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Marketing Analysis: Adidas

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by

Judy Seo

on 7 October 2014

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Transcript of Marketing Analysis: Adidas

Marketing Analysis
Adidas
Founder:
Adolf Dassler
Founded:
August 18th 1949 -
Bavaria, Germany
Type of business:
Sportswear
Brother company:
Reebok
Basic History
Adi embarked on his mission to provide athletes with the best possible equipments
, he registered a shoe that included the registration of the adidas
In ,Adidas acquired Reebok and the company was re-named to
In
1949

3-stripes
that soon became famous
2006
Adidas AG
The LOGOS
3-stripes
Adi Dassler thought about a logo design that could give its brand a
unique
look so that it retains longer in the memory of people
1967
Trefoil
As the company spread its business in apparel and leisure industry, Adi realised that he needed a logo that could demonstrate industrial diversity of his company.
culture
age
income

1971
Triangle
Creative director Peter Moore, designed the shape which represents a
mountain
, indicating the challenge to be faced and the goals to be achieved
1997
Locations
Target Market
GENDER
Male
Female
AGE
10 - 30

years old
Adidas target people who are
male
or
female
between the age of
10 t0 30
and people who are active. Especially those who
play sports
like swimming, soccer, basketball, running, snowboarding and so on.
Income
High Income
The majority of users who wear brand Adidas are
men
. This is because most of the Adidas products withdrawn is for men and few options for women.
People aged-ranged
12 to 34
years old are
very active
in sports such as soccer, tennis and other sports.
Normally customers who are involved in sports at this age is ready to afford a
branded sport shoes
.
Average of
$68,219 ~ higher
.
However, students and others can still afford a pair or two of Adidas shoes
Ethnicity
Based on the environment and where they live in.
Eg)
In London, football is very popular with the competitions held as EPL
They aim for
environments
where it is
very active
with sports and the
society
around them that is also
involved
with sports.
-
Females are still an important target market to Adidas where for females, it's more focused on variety of
runners
, and
gym clothes
The marketing mix consists
of 4 P's

1.
P-Product

2.
p-price

3.
p-promotion

4.
p-place
PRODUCT
DESIGN
Materials
recycle
various colours
high-quality
recycled polyester
sustainable cotton
size
SHOES
For shoes, their logo is placed in the middle-
3 stripes
using colours that stands out and drags the attention
Packaging
soy-based & water-based inks through 100% recycled cardboards.
shoe boxes
overall recycled content is 95% based on weight
made from 100% recycled fibre
38% - 60% weight reduced for shoe s since 2006
No glue used
Accessories
Shoe laces
2nd pair of shoe laces (sometimes)
Insoles
Adidas is a
large
company having
1000 stores
around the world with over
50,278 employers
.
PRICE
Adidas Energy Boost shoes

$ 180.00
Adidas products are around
$35.00~$400.00
Most products are worth
$180
, which is fairly expensive
example
VALUE
The value of Adidas is really high as it is the second-top sports brand after Nike
With having lots of sports stars and celebrities advertising, the quality is trustworthy
$35
$400
Pricing Strategy
Price skimming
When Adidas products are first released, they start off with the maximum price they can ask.
However, as the profit falls they start discounts and special offers to attract customers.
Competitive Pricing
As Adidas is competing against Nike, their prices are pretty similar to each other.
By Judy Seo
Similar price
NiKE
$ 180.00
ADIDAS
$ 180.00
VS
Similar colour with similar features
Adidas's main 2 competitors
- profit table
NIKE

VS
ADIDAS
Higher price
NIKE
VS
ADIDAS
$400.00
$220.00
Cheaper price
NIKE
VS
ADIDAS
$240.00
$90.00
Casual shoes
Football shoes
Price reductions
No BULK PRICING
No TRADE - INS
No CUSTOMER LOYALTY
low CASH DISCOUNTS
When one starts discounts, another follows to meet the same price line
WARRANTIES
Adidas makes
NO WARRANTIES
However, they do have certain
store policies
Where they
allow refunds
if the product has
not been worn
or
looks new
.
MACRO
ENVIRONMENT

SOCIAL & CULTURAL

TECHNOLOGICAL
SOCIAL & CULTURAL
Adidas is an ethical company where they:
Aim to reduce recycle waste
Save water
Save energy
TECHNOLOGICAL
Invented Micoach
Measures
4
key
performance metrics:
Distance, Speed, Speed Zones, Number of Sprints
In-Direct
distribution channel

Manufacturer
Wholesaler
Retailer
Customers
However this distribution channel is within the company Adidas as they do not have a separate manufacturing company.


This
In-direct distribution
is the best for Adidas as they don't have any Adidas factories in Australia.
When the demand is
high
due to the world cup and sporting events, Adidas
outsources
their workloads to other factories in Asia such as
China and Indonesia
where they are able to get products quickly with very low cost.
Adidas needs a head office to determine which market they are going to release their product
Someone has to oversee what products are coming into Australia as well they have specific target market for different places
SELECTIVE
DISTRIBUTIONㄴ
Adidas has their own retail stores and outlet stores around the world. However, they also sell their products through :

Rebel Sports
Athletes foot
Sportsmart
Adidas is aiming for customers who can afford
high-priced
products and wants
high-quality
products
Through this, customers will be able to
compare
prices and quality with other competitors such as
Nike, Aasics and Puma
easily.
Different countries

In general, Adidas sells their new range of products all around the world such as
Adizero
and
energy BOOST
Korea
Men's shoes
171
products
Woman's shoes
195
products
USA
Men's shoes
346
products
Woman's shoes
167
products
Adidas targets mainly to males in America

Wheres they target more on woman's in Korea
Other than the number of products, Adidas sells similar products all around on their online store
- Adidas Outlet stores
- Adidas retail stores
PROMOTION
Store set up
Adidas's new
"
mi
"
program- Adidas new footwear apparel customization offering
Barbershop style chairs have been integrated with screens and keyboards to allow for each individual to be comfortable while working on their own personal custom
Swatch books for all colors, fabrics, and laces are also on site to ensure accuracy in choices
Mirrors
at the center of the store for customers to check out
New line
on display to catch customers attention
The
NEW
Adidas Originals Store design concept takes a less raw approach to the previous ones and features a much
warmer atmosphere
and
furnishings
Effective use of
Manikins
for hats and clothes
->
allowing customers to have a look at the fit
ManIKINS
Adidas displays their new product through
window display
where everyone will be able to see when they walk past.
Effective us of manikins
Window display
Adidas has
eye-catching
window displays to catch customers attention.
The use of various colors
The use of interesting designs
shoes
Adidas shoes are displayed on walls.

only one pair of the shoes are displayed

The background usually has bright light to make the products stand out.
Customer's comfort
Chairs and mini tables for customers to sit down and try shoes on.
mini seats around the whole store for customers to sit and take a careful look at the products. Adidas is wanting the customers to stay in the store as long as they can
Advertising
TV
FREEBEES?
Adidas does not give out any freebees to customers. However, they do allow customers to try their products on the spot, providing them with changing rooms
Adidas has a large amount of TV commercial advertisements in the world wide TV network like
BBC, CNN
etc.



POSTERS
Normal ads
FACEBOOK
Adidas runs their own Facebook page where they upload photos of new products and announce special events or offers for their customers
They have their background photo as their models (celebrities)
Katy Perry
Korean girl group
2NE1
Apps
Adidas has their own separate apps where their members (customers) are able to check products through their phone anytime, anywhere.
They constantly upload photos and news on these apps to make sure that people are up to date
Adidas concentrates on their posters trying to make them look outstanding and unique to catch peoples attention
Main 4
Adidas Ads are nearly around all channels around the world.
Adidas ads are usually
30~50 seconds
long
They usually link their products to sporting events such as
FIFA world cup

and the

Olympics.
Adidas Argentina Away jersey
Adidas Final official match ball
EXTENDED ADS
These days, Adidas has moved from normal ads to extended ads that are usually around

1min 30seconds.








During the breaks when the world cup is on, Adidas puts on their
eye-catching ads
, aiming for all the customers that are watching the game.



ENDORSEMENTS
Celebrities
Sport star
David Beckham
In the summer of
2003
,one of the biggest names in sports signed the biggest endorsement deals in history for an athlete.

David Beckham signed a massive
$160 million

lifetime contract
with Adidas.
Justin Bieber
Justin Bieber was announced as the new face of Adidas'
NEO label
, which concentrates more on off-the-field fashion than on it.
Adidas and Bieber have created an
internet scavenger hunt
to find the
gold sneakers
that he's been wearing on his believe tour, which is a lot like finding Willy Wonka's golden ticket
Katy Perry
Pop icon
Katy Perry
is the model for Womans clothing and sportswear.
Top 3
Adidas targets the whole world
Adidas is the second-top sports brand where they target not only one specific area but the whole world.
Competitions
Adidas has heaps of competitions in order to stay engaged with their potential customers.

For example, Adidas has special competitions going on Facebook such as designs with the most "Likes" will win a $100 voucher. Top 10 designs wanted.
Exclusive prizes for winners handed out
Partners
SAMSUNG
There is a joint venture between
SAMSUNG
and
ADIDAS
Samsung MiCoach is a personal trainer mobile phone where you are able to get a heart rate monitor. Adidas calls this a "foot pod". Simply attatching this to your shoe laces measures the distance you've traveled and how fast you're going.
DOES NOT
Adidas does not run direct mailing as they believe that it isn't the best way to keep in touch with their customers. Instead they have loads of TV advertisements and uses Social Media as well. Such as, Facebook, Twitter, Instagram.
Direct mailing
Free Gifts

Adidas does not give out any freebees at all but they allow customers to try on their products from stores.
Furthermore
Adidas does not use any psychology prices such as
$29.99
when it is actually
$30.
Their prices are all simple -> $180, $240 etc.
3 main products
Balls
Adidas has different types of balls for all sports. such as Soccer ball, base ball, cricket ball and so on.
Clothings
Code of ethics

Adidas suppliers are required to display its workplace standards on the factory wall. However, in several factories, workers say the code is not displayed or has been taken down
Working conditions
Adidas says it's committed to-"ensuring fair labour practices, fair wages and safe working conditions throughout our global supply chain"
However, factories in Indonesia get people to hide in bathrooms, so there are fewer on the production line and it looks more efficient. If Adidas wants to ask questions, the workers(factory runner) are prepared beforehand with questions and answers and they (employees) can never tell the truth,else they'll get fired. Adidas tries their best to be ethical and socially responsible but it's the suppliers and the factory owners who are unethical.
Adidas stands for human Rights
Adidas does not tolerate any discrimination or personal harassment, be it sexual or in any other form. Every employee must respect the personal dignity, privacy and legal rights of every individual.

This Code of Conduct shall apply to internal cooperation as well as to conduct towards external business partners
T-shirts, Hoodies, jumpers
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