economics of Business Marketing Supervisor : Gerard Havranek Student: Fabian Dingemanse Student number:! 321961 E-mail address: [email protected] Study:! Economie en Bedrijfseconomie Thesis: Master/Bachelor Summary This thesis will conduct a research on how to use brand equity in predicting a winner in the brand battle between Nike and adidas1. Nike has the largest revenue in the sportswear market and is closing in on adidas, who is market leader in football. The 2014 FIFA World Cup could be a decisive moment on who will become the market leader in football in the upcoming years. To determine which of the two brands will win the World Cup, brand equity of both companies will be analysed. This thesis does so by focusing on one of the five stages from Keller and Lehmann’s 2003 Brand Value Chain. This particular stage is customer mindset, which consists of five factors: awareness, associations, attitude, attachment, and activity. Both brands will be compared on each of these five factors using existing literature, documents and consumer surveys. 1 adidas is officially spelled without a capital letter 2 Table of Contents 1 Introduction ........................................................................................................................... 5 1.1 Reason for this research ......................................................................................................... 5 1.2 Theoretical Framework .......................................................................................................... 6 1.3 Overview ....................................................................................................................................... 9 1.4 Expectations ................................................................................................................................ 9 2 Brand Equity and Brand Value ..................................................................................... 11 2.1 Brand Equity ............................................................................................................................. 11 2.2 Brand Value ............................................................................................................................... 12 2.3 The difference between Brand Value and Brand Equity ............................................ 13 2.4 Brand Equity as a Reflection of the Past .......................................................................... 13 2.5 Brand Equity as a Prediction for the Future ................................................................... 14 3 The Brand Value Chain .................................................................................................... 15 3.1 Stage One: Marketing Program Investment ................................................................... 15 3.2 Multiplier One: Program Quality ........................................................................................ 15 3.3 Stage Two: Customer Mindset. ............................................................................................ 16 3.3.1 Brand Awareness .............................................................................................................................. 16 3.3.2 Brand Associations ........................................................................................................................... 17 3.3.3 Brand Attitudes .................................................................................................................................. 17 3.3.4 Brand Attachment ............................................................................................................................. 18 3.3.5 Brand Activity ..................................................................................................................................... 18 3.4 Multiplier Two: Marketplace Conditions ........................................................................ 18 3.5 Stage Three: Brand Performance ....................................................................................... 19 3.6 Multiplier Three: Investor Sentiment ............................................................................... 20 3.7 Stage Four: Shareholder Value ............................................................................................ 20 4 Sponsoring the FIFA World Cup 2014 ........................................................................ 21 4.1 FIFA .............................................................................................................................................. 21 4.2 Global Reach of the FIFA World Cup .................................................................................. 22 4.3 Sponsorship ............................................................................................................................... 22 4.3.2 Sponsorship and Brand Equity ................................................................................................... 22 4.3.3 Nike and adidas; World Leaders in Sponsorship Spending ............................................ 23 4.4.1 Nike and the 2014 World Cup ..................................................................................................... 24 4.4.2 Nike’s largest asset for the 2014 World Cup ......................................................................... 24 4.5.1 adidas and the 2014 World Cup ................................................................................................. 24 4.5.2 adidas’ largest assets for the 2014 World Cup ..................................................................... 25 5 Methodology ....................................................................................................................... 26 5.1 Social Media ............................................................................................................................... 26 5.2 Recap ........................................................................................................................................... 27 5.2.2 Brand Awareness ................................................................................................................. 28 5.2.3 Brand Associations .............................................................................................................. 28 5.2.4 Brand Attitudes .................................................................................................................... 29 5.2.5 Brand Attachment ................................................................................................................ 29 5.2.6 Brand Activity ....................................................................................................................... 29 6 Results ................................................................................................................................... 30 6.1 Brand Awareness ..................................................................................................................... 30 3 6.2 Brand Association ................................................................................................................... 31 6.3 Brand Attitude .......................................................................................................................... 32 6.4 Brand Attachment ................................................................................................................... 33 6.5 Brand Activity ........................................................................................................................... 34 7 Conclusion ........................................................................................................................... 35 7.2 Recommendation .................................................................................................................... 37 7.3 Limitations for this study ...................................................................................................... 39 8 References ........................................................................................................................... 40 9 Appendix .............................................................................................................................. 45 4 1 Introduction Nike is the largest sportswear company in the world, with $25 billion in earnings and a 17 percent market share (Euromonitor, 2013; Nike, 2014). The second largest, adidas, has $20 billion in sales and 12 percent share of the market (Euromonitor, 2013; adidas, 2014). Nike officially achieved $1.9 billion in football revenue in 2013 (Nike, com). adidas, which didn’t report officially, is believed to have an annual revenue of $2.4 billion in its football division in 2013. adidas and Nike combined are responsible for 80% of the world wide football sales (Euromonitor, 2014). adidas has been a primary sponsor of the World Cup and an official partner of FIFA since 1970, and recently renewed that deal until 2030. In the same year adidas also supplied the official World Cup Ball, and has been doing so ever since (FIFA, 2014). Nike is relatively new to the market, debuting with the 1994 World Cup, which was held in the United States (Nike, 2014). 1.1 Reason for this research
Load more

Recommended publications
  • Brand Loyalty Reloaded
    RED P APER BR AND LOYALT Y RELOADED 2015 KEVIN ROBERTS EXECUTIVE CHAIRMAN ABSTRACT This is a “red” rather than “white” paper because Saatchi & Saatchi operates from the edges, zigs when others zag. Red is the color of passion, hope and optimism. Red is the color of spirit, the root word of inspiration. This paper is a discursive view of brand loyalty as it applies to the marketing imperatives of 2015. For a CEO, brand loyalty is the ultimate business deliverer, a f low state, but the hardest to achieve; more alchemy than science. Beyond Reason. This paper surveys recent literature about loyalty framed by our Lovemarks philosophy regarding the future beyond brands, but more particularly, it proposes that mastering the emotional dimensions of marketing is by far the most important requisite of an enterprising life in business. AUTHOR Kevin Roberts is New York-based Executive Chairman of Saatchi & Saatchi and Head Coach of Publicis Groupe, the world’s third largest communications group. Saatchi & Saatchi is one of the world’s leading creative organizations with 6500 people and 130 offices in 70 countries and works with six of the top 10 and over half of the top 50 global advertisers. Kevin Roberts started his career in the late 1960s as a brand manager with iconic London fashion house Mary Quant. He became a senior marketing executive for Gillette and Procter & Gamble in Europe and the Middle East. At 32, he became CEO of Pepsi-Cola Middle East; and later Pepsi’s CEO in Canada. In 1989, Roberts moved with his family to Auckland, New Zealand, to become Chief Operating Officer with Lion Nathan.
    [Show full text]
  • BRAND NAME PRODUCTS Predicting Market Success New
    pass_a01ffirs.qxd 7/25/06 11:48 AM Page v PrediPredictingcting MarketMarket SuccessSuccess New Ways to Measure Customer Loyalty and Engage Consumers with Your Brand ROBERT PASSIKOFF, PHD John Wiley & Sons, Inc. pass_a01ffirs.qxd 7/25/06 11:48 AM Page viii pass_a01ffirs.qxd 7/25/06 11:48 AM Page i Praise for Predicting Market Success “Brand marketing is at a crossroads, and Robert Passikoff shows the way to the future—shattering conventional branding wisdom with one hand, and giving actionable advice with the other. Predicting Market Success delivers the key in- gredients for breakthrough marketing strategies: a clear-headed understanding of brands, and a predictive approach to measuring them.” Marc E. Babej President, Reason, Inc. “In the newly created world of utility deregulation, companies like KeySpan need to be able to differentiate themselves from their competitors. Predicting Market Success provides an easy to understand manual for applying engagement metrics to the brand, and defining what values create differentiation to create a successful brand platform for success.” Bob Catell Chairman & CEO, KeySpan Energy “Managers who cannot accurately measure and predict the performance of their brands cannot succeed. They are doomed to failure. This book provides an excellent road map with proven measurement tools. If managers follow it, they will not just succeed, they will dominate their competition.” Larry Chiagouris, PhD Associate Professor of Marketing, Lubin School of Business, Pace University “In a world where any marketer’s most important skill is dealing with con- stant change, Robert Passikoff is consistently the best signpost for what will happen next. His book will help marketers be more nimble and more purpose- ful in our nimbleness.
    [Show full text]
  • Why Are Legos So Expensive?
    Why Are LEGOs So Expensive? By Eamon Murphy Posted 2:30PM 08/24/11 Mattel, Time Warner, Walt Disney, Family Money, Features Comments Print Text Size A A A | Email There's a question that echoes across the Internet, on blogs and message boards, and in the content of a specialty wiki called Brickipedia: "Why are Legos so expensive?" The plaintive cries abound: "Sorry for the uninvited rant, but what is the deal with the price of Legos? They're little blocks of molded plastic. $240 is a good deal for this?" "Any fans of Lego notice that, even if the price were cut in half, they'd still be expensive as hell?" "The price of Legos has always sucked, especially for a kid trying to convince his mom to buy the sets. The larger sets sell/sold for anywhere between $60-$120." "The price of Legos reminds me of gold stock prices." Perfectionist Beginnings Lego bricks and minifigures (to use the official term for the tiny yellow mannequins that represent humanity in the world of Lego toys) are made by the LEGO Group, a privately held company headquartered in Billund, Denmark. Founded in 1932 by a carpenter named Ole Kirk Christiansen, the LEGO Group "has passed from father to son and is now owned by Kjeld Kirk Kristiansen, a grandchild of the founder," according to the company website. Despite being private and family-controlled, the LEGO Group is the third-largest toy manufacturer by sales, behind Mattel (MAT) and Hasbro (HAS) and ahead of Japanese giants Bandai-Namco and Takara Tomy.
    [Show full text]
  • Comparing the Brand Strengths of Real Madrid & the New York Yankees
    Syracuse University SURFACE Syracuse University Honors Program Capstone Syracuse University Honors Program Capstone Projects Projects Spring 5-1-2012 Marketing Pastimes: Comparing the Brand Strengths of Real Madrid & The New York Yankees Colin Wilson Powers Syracuse University Follow this and additional works at: https://surface.syr.edu/honors_capstone Part of the Sports Management Commons, and the Sports Studies Commons Recommended Citation Powers, Colin Wilson, "Marketing Pastimes: Comparing the Brand Strengths of Real Madrid & The New York Yankees" (2012). Syracuse University Honors Program Capstone Projects. 157. https://surface.syr.edu/honors_capstone/157 This Honors Capstone Project is brought to you for free and open access by the Syracuse University Honors Program Capstone Projects at SURFACE. It has been accepted for inclusion in Syracuse University Honors Program Capstone Projects by an authorized administrator of SURFACE. For more information, please contact [email protected]. ABSTRACT In March of 2012, Forbes Magazine ranked the most valuable brands in all of sports. Trailing only Manchester United’s $2.235 billion valuation, the next most valuable franchises are Spain’s Real Madrid of La Liga BBVA, and Major League Baseball’s New York Yankees. As the two of the three most dominant brands in all of sports, Real Madrid and the New York Yankees are frequently mentioned in the same context as one another, but rarely discussed through more extensive market research comparing their brand management strategies. By utilizing Kevin Keller’s acclaimed Customer-Based Brand Equity model, the relative strength of the brands for Real Madrid and the New York Yankees will be assessed based on their ability to successfully integrate six core components within their brand: brand salience, brand performance, brand imagery, brand judgments, brand feelings, and brand resonance.
    [Show full text]
  • Predicting Market Success Predicting Market Success
    pass_a01ffirs.qxd 7/25/06 11:48 AM Page v PrediPredictingcting MarketMarket SuccessSuccess New Ways to Measure Customer Loyalty and Engage Consumers with Your Brand ROBERT PASSIKOFF, PHD John Wiley & Sons, Inc. pass_a01ffirs.qxd 7/25/06 11:48 AM Page viii pass_a01ffirs.qxd 7/25/06 11:48 AM Page i Praise for Predicting Market Success “Brand marketing is at a crossroads, and Robert Passikoff shows the way to the future—shattering conventional branding wisdom with one hand, and giving actionable advice with the other. Predicting Market Success delivers the key in- gredients for breakthrough marketing strategies: a clear-headed understanding of brands, and a predictive approach to measuring them.” Marc E. Babej President, Reason, Inc. “In the newly created world of utility deregulation, companies like KeySpan need to be able to differentiate themselves from their competitors. Predicting Market Success provides an easy to understand manual for applying engagement metrics to the brand, and defining what values create differentiation to create a successful brand platform for success.” Bob Catell Chairman & CEO, KeySpan Energy “Managers who cannot accurately measure and predict the performance of their brands cannot succeed. They are doomed to failure. This book provides an excellent road map with proven measurement tools. If managers follow it, they will not just succeed, they will dominate their competition.” Larry Chiagouris, PhD Associate Professor of Marketing, Lubin School of Business, Pace University “In a world where any marketer’s most important skill is dealing with con- stant change, Robert Passikoff is consistently the best signpost for what will happen next. His book will help marketers be more nimble and more purpose- ful in our nimbleness.
    [Show full text]
  • How Esports Players Create Brand Loyalty Through Online Engagement
    Sami Tarkiainen How eSports players create brand loyalty through online engagement Metropolia University of Applied Sciences Bachelor of Business Administration International Business and Logistics Bachelor’s Thesis 12.4.2020 Abstract Sami Tarkiainen Author How eSports Players Create Brand Loyalty Through Online Title Engagement Number of Pages 45 pages + 1 appendices Date 11 April 2020 Degree Bachelor of Business Administration Degree Programme Degree Programme in International Business and Logistics Instructor/Tutor Daryl Chapman, Title (Senior Lecturer) This thesis contains three different research questions, which are the following: 1. How the eSports players fans engage in the online community 2. How the online community drives brand loyalty 3. The actions players make that have an effect on fans feelings Who would have known back in the late ‘50s, when the first video game was invented and video gaming phenomenon started, that in the 21st century it would be a major phenomenon, where hundreds of millions of players from all around the world are trying to win gaming tournaments and to get fame for itself. This phenomenon is called eSports. The main reason for this thesis is to get an idea of how eSports players create and could create brand loyalty for themselves through social media. This subject has never been studied before and since the gaming industry is growing every year, it is worth of analysing this phenomenon. The behavior of the fans in the online community is divided into different segments. The behavior of the streamers seems like having a major role in getting either positive or negative feedback from the fans.
    [Show full text]
  • Would You Have Guessed This Is the Apparel Retailer Consumers Are Most Loyal To?
    Would You Have Guessed This Is the Apparel Retailer Consumers Are Most Loyal to? By: Motley Fool Posted: 4/18/2015 11:41:00 AM Referenced Stocks: ANF;ARO;GPS;LB Source: Flickr user Roderick Eime. To put it mildly, Americans love shopping for clothes and accessories. How do I know? Because according to data aggregator Statista, the total dollar amount of clothing store sales in the United States has grown from just $85.4 billion in 1992 to a whopping $178.5 billion in 2013. Furthermore, more than 95,000 people are currently employed by the retail industry. Take my word for it: Americans love to shop for the latest in fashion! Unfortunately, there are tens of thousands of retail apparel stores for consumers to choose from, complicating their choice. As has been observed in a number of industries, too much choice can actually be overwhelming, and a detriment to sales. This is where having strong brand loyalty comes into play, as it creates a loyal customer base that retailers can count on. Of course, measuring brand loyalty isn't cut-and-dried in the apparel industry. So for that, we'll turn to Brand Keys and its 19th annual Customer Loyalty Engagement Index . Why brand loyalty matters Brand loyalty plays two key roles for apparel retailers. Source: American Eagle Outfitters, Facebook. First, loyal customers serve as brand ambassadors, sometimes without even realizing it. Think about teens bearing the American Eagle Outfitters logo across their shirts. It serves to identify the wearer with that brand and its culture, but it also sends a not-so-subtle message to that wearer's friends that they too should probably consider buying American Eagle branded clothing.
    [Show full text]
  • How to Get U.S. Market-Ready Brand Keys' 2019 Customer Loyalty
    FEBRUARY 1, 2019 | MODERN DISTILLERY AGE VOLUME 10 | NUMBER 4 Brand Keys’ 2019 Customer How to Get U.S. Market-Ready Steve Raye, an longtime drinks business consultant, has written Loyalty Engagement Index How to Get U.S. Market-Ready (Positive Press, 300 pages, e-book, $24.99). “Growing concerns regarding privacy and data security have reached a tipping point, driven by an astonishing increase in consumer expectations for trust and transparency in the brands they purchase,” according to Brand Keys’ 24th annual Customer Loyalty Engagement Index (CLEI), conducted by the New York-based brand engagement and customer loyalty research consultancy. Biggest Shift In Expectations For Trust . Ever! “Trust — an engagement factor in every product/ service category — has become the indispensable connective tissue between brands and customer loyalty,” said Robert Passikoff, President of Brand Keys. “Consumer expectations for that single value have increased across every category and brand we track, on average by 250+% since 2018. Consumer “I wrote it as a primer for everyone in the wine and spirits business, expectations increase each year — normally in the 2% domestic and imported, to make it easier to understand how to navigate the to 25% range. This is an unprecedented spike.” complexities of the Three-Tier System,” Raye said. “It’s particularly directed at Where “Trust” Matters Most In Alcoholic new-to-the-U.S. and new-to-the-world brands looking for creative, practical Beverage Category ways to penetrate and expand their business. Less lecture, more useful tools, Individual attributes, benefits and brand values strategies and case histories.” make specific contributions to consumer brand The book is available in the U.S.
    [Show full text]
  • Using Public Relations Research to Drive Business Results
    Using Public Relations Research to Drive Business Results by Katharine Delahaye Paine President & CEO, K.D. Paine & Partners Pauline Draper Senior Vice President, Millward Brown Precis Angela Jeffrey, APR Vice President Editorial Research, VMS Members, Commission on Public Relations Measurement & Evaluation Published by the Institute for Public Relations January 2008 Using Public Relations Research to Drive Business Results By Katharine Delahaye Paine, Pauline Draper and Angela C. Jeffrey Copyright © 2008, Institute for Public Relations www.instituteforpr.org 2 Using Public Relations Research to Drive Business Results Katharine Delahaye Paine Pauline Draper Angela C. Jeffrey Katharine Delahaye Paine, is the founder of KDPaine & Partners LLC, a leader in PR and social media measurement. Paine writes the first blog and the first newsletters for marketing and communications professionals dedicated entirely to measurement and accountability. Her book, Measuring Success, the Data-Driven Communicator’s guide to Measuri ng Public Relationships was published in the fall of 2007. Katie was an initial founder and former chair of the Institute for Public Relations Commission on Public Relations Measurement & Evaluation. She served as the US liaison to the European Standards Task Force to set international standards for media evaluation. She writes a regular column for PR News on corporate image and crisis communications and contribu tes to PR News, Communications World, PRWeek, Business Marketing and New Hampsh ire Magazine. Pauline Draper is Senior Vice President, Millward Brown Precis, the division of Millward Brown that specializes in analysis of media output on a quantitative and qualitative basis. Draper was one of the founders of Precis and heads up the division in the Americas.
    [Show full text]