Kingston University Faculty of Business and Law MA Marketing with English

Marketing Communications

rou! Assignment

"#!ortswear$ Adidas% Module &itle$ Marketing Communications BMM''(

London) *+th ,ecem-er .'**

rou!$ Can Cihan / K**0'11( Catherine 2ivas / K**'*033 4aroonrat Kovawinthaveewat K**((.33 &omoko Kawashima / K**(+353

Executive Summary &he !ur!ose of this re!ort on Adidas is to re/lunch the com!any to make it the first -rand in s!ortswear sector in UK6 &his re/lunching !rocess is im!ortant -ecause even Adidas s!ends more money than the leader 78ike9) Adidas have not achieved the leadershi! in UK yet6 &o achieve the leadershi! firstly consumer trends investigated) then internal and e:ternal environments were analy;ed) the former with #<=& Analysis) the latter with >E#& analysis6 After that new o-?ectives were defined for cor!orate level) marketing level and communication level6 Furthermore) targeting) segmentation and !ositioning theories are a!!lied to reach the customer easily6 Addition to this) the most suita-le communication tools were determined with take account of -udgeting constraints6 Finally an evaluation is made with !re/testing and !ost/testing techni@ues6 An the light of the researches) it can -e seen that the new trend is -eing fashiona-le in s!ortswear sector6 &hus the slogan reviewed and changed as "Am!ossi-le As 8othing) Fashion As Everything% to reflect the new trend and new o-?ective of Adidas6 &o conclude) due to the forecasts of the s!ortswear trends and -uyer -ehavior) Adidas will change its strategy and communication interface to -e a leader in s!ortswear sector in UK6 Moreover) there is a good chance for the com!any that London =lym!ics will take !lace in near future6 &o use this chance) the com!any will use all of the effective communication tools6 Adidas will s!read the new slogan and new face to consumers6

Table of Contents 1. Introduction...................................................................................................................4 2. Company Profile/ Products............................................................................................4 3. Context Analysis...........................................................................................................5 3.1 Consumer Trend......................................................................................................5 3.2 Business context !ale and "ar#et !$are................................................................5 3.3 Competitor analysis.................................................................................................% 3.4 Internal Analysis & Adidas......................................................................................' 3.5 (xternal Analysis ) Adidas......................................................................................' 4. *+,ecti-es....................................................................................................................... 4.1 Corporate o+,ecti-es................................................................................................. 4.2 "ar#etin/ *+,ecti-es............................................................................................10 4.3 Communication *+,ecti-es...................................................................................10 5. Tar/etin/ and !e/mentation........................................................................................10 5.1 1emo/rap$ic Trends.............................................................................................10 5.2 Be$a-ioral/ Psyc$o/rap$ic Trends........................................................................11 5.3 Pen Profile/ T$e tar/et audience............................................................................11 %. Positionin/...................................................................................................................11 '. Communication !trate/y.............................................................................................12 56* Creative Brief..................................................................................................13 '.1.1 Co)+randin//Colla+oration & 2usion 3Adidas and 45"6.............................13 56*6. Antegrated Marketing Communication...........................................1% 7. Total Bud/etin/ of t$e Campai/n...............................................................................21 .. (-aluation and control.................................................................................................23 ..1 Pre)testin/..............................................................................................................23 ..2 Post)testin/............................................................................................................23 10. Conclusion.................................................................................................................24 4

10. Conclusion1. Introduction Coming .'*.) London will -e the host of London =lym!ic .'*.6 At is easily imagined that the enormous attentions toward =lym!ic could also turn to their attitude of s!orts6 Automatically this attitude would affect s!ortswear market !ositively as they -ecame more interested in s!orts6 An terms of s!ortswear market) one of the to! -rand Adidas has !ossessed a second market share following the to! leading com!any 8ike for amount of times6 8ike leads not only !roducts sales -ut consumer !erce!tions of the -rand images6 &hen) this re!orts aim to suggest Adidas re/launching strategy to differentiate and defeat 8ike -y -oth creating new image and awareness of Adidas and increasing !roducts sales6 &herefore) the !recise marketing communication !lan of Adidas) which is using several advertising methods and !latforms) will -e demonstrating6

2. Company Profile/ Products ADIDAS Group &he com!any name is -ased on its founderBs name) Adolf 7Adi9 ,assler whose first name was shortened to the nickname Adi6 &ogether with the initial three letters of his surname it formed A,A,A#6 Adolf 7CAdiB9 ,assler -egan the story of the Adidas rou! in his motherBs washroom) a small room with no electricity and no machinery in *+.'6 Moreover) on August *Dth) *+(+ Adidas was registered as a commercial com!any called "Adolf ,assler Adidas #!ortschuhfa-rik% in FErt) the small town of Fer;ogenaurach 7Adidas rou!) .'**a96 An addition to this it is also necessary to consider the logo of the com!any) the 1 #tri!es) was designed -y Adi ,assler and first usage of the sym-ol on footwear is in *+(+6 7Adidas rou!) .'**-96

Faving considered the history of the com!any) it is necessary to turn to nowadays6 Adidas A is the worldBs second largest s!orts com!any in the s!orting goods industry in terms of annual sales) which is more than G*'-n6 Adidas consist on three -rands) including Adidas) &aylorMade olf) and 2ee-ok6 Euro!e) the Americas) and Asia are the regions where the com!any o!erates in6 Furthermore) the head@uarter of the com!any is located in Fer;ogenaurach) and Adidas rou! has (.)3(. em!loyees6 An terms of !roduct range) the com!any hasH footwear) s!orts a!!arel) s!orts accessories) golf e@ui!ment) golf -all) hockey e@ui!ment and a!!arel 7,atamonitor) .'**96 3. Context Analysis 3.1 Consumer Trend According to Key note re!orts) &he Kantar MediaBs & A survey shows that more male consumer !urchase s!orts clothes than female in .'*' due to their rather !artici!ations of s!orts6 =ne of the remarka-le trends of consumers in s!ortswear market is that they tend to !urchase s!ortswear as a casual wear or fashion !ur!oses rather than !ractical uses6 7A!!endi: *9 At is estimated -y Mintel re!ort that the value of this market went u!ward -y .*I over the 3years and forecasted more increase -etween .'** and .'*06 7A!!endi: .9 Another factor that im!acts on this market is) according to Mintel) one @uarter of consumers -uy s!ortswear at online sho!s such as ama;on) M and M ,irect) A#=#) e/Bay6 At is also seen in a survey asking the attitudes towards internet sho!!ing6 7A!!endi: 19 >rice considered sho!!er -uy from e/retailers as they can find out the -ig discount value at there6 3.2 Business context: ale and !ar"et #are. Keynote 7.'**9 stated that the Adidas rou! is in the second

!lace in s!ortswear market share in the UK and the num-er one is %

8ike Anc6 7A!!endi: (96 Adidas -ecame stronger in the market after its ac@uired 2ee-ok that is the third !lace in market share on that time in .''06 &he main focus on s!ortswear of the adidas -rand are foot-all) running) -asket-all) training and outdoor activities 7Keynote) .'**96 Adidas rou! has increased its sales in .''+ that accounted for

5.6(I of the total sale 7A!!endi: 39 7Keynote) .'**96 According to Keynote 7.'**9 illustrated that Cmore recent figures from adidas show that sales have increased su-stantially in .'*') with net sales in the first + months of .'*' reaching J+6'0-n) com!ared with J56+.-n in the first + months of .''+) although the full yearBs figures have not yet -een released -y the rou!B6

Fowever) the !re/ta: !rofit showed a significant decrease from J116.m in .''0 to J**65m in .''+ 7A!!endi: 096 At can -e argued that the !re/ta: !rofit has decreased from .''0 to .''+) although the total sale has increased in .''+6 At might have a result from the recession and increasing in !roduction cost that is cotton 7Keynote) .'**96 &he ma?ority of s!orts !urchases are made -y more fashiona-le than the !revious time6 &he !ur!ose of wearing s!ortswear in !resent are -oth !ractical and leisure aims 7Mintel) .'**96 8ike launched its flagshi! 8iketown store where customers can create their shoes color and style -y themselves situated in =:ford Circus in London 7Keynote) .'**96 Adidas also follows this trend -y allowing customers design their own shoes in the adidas we-site 7Adidas) .'**96 At can -e argued that adidas and 8ike ca!ture the trend of customerH nevertheless) adidas might not enough !ower to com!ete with 8ike to -e num-er one in the market share -ecause 8ike offers this o!!ortunity in the store whereas adidas !ut this on their we-site6 At is more realistic to select a !roduct -y facing a real one instead of imagination6 '

3.3 Competitor analysis 8ike has -een the to! market leader stood -y Adidas and dominated other -rands such as >uma) 8ew Balance) >entland rou! >LC in s!ort clothing and footwear market in UK 7A!!endi: 596 &he -est/selling !roducts in 8ike are running shoes and -asket-all -oots) which is dominant in the market6 8ike also s!eciali;es in functional s!ortswear for many s!orts and also offers s!orts activities6 An .'**) they launched new i/!hone a!!lication) which targeted women for encouraging their !artici!ation of s!orts -y hel!ing to achieve their training goal6 &his launched in order to com!ete with Adidas a!!lication CmiCoachB6 As A!!endi: D shows) it is dominant that 8ike is -est !ositioning in consumer attitudes of -oth CdifferentiationB and CtrustB as!ects within other com!etitors6 >ental rou! >LC has variety of s!ortswear -rands ranged from outdoor -rand to swimwear s!eciali;ed -rand6 An terms of >uma) their !roducts !erform as -oth fashiona-le and functional s!ortswear which is divided into three o!tions$ C&eams!orts) 2unning) Lifestyle and FundamentalB6 7Key note) .'**9 3.$ Internal Analysis % Adidas Adidas is owner of a strong !ortfolio and the mission of this -rand as a worldwide com!any is to -ecome the -est s!ort -rand in the world6 According to Mishra) .'*') "Mission of Adidas lo-al is to -e the -est s!orts -rand in the world offering the -est !roducts and services6 Adidas aims to come u! as a socially and environmentally res!onsi-le organi;ation that em-races creativity and diversity and reward its em!loyees and shareholders%6 Adidas is a consumer focused com!any due to this -rand is always im!roving @uality) look) and image of the !roducts according to customerBs needs6 &he innovation and design is focused in hel! athletes of every skill levels 7

to achieve the -est !erformance with each !roduct of the line6 Fowever) Adidas have -een less orientated in fashion and trends than other s!ortswear com!anies of the markets6 &his fact generates the need of creating a cam!aign to demonstrate that Adidas could -e a fashiona-le trade name as the other com!etitors6 7,ata Monitor) .'**96 An order to understand the internal analysis of this com!any it is im!ortant to revise the #<=& analysis who gives the strength) weaknesses) o!!ortunities and trends of this -rand 7A!!endi: +96 3.& 'xternal Analysis ( Adidas Political: Adidas has to -e aware of the !olitical states and law created for the governments of UK) as well as it does in all the countries6 &he government offers su-sidies if organi;ations set u! factories in areas of high unem!loyment such as #outh <ales6 &his is not an advantage for Adidas due to the manufacturing of the !roducts is outside the UK and does not affect to increase em!loyments in this area6 Fowever) Adidas give a lot of work !lace for !eo!le in the stores located around England6 =ther !oints to -e cautious are the ta: !olicies for com!anies in the UK) environmental regulations and trade restrictions and tariff 7A!!endi: *'96 Economic: 8owadays) the world rece!tion is affecting many com!anies worldwide6 Many consumers have to reduce their e:!enses due to the inflation and this fact cause a decrease in sales6 Moreover) the glo-al devaluation is increasing the !rices of raw material6 Adidas are also affected -y the state of the economy in the UK) the interest rate is not very sta-le and will make it hard for Adidas to !lan ahead in terms of -udget 7,ata Monitor) .'**96 Another im!ortant factor in the economy of Adidas is how this com!any !roduce and manage manufacturing6 &his -rand has located their manufacturing factories .

in non/develo!ment countries where the man!ower of em!loyees is considera-ly chea!er com!aring with the UK 7Mishra) .'*'96 &his fact make that Adidas does not have control of the manufacture and increase cost of distri-ution6 Fowever) for the -usiness is difficult to !roduce their !roducts in England due to the large @uantity of investment that they would need to s!end to relocate factories and em!loyees in the UK 7A!!endi: *'96 Socio-Cultural: An the actuality) many !eo!le are concerning more a-out health) wellness and e:ercise6 &his as!ect is very !ositive for Adidas due to this new market could -e !enetrated6 Additionally) lose weight and fitness is one of the most !o!ular markets and Adidas could take this fact as an advantage to create more cam!aign a-out how maintain healthy conditions for the -ody !romoting their !roducts6 Another socio/cultural issue is the environment) every organi;ation that !roduce !roducts using the nature have to -e aware of this as!ect6 &here are many ways of -een friendly environment such as create recycled !ackage and sto! using real animals6 Fowever) AdidasBs raw materials for foot-all -oots are taken from animals and this is creating several !ro-lems with environmental cam!aigners6 Another social !oint is that !eo!le are more concern a-out fashion and style when they !urchase s!ort !roducts6 8owadays) consumers have more awareness a-out how they look and they are more interested in -rand names and re!utations6 &hat is one of the reasons why Adidas should -e more focused on fashion to create a new !ers!ective of their !roducts and attract more customers 7A!!endi: *'96 Technology: At is not a secret for anyone that technology is one of the most im!ortant as!ects for any cor!oration6 At is fundamental for any com!any to -e u!date with technology) innovation) new develo!ment of !roducts) new materials) @uicker !roduction machines) etc6 &hese 10

are factors that Adidas should take into consideration6 Furthermore) use #ocial Media to communicate advertisements and !romotions could -e the most accrua-le way to get new markets and make cam!aigns in a chea!er way6 #ince the last . years) !eo!le are more connected through internet and all the e:isting a!!lications for many devises6 >articularly) Adidas has created technologies for their !roductsH s!ecifically adi>2E8E and adi>2E8EK for clothes and &orsion for s!ort shoes6 Moreover) this com!any has to kee! innovating a-out all the a!!lications for each new devises in the market such as smart!hones and ta-lets 7A!!endi: *'96

$. )*+ecti,es $.1 Corporate o*+ecti,es

&o achieve the !osition of Cthe -est s!orts -rand in the world offering the -est !roducts and servicesB 7Adidas rou!) .'*'96 &o manage our wider social res!onsi-ilities as a multinational com!any 7Adidas rou!) .'*'96 rou!) C>erformance) >assion) &o create -rands that the consumer -elieve in -y -eing hel!ed -y these four values of Adidas Antegrity) ,iversityB 7Adidas rou!) .'*'96

$.2 !ar"etin- )*+ecti,es

&o increase sales of Adidas -rands -y .'I -y .'*16 &o increase Adidas -rands market share -y 5I of the total market share -y .'*16 &o generate Adidas -rands revenue -y *'I -y .'*16

$.3 Communication )*+ecti,es

&o re!osition the -rand images of Adidas =riginal from CA casual s!ortswear -randB to CA casual high/fashion -randB within the first 0months6 &o increase -rand awareness -y 1'I -y 4une .'*.6 11

&o create -rand interest and gain consumer !reference of Adidas =riginal from target grou! -y .3I -y 4une .'*. -efore London =lym!ic .'*. starts6 An the summer of .'*.) London will organi;e world s!ectacular

s!orts event) London =lym!ic .'*.6 &his will -ring significant o!!ortunities to all of s!ort/related industries6 Adidas will not -e e:ce!tional of it as Adidas is one of the official !artners of the =lym!ics6 &o ma:imi;e that !eo!le and utili;e of its !ositive effects and o!!ortunities aware s!orts activities) Adidas

re!ositioning cam!aign will set u! -efore =lym!ic starts on 4uly .'*.6

&. Tar-etin- and e-mentation &.1 .emo-rap#ic Trends Current trends dis!lay that men are more !artici!ant in s!ort that womenH around seven in ten men !lay in any s!ort com!ared to ?ust over si: in ten women 7Mintel) .'**96 Men -etween the ages of *0 1( are the most ages that !artici!ant in s!ort 7A!!endi: **96 At can -e said that men -etween the ages of *0/1( have the highest consum!tion in the s!ortswear6 <ith res!ect to social class the highest !artici!ant in s!ort are the ABC* categories 7A!!endi: *.96 Mintel 7.'**9 stated that C.s category is likely to -e increasing for !urchasing in s!orts clothing and footwear to wear as leisurewear6 An terms of geogra!hical location reater London and inner London are where s!ortswear is consumed at the highest rate 7Fall) .'**96 &.2 Be#a,ioral/ Psyc#o-rap#ic Trends 8owadays) the customersB trend is more likely to -e more fashiona-le and is a !rimary driver in sale for s!ortswear industry 7Mintel) .'**96 Moreover) -uyers tend to aware in their health) for e:am!le) control -ody shar! and !rotected disease6 According to 12

these trends) it is really useful for the s!ortswear market to increase in sale6 Adidas will a!!ly these trends to -e s!ecific in its marketing cam!aign6 &.3 Pen Profile/ T#e tar-et audience For Adidas target market in this re!ositioning will -e -oth male and female -etween the ages of *0/1(6 #ocial class ABC*C. who are dwelling within the United Kingdom are -een the target audience6 &he reason why it select the whole of the United Kingdom instead of focusing on reater London and inner London are e:!anding a target of customer and make more customer than only concentrate on London owing to num-er one in market shares for Adidas6 At will -e targeting all ethnics6

/. PositioninAn order to determine re/launching !osition of Adidas) the current !ositions of Adidas and other com!eting -rands in the market has to -e considered6 As Adidas is well/esta-lished and highly/trusted s!ortswear -rand !ositioning second leader of this market in the UK) Adidas !ossesses variety of !roduct ranges from shoes) a!!arel) accessories with different conce!ts -rands lead -y CAdidas >erformanceB following -y CAdidas =riginalB and CAdidas #tyleB in revenue order6 Fowever) According to Mintel 7.'*'9) Adidas is !erceived -y consumers as Cmakes me confidenceB -rand while 8ike) which leads the market with to! market share) is de!icted as Csets trendsB -rand which re!resents their !erformance of highly/fashiona-le s!ortswear6 7A!!endi: D9 Adding to this) as it is mentioned in the cor!orate analysis) 8ike is !erceived -y consumers as the most trusted and differentiated -rand within other com!etitors6 7#ee A!!endi:09 Although) Adidas s!ends 13

its -udget for advertisement more than 8ike in .'**) its !erformance wasnBt !erceived -y consumers as much as 8ike did6 7A!!endi: *19 An terms of tendency of customers) Mintel 7.'**9 descri-es a-out consumer trends in this market CFashion over FunctionB as more !urchases are made -y casual wear rather than s!orts !ur!oses6 An this growing market) em-racing fashion clothes into s!ortswear seems to -e key !oint of success in terms of e:!anding its market to the massive !otential target6 #imultaneously) as dominant trends of the current market) amount of the channel where they !urchase these !roducts is changing from retailer sho!s to internet sho!s6 &his fact cannot -e avoided -y any of those cor!orations who seek to generate consumers and consolidate their -usinesses6 &o sum u!) in order to com!ete with 8ike) the re/launching strategy of Adidas would -e determined that to im!rove -rand image more fashiona-le and differentiate with 8ike -y the use of internet6 &he new slogan CAm!ossi-le is 8othing) Fashion is EverythingB re!resents -oth com!any s!irits and re!ositioning conce!t6 &herefore) this cam!aign will take !art in social media such as Face-ook which is new cam!aign !latform to sei;e massive !otential customers who are hidden -ehind it6

0. Communication trate-y For com!anies is e:tremely im!ortant to create an accurate communication strategy to aim and im!rove the way of how the cor!oration shares information and find the needs of their clients6 &o have knowledge of the !rinci!al o-?ectives of the com!any and communicate effectively it is necessary to design a distinctive communication strategy de!ends on each case 7Anonymous) .'**96 &he finality of create this strategy for Adidas is to im!rove the sales of this -rand giving a new image of fashiona-le and trendy through the 14

!romotional mi:6 At can -e said that for this cam!aign would -e used two ways of communications$

*6 Co/-randing and new fashion and !o!ular retailer 7Fusion96 Fusion with a !o!ular and well/known -rand$ FLM Limited Edition .6 Advertisements 8ew Cele-rities Amage &ools$

Maga;ines M #ales >romotion &echni@ues 7Bar Codes L ,iscount Cou!ons9

Cinema 7=deon9 Face-ook ,ress/u! 7.1 Creative Brief 0.1.1 Co(*randin-/Colla*oration % 1usion 2Adidas and 34!5 Target Audience$ Males and Females 7ages$ *0 / 1(9 Class$ A) B) C*) C. Slogan$ "Impossible is Nothing !ashion is e"erything% Timeline$ 0 weeks 71'th 4une / #$th September %$&%9 &his cam!aign it will -e !laced one month in a half -efore and after the =lym!ic ames .'*. in the UK6 &he reason of this timeline is due to there will -e more !eo!le interested in s!orts) e:ercises and look good for this event6 &he advertisements and !romotions would -e focused on s!orts and that is something that Adidas have to a!!roach6 Adidas is also su!!orting =lym!ic 7Fall) .'**96 'b(ecti"es$ &he main o-?ective of this cam!aign is to im!rove the !erce!tion of Adidas -rand as fashiona-le and trendy for consumers 15 ames .'*. as official commercial !artner to gain more !ower in the market share of UK ame

who wants to look good at the time when they go e:ercise6 &his !romotion will lead to consumers think in Adidas as trendy and comforta-le clothes in afforda-le !rices6 "Communications based co-branding in"ol"es the lin)ing o* t+o or more e,isting brands *rom di**erent companies or business units *or the purpose o* (oint communication- This type o* co-branding can ta)e the *orm o* recommendation%6 74o--er) .''59 Plan$ &his strategy is one of the most im!ortant !arts of the cam!aign6 &his fusion consist in use this -rand store as a retailer and at the same time to !romote the Adidas !roducts as a fashion -rand6 An the !ast) this -rand) FLM) make an agreement with the la-el such as Nersace and 4immy Choo to sell their !roducts in the store and also -e !romoted in FLM we- !age6 According to 2hiannon from ManchesterFashion6com 7.'**9) "./0 +as responsible *or an 12 increase in sales *or 3immy Choo in No"ember %$&$%6 &his strategy has the o-?ective of !romote Adidas as a fashion -rand using the !o!ular high street chain FLM6 &his colla-oration is -eneficial for -oth !arties FLM and Adidas due to FLM can -e offering high end designs at high street !rices and Adidas could !romote their -rand as trendy and stylish clothes6 FLM is one of the most !o!ular -rands in the UK with a good overall re!utation of @uality !roducts in terms of !rices and value6 Another im!ortant reason of colla-orate with this -rand is that their !roducts are e:tremely fashiona-les and trendy and this is the main !oint of this cam!aign of marketing communication6 &his -rand also has s!ortswear clothes and shoes in their linesH therefore it would -e easier to locate Adidas !roducts in this section of the store6 &his com!any) FLM) has had e:!erience as co/-randing and short time 1%

retailer since it has !reviews !ractice on this kind of !romotions with other !remium and to! -rands in the market6 An the !ast few years) this com!any makes fusion with some im!ortant and !restigious -rands of the market such as 4immy Choo and most recent Nersace) which according with some statistics of the fashion worldH it was well acce!ted for consumers in -oth sides6

0andatory elements: &here are some regulations for this colla-oration$

1. &he clothes line designed for FLM must -e a Limited Edition

71 month96
2. &he clothes design must -e different to the lines sold on

Adidas stores6
3. >romotions and ,iscount cou!ons do not match with clothes

from FLM stores6

4. FLM we- !age must show all the Adidas !roducts offered in

this !romotion) with o!tion of sho! online6

5. At will -e !laced an attractive Adidas advertisement in the

home !age of FLM to stimulate the !urchase of customers6 4udget: &he -udget for this cam!aign it im!ortant to know that there are two !arts interested in the !rofits of this colla-oration6 For this reason the -oth !art argue that$ Clothes Limited Edition$ &he design for this limited edition will managed only for Adidas rou!H raw materials) designers) manufacture and distri-ution6 An the other hand) it is im!ortant to have in a count that for Adidas is not com!licated to create a new line

1'

for this !romotion due to) this com!any already has their own designers) materials) manufacture and distri-ution 7in Andia96 &he creation of the advertisement we- !age would -e covered for -oth !arts and using -oth sites for the !romotion6 &he main !art will -e !laced in FLM !age where will -e a sho!!ing cart o!tion to !urchase these items6 Fowever) it cannot -e increased cost for this !art due to FLM is owner of a so!histicated we- !age with this ty!e of o!tionH the !oint is to locate the new line of Adidas !roducts on this !age6 &o finali;e the -udget for this !art of the cam!aign "Am!ossi-le is nothing) Fashion is Everything% Co/-randing) the cele-rity endorsement will -e two of the most famous !eo!le of this daysH Brad >it and Angelina 4olie6 &his as!ect and cost will -e e:!lained -ellow in the ne:t section6 &o sum/u!) the -udget for co/-randing is detailed in the chart -elow$ Cost in >ounds .3'6''')'' 3''6''')'' D''6''')'' *3'6''')'' 0''6''')'' .61''6''')''

,esign >roduction ,istri-ution <e- >age ,esign Cele-rities &otal

1i-ure 1

7.1.2 Integrated Mar eting Communication According to Fill 7.''+9 in terms of -rand awareness)

advertising and !u-lic relations are effective tools) similarly) sales !romotion !ersonal selling and direct marketing are useful for increasing the rate of !urchase6 Considering this view) in this section 17

various media tools will -e usedH the main driving force is the usage of Brad >itt and Angelina 4olie for the new cam!aign) -eside this) maga;ines) social media tools such as Face-ook and Oou&u-e) &N commercials and com!etitions will -e used6 0essage 8owadays !eo!le want to -e seem as fashiona-le even when they make e:ercises on the other hand they want to feel comforta-le when they wear a fashiona-le s!ortswear !roduct 7Keynote) .'**96 Adidas has already has a su-/-rand) called =riginals) for fashiona-le s!ortswear -ut new re!ositioning o-?ective is a little different from the !ur!ose of =riginals6 &o e:!lain this further) =riginals aims that !eo!le can -e seen fashiona-le and fell comforta-le and casual when they wear s!ortswear) -ut the new re!ositioning !ur!ose is that !eo!le can -e seen fashiona-le even when they make e:ercise or !re!are a com!etition or !artici!ate in a =lym!ics6 &hus the main message of the re!ositioning !rocess is to s!read that the s!ortswear trend is -eing fashiona-le as well as functional6 'b(ecti"es &o s!read the slogan "Am!ossi-le As 8othing Fashion is Everything% in UK -efore the start of the London =lym!ics6 &o increase the awareness of the -rand I1' during the time of London =lym!ics from the -eginning of the 4uly to end of August in UK6 &o s!read the message ">eo!le can -e seen fashiona-le even when they make e:ercise% in UK6 &o increase Brand Loyalty *'I to kee! market share during the London =lym!ics in UK6 &o reach new customers during the =lym!ic increase market share -y I5 1. ames therefore to

Celebrity Endorsement According to Fill 7.''+9 there are some !otential !ro-lems with use of cele-rities6 =ne of them is suita-ility of -rand image and the cele-rity is a -ig concern) the other one is there is a danger that the audience can remem-er ?ust the cele-rity instead of -rand and its message6 Although these !otential !ro-lems are known) Adidas will use some cele-rities6 Because it can -e argued that using cele-rity is one of the most effective ways to esta-lish credi-ility so Brad >itt and Angelina 4olie will -e the advertisement face for Adidas6 Brad >itt is one of the most famous actor in the world and his -ody and charisma is suita-le for the AdidasCs new image6 #imilarly Angelina 4olie is one of the most -eautiful and talented actress in the world and there are a lot of woman who want to wear like her6 Moreover they are a cou!le so they can -e used also for a family conce!t6

Communication Tools

T! " Cinema Commercials

#lan$ A series of 1'/second commercials can -e used to show that Angelina 4olie and Brad >itt wear Adidas s!ortswear and they make some e:ercises6 Even they make e:ercises they are looking fashiona-le and stylish6 For this !ur!ose the most !o!ular &N channels 7as it can -e seen in the figure9 can -e used such as BBC) A&N) Channel () Five and BskyB6 #imilar to this) it is generally known that !eo!le are more careful of the advertisement which !u-lished on the cinema6 &hus) cinemas will -e used for the same !ur!ose and !eo!le will watch their #tars Angelina 4olie and Brad >itt in the commercial as they are watching a film6 20

Sc$edule$ #tarting from the -eginning of the 4uly to end of August6 &his time includes * month -efore the London =lym!ic one month after the =lym!ic time for 1' seconds6 ames and ames6 For &N two most !o!ular &N

channels BBC and A&N will -e used for two times in a day at the !rime

1i-ure 2 ource: http://www.barb.co.uk/report/weeklyViewingSummary

21

#rint Media " Maga%ines

>lan$ For !rinted advertisements of the new cam!aign instead of using the to! sellers in general it is -etter to use suita-le maga;ines for the target audience6 Adidas will use the to! maga;ines related to fashion) style) s!orts and lifestyle in the UK6 &hese will -e$ Men&s 'ealt$( &he maga;ine is the to! selling menBs lifestyle health and fitness maga;ine) an e:cellent su-scri!tion for any man concerned with his health) fitness relationshi!s and diet6 Cosmo)olitan$ At is the maga;ine for young women who donPt want to miss out on all of the essential relationshi! features) the latest health news and the latest fashion trends6

!ogue$ &he Maga;ine sets trends6 Used as a !oint of reference within the fashion industry) it is filled with insightful interviews with leading designers) runway reviews) !ractical style ti!s and must/have -uys6 &he target audience is generally women6

Es*uire$ For the very -est cele-rity features and interviews) health) fashion) s!ort) thought/!rovoking writing and to! @uality !hotogra!hy in a stylish) accessi-le !ackage6 Es@uire also -rings its customers culture) food) -usiness and technology) -ooks) films and the arts6 &he target of the maga;ine is man6

Sc$edule$ #tarting from the -eginning of the 4uly to end of August6 &his time includes * month -efore the London =lym!ic one month after the =lym!ic ames6 22 ames and

+nline Media " Social Media

#lan$ #ocial Media is a ty!e of online media that e:!edites conversation as o!!osed to traditional media) which delivers content -ut does not allow readersMviewersMlisteners to !artici!ate in the creation or develo!ment of the content 7<ard) .'*') cited in findarticles) .'*'96 &hus Adidas will try to convince customer to take in !art of the re!ositioning cam!aign -y social media tools6 ,aceboo $ &here will -e a Face-ook a!!lication which allow the customer to create own doll and dress the doll with the new fashiona-le !roducts of the Adidas6 &hey will share their dolls with their friends6 Com)etition on ,aceboo $ Also there will -e a com!etition a-out the dressed dolls on the a!!lication) the users will save their dolls for election and due to the result of the election there will -e one winner who will get the chance to go for a dinner with Angelina 4olie and Brad >itt6 -ouTube$ &he commercials not only will !u-lish on &N -ut also they will !u-lish on Oou&u-e) -efore the most !o!ular video the Adidas commercials will -e shown6 At will hel! to reach the o-?ective in that to increase -rand awareness6 Sc$edule$ #tarting from the -eginning of the 4uly to end of August6 &his time includes * month -efore the London =lym!ic one month after the =lym!ic Sales #romotion ames6 ames and

23

>lan$ target

&he

main is it to can

o-?ective of sales encourage -e argued the that new to -uy a !roduct6 one of the most reach .''+96 &o increase of Adidas -y 5I needs to reach

!romotion Moreover

audience

sales !romotion is effective ways to customers the 7Fill) the market share com!any new customers6

1i-ure 3 ource: #ttp://2d(code.co.u"/adidas(6r(code/

For this reason Adidas will use a Q2 Barcode/>romotion 7an e:am!le of Q2 Code in the figure96&here will -e some Q2 Codes on the Oou&u-e videos) &N commercials and Maga;ines) customers who can ca!ture the code -y their mo-ile !hones or ta-let !cs can get some discounts during the London =lym!ic #chedule$ ,uring the London =lym!ic .'*.9 -ecause of the high cost6 ames6

ames 7.5 4uly to *. August

24

7. Total Bud-etin- of t#e Campai-n Celebrity Endorsement( Nenus <illiams) tennis !layer and <im-ledon cham!ion has signed a five/year R(' million contract with s!ortswear manufacturer 2ee-ok Anternational Anc6 7Chilli-ree;e) .'**96 Considering this Angelina 4olie and Brad >itt will cost J.60 million T! " Cinema Commercials( BBC$ According to B2A, 7.'**a9 BBC costs for !rimetime U# R110' !er day) thus for full schedule it will costs 110'S57days9 SD 7weeks9 T R*DD*0' T .12/0112 IT!( According to B2A, 7.'**-9 A&N costs for !rimetime J3(*3 !er day) thus for full schedule it will costs 3(*3S5SDT .3230212 T! Ex)enditures 4 12/0112 5 3230212 4 .1260762 #rint Media " Maga%ines( Men&s 'ealt$( For third class out of five class) advertisement cost J*.)1*' !er !ages thus for two months schedule it will costs J*.)1*' S . T .210722 7B2A,) .'**c9 !ogue( For third class out of five class) advertisement cost J.()('' !er !ages thus for two months schedule it will costs J.()('' S . T .160622 7B2A,) .'**d9 Cosmo)olitan( For third class out of five class) advertisement cost J.*)+(3 !er !ages thus for two months schedule it will costs J.*)+(3 S . T .130682 7B2A,) .'**e9 Es*uire( For third class out of five class) advertisement cost J**)D3' !er !ages thus for two months schedule it will costs J**)D3' S . T .230722 7B2A,) .'**f9 25

Maga%ines Ex)enditures( 210722 5 160622 5 130682 5 230722 4 .1110212 +nline Media " Social Media ,aceboo ( Creating a Face-ook a!!lication is free on the other hand there is no sufficient data a-out !u-lishment of the a!!lication on the we-site of the Face-ook6 -ouTube( For !ersonal !ur!ose there is no charge to !u-lish a video on youtu-e -ut there is no suddicient data a-out !u-lishment of cor!orate advertisements6 Co9Branding As mentioned -efore) J.61 million will -e s!end for Co/Branding activity with FLM on design) !roduction) distri-ution) we- !age design and cele-rities6 Co/Branding E:!enditures$ .2.3 million Total Budget( 2.7 million 5 1260762 5 1110212 5 2.3 million 4 ./178782 :))roximately ././ million. 8. ',aluation and control &his stage is one of im!ortant !art of marketing cam!aign6 According to Fill 7.''+9 stated that the role of evaluating can !rove that the !erformance of the tool and media used are followed -y the communication o-?ective that have set in the first !lace6 Moreover) marketing mi: and -udget have -een a!!lying in effective way6

2%

8.1 Pre(testin&he !re/testing will hel! the Adidas marketing cam!aign to evaluate the result of all tools and media that are going to a!!ly for its to more efficient and the least mistake that is going to ha!!en6 At will a!!ly focus grou! to -e a !re/testing for estimate the overall of marketing mi: that it will ha!!en6 &his method can hel! to o-tain the o!inion and !erce!tion of customer to im!rove in some !lan in a!!ro!riate way6 At will -e conducted -y D mem-ers in each grou! that select from target audience6 &he total num-er of focus grou! is 0 grou!s6 8.2 Post(testinAn this stage will measure the effectiveness of a cam!aign result in different areas of marketing tool and media used6 Advertising$ #ales test and tracking studies are a!!lied to -e a measurement in this cam!aign6 An term of #ales test can hel! Adidas to know the effectiveness of advertising -y increasing or decreasing the level of sale and market share during and after launching cam!aign6 <ith res!ect to tracking studies will conducted -y interviewing 1'' user and non/user of Adidas to indicate the awareness of advertising and -rand6 #ocial media can -e measured -y a num-er of click to access in AdidasBs cam!aign and also how long customer s!end time in that social media !age6 #ale !romotion$ &he co/-randing of Adidas and FLM and =2 code can -e measured -y a num-er of sales in this !romotion and how customers react to this co/-randing and this -arcode/ !romotion6 >u-lic relations$ &he im!act of using Brad >itt and Angelina 4olie will -e evaluated through the effect from the main media 7&N) cinema) 2'

maga;ines) internet) etc96 Moreover) it can -e evaluated -y feed-ack of customer for !urchasing a !roduct of Adidas that wearing -y -oth of modeling6 10. Conclusion An conclusion) the communication !lan !resented a-ove has the aim to increase Adidas -rand awareness and !roducts sales -y changing image of Adidas as a Cfashiona-leB clothes and not only for !ractical use in order to -e Cthe -estB -rand in the market6 &he key !oint of this cam!aign is -ased on the research results such as remarka-le -uyer -ehavior that they -uy s!ortswear as a fashion !ur!ose6 By co/-randing with FLM and !romoting Brad >it L Angelina 4olie as new models of Adidas !romotion) conventional Adidas image that is !erceived -y consumers would -e overturned to the aim image6 #imultaneously) this cam!aign would lead to increasing awareness and considera-ly interests in see Adidas as a fashiona-le /trendy -rand and also re!lacing 8ike in the market share as the num-er one on s!ortswear in the UK6

27

;eference <ist Adidas rou!) 7.'*'96 "#ustainability 5eport %$&$%) U=nlineV

Availa-le at$ Whtt!$MMwww6adidas/grou!6comMenM#E2.'*'M,efault6as!:X UAccessed$ 5th ,ecem-er .'**V Adidas rou! 7.'**a9 "6$ years o* adidas- the stories that still inspire

us today7 Availa-le at$ Whtt!$MMwww6adidasgrou!6comMenMourgrou!MassetsMFistoryM!dfsM0'Oea rsYFistorical=verviewYe6!df X UAccessed$ *' ,ecem-er .'**V6 Adidas rou! 7.'**-9 "The story o* logo8Availa-le at$ Whtt!$MMwww6adidasgrou!6comMenMourgrou!MassetsMFistoryM!dfsMlogohi story/e6!df X UAccessed$ + ,ecem-er .'**V

Adidas) 7.'**9 "Customise: mi create your o+n7 Availa-le at$ htt!$MMsho!6adidas6co6ukMmiadidasMMain6action UAccessed$ + ,ecem-er .'**V6 Anonymous) 7.'**9) "De"elopment a communication Strategy%) Availa-le at$ htt!$MMwww6dhacommunications6co6ukM) UAccessed$ Dth ,ecem-er .'**V

B2A, 7.'**a9 44C 9orld Ne+s U=nlineV6 Availa-le at$ htt!$MMwww6-radinsight6comM-radv.MMem-erM&itle>age6as!:Z titleAdT.***D 7Accessed$ *' ,ecem-er .'**9 B2A, 7.'**-9 IT: U=nlineV6 Availa-le at$ htt!$MMwww6-radinsight6comM-radv.MMem-erM&itle>age6as!:Z titleAdT*'01'' 7Accessed$ *' ,ecem-er .'**9

2.

B2A, 7.'**c9 0en;s .ealth U=nlineV6 Availa-le at$ htt!$MMwww6-radinsight6comM-radv.MMem-erM&itle>age6as!:Z titleAdT*3+0' 7Accessed$ *' ,ecem-er .'**9 B2A, 7.'**d9 :ogue U=nlineV6 Availa-le at$ htt!$MMwww6-radinsight6comM-radv.MMem-erM&itle>age6as!:Z titleAdT*'(.D 7Accessed$ *' ,ecem-er .'**9 B2A, 7.'**e9 Cosmopolitan U=nlineV6 Availa-le at$ htt!$MMwww6-radinsight6comM-radv.MMem-erM&itle>age6as!:Z titleAdT.33* 7Accessed$ *' ,ecem-er .'**9 B2A, 7.'**f9 Es<uire U=nlineV6 Availa-le at$ htt!$MMwww6-radinsight6comM-radv.MMem-erM&itle>age6as!:Z titleAdT1((. 7Accessed$ *' ,ecem-er .'**9

Chilili-ree;e 7.'**9 Impact o* Celebrity Endorsement on a 4rand Availa-le at$ htt!$MMwww6chilli-ree;e6comMarticlesMCele-rity/ endorsement6as! 7Accessed$ *3 ,ecem-er .'**9

,atamonitor 7.'**9 "adidas AG: Company Pro*ile7 U=nlineV6 Availa-le at$ Whtt!$MMcontent6e-scohost6comM!df.5Y.DM!dfMdddMdmhcoMa-c35.5+/ (ff1/(3+./a(Dc/*5d.e0-3+c'f6!dfZ&T>L>TA8LKTABC35.5+/(FF1/ (3+./A(DC/ *5,.E0B3+C'FL#TLL,TdmhcoLE-scoContentTd 4yM8Fr5E#e!5O (wtvh=LCmr'me!52#r@u(#@ I.B<:<[#LContentCustomerTd 4yM> nr'I.Bw@Ld2ue>fgey:(A1 mX 7Accessed$ *' ,ecem-er .'**9

Fill) C6 7.''+9 "0ar)eting Communications: Interacti"ity Communities and Content%) 3th Edition6 Ataly$ >earson Education Limited6

30

Findarticles 7.'*'9 Using social media to increase advertising and im!rove marketing) Availa-le at$ Whtt!$MMfindarticles6comM!MarticlesMmiYm*&=LMisY*3MaiYn3030*D53M X 7Accessed$ .+ 8ovem-er .'**96 Fall) 46 7.'**9 C=ondon %$&% 'lympics: Adidas aims to beat Ni)e into second place at GamesB) The Telegraph) .+ MayU=nlineV6 Availa-le at$ Whtt!$MMwww6telegra!h6co6ukMfinanceMlondon/olym!ics/ -usinessMD3(3*'(MLondon/.'*./=lym!ics/Adidas/aims/to/-eat/8ike/ into/second/!lace/at/ ames6htmlX 7Accessed$ *0 ,ecem-er .'**96

4o--er) ,6 7.''59 8Principles and Practice o* 0ar)eting7 3th edition co!yright .''5 -y Mc raw Fill) Cha!ter 1) Co/-randing) !g 1306

Key note) 7.'**9 "#!orts Clothing L Footwear Market 2e!ort .'**%) Availa-le at Whtt!$MMwww6keynote6co6ukMmarket/ intelligenceMviewM!roductM*'(*.Ms!orts/clothing/I.0/ footwearMcha!terM0Mcom!etitor/analysisZhighlightTs!ortswearX UAccessed$ 5th ,ecem-er .'**V

Key note) 7.'*'9 "0ar)et 5e"ie+ %$&$7 Availa-le at Whtt!$MMwww6keynote6co6ukMmarket/ intelligenceMviewM!roductM.10*Ms!orts/marketZmediumThtml X UAccessed$ 5th ,ecem-er .'**V

Mintel) 7.'**9 "Sports Clothing and !oot+ear7 - >? - August %$&& Availa-le at$ Whtt!$MMacademic6mintel6comMsinatraMo:ygenYacademicMsearchYresults MshowLMdis!layMidT3(3(0*X UAccessed$ 5th ,ecem-er .'**V

31

Mishra) ,6 7.'*'96 "Corporate Strategy *or Adidas Group%) #chool of Management6 University of >urdue6 2hiannon) 46 7.'**9 ":ersace *or ./0%) Fashion 8ews) Availa-le at$ htt!$MMwww6manchesterfashion6comM) UAccessed$ Dth ,ecem-er .'**V

:))endixes

32

:))endix 1( CClosing and footwear !urchased in the last *. months) -y reason for !urchase) 4une .'**B 7Mintel) .'**9

:))endix 2( CBest and worst case forecast value sales of s!orts clothing) .''0/*0B 7Mintel) .'**96

33

:))endix 3( &rends in attitudes towards advertising and sho!!ing on the internet) .''0/*' Base$ adults aged *3K 7Mintel) .'**9

" ten# to buy pro#uct$ %rom companie$ who $pon$or $port$ e&ent$ an# team$ "'m tempte# to buy pro#uct$ "'&e $een a#&erti$e# *o #o my $hopping by internet make$ my li%e ea$ier % point change

2006 % 6 26 17

2007 % 6 2( 20

2008 % 6 2) 21

2009 % 6 2( 2(

2010 % 6 2( +)

2006 ! 2010 ! !1 17

:))endix 1( 8eadin/ !uppliers of !ports Clot$in/ and 2oot9ear to t$e :; +y Country of *ri/in and <lo+al Turno-er =>? @ and AB? 2010 Country of *ri/in Company Ci#e Inc. Adidas <roup P:"A :! <ermany <ermany 34 >1..01+n >10.37+n @2.%2+n

Turno-er

Ce9 Balance Pentland <roup P8C 4i)Tec !ports P8C

:! :; :;

>1.%5+n A1.13+n A101.%m A70.5m

De/atta 8td :; E F /lo+al turno-er for latest full financial year? see profiles for furt$er details =;eynote? 2011B

:))endix /( Adidas <roup F <lo+al !ales +y Brand =@mB? 200')200. 200' Adidas Dee+o# Taylor"ade)adidas <olf Doc#port Dee+o#)CC" 4oc#ey *t$er Total '?113 1?731 704 2.1 210 50 10?2.. 2007 '?721 1?'1' 712 243 177 17 10?'.. =;eynote? 2011B 200. '?520 1?%03 731 232 1'' 17 10?371

:))endix 7( AdidasGs profits from 200%)200. Hear (nd Pre)Tax Profits =A000B I c$an/e year)on)year Profit "ar/in =IB *peratin/ Profit =A000B 31/12/0. 31/12/07 11?'3. )2'.%1 2.75 11?7.4 31/12/0' 1%?21' )%7.45 4.0% 51?3.5 54.'1 15.%4 31/12/0% 33?220 ) 11.21 32?14.

1%?712 20?%01 =;eynote? 2011B

35

:))endix 7( J8eadin/ !uppliers of !ports Clot$in/ and 2oot9ear to t$e :; +y Country of *ri/in and <lo+al Turno-er =>? @ and AB? 2010G =;ey note? 2011B Company Ci#e Inc adidas <roup P:"A Ce9 Balance Pentland <roup P8C 4i)Tec !ports P8C De/atta 8td Country of *ri/in :! <ermany <ermany :! :; :; :; Turno-er >1..01+n >10.37+n @2.%2+n >1.%5+n A1.13+n A101.%m A70.5m

:))endix 6( JAttitudes? +y sports clot$in/ and foot9ear +rand? Kune 2011G ="intel? 2011B

3%

:))endix 8( #<=& Analysis

:))endix 12( >E#& Analysis

3'

:))endix 11( Most !o!ular s!orts and !hysical activities !artici!ated in) -y age) 4une .'** Base$ .)''' internet users aged *0K

37

="intel? 2011B :))endix 12( #!orts and !hysical activities !artici!ated in) -y social grade) 4une .'** / Base$ .)''' internet users aged *0K

3.

="intel? 2011B :))endix 13( CMain monitored media advertising s!end on s!ortsMoutdoor clothing and footwear) -y to! *3 advertisers) .''0/*'B 7Mintel) .'**9

40