ADVERTISING STRATEGIES OF ADIDAS

SUBMITTED BY:NAMITA AGGRWAL A3906410162

RESEARCH METHODOLOGY
Secondary data:There are basically two sources to collect secondary data: Internally: Provided by the company/organization Externally: Various publication of central, state and local Government,Books, magazines, newspapers,Internet After only keeping in mind one can think about what type of data has to be collected during research as our research is concerned I have used secondary data .

Research used: Secondary data

INTRODUCTION

Adidas Inc. is a marketer of sports apparel and athletic shoes. The German manufacturer, through its marketing strategy which rests on a favorable brand image, has evolved into a large multinational enterprise. In keeping with the brand image is its association with the distinctive logo and its advertising slogan, "Impossible is Nothing." In order to maintain and sustain this image, the company makes huge investments in advertising and brand promotion.

Adidas use several advertising media to promote their product in advertising media.

ADVERTISING MEDIA

Covert advertising Covert advertising is when a product or brand is embedded in entertainment and media. For example, in a film, the main character can use an item or other of a definite brand.

Television commercials The TV commercial is generally considered the most effective massmarket advertising format, as is reflected by the high prices TV networks charge for commercial airtime during popular TV events. The majorities of television commercials feature a song or jingle that listeners soon relate to the product. Virtual advertisements may be inserted into regular television programming through computer graphics

ADVERTISING MEDIA(contd)

Infomercials On television, an infomercial is a short or regular-length television program that combines information presentation with an integrated suggestion to buy a particular product or service. Exercise equipment and correspondence courses are two products sometimes sold through infomercials. . Adidas arrange several infomercials in the sports based program.

Celebrities This type of advertising focuses upon using celebrity power, fame, money, popularity to gain recognition for their products and promote specific stores or products. Adidas use David Bekham as their brand ambassador and many more celebrities in every region to promote their product.

ADVERTISING METHOD & MEDIA SELECTION

The media that was used of The Brother Hood will be television, magazines and Internet.

Core Advertising Consideration The core advertising factors of Adidas are as follows. Besides that a huge amount of data about Adidas advertising related activities. As a multinational company Adidas have separate advertising strategydifferent area of the world.

Media Vehicles: The media vehicles that were used for television will be ABC basketball games, TNT basketball games, ESPN basketball games and ESPN 2 basketball games and ESPNs Sports Center.

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. The ads in magazines are full page. When it came to the Internet ads are a top banner. Marhet segments Geographic segmentation Density: Urban and semi-urban cities Demographic segmentation Age: 15 to 35 Income level: >Rs. 15,000 Social class: Upper middle, lower upper and upper class

ADVERTISING METHOD & MEDIA SELECTION(contd)

Gender: Male and female

MARKET NEEDS

Comfort Durability Style Price Brand

THE INDUSTRY

COMPETITIVE SCOPES

ADIDAS is in the sportswear, apparel and sports accessories industry. The main competitors of ADIDAS in the industry are NIKE, and PUMA since it acquired REEBOK in January, 2006.

NIKE

Nike is currently the world leader in Sports goods industry with a brand value of $12,672 million. The company concentrates on style and technology with a high price range of the products. A German based company best known for its football shoes and athletic shoes. The competition from Puma has become stronger after the 2008 Olympics in which the Jamaican sprinter Usain Bolt broke records and won 6 gold medals. Bolt was wearing Puma shoes!

PUMA AG

PRODUCTS AND APPLICATIONS

RUNNING Shoes, spikes, socks, FOOTBALL Studded boots, stockings, team-its, warm up suites BASKETBALL Shoes, jerseys n shorts, team kits GOLF TAYLORMADE Hats, gloves, bags, vintage clubs (golf sticks), golf balls, putters,

CASUAL Footwear and clothing Apparels and accessories

1989 entered India, license agreement with Bata

ADIDAS in India

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

Adidas strategy in India has been consistent over the past few years. The broad elements of the strategy are to target the brand to urban youth

SOWT Analysis
A SWOT analysis comprise of strength, Weakness, Opportunity and Threats. This four trends are analyze below.

STRENGTHS

Largest International portfolio of sport ambassadors. Sponsors football teams with maximum fan following in India and USA. Highest brand image in India according to our survey. Rigid pricing structure. Our survey shows Nike behind Reebok & Adidas in market share in India. Has not do well in Indian subcontinent market.

WEAKNESSES

SOWT Analysis(contd)
OPPORTUNITIES

Has a great opportunity to expand international market. Increasing demand on the sportswear. Positive and increasing market trends can increase through the effective advertising.

THREATS

Adidas larger competitor Nike has a grater market share and having a big budget in marketing activity. The newly born several brands like CAT, GAP has increase their advertising budget in recent years. Amount of competitors increasing day by day.

FINDINGS

Both Adidas and Nike have used the same theoretical systems to create their brand building programs. We can find many similarities like endorsements strategies and the companies advertising strategies. What differs in the endorsement strategies is that Adidas focuses in sponsoring teams and global events, while Nike have their center of attention on stars in specific sport like basketball and Michael Jordan or in golf and Tiger Woods.

About advertising do both companies have about the same scale and scoop of advertising but they try to communicate different messages. These messages from Adidas is; the only one you compete with is your self whereas Nike communicate a provocative, aggressive winner attitude which can be related the American sports attitude You dont win silver, you lose gold. As we can understand the two companies are aiming at nearly the same targeted customer group but with a slightly differentiation of attitude. Adidas stand for a competing and winning over your self-attitude, and Nike stands for a winning over everyone attitude.
We in the group think this differentiation is based on the differences in culture between the two companies and between Europe and USA.

FINDINGS(contd)

As an overall reflection one can see that Adidas had to overcome, that the both companies had the same target group. Adidas choose a brand-building strategy that built on the same theoretical criterias as Nike. But they created a differentiation in identity of the brand compared to Nike Adidas had the same strategy within creating equity value to their brand. They challenged Nike in endorsement strategy, and in advertising, but with a slight difference in communicated message, by doing it trough the same medias. To differentiate them self and make totally own awareness activities, events like Adidas Streetball Challenge was created. Events like those communicated the Adidas brand around the world.
According to the results and positions the brand-building programs have given both Adidas and Nike in the sport industry, one can say that branding have been a totally determining factor. On top of that they made it so good that they are used as models in higher education.

RECOMMENDATIONS

Close cooperation with retailers can significantly improve the in-store experience for the product A multi-brand approach will provide the firm with a major competitive advantage and help achieve given the diverse tastes and expectations of a highly fragmented consumer market

The DIFFERENTIATION strategy would help the firm in competing in a competing market place.The firm has a strong grip only in the basketball and casual wear product line. Diversification of the products athletics, cricket and hockey would enormously help the firm in competing in such a market as cricket is the most popular sport in India. This would be a tough task since Nike is the sponsor of the Indian national cricket team.
The acquisition of Reebok has created significant opportunities to reduce and optimize costs, through scale benefits, back office consolidation and combined capital expenditure planning.

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