Marketing and Adidas free essay sample

Adidas is a primary footwear companies along with its competitors who have adopted an online e-commerce strategy to increase their sales and product awareness. Most importantly, Adidas have invested heavily into online brand building and image development and it was primarily to provide information to its consumers. In order to maximize its market share, Adidas have placed a great importance in developing their branding and marketing strategies on the net through web appearance and user friendly functionalities such as ease of purchase, high effective. Adidass goal is to lead the sporting goods industry with brands built upon a passion for sports and a sporting lifestyle. They want to become the best sports brand in the world. They will be a leader in developing the sports industry, and set high standards for other similar companies. Moreover, Adidas aims to help athletes perform at their highest level, and make innovative products modeled on the athletes needs. We will write a custom essay sample on Marketing and Adidas or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page In addition, anticipate and respond to their needs, they create a culture of innovation, challenge themselves and change their product quality continuously. By this culture, they push the boundaries of products, services and processes to strengthen their competitiveness. They increase visibility in the world. Then, Adidas product will become their first choice. They provide diversification products attract dislike sports’ consumer will buy Adidas products, on the other hand, increase different production direction, so they can expand Adidas market. SWOT Analysis Strength New product From Adidas marketing research, the company has decided to revamp its apparel division to be more fashion savvy. As a result of product and pricing research, Adidas has decided to continue to focus on the young people market while increasing its market share in the middle and low price ranges in an attempt to broaden Adidas product spectrum. Grand marketing For our grand strategy, Adidas utilizes innovation to produce top quality athletic footwear and apparel. As a result of devoting vast resources to the research and development of its products, Adidas has captured the largest market share in the athletic footwear and apparel industry and continues to be the leader of quality products. Marketing Research Adidas primarily conducts marketing research on a continual basis to assist in maintaining our company’s position as the leader in the athletic footwear and apparel industry. Because of such research, we have decided to revamp our apparel division, we can still greatly improve. Adidas will be organizing the internal business by gender as opposed to sport category and conducting increasing amounts of research addressing the buying habits of men, who tend to be item-driven, and women, who tend to be collection-driven, with specifically targeted product lines. Weakness Poor Marketing While other athletic shoe companies bombard the airwaves with commercials pushing their product lines, Adidas remains out of sight and out of mind. While Adidas’s competitors are known by familiar slogans like Nikes Just Do It, Reebok’s, Are You Feeling It, does not equate to their brand name in the eyes of most consumers. Pricing Adidass products are considered to be of higher quality and as a result have higher prices relative to our competitors. While the prices are realistic given the nature of the products we offer to our consumers, at times our consumers may not agree. Opportunities Economic Growth The athletic footwear and apparel industries will benefit from the currently strong economic backdrop in the United States. Spending is high and is expected to result in sales growth industry-wide. The Trend Athletic shoes and apparel are need of people life. This is due to both the increasing numbers of people exercising and the trend towards casual apparel. Competitive Competition is fierce at all levels in within the industry, especially among the leaders. This creates a sense of security for the companies that have been able to create a niche. Cost cutting due to restructuring of operations will give many companies the chance to price products more competitively. New Market Increasing financial recovery in overseas markets proves to be an area of expansion for the athletic footwear and apparel industry. Internet E-tailing, or customer-designed internet merchandise, is threatening the traditional distribution channels, thus eliminating the middle-man distributors and allowing for increasing profitability. Threats Limited Technology The industry has reached a level of maturity. While style and technology in athletic apparel and footwear has reached a maximum point. Unfixed Economic Inflation is looming over the world economy, which may spark a cutback in consumer spending. Market Saturation In terms of market saturation, many of the key manufacturers in this industry have been around for many years. Consumers may be searching the market for new and different footwear and apparel products. Marketing Objective First Year Objectives: During this year, we are aiming for global market share to 15% Second Year Objectives: During this year, we are aiming for global market share to 20% Marketing Strategy Position Adidas position the market to release a series of new products (including shoes, clothes) to brand younger, the product are more color to attract the young people the price are between $250-$400 to become the icon of the product to attract more young people to buy. Product Strategy Repackaging Adidas brand, Adidas is the movement of goods is no longer just for sports (Such as: protective, durable, exercise performance) and designed to be a new trend of Adidas, to become a clothing both indicators introduce a new series: Department of formal / youth clothing. Trend into the new market introduction of some products are not only be used when in motion, and usually in shopping / to ball can wear products. Pricing Strategy In order to attract customers more successful, we decided to set an average price of about $250 to $ 400. And began to expand our product line and improve product quality, the source used to attract customers, such as reaching a certain level and have a certain reputation, we have decided the price increase $550 to $1500, to fashion, trends, etc. to mark the high enjoyment of our the brand. Distribution Strategy Our channel Strategy is to use Intensive distribution, marketing Adidass product through well-known brand and high quality to attract many consumer. During the first year, we will open more branches in other area with other high well-known local brands branches. In area of our choice, we will choose open to the Square of the main district, like Sogo in Causeway Bay, Langham Place in Mong Kok. Finally, we plan to combine with other brand, so that increase the distribution Intensive. Marketing Research Using research, we are identifying the specific features and benefits that our target market segments value. Feedback from market tests, surveys, and focus groups will help us develop the Adidas. We are also measuring and analyzing customers’ attitudes toward competing brands and products. Brand awareness research will help us determine the effectiveness and efficiency of our messages and media. Finally, we will use customer satisfaction studies to gauge market reaction. MARKETING MIX Marketers use the tools to meet the needs of the target customers these tools are called marketing mix. These are 4p’s of marketing: product, price, place and promotion. Collectively they are called marketing mix. In the context of 4p’s product is to meet the needs of consumers in terms of services and goods. Place, promotion, accessibility are the other factors which gives importance there should be a good place for stocks which will be easier to the consumer to get through it. Promotion of product also plays and important role in the marketing. Promotion of the product increases the interest of customer and also creates a value and trust towards it. It also gives the importance and relevance of the products. Promotion can also be through the communication. Price also matters it should be in accordance with your target customers. Also in such a manner that it will give more revenues in short run. Each mix has its own importance, remember if your marketing mix doesn’t meet the needs of the customers then you will never meet your objectives. For example if you have improve your product, then the cost in the production must increases as a result it increases the cost of the product. There must be a good communication to tell the customers that you have improved the quality for them to make more desirable and stable thus increases the price. Product The product is the physical product or service offered to the consumer. In the case of physical products, it also refers to any services or conveniences that are part of the offering. Product decisions include aspects such as function, appearance, packaging, service, warranty, etc. They know that marketing is the fundamental to provide the actual benefit to the customers. Marketing is not only to provide the product but it is to the change or to communicate to the customers and convince about it. Adidas as a product people need comfort, durability and style. Level of products 1) Core customer value. Adidas provide basic products to satisfy the customer needs. Such as: shoes, clothes 2) Actual product. Adidas use advertising to promotion their products, they use specially sports star to attract fans and design different type shoes to satisfy different customer’s needs. 3) Augmented product. Adidas provide after sales and delivery service. Pricing It is the only mix which generates the revenues to the company. So the company should follow the strategy of price making by considering various factors: Brand value The price should be decided in such a manner so that it matches with psychology of the customers, If you made a higher price than it will decrease the demand for the product and hence fewer buyers. Fewer buyers ultimately lesser will be the sales and hence profit. The price should not be too low because If the price is too low than then it will decrease the value of the product for the customers. They might be question on the quality of the product. Suitable for the target customers As higher as well as the lower price will affect the value hence the price should be right. It should be matched with customers which you are targeting. If you are targeting to high class then your price should be high and if you are targeting the middle as well as the lower class then the price should be matched accordingly. Generating the revenues quickly Price also affects the revenues and the profits of the company. If we talking in terms of profit maximization then marginal revenue should be equal to marginal cost. Also the difference between the total revenue and the total cost should be Maximum, Place A crucial decision in any marketing mix is to correctly identify the distribution channels. The question â€Å"how to reach the customer must always be in your mind. The place is where you can expect to find your customer and consequently, where the sale is realized. Knowing this place, you have to look for a distribution channel in order to reach your customer. Distribution areas- Locations, Logistics, Channels, channel motivation, market coverage, service levels, internet usage, and mobile technology usage Instead of place it would be better to use the word distribution but the MBA lingo uses place to memorize the 4 Ps of the marketing mix! The distribution strategies applied by Adidas: 1. CONCENTRATING RESOURCES ON MOST PROFITABLE CUSTOMER SEGMENTS Concentrating on distribution channels reaching most profitable segments Offering total customer service at higher price 2. EXPLORING AND EXPANDING NEW GEOGRAPHICAL MARKETS. National market expansion Regional market expansion Export market expansion. Promotion Promotion includes all of the tools available to the marketer for marketing Communication. Promotion uses methods of communication with two objectives: (1) Informing the existing and potential consumers about a product. (2) To persuade consumers to buy the product. Tools of promotion: Advertising Public relations Messages Direct marketing Sales Media Budget Newspaper The promotion strategies applied by Adidas: REDUCING NUMBER OF LOST CUSTOMERS improving communication with present customers. Promotion aiming at existing customer Understand reasons for losing customers ATTRACTING OTHER MARKET SEGMENTS Seeking other distribution channels Advertising in other media Recommendation Action Awareness They need to increase awareness, first to try to carry out from the advertising and promotional activities to make. Internet Due to technological advances, the customers have to start from the Internet, and gain the products type, new and different products information, to join the online shopping features, thereby increasing visibility and sales rate. Athletes Their main target customers are athletes, they will investigate the athletes needs, and develop to satisfy their sporting goods, and allow them to test the sporting goods, thereby greatly improving product reliability, they can find the well-known players wear Adidas sports supplies to attract more consumers to buy our products. Competitiveness Through the product are improving the quality and service continuously, as well as sufficient production volume, they will choose Adidas. They offer a variety of products to attract consumers, such as clothes, shoes etc. , moreover, they can increasing the production of different directions, so that they can expand the market. Clothes sport clothes and appearance of the past is not enough to attract, you can taste a series of clothes for young people, They can find out potential young athletes to do the spokesman, re-packaging, which can attract athletes, but also to attract young people to buy a new batch, increase market occupancy rate and enhance visibility. Nutrition bars nutritional drink The food transferred energy to the into their body Nutritional supplements to food or drink into a high frequency and high-energy food! According to the principle of â€Å"Orgone† Energy refinements made Beamer, inside a variety of tailor-made infusion of rare gases and the permutations and combinations of different metals, the energy absorbed in the universe are excited vibration can be re-issued a high element of different substances frequency energy, so that these elements such as: food more easily digested and absorbed, to drain away and better taste. Moreover, the energy bar high-frequency energy can be released, so that athletes need to supplement the body within a short time energy and performance on the field . Much to attract athletes to buy food. Shoes sports shoes market has been already maturity period, it is difficult to increase market share in the further , so they can try to Adidas mix other companies to develop another product to use for different place , so as to stimulate and increase the market. Different Ball Club Sponsored by different types of balls club will make to the different types of sports fans know Adidas, it will make the customer to want to buy. In addition to increased awareness, also can attract some of internal club member and external club member use Adidas products. Market With advances in technology, people will increase the demand for sporting goods, therefore, Adidas future trends, but also constantly to develop new technology to continue to master the sporting goods market.

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