This report discusses background of Adidas shoes. It also presents SWOT analysis of Adidas. It also demonstrates the target market as well as target customer of the Adidas shoes. This report also shows the marketing mix to the Adidas shoes. This paper represents the innovative recommendation in the context of Adidas.
Adidas is German Multinational Company that was established in 1949. Headquarter of Adidas is located in Herzogenaurach, Bavaria. It provides many product and service to consumers such as shoes, accessories, and clothes. In Europe, it is the largest sportswear organization. Adidas is the second largest organization of sportswear at the global level. Adidas obtained €19.29 billion as revenue in 2016. Adolf Dassler and Gebrüder Dassler Schuhfabrik were the founders of Adidas. Further, designing of shoes included the three parallel bars. In the current period, Adidas use the same theme into their current official sign.
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Strengths · It exists in more than 200 countries. · It concentrates on the development of performance as well as technology. · Sponsorship to numerous events and sports such as Streetball, Olympic, Tennis, and Soccer. · Largest market share · The Strong Brand image in the marketplace. |
Weakness · Imperfect Budget allocation in the advertisement. · Poor advertisement agency. · Not satisfactory Customer services. · Few influential sportsmen in a brand ambassador. |
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Opportunities · It has great opportunity to spend in the global market such as retail outlet and e-commerce. · Favourable and enhancing market trends can enhance by using effective technology. · Enhancement in the endorsement activities. · The tie-up with local market to improve the sale-volume. |
Threats · The Higher competition level in the marketplace. · The threat of new entrants. · Global economic crisis. · The Higher price of products. |
Segmentation can be effective to categorize the market as well as a potential consumer for offering product and services of the company. Adidas segment incorporated different types of factors such as behavioural, demographic and psychographic to their shoes. It has four brands in their robust portfolio like Reebok, Rockport & Taylor, and Adidas. It implements differentiated targeting strategy for targeting young adults along with children who give preference to the fitness and sports. It targets the consumers who lie between the age group of 13-40 years but at the same time, it is addressed that the majority lies between 15-30 years. These consumers are belonging from the upper middle class or higher class of consumers (Armstrong, et al., 2015).
Marketing mix can be important for an organization due to promoting their product and services. It considers four factors such as product, price, place, and promotion. These are discussed as below:
There are three level of product that is included in the product level such as Core product, actual product, and augmented product.
The core product is based on the non-tangible product. The customer cannot able to touch it because the core product is the advantage of product which makes valuable to the product. The style and comfort of the shoe cannot be touch thus it can come into the core product.
(Source: Armstrong, et al., 2015).
The actual product is a tangible product that can be touched by the consumers. For example, the customer can buy collect and use the shoes of Adidas. It includes many components such as quality, colour, fashion, branding, and style of product and services.
The augmented product is non-physical part of the particular product. It generally consists of many added values for which a customer may not pay. Additionally, it considers many factors such as warranties, customer care, delivery, services, installation, and finance. An Adidas can obtain higher profit from the application of such layers in the business operation.
Adidas focuses on a narrow class to offer the shoes in the marketplace because it helps to achieve the cost advantages.
Product lifecycle supports to identify the actual condition of the product in the marketplace. It also helps to improve the condition of product and services by providing an effective suggestion. On behalf of the product lifecycle, Adidas shoes lie in the Growth stage. The growth stage of the product indicates that the sales volume of product is starting to grow. The product is also starting to gain their profit systematically. Adidas can use Image result for persuasive advertisingwww.buzzfeed.com persuasive advertising strategy to promote its products and services. The major aim of this strategy is to encourage the consumers for buying a specific product, especially in the existence of many substitutes in the market.
(Source: Armstrong, et al., 2015).
Adidas is used “Impossible is Nothing” as a brand tag. It is the important tagline for the company because it demonstrates the significance of fitness as well as the importance of struggling hard to meet anything that a consumer desire. It can be the biggest marketing strategy of Adidas.
Adidas use premium price strategy as compared to their competitors. The premium price strategy provides more benefit to the organization because premium price demonstrates the better quality than the competitors. This strategy of the company can support to gain the profitability as well as sales of the organization. The main reason to use the premium price strategy is to offer the higher-end ‘lifestyle’ as compared to their competitors. It also makes different than competitors.
The following pricing objectives can be effective to gain the profitability of the company in less time and cost. It mainly considers three factors such as customization, footwear growth, and brand awareness.
The price elasticity indicates that how demand of product affect the price of product and service in the marketplace. Price elasticity of demand is determined as the proportion of percentage change in the demanded quantity of product to a percentage alteration in the prices. On behalf of the price elasticity, in case the demand for the product is increasing then they can increase the price of products. But, at the same time, in case, the demand of the product is low then the company should decline the prices of products due to enhancing the sale of product and services. In addition, there are two factors that may affect the prices of a product such as income and price of commodities. These factors can also influence the demand for product and services.
In the current business scenario, a large number of consumers have used the internet to interact with each other therefore organization is implied internet advertisement to promote the Adidas shoes. Through this, the organization provides a significant promotional message to their potential consumers about Adidas shoes e.g. “control everything”. An organization is used social media marketing strategy to attract more consumers by spreading the awareness about product and services.
(Source: Kotler, et al., 2016).
(Source: Kotler, et al., 2016).
The above chart shows the viewers of company product that demonstrates that the social media can be effective to gain profit as well as sale systematically.
Effectiveness of print advertisements in terms of applying the hierarchy of effects model
The hierarchy of effects model can be supportive for the print advertisement to increase the awareness and demand of product and services. This model mainly considered three factors such as cognitive, affective, and conative. Additionally, it can also be said that the message should be considered such factors to easily attract the consumer. The cognitive factor is used to make are the consumer about the product and services and they create their best knowledge about goods and services. From this, Adidas can increase the knowledge of consumer about the Adidas shoes in the marketplace. The effective factor can use to create feeling between consumers to like and dislike Adidas shoes. In the last step, consumers take a decision about purchasing of product and services of the company.
(Source: Kotler, et al., 2016).
IMC mix used to communicate the product to the target market
The integrated marketing mix can be supportive to communicate about the product and services in the targeted market. There are different types of factors that are included in the IMC such as advertising, personal selling, public relation, sales promotion, and direct marketing. These factors are supportive to promote Adidas shoes in the targeted market in less time and cost. At the same time, it is addressed that internet presence can be an additional promotional element for Adidas to promote their shoe at the specified time and cos.
(Source: Kotler, et al., 2016).
Advertising can be an effective factor to influence a large number of consumers in less time and cost. Personal selling can support the company to make a favourable relationship with consumers. At the same time, it can be said that each element of promotion can support to spread the awareness regarding product and services.
(Source: Kotler, et al., 2016).
(Source: Kotler, et al., 2016).
There are two kinds of distribution channels that will be used by the organization to provide their product and services for their potential consumers such as business to business and business to customers. There are two kinds of channels are used by the company to provide product and services such as direct and indirect distribution.
Direct Distribution
The organization can use the direct distribution wherein an organization is not using the intermediate to offer the product and services of the firm. Adidas does not use the direct distribution channel to provide their services.
Indirect Distribution
Indirect distribution can also be effective to provide the product and services by using intermediate for potential consumers. Adidas is used wholesaler or distributor, dealer, retailers, agents, and internet sources to sell their product and services.
Distribution strategy
The distribution strategy can be effective to improve the distribution that will help to accomplish the specified goal. For this product, the company is used the intermediaries to deal with a large number of consumers in less time. It is the imperative strategy of the Adidas. It is used the exclusive distribution to provide their product in the target market through retailer, distributor, and wholesaler.
Types of retail outlets
There are many kinds of retail outlets that are used by a company such as Department Stores, Discount Stores, Supermarket, Warehouse Stores, Mom and Pop Store, Speciality Stores, Dollar Stores, E-Tailers, and Malls. Adidas is used the departmental store to sell their shoe in the marketplace. It is effective to influence large numbers of people as compared to other sources of retail outlets (Kotler, et al., 2016).
Innovative recommendation
The innovative and creativity can be effective to improve the financial condition as well as the corporate social responsibility of firm. The company should encourage the employees to create an environment wherein employee can share their innovative ideas about the improvement of CSR. They also force the employees to seek society as an important part of performance culture due to solving the CSR issues and make an appropriate relationship with society member.
(Source: Kotler, et al., 2016).
Another strategy is enhancing the participation in the local community by having the raw material to the local market. It will be effective to improve the relationship with local people that can directly influence the financial condition as well as an image of the company in the marketplace.
Conclusion
From the above analysis, it can be concluded that the marketing mix can be significant to make aware the consumer regarding product and services in the market. The marketing mix can involve four types of factors such as product, price, place, and promotion. In addition, it can also be summarized that innovation and creativity can be an effective strategy for improving the corporate social responsibility as well as improving the marketing of Adidas Shoe.
References
Armstrong, G., Kotler, P., Harker, M., & Brennan, R. (2015). Marketing: an introduction. USA: Pearson Education.
Kotler, P., Keller, K. L., Brady, M., Goodman, M., & Hansen, T. (2016). Marketing management. USA: Pearson Education Ltd.
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