CASE STUDY: ADIDAS
This report contains information regarding the global brand Adidas in relation to the consumer’s decision making process and its positioning strategy. The report starts off with a brief introduction followed by the consumer decision making process section which goes into how a consumer would end up purchasing an Adidas product. This is then followed by the positioning strategies section which includes a perceptual map and discusses Adidas’s positioning differences and how it is slightly differently perceived to its main competitor Nike. This is finally followed by a conclusion which sums up the report.
The global brand Adidas is a sports clothing manufacturer from Germany which was registered in 1949. They have a large range for both men and women including shoes, hats, leisure and casual wear and an assortment of accessories. Adidas is has millions of customers that go through the consumer decision making process on a daily basis and because of the way that it has positioned itself in the market, consumers regularly decide to buy Adidas products.
Section one – Decision Making Process
Like any other product, when purchasing Adidas sportswear the consumer will go through the five stages of the consumer decision making process. The first stage is need recognition where the consumer realises a difference between his or her current and desired state. The second stage is pre purchase search which is when the consumer Searches for information on ways to solve a perceived problem or fulfil a want or need. This could simply mean they have a heightened attention or may actively search for information. The next stage is evaluation of alternatives. The consumer evaluates their choices as a result of their information search. After this the consumer makes a purchase decision in which they actually buy the product. Finally, the last stage is the outcomes or post purchase behaviour, where the consumer may take action after the purchase based on satisfaction or dissatisfaction. Each of these stages is influence by both internal and external factors. In the case of a consumer buying Adidas sportswear, need recognition will occur quite easily as the consumers actual state is that they need clothing and the need is above their threshold. There are many factors that may affect this internally and externally. For example the consumer maybe a growing teenager that has grown out of their shoes. In their actual state they are quite uncomfortable as their existing clothes don’t fit and in their desired state they will feel and look more comfortable as their shoes now fit. This is an internal influence. An example of an external influence would be that if the same teenager moved from Darwin to Melbourne, they would want to go from their actual state of being cold because they don’t have warm enough clothes to their desired state of being warm and comfortable. At the information search stage, the Teenager has realised that he might be satisfied buy the purchase of some shoes. Internally, the consumer will have their own information in the recollection of past experiences which will influence their decision. The teenager may have previously bought a pair of High Top shoes and not been happy with them so they will buy a different type of shoe. Externally, the consumer will engage in research based on how high the perceived risk is. This may be limited by external factors for example if the teenager lived in a remote area with no internet, they would be as effective in their information search as someone who lives in the city with high speed internet. When the teenager decides that he wants a pair of casual shoes, the evaluation of alternatives occurs. The evoked set of brands the teenager will have in this case will be most likely Adidas and Nike. Internally, the teenager may be in a very good economic situation and therefore is able to choose from virtually...