Modified - assignment PDF

Title Modified - assignment
Author Ma Aj
Course Fundamentals of Corporate Finance
Institution University of Bahrain
Pages 21
File Size 979.8 KB
File Type PDF
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assignment...


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Introduction

In this report we targeted the marketing case analysis of Adidas, in details we talked about these subject:

1. Adidas features, Characteristic and Function. 2. Segmenting and Targeting Markets 3. Marketing Research 4. Marketing Strategy 5. International Marketing Policy 6. Adidas CRM (customer relationship management) 7. Suppliers for Needed Materials 8. Digital Promotions 9. Marketing mix elements of Adidas 10. Adidas Ethical Consecration

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1.AdidasFeatures, Characteristic and Function. Adidas short brief Adidas AG a German sportswear company founded in 1949, Adidas manufactures clothes, shoes and accessories, adi dassler is the founder he and his elder brother rudlof in their mother house started the company named “dassler brothers “factory. They were specialized in spiked running shoes for the athletic events they transitioned from a previous model of heavy metal spikes to utilizing canvas. Than with years passing by adi and his elder brother rudlof start to having problems and issued together so they decided to separate, adi continue in the dassler brother factory than he re branded it and called it Adidas, while Rudolf create puma also a sportswear company. Adidas begin to spread globally after the world war two and entered a bigger market and became one of the most successful sportswear brand in the history. Now a days Adidas is the second most successful company globally after Nike, Adidas has over than 59,000 employees over the world, in 2019 Adidas produced over 1.1 billion sports lifestyle products with independent manufacturing partners worldwide, Adidas total assets is 150612 € billion.

Adidas products and services Adidas provided football, tennis, golf, cricket, basketball, gymnastics, skateboarding and accessories products also jersey, shorts, shoes, shafts, heads, gloves and customized products. Adidas deliver all around the world and have brunches everywhere.

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Adidas characteristics Adidas slogan “impossible is just a big word thrown around by small men who find it easier to live in the world they’ve been given than to explore the power they have to change it impossible is not a fact it’s an opinion, impossible is potential. impossible is temporary, impossible is nothing” quote by the boxer Mohamed ail and then Adidas took impossible is nothing as their slogan Adidas have created not only a product also a value that their customer admires the most about the company.

Adidas portfolio

2. Segmenting and Targeting Markets All effective organizations have outstanding marketing strategies which they segment strategically. The showcase you offer to is very important to your organization. Companies such as Adidas advertise to competitor of all ages over the world. Adidas markets to experts and novice competitor. The showcase plays a key role in the marketing strategy. Each showcase is unique so the organization has to be careful upon choosing the right one. The reason of advertise market is to enable the marketer to adjust marketing mixes (product, cost, promotion, put) to meet the needs of one or more specific segments. Basically marketers use the market segmentation process to divide big markets into smaller segments according to characteristics of individuals, different groups and areas. Adidas the biggest sportswear producer in Europe and the moment greatest sportswear producer within the world markets by looking at buying attitudes and buying practices of different people. The sellers design a separate market program for each buyer. Company mainly focuses on demographic and psychographic segmentation's. So they develop their brand in 3 diverse styles of division. Demographic segmentation refers to dividing the market into groups based on demographic variables, such as sex and age. This method has long been used in clothing market. Adidas brands products into range of male, female and kids, according to age and life cycle segmentation and gender segmentation. Adidas has . a branded range of male and female clothing, shoes or body-care and eye wear

Psychographic division is utilized to divide the market into groups based on social class, life style or identity characteristics. Company focuses on social class because people within a given social class tend to have similar buying traits. Companies also use salary, gender, ethnic and family life cycle segmentations to recognize their market but company keeps it a small less complicated and more wide ranged so the brand is marketing to many different people all over the world.

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3.Markting Research Adidas is a German clothing and sports equipment company with branches in the middle east and around the world. It specializes in producing unique clothes and shoes, Adidas is suffering from a significant drop in sales due to coronavirus. Currently Adidas is trying to increase its sales in light of this crisis by working through a digital strategy such as offering online shopping and increasing advertisements in various social media applications such as Instagram, Twitter, Facebook and snapchat. Also, they offer some discounts and free shipping service to reduce social interaction between consumers and employees and increase its sales at the same time. Inside the advertising capacity of any association there will be vital goals, or goals, to be accomplished. For instance, expanding the piece of the overall industry by 3% or entering another market abroad. To accomplish these advertising destinations requires an arrangement that subtleties the activities required. These plans are alluded to as promoting methodologies. A key test for Adidas advertising systems is finding imaginative approaches to motivate and draw in its 14-multi year old target crowd. [REF 1] Adidas has become a pioneer in utilizing computerized channels to advance and sell their items. They've become a top brand by bridling different inventive approaches to join computerized innovation into their general advertising methodology. the organization comprehends that internet informing can be custom-made to coordinate the interests of any individual customer. This permits them to bring together their information all through a customer's purchasing experience, Second, Adidas copies down on their purchaser center by marking them a "maker customer." A maker shopper is somebody who needs to partake in the formation of brand content instead of being an inactive beneficiary. From center gatherings to online audits, Adidas guarantees that their clients are heard and their voices sway brand procedure. At long last, Adidas utilizes innovation to meld a client on the web and disconnected encounters. They've improved the present purchasing venture by propelling Adidas Confirmed, an application that lets customers save items to get coming up and leave surveys. They've enhanced it by making Glitch, a football projection that must be bought through a committed application. In each aspect of their 5

computerized system, Adidas plans to put the buyer's needs first while pushing the envelope of what's conceivable. Adidas' utilization of internet-based life is an especially rousing bit of advanced technique. In particular, Adidas made separate Instagram and Twitter records to feature the commitments of their influencers and clients called Adidas Originals. Curiously, these records really have a greater number of devotees than the primary records. Under the pennant "We Are Originals," Adidas advances client produced content. It additionally exhibits one of a kind organization with Instagram influencers. By making substance and informing for each influencer they join forces with, Adidas can cultivate a progressively veritable connection between the brand, the influencers, and their adherents. I have collected some data by survey research, 69 people have answered the questionnaire, 24.6% are male and 75.4% are female. Most of them are between 18 to 24 years old and most of them are students. 82.6% of the people who answered said they like to shop from Adidas stores. 53.6% visit Adidas rarely,20.3%visit Adidas monthly, and 23.3% Never visited Adidas stores, most of Adidas visitors buy sport shoes, 17.4% buy sportswear, and 2.9% buy sport accessories and some of them like to buy from Nike or Puma or another store. Also most of Adidas visitors spend 21-40 BD in Adidas store, 36.2% spend 0-20 BD, 8.7% spend 41-50 BD, and only 2.9% spend more than 50 BD in Adidas store. Most of them think that Adidas have good quality and they think that Adidas always brings new ideas and their prices are equal to other brands.

95.7% students

4.3% workers

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fro ho what do i dedas asi ces ? ?l ar ?y? ? many time s do y ou v i s it ad i das sto r e s wh ithow froyou t hink adidas al way s bri ng new di yes

no

maybe

weekly

monthly

rarely

never

how much you spend whe n you vis it adi das ? 0-20 41-50

21-40 50 and above

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4.Markting Strategy. WE’RE ALL ‘CREATING THE NEW’ – BECAUSE WE BELIEVE THAT, THROUGH SPORT, WE HAVE THE POWER TO CHANGE LIVES 

ON A CLEAR MISSION What does “we want to be the best sports in the world that mean”? Well, to us ‘best’ means that we design, build and sell the best sports products in the world, with the best service and experience, and that we do so in a sustainable way. But ‘best’ is also what our consumers, athletes, teams, partners, media and shareholders say about. 8



OUR STRATEGIC CHOICES Our marketable strategy is worked around three key decision that will empower us to focus much more on our consumer I.

Speed – How we deliver: Putting our customers at the core of all that we do and serving them in the most ideal manner means that we need to ensure that they always find fresh and desirable products where and when they won’t them. We will become the first primary genuine fast sports company.

II.

Cities – Where we deliver: Urbanization keeps on being a worldwide megatrend. Most of the global population lives in cities. Cities are shaping global trends and consumer’s perception, perspectives and buying decisions. We recognized 6 main cities in which we won’t over-proportionally grow shares of minds in or shares of market and share of trend: LONDON, LA (LOS ANGLES), NYC (NEW YOURK CITY), PARIS, SHANGHAI OR TOKYO.

III.

Open Source – How we create: This is all about collaboration and innovation. About learning and sharing. We are opening the entryways of our brands welcoming athletes, consumers and partners to co-create the future of sport and sports culture with us.

The strength of the marketing strategy used by Adidas stems from its perfectly balanced mix of promotion, advertisements, and the use of digital technology.

5.International Marketing Policy Adidas competitive policy focuses on broad differentiation approach. At the corporate level, the company focuses on innovation, production of new and unique products and effective processes to assist in coping with competition. As part of this policy, the company has developed multiple brands and also taken over Reebok brands thus giving it competitive advantage especially in its main market in Western Europe. This multi-brand

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approach helps not only in development of diverse brand portfolio but also allows the company to cater for all segments of the market. Adidas also strives to keep a unique identity by focusing on its core competencies such as best marketing and distribution channels in different countries, critical evaluation of consumer buying behaviors and securing prime shelf space. Adidas has also embraced e-commerce so as to become more efficient and appeal more to their customers as well as making the products more accessible to their customers around the world. Adidas also has a close control of its supply chain and its overseas producers so as to facilitate customization of products which can appeal to a broad range of customers. Consequently, Adidas marketing policy focuses on demonstrating its value as the leader in creation of high performance product lines based on the specific needs of the athletes and consumers. In addition, Adidas STP policy is based on demographic, psychographic and behavioral factors. For instance, Adidas has a strong brand portfolio made up of Adidas, Reebok, Rockport and Taylor Made intended for different market segments. In addition, Adidas uses differentiated targeting strategy to target young adults and children who have passion for sports and fitness. Though Adidas target customers are in the age group between 13 and 40 years, most of the customers are between 15 and 30 years of age and hail from the middle class and the luxury class of customers. Moreover, Adidas positioning is based on user and benefits strategy. The goal of this strategy is to create a distinctive image in the mind of the prospective consumer by putting emphasis on the value of quality products from a trusted brand. In this regard, Adidas divides is brand portfolio into three categories. First, Adidas is intended for performance in competitive sports. Second, Reebok and Reebok classics are for active and casual sports while Adidas originals, Adidas Fun and Rockport are for sports fashion. 6.ADIDAS CRM (CUSTOMER RELATIONSHIP MANAGEMENT) The marketing philosophy improved in the last years the evolution from mass marketing to target oriented marketing arriving ultimately at individualizes marketing since then the individual’s customers has increasingly become the focal point of research.

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Adidas decided to move into a new form of value creation (mass customization), Mass customization is to produces goods and services meeting individual’s customer needs and it called (mi Adidas) the program made customized shoes available to consumers in specialized retail stores and events by having unique footwear in fits and designs. Adidas Customer Care Centre offered Adidas all the advantages of outsourcing – instant access to the latest telephony and e-communication technology, The benefit of long term experience in front-line consumer relationship management and the removal of the need for expensive internal infrastructure. The Adidas group customer care center today provides an invaluable channel of communication with consumers. Topics as diverse as sponsorship, Product enquiries, Complaints and marketing are all handled by the Centre, with efficient processes and decisive outcomes, the majority of staff time is now spent on pro-active promotion and sales support In addition to frontline consumer enquiry management, the dedicated unite also provides detailed management reporting on areas including: * To product and retailer enquiries * The level of response to media and PR campaigns. * “Hot Topics” raised by consumers. * Insight into consumer demographics and purchase patterns.

Adidas have customer care center that communicate with retailers who can escalate complicated consumer’s issues then the center communicates directly with the Adidas department to solve the issue. Also Adidas is working with celebrities such as Pharrell Williams, Kanye west, Victoria Beckham and Stella McCartney in development of new design. 7. Suppliers for Needed Materials Adidas is a large company therefore it has a large number of suppliers all around the world, Adidas has suppliers in 53 countries manufacturing its product which include shoes apparel and hardware globally, China has the highest number of suppliers with 128, Followed by Vietnam 82, South Korea 70 and Indonesia 48. 11

Adidas used 130 independent manufacturing partner which include 289 manufacturing facilities located as the table below

Region

Asia

Europe

Americas

Africa

Suppliers

79%

9%

11%

1%

Strategic Suppliers total

Footwear

Apparel

Hardware

109

34

60

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As of 2017/2018, Close to 50% of its existing suppliers have worked with Adidas for more than ten years and around 15% for more than 20 years. Adidas has set specific criteria for its suppliers and its Global Operations function regularly measures their performance against these criteria. However, apart from these suppliers, Adidas also has a few assembly sites in U.S., Canada and Germany. Both at its suppliers’ facilities and its own factories, the brand has enforced strict controls and inspection procedures. This is done in order to ensure that the factories meet the standards the customers expect. Quality and material claim procedures are used to constantly measure the effectiveness of product quality standards. Adidas also measures the social and environmental performance of its suppliers using ‘C’ and ‘E’ KPI tracking system. The brand promotes social and environmental standards and ensures adherence to them. 8. Digital Promotions. Online Social media is a characteristic expansion of Adidas’s more extensive way to deal with promoting and marketing, especially when it comes to creating publicity around its products and that is an important tool for Adidas in order to help them to build or create a direct and strong relationship with customers.

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During the time the social media still evolving in today modern world the company using the social media considering Facebook, Instagram, WhatsApp and twitter these platform enables Adidas to increase their profit and gain more insights to create or invention new products that satisfy the consumer. Adidas uses many ideas and titles also event campaigns to attract and target consumer such as. Shoe Culture – Adidas Gets It : consumer who’s looking for a past generation of fashion are influencing Adidas organization to bring back products from 50s and 60s styles like superstar shoe were wildly popular in past and make a huge successfully comeback

The coolest shoes in the world is your own shoes: Adidas established an extraordinary app that allows the consumer to create their own shoes with their own ideas so this app empower Adidas creative team by learning and understand what consumer wants. Adidas and FIFA sport games: Adidas makes a contract with Athletes and football players to inspire it’s a way to attract their fans like some of the promotion when customer buy they got a signed soccer ball by an athlete.

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She Breaks Barriers: Adidas requested that athletes to use the hashtag #Creators Unite share about the difficulties and barriers that they face to provide access, remove stereotypes, and address inequality for female athletes at all levels and ages.

MYNEOSHOOT CAMPAIGN : ADIDAS released this campaign on Instagram and it’s a new division of trendy, youth targeted products In order to rise the social media platforms and increasing the purchasing power of consumer and this socially-driven initiative looked to leverage the popularity and marketing potential of Instagram by inviting both Instagram influencers and ordinary users to create Adidas-inspired Instagram posts , this branded hashtag #MyNeoShoot accrued more than 71,000 mentions and shares in social media platforms so the campaign is example of how an created brand can attract or engaging young consumer by leveraging Instagram’s popularity and imagefocused content, By collaborating with celebrities, Instagram influencers, and ordinary users to promote the initiative and Adidas was able to reach millions of interested consumers .

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9.marketing mix elements of adidas

PRODUCT: Adidas group has 4 main subsidiaries the first one is under their own name ADIDAS witch sales clothes and footwear, the 2nd section REEBOK and The 3rd is ROKPORT that sales outdoor footwear, cloth and accessories the 4th is different than the others subsidiaries, Taylor made that special in golfing clothes, equipment. out of al...


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