Addidas or Nike

Definitly Addidas. I read the article Nike Challenges Addisas on its Own Turf at http://www.msnbc.msn.com/id/17282642/ In this article, I read that Addias is a German brand that has payed the German Soccor Association to play with Addias equipment and shoes since the year 1954, but Nike comes in all high and mighty and says they'll pay the association 49 million dollars more a year than Addias pays. Addidas currently pays the German Soccer Federation $14 million dollars and Nike says they'll pay $63 million a year. And they are going to the 'table' to discuss all this, which means they might start bidding. I think this is pretty dumb, quite honestly. They are paying major money for these people to wear their shoes in the biggest sporting event in that country, but still. It's ridiculous. But really, they are being very smart. Nine months after German hosted the 2006 Socccer World Champiionship, the birth rate had increased (positive thing) by 10-15%, the GDP grew 2.7 % and Addidas shares were rising as well. I think this is very interesting. Why is all this being affected by a soccer game? Well.... the birth rate sounds like a baby boomers kind of story (everybody's happy....nine months later there are a bunch of rugrats). I guess all of htis makes me upset becaue I love Addidas. And Nike is such a MONOPOLISTIC Economy. Direct quote here, "Our goal is to dominate the [soccer] brand by 2010," Nike marketing vice-resident Trevor Edwards told Business week.' Well, that doesn't sound at all dominating or scary. Anyway, as of now, the Germans haven't made a decision. They'll discuss it on March 9th.

This really relates to economomics because it is discussing a monopolistic economy. But more importnatly it is showing the impact that marketing can have on the quantity demanded. After all, we see in this article that after the Soccer World Championship, wheere the Germans were wearing their Addidas kicks, the sales for Addidas in that country rose as well. What I think is most interesting, is that the quantity supplied to the Soccer association will really dictate the quantity demanded in a different way than normal. normally, the more that is supplied in the MARKET, the less demand there is for the product, and the less supplied in the MARKET the more demand. In this case, the more soccer players inthe association that are wearing the shoes, the more the people want the product. Now, I know that the quantity supplied I am talking about is not in the market but rather in the marketing, but it's interesting to think about this. I suppose this happens a lot though. The more often you see a commerical on TV for something, the more you will want that product....so what do you think....Addidas or Nike? Is Nike trying to become the next Hitler? And Will the German Association take the Nike's SWEET deal or stick to tradition?