Professional Documents
Culture Documents
Target Market
Through its brand in the hand campaign, Adidas is looking expand its reach to target 12-24 year olds Hopefully reaching customers outside the sporting sphere Adidas also targets soccer segment in Europe, basketball and Hip Hop (or Urban Cool) segment in North America
High Adidas faces stiff competition from numerous smaller competitors (NewBalance, Asics, Columbia), as well as from very large players (Nike, Reebok)
Medium Although is it relatively easy to produce sportswear and accessories, it is difficult to effectively compete in such a market Promotional costs are very high for this market
Power of Suppliers
Power of Suppliers
Low There are very many suppliers and therefore lots of choice and little supplier power
Power of Buyers
Power of Buyers
High Since there is such competition, all of which are competing for brand recognition, buyers have a lot of choice and power
Threat of Substitutes
Threat of Substitutes
Very Low There are no substitutes for clothing and shoes There are different types of shoes/clothing, however, if somebody requires soccer cleats, they cannot substitute these with another type of shoe
What are some political factors that may affect the industry?
Dot Com stock market decline in 2000 may make people doubt the importance of mobile marketing Price of newer technology phone features are more expensive therefore affordability issues arise Increased online advertising popularity resulted
Increased use of internet Frequent use of cellular phones More than half of the media consumption will be digital by 2007 (estimate) Consumers became hostile towards perceived intrusion on their lives by advertising
speeds similar to wireless broadband 2.5G usage is estimated to go from 8% - 68% from 2003-2006 (Europe) 3G usage is estimated to go from 0% - 28% from 2003-2006 (Europe)
Strongly recognized brand image Growing customer base within the USA Global Revenues more than $6 billion Largest supplier of sportswear in Europe Advertisements available in a variety of languages Adidas spends more of its marketing budget on new media than its competitors, 25%
Adidas was not the leader in the European soccer market in 2003
Nike
Adidas spends less on advertising each year compared to its greatest competitor (Nike)
In 2003 70% of Europeans had mobile phones In 2003, 23% of Europeans had mobile phones with newer technology, allowing for more innovative advertising strategies A lag in the US mobile phone market gives companies an opportunity to test their strategies first on the European market Youth spending on mobile media is rapidly increasing
Limited bandwidth within the US Regulatory delays and diverging delayed the introduction of 3G into the US Increased competition in domestic market Consumers recognize minimal amounts of traditional advertising
Ie.
Competitive Analysis
Nike is the global leader in athletic footwear In the US Market:
Adidas
16% of athletic footwear market share (16% Reebok, 40% Nike) Companies compete by signing proathletes such as Michael Jordan (Nike), Kobe Bryant (Adidas), Allen Iverson (Reebok) In 2003, Nike had 60% of basketball segment, Adidas had 20%, and Reebok
Marketing Mix
Price
Varies
depending on product Run DMC shoes cost $70 Missy Elliott Remix Boots cost $120 Consumers are price insensitive
Product
Sportswear
and accessories
Place
No
Marketing Mix
Promotion
Significant
This
includes traditional promotion techniques such as print, billboards, TV, and cinema Internet marketing Also includes innovative promotion techniques such as live billboards and mobile marketing
Mobile
marketing seen as the future of Adidas marketing in order to break through the clutter of advertising
Pros.?
Is not as intrusive as traditional media since consumers have to give consent Data can be collected that can help study what consumers want Attracts consumers outside the sporting sphere
Broadens
Cons.?
Potential for intrusive, unsolicited, unpopular marketing (spam SMSs) Difficult (and possibly expensive) to develop compelling content that users want Does not reach everybody Content isnt always available due to possible service interruptions Possibility of increased use of mobile marketing and consequently getting lost in the clutter again Fragmented and complex due to many different handsets and carriers, different types of functionality, and different preloaded apps
Conclusion