Marketing and Branding Strategies Research Proposal

Marketing and Branding Strategies - Research Proposal Example Moreover, Nike controls around half of the sports foot wear and apparels market and the combined strength of Adidas and Reebok will make them able to attain almost the same market share as that of the Nike. Thus the merger will strengthen the competitive power of Adidas and Reebok. The combined company won't want to cut its own bottom line by launching a price war. Others, however, think consumers may see more products and aggressive marketing from smaller players in the industry as they work to protect their shares. (Petrecca, and Howard). The mergers are often welcomed by the consumers because of their anticipation of good quality products for cheaper prices. The inability to reduce prices may reflect as a weakness of merger among the public. Any time two competitors join forces, there is a tendency to stop competing - a concept that looks good on paper but can be deadly in-market (Howard). It is quite possible that the lack of competition and trust between the companies may force them to reduce their expenditure on advertisement like activities which will negatively impact the marketing activities of both the companies. Moreover, the reduced marketing campaign by these companies will open the doors widely for the competitors like Nike. The companies say they have already identified about $150 m... Hence these companies will get an opportunity to spent more moneys in other markets where previously these companies spent less for advertisements. Threats Often when former rivals join forces there is a tendency to try to change product lines so they don't go head-to-head. "The real danger may be in trying to reposition one brand or another to not compete. ... Both brands could be diluted in the process." (Petrecca, and Howard) The decreased competition between these companies will force them to reduce their activities which may result in spoiling of their popular products in the market. Benefit of the merging Uniting two of the world's top sports companies and creating a much stronger challenge to Nike, particularly on the global giant's home turf: the prime North American market that accounts for about half of the category's sales worldwide. (Petrecca and Howard) It is not possible for either Adidas or Reebok to challenge the supremacy of Nike in North American markets. But the merger made them capable of raising stiff challenges to Nike in these markets as well. Possible marketing strategies Retailers are in an advantageous position because of the opportunity to deal with products two famous brands. Adidas which dominates the soccer shoes market have contracts with David Beckham like soccer personalities whereas Reebok has contracts with global basketball stars like Yao Ming (Petrecca, and Howard). Thus they can utilize these sports personalities in a complementary manner conduct their marketing strategies effectively. In short, the merger between Reebok and Adidas made them capable to compete effectively with their main competitor Nike. Works Cited 1. Howard, Theresa. USA TODAY. 2005. "Adidas, Reebok lace up for