Advertising Strategy of Adidas: A comparative Study ADVERTISING STRATEGY OF ADIDAS A COMPARATIVE STUDY

Prepared As a course Requirement of (Advertising and Public Relation-mkt 424)

M. Atiqur Rahman
Patuakhali science and Technology University Bangladesh atik.bdpalo@yahoo.com www.pstu.ac.bd
Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-1

is a marketer of sports apparel and athletic shoes. Adidas will react to the consumers’ pessimistic attitude and stressful emotion during this period. But besides that. which can provide caring emotional communication. from both strong-willed hero worship and water-like fork environment. through its marketing strategy which rests on a favorable brand image. we also focus more about family function especially in Asian countries which emphasize a lot on family.Advertising Strategy of Adidas: A comparative Study EXECUTIVE SUMMARY Adidas Inc. The preferred media we choose are TV. The German manufacturer. the company makes huge investments in advertising and brand promotion. passion and humor. 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. giving people more courage and psychological comfort in face of economic crisis. but also warmth. specific magazines. "Impossible is Nothing. In keeping with the brand image is its association with the distinctive logo and its advertising slogan." In order to maintain and sustain this image. outdoor and internet. At the critical time of global economic crisis. Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-2 . has evolved into a large multinational enterprise. Therefore. determination. customers can easily link Adidas image with not only strength.

Shoes from the Adidas are available in virtually every country of the world.” The main focus of “The Brotherhood was Adidas to sponsor the NBA. Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-3 . Adidas is a global leader not only in the shoe industry. Then these six players decided to form a series that would help kids to discover their dream by playing with NBA Stars. apparel and accessories. Dwyane Wade of The Miami Heat. Today. When it came down to it Adidas and the NBA came up with the slogan called “Basketball is a Brotherhood. but also in the sporting goods industry.1 INTRODUCTION Adidas was formed by German sports apparel by the founder Adi Dassler during the 1920’s. “The Brotherhood” consists of Tracy McGRady of The Houston Rockets. “For over 80 years. Adidas has been part of the world of sports on every level. The way these six players were selected was by their athletic ability which is why they are also known as all stars. delivering stateof-the-art sports footwear. Recently Adidas and the NBA joined forces and made “The Brotherhood”. Chauncey Billups of the Detroit Pistons and Gilbert Arenas of the Washington Wizards.oddballshoe. After he made the shoe he had help from his brother and twelve other people to produce around 50 handmade shoes per day. Oddball is proud to carry quality large size Adidas.Advertising Strategy of Adidas: A comparative Study 1.com).” (www. A strong advertising and public Relation events makes adidas as a worldwide recognized brand and it would be more sustainable in the world market. These athletic shoes were made for running and training. While Dassler was in his mother’s wash room he decided to begin an athletic shoe. Tim Duncan of The San Antonio Spurs.

4 billion. Salomon Winter sports incl. during the Adidas recession. The connection of Adidas to the Olympics has a rich heritage. every official wore Adidas.Skateboard equipment.Outdoor apparel. hiking.7 billion. The European market shares dropped while Nike’s shares grew. golf shoes and finally. Adolf (Adi) Dassler founded Adidas and his brother Rudolph founded Puma. Bonfire Snowboard apparel. Activities of the company and its subsidiaries are directed from Adidas-Salomon AG's headquarters in Herzogenaurach. Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-4 . irons and accessories. Maxfli . 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 has 107 subsidiaries in 20 countries. especially the Olympics.Golf equipment. Between 1988 and 1992 Adidas total sales dropped from nearly $2 billion to $1. In 1990. climbing equipment. Activities: manufacture and distribution of textiles. market. The three-stripe logo was designed in 1941 by Adi Dassler and he registered it as a trademark for Adidas after the split. snowblades. The strength of Adidas was its product innovation. Arc'Teryx .Golf balls.2 billion to more than $3. Adidas also have had problems with the upstream value activities in their value chain. and they had a long supply chain . Adi Dassler registered more than seven hundred patents. From being the U. The most important marketing breakthrough was the active promotion of global sporting events. was that Adidas was unable to ship products when it was needed. In the same period. footwear and apparel. At the 1972 Olympic game in Munich. Cliché . in Herzogenaurach in Germany. Germany.Advertising Strategy of Adidas: A comparative Study 1. Adidas began selling its shoes in the United States after 1968 and in few years the company dominated the American market. Traditionally. After the split. shoes and appliances for sport and related products. apparel. snowboards. golf apparel. apparel. Nike’s sales went from $1. and hardware such as bags and balls. Adidas was holding on to just a two to three percent share of the U. Exploitation of the registered trademark “Adidas” is made where ever it is an opportunity. and exports to 160 countries.2 HISTORY OF ADIDAS The company Adidas was founded in the early 1920s as Gebruder Dassler Schuhfabrik.Footwear. What happened in the '70s and forward. Mavic -Cycle components.it took 18 months to get a new shoe into the market. market leader in the late 1970s. inline skates.S. Adidas’s market share dropped to 3 percent in 1992. skis. Taylor MadeAdidas Golf . The family company split in 1948. Products: Adidas .S. ski boots and bindings. the company have their own factories and wholly owned subsidiaries.

The company's clothing and shoe designs typically feature three parallel bars. to its US rival Nike. Besides sports footwear. often in English. the company also produces other products such as bags. The situation analysis consists of the market trend analysis and competitor analysis. shirts. The company is the largest sportswear manufacturer in Europe and the second biggest sportswear manufacturer in the world. The company revenue for 2008 was listed at €10. FWB: ADS) is a German sports apparel manufacturer and part of the Adidas Group. SITUATION ANALYSIS Adidas AG (pronounced [AH-dee-'dahs]. in the company of Coca-Cola. With its “Impossible is Nothing” campaign and strong product. Therefore. During this stage. Chart-1: Adidas Net Sales data in Euro (million) 2002-06 (Source-www. command higher prices and generate more revenue than its competitors.299 billion.com) Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-5 . and the same motif is incorporated into Adidas's current official logo. since the late 1980s. or about US$15. A strong brand allows its owner to expand market share.6 billion. Nike was able to increase its share of the domestic sport-shoe business from 18 percent to 43 percent.Advertising Strategy of Adidas: A comparative Study 2. Gillette and Proctor & Gamble. 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. Taylor Made-adidas golf company.adidas.799 billion and the 2007 figure was listed at €10. 2. Consumers are willing to pay more for brands that they judge to be superior in quality. and other sports and clothing related goods. which consists of Reebok sportswear company.2 billion in the ten years between 1988 and 1998.1 Market Trend Analysis Adidas earn from EU 877 million in worldwide sales to EU 9. and Rockport. the Adidas brand has become so strong as to place it in the rarified air of recession-proof consumer branded giants. style and reliability. Adidas has worked to transform itself from a brand of sneakers to a product integral to the sports culture.

A SWOT analysis would be helpful to understand the competitive environment. Adidas larger competitor Nike has a grater market share and having a big budget in marketing activity. GAP has increase their advertising budget in recent years. Figure: Adidas expence to advertising (billion Euro). • Sponsors football teams with maximum fan following in India and USA. Opportunity and Threats. Increasing demand on the sportswear. (Source-www. • Has not do well in Indian subcontinent market. WEAKNESSES • Rigid pricing structure. Weakness. Amount of competitors increasing day by day.wekipedia. Term Paper (8th Semester) Page-6 THREATS Copyright : group-1©bba®pstu . Besides that it would have several small competitors. This four trends are analyze below.Advertising Strategy of Adidas: A comparative Study 2.org) STRENGTHS • Largest International portfolio of sport ambassadors. • Highest brand image in India according to our survey.2 Competitor Analysis Adidas has two lager competitors Nike and Rebook. Positive and increasing market trends can increase through the effective advertising. SOWT Analysis: A SWOT analysis comprise of strength. The newly born several brands like CAT. • Our survey shows Nike behind Reebok & Adidas in market share in India. OPPORTUNITIES • • • • • • Has a great opportunity to expand international market.

This will help them to create awareness with help from different types of media. sponsorship programs focusing on major global events. It can include user imaginary. Brand loyalty is at the hart of any brand’s value. Comparative analysis Nike centred their brand equity model on the platforms. In contrast Nike has their focus on individuals like M. is basically how the customer perceive the brands quality status. The concept is to strengthen the size and intensity of each loyalty segment.Advertising Strategy of Adidas: A comparative Study 2. organizational associations. brand associations. use situations. endorsement focus strategy. 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 . About the second strategy. Brand awareness is the base to affect the consumer perception and even taste. and symbols. creating a dominant media presence. According to D. Brand associations can be anything that connects the customer to the brand. People like the familiar and are prepared to ascribe all sorts of good attitudes to the items that are familiar to them. and brand loyalty. To create brand awareness both companies have been using endorsement strategies in their brand-building programs. and teams.g. perceived quality. 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. Woods and their success stories. sports associations. Jordan and T. and sub-brands.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. Nike’s advertising strategy was to create dominant presence in media. not products. development of Flagship stores. the endorsement focus strategy. See figure below. This asset can be created and analysed trough the four dimensions. NikeTown and subbranding. The Adidas strategies were based on. Brand Equity 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. What differs is that Adidas focuses on sponsorship of teams and events e. Perceive quality. product attribute. advertising. advertising. brand associations. Aaker perceived quality is a special type of association. TV ads linking Nike to a city were used. national teams and big sport events like the Olympic Games and different World Championship events. but real drivers were huge oversized billboards and murals on buildings that blanketed cities with messages featuring key Nike-sponsored athletes. Nike created media presence in several trend setting United States cities. brand awareness.

Examples of that is the Adidas Streetball Challenge a local three-person team basketball tournament. emotion and performance.adidas.com) In the mid 1990s it had become a huge sport event with about 500. attitudes and life style. The company communicate their heritage of innovation. Nike 20 Town shops in bigger city’s.29 25 Nike’s third strategy was to develop.35 be a sensation. 30 25. Adidas choice was 5 to experiment with sport events. whatever the product was. flag ship stores.24 business. 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. In the finals in Germany it attracted 3200 players and 40.53 national. According to sales figures for the both companies. The survey was made in late 1990s. (Source-www.9 billion in 2002. Adidas did not just spend more money. and then abroad. so exceed your own expectations and limitations” and “ Earn it”. Adidas made hereby a brand-building success. 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. 22.000 participants all over the bigger cities in Europe.8 billion in 1998. modern and cool. They made TV and other advertising campaigns. 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. Adidas advanced from $1. This strategy made the Adidas brand take on a different meaning. Nike advanced from $1 billion dollars in 1986 to $ 9. first 13. The success was obvious and after hard work and striving toward a top position in the industry Adidas was back in 28. based on the same idea. 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. The “Equipment” subbrand would represent the best. Mohammad Ali. This was a success strategy for Adidas so successful that Nike copied their idea and introduced their own line. Adidas tried to spread meanings like “We know then. 0 with which they made great Nike adidas Reebok Pow er Puma Others success. they made an impact with brilliant executions.7 billion in 1992 to $4. All marketing actions that both companies are implementing will hopefully result in loyal customers. Adidas introduced a subbrand in 1990 to serve the high-end products for all categories of shoes and apparel. The low-end products.000 spectators. Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-8 .65 10 flagship stores and it turned out to 2. Nike 15 was the first company to establish 7. it still meant participation.Advertising Strategy of Adidas: A comparative Study conditions and the same strength as Nike did to capture the consumer interest. the Alpha line. technology and big success stories with personalities like Emil Zatopek.we know now” and “There is nothing between you and success.94 The Nike customer associated the Nike brand with words like sports. For Adidas one image study of consumers found the brand very trendy.

3. The ads in magazines are full page. The media vehicles that were going to be used for magazines were Sports Illustrated and ESPN Magazine. Sports Illustrated website (sportsillustrated. magazines and Internet. on page five you will see the ad which it a top banner. Adidas website (www. 3. 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. magazines and Internet were the best way in which Adidas were able to show there customers their products. For example. 3. ESPN basketball games and ESPN 2 basketball games and ESPN’s Sports Center.nba. 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. ADVERTISING METHOD & MEDIA SELECTION The media that was used of “The Brother Hood” will be television.1. As you see below the picture on the third page that says “Adidas NBA Shop.1 Core Advertising Consideration The core advertising factors of Adidas are as follows.com).1. 3. 3.go.Advertising Strategy of Adidas: A comparative Study 3.com). NBA website (www. When it came down to this “The Brotherhood” is mostly for boys ages 8-20 and for older males. When it comes to the Internet “The Brotherhood” is advertise daily and at all times. Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-9 .” Besides Adidas have several technique in media selection which have discussed in the following sections.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.3 Seasonality: Since “The Brotherhood” is made up of The NBA the seasonality will be during the fourth quarter. TNT basketball games. For example.cnn.com).” 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. When it came to the Internet ads are a top banner.1.1. As a multinational company Adidas have separate advertising strategy in different area of the world. The media vehicles that are use for Internet were ESPN website (www.espn.com).5 Advertising Media Consideration The reason that this media was selected was because television.1 Media Vehicles: The media vehicles that were used for television will be ABC basketball games.1. 3. You need to know who are going to be interested in the product.4 Target Audience: When it came to any product the audience is very important.shopadidas.

and the quality of the advertising executions or creative. 3. cinema and television adverts. This advertising research methodology measures shifts in target market perceptions about the brand and product or service. the effectiveness of the media buy or targeting. The purpose of Ad Tracking is generally to provide a measure of the combined effect of the media weight or spending level. shopping carts. where main character played by Will Smith mentions his Converse shoes several times." because the film is set far in the future. sides of buses. Online advertisement. skywriting. town criers. bus stop benches. as in the movie Minority Report. One way to measure advertising effectiveness is known as Ad Tracking. newspapers. Another example of advertising in film is in I. Robot and Spaceballs also showcase futuristic cars with the Audi and Mercedes-Benz logos clearly displayed on the front of the vehicles. Public transport advertisement. billboards. printed flyers and rack cards. musical stage shows. For example. Infomercials. roof mounts and passenger screens. e-mail etc. Any place an "identified" sponsor pays to deliver their message through a medium is advertising. or his watch engraved with the Bulgari logo. calling them "classics.2. shopping cart handles (grabertising). banners attached to or sides of airplanes ("logo-jets"). web banners. Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-10 . stickers on apples in supermarkets. radio. web pop-ups. in a film. Robot. posters. human billboards. elastic bands on disposable diapers. Print media advertisement. subway platforms and trains. Adidas also use this advertising technique. covert advertising. Celebrities advertisement. Different advertising media use in the in the market like commercial advertisement. taxicab doors. the opening section of streaming audio and video. Adidas use several advertising media to promote their product in the marketplace. I.Advertising Strategy of Adidas: A comparative Study 3. and the backs of event tickets and supermarket receipts. where Tom Cruise's character John Anderton owns a phone with the Nokia logo clearly written in the top corner.2 Advertising Media Commercial advertising media can include wall paintings. mobile telephone screens. street furniture components. inflight advertisements on seatback tray tables or overhead storage bins. the main character can use an item or other of a definite brand. magazines.1 Covert advertising Covert advertising is when a product or brand is embedded in entertainment and media. These shifts in perception are plotted against the consumers’ levels of exposure to the company’s advertisements and promotions.

fame.3 Infomercials There are two types of infomercials. Infomercials describe. described as long form and short form.Advertising Strategy of Adidas: A comparative Study 3. Short form infomercials are 30 seconds to 2 minutes long.2 Television commercials The TV commercial is generally considered the most effective mass-market advertising format. when celebrities share their favorite products or wear clothes by specific brands or designers.2. Advertisers often advertise their products. Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-11 . Infomercials are also known as direct response television (DRTV) commercials or direct response marketing. as is reflected by the high prices TV networks charge for commercial airtime during popular TV events. Adidas use David Bekham as their brand ambassador and many more celebrities in every region to promote their product. Celebrities are often involved in advertising campaigns such as television or print adverts to advertise specific or general products. Virtual advertisements may be inserted into regular television programming through computer graphics. The majorities of television commercials feature a song or jingle that listeners soon relate to the product. and often demonstrate products and their features.4 Celebrities This type of advertising focuses upon using celebrity power. It is typically inserted into otherwise blank backdrops or used to replace local billboards that are not relevant to the remote broadcast audience. Adidas arrange several infomercials in the sports based program. and commonly have testimonials from consumers and industry professionals. display.2. The main objective in an infomercial is to create an impulse purchase. popularity to gain recognition for their products and promote specific stores or products. 3. money. Long form infomercials have a time length of 30 minutes. so that the consumer sees the presentation and then immediately buys the product through the advertised toll-free telephone number or website. for example. 3. Adidas has a large amount of TV commercial advertisements in the worldwide TV network like BBC. CNN etc.2.

globalize and contemporize adidas Originals. The result is a new advertising campaign that clearly communicates adidas Originals’ street relevancy. an engaging creative idea supervised by adidas Global Creative Director Michael Michalsky and Visionaire’s Stephen Gan. The Fall/Winter 2005 campaign is. photographed by Karl Lagerfeld and underlines adidas Originals’ lifestyle relevance. highlighted only by the iconic blue Trefoil. Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-12 .Advertising Strategy of Adidas: A comparative Study 3. The frame of the ads shows humour and translates the freshness of the “High Energy High Style” concept. as the one from Spring/Summer 2005. Adidas Originals contemporary street wear collections are inspired by the brand’s historical anecdotes. and in a playful opposing manner to last season. To Celebrate Originality. The shooting took place at Karl Lagerfeld’s studio in Paris.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. Pulp and Black book as well as magazines such as Arena Home Plus and Teen Vogue. All adidas Originals marketing communication efforts will evolve around three pillars in 2005: to energize. to bright and energetic colours in FW05 ads. The Fall/Winter 2005 ads will break globally in July 2005 issues of key lifestyle and fashion publications such as Kult. adidas has switched from the black and white SS05 executions.

events like Adidas Streetball Challenge was created. 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. What differs in the endorsement strategies is that Adidas focuses in sponsoring teams and global events. one can say that branding have been a totally determining factor.Advertising Strategy of Adidas: A comparative Study CONCLUSION Both Adidas and Nike have used the same theoretical systems to create their brand building programs. using the techniques from each others successes. They challenged Nike in endorsement strategy. by doing it trough the same medias. We in the group think this differentiation is based on the differences in culture between the two companies and between Europe and USA. and Nike stands for a winning over everyone attitude. But they created a differentiation in identity of the brand (see comparing analysis in the Kapferer Prism Model above) compared to Nike. Adidas choose a brand-building strategy that built on the same theoretical criteria’s as Nike. you lose gold”. aggressive winner attitude which can be related the American sports attitude “You don’t win silver. but with a slight difference in communicated message. These messages from Adidas is. We can find many similarities like endorsements strategies and the companies advertising strategies. Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-13 . As we can understand the two companies are aiming at nearly the same targeted customer group but with a slightly differentiation of attitude. About advertising do both companies have about the same scale and scoop of advertising but they try to communicate different messages. Adidas stand for a competing and winning over your self-attitude. Events like those communicated the Adidas brand around the world. The companies are benchmarking each other. To differentiate them self and make totally own awareness activities. while Nike have their center of attention on stars in specific sport like basketball and Michael Jordan or in golf and Tiger Woods. On top of that they made it so good that they are used as models in higher education. the only one you compete with is your self whereas Nike communicate a provocative. According to the results and positions the brand-building programs have given both Adidas and Nike in the sport industry. As an overall reflection one can see that Adidas had to overcome. Adidas had the same strategy within creating equity value to their brand. and in advertising. that the both companies had the same target group.

uk/whatsnew.press.adidas.ie/  "Adidas Orginals .com/content/fashion_events/2008/Adidas-Denim-byDiesel-in-store-event-p1.uk/whatsnew. http://www.fashiontrendsetter.com/campaigns/originalsss2009/content/#/lifestyle/full-length-film.jdsports.press. Adidas.aspx?id=5508 Retrieved 7th June 2008  http://www.jdsports.aspx?id=5375 Retrieved 7th June 2008  http://www. `http://www.com/en/DesktopDefault.Extended House Party Film".com/en/ Retrieved 7th June 2008  http://www. Retrieved on 2009-03-20.adidas.com.Advertising Strategy of Adidas: A comparative Study REFERENCES  http://www.html Retrieved 7th June 2008  http://www.adidas. 200902-25.adidas.champion.co. Copyright : group-1©bba®pstu Term Paper (8th Semester) Page-14 .aspx/tabid-4/79_read-8621/ Retrieved 7th June 2008  http://www.co.

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