Assignment
Basketball and shoes Sportswear manufacturers rely on endorsement deals with top stars to promote new products and maintain visibility of their brands. In sports such as soccer and rugby, Adidas-Salomon has scored some notable coups. The group has had a long marketing relationship with David Beckham, arguably the most famous sportsman on the planet, and recently used him in a television advertisement with Jonny Wilkinson, the English rugby player. With Beckham regularly appearing on the front pages of newspapers and Wilkinson appearing for England in the Rugby World Cup, the pair have the potential to generate significant benefits for Adidas. However, while Adidas can boast a strong position in soccer and rugby, it risks losing ground in the US, where the sports barely register. The US is the largest athletic shoe market in the world and basketball endorsements are what drive sales. This summer Nike, Adidas's main rival, signed the hottest prospect in the sport from under its nose. Together with Reebok, Adidas was in the running to sign a sponsorship deal with Lebron James.
But the player, who made his NBA debut for the Cleveland Cavaliers in 2003, opted to go with Nike after a carefully orchestrated wooing campaign. The rejection of Adidas could yet have repercussions for the German group. As Nike showed with its sponsorship of Michael Jordan in the 1980s, the right basketball star can lead to huge increases in sales. Indeed, Jordan helped to transform Nike from a little-known athlete shoemaker into a global sports brand. With Reebok diversifying into sponsorship of hip hop stars such as 50 Cent, the time may be right for Adidas to consider a subtle change of strategy if it is to avoid losing market share.
Question
1 Why is sporting activity so important to Adidas and Nike?
2 What might the ‘subtle change of strategy' involve for Adidas?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.