Professional Documents
Culture Documents
Marketing Strategy
Submitted to:
Deepti Srivastava
Submitted By:
Vijayta Yadav
Satyendra Yadav
Tinku Yadav
Himanshu Kanaujia
Abhinav
Anurag
Rahul
INTRODUCTION
Adidas was created by Adolf Dassler who took his nickname, Adi, and combined it with
the first syllable of his last name to create the Adidas brand. Adidas first started using
athletes to promote their line of products. In the 1936 Olympic Games, 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, Zinedine Zidane, David Beckham
are sponsored by Adidas.
At the end of the 1970s Adidas dominated the world market in sportswear. But in 1978,
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.
As a result Adidas was overtaken by Nike in the 1980s, 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. In 1997 Adidas
sales had climbed over 50% from the previous year, jumping back as the driving force in
the sportswear market.
ADIDAS IN INDIA
1999 - introduced the cheapest range of shoes they had ever sold
There are various prices on the x-axis and on y-axis we have the
percentage population.
Then we increased our price to `1500-1999, and then we have 25% of the
population. Most of them are ready to buy at these prices just coz they
believe that adidas may not compromise with the quality. And these
prices they can afford.
Strengths
Took advantage of the trend in mobile media advertising early, before many
competitors.
The Respect M.E. ad campaign reached out to America's youth.
Ahead of the curve on innovative advertising, due to limited budget.
Partnership with MTV further enhanced its image of cool.
Attained consumer confidence and comfortability with the adidas logo on their
cell phones.
The adidas arcade-style soccer game applet creates a complete brand
experience for users.
Breaking into the large, urban basketball market (U.S.)
Weaknesses
Video games can provide a brand experience specifically aimed at the 12-24
year old demographic.
Digital media offers richer, more personal, transactional experiences than
television or print.
Advertising through mobile media can be delivered directly to a targeted
audience.
While having the portability of print, mobile media devices are more time-
sensitive, providing continuous on-time delivery content.
3G-equipped cell phones allow users to browse the web, watch movie clips and
sporting events, download music and play games; this opens new doors for adidas.
Lag in technology adoption in the U.S. cell phone market enables adidas to test
new products in Europe before launching them in the U.S..
Target the achievers psychographic.
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).
Pop-up blockers and digital video recorders provide customers with ways to
avoid unwarranted messages.
Scarcity of time available to directly address consumers.
The dot-com-induced stock market decline of 2000 lost the confidence of many
would-be advocates of digital media.
Hard to measure the effectiveness of mobile marketing in a rapidly changing
technological environment.
Advertising must be tailored to regional tastes in different countries.
Out of adidas, Reebok, and Nike, adidas is the least preferred brand among
consumers.
Failure to expand in North America could hamper adidas prospects in Asia and
threaten its leadership in Europe, where Nike is growing.
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, price, place and promotion. Collectively they are
called marketing mix. In the context of 4p’s product is to meet the needs of consumers
in terms of services and goods.
Place, 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.
Promotion of product also plays and important role in the marketing. Promotion of the
product increases the interest of customer and also creates a value and trust towards it.
It also gives the importance and relevance of the products. Promotion can also be
through the communication.
Price also matters it should be in accordance with your target customers. Also in such a
manner that it will give more revenues in short run.
Each mix has its own importance, remember if your marketing mix doesn’t meet the
needs of the customers then you will never meet your objectives. For example if you
have improve your product, then the cost in the production must increases as a result it
increases the cost of the product. 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.
PRODUCT PRICE PLACE PROMOTION
The product is the Pricing decisions Promotion decisions Place (or placement)
physical product or should take into are those related to decisions are those
service offered to account profit communicating and associated with
the consumer. In the margins and the selling to potential channels of
case of physical probable pricing consumers. Since distribution that
products, it also response of these costs can be serve as the means
refers to any Competitors. Pricing large in proportion for getting the
services or includes not only to the product price, product to the target
conveniences that the list price, but a break-even customers. The
are part of the also discounts, analysis should be distribution system
financing, and other performed when performs
offering. Product decisions options such as making promotion transactional,
include leasing. decisions. It is logistical, and
aspects such as useful to know the facilitating
function, value of a customer functions.
appearance, in order to Distribution
packaging, service, determine whether decisions include
warranty, etc. additional customers market coverage,
are worth the cost of channel member
acquiring them. selection, logistics and levels
Promotion decisions services.
involve advertising,
public relations,
media types, etc.
PRODUCT
we know that marketing is the fundamental to provide the actual benefit to the
customers. Marketing is not only to provide the product but it is to the change or to
communicate to the customers and convince about it. Adidas as a product people need
comfort, durability and style.
F50i
PRICING
is the only mix which generates the revenues to the company. 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 you made a higher price than it will
decrease the demand for the product and hence fewer buyers. Fewer buyers
ultimately lesser will be the sales and hence profit.
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. They might be question on
the quality of the product.
SUITABLE FOR THE TARGET CUSTOMERS - As higher as well as the lower price
will affect the value hence the price should be right. 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.
GENERATING THE REVENUES QUICKLY – pice also affect the revenues and the
profits of the company. If we talking in terms of profit maximization then
marginal revenue should be equal to marginal cost, MR = MC
Also the difference between the total revenue and the total cost should be
maximum,
π = TR – TC.
- competition T he company should aware about the competetors, what the similar
product company offering prices to customers.
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.
The place is where you can expect to find your customer and consequently,
where the sale is realized. Knowing this place, you have to look for a
distribution channel in order to reach your customer.
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!
TOOLS OF PROMOTION
Advertising
Public relations
Messages
Direct marketing
Sales
Media
Budget
Marketing mix plays an important role in increasing the sales and making a brand name in the
market. The right product on a correct price at a right place and with proper and constant
promotion plays a vital role in marketing. Adidas used the tool of Marketing mix rightly to enhance
the image and to conquer the market.