ADIDAS

Marketing Strategy

Submitted to:
Deepti Srivastava

Submitted By:
Vijayta Yadav Satyendra Yadav Tinku Yadav Himanshu Kanaujia Abhinav Anurag Rahul

In the 1936 Olympic Games. jumping back as the driving force in the sportswear market. Jessie Owens sponsored Adidas by wearing Adidas shoes for his races. A lot of star athletes were sponsored and today star soccer players such as Kaka.INTRODUCTION Adidas was created by Adolf Dassler who took his nickname. But in 1978. As a result Adidas was overtaken by Nike in the 1980s. . In 1997 Adidas sales had climbed over 50% from the previous year. Adidas first started using athletes to promote their line of products. and combined it with the first syllable of his last name to create the Adidas brand. Adi. At the end of the 1970s Adidas dominated the world market in sportswear. a small Oregon company named Nike founded in 1972 offered more distinctive colors and styles while also patenting the technical innovations underneath and inside them. David Beckham are sponsored by Adidas. Zinedine Zidane. with large financial misfortunes. They were able to come back in the market by creating the credo that “Teens will usually shun whatever their parents wear” and their parents wore Nike.

joint venture with Magnum International Trading Co.Advantage adidas campaign kicks in.  1998 .Andreas Gellner is new MD. Ltd. license agreement with Bata  1996 .entered India. 30% growth milestone  2005 . India .introduced the cheapest range of shoes they had ever sold  2001 .first televised advertisement for India: Paes & Sachin  2004 .Sachin Tendulkar is Brand Ambassador for India  1999 .ADIDAS IN INDIA  1989 .

   There are various prices on the x-axis and on y-axis we have the percentage population.. and then we have 25% of the population.e. We have only 7% people who are ready to buy the shoes at these prices. Then we increased our price to `1500-1999. the interest of percentage decreasing as for most of them it is not an affordable prices. Hence we have the less percentage. 8%. Most of them are willingly to      . Most of them are putting question on the quality of the product so inspite of buying adidas at this price they are ready to pay these to some cheaper product of matching quality. So according to our survey we have drafted a graph. And these prices they can afford. Most of them are ready to buy at these prices just coz they believe that adidas may not compromise with the quality.CUSTOMER SURVEY ANALYSIS We have conducted the survey of adidas customers to analyze the willingness of the customers in India. as if they can pay `2999 so they also go for other options. Now as we asked at `4000+ the percentage of population increases these population basically high class customers. They are willing to pay for that and compromise with the prices factor. 31%. As it is clear from the graph when we asked to customer if we are providing you the pair of adidas shoes at just ` 1000-1499 price. After increasing the amount to` 2000-2499 the percentage of population who are willing to pay the price are maximum ie. Percentage of customer who are willing to pay the prices according to their affordability. Increasing price more to `2500-2999 some of them choose for different brand of some high quality. Increasing more to `3000-3499 the percentage again decreasing i.

The Respect M.S. before many competitors.pay prices with durability and comfort.) Weaknesses Consumers on average receive no more than 8 minutes of adidas advertising per year through all forms of broadcast media. The adidas arcade-style soccer game applet creates a complete brand experience for users. Rigid pricing structure. Many of its ad campaigns in Europe focused on older consumers. Breaking into the large. SWOT ANALYSIS OF ADIDAS Strengths Took advantage of the trend in mobile media advertising early. Partnership with MTV further enhanced its image of cool. Ahead of the curve on innovative advertising. urban basketball market (U. Many adidas shoes are low quality and over-priced. Limited product line. . Attained consumer confidence and comfortability with the adidas logo on their cell phones. due to limited budget. ad campaign reached out to America's youth.E. A line of shoes targeted towards athletes (many adidas are) should not be so heavy. and not the key 12-24 demographic.

Advertising through mobile media can be delivered directly to a targeted audience. Hard to measure the effectiveness of mobile marketing in a rapidly changing technological environment. Trends in North America tend to have enormous impact on consumer preferences around the world Threats Consumers may be annoyed by advertisements intruding into their personal lives (mobile media). The dot-com-induced stock market decline of 2000 lost the confidence of many would-be advocates of digital media. adidas is the least preferred brand among consumers. 3G-equipped cell phones allow users to browse the web. Pop-up blockers and digital video recorders provide customers with ways to avoid unwarranted messages. Lag in technology adoption in the U.S.Opportunities Video games can provide a brand experience specifically aimed at the 12-24 year old demographic. Reebok. download music and play games. watch movie clips and sporting events. cell phone market enables adidas to test new products in Europe before launching them in the U. mobile media devices are more timesensitive. Scarcity of time available to directly address consumers. While having the portability of print. transactional experiences than television or print. Failure to expand in North America could hamper adidas prospects in Asia and threaten its leadership in Europe. this opens new doors for adidas. ..S. where Nike is growing. and Nike. more personal. Out of adidas. Target the achievers psychographic. Advertising must be tailored to regional tastes in different countries. Digital media offers richer. providing continuous on-time delivery content.

price. Collectively they are called marketing mix. . For example if you have improve your product. Price also matters it should be in accordance with your target customers. place and promotion. Also in such a manner that it will give more revenues in short run. In the context of 4p’s product is to meet the needs of consumers in terms of services and goods. It also gives the importance and relevance of the products. promotion. accessibility are the other factors which gives importance there should be a good place for stocks which will be easier to the consumer to get through it. remember if your marketing mix doesn’t meet the needs of the customers then you will never meet your objectives. then the cost in the production must increases as a result it increases the cost of the product. Promotion of the product increases the interest of customer and also creates a value and trust towards it. Place. There must be a good communication to tell the customers that you have improved the quality for them to make more desirable and stable thus increases the price. Promotion of product also plays and important role in the marketing. Promotion can also be through the communication. Each mix has its own importance.MARKETING MIX Marketers use the tools to meet the needs of the target customers these tools are called marketing mix. These are 4p’s of marketing: product.

appearance. and facilitating functions. Pricing includes not only the list price. The distribution system performs transactional. Since these costs can be large in proportion to the product price. warranty. PROMOTION Place (or placement) decisions are those associated with channels of distribution that serve as the means for getting the product to the target customers. aspects such as function. etc. etc. a break-even analysis should be performed when making promotion decisions. Product decisions options such as include leasing. media types.PRODUCT The product is the physical product or service offered to the consumer. Promotion decisions involve advertising. Distribution decisions include market coverage. Pricing decisions should take into account profit margins and the probable pricing response of Competitors. financing. public relations. logistics and services. but also discounts. logistical. channel member selection. levels . service. In the case of physical products. it also refers to any services or conveniences that are part of the PRICE PLACE Promotion decisions are those related to communicating and selling to potential consumers. packaging. It is useful to know the value of a customer in order to determine whether additional customers are worth the cost of acquiring them. and other offering.

FEATURED  Chelsea FC Brotherhood  SPORTS  Basketball  Golf  Football  Running  Training  Tennis  Women  outdoor MORE      bodycare eyeware micoach watches better place adidas by Stella McCartney  F50i .PRODUCT we know that marketing is the fundamental to provide the actual benefit to the customers. Adidas as a product people need comfort. Marketing is not only to provide the product but it is to the change or to communicate to the customers and convince about it. durability and style.

As higher as well as the lower price will affect the value hence the price should be right. If you made a higher price than it will decrease the demand for the product and hence fewer buyers.PRICING is the only mix which generates the revenues to the company. They might be question on the quality of the product. The price should not be too low because If the price is too low than then it will decrease the value of the product for the customers. . It should be matched with customers which you are targeting. If you are targeting to high class then your price should be high and if you are targeting the middle as well as the lower class then the price should be matched accordingly. Fewer buyers ultimately lesser will be the sales and hence profit.  SUITABLE FOR THE TARGET CUSTOMERS . so the company should follow the strategy of price making by considering various factors: BRAND VALUE – the price should be decided in such a manner so that it matches with pshycology of the customers.

If we talking in terms of profit maximization then marginal revenue should be equal to marginal cost. GENERATING THE REVENUES QUICKLY – pice also affect the revenues and the profits of the company. MR = MC Also the difference between the total revenue and the total cost should be maximum. π = TR – TC. what the similar product company offering prices to customers.competition T he company should aware about the competetors. . .

PLACE-DISTRIBUTION A crucial decision in any marketing mix is to correctly identify the distribution channels. The question “how to reach the customer" must always be in your mind. Offering total customer service at higher price. EXPLORING AND EXPANDING NEW GEOGRAPHICAL MARKETS. Distribution areas: Locations Logistics Channels channel motivation market coverage service levels internet usage mobile technology usage Instead of "place" it would be better to use the word "distribution" but the MBA lingo uses "place" to memorize the 4 Ps of the marketing mix! The distribution strategies applied by ADIDAS: 1. you have to look for a distribution channel in order to reach your customer. 2. Concentrating on distribution channels reaching most profitable segments. . Regional market expansion. Export market expansion. Knowing this place. where the sale is realized. The place is where you can expect to find your customer and consequently. CONCENTRATING RESOURCES ON MOST PROFITABLE CUSTOMER SEGMENTS. National market expansion.

Promotion uses methods of communication with two objectives: (1) Informing the existing and potential consumers about a product. Improving communication with present customers. (2) To persuade consumers to buy the product. .PROMOTION Promotion includes all of the tools available to the marketer for 'marketing communication'. Promotion aiming at existing customers. Seeking other distribution channels. Advertising in other media. ATTRACTING OTHER MARKET SEGMENTS. Understand reasons for losing customers. TOOLS OF PROMOTION Advertising Public relations Messages Direct marketing Sales Media Budget The promotion strategies applied by ADIDAS: REDUCING NUMBER OF LOST CUSTOMERS.

Adidas launched sub brand of the equipment product line for the elite of sports men. The right product on a correct price at a right place and with proper and constant promotion plays a vital role in marketing. Adidas continues to prove itself as a brand built to last through a game plan of reinvention.CONCLUSION Adidas have used the theoretical systems to create their brand building programs. . Marketing mix plays an important role in increasing the sales and making a brand name in the market. And it is constantly improving the sales and the brand image. Adidas used the tool of Marketing mix rightly to enhance the image and to conquer the market.

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