This report should analyse the current brand perceptions of Portuguese consumers about the brand Decathlon, find strengths and weaknesses in the current positioning and give recommendations for Decathlon on how to improve their current situation in the market by building a stronger brand.
The Sportswear industry in Portugal in the year 2015: The economic downturn is over; Portuguese economy is recovering. This positive economic trend also influenced the sportswear industry, which grew by 2% to a total market volume of 775 m. EUR.
The clear industry leader with a market share of 24% is Nike Retail BV. Nike managed to build up a really strong brand in Portugal over the past years. One of the key success factors for the brand image has been using Cristiano Ronaldo, the sports idol of Portuguese people, as a brand ambassador. In the shadow of Nike, also the second force in the industry, Adidas managed to grow by 6% in 2015.
The prospects for the sportswear industry are optimistic. Nike and Adidas are expected to stay the most popular brands with their technological innovations, heavy marketing campaigns and focus on outstanding designs.
This report is neither about Nike nor about Adidas. It is about a brand that is quite different but at the same time a direct competitor of those brands: Decathlon. Decathlon is acting in two major areas: Sportswear and Sports equipment. Regarding its strategy, the size of the stores and the range of the product offer, Decathlon differs a lot from Nike and Adidas. But surprisingly, Nike and Adidas are seen as the main direct competitors of Decathlon by Portuguese consumers. In Portugal the brand is mostly perceived as a sportswear brand. The second big section, the sports equipment product offer, seems not to be a strong enough differentiator to position Decathlon in another direction.
Clearly, for Decathlon, with its different focus, it is hard to compete with the leading brands in their strong area of sportswear. The key could be in differentiating from these brands and focusing on different areas with more promising potential (e.g. use the growing popularity of outdoor activities).
Table of Contents
1. INTRODUCTION
2. MARKET ENVIRONMENT
2.1 DECATHLON
2.2 MAIN COMPETITORS
2.2.1 Nike
2.2.2 Adidas
2.2.3 Sport Zone
3. BRAND EXPLORATORY
3.1 METHODOLOGY
3.2 BRAND SALIENCE
3.3 BRAND PERFORMANCE
3.4 BRAND IMAGERY
3.5 BRAND JUDGEMENTS
3.6 BRAND FEELINGS
3.7 BRAND RELATIONSHIP: RESONANCE
3.8 POINTS OF PARITY (POP) AND POINTS OF DIFFERENCE (POD)
3.9 FINDINGS
3.10 CONCLUSIONS AND RECOMMENDATIONS
3.11 LIMITATIONS
Project Objective and Themes
The primary goal of this report is to analyze the brand perception of Decathlon among Portuguese consumers, identify strengths and weaknesses in its current market positioning, and provide actionable recommendations to build a stronger, more differentiated brand identity.
- Market environment analysis of the Portuguese sportswear industry.
- Benchmarking Decathlon against main competitors (Nike, Adidas, Sport Zone).
- Customer-based brand equity assessment (Salience, Performance, Imagery, Feelings, Resonance).
- Evaluation of points of parity and points of difference to improve brand positioning.
- Strategic recommendations for enhancing consumer engagement and market differentiation.
Excerpt from the Book
Brand Performance
Following salience on Keller’s customer-based brand equity pyramid, there are two very important building blocks: performance and imagery. Both aim at helping companies establishing a brand image in customers’ minds (Keller, 2001).
In Keller’s approach, Brand Performance “is the way the product or service attempts to meet customers’ more functional needs.” (Keller, 2001) It can be divided into five major benefits and attributes:
a) Primary Characteristics and Supplementary Features of the Product
Decathlon aims to deliver its customers a good quality over money. With 28 points of sale in Portugal, they aim to provide high quality sportswear and equipment for people to enjoy the practice of sports. From Q11 (Appendix 5), it can be seen that respondents on average agree with the statement that Decathlon brand has good quality (70 out of 100).
b) Product Reliability, Durability, and Serviceability
As previously mentioned, having high quality products is a must for Decathlon brand. To gain the trust of Portuguese consumers, the brand has also increased the amount of products produced within Portuguese borders. Besides that, the brand has proven several times through partnerships with NGOs that it is not only aiming to improve the durability of the products, but also to save the environment (Decathlon website). Changing the production techniques by incorporating used products to produce new ones was one of their internal strict policies to produce as green as possible. From the respondents’ answers, it is noticeable that consumers perceive Decathlon products as both reliable and durable (each with 4 stars on average out of 5). Regarding serviceability, Decathlon provides repair services in case consumers have problems with their equipment. This helps the brand establishing more trust with consumers and empowering brands’ reliability.
Summary of Chapters
INTRODUCTION: This chapter provides an overview of the sportswear industry in Portugal, the competitive landscape, and the research objectives regarding Decathlon's brand perception.
MARKET ENVIRONMENT: This chapter details the background of Decathlon, its product strategy, and provides a comparative analysis of its main competitors: Nike, Adidas, and Sport Zone.
BRAND EXPLORATORY: This chapter presents the comprehensive research findings, evaluating Decathlon across multiple dimensions of brand equity including salience, performance, imagery, feelings, and consumer resonance, ultimately offering conclusions and recommendations for future improvement.
Keywords
Decathlon, Brand Management, Sportswear Industry, Portugal, Market Positioning, Consumer Perception, Brand Equity, Nike, Adidas, Sport Zone, Brand Salience, Brand Performance, Utilitarian Motives, Marketing Strategy, Competitive Analysis.
Frequently Asked Questions
What is the core focus of this project?
The project focuses on analyzing how the brand Decathlon is perceived by Portuguese consumers in order to provide strategic recommendations for improving its brand positioning in the sportswear market.
What are the central themes covered in this report?
The report covers the competitive landscape of the Portuguese sportswear market, brand awareness (salience), product performance, consumer imagery, and the strength of the customer-brand relationship.
What is the primary goal of the research?
The primary goal is to find strengths and weaknesses in Decathlon's current positioning compared to competitors like Nike and Adidas, and to suggest ways to build a stronger brand.
Which scientific method was used to gather data?
The research employed a mixed-methods approach: initial qualitative research through seven semi-structured in-depth interviews, followed by quantitative research using an online survey with 144 valid responses.
What key aspects are discussed in the main part of the report?
The main part analyzes Decathlon's brand equity based on Keller’s pyramid, focusing on performance, imagery, judgements, and resonance, while also evaluating points of parity and points of difference against competitors.
Which keywords best characterize this work?
Key terms include Brand Equity, Decathlon, Market Positioning, Sportswear, Consumer Perception, and Competitive Strategy.
Why are Nike and Adidas considered the primary competitors in the report?
Despite Decathlon’s different business model, the research found that Portuguese consumers consistently compare Decathlon against these industry leaders when considering their purchase decisions.
How does the "utilitarian nature" affect Decathlon's brand image?
The research suggests that because Decathlon is primarily perceived as a practical, "value for money" store for functional goods, it lacks the "ego-expressive" and trendy characteristics that customers associate with premium brands like Nike or Adidas.
What recommendation does the report make regarding the Decathlon blog and app?
The report recommends expanding these platforms beyond simple product and price promotion to include community-building features like training tips, event information, and social engagement to foster a stronger connection with consumers.
- Citation du texte
- Benyi Heider (Auteur), Daniela Martins (Auteur), Ivana Cizmar (Auteur), Miguel Loures (Auteur), Rita Barakat (Auteur), 2016, Brand management. Measuring the brand equity of Decathlon in Portugal, Munich, GRIN Verlag, https://www.grin.com/document/354882
