Current Marketing Trends of Adidas Essay

Abstract Adidas is among the renowned producer, dealer and the retailer of highest quality sports products. Adidas is a brand which is not only famous around the world because of its fashionable and stylish sports products but also for several soccer teams, players and tournaments. In the past, the company uses only traditional ways of advertising and was successful. Nowadays, the changing environment of advance technologies forces the organization to improve their marketing strategies. The use of mobile devices and digital media marketing trends are the better opportunity for the Adidas to enlarge their market share by capturing their target market easily and to produce more effective marketing strategies. Internet is also a great option for Adidas to promote its products worldwide. This is not only modern way of advertising but also cost effective. Introduction and Marketing Trends Adidas is among the renowned producer, dealer and the retailer of highest quality sports products. Adidas is a brand which is not only famous around the world because of its fashionable and stylish sports products but also for several soccer teams, players and tournaments. In the past, the company uses only traditional ways of advertising and was successful. Nowadays, the changing environment of advance technologies forces the organization to improve their marketing strategies. Mobile technologies are becoming very common among the people around the world. Innovative technologies and the Digital media are presenting improved means for Adidas to get easy access to their target market. In order to compete in technological and more competitive environment in which Adidas has to face strict competition from its rivals like Nike, the company must move from traditional sources to mobile and digital media marketing in order to meet the demand of customers and to cope up with future consumption trends. The marketing trends are changing day by day. The use of mobile devices and digital media marketing trends are the better opportunity for the Adidas to enlarge their market share by capturing their target market easily and to produce more effective marketing strategies. SWOT Analysis Strengths Global incidence in more than 200 countries Extensive product line Focused on technological development and performance improvement Sponsorship to numerous worldwide supports events like streetball, soccer, football and tennis etc Strong brand image and reputation in products related to sports performance Large market share in US and European sports markets Weaknesses Lack of promotion and advertising schemes as compared to its major competitors like Nike Lack of proper customer service in some areas Limited budget for promotional and advertisement schemes Unable to responds quickly to changing fashion environment Opportunities Able to extend its international market through ecommerce and retail outlets Market share can be improved through efficient advertisement schemes Usage of advance technology can help Adidas to reach consumers effectively and more quickly Opportunity to advertise and enter new products in Europe before bringing in US market Threats Numbers of competitors are increasing continuously Competitors are trying to dominate market share of Adidas High risk is associated if company shifts from traditional marketing strategies to the digital marketing campaigns Worldwide financial crisis Branding, Brand Identity, USP, Target Market and Customer Expectations Brands are created to convey a compound message rapidly to its intended customers. Brands have the ability to convey the message emotionally and have the capability to get customer’s attention. According to the American Marketing Association â€Å"Brand is a term, symbol, contrive and the special characteristics of a product which differentiate the products and services of one supplier from the products and services of another supplier†. According to the Kotler (2003) â€Å"Brand is a sign, name, symbol, term, design or the mixture of all these and is aimed to recognize the products and services of one supplier or the group of suppliers with the products and services of another supplier of the group of suppliers†. Adidas is maintaining its brand on three grounds which are target market, sports products and its retail stores. The company always struggle hard to maintain perfection in its products, distinguished quality and the achievement of large market share. In order to provide memorable experience of sports products Adidas hired trained employers to deliver the unforgettable customer experience. Adidas believes that unique and innovative design of its sports products, improved environment of its retail outlets and enhanced customer service retentive helps the company to gain positive brand image (Kotler and Armstrong, 2004). Brand Identity People are wondered that how Adidas administer their operations to establish powerful brand identity. The major reason of this success is the distinctiveness and the simplicity of Adidas which makes it among the most renowned brand logos around the world. Adidas achieved this success by continuously describe its logo with the help of its numerous sponsorships, ad campaigns celebrity endorsements and different sports events. It is very important for any business to establish strong brand identity because it maintain and enhance ROI (Return on Investment). Strong brand identity leads the organization towards better business opportunities and by maintaining and enhancing strong brand identity Adidas is competent to endeavor into sports equipment and sports apparel. Adidas increase its target market with the help of co-branding its brand identity by some other renowned brand names at the time of entering in a business project with Stella McCartney in order to design and produce sports clothes for women named by â€Å"Adidas by Stella McCartney†. Unique elements of brand help the business to attain enhanced brand perception and the stable depiction of strong brand identity helps the Adidas to become among the most desirable brands of the world that has been grown from a shoes business into a main sports brand business around the world ((Kotler and Armstrong, 2004). Unique Selling Point Every business wants to distinguish itself from its competitors available in the target market. USP (Unique Selling Point/Proposition) is the real thing that’s helps your business to distinguish itself from its competitors and is the thing which is considered as unique and different. Adidas through â€Å"Impossible is Nothing† helping its target market to easily achieve their sports goals. Adidas presence in more than 200 countries with its retail outlets provides easy access to sports products. In all 200 countries these retail outlets are located near to its target market. Customers can easily go to store and can buy the product of their choice easily. Target Market and Customer Expectations Adidas preferred target market is males and females of ages between 12 to 24 years old. Although it has customers from all the ages as it’s easy and comfortable footwear’s are liked and used among the people belonging to all ages. Its customers are fashionable. The consumers of Adidas products expect from the brand to be affordable and hold superior quality. People desire to buy a brand which is generally sporty, cool, acceptable and urban. Customers desire for numerous options of interaction and customization. Colors and unique styles are vital elements of Adidas brand image which lots of customers are searching for and the customers wants long term and positive relation with the brand. Marketing Mix Product Adidas introduced a wide range of technologically modern and highest quality sports products especially footwear to its customers. The major reason behind this is to satisfy sports teams and the champion athletes who trust only on Adidas and considers that it helps them to achieve superior performance while playing. The major benefits of sports products are that it satisfies customer’s needs and demands. In order to survive successfully in the competitive market Adidas always try to accommodate customer’s wants and needs at priority basis. As a result, for sports apparels this brand has ascertained itself as most leading provider. The company is struggling hard to maintain its brand image and brand loyalty through constant improvement and up gradation of unique features of its products (Czinkota et. al., 1997). Price Adidas always try to maintain its unique style of introducing and delivering innovative, highest quality and stylish sports products by charging best and economic pricing to its customers. In start, Adidas earns its brand view of being expensive by offering high prices for its sports products but now Adidas is holding affordable and inexpensive price strategies for its sports products. Through its cost effective pricing strategies, Adidas is becoming cheaper and more demanded as compared to its competitors. This helps the company to gain more market share. For some products Adidas utilize the market skimming strategy for example for T-mac shoes Adidas charge high price for white color than other colors of similar product version (Kotler, 2003). Place The beginning of an enjoyable shopping is if the product is available at the right place. In the beginning, Adidas focused its concentration to a single country only but now it has its incidence in more than 200 countries around the world. In these countries Adidas is distributing its sports product in its retail outlets. The environment of these retail stores is inspiring, interactive and simple to shop. This is the uniqueness of Adidas that all of its retail outlets are located at best places and are easily accessibly for its target market. Adidas also provides online shopping facility for its customers. People have the facility to visit Adidas website and place the orders of their choice product from all over the world (Kotler and Armstrong, 2004). Promotion Adidas focus on many promotional strategies in an effort to imprison its desired target market. The basic reason behind the promotional and advertisement strategies is to enhance their business image as well as to become the number one brand of the sports world. Commonly, Adidas advertise its products with the help of mass media. Point of sale and â€Å"Impossible is Nothing† campaign is renowned promotional strategy of Adidas. The business is now increasingly using internet as a major tool of advertisement. Internet, mobile and digital media marketing helps the Adidas to gain a move from traditional promotional strategies to new and successful promotional strategies (Thomson et al., 2006). Ethical Policies and the Corporate Social Responsibility In today’s competitive environment if the business wants to be socially successful and acceptable they need to do some ethical and social acts which must be beneficial for the society. Adidas is among those companies who are the supporters of many charity events and foundations around the world. Adidas foundations are deeply involved in events related to sports. For example â€Å"Turns a new leaf† is an Adidas project and the amount earned though this project was given to those poor people of different countries who are unable to purchase a shoe. This was very triumphant marketing of Adidas brand around the world and it provides the customers with additional benefit as they get new shoes at the same time they donate to poor people. In terms of environment â€Å"Cotton from Sustainable Sources† is one more ethical and moral policy. Thus these kinds of acts by Adidas are not only making it socially acceptable and favorite but also helping the Adidas to get more market share because these policies not only helping the society but also a great tool of marketing for Adidas around the world (businessethics, Business Ethics, [Online]). Conclusion and Recommendations Adidas is a business that is providing its target market with sports related products at competitive and original price. No doubt Adidas is facing strict competition as there are also some sports companies offering innovative sports products. Hence the Adidas has the ability to extend its market share and to become the dominant company of the sports world by creating new support programs with sports teams and professional athletes worldwide. Adidas should avail opportunities for effective advertisement of its product to hold more market share. Adidas can take advantages of mobile and digital media marketing for the promotion and advertisement of its sports product and it will help Adidas to gain increased hold on its target market. In order to compete with its competitors i.e. Nike, Adidas should introduce new line of products like footwear and basket ball apparel. As the Adidas is renowned for its soccer products and has the great chance to raise attentiveness among its customers about the basketball products to occupy the major share of sports market. It would be very useful for Adidas to sign an athlete to increase its market value and to gain market share in the market segment of basketball. As the current marketing trends are going away from traditional marketing strategies so it would beneficial for Adidas to adopt modern strategies of advertisement like mobile and digital media marketing. Internet is also a great option for Adidas to promote its products worldwide. This is not only modern way of advertising but also cost effective. References Czinkota, M., Kotabe, M., & Mercer, D. (1997). Marketing Management: Text and Cases. Massachusetts: Blackwell Business Gobà ©, M. (2001). Emotional branding the new paradigm for connecting brands to people. New York: Allworth Press. Kotler, P. (2003). Marketing management. 11. edn. Upper Saddle River, N. J.: Prentice Hall. Kotler, P., & Armstrong, G. (2004). Principles of Marketing (10th ed.). New Jersey: Prentice Hall. Sheth, J.N., Gardner, D.M. and Garrett, D.E. (1988) Marketing Theory: Evolution and Evaluation. New York: John Wiley. Thompson, C., Rindfleisch, A. & Arsel, Z. (2006). Emotional Branding and the Strategic Value of the Doppelgà ¤nger Brand Image. Journal of Marketing, 70(1), pp. 50-64. http://www.businessethics.ca/definitions/business-ethics.html