Brand Extensions: A Vehicle to Category Growth in Sports Apparel

Frederick Lewis Pettit

Student thesis: Master thesis

Abstract

The Sports Apparel market has seen continuous growth even through the recent recession, which impacted upon consumer markets so heavily. The industry dynamics are continually changing with brands looking for new ways to activate and increase their market share in one category, while trying to defend their existing market share in another. Sports apparel brands are no longer just considered suppliers of functional equipment. The move in to categories normally associated with street wear has meant that there is value to be gained, while currently 2 goliaths lead the way – Adidas & Nike. By trying to navigate through the global sub-cultures associated with geo-demographic markets which can differ drastically on a category-to-category basis, brands are looking at how to manage their brand extension strategy in order to capture the expected revenue increases that experts believe will drive the industry over the next 5 years. The Study considers consumers within Denmark as an indicator to trends within the Scandinavian market place. Using qualitative techniques to compliment a case study on Adidas, in order to look at consumer receptiveness to brand extensions offered by sports apparel brands. Including interviews by Adidas employees (current and former), the paper references consumer behaviour and segmentation theory along with Category Management to built on the Adidas case study, as a compliment to empirical findings by the researcher, in the form of qualitative consumer interviews. Drawing on this, the author then presents the findings on a topical basis, in order to draw key findings and conclusion regarding the consumer behaviour indentified and how this impacts upon competitors within the industry. Lastly the author is able to take a brand specific perspective (Adidas) to provide relevant recommendations as to further strategic decisionmaking, Adidas should be considering with regard to the use of brand extensions as a vehicle for incremental category growth.

EducationsMSc International Marketing and Management, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2014
Number of pages104