Marketing reports

The broad marketing strategy

Of  Adidas Shoes

 

Acknowledgment

 

We are very grateful to our Principle of Marketing (MKT-240) Teacher Dr Zafor Mamun, Associate Professor to give us this report to submit his as a group. We want to assure him that we are very much concentrating about this study to make this report. By this research we get much knowledge about the business activities that follow by Adidas Shoes Company as well as Broad marketing strategy. We tried to mention the whole information about our related company that you required. So we think that this report will be a perfect report to you. At last we again want to give you thanks for giving us the chance to make this report.

Table of Contents

                                                                                                                                    Page

Executive Summery…………………………………………………………………………….X

 

1.    Introduction

1.1.  Origin of the report…………………………………………………………………………………………..1

1.2.  Purpose of the Report: …………………………………………………………………………………….1

1.3.  Objectives: ………………………………………………………………………………………………………1

1.4.  Methodology…………………………………………………………………………………………………….1

1.5.  Limitation…………………………………………………………………………………………………………2

2 Historical background Adidas…………………………………………………….………….3

 

2.1 Adidas products: …………………………………………………………………………..4

2.2 Research and Development:……………………………………………………………………………………..4

2.3 Performance as core Group value:……………………………………………………………………………5

2.4 Leveraging opportunities across brand portfolio:…………………………………………………….6

2.5 Leading position in markets worldwide:……………………………………………………………….6-7

2.6 Leading through innovation and design:………………………………………………………………….7

3.0Adidas Market Strategy……………………………………………………………………..8

3.1 Acquisition / Merger:……………………………………………………………………………………………….8

3.2 Market and Product Development:……………………………………………………………………….8-9

3.3 Positioning:…………………………………………………………………………………………………………….10

3.4 Mission Statements to reach the target audience:……………………………………………….10-11

3.5Missionof marketing plan………………………………………………………………………………………11

3.6 Target market………12

3.7 Market Segments…………………………………………………………………………………………………….12

3.7.1 Geographic segmentation……………………………………………….…12

3.7.2 Demographic segmentation……………………………………………….12

3.7.3 Behavioral segmentation…………………………………………………..12

3.7.4 Psychographic segmentation………………………………………………13

3.8 Broader distribution:………………………………………………………………………………………………13

3.9 Cost leadership:………………………………………………………………………………………………………13

4.0 Market positioning: ………………………………………………………………………………………………..14

4.1 Completive scope…………………………………………………………………14

4.2 Target markets……………………………………………..……………………..14

4.3 Promotion: ………………………………………………………………………..15

4.4 Distribution:…………………………………………………………………………………16

4.4.1 Customising distribution……………………………………………………………………………………..16

5.0 SWOT Analysis foresides………………………………………………………………….17

5.1 Strengths…………………………………………………………………………………….17

5.2 Weakness………………………………………………………………………………..….17

5.3 Opportunities………………………………………………………………………………18

5.4 Threats……………………………………………………………………………………..18

5.5 Distribution…………………………………………………………………………………19

6.0Review of marketing Plan…………………………………………………………………..20

6.1Objectives Adidas…………….……………………………………………………….…….20

6.2 Consideration Of competitors…………………………………………………………….21

6.3 Our Position In Markets……………………………………………………………………21

6.4 Perceived Value…………………………………………………………………………….22

6.5 Challenges……………………………………………………………………………………22

 

6.6 Survey……………………………………………………………………………………22

6.7 Markets segments …………………………………………………..………………….22

6.7.1 Geographic segmentation……………………………………………………..……..23

      6.7.2 Demographic segmentation……………………………………………………..…….23

       6.7.3 Behavioral segmentation………………………………………………………………23

        6.8 Target Market Strategy…………………………………………………………………..24

 

7.0 Analysis of promotion Programmed situation……………………………………………….25

7.1 Product Strategy…..………………………………………………………………………..25

7.2 Pricing Strategy……………………………………………………………………………..25

7.3 Place………………………………………………………………………………………..27

7.4 Promotion………………………………….………………………………………………27

 

8.0 Analysis Of Communication Process………………………………………………………27

 

 

9.0 Develop Integrated Marketing communication Programme………………………………….28

9.1 Advertising………………………………………………………………………………………….28

9.1.1Print Media Requires……………………………………………………………………………….…..29

9.1.2 Electronic Media Requires….………………………………………………………….……….29

 9.2   Adidas Product Marketing campaign………………………………………………………..29

9.2.1 For Usual Group………………………………………………………………………………..30

9.2.2 For Niche Market…………………………………………………………………………………30

9.3    Advertising Action Plan…………………………………………………………………………30

9.4    Direct Marketing………………………………………………………………………………….31

9.5    Sales Promotion………………………………………………………………………………………………………………31

9.6    Sales promotion objectives………………………………………………………………………32

10.0 Recommendation…………………………………………………………………………………31

11.0 conclusion…………………………………………………………………………………………31

 

1.    Introduction

 

1.1. Origin of the report

This Assignment has prepared of as a part of partial fulfilment of the course “Principles of Marketing” (MKT-240) of Bachelor of Business Administration of Eastern University for Our course instructor Associate Professor Dr Zafor Mamun. He has orally authorized the task of writing this assignment to a group of five students. Groups were independently formed and the group with the consent of the instructor has approved this topic.

 

1.2. Purpose of the Report:

The objective of this report is to partially fulfil the requirement of “Principles of Marketing” (MKT-240) course and thus to learn the formal procedures involved in known to how to write a report, which is beneficial in our future progress. Otherwise another purpose of this is to know widely about the international Broad Market strategies. In addition to serve this purpose it tries to find out the broad marketing strategy.

 

1.3. Objectives:

Our Objectives is to identify the broad Marketing Strategy of Adidas Company and make a clear knowledge about their Marketing Strategies.

 

 

 

1.4.        Methodology:

The study includes basically secondary data. Our secondary data we are mainly collected from Website of Adidas Company. For making this report we only used secondary sources of information, Most of the information are collect through internet, some part of the report we also collect form the journals, Books & magazine.

 

1.5.  Limitation

Whenever we tried to collect any information about Adidas Company & own alnalisis.We faced a lot of problems. We didn’t get enough time. So there is some lacking in our information. We try to our best prepare this assignment.

 

 

2. Historical background Adidas

Adidas was founded in 1924 inGermanyby two bothers Adi and Rudolf Dassler. The company was first named Dassler shoes and later became Adidas. By the Dassler shoes being seen in the Olympics this really helped the company get it’s name known. However, in 1948 Rudolf Dassler leaves to start his own company which is now known as Puma. Once Rudolf left his brother came up with the famous three stripes logo and changed the name to Adidas. The 3 stripes were created to keep the foot stable, but ended up being the logo. Throughout the years Adidas was seen in the Olympics, and it was the leading brand making their shoes highly sought after by Olympic athletes. In 1978, Adi Dassler passed at age 78 and his wife Kathe ran the company. Six years later Kathe passed and the company was left for their son Horst Dassler to run, and three years later Horst passed at age 51. After Horst’s death Adidas ran into some major financial problems, and later Bernard Tapie comes to make an attempt to save the company.

http://www.adidas.com/com/shared/aboutadidas.asp

 

2.1. Adidas products:

• RUNNING: Shoes, spikes, socks,
• FOOTBALL: Studded boots, stockings, team-its, warm up suites
• BASKETBALL: Shoes, jerseys n shorts, team kits
• GOLF – Hats, gloves, bags, vintage clubs (golf sticks), golf
• Balls, putters,
• CASUAL: Footwear and clothing Apparels and accessories

 

• PRODUCT OFFERINGS: Comfort, durability, looks, value for money!
• COMPETENCE: The firm has a stiff competition in the Indian market. Currently, Nike is the Leading player in the industry.

 

 

2.2.        Research and Development:

The expenses set aside for Research & Development has not gone wasted. Adidas has always been coming up with innovative ideas and designs to launch fashionable and trendy products compared with their competitors. They have registered trademark rights as well as Patent Protection Policy for their key products, technologies and innovations in major markets for footwear, apparel and hardware. Adidas  leads the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. It continuously strive to generate consumer excitement and enhance brand profitability by executing a clear strategy. In everything it does, they are focused on strengthening and developing our brands to maximise the Group’s operational and financial performance and create shareholder value.

www.oppapers.com/essays/Adidas-Marketing-Strategy/265368

 

2.3.  Performance as core Group value:

Adidas’s Group mission and strategy are rooted in our desire to provide athletes with the best possible equipment to optimise their performance. This philosophy originated with our brands’ founders Adi Dassler, J. W. Foster and Gary Adams whose passion for sport inspired them to develop innovative sports products and create new sports categories. They aim to consistently perform at a level where we not only meet but exceed the expectations of their stakeholders. They strive to be closer to consumers than any of Their competitors, and their unique understanding of consumers enables them to enhance their athletic experience. In support of these efforts, They continuously optimise their sales and distribution processes and improve their customer service efforts for their retail partners.

           They make every effort to align our employees’ personal objectives with their group and brand targets and reward our staff for high achievement. Further, they are particularly focused on ensuring best-practice social and environmental standards. A commitment to constantly increase value for their share holders is at the core of their activities. This commitment to top performance differentiates us from other competitors and is a unifying principle across their multi-brand organisation.

 

2.4.  Leveraging opportunities across brand portfolio:

The strength of their brands is a key factor in our Group’s success. Within their brand portfolio, we primarily pursue two strategic priorities: Market penetration – gaining market share across all markets in which we compete, and Market development – expanding into new markets and addressing new consumer segments.

Their multi-brand approach allows them to tackle opportunities from several perspectives, as both a mass and a niche player, providing distinct and relevant products to a broad spectrum of consumers. Across all brands, they focus on increasing awareness and visibility, providing clear and consistent messaging and supporting product initiatives at the point-of-sale. In addition, they commercial success also depends on leveraging the scale of their organisation and sharing best practice across their group.

 

2.5.  Leading position in markets worldwide:

As a global organisation, they target leading market positions in all regions where they compete. In Europe, where their Group is the market leader in terms of sales, their strategy is twofold. First, they continue to strengthen their position in the major Western European markets and strive to grow their brands through well-coordinated efforts with key account partners. Secondly, they are capitalising on the strong growth opportunities in the region’s emerging markets

In North America, we see significant upside potential. As a Group, they are number two in terms of sales, but they believe they are currently under-represented in the North American sporting goods market. Therefore, we target market share expansion via a strong, consumer-driven product offering, a diversified distribution strategy, and visible and engaging communication initiatives.In Asia, where their Group is the market leader in terms of sales with number one positions in several markets, their goal is to strengthen and extend their market leadership position. Their key priority in the medium term is expanding their business in the region’s two most important markets: China and Japan. In tandem, They will also continue to capitalise on opportunities in other emerging markets in Asia such as India.

            Finally, in Latin America, our Group’s fastest-growing region for the last several years, we are focused on rapidly expanding our business in the four most important markets: Brazil, Argentina, Mexico and Chile. Our target is to take over market leadership in terms of sales by 2010.

 

2.6.  Leading through innovation and design:

They are determined to address every consumer in a specific and unique way – with product and communication initiatives that generate trade and consumer interest. As a result, we believe that technological innovation and cutting-edge design are essential to sustainable leadership in our industry.Innovation plays a significant role in differentiating their product offering in the minds of consumers

It is their objective to launch at least one major new technology or technological evolution per year.Through design partnerships and collaborations with Stella McCartney, Yohji Yamamoto, Porsche Design and Jean-Michel Basquiat we are widening our design reach and imbuing our products with the excitement consumers demand. By continually expanding their capabilities in R&D and design, they are able to introduce new products at premium price points, thus contributing to Group margin improvement.

adidas-group.corporate-publications.com/2008/gb/files/pdf/en/50.pdf

 

 

3.        Adidas Market Strategy

…

            As a leader in the sporting shoes industry, Adidas-Group is exposed to a global marketplace, offering significant growth and profitability potential for all their brands. Identifying, assessing and exploiting opportunities in a structured and organized way are fundamental for them to achieve medium- and long-term revenue and profitability goals. In addition to seizing opportunities they have continuously strive to deliver strategic initiatives at a Group and brand level in order to capture future growth and profitability.

The strategies adopted by Adidas-Group have been successfully implemented in several areas.   They always ensure that the needs of various consumer groups are fulfilled by going into partnership with high-end designers and technology.

 

3.1.        Acquisition / Merger:

Adidas-Group bought over Reebok to establish a stronger foothold in the Sports Industry. This merger is indeed a success which has achieved significant sales growth. Merger of Adidas & Reebok complement each other in competing with their competitors, Nike; and is more cost efficient and beneficiary to both brands with Reebok’s strong presence in US market and the global recognition of Adidas.

 

3.2.  Market and Product Development:

Adidas had developed strategies in their market and product. The strength of Adidas brands is a key factor in Group’s success. Within Adidas brand portfolio, they primarily pursue two strategic priorities: Market penetration – gaining market share across all markets in which we compete, and Market development – expanding into new markets and addressing new consumer segments.Adidas multi-brand approach allows them to tackle opportunities from several perspectives, as both a mass and a niche player, providing distinct and relevant products to a broad spectrum of their consumers. In this way, each brand is able to concentrate on its core competencies. Across all brands, they focus on increasing awareness and visibility, providing clear and consistent messaging and supporting product initiatives at the point-of-sale.

Adidas continuously challenge the boundaries of functionality and performance. It is their objective to launch at least one major new technology or technological evolution per year. By continually expanding their capabilities in R&D and design, they are able to introduce new products at premium price points, thus contributing to Group margin improvement.

 

 

 

 

 

3.3.        Positioning:

Adidas Group will drive future success by engaging consumers with unique interactive product approaches and rewarding point-of-sale experiences. Adidas brands must be competitive in this environment where consumers make their final purchase decisions based on availability; convenience and breadth of product offering. There are examples what Adidas had done:

• Product performance excellence

Adidas website gives their potential customer possibility to zooms the product and also to see full information even its technology. Consumer also can choose color and size easily, the website also offer product preferences by consumer behavior.

• Price performance excellence

Adidas have offer discount for specific product or promotional in their website.

• Transactional excellence

Process of buying is quite easy and easy to understand by customer. Adidas also provide their website with product tracking and account managing, so that customer cans easily tracking their order and or review their cart.

• Relationship excellence

In managing their relationship with consumer, Adidas give them services to subscribe their newsletter. Customer can contact Adidas through easy steps and if they aren’t satisfied with Adidas product, they can refund it and Adidas explain the procedure in their website. To manage their relation with small retailer, Adidas offer “Affiliate Program” by giving them procedure to get commission in sales.

rycopiero.blogspot.com/…/name-that-stands-for-competence-in-all.html

very needs fof making reports for adidas : www.scribd.com › Research › History

 

3.4.  Mission Statements to reach the target audience:

 

• The adidas Group strives to be the global leader in the sporting goods as well as shoes industry.
• With sports brands built on a passion for sports and a sporting lifestyle.
• They are consumer focused and therefore they continuously improve the quality, look, feel and image of their products and their organizational structures to match and exceed consumer expectations and to provide them with the highest value.

• They are innovation and design leaders who seek to help athletes of all skill levels achieve peak performance with every product they bring to market.
• They are a global organization, that is socially and environmentally responsible, creative and financially rewarding for their employees and shareholders.
• They are committed to continuously strengthening our brands and products to improve our competitive position.
• They are dedicated to consistently delivering outstanding financial results.

 

 

3.5. Missionof the Marketing Plan:

 

To devise a marketing plan and formulate strategies which would help in the

Achievement of the marketing objectives of the company which are:

 

• Market penetration – gaining market share across all markets in which we compete
• Market development – expanding into new markets and addressing new consumer segments
• Awareness – increasing awareness and visibility across all brands,

Providing clear and consistent messaging and supporting product

Initiatives at the point-of-sale.

 

www.answers.com/topic/adidas-group-ag

 

3.6.  Target Market:

The target market of Adidas is the urban youth with the brand proposition Competition to lifestyle. The principle consumption centers namely the metros are also a potential target market.

 

3.7.  Market Segments:

 

3.7.1.   Geographic segmentation

• Density: Urban and semi-urban cities

 

 

3.7.2.   Demographic segmentation

• Age: 15 to 35
• Income level: >Rs. 15,000
• Social class: Upper middle, lower upper and upper class
• Gender: Male and female

 

3.7.3.   Behavioral segmentation

 

      BENEFITS SOUGHT

ü      ✔ Athletes

ü      ✔ Gym regulars

ü      ✔ Sports enthusiasts

ü      ✔ Brand freaks

ü      ✔ Image seekers

 

v     BUYER – READINESS STAGE

 

v     LOYALTY STATUS

 

v     ATTITUDE

 

3.7.4.   Psychographic segmentation

• Experiences
• Achievers
• Image drivers
• Strivers

 

3.8.  Broader distribution:

Close cooperation with retailers can significantly improve the in-store experience for the product. Establishing shop-in-shop formats (e.g. with JJB and Dick’s Sporting Goods) or retail partnerships (e.g. with INTERSPORT) are examples where the company is leading the industry. Such co operations can be particularly effective in markets that have become dominated by price and lack of differentiation.

 

3.9.  Cost leadership:

 

The acquisition of Reebok has created significant opportunities to reduce and

Optimize costs, through scale benefits, back office consolidation and combined capital expenditure planning.

 

 

http://www.scribd.com/doc/4934036/Adidas-Mktg-Ppt

 

 

 

 

 

 

4.    Market positioning:

 

4.1.        COMPETITIVE SCOPES

 

ADIDAS is in the sportswear, apparel and sports accessories industry. The main competitors of ADIDAS in the industry are NIKE, and PUMA since it acquired

REEBOK in January, 2006.

 

NIKE:

Nike is currently the world leader in Sports goods industry with a brand value of $12,672 million. The company concentrates on style and technology with a high Price range of the products.

 

PUMA:

A German based company best known for its football shoes and athletic shoes.

The competition from Puma has become stronger after the 2008 Olympics in

Which the Jamaican sprinter Usain Bolt broke records and won 6 gold medals.

Bolt was wearing Puma shoes.

 

4.2.        TARGET MARKETS

The target market of Adidas is the urban youth with the brand proposition ‘Competition to lifestyle’. The principle consumption centers namely the metros are also a potential target market!

 

 

4.3.        Promotion:

The purpose of this case assignment is to evaluate Adidas’ new promotional campaign and identify the key factors affecting its success.   Promotion serves as one of the fundamental tenets in marketing mix.   Promotion is the communication of information by a seller to influence the attitudes and behaviors of potential buyers.1 (Christ). Advertising, sales promotion, and public relations comprises promotion which are used to target specific buyers.2 These three aspects of promotion work together to attract and retain potential and existing buyers and also highlights the foundation of Adidas’ promotional campaign for the Beijing Olympics.

 

Sportswear manufacturer Adidas’ recent merger with Reebok represents increased clout the firm can use exert on Nike in upcoming promotions for the Olympics.   Nike which currently holds the majority of athletic footwear market has done an excellent job promoting its products to focus on target markets. 3   Both manufacturers target the same markets which include the Basketball, Soccer, and Football athletes, as well as, Hip Hop culture. 4 Promoting sales of sportswear through the use of professional athletes has been a venture both Adidas and Nike have done very well.   However, Adidas took a big hit when Nike was capable of capitalizing on the “Hip Hop Nation”, or subculture closely intertwined with performance sportswear.  

Adidas returned with signing performing artists Jay-Z, Missy Elliott, and 50-Cent to their sportswear lines. Promotional campaigns by both Adidas and Nike reflect consumer focus when purchasing athletic apparel is not solely tied to performance, and suggests that some consumers view athletic apparel as a reflection of personality and a fashion statement.

 

www.scribd.com/doc/8760709/Adidas

4.4.        Distribution:

 

4.4.1.  Customising distribution

Adidas Group will drive future success by engaging consumers with unique interactive product approaches and rewarding point-of-sale experiences. Our brands must be competitive in this environment where consumers make their final purchase decisions based on availability, convenience and breadth of product offering. As a result, we are continuously refining our distribution proposition, concentrating on two areas: expanding controlled space and improving retail relationships. Controlled space includes: our own-retail business including e-commerce; mono-branded stores run by retail partners; shop-in-shops that we establish with our key accounts; joint ventures with retail partners; co-branded stores with sports organisations or other brands.
These formats provide us with a high level of brand control, as we either manage the stores ourselves (i.e. own retail) or we work closely with our partners (mono-branded stores, shop-in-shops, joint ventures, co-branded stores) to ensure the appropriate product offering and presentation at the point-of-sale. Brand control helps us drive sales and profitability increases and expand our market position. We intend to generate at least 35% of our Group’s revenues through controlled space in the coming years. Going forward, we will also further differentiate and segment our product offering to align our distribution more closely with a given retailer’s customer base. In addition, we are partnering with retailers to increase the level and quality of sell-through information we receive. This creates a mutually beneficial relationship that will help us become a more valuable and reliable business partner to our retailers.

www.adidas-group.com/en/investorrelations/Strategy/default.aspx

5.       SWOT Analysis foresides

 

5.1.                       STRENGTHS
Strong management team and good corporate strategy in both North American and overseas markets First movers advantage in e-commerce Brand recognition and reputation Trademark “Just Do It” Diversity and variety in products offered on the web (footwear, apparel, sporting equipment, etc.)
Strong control over its own distribution channel Strong customer base Strong financial position with minimal long term debts Innovative designs in footwear enabling consumers to design their own shoes online Brand reputation and recognition Diversity and variety in products offered on the web (footwear, apparel, sporting equipment, etc.) Adidas even offers items not available in its retail stores Emerging brand name Pricing strategy is competitive to Nike’s Merger with Salomon will allow Adidas to gain a strong foothold in the Skiing Industry Secondary web sites (i.e. soccerevolution.com to simply promote soccer, Adidas leads the market in this sport)

 

 

5.2.                       WEAKNESSES
Negative image portrayed by poor working conditions in its overseas factories E-commerce is limited to USA The direct sale to consumers is creating conflicts with its own resellers Currently available supply chain, manufacturing, and fulfillment technologies aren’t easily integrated with online build-to-order Not known for its research and development leading to innovative designsØsystems The e-commerce is limited to USA, however, has planned to expand to Canada and international in the near future Online customer service not “helpful” or easy to find out new markets.

 

5.3.                       OPPORTUNITIES
Increasing demand in the industry for products available online Increase female participation in athletics E-commerce will reduce the cost of goods sold thus improving the “bottom line” New technology and innovation to stay on top of market needs Expand e-commerce to global markets Possibility of outsourcing the web development and e-commerce to a third party developer Growing interest in the sport of Basketball. Partnering up with other retailers to sell basketball footwear and apparel Growing reputation in non-basketball sports will boost e-business E-commerce will reduce the cost of goods sold thus improving the “bottom line” Expand e-commerce to global markets Collaborate with other online retailers to offer Adidas products.

 

 

5.4.                       THREATS
Negative image due to “sweatshops” Economic downturn in North America and Asian Countries Increase in the price of providing technological solutions (e-commerce) Strong competition from some of its major challengers in all branches of the business Continuing challenges in import/export duties Negative image created by the sponsored athletes (i.e. Kobe Bryant and his sexual assault case) Increase in the Price of Raw materials Nike’s strong reputation in the footwear and apparel industry Continuing challenges in import/export duties Threats to free trade and foreign currency fluctuations Possibility of distress from growing beyond its capabilities.

www.oppapers.com/essays/Nikes-Value-Chain/128546

 

5.5. Distribution

Adidas is a global sports shoe giant company. It is the largest seller of athletic footwear in the world, holding the lion share of 45% of the global market. The company has production facilities inAsia, sales facilities in almost 200 countries, and customer service and other operational units worldwide. Previous it is observed that Adidas as other company were selling footwear through channel partners. We usually purchase shoes from shop when it is need. However looking growth ofIndiaretail industry, they try to reach ‘n’ no. of consumers to know their needs betters, and develop their product accordingly.

 

 

 

 

 

 

 

 

 

 

Integrated Marketing Communications plan

 

6.0 Review of marketing plan

As a leader in the sporting shoes industry, Adidas-Group is exposed to a global marketplace, offering significant growth and profitability potential for all their brands. Identifying, assessing and exploiting opportunities in a structured and organized way are fundamental for them to achieve medium- and long-term revenue and profitability goals. In addition to seizing opportunities they have continuously strive to deliver strategic initiatives at a Group and brand level in order to capture future growth and profitability.

 

 

6.1 Objectives Adidas:

• Create brand Awareness.
• To Develop Market by increasing users.
• Increasing Brand Image.
• Increasing Market growth.
• To achieve Maximize market shares Leadership.
• Maximize profit while defending market share.
• Current profit Maximization. And
• Reduce expenditure.

 

 

 

6.2 Consideration of Competitors:

Competing Brand	Adidas	Nike	Puma
Brand Position	1st	2nd	4th
Price position	3rd	2nd	4th
Distribution	Distributors and has company vehicle	Distributors and has company vehicle	Distributors and has company vehicle
Advertising	Electronic media Newspaper, Billboard. Print media, Internet web.	Electronic media	Electronic media, Newspaper, Billboard
Sales Promotion	Buy 2 pair shoes get 1 T-shirt free	None	None

 

 

 

 

 

6.3 Our Position in Market:

Qualitative: At present we are in the Its position in the market.

 

6.4 Perceived value:

SL No	Brand	Attributes
1	Adidas	Very Known brand, good quality, Packaging & price advantage.
2	Nike	Known brand, good quality.
3	Reebok	Known brand, good quality & price advantage.

 

6.5 Challenges:

• Fluctuation in price of Last goods.
• Make habitant of social elite class consumer towards Shoes.
• Reducing the competitor’s market share.
• Introducing products to all class consumers heavily.
• Make the new users dependably onto Adidas shoes.

 

6.6 Survey:         

ü      Test Performance

ü      Observing customer behavior towards the product

ü      Observing the retailer interest on selling the product.

 

6.7 Market Segments:

6.7.1 Geographic segmentation

• Density: Urban and semi-urban cities

 

6.7.2 Demographic segmentation

• Age: 15 to 35
• Income level: >Rs. 15,000
• Social class: Upper middle, lower upper and upper class
• Gender: Male and female

 

6.7.3 Behavioral segmentation:

Market segmentation based on differences in the consumption behavior of different groups of consumers their life-styles, patterns of buying and using, patterns of spending money and time, etc. One of the five common segmentation strategies, its objective is to define specific niches that require custom tailored promotion.

 

6.7.4 Psychographic segmentation

• Experience
• Achievers
• Image drivers
• Strivers

 

 

 

 

6.8 Target market Strategy:

 

ü          The adidas Group strives to be the global leader in the sporting goods as well as shoes industry.

ü          With sports brands built on a passion for sports and a sporting lifestyle.

ü          They are consumer focused and therefore they continuously improve the

Quality, look, feel and image

ü    Their organizational match and exceed consumer expectations and to provide them with the highest value.

ü          They are innovation and design leaders who seek to help athletes of all skill levels achieve peak performance with every product they bring to market.

ü          They are a global organization, that is socially and environmentally responsible, creative and financially rewarding for their employees and shareholders.

ü          They are committed to continuously strengthening our brands and products to improve our competitive position.

ü          They are dedicated to consistently delivering outstanding financial results.

 

Target customer of Adidas shoes: Specially sports people are the target customers of adidas shoes. They produce this product specially age and gender based. They segmented this product for three types of people.

• Male
• Female
• Kids

 

7.0 Analysis of promotion program situation

 

7.1 Product Strategy:

Adidas Group is to lead the sporting goods industry with brands built on a passion for sports and a sporting lifestyle. We continuously strive to generate consumer excitement and enhance brand profitability by executing a clear strategy. In everything we do, we are focused on strengthening and developing our brands to maximise the Group’s operational and financial performance and create shareholder value.

7.2 Pricing Strategy:

To set about  to percieve value pricing, this company charges high price for quality based product. This company follows mainly competition based pricing. The major competitors of adidas are: Nike,Puma, Reebok. They make the pricing strategy through compare to these 3 major competitors.

To setting prices they are considering `Going rate` strategy. In going brate strategy company sets prices based on `What competitors are charging`. They follow another option to using competition based pricing. Which is `Sealed-Bid`. In this process company sets pricess based on `What they think competitors will charge. 

The price position of Adidas is 3rd. 1st is Reebok, Second is Nike and last position in prising strategy is puma. 

 

 

 

7.3 Place:

Adidas shoes are carried by multi-brand stores and the exclusive Adidas  stores across the globe. Adidas sells its product to about 20,000 retail accounts in theU.S.and in almost 200 countries around the world. In the international markets, Adidas sells its products through independent distributors, licensees and subsidiaries. Independent distributors need not adapt to local pressures because the 4Ps of marketing are managed by distributors.

7.4 Promotion:

Promotion is largely dependent on finding accessible store locations. It also avails of targeted advertising in the newspaper and creating strategic alliances. Adidas has a number of famous athletes that serve as brand ambassadors such as the Brazilian Soccer Team (especially Ronaldino, Renaldo, and Roberto Carlos), Lebron James and Jermane O’Neal for basketball, Lance Armstrong for cycling, and Tiger Woods for Golf.

Adidas also sponsors events such as Hoop It Up and The Golden West Invitational. Adidas brand images, the Adidas name and the trademark swoosh, make it one of the most recognizable brands in the world. Adidas brand power is one reason for its high revenues. Adidas quality products, loyal customer base and its great marketing techniques all contribute to make the shoe empire a huge success.

 

 

8.0 Analysis of communication process:

 

There Group will drive future success by engaging consumers with unique interactive product approaches and rewarding point-of-sale experiences. There brands must be competitive in this environment where consumers make their final purchase decisions based on availability, convenience and breadth of product offering. As a result, They are continuously refining there distribution proposition, concentrating on two areas: expanding controlled space and improving retail relationships. Controlled space includes: They own-retail business including e-commerce; mono-branded stores run by retail partners; shop-in-shops that we establish with our key accounts; joint ventures with retail partners; co-branded stores with sports organisations or other brands.
These formats provide us with a high level of brand control, as they either manage the stores ourselves (i.e. own retail) or we work closely with their partners (mono-branded stores, shop-in-shops, joint ventures, co-branded stores) to ensure the appropriate product offering and presentation at the point-of-sale. Brand control helps them drive sales and profitability increases and expand Adidas market position.

We intend to generate at least 35% of our Group’s revenues through controlled space in the coming years. Going forward, they will also further differentiate and segment their product offering to align their distribution more closely with a given retailer’s customer base. In addition, they are partnering with retailers to increase the level and quality of sell-through information they receive. This creates a mutually beneficial relationship that will help us become a more valuable and reliable business partner to their retailers.

 

 

 

9.0 Develop integrated marketing communications program:

In past decades, markets have perfected the art of mass marketing selling highly standardized products to masses of customers. In the process, they have developed effective mass media communications techniques to supports these mass marketing strategies. Large company like Adidas routinely invest million or even billion of dollars in television, magazine, or other mass media advertising, reaching tens of millions of customers with a single ad. Today, however, marketing managers face some new marketing communications realities.

9.1 Advertising

Objective: It have been seen that people always want to view the change among usefulness of product. To create awareness among men, useful information must be made through a magnetic message. Message will carry out information about awareness of the product. Every man wants to look handsome and attractive. Just they need appropriate product which can fulfill their wants.

This product’s advertise will be made in such a way that it will bring out the hidden desire of man. People will be aware about themselves in looking handsome, feeling comfort and their personal grooming. Advertise will unleash their past attitudes towards beatification products and will get habituated on this product for usefulness. Message will be sending for potential customers who are eager to change their looks and thoughts.

Then, their product advertisement will need a media mix to travel through for communication. Their advertisement strategy should use print media and Electronic media.

9.1.1 Print media requres:

• Newspaper
• Billboard

9.1.2 Electronic media requers:

• Television
• Electric billboard
• Radio
• Web site

They will advertise this product mainly in print media, TV media and in radio. Outdoor advertisement will be done in large scale to attract their viewer. TV advertisement will be shown at night for six months. Radio will advertise our product all day long. For one year, our advertisement will be printed in popular newspapers and magazines.

9.2 Adidas Product Marketing Campaign

The Adidas Company was behind and helped such influential athletes as Jesse Owens and Muhammad Ali as they broke countless records. The heart of the Adidas product line is athletic shoes and this trend shows no signs of changing but the three-stripe logo appears on apparel and other jock accoutrements. Bankruptcy once had Adidas on the ropes, so to speak, but it made a comeback by shifting production to Asia and beefing up its marketing. Being the number two maker of sporting goods worldwide, just behind Nike, it has inked deals with football and basketball athletes, as well as the New York Yankees. The firm won sponsorship rights to the 2008 Olympic Games in Beijing. It now seems that in every sports related segment Adidas has a new quality product that was created to address an athletes’ needs either on the playing field or getting ready for their leisure time. Currently, Adidas has expanded their market to capture athletes who not only want to perform well in their sport but who also want to look and smell like a celebrity. Therefore, in 2003 Adidas introduced a new line of fragrances and body wash products. In this line Adidas offered eight different types of fragrances targeted towards both male and female consumers.

 

9.2.1 For Usual group:

v     We will give advertisement on TV and satellite channels to remind them.

 

9.2.2 For Niche market:

F  We will give incentives to our field force and we will give inspiration to the dealers.

F  We will also arrange some completion in some school and college.

 

 

 

9.3 Advertising Action Plan:

TV Advertisement in different national and private channels

Implementing the distributors lifting plan

• Billboard
• Participants International Trade fare

TV Campaign on different channel

• Display idea
• Trade promotion
• Customer Program
• TV Campaign

9.4 Direct marketing:

Direct marketing strategy of adidas shoes is to be  direct connections with carefully targeted individual consumers to both obtain an immidiate response and cultivate lasting customer relationship. In case of direct marketinf strategy of adidas shoes  they must find the game plan that makes the most sense given its specific situation, opportunities, objectives and resources. Adidas shoes  its mainly planning the direct communications with targeted individual consumers to obtain an immediate product. The adidas company implemainting the direct marketing strategy of adidas shoes is mainly mass-marketing advertisement and its high quality dealer network but also supplements these channel with direct marketing.

9.5 Sales promotion:

Sales promotion consists of short- term consists incentives to encourage purchage or sales of a product or service.  Adidas shoes mainly Sales Promotion means doing the activities that communicate the merits of the product and persuade target customers to buy it. we prepare us ahead of time for legislation, consumer expectations, and challenges. At the same time, it helps us uncover new ways of doing business – ways that connect us to new and different consumers, reduce our costs, fuel innovation and creativity within the company, and generate intangible and tangible assets. Whereas advertising and print media helps to make the  main promotional work to attract the customer to buy adidas shoes.

 

9.6 Sales promotion objective:

The main sales promotions objectives of adidas shoes is sellers obtain that use the consumer promotion to increase short term sales or increasing help build long -term market share. The main objectives of sales promotion is finally getting promotional include getting retailers to carry new items and more inventories, getting them to advertise the product and getting target customer to buy adidas shoes.

 

10. Recommendations:

 

In the point of view, of Adidas Company the adidas shoes they have to be more focus on their product variation, it should be easier to earn the profit of the company. The adidas company on their product in shoes sector they main target the sports oriented class, they take some plan to other classes of customer to increase their profit. The adidas shoes is mainly target the higher class of customer, as the running product of adidas shoes in market price is too high, they should reduce the price to earn more profit to increase their sells and catch more customer.

 

 

 

11. Conclusions:

Adidas is a well known and renowned company in the world. They are mostly conscious about their quality and their target market is mainly urban based and high class of people. They are almost covering more or less parts of the seven continents of the world. Their operation strategy which is effective to increase their margin and also established a strong position in global world, which is threat to other competitors in global business, that might be help them to growing there business firm as well.