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Prepared As a course Requirement of (Advertising and Public Relation-mkt 424)
M. Atiqur Rahman
Patuakhali science and Technology University Bangladesh email@example.com www.pstu.ac.bd
Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-1
The German manufacturer. At the critical time of global economic crisis. which can provide caring emotional communication. from both strong-willed hero worship and water-like fork environment.Advertising Strategy of Adidas: A comparative Study EXECUTIVE SUMMARY Adidas Inc. the company makes huge investments in advertising and brand promotion. outdoor and internet. Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-2 . But besides that. determination." In order to maintain and sustain this image. is a marketer of sports apparel and athletic shoes. through its marketing strategy which rests on a favorable brand image. It may become a good chance for Adidas because it can take advantage of its previous advertising way of “Impossible is Nothing” campaign by sponsoring sports stars to express the corporate philosophy of grit. has evolved into a large multinational enterprise. giving people more courage and psychological comfort in face of economic crisis. In keeping with the brand image is its association with the distinctive logo and its advertising slogan. but also warmth. passion and humor. specific magazines. Adidas will react to the consumers’ pessimistic attitude and stressful emotion during this period. customers can easily link Adidas image with not only strength. we also focus more about family function especially in Asian countries which emphasize a lot on family. Therefore. The preferred media we choose are TV. "Impossible is Nothing.
Then these six players decided to form a series that would help kids to discover their dream by playing with NBA Stars. delivering stateof-the-art sports footwear. but also in the sporting goods industry. While Dassler was in his mother’s wash room he decided to begin an athletic shoe. These athletic shoes were made for running and training.” The main focus of “The Brotherhood was Adidas to sponsor the NBA.Advertising Strategy of Adidas: A comparative Study 1. The way these six players were selected was by their athletic ability which is why they are also known as all stars. When it came down to it Adidas and the NBA came up with the slogan called “Basketball is a Brotherhood.oddballshoe. Shoes from the Adidas are available in virtually every country of the world.com). Adidas has been part of the world of sports on every level. Oddball is proud to carry quality large size Adidas. Today. Chauncey Billups of the Detroit Pistons and Gilbert Arenas of the Washington Wizards. Adidas is a global leader not only in the shoe industry. After he made the shoe he had help from his brother and twelve other people to produce around 50 handmade shoes per day.” (www. Dwyane Wade of The Miami Heat. Recently Adidas and the NBA joined forces and made “The Brotherhood”. “For over 80 years. “The Brotherhood” consists of Tracy McGRady of The Houston Rockets.1 INTRODUCTION Adidas was formed by German sports apparel by the founder Adi Dassler during the 1920’s. A strong advertising and public Relation events makes adidas as a worldwide recognized brand and it would be more sustainable in the world market. Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-3 . Tim Duncan of The San Antonio Spurs. apparel and accessories.
Activities: manufacture and distribution of textiles. hiking. After the split. Adi Dassler registered more than seven hundred patents.2 HISTORY OF ADIDAS The company Adidas was founded in the early 1920s as Gebruder Dassler Schuhfabrik. in Herzogenaurach in Germany. Adolf Dassler designed a pair of sport shoes in 1925 and few years later he and his brother Rudolph were selling special shoes for tennis players and began design specific shoes for different sports. Adidas’s market share dropped to 3 percent in 1992. What happened in the '70s and forward. climbing equipment. The family company split in 1948. Products: Adidas . Adidas has 107 subsidiaries in 20 countries.it took 18 months to get a new shoe into the market. was that Adidas was unable to ship products when it was needed. Maxfli . In 1990. and hardware such as bags and balls.Golf balls. Arc'Teryx . inline skates. apparel. market leader in the late 1970s. and exports to 160 countries. Exploitation of the registered trademark “Adidas” is made where ever it is an opportunity. golf apparel. The strength of Adidas was its product innovation. Adidas began selling its shoes in the United States after 1968 and in few years the company dominated the American market. Salomon Winter sports incl.2 billion to more than $3.Advertising Strategy of Adidas: A comparative Study 1. market.Outdoor apparel.7 billion. Taylor MadeAdidas Golf . Between 1988 and 1992 Adidas total sales dropped from nearly $2 billion to $1. snowblades. Adidas also have had problems with the upstream value activities in their value chain. At the 1972 Olympic game in Munich. The European market shares dropped while Nike’s shares grew. every official wore Adidas. irons and accessories. Adidas was holding on to just a two to three percent share of the U. Cliché .Footwear. Traditionally.Skateboard equipment. The most important marketing breakthrough was the active promotion of global sporting events. Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-4 . footwear and apparel. Adolf (Adi) Dassler founded Adidas and his brother Rudolph founded Puma. ski boots and bindings. snowboards. In the same period. and they had a long supply chain . the company have their own factories and wholly owned subsidiaries. during the Adidas recession.S. golf shoes and finally. skis. Activities of the company and its subsidiaries are directed from Adidas-Salomon AG's headquarters in Herzogenaurach. Germany. Bonfire Snowboard apparel.Golf equipment.S. especially the Olympics.4 billion. The three-stripe logo was designed in 1941 by Adi Dassler and he registered it as a trademark for Adidas after the split. From being the U. Mavic -Cycle components. shoes and appliances for sport and related products. The connection of Adidas to the Olympics has a rich heritage. Nike’s sales went from $1. apparel.
Chart-1: Adidas Net Sales data in Euro (million) 2 002-06 (Source-www. command higher prices and generate more revenue than its competitors. Gillette and Proctor & Gamble. often in English. The market demand from teenagers who should be Adidas and most important target market increased very fast and Adidas started to expand its targeting market to younger consumers because of its severe competition with Nike and Reebok. since the late 1980s. and the same motif is incorporated into Adidas's current official logo. and Rockport. Therefore. With its “Impossible is Nothing” campaign and strong product.adidas.1 Market Trend Analysis Adidas earn from EU 877 million in worldwide sales to EU 9.com) Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-5 . shirts. Taylor Made-adidas golf company. Nike was able to increase its share of the domestic sport-shoe business from 18 percent to 43 percent.799 billion and the 2007 figure was listed at €10. and other sports and clothing related goods. Consumers are willing to pay more for brands that they judge to be superior in quality. FWB: ADS) is a German sports apparel manufacturer and part of the Adidas Group. 2. in the company of Coca-Cola.Advertising Strategy of Adidas: A comparative Study 2. Besides sports footwear. A strong brand allows its owner to expand market share. the Adidas brand has become so strong as to place it in the rarified air of recession-proof consumer branded giants.299 billion.2 billion in the ten years between 1988 and 1998. which consists of Reebok sportswear company. Adidas has worked to transform itself from a brand of sneakers to a product integral to the sports culture. SITUATION ANALYSIS Adidas AG (pronounced [AH-dee-'dahs]. the company also produces other products such as bags. The company revenue for 2008 was listed at €10. The situation analysis consists of the market trend analysis and competitor analysis. The company's clothing and shoe designs typically feature three parallel bars. or about US$15. During this stage. to its US rival Nike. style and reliability. The company is the largest sportswear manufacturer in Europe and the second biggest sportswear manufacturer in the world.6 billion.
2 Competitor Analysis Adidas has two lager competitors Nike and Rebook. The newly born several brands like CAT. THREATS Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-6 . Adidas larger competitor Nike has a grater market share and having a big budget in marketing activity.wekipedia. • Sponsors football teams with maximum fan following in India and USA. • Highest brand image in India according to our survey.org) STRENGTHS • Largest International portfolio of sport ambassadors. Besides that it would have several small competitors. • Our survey shows Nike behind Reebok & Adidas in market share in India. Opportunity and Threats. SOWT Analysis: A SWOT analysis comprise of strength. (Source-www. Weakness. • Has not do well in Indian subcontinent market. GAP has increase their advertising budget in recent years. OPPORTUNITIES • • • • • Has a great opportunity to expand international market. This four trends are analyze below. Positive and increasing market trends can increase through the effective advertising. WEAKNESSES • Rigid pricing structure. Increasing demand on the sportswear. A SWOT analysis would be helpful to understand the competitive environment. Figure: Adidas expence to advertising (billion Euro).Advertising Strategy of Adidas: A comparative Study 2.
According to D. The Adidas strategies were based on. endorsement focus strategy. Comparative analysis Nike centred their brand equity model on the platforms. organizational associations. To create brand awareness both companies have been using endorsement strategies in their brand-building programs. is basically how the customer perceive the brands quality status. and symbols. NikeTown and subbranding. brand associations. Brand Brand Awareness Perceived Quality Brand Associations Brand Loyalty Brand equity can be defined as the brand assets linked to a brand’s name and symbol that add to a product or service. 2. Woods and their success stories. Brand awareness is the base to affect the consumer perception and even taste. product attribute. perceived quality. and teams. development of Flagship stores. About the second strategy. The concept is to strengthen the size and intensity of each loyalty segment. What differs is that Adidas focuses on sponsorship of teams and events e. partly because it influences brand associations in many contexts and partly because it has been empirically shown to affect profitability as measured by ROI (Return On Investment) and stock return.Advertising Strategy of Adidas: A comparative Study • Amount of competitors increasing day by day. Nike created media presence in several trend setting United States cities. but real drivers were huge oversized billboards and murals on buildings that blanketed cities with messages featuring key Nike-sponsored athletes. See figure below. and sub-brands. People like the familiar and are prepared to ascribe all sorts of good attitudes to the items that are familiar to them. Aaker perceived quality is a special type of association. Nike’s advertising strategy was to create dominant presence in media. not products. This asset can be created and analysed trough the four dimensions.g. Brand associations can be anything that connects the customer to the brand.3 Comparative Analysis Trough The Equity Model Review of the equity model Let’s make a short review to remind the reader what the separate blocks or keywords mean in the equity model. and brand loyalty. sponsorship programs focusing on major global events. use situations. Brand loyalty is at the hart of any brand’s value. brand associations. Perceive quality. It can include user imaginary. This will help them to create awareness with help from different types of media. brand awareness. Jordan and T. sports associations. advertising. national teams and big sport events like the Olympic Games and different World Championship events. TV ads linking Nike to a city were used. In contrast Nike has their focus on individuals like M. advertising. creating a dominant media presence. Adidas took up the competition with Nike through raising their advertising budget to a level that made it possible to compete with Nike on the same Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-7 . the endorsement focus strategy.
The success was obvious and after hard work and striving toward a top position in the industry Adidas was back in 28. they made an impact with brilliant executions. flag ship stores. 2. The company communicate their heritage of innovation. and then abroad. so exceed your own expectations and limitations” and “ Earn it”. Examples of that is the 0 Adidas Streetball Challenge a local Nike adidas Reebok Pow er Puma Others three-person team basketball tournament.000 spectators.29 22.24 business. In the finals in Germany it attracted 3200 players and 40. Adidas introduced a subbrand in 1990 to serve the high-end products for all categories of shoes and apparel. Adidas advanced from $1. Nike 13. this event started out as a trail in Berlin in the beginning Chart-03: Adidas market Share comparison of the 1990s as one time occasion. Adidas made hereby a brand-building success.65 be a sensation.com) In the mid 1990s it had become a huge sport event with about 500. Nike advanced from $1 billion dollars in 1986 to $ 9.94 Nike’s third strategy was to 25 develop.8 billion in 1998.Advertising Strategy of Adidas: A comparative Study conditions and the same strength as Nike did to capture the consumer interest. Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-8 . 30 25. For Adidas one image study of consumers found the brand very trendy.adidas. According to sales figures for the both companies. attitudes and life style. the Alpha line. This was a success strategy for Adidas so successful that Nike copied their idea and introduced their own line. it seems that both Nike and Adidas companies have succeeded to create a brand loyal customer who perceives the Nike and Adidas products as top quality. emotion and performance. The “Equipment” subbrand would represent the best. technology and big success stories with personalities like Emil Zatopek. The low-end products. for the “normal consumer” still have a high technology and level of innovation because of their inheritance of the older innovations and technology from the Equipment line. first 20 national. (Source-www. Reasons for that is one can relate to or identify one self to Nike’s marketing campaigns like “Just do it” and the companies front athletes like Michael Jordan and Tiger Woods. They made TV and other advertising campaigns.35 5 with which they made great success. based on the same idea.000 participants all over the bigger cities in Europe.53 was the first company to establish 15 flagship stores and it turned out to 7. Adidas choice was 10 to experiment with sport events. Mohammad Ali. Adidas did not just spend more money. whatever the product was.we know now” and “There is nothing between you and success.9 billion in 2002.7 billion in 1992 to $4. Nike Town shops in bigger city’s. All marketing actions that both companies are implementing will hopefully result in loyal customers. This strategy made the Adidas brand take on a different meaning. The Nike customer associated the Nike brand with words like sports. it still meant participation. The survey was made in late 1990s. Adidas tried to spread meanings like “We know then. modern and cool.
3.5 Advertising Media Consideration The reason that this media was selected was because television.1. NBA website (www. 3. When it came to the Internet ads are a top banner.2 Advertising unit: When it came to the advertising unit for television Adidas only runs: 30 seconds ads since most of these ads are played during NBA games. on page five you will see the ad which it a top banner.4 Target Audience: When it came to any product the audience is very important. ADVERTISING METHOD & MEDIA SELECTION The media that was used of “The Brother Hood” will be television.nba. You need to know who are going to be interested in the product. As a multinational company Adidas have separate advertising strategy in different area of the world.espn. The media vehicles that are use for Internet were ESPN website (www.1 Media Vehicles: The media vehicles that were used for television will be ABC basketball games. Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-9 . TNT basketball games. The time of day in which “The Brotherhood” would be run on television is during the evening while the NBA is holding their regular games.cnn.go. 3.1.1 Core Advertising Consideration The core advertising factors of Adidas are as follows. Besides that a huge amount of data about Adidas advertising related activities. The reason for this is that the basketball season begins in October which is in the fourth quarter. on page four you will see TMAC jersey for boys 8-20 and older males.1. magazines and Internet. 3. The ads in magazines are full page. When it came down to this “The Brotherhood” is mostly for boys ages 8-20 and for older males.com). For example.com). ESPN basketball games and ESPN 2 basketball games and ESPN’s Sports Center.3 Seasonality: Since “The Brotherhood” is made up of The NBA the seasonality will be during the fourth quarter.” Besides Adidas have several technique in media selection which have discussed in the following sections. 3. Sports Illustrated website (sportsillustrated. For example.1. magazines and Internet were the best way in which Adidas were able to show there customers their products.com). As you see below the picture on the third page that says “Adidas NBA Shop.” in order for Adidas to promote the “The Brotherhood” they had to come up with a slogan in which they called it “NBA is a Brotherhood.shopadidas. The media vehicles that were going to be used for magazines were Sports Illustrated and ESPN Magazine. Adidas website (www.com).1. When it comes to the Internet “The Brotherhood” is advertise daily and at all times. 3.Advertising Strategy of Adidas: A comparative Study 3.
The purpose of Ad Tracking is generally to provide a measure of the combined effect of the media weight or spending level. mobile telephone screens. where main character played by Will Smith mentions his Converse shoes several times. stickers on apples in supermarkets. Any place an "identified" sponsor pays to deliver their message through a medium is advertising. These shifts in perception are plotted against the consumers’ levels of exposure to the company’s advertisements and promotions. roof mounts and passenger screens. or his watch engraved with the Bulgari logo. in a film. shopping cart handles (grabertising).1 Covert advertising Covert advertising is when a product or brand is embedded in entertainment and media. covert advertising." because the film is set far in the future. elastic bands on disposable diapers. street furniture components. cinema and television adverts. sides of buses. the main character can use an item or other of a definite brand. Adidas also use this advertising technique. Print media advertisement. Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-10 . Infomercials.2. musical stage shows. 3. human billboards. the effectiveness of the media buy or targeting. Another example of advertising in film is in I. One way to measure advertising effectiveness is known as Ad Tracking. Celebrities advertisement. Robot. Adidas use several advertising media to promote their product in the marketplace. banners attached to or sides of airplanes ("logo-jets"). web pop-ups. taxicab doors. printed flyers and rack cards. the opening section of streaming audio and video. and the quality of the advertising executions or creative. radio. Robot and Spaceballs also showcase futuristic cars with the Audi and Mercedes-Benz logos clearly displayed on the front of the vehicles.Advertising Strategy of Adidas: A comparative Study 3. where Tom Cruise's character John Anderton owns a phone with the Nokia logo clearly written in the top corner. e-mail etc. magazines. Online advertisement. Different advertising media use in the in the market like commercial advertisement. I. Public transport advertisement. as in the movie Minority Report. billboards. skywriting. posters. calling them "classics. subway platforms and trains. and the backs of event tickets and supermarket receipts. inflight advertisements on seatback tray tables or overhead storage bins. bus stop benches.2 Advertising Media Commercial advertising media can include wall paintings. shopping carts. For example. town criers. This advertising research methodology measures shifts in target market perceptions about the brand and product or service. newspapers. web banners.
so that the consumer sees the presentation and then immediately buys the product through the advertised toll-free telephone number or website. CNN etc. Adidas arrange several infomercials in the sports based program.Advertising Strategy of Adidas: A comparative Study 3.3 Infomercials There are two types of infomercials.2 Television commercials The TV commercial is generally considered the most effective mass-market advertising format. money. Long form infomercials have a time length of 30 minutes. 3. Infomercials are also known as direct response television (DRTV) commercials or direct response marketing.2. Adidas use David Bekham as their brand ambassador and many more celebrities in every region to promote their product. 3. Short form infomercials are 30 seconds to 2 minutes long. The main objective in an infomercial is to create an impulse purchase. It is typically inserted into otherwise blank backdrops or used to replace local billboards that are not relevant to the remote broadcast audience. Adidas has a large amount of TV commercial advertisements in the worldwide TV network like BBC. and often demonstrate products and their features. when celebrities share their favorite products or wear clothes by specific brands or designers. Infomercials describe. fame. Advertisers often advertise their products.2. as is reflected by the high prices TV networks charge for commercial airtime during popular TV events.4 Celebrities This type of advertising focuses upon using celebrity power. Virtual advertisements may be inserted into regular television programming through computer graphics. for example. popularity to gain recognition for their products and promote specific stores or products. described as long form and short form. and commonly have testimonials from consumers and industry professionals. Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-11 . Celebrities are often involved in advertising campaigns such as television or print adverts to advertise specific or general products.2. The majorities of television commercials feature a song or jingle that listeners soon relate to the product. display.
Pulp and Black book as well as magazines such as Arena Home Plus and Teen Vogue. an engaging creative idea supervised by adidas Global Creative Director Michael Michalsky and Visionaire’s Stephen Gan. Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-12 . The Fall/Winter 2005 campaign is. adidas has switched from the black and white SS05 executions. The result is a new advertising campaign that clearly communicates adidas Originals’ street relevancy. The Fall/Winter 2005 ads will break globally in July 2005 issues of key lifestyle and fashion publications such as Kult. The frame of the ads shows humour and translates the freshness of the “High Energy High Style” concept.Advertising Strategy of Adidas: A comparative Study 3.3 Advertising approaches The positive impact on the market of the adidas Originals communication approach makes adidas Originals continue their successful new creative marketing tonality. as the one from Spring/Summer 2005. To Celebrate Originality. The shooting took place at Karl Lagerfeld’s studio in Paris. highlighted only by the iconic blue Trefoil. globalize and contemporize adidas Originals. All adidas Originals marketing communication efforts will evolve around three pillars in 2005: to energize. and in a playful opposing manner to last season. photographed by Karl Lagerfeld and underlines adidas Originals’ lifestyle relevance. to bright and energetic colours in FW05 ads. Adidas Originals contemporary street wear collections are inspired by the brand’s historical anecdotes.
We in the group think this differentiation is based on the differences in culture between the two companies and between Europe and USA. when Nike launched their subbrand product Alpha line which was benchmarked on Adidas already launched subbrand of the Equipment product line for the elite of sports men. We can find many similarities like endorsements strategies and the companies advertising strategies. but with a slight difference in communicated message. Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-13 . one can say that branding have been a totally determining factor. Adidas stand for a competing and winning over your self-attitude. events like Adidas Streetball Challenge was created. About advertising do both companies have about the same scale and scoop of advertising but they try to communicate different messages. As we can understand the two companies are aiming at nearly the same targeted customer group but with a slightly differentiation of attitude. by doing it trough the same medias. Adidas choose a brand-building strategy that built on the same theoretical criteria’s as Nike. that the both companies had the same target group. On top of that they made it so good that they are used as models in higher education. They challenged Nike in endorsement strategy. What differs in the endorsement strategies is that Adidas focuses in sponsoring teams and global events. and Nike stands for a winning over everyone attitude. Events like those communicated the Adidas brand around the world. you lose gold”. aggressive winner attitude which can be related the American sports attitude “You don’t win silver. using the techniques from each others successes. The companies are benchmarking each other. and in advertising. These messages from Adidas is. According to the results and positions the brand-building programs have given both Adidas and Nike in the sport industry. the only one you compete with is your self whereas Nike communicate a provocative. As an overall reflection one can see that Adidas had to overcome.Advertising Strategy of Adidas: A comparative Study CONCLUSION Both Adidas and Nike have used the same theoretical systems to create their brand building programs. Adidas had the same strategy within creating equity value to their brand. To differentiate them self and make totally own awareness activities. But they created a differentiation in identity of the brand (see comparing analysis in the Kapferer Prism Model above) compared to Nike. while Nike have their center of attention on stars in specific sport like basketball and Michael Jordan or in golf and Tiger Woods.
adidas.adidas.jdsports.ie/ "Adidas Orginals .press.fashiontrendsetter. http://www. 200902-25. Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-14 .co.adidas.uk/whatsnew. Adidas.aspx/tabid-4/79_read-8621/ Retrieved 7th June 2008 http://www.aspx?id=5375 Retrieved 7th June 2008 http://www.co.jdsports.html Retrieved 7th June 2008 http://www. `http://www.Advertising Strategy of Adidas: A comparative Study REFERENCES http://www.champion.com.com/campaigns/originalsss2009/content/#/lifestyle/full-length-film.press.adidas.com/en/DesktopDefault.Extended House Party Film".com/en/ Retrieved 7th June 2008 http://www.uk/whatsnew.com/content/fashion_events/2008/Adidas-Denim-by-Dieselin-store-event-p1.aspx?id=5508 Retrieved 7th June 2008 http://www. Retrieved on 2009-03-20.
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