Mobile Marketing at Adidas
Adidas is a well-known athletic brand around the world. Adidas currently needs to increase their market share to increase profits. Nick Drake from Global Media Group believes that Adidas needs to change the way they market in order to increase their market share in the United States. Nick has introduced the concept of mobile marketing to Adidas but Adidas has many concerns about implementing mobile media as a marketing tool to increase market share within the United States due to many different concerns. Situation
The need for Adidas currently is for them to increase their market share especially in the United States. The current issues for Adidas are that Nike is increasing their market share in Europe where Adidas was the leader in the market. Nike by 2003 increased their market share in Europe in the soccer industry to 34% which surpassed the market share of Adidas which left them at 30%. Adidas main issue is to increase market share in the United States where Nike is the current leader with 40% of the market share compared to Adidas who has 16% of the market share. The main focus of Adidas is to gain the basketball market share in the United States. Drake from Global Media Group is having difficulties convincing Adidas America that mobile media is the latest and innovate approach to target the target market that Adidas is aiming to reach. But with the downfall and decline of the dot.com era in 2000 convincing Adidas or any other company at this point was not a simple task. Another issue for Adidas is that the United States lagged in the latest technology for this media to penetrate into that market so Adidas was able to test it in the European market prior to entering the United States market with this media. When Drake from Global Media Group spoke with Adidas United States they were against the idea of using mobile marketing until they saw the proposal, and then they jumped on board. SWOT
Adidas is one of the most well-known athletic brands around the world, which gives them the advantage to market their products using innovative tools due to the strength of their brand name. There are many strengths that mobile marketing can bring to Adidas. Currently people are giving up their landlines for their mobile phones which would increase Adidas’s population to target through this media. Also if Adidas sends promotions items such as ringtones and wallpapers it is less clutter than paper advertisements meaning consumers would retain these advertisements much more than the traditional paper advertisement. Also mobile users use their mobile phones for daily use for music, memos, planners, internet, emails and reminders. So sending media via mobile would target more people than having an advertisement in a magazine or on TV. Another strength for Adidas is that they have the budget and capability to implement this marketing and have the resources such as celebrities to endorse their products, which many companies do not have. . Weaknesses
Some of the weaknesses for mobile marketing are the lack of user experience or knowledge of smartphones. There are many consumers in the target market that may not be fully aware or capable of how to use their mobile devices, therefore the mobile marketing would not reach these consumers. There is also the risk of consumer’s not purchasing smartphones which would also decline the efficiency and effectiveness of mobile marketing. Another weakness for Adidas is the loss in market share. In the United States they lack market share against the biggest competitor Nike whom has 40% of the market share compared to Adidas who has 16% of the market share. Also by 2003 Adidas also lost their lead in market share in the Soccer sector in Europe which they were the market leaders prior to this time. In 2003 Adidas was four percent behind in being the market leader against their biggest...