Monday, April 29, 2019
Article Review and Response (Read Full Directions) Essay
Article Review and Response (Read respectable Directions) - Essay Example leave behind be left without a single high-profile league sponsorship, even as Reebok will continue to sponsor the NHL, Adidas swallowed up Reebok in 2006, but Adidas as a brand will be left out in the cold so to speak. From a market point of view, moreover, exiting the NBA would dream up that Adidas is potentially ceding more mind share to Nike and Under Armour, even as financial considerations, marketing strategy, and marketing budgets went into the decision to end the NBA sponsorship arrangement. For those who will be left to compete for a new NBA invest and uniform deal, the projections are that the price will be much higher than what Adidas paid for this up-to-date subsisting sponsorship contract, which translates to amounts that are much greater than $400 million (Tabuchi and Belson).For Nike, what is at stake is extending its dominance of American sportswear, and preventing its sudden rival Under Armour from gaining market share. For Under Armour, the sponsorship deal can catapult its brand catch and marketing reach beyond the US and towards other markets where the NBA has significant traction (Tabuchi and Belson).While on the wax ending the sponsorship deal looks bad for Adidas, the company may have figured out that the NBA is not the high hat vehicle for its brand advertising, in terms of return on marketing dollars. To be sure ,even with the current sponsorship arrangement in vest, the article notes that the fortunes of the brand have been declining in the US for some time, and in accredited product categories, such as shoes for instance, Nike has outclassed Adidas, and Under Armour too has come to gain some success without the NBA. Moreover, in markets outside the US, Adidas may have enough marketing programs in place to compensate for the loss of traction from leaving the NBA (Tabuchi and Belson).On the other hand, it may be that losing the NBA sponsorship will m ake headway erode Adidas already dwindling market share and prospects in the United States. Maybe
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