Case Study on Brand Management

Contents

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Companys Profile and its Journey Cut through the Clutter, Role of Digital Media and Brand in Hand Mobile Marketing Success Stories of Digital Marketing and Road to Lisbon : Mobile Marketing Key Market and US Scenario Way Ahead and Viewpoints

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adidas : A Companys Profile

Founded by Adolf Dassler in 1949 Became an international brand in 1974 Outsourced production in1990 to concentrate on marketing Became a public company in 1995 2004 : Launch of impossible is nothing Localized advertising to suit national markets Main competitor Nike whose advertisement spent is $1.4 billion compared to $900 million of Adidas

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Journey and What Next?

adidas Outline

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Cut through the Clutter

Need  Market saturation  Customer Hostility towards advertisement  Sporting events and sponsorship yield no new customers Initiatives  Continuous decrease in share for Print media marketing in overall marketing budget  average exposure to Adidas 8 minutes a year. meaningful and memorable message  Be on inside or front of cover

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Role of Growing Digital Media

Increasing share of Digital media in Adidas Marketing budget Increase in usage of mobile phones in target customer which is in age group of 12-24 Growing popularity of 2.5G and 3G cellphones Divided digital content into three tiers:  Free content  Cost Plus content  Fee based content

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Brand in Hand - Mobile Marketing

d antage of Mobile edia o er traditional edia  Reduces dvertisement clutter  Delivered directl t t e t r et udience  Time sensitive  Port ilit of rint Mobil ti l t :  Mobile messaging  Ringtones and Wall apers  Video Games

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Success Stories of Digital Marketing : adidas

Yahoo portal takeover for Laila Ali Impossible is Nothing campaign Brand in Hand Concept Moving beyond text messages Sweden Collectable wallpaper campaign UK, ringtones pilot project resulting in 600,000 downloads in 10 days Although Profits were miniscule from both the pilot projects the campaigns created Brand Awareness.

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Road to Lisbon : Mobile Marketing

Tagged in 13 of Europe's greatest soccer stars Adidas media campaign  Impact  Involvement  Activation R2L campaign  Ringtones (priced < $ 1) 10,000 downloads Sales of adidas Licensed jerseys exceeded 2.5 Mn units.  Text advertising clips from R2L 12,000 downloads Issues and outcomes in R2L  Infrastructure failure  Earning from subscription fees not transferred to them.  Lack of focus on 12-24 years old

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Key Market - USA

R2L and Match Centre failed to engage target audience (12-24 years) US teenagers influenced by peer and reference group Based on above, US brand strategy centered around URBAN CENTRES OF COOL Problems faced  Low bandwidth available hence text messaging  Nike already a market leader with Air Jordan brand (targeted for basketball enthusiast)  Lower spending on mobile media by American youth

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US Scenario (adidas Strategy)

Partnership with MTV Hip-hop Music  It has reached 45 million Americans who spent $10 billion on music and merchandize Respect ME : Missy Elliot campaign  Promote the fashion line through mobile, online and face2face event  elivery of exclusive product preview to attract customers and make them propagate the message (viral marketing)

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Way Ahead & Viewpoints

Mobile marketing Not just another fad Will not completely replace traditional channels Effective through use of innovation Challenges  Risks related to technology adoption regional customization , 2.5 or 3 .  Infrastructure support should be robust.  ifficulty in measuring effectiveness. New avenues  Advertising in PC and Console ames.  Online product customization.  Understanding customer better.

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Questions?

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All Day I Dream About Sports

adidas

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