14149550 advertising strategy of adidasa comparative study

8/2/2019 14149550 Advertising Strategy of AdidasA Comparative Study

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AdvertisingStrategyofAdidas:AcomparativeStudy

ADVERTISINGSTRATEGYOFADIDASACOMPARATIVESTUDY

PreparedAsacourseRequirementof

(AdvertisingandPublicRelation-mkt424)

M.AtiqurRahmanPatuakhaliscienceandTechnologyUniversityBangladeshatik.bdpalo@yahoo.com

www.pstu.ac.bd

Copyright:group-1bbapstuTermPaper(8thSemester)Page-1


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AdidasInc.isamarketerofsportsapparelandathleticshoes.TheGermanmanufacturer,throughitsmarketingstrategywhichrestsonafavorablebrandimage,hasevolvedintoaEXECUTIVESUMMARY

largemultinationalenterprise.Inkeepingwiththebrandimageisitsassociationwiththedistinctivelogoanditsadvertisingslogan,"ImpossibleisNothing."Inordertomaintainandsustainthisimage,thecompanymakeshugeinvestmentsinadvertisingandbrandpromotion.Atthecriticaltimeofglobaleconomiccrisis,Adidaswillreacttotheconsumerspessimisticattitudeandstressfulemotionduringthisperiod.ItmaybecomeagoodchanceforAdidasbecauseitcantakeadvantageofitspreviousadvertisingwayofImpossibleisNothingcampaignbysponsoringsportsstarstoexpressthecorporatephilosophyofgrit,determination,passionandhumor,givingpeoplemorecourageandpsychologicalcomfortin

faceofeconomiccrisis.Butbesidesthat,wealsofocusmoreaboutfamilyfunctionespeciallyinAsiancountrieswhichemphasizealotonfamily,whichcanprovidecaringemotionalcommunication.Therefore,frombothstrong-willedheroworshipandwater-likeforkenvironment,customerscaneasilylinkAdidasimagewithnotonlystrength,butalsowarmth.ThepreferredmediawechooseareTV,specificmagazines,outdoorandinternet.



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1.1INTRODUCTIONAdidaswasformedbyGermansportsapparelbythefounderAdiDasslerduringthe1920s.WhileDasslerwasinhismotherswashroomhedecidedtobeginanathleticshoe.Afterhemadetheshoehehadhelpfromhisbrotherandtwelveotherpeopletoproducearound50handmadeshoesperday.Theseathleticshoesweremadeforrunningandtraining.

Forover80years,Adidashasbeenpartoftheworldofsportsoneverylevel,deliveringstateof-the-artsportsfootwear,apparelandaccessories.Today,Adidasisagloballeadernotonlyintheshoeindustry,butalsointhesportinggoodsindustry.ShoesfromtheAdidasareavailableinvirtuallyeverycountryoftheworld.OddballisproudtocarryqualitylargesizeAdidas,(www.oddballshoe.com).

RecentlyAdidasandtheNBAjoinedforcesandmadeTheBrotherhood.TheBrotherhoodconsistsofTracyMcGRadyofTheHoustonRockets,DwyaneWadeofTheMiamiHeat,TimDuncanofTheSanAntonioSpurs,ChaunceyBillupsoftheDetroitPistonsandGilbertArenasoftheWashingtonWizards.WhenitcamedowntoitAdidasandtheNBAcameupwiththeslogancalledBasketballisaBrotherhood.

ThemainfocusofTheBrotherhoodwasAdidastosponsortheNBA.Thewaythesesixplayerswereselectedwasbytheirathleticabilitywhichiswhytheyarealsoknownasallstars.Thenthesesixplayersdecidedtoformaseriesthatwouldhelpkidstod

iscovertheirdreambyplayingwithNBAStars.AstrongadvertisingandpublicRelationeventsmakesadidasasaworldwiderecognizedbrandanditwouldbemoresustainableintheworldmarket.



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1.2HISTORYOFADIDASThecompanyAdidaswasfoundedintheearly1920sasGebruderDasslerSchuhfabrik,inHerzogenaurachinGermany.AdolfDasslerdesignedapairofsportshoesin1925andfewyearslaterheandhisbrotherRudolphweresellingspecialshoesfortennisplayersandbegandesignspecificshoesfordifferentsports.Thefamilycompanysplitin1948.Afterthesplit,Adolf(Adi)DasslerfoundedAdidasandhisbrotherRudolphfoundedPuma.Thethree-stripelogowasdesignedin1941byAdiDasslerandheregistereditasatrademarkforAdidasafterthesplit.ThestrengthofAdidaswasitsproductinnovation.AdiDasslerregisteredmorethansevenhundredpatents.AdidasbegansellingitsshoesintheUnitedStatesafter1968andinfewyearsthecompanydominatedtheAmericanmarket.Themostimportantmarketingbreakthroughwastheactivepromotionofglobalsportingevents,especiallytheOlympics.Theconnectionof

AdidastotheOlympicshasarichheritage.Atthe1972OlympicgameinMunich,everyofficialworeAdidas.

Activities:manufactureanddistributionoftextiles,shoesandappliancesforsportandrelatedproducts.Adidashas107subsidiariesin20countries,andexportsto160countries.ExploitationoftheregisteredtrademarkAdidasismadewhereeveritisanopportunity.ActivitiesofthecompanyanditssubsidiariesaredirectedfromAdidas-SalomonAG'sheadquartersinHerzogenaurach,Germany.

Products:Adidas-Footwear,apparel,andhardwaresuchasbagsandballs.SalomonWintersportsincl.skis,snowboards,snowblades,skibootsandbindings,inlineskates,hiking,apparel.Mavic-Cyclecomponents,BonfireSnowboardapparel.Arc'Teryx-Outdoorapparel,climbingequipment,Clich-Skateboardequipment,footwearandapparel,TaylorMade-AdidasGolf-Golfequipment,golfapparel,golfshoesandfinally,Maxfli-Golfballs,ironsandaccessories.

In1990,AdidaswasholdingontojustatwotothreepercentshareoftheU.S.market.Between1988and1992Adidastotalsalesdroppedfromnearly$2billionto$1.7billion.Inthesameperiod,Nikessaleswentfrom$1.2billiontomorethan$3.4billion.FrombeingtheU.S.marketleaderinthelate1970s,Adidassmarketsharedroppedto3percentin1992.TheEuropeanmarketsharesdroppedwhile


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Nikessharesgrew.Adidasalsohavehadproblemswiththeupstreamvalueactivitiesintheirvaluechain.Traditionally,thecompanyhavetheirownfactoriesandwhollyownedsubsidiaries.Whathappenedinthe'70sandforward,duringtheAdidasrecession,wasthatAdidaswasunabletoshipproductswhenitwasneeded,andtheyhadalongsupplychain-ittook18monthstogetanewshoeintothemarket.



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2.2CompetitorAnalysisAdidashastwolagercompetitorsNikeandRebook.Besidesthatitwouldhaveseveralsmallcompetitors.ASWOTanalysiswouldbehelpfultounderstandthecompetitiveenvironment.

SOWTAnalysis:

ASWOTanalysiscompriseofstrength,Weakness,OpportunityandThreats.Thisfourtrendsareanalyzebelow.

Figure:Adidasexpencetoadvertising(billionEuro),(Source-www.wekipedia.org)

STRENGTHS

LargestInternationalportfolioofsportambassadors.

SponsorsfootballteamswithmaximumfanfollowinginIndiaandUSA.HighestbrandimageinIndiaaccordingtooursurvey.WEAKNESSES

Rigidpricingstructure.OursurveyshowsNikebehindReebok&AdidasinmarketshareinIndia.HasnotdowellinIndiansubcontinentmarket.OPPORTUNITIES

Hasagreatopportunitytoexpandinternationalmarket.Increasingdemandonthesportswear.Positiveandincreasingmarkettrendscanincreasethroughtheeffectiveadvertising.THREATS

AdidaslargercompetitorNikehasagratermarketshareandhavingabigbudgetin

marketingactivity.ThenewlybornseveralbrandslikeCAT,GAPhasincreasetheiradvertisingbudgetinrecentyears.Copyright:group-1bbapstuTermPaper(8thSemester)Page-6


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Amountofcompetitorsincreasingdaybyday.2.3ComparativeAnalysisTroughTheEquityModelReviewoftheequitymodel

Letsmakeashortreviewtoremindthereaderwhattheseparateblocksorkeywordsmeanintheequitymodel.Seefigurebelow.

Brand

BrandPerceivedBrandBrandAwarenessQualityAssociationsLoyalty

Brandequitycanbedefinedasthebrandassetslinkedtoabrandsnameandsymbolthataddtoaproductorservice.Thisassetcanbecreatedandanalysedtroughthefourdimensions,brandawareness,perceivedquality,brandassociations,andbrandlo

yalty.

Brandawarenessisthebasetoaffecttheconsumerperceptionandeventaste.Peoplelikethefamiliarandarepreparedtoascribeallsortsofgoodattitudestotheitemsthatarefamiliartothem.AccordingtoD.Aakerperceivedqualityisaspecialtypeofassociation,partlybecauseitinfluencesbrandassociationsinmanycontextsandpartlybecauseithasbeenempiricallyshowntoaffectprofitabilityasmeasuredbyROI(ReturnOnInvestment)andstockreturn.Perceivequality,isbasicallyhowthecustomerperceivethebrand

squalitystatus.Brandassociationscanbeanythingthatconnectsthecustomertothebrand.Itcanincludeuserimaginary,productattribute,usesituations,organizationalassociations,brandassociations,andsymbols.Brandloyaltyisatthehartofanybrandsvalue.Theconceptistostrengthenthesizeandintensityofeachloyaltysegment.

Comparativeanalysis

Nikecentredtheirbrandequitymodelontheplatforms,theendorsementfocusstrategy,

creatingadominantmediapresence,developmentofFlagshipstores,NikeTownandsub-branding.TheAdidasstrategieswerebasedon,endorsementfocusstrategy,advertising,sponsorshipprogramsfocusingonmajorglobalevents,sportsassociations,andteams,andsub-brands.

Tocreatebrandawarenessbothcompanieshavebeenusingendorsementstrategiesintheir


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brand-buildingprograms.WhatdiffersisthatAdidasfocusesonsponsorshipofteamsandeventse.g.nationalteamsandbigsporteventsliketheOlympicGamesanddifferentWorldChampionshipevents.Thiswillhelpthemtocreateawarenesswithhelpfromdifferenttypesofmedia.IncontrastNikehastheirfocusonindividualslikeM.JordanandT.Woodsandtheirsuccessstories.

Aboutthesecondstrategy,advertising.Nikesadvertisingstrategywastocreatedominantpresenceinmedia.NikecreatedmediapresenceinseveraltrendsettingUnitedStatescities.TVadslinkingNiketoacitywereused,butrealdriverswerehugeoversizedbillboardsandmuralsonbuildingsthatblanketedcitieswithmessagesfeaturingkeyNike-sponsoredathletes,notproducts.AdidastookupthecompetitionwithNikethroughraisingtheiradvertisingbudgettoalevelthatmadeitpossibletocompetewithNikeonthesame



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conditionsandthesamestrengthasNikedidtocapturetheconsumerinterest.Adidasdidnotjustspendmoremoney;theymadeanimpactwithbrilliantexecutions.TheymadeTVandotheradvertisingcampaigns.Thecompanycommunicatetheirheritageofinnovation,technologyandbigsuccessstorieswithpersonalitieslikeEmilZatopek,MohammadAli.AdidastriedtospreadmeaningslikeWeknowthen-weknownowandThereisnothingbetweenyouandsuccess,soexceedyourownexpectationsandlimitationsandEarnit.ThesuccesswasobviousandafterhardworkandstrivingtowardatoppositionintheindustryAdidaswasbackinbusiness.

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Nikesthirdstrategywasto

develop,flagshipstores,Nike25Townshopsinbiggercitys,first20national,andthenabroad.Nikewasthefirstcompanytoestablish15flagshipstoresanditturnedouttobeasensation.Adidaschoicewas10toexperimentwithsportevents,withwhichtheymadegreat5success.ExamplesofthatistheAdidasStreetballChallengealocal0three-personteambasketballtournament,thiseventstartedoutasatrailinBerlininthebeginningChart-03:AdidasmarketSharecomparison

ofthe1990sasonetimeoccasion.(Source-www.adidas.com)Inthemid1990sithadbecomeahugesporteventwithabout500.000participantsalloverthebiggercitiesinEurope.InthefinalsinGermanyitattracted3200playersand40.000spectators.Adidasmadeherebyabrand-buildingsuccess.

TheNikecustomerassociatedtheNikebrandwithwordslikesports,attitudesandlifestyle.ReasonsforthatisonecanrelatetooridentifyoneselftoNikesmarketingcampaignslikeJustdoitandthecompaniesfrontathleteslikeMichaelJordanandTigerWoods.For

Adidasoneimagestudyofconsumersfoundthebrandverytrendy,modernandcool.Thesurveywasmadeinlate1990s.

Allmarketingactionsthatbothcompaniesareimplementingwillhopefullyresultinloyalcustomers.Adidasintroducedasubbrandin1990toservethehigh-endproductsforallcategoriesofshoesandapparel.TheEquipmentsubbrandwouldrepresentthebest,whatevertheproductwas.Thelow-endproducts,forthenormalconsumerstillhave


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ahightechnologyandlevelofinnovationbecauseoftheirinheritanceoftheolderinnovationsandtechnologyfromtheEquipmentline.ThisstrategymadetheAdidasbrandtakeonadifferentmeaning;itstillmeantparticipation,emotionandperformance.ThiswasasuccessstrategyforAdidassosuccessfulthatNikecopiedtheirideaandintroducedtheirownline,theAlphaline,basedonthesameidea.

Nikeadvancedfrom$1billiondollarsin1986to$9.9billionin2002,Adidasadvancedfrom$1.7billionin1992to$4.8billionin1998.Accordingtosalesfiguresforthebothcompanies,itseemsthatbothNikeandAdidascompanieshavesucceededtocreateabrandloyalcustomerwhoperceivestheNikeandAdidasproductsastopquality.

22.9425.2928.247.652.3513.53NikeadidasReebokPowerPumaOthers



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3.ADVERTISINGMETHOD&MEDIASELECTIONThemediathatwasusedofTheBrotherHoodwillbetelevision,magazinesandInternet.

3.1CoreAdvertisingConsiderationThecoreadvertisingfactorsofAdidasareasfollows.BesidesthatahugeamountofdataaboutAdidasadvertisingrelatedactivities.AsamultinationalcompanyAdidashaveseparateadvertisingstrategyindifferentareaoftheworld.

3.1.1MediaVehicles:ThemediavehiclesthatwereusedfortelevisionwillbeABCbasketballgames,TNTbasketballgames,ESPNbasketballgamesandESPN2basketballgamesandESPNsSportsCenter.ThemediavehiclesthatweregoingtobeusedformagazineswereSportsIllustratedandESPNMagazine.ThemediavehiclesthatareuseforInternetwereESPNwebsite(www.espn.go.com),NBAwebsite(www.nba.com),Adidaswebsite(www.shopadidas.com),SportsIllustratedwebsite

(sportsillustrated.cnn.com).

3.1.2Advertisingunit:WhenitcametotheadvertisingunitfortelevisionAdidasonlyruns:30secondsadssincemostoftheseadsareplayedduringNBAgames.Theadsinmagazinesarefullpage.WhenitcametotheInternetadsareatopbanner.Forexample,onpagefiveyouwillseetheadwhichitatopbanner.

3.1.3Seasonality:SinceTheBrotherhoodismadeupofTheNBAtheseasonalitywillbeduringthefou

rthquarter.ThereasonforthisisthatthebasketballseasonbeginsinOctoberwhichisinthefourthquarter.ThetimeofdayinwhichTheBrotherhoodwouldberunontelevisionisduringtheeveningwhiletheNBAisholdingtheirregulargames.WhenitcomestotheInternetTheBrotherhoodisadvertisedailyandatalltimes.

3.1.4TargetAudience:Whenitcametoanyproducttheaudienceisveryimportant.Youneedtoknowwhoaregoingtobeinterestedintheproduct.WhenitcamedowntothisTheBrotherhoodi

smostlyforboysages8-20andforoldermales.Forexample,onpagefouryouwillseeTMACjerseyforboys8-20andoldermales.

3.1.5AdvertisingMediaConsiderationThereasonthatthismediawasselectedwasbecausetelevision,magazinesandInternetwerethebestwayinwhichAdidaswereabletoshowtherecustomerstheirproducts.Asyousee


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belowthepictureonthethirdpagethatsaysAdidasNBAShop,inorderforAdidastopromotetheTheBrotherhoodtheyhadtocomeupwithasloganinwhichtheycalleditNBAisaBrotherhood.BesidesAdidashaveseveraltechniqueinmediaselectionwhichhavediscussedinthefollowingsections.



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them"classics,"becausethefilmissetfarinthefuture.I,RobotandSpaceballsalsoshowcasefuturisticcarswiththeAudiandMercedes-Benzlogosclearlydisplayedonthefrontofthevehicles.Adidasalsousethisadvertisingtechnique.



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3.3AdvertisingapproachesThepositiveimpactonthemarketoftheadidasOriginalscommunicationapproachmakesadidasOriginalscontinuetheirsuccessfulnewcreativemarketingtonality.TheFall/Winter2005campaignis,astheonefromSpring/Summer2005,photographedbyKarlLagerfeldandunderlinesadidasOriginalslifestylerelevance.ToCelebrateOriginality,andinaplayfulopposingmannertolastseason,adidashasswitchedfromtheblackandwhiteSS05executions,highlightedonlybytheiconicblueTrefoil,tobrightandenergeticcoloursinFW05ads;anengagingcreativeideasupervisedbyadidasGlobalCreativeDirectorMichaelMichalskyandVisionairesStephenGan.TheshootingtookplaceatKarlLagerfeldsstudioinParis.TheframeoftheadsshowshumourandtranslatesthefreshnessoftheHighEnergyHighStyleconcept.Theresultisanewadvertisingcampaignthatclearlycommunicates

adidasOriginalsstreetrelevancy.AdidasOriginalscontemporarystreetwearcollectionsareinspiredbythebrandshistoricalanecdotes.

TheFall/Winter2005adswillbreakgloballyinJuly2005issuesofkeylifestyleandfashionpublicationssuchasKult,PulpandBlackbookaswellasmagazinessuchasArenaHomePlusandTeenVogue.

AlladidasOriginalsmarketingcommunicationeffortswillevolvearoundthreepillarsin

2005:toenergize,globalizeandcontemporizeadidasOriginals.



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CONCLUSION

BothAdidasandNikehaveusedthesametheoreticalsystemstocreatetheirbrandbuildingprograms.Thecompaniesarebenchmarkingeachother,usingthetechniquesfromeachotherssuccesses,whenNikelaunchedtheirsubbrandproductAlphalinewhichwasbenchmarkedonAdidasalreadylaunchedsubbrandoftheEquipmentproductlinefortheeliteofsportsmen.Wecanfindmanysimilaritieslikeendorsementsstrategiesandthecompaniesadvertisingstrategies.WhatdiffersintheendorsementstrategiesisthatAdidasfocusesinsponsoringteamsandglobalevents,whileNikehavetheircenterofattentiononstarsinspecificsportlikebasketballandMichaelJordanoringolfandTigerWoods.

Aboutadvertisingdobothcompanieshaveaboutthesamescaleandscoopofadver

tisingbuttheytrytocommunicatedifferentmessages.ThesemessagesfromAdidasis;theonlyoneyoucompetewithisyourselfwhereasNikecommunicateaprovocative,aggressivewinnerattitudewhichcanberelatedtheAmericansportsattitudeYoudontwinsilver,youlosegold.Aswecanunderstandthetwocompaniesareaimingatnearlythesametargetedcustomergroupbutwithaslightlydifferentiationofattitude.Adidasstandforacompetingandwinningoveryourself-attitude,andNikestandsforawinningovereveryoneattitude.

WeinthegroupthinkthisdifferentiationisbasedonthedifferencesinculturebetweenthetwocompaniesandbetweenEuropeandUSA.

AsanoverallreflectiononecanseethatAdidashadtoovercome,thatthebothcompanieshadthesametargetgroup.Adidaschooseabrand-buildingstrategythatbuiltonthesametheoreticalcriteriasasNike.Buttheycreatedadifferentiationinidentityofthebrand(seecomparinganalysisintheKapfererPrismModelabove)comparedtoNike.

Adidashadthesamestrategywithincreatingequityvaluetotheirbrand.Theyc

hallengedNikeinendorsementstrategy,andinadvertising,butwithaslightdifferenceincommunicatedmessage,bydoingittroughthesamemedias.Todifferentiatethemselfandmaketotallyownawarenessactivities,eventslikeAdidasStreetballChallengewascreated.EventslikethosecommunicatedtheAdidasbrandaroundtheworld.

Accordingtotheresultsandpositionsthebrand-buildingprogramshavegivenbo


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REFERENCES

http://www.press.adidas.com/en/Retrieved7thJune2008http://www.jdsports.co.uk/whatsnew.aspx?id=5375Retrieved7thJune2008http://www.press.adidas.com/en/DesktopDefault.aspx/tabid-4/79_read-8621/Retrieved7thJune2008http://www.fashiontrendsetter.com/content/fashion_events/2008/Adidas-Denim-by-Dieselin-store-event-p1.htmlRetrieved7thJune2008http://www.jdsports.co.uk/whatsnew.aspx?id=5508Retrieved7thJune2008http://www.champion.ie/"AdidasOrginals-ExtendedHousePartyFilm".http://www.adidas.com.Adidas.200902-25.`http://www.adidas.com/campaigns/originalsss2009/content/#/lifestyle/full-length-film.Retrievedon2009-03-20.



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14149550 advertising strategy of adidasa comparative study

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