Present

MM6016 Branding and Marketing Communication

The 2006 World Cup:

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Mobile Marketing At Adidas

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Prepared & Presented by:

Case Highlights
World Cup mobile portal was the most ambitious mobile project $1.25 million invested in cross promotion

World Cup viewed by half of the world`s population Adidas need to protect its traditional soccer market share Compete with Nike with its mobile portal and website

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Issues
Only 3,000 visits to the mobile site,
compared to the one million visits predicted earlier

A global stage to promote the brand and communicate its continued involvement and leadership in the

sport of football

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Adidas
Leading

soccer footwear worldwide

1920, Founded by Adolf (Adi) Dasler

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The Rivalry
Market Leader Top product Athletic footwear Running shoes, children`s shoes, cross training shoes and women`s shoes $14 Billion 40% Soccer footwear Soccer boots, soccer ball

Worldwide Revenue 2003 US Market share 2003

12$ Billion (acquired reebok $3.8 Bill) 32%

Basketball Segment 2003 European Soccer Segment 2003

US Celebrity Endorsement

60% 34% (Sponsored Manchester United in 2002)

Michael Jordan (Air Jordan)

20% 30%

Kobe Bryant

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Prepared & Presented by:

World Cup Event

Threat of new Entrants

Soccer Sport Apparel Analysis

LOW & Attractive
Small sport apparel have limited funds

LOW & Attractive

LOW & Attractive

HIGH & Attractive

Supplier Power
Lots of supplier (raw material) Low switching cost

Rivalry Competition
3 Major player in soccer event (Nike, Adidas, Puma)

Buyer Power
Price Sensitivity Product Undifferentiated

Threat of Substitutes

LOW & Attractive

Every 4 years Olympic, Euro Cup, African Cup

Attactive market, highly competitive, revenue is dynamic

Porter 5 Forces

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Global Marketing Strategy

Arenas

Soccer attributes (shoes, jerseys ,balls) Worldwide audience Teenagers (young, kids)
Official FIFA sponsored Stores, retailers Internet, TV, media, mobile, ATL, BTL Message to focus on the game and the importance of teamwork Engage the fans with team info, live updates Free of charge for mobile content Oct`05July`06: Mobile in some regions Nov`05Dec`05: Product launches April`06-July`06: Ads & promo Mobile: low cost and more efficient Mobile visits direct customer to web & store

Vehicles

Differentiator

Staging $1.25 mill budget

Economic Logic

Hambrick & Frederickson Business Element Strategy

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Lucasfilms Star Wars

Industry Benchmark
Target Campaign
Users
Technology
Youth, Kids (12-24)

April`05-May`05

900,000

2.5G

Price

$1.99 per content download $5.99 per game download Ringtones, sound effect, games, animated screensavers, wallpaper, interviews, video

Features

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World Cup Campaign

Sponsored Partnership Campaign Target Market Features Brazil National Team as Icon Google Joga Bonita (play beautiful) Youth Social networking Online community with discussion, videos, and other user created content Free Mobile portal & internet 2.5G & 3G European national team FIFA official sponsored +10 (together I am strong) Youth Kids Mobile portal: games, text messages, download ringtones, wallpaper, videos, live updates, opportunity to win the prizes Free Mobile portal & internet 2.5G & 3G Java tickers & flash

Price Technology

Messages

Community

Engage the customer with updates

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Who will you pick to be on your team?

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+10: Together I am Strong

Inspirational, meaningful & shared Developed by 180 Creative Agency

Launch 2005, generate awareness among soccer fans

Award-winning global campaign Focus on print & TV media Lack on digital media

Create more consistent product Limited development of content

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Campaign Phases
Oct`05July`06: Mobile in some regions Nov`05Dec`05: Expose (Product launches) Apr`06-July`06: Ads & promo around the world

Ads & promo

Explain
Expose
Match quality soccer ball
+Predator Absolute soccer boot

+10 Campaign

Impossible Team

TV,Outdoor,Print. Short codes on billboards

Launch of replica World Cup federation jerseys

Cross Promotion

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Mobile Phases
Oct`05Feb`06 Mobile Hits Mobile Visits
Downloads

Target: Youth, Kids

United Kingdom
Germany

54,072
8,123

1,875
327

1,315
440

Spain
Italy France USA China TOTAL

5,673
2,623 3,565

584
63 149

346
116 123

74,056

2,998

2,340

Budget: $1.25 mill Target minimum 1,000,000 visits

1.5 mill impression , 500,000 downloads

Short Codes on TV in Spain & Italy

CPC (cost per click) ??

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PEST Analysis
Regional laws regarding mobile marketing

Politic

The price of newer technology phone features are more expensive

Economy

Social Culture

90% target audience have mobile phones in Western Europe 60% are using 2.5G Increased used of internet

Technology

2.5G and 3G mobile phone Java tickers and flash based mobile portals Personal mobile gateways

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Value Chain Mobile Marketing

Brand Owners Communica tion Provider Marketing Provider
Mobile Communicati ons Provider

Consumers

Adidas International

Minick

Adidas Media Group

Vodafone Subscriber Orange T-mobile CRM Telefonica

Mobile marketing is the use of wireless media as an integrated content delivery and direct response vehicle within a cross media marketing communications program (MMA, 2008)

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What circumtances development of the 2006 World Cup Mobile Marketing campaign at Adidas ?
World

cup will take place on Adidass home ground show the world that Adidas is still on top of its game when it comes to football Increase the awareness of customer about Adidas Gain market share against competitor

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The strategy of the 2006 World Cup mobile marketing campaign developed by Adidas
Integrated marketing strategy Mobile marketing Media marketing Traditional marketing

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Campaign
Expose
1. 2.
3.

Phase

Launched world cup jersey (nationalism, awareness) Introduction of +predator Quality soccer ball

Explain
4.

Phase

Market +10 on TV and other media

Recruit player Launch Tunit

5.

Impossible Team advertising, promo, commercial, online, TV, mobile, etc

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Mobile Marketing Strategy

Segmenting
Football fans Global audience World cup followers

Targeting
Positioning

10-28 years old football fan Broad target groups (other sports) MTV viewers
+10: Together I am strong player can be brilliant with the support of the team

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Mobile Marketing Strategy

Strategic Partner

MTV 180 creative agency Minich (Swiss mobile agency)

Mobile Site Features

Free download wallpapers, videos, ringtones Star player talks in local language at mobile Goal alerts, result, tables, fixtures World cup results

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Prepared & Presented by:

How effective was the campaign? Evaluate the results.

The mobile campaign successful because.
The overall campaign was successful Mobile campaign results are successful if measure by counted download per visit 78% visitor downloaded the content impossible team has not been launch Too immature to evaluate

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How effective was the campaign?

The mobile campaign was unsuccessful because
Fail

to reach the expected number

Less than 1% of projected target (3 month before WC)

Short

code reach limited population (Spain, Italy) Too focus on children

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Prepared & Presented by:

Was the campaign appropriate for the stated mission of Adidas in the world cup ?

Adidas Mission

to unequivocally establish Adidas as the leader in soccer in the hearts and minds of the world and to establish our commitment to build and maximize our retail partnership together.

Impossible of Nothing
Extend the philosophy sportsmanship
Encourage user (especially children) to overcome their personal problems that seem impossible

personal level

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Why is it appropriate?
Encourage fans to support their team, no matter what. Give children HOPE in chasing their dream Lay emphasize on building teamwork, not individual Word Cup is an international event which is held once in every four years The event itself has good coverage in the world Adidas could have been gained good brand awareness