Marketing and Adidas

Topics: Marketing, Advertising, Target market Pages: 6 (1647 words) Published: May 14, 2013



1. Introduction
2. Market Objectives of Adidas
3. Branding
4. Positioning Strategy
5. Segmenting Adidas
6. Considering the Family Life Cycle
7. Conclusion

In entering the US market Adidas realized that the conventional methods used Europe will not suffice in this fierce market. Nike and Reebok was the fore runners in the US and gaining market share would be a slow process. Nike cornered the market in sports endorsements in basketball, running, children, cross training and woman’s footwear. Adidas came to the realization that their marketing strategy needs to be revamped as Nike in 2003 gained market share in what was perceived as Adidas’s home ground. Technology has enabled Adidas to reposition their strategy and effectively converse with their target audience. In this study the marketing objectives will be reviewed and how technology aligns with the Adidas strategy. Branding and the positioning will be analyzed; focusing on the steps taken to rebrand and reposition the product in the mind of their target audience. The segmentation criteria used by Adidas will be investigated to determine the appropriateness of these segments. Lastly the buying behavior of these segments is studied to determine who dictates the buying power in the family life cycle.

Market Objectives of Adidas:
Adidas understand their segment and the short attention span that is prevalent with this target audience. Attracting the youth market and retaining their interest requires meticulous innovation and implementation and technology graciously provided them with the perfect opportunity to engage with this segment on their level. Their active inroads into digital media were enabled with the advancement in technology allowing rich media available on cell phones. The objective here is 24/7 exposure to the brand via social media mainly delivered by their handsets. This has had a great impact in reaching their target audience. Branding:

The clear objective of the Adidas is standout from the crowd. Adidas calls this breaking thru the clutter by limiting the traditionally used marketing communications medium, such as paper and television ads and exploring new ways to communicate their message. In doing this they actively looked at innovative ways to deliver advertising, such as the 3 dimensional billboard and live billboard in Japan ahead of the World Cup Soccer tournament. There is a gradual shift from traditional advertising to social media. Their experimentation in this area has up to a point damaged the brand in Korea as users found the mobile marketing intrusive. Learning from this mistake the opt-in policy for internet and mobile advertising was introduced bringing a new challenge to the fore. Creating compelling content which will attract users.

4 Positioning Strategy:
Decentralized marketing strategy lead by the Netherlands based subsidiary responsible for trademarks, sports promotion and global communications and advertising with each region executing the marketing campaigns relevant to their home-based needs by their marketing department based on guidelines by the parent. Initially they secured the positioning the leading soccer footwear worldwide. In 2004 they repositioned to branch out to include all sporting and leisure activities with the emphasis on individual’s ability to go beyond conventional limits of athletic performance. A lateral repositioning avenue was explored with the Urban Cool giving endorsements to the likes of Run DMC and with the Respect M.E. Campaign of Missy Elloitt. Adidas ventured into this avenue to attract the non-sporting segment who like the athletic look but not necessary...
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